Bono's one-time Sydney holiday home sells for record $55.4 million



SYDNEY (Reuters) - A Sydney harborfront mansion has been sold for a record-setting A$54 million ($55.4 million) to a Chinese-born businessman, reinforcing the city's growing status as a hot property destination, newspapers said on Thursday.

On the market for six years, the luxurious eight-bedroom "Altona" in exclusive Point Piper was bought in a secret deal with the businessman who currently lives in Melbourne, the newspapers reported.

The property and its heated waterside pool and boathouse, rented by U2 rock star Bono in 2006 for a family holiday, was last sold in 2002 for A$28 million.

While Australian capital city home prices rose by only 1.3 percent in March, top end Sydney properties have attracted strong interest from Chinese buyers, and almost three in four international sales have gone to Asian buyers in recent years.

The Altona sale beat the previous Sydney property sale record of A$45 million, but fell short of the national record of A$57.5 million paid in 2009 by mining services magnate Chris Ellison for a sprawling riverfront home in Perth.

(Reporting by Rob Taylor; Editing by Nick Macfie)

Detective to detail investigation into Jackson doc



LOS ANGELES (AP) A jury will hear more Wednesday about the troubled finances of Michael Jackson's doctor from a police detective who investigated the physician and saw his mounting debts as a possible motive for improper treatments on the pop superstar.

Los Angeles Police Detective Orlando Martinez on Tuesday told jurors hearing a civil case against Jackson's concert promoter that Conrad Murray was more than $500,000 in debt and his finances were "severely distressed."

The doctor's Las Vegas home was in foreclosure proceedings, he owed back child support and had liens and judgments spread across several states.

Martinez said that led him to believe Murray's actions were motivated by the $150,000 a month he expected to be paid by AEG.

"He may break the rules, bend the rules, do whatever he needed to do to get paid," Martinez said. "It might solve his money problems."

Murray's finances were not a factor in the criminal case that ended with his 2011 conviction for administering a fatal dose of propofol to Jackson.

The former cardiologist is not a party to the case, but he is a key figure in Katherine Jackson's negligent hiring case against concert giant AEG Live. The Jackson family matriarch contends AEG did not properly investigate Murray before allowing him to serve as Jackson's tour physician for the ill-fated "This Is It" shows planned for 2009.

Martinez testified he found most of the debts against Murray in public records.

AEG denies it hired Murray, and its attorney has noted that Jackson and his children had been treated by the doctor before the shows were planned.

The detective's testimony will be brief on Wednesday. Court will recess early to allow an alternate juror to attend a family funeral.

Martinez is the second witness called in the case, which in its early stages will focus on Jackson's death. Potential witnesses later in the trial include stars such as Diana Ross, Quincy Jones and Spike Lee. Jackson's mother, several siblings and his two oldest children, Prince and Paris, are also listed as potential witnesses.

Millions and possibly billions of dollars are at stake in the trial, which may last 90 court days.

AEG attorneys said they intend to call Murray as a witness. He remains in a Los Angeles jail and is appealing his conviction.

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Anthony McCartney can be reached at http://twitter.com/mccartneyAP

'House of Cards,' Frank Ocean top Webby Awards



NEW YORK (AP) Netflix's groundbreaking "House of Cards" may be the first digital series nominated for a best drama Emmy. But it will start with a Webby.

The Webby Awards are honoring "House of Cards" producers Kevin Spacey and Dana Brunetti with a Webby special achievement award. The political thriller, for which Netflix released all 13 episodes at once, proved that digital media can produce cable-quality drama. Netflix also won for best streaming media site.

The 17th annual Webbys, which celebrate Internet achievement, are to be officially announced Tuesday. Winners range from Justin Bieber (for the social media campaign for his fragrance launch) to The Onion (now with a record 19 total Webbys) to Nate Silver's FiveThirtyEight blog for The New York Times.

The Webby person of the year is Frank Ocean, the R&B singer, whom the Webbys hailed "for proving the power of the Web as a medium for cultural change when he announced his bisexuality to his Tumblr community."

Singled out for outstanding comedic performance is Jerry Seinfeld, whose 10-episode Web series "Comedian in Cars Getting Coffee" showcased the "Seinfeld" star hanging out with comedian friends.

Webby categories are split into a regular award, chosen by the International Academy of Digital Arts and Sciences, and a "people's voice" award. The Australian rail safety public service campaign Dumb Ways to Die, which went viral, is an unlikely awards leader with seven Webbys.

GIF file inventor Steve Wilhite also will be honored with a lifetime achievement award. While working at CompuServe in the 1980s, Wilhite created the compressed 8-bit GIF (or Graphics Interchange Format) that remains a popular tool for lo-fi viral sharing.

Another special achievement award will go to President Barack Obama's election campaign for its use of technology in last year's presidential election. Claire Boucher, the Canadian synth-pop singer who performs under the name Grimes, is the Webby's artist of the year.

Other winners include HBO Go (four awards, including best media streaming service), Lady Gaga (for best celebrity-fan social presence), Conan O'Brien (for best celebrity-fan website) and The New York Times (best news social presence). A complete list of the awards will be posted later Tuesday at: http://Winners.WebbyAwards.com.

The awards will be handed out in a ceremony hosted by Patton Oswalt on May 21 in New York, and available to stream the following day. Acceptance speeches are famously limited to five words.

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Online:

http://www.webbyawards.com/

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Follow AP Entertainment Writer Jake Coyle on Twitter at: http://twitter.com/jake_coyle

Google invades Siri's turf with iPhone, iPad app



SAN FRANCISCO (AP) Siri may be feeling a little job insecurity. The sometimes droll assistant that answers questions and helps people manage their lives on Apple's iPhone and iPad is facing competition from an up-and-coming rival made by Google.

The duel began Monday with the release of a free iPhone and iPad app that features Google Now, a technology that performs many of the same functions as Siri.

It's the first time that Google Now has been available on smartphones and tablet computers that aren't running on the latest version of Google's Android software. The technology, which debuted nine months ago, is being included in an upgrade to Google's search application for iOS, the Apple Inc. software that powers the iPhone, iPad and iPod Touch. It's up to each user to decide whether to activate Google Now within the redesigned Google Search app, which is available through Apple's app store.

Siri tried to dismiss the competitive threat. When asked for an opinion about Google Now, Siri responded: "If it's all the same to you, I'd rather Google later."

Mike Allton, a St. Charles, Mo., resident who has owned an iPhone for four years, could hardly wait to check out Google Now, even if Siri might interpret it as a betrayal.

Siri "is looking a little green with envy," Allton, 36, said with a laugh after he installed Google's new app. "I love Apple products, but I like to see the competition because it probably will lead to even more improvements. I believe this technology is going to be even more deeply ingrained in our lives a few years from now."

Other iPhone users even those who have grown fond of Siri welcomed Google Now's arrival to iOS in mostly enthusiastic and sometimes amusing remarks posted on Twitter and Google Plus. One person joked that Google Now is so helpful that the technology prompted him to wash his hands after using the bathroom. The biggest gripe was about the possibility of Google Now's location-tracking features draining a device's battery more quickly.

Google Now's invasion of Siri's turf marks Google Inc.'s latest attempt to lure iPhone and iPad users away from a service that Apple built into its own devices.

Google quickly won over millions of iPhone users in December when it released a mapping application to replace the navigation system that Apple dumped when it redesigned iOS last fall. Apple's maps application proved to be inferior to Google's ousted service. The app's bugs and glitches made Apple the butt of jokes and fueled demand for Google to develop a new option.

Apple has been losing to Google on other fronts in a rapidly growing mobile computing market, an arena that was revolutionized with the iPhone's release in 2007. Smartphones and tablet computers running Google's free Android software have been steadily expanding their market share in recent years, partly because they tend to be less expensive than the iPhone and iPad. In 2012, Android devices held about 69 percent of the smartphone market while iOS had about 19 percent, according to the research firm IDC.

Android's success has been particularly galling for Apple because its late CEO, Steve Jobs, believed Google stole many of its ideas for the software from the iPhone. That led to a series of court battles over allegations of patent infringement, including a high-profile trial last year that culminated in Apple winning hundreds of millions in damages from Samsung Electronics, the top seller of Android phones. That dispute is still embroiled in appeals.

The rise of Android also is squeezing Apple's profit margins and has contributed to a nearly 40 percent drop in the company's stock price since it peaked at $705.07 last September around the time that the iPhone 5 came out.

Android's popularity is good news for Google because the company's services are built into most versions of the operating system. That brings more traffic to Google services, creating more opportunities for the company to sell ads the main source of Google's revenue.

Siri is billed by Apple as an "intelligent feature." Since the technology's release in October 2011, Apple has made it a centerpiece of some marketing campaigns that depict Siri and its automated female voice as an endearing and occasionally even pithy companion.

Google believes its Siri counterpart is smarter because Google Now is designed to learn about a user's preferences and then provide helpful information before it's even asked to do so. The technology draws upon information that Google gleans from search requests other interactions with the company's other services. Knowing a person's location also helps Google Now serve up helpful information without being asked.

"This concept of predicting your needs and showing you them at the right time is unique to Google Now," said Baris Gultekin, Google Now's director of product management. "We want computers to do the hard work so our users can focus on what matters to them so they can get on with their lives."

If the technology is working right, Google Now is supposed to do things like automatically tell people what the local weather is like when they wake up to help decide what to wear and provide a report on traffic conditions for the commute to work. During the day, Google Now might provide an update on the score of a user's favorite sports team or a stock quote of a company in a user's investment portfolio. On a Friday evening, Google Now might offer suggestions for movies to see or other weekend events tailored to a user's interests. For international travelers, Google Now might provide currency conversion rates, language translations of common phrases and the time back home.

Most of this automatic information is provided in summaries that Google calls "cards." Like Siri, Google Now also is equipped with voice technology that allows it to respond to questions and interact with users, though it hasn't shown the wit that delights some of Siri's users.

The Google Now app for iOS isn't as comprehensive as the Android app, which only works on devices running on the latest version of Android known as "Jelly Bean." Some of the Android features missing from Google Now's iOS app include cards for showing airline boarding passes and movie tickets bought though online vendor Fandango. Both of those options are available on the iOS through Apple's built-in Passbook feature that's designed to be a digital wallet.

Google Now's expansion on to the iOS underscores Google's ambitions for the service. The company, which is based in Mountain View, Calif., views it as a pivotal tool in its effort to peer deeper into its users' brains. In doing so, Google believes it will be able to provide more useful services and also show more relevant ads. For Google Now to become more intuitive, it needs to widen its availability.

"The more you use Google Now, we will have a better chance of understanding what your needs are and providing you with the right information," Gultekin said. "It's a virtuous cycle."

Shawn Jacob, a student at the University of North Texas, activated Google Now on his iPhone Monday and was startled by how much the service already knew about him when he logged in for the first time. "I was blown away," Jacob, 21, said. "It made me wonder if I really want Google to know this much about me. It's like Google wants to take over the world."

Gultekin declined to discuss whether there are plans to make Google Now apps for mobile devices running on Microsoft's Windows system. He also refused to comment on speculation circulating in technology blogs that a Web version of Google Now will be offered as a replacement for iGoogle, a tool that allows people to encircle the Google search engine with a variety of services suited to their tastes. IGoogle is scheduled to close in November.

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Online:

http://www.google.com/landing/now/

Canon, Nintendo find solace in Abenomics as weaker yen boosts outlook



By Tim Kelly and Mari Saito

TOKYO (Reuters) - Super Mario creator Nintendo Co Ltd forecast a return to the black after two years of losses and camera maker Canon Inc raised its profit forecast by nearly 10 percent as a weaker yen, spurred by aggressive deflation-fighting policies, bolstered the outlook of Japan's tech companies.

The two companies, however, show no sign of reciprocating the government's helping hand with fresh job-creating investment. Canon, still worried about a struggling global economy, pared its capital expenditure.

As the first blue-chip Japanese tech companies to report quarterly results, Nintendo and Canon are often seen as a barometer for the sector's earnings. The tech sector directly employs around 2 million workers in Japan.

"We welcome Abenomics," Canon Chief Financial Officer Toshizo Tanaka said at a news briefing, acknowledging the impact of Prime Minister Shinzo Abe's economic stimulus policies.

"The Japanese economy moves on this kind of mood so we value this and hope to find success," he added.

At Canon, a weakening yen is helping to compensate for a squeeze on compact camera sales as consumers switch to photo snapping on their smartphones. And the softer Japanese currency may buy Nintendo more time to plug its Wii game console successor, the Wii U, which has disappointed with dull sales as it also competes with smartphones and tablets.

For the business year to December 31, Canon, which relies on foreign markets for four-fifths of its sales, lifted its operating profit forecast to 450 billion yen ($4.53 billion).

Nintendo, which generates three-quarters of its revenue abroad, forecast an operating profit of 100 billion yen after two years of losses as its Wii boom ebbed.

Canon raised its forecast dollar rate for the year to 95 yen compared with the 85 yen forecast issued just three months earlier.

Nintendo estimated a rate of 90 yen to the dollar for the year to next March. Its president, Satoru Iwata, told a news briefing in Osaka that the figure was "conservative".

Nintendo sold 3.45 million Wii U consoles from its November launch until March 31, far below the 5.5 million it initially predicted. For this business year, it is aiming to sell 9 million.

LONG-HELD WISH

For Japanese business leaders worried about their ability to compete globally, particularly against South Korean rivals such as Samsung Electronics Co Ltd and LG Electronics Inc, the yen decline fulfils a long-held wish.

Fabricating goods worth almost $400 billion a year, Japanese makers of TVs, mobile phones, printers and personal computers account for a sizeable chunk of Japan's $5 trillion economy.

Canon's operating profit in the first quarter dipped 34 percent to $552 million, which the company blamed on a weakened global economy and the hit to its compact camera business from smartphones. Nintendo posted a full-year operating loss of 36.4 billion yen.

Corporate heads who have praised Abenomics include Sony Corp CEO Kazuo Hirai. His company and other Japanese TV makers, Panasonic Corp and Sharp Corp, have struggled to fend off competition from Samsung Electronics as a strong yen bit into profits.

Sony, with its bigger exposure to overseas markets, is the best-placed among TV makers to gain from a weaker yen, particularly versus the euro. A 1 yen drop against the European single currency adds about 6 billion yen to operating profit at the maker of Bravia sets.

At Panasonic, a 1 yen weakening against the euro boosts operating profit by 2 billion yen, while it reaps a 2.5 billion yen gain for declines against the dollar. At Sharp, which more heavily relies on its home market, a 1 yen move is worth around 500 million yen in operating profit against the euro and 700 million yen against the dollar.

More than a third of Japanese companies remain worried about domestic demand stagnating, a Reuters survey of 240 companies released on Friday shows. A quarter said they were likely to increase output in Japan because of the weaker yen.

On balance, however, Wednesday's results produced no signs that Abenomics was encouraging a boost in capital spending.

Canon, which stands to benefit more than most Japanese companies from a weak yen, on Wednesday trimmed its capital expenditure for the business year to 265 billion yen from 270 billion yen.

"Dramatic monetary easing has prompted a revision of the strong yen, but there are still uncertainties surrounding the U.S. budget problems and European debt issues," Tanaka cautioned.

Since mid-November, when an Abenomics-driven stock rally began, Canon's shares have gained 58 percent, in line with a 60 percent gain in the Nikkei 225 benchmark index. Its stock rose 1.3 percent in Tokyo to 3,840 yen on Wednesday.

Nintendo, which has gained 17 percent since November, rose 4.6 percent to 11,950 yen. Quarterly results for both companies were released after the close of trading.

($1 = 99.3600 Japanese yen)

(Editing by Daniel Magnowski and Edmund Klamann)

Insight: Good life goes on as Syrian elite sit out war



By Michael Stott and Samia Nakhoul

DAMASCUS (Reuters) - It might sound absurd to talk about normal life in Syria after two years of civil war which have killed more than 70,000 people and left five million more destitute and homeless.

Yet in the neighborhood of Malki, a tree-lined enclave of central Damascus, a wealthy group of elite, pro-government Syrians still enjoy shopping for imported French cheeses, gourmet hand-made chocolates and iPad minis in the well-stocked, recently built Grand Mall and in nearby boutiques.

Such are the parallel realities of a conflict in which, for all the gains made by rebels and the current chatter about U.S. "red lines" crossed that might ultimately draw in Western might, President Bashar al-Assad is holding his ground in the capital, bulwarked by his own foreign allies and by many Syrians who fear his end could prove fatal for them too. And so life goes on.

In Malki, sprinklers water the manicured lawns outside their blocks of million-dollar apartments. Maids and drivers cater to their every whim and birds sing in the trees. Fuel for their BMWs and electricity for their air-conditioning is plentiful and the well-guarded streets are free of loiterers.

"Look at this display and you feel all is well, life is good and everything is here," said an elegantly dressed Hiyam Jabri, 50, as she placed her order at the delicatessen counter in the mall's main supermarket.

Malki residents continue to enjoy material comforts and abundant supplies of imported goods, even as millions of their compatriots subsist on food handouts.

The United Nations World Food Programme estimates it is feeding 2.5 million people inside Syria - a tenth of the population - and a further million who have fled the country, offering them subsistence rations of flour and rice.

"We are trying to keep up with the enormity of the crisis and the impact of the brutality," the WFP's deputy regional emergency coordinator Matthew Hollingworth said in the capital.

Most of those whom his staff help "haven't been displaced once but sometimes twice, three times". Food is so scarce for those uprooted by the fighting that rations intended to feed a family of five are being shared by three families.

ILLUSIONS

Even in Malki, though, the air of normality is an illusion - as unreal as the oft-repeated assertions of government officials that victory is near and Assad still controls almost all Syria.

Scratch the surface of the illusion and the normality quickly becomes anything but.

Pasted to the lamp-post outside the elegant chocolatier Ghraoui, whose interior boasts award certificates from France, is a wad of black and white fliers. They are printed by families and they mourn sons and husbands killed in the war.

It is a war, however, that seems to be going nowhere fast.

Recent days have shown again the reluctance of the United States and its allies, in the face of evidence Assad's troops may have crossed President Barack Obama's "red line" by using chemical weapons, to intervene militarily against him - not least as some rebels have espoused the cause of al Qaeda.

Among the few independent outsiders seeing at first hand the mosaic of opinion and suffering in Syria, many aid workers lament that international discourse has become a monotone debate on supplying weapons, with little push for a negotiated peace.

"We need a political solution for this conflict," said Marc Lucet, the local emergency coordinator for UNICEF, whose fellow humanitarian workers recount grim tales of hungry refugees found cowering in half-built apartment blocks or idle factories.

The surface serenity of Malki contrasts with what aid groups say is a country splintered by ever shifting frontlines and a fragmenting opposition; many fear violence will spread beyond Syria's borders and are baffled by the debate in the West over how far to arm rebels, saying this will only make matters worse.

Stressing the need for a political settlement, however, unpalatable and, so far, unattainable, UNICEF's Lucet said: "The solution is certainly not to give more weapons to either side."

Attempts to bring Assad down by diplomatic means have failed to break the impasse, even if they do make life less comfortable in Malki.

Inside the Ghraoui chocolate boutique, as everywhere else in Syria, sales are strictly cash only - sanctions have forced international credit card networks to boycott transactions here.

Prices on restaurant menus in local currency, the Syrian pound, have been hastily updated with stickers multiple times - a tell-tale sign of rapid inflation.

At the luxury mall supermarket, Eyad al-Burghol says he is selling fewer imported foodstuffs than before because many wealthy customers have left the country.

FIGHTING TALK

A distant thump of artillery fire serves as a reminder that, just a few kilometers (miles) away, fierce street-to-street battles are being fought between government and rebel forces. Some days, Russian-made MiG fighter jets streak across the sky on their way to bomb insurgent positions.

The abundant security in Malki, residents say, is provided by men who speak the Iranian tongue of Farsi, rather than Syrian Arabic. Tehran has long been Assad's sponsor against his fellow Arab leaders and the word on the street - impossible to verify - is that this heavily guarded area of town may be home to the Syrian president himself and to his immediate family.

Assad is not seen in public these days and officials refuse to comment on his movements or whereabouts.

Senior Syrian officials try hard to show visiting reporters a picture of normality in which the government is firmly in control. But even the cocoon in which they live and work is starting to be punctured by the facts of war.

Syria's central bank governor Adeeb Mayaleh gave Reuters an interview last week at a headquarters building bearing the scars of a car bomb attack earlier in the month. Blinds hung twisted and useless in front of warped window-frames without glass. A palm tree outside had been reduced to a charred skeleton.

The bank chief insisted that the government had plenty of foreign currency available to guarantee imports and enough cash to pay public employees' wages in advance each month. For how long? Iran and Russia, he said, were about to agree fresh funds.

Deputy Foreign Minister Faisal Mekdad gave an upbeat assessment of the war in an interview - but a Syrian who works nearby told us that the complex housing the ministry had been attacked four times by rebels in the past few months.

UNICEF regional coordinator Youssef Abdul-Jalil estimated that at least three million children inside Syria now needed humanitarian assistance because of the war: "There is a crisis of the children of Syria," he said. "They are paying a terrible price in their lives, in their surroundings, in their health, in their education and in their lack of protection".

REALITY INTRUDES

Cars still choke central Damascus and traffic police still issue tickets for speeding and even clamp badly parked vehicles. But armed checkpoints snarl progress to a snail's pace.

Travel agents still offer flights and holidays. But the road to the city's airport is considered too dangerous by many and flights are available only to a few, friendly, destinations.

Telephones still work and officials still show up for work in neatly ironed shirts and well-pressed suits - but many scuttle off early to be home before nightfall.

One resident spoke of a distant relative, a Christian from a prosperous family of car dealers, who was kidnapped. Accused of supporting Assad, he was beaten while hanging upside down. His captors then they injected fuel into his veins. Released for a ransom worth over $20,000, the man died a few days later.

While the Syrian elite continue to insist that the military campaign against the rebels is succeeding, aid workers in Aleppo say that the area of the country's biggest city that is now controlled by the government is very small.

The main north-south highway which connects Aleppo to Damascus via the major cities of Homs and Hama now features some 38 checkpoints, about nine of which are manned by various groups of rebels, NGO workers who have traveled along it recently say.

In the capital, the government says it guarantees a "Square of Security" in the center; some locals joke that rebel gains have shorn it to a rather smaller "Security Triangle".

Damascus's walled Old City, a UNESCO World Heritage site and home to the 7th-century Umayyad mosque, retains its beauty. But these days it is eerily empty. Tourists have long gone and the souvenir sellers have all but given up hope of selling anything.

Inside the mosque's main prayer hall, featuring a shrine said to contain the head of St. John the Baptist, mournful guides tell of how the imam was recently murdered.

At a jewelry shop in the al-Hamidiyeh bazaar, Anas Hallawi, 25, sat looking bored: "People are selling their gold not buying these days," he said. "Our business thrived on foreign tourists and Syrians buying gold for their brides.

"Now the tourists are gone. And nobody is getting married."

At the Al-Naranj restaurant in the Christian Quarter, one of Damascus's finest eateries, diners discussed the relative risks of car bombings versus random mortar attacks and kidnap. Little wonder that so many with the means have left for Lebanon, as life in the capital becomes a kind of ghoulish Russian roulette.

Across the room, a smartly dressed family group celebrated a betrothal with a lavish spread of traditional Syrian food on a table decorated with red roses.

As the strains of the old songs died away and a festive cake was eaten, a fighter jet roared across the sky. Artillery fire thudded in the distance. The family looked upwards through the restaurant's glass roof, eyes suddenly fearful. (Editing by Alastair Macdonald)

Microsoft to reveal next-generation Xbox on May 21



By Malathi Nayak

SAN FRANCISCO (Reuters) - Microsoft Corp will unveil its much-anticipated next-generation Xbox on May 21 following months of speculation the company is gearing up to announce a new video game console this summer.

The company sent out media invitations on Wednesday, hinting it would be announcing the successor to its seven-year old Xbox 360. A new console from the software company will come on the heels of rival Sony's announcement in February that it will launch the PlayStation4 this holiday season.

Microsoft's May event will be held at its Xbox campus in Redmond, Washington, just a month before the Electronic Entertainment Expo (E3) in Los Angeles, the gaming industry's largest annual convention, where next-generation consoles will be spotlighted.

"On May 21, we'll mark the beginning of a new generation of games, TV and entertainment," the company said on its official blog.

The Xbox 360 is the market-leading console that has an installed user base of 76 million. Gaming blogs have been afire with speculation about what features a next-generation console might offer, but Microsoft has been tight-lipped so far.

The current version of the Xbox sports voice- and gesture-command capabilities.

Shares in Microsoft were up 3.1 percent at $31.53 in the afternoon.

(Reporting By Malathi Nayak; Editing by Kenneth Barry)

Seattle's interim police chief sorry for video mocking homeless



By Elaine Porterfield

SEATTLE (Reuters) - Seattle's interim police chief has apologized for appearing in a 1986 video that showed him and other officers mocking the homeless in what the city's police department this week called an "ugly piece" of its history.

Interim Chief Jim Pugel, who is implementing sweeping reforms in the wake of a 2012 U.S. Department of Justice report that found the city's police routinely used excessive force, appeared in the video when he was a 26-year-old officer.

In the roughly five-minute clip, which officials say was part of a training video and which they released this week, Pugel and a few colleagues are seen wearing fake beards, dancing with bottles of alcohol under a freeway overpass and singing parody lyrics to the 1964 song "Under the Boardwalk" by The Drifters.

Some of the officers sport blacked-out teeth as they croon lyrics such as, "We'll be drinking Thunderbird (wine) all through the day, under the viaduct. Who could ask for anything more?"

"Even by 1980s standards, the Seattle Police Department considered the video to be insensitive and inappropriate," Pugel, who was appointed to his position earlier this month, said in a statement late on Thursday. "I regret my participation and have professionally apologized for my role in it. I do so now publicly. I am truly sorry."

He takes over a department that has at times experienced a troubled history with minority communities and is in the first year of a reform plan overseen by the U.S. Department of Justice to revise the use of force by officers.

The Seattle Times reported in a story posted on its website on Friday that the newspaper and other media outlets had received several tips about the video's existence before it was made public late on Thursday by police.

Seattle police spokesman Sean Whitcomb said Pugel, who has not said whether he will seek to lead the department on a permanent basis, disclosed the existence of the video to other city officials and homeless groups when he was appointed interim chief.

"It's not a problem but an opportunity to showcase who Chief Pugel is," Whitcomb said. "For him it was a leadership moment."

Police say all existing copies of the video have been destroyed, except for a single copy retained for their records.

Pugel said in his statement that he had the video released because he felt it was "important to show where this department has been and where it is going" and that he discussed it with Mayor Mike McGinn and several Seattle-based homeless groups.

(Writing by Alex Dobuzinskis; Editing by Paul Simao)

Gwyneth Paltrow named People's most beautiful woman



LOS ANGELES (Reuters) - Oscar-winning actress Gwyneth Paltrow on Wednesday was named the world's most beautiful woman for 2013 by People magazine, knocking pop singer Beyonce out of the top spot.

The 40-year-old mother of two credits a five-day-a-week exercise regimen for keeping her in shape as she grows older.

"It makes me look younger and feel strong," Paltrow told the magazine. "When I first started, I thought, 'I'll never be good at this. This is a nightmare!' But now it's like brushing my teeth, I just do it."

It is the fourth time Paltrow, who is married to Coldplay singer Chris Martin, has been named to the magazine's annual beautiful people issue, but the first time landing the coveted cover as most beautiful woman.

She joins the likes of fellow actresses Jennifer Lopez, Julia Roberts, Halle Berry and Jennifer Aniston to top the list.

Paltrow reprises her starring role as Pepper Potts in the action film "Iron Man 3," which opens next month.

The actress has cut back her film work after giving birth to children Apple, 8, and Moses, 7, and released her second cookbook, "It's All Good," this month.

She is also the founder of lifestyle and clothing website Goop.com.

Paltrow won an Oscar for her role as William Shakespeare's muse in the 1998 film "Shakespeare in Love."

The full list of People's "World's Most Beautiful People" can be found on www.people.com/mostbeautiful

(Reporting by Eric Kelsey; Editing by Sandra Maler)

Zynga reports fewer players of its online games, shares drop



By Gerry Shih

SAN FRANCISCO (Reuters) - Zynga Inc said on Wednesday the number of people playing its online games dropped dramatically in the first quarter, a development that overshadowed better-than-expected revenues and sent its stock tumbling in after-hours trade.

Shares fell 10 percent to $2.99 in extended trading.

The San Francisco-based publisher behind games like "FarmVille" and "Words With Friends" said its number of monthly players continued its decline to 253 million, the lowest figure since the number peaked at 331 million at the end of the third quarter of 2012.

On an adjusted basis, Zynga reported earnings of 1 cent per share, beating analyst expectations of a loss of 4 cents per share. But the company also projected that its second-quarter loss would be between 3 to 5 cents per share, exceeding the 1 cent per share loss analysts had expected.

"The second quarter guidance is light," said Sterne Agee analyst Arvind Bhatia. "We continue to think that any hope for real growth for this nebulous company really depends on what it can do in real-money gaming."

Zynga has struggled to keep users, who once flocked to its games on Facebook Inc's website. In recent months, Zynga and Facebook have revised their business partnership, as Zynga has sought to establish itself as a more independent gaming network at the risk of receiving less visitor traffic from Facebook.

Zynga has promised investors that it could tap into a potentially lucrative new revenue stream by launching real-money casino games around the world.

The company reported revenues of $263.6 million, down 18 percent from the year-ago quarter but above Wall Street's depressed expectations as the online game maker wrung more sales than expected out of its shrinking user base.

Zynga's quarterly bookings of $229.8 million also topped estimates but represented a 30 percent decline from a year ago.

(Reporting By Gerry Shih; Editing by Leslie Adler and David Gregorio)