S&P 500 ends six-day winning streak on "cliff" anxiety

NEW YORK (Reuters) - The S&P 500 ended its six-day winning streak on Thursday, retreating as worries intensified that Washington's "fiscal cliff" negotiations were dragging on with little progress.

Anxiety about the drawn-out talks between Democrats and Republicans was enough to offset encouraging data on retail sales and jobless claims on Thursday.

There is concern that tax hikes and spending cuts, set to begin in 2013 if a deal is not reached in Washington, will hurt growth. The stock market has taken the heated rhetoric in stride of late, but downbeat remarks from Republican House Speaker John Boehner prompted some selling on Thursday.

Boehner accused President Barack Obama of "slow walking" the economy off the fiscal cliff. He is scheduled to meet with Obama later on Thursday.

"There is no conviction here and Boehner's comments - as harsh as they were - were realistic," said Jason Weisberg, managing director at Seaport Securities Corp., in New York.

"The fiscal cliff is already built in. That being said, people don't like to be told the apocalypse is coming over and over and over again. The real players in this market have already closed their books."

After coming close to a 1 percent decline for the day, the S&P 500 pared losses late in the session. The index had posted six straight sessions of gains through Wednesday's close, and at one point on Wednesday, the S&P touched its highest intraday level since October 22.

While the Federal Reserve's announcement on Wednesday of a new round of economic stimulus bolstered stocks, Chairman Ben Bernanke's comments that monetary policy would not be sufficient to offset the impact of the fiscal cliff weighed on sentiment.

Apple's stock , down 1.7 percent at $529.69, was among the biggest drags on the Nasdaq in Thursday's session, while International Business Machines , down 0.5 percent at $191.99, was among the biggest weights on the Dow. A U.S. jury found that Apple's iPhone infringed three patents owned by MobileMedia Ideas.

Among the day's biggest gainers, Best Buy Co shares shot up 15.9 percent to $14.12 after a report that the company's founder is expected to offer to buy the consumer electronics retailer by the end of the week.

The Dow Jones industrial average <.dji> tumbled 74.73 points, or 0.56 percent, to 13,170.72 at the close. The Standard & Poor's 500 Index <.spx> fell 9.03 points, or 0.63 percent, to 1,419.45. The Nasdaq Composite Index <.ixic> slid 21.65 points, or 0.72 percent, to end at 2,992.16.

Energy and information technology sectors were the S&P 500's weakest performers, with the S&P energy index <.gspe> down 0.9 percent.

In the energy sector, shares of Nabors Industries Ltd dropped 4.7 percent to $13.85 after Jefferies cut the drilling company's rating. Shares of U.S. refining company Phillips 66 lost 1.6 percent to $52.21.

The day's economic data sent some positive signals on the economy, with weekly claims for jobless benefits dropping to nearly the lowest level since February 2008, and retail sales rising in November after an October decline, improving the picture for consumer spending.

In Europe, European Union finance ministers reached agreement to make the European Central Bank the bloc's top banking supervisor, which could boost confidence in EU leaders' ability to confront the euro zone's sovereign debt crisis.

After the bell, shares of Adobe Systems Inc rose 5.8 percent to $37.60 after the maker of Photoshop and Acrobat software posted a better-than-expected fourth-quarter profit. The stock ended the regular session at $35.53, down 1.2 percent.

Volume was roughly 6.16 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the year-to-date average daily closing volume of 6.52 billion.

Decliners outnumbered advancers on the NYSE by a ratio of about 7 to 3, and on the Nasdaq, more than five stocks fell for every three that rose.

(Reporting by Caroline Valetkevitch; Additional reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Jan Paschal)

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North Korea rocket launch raises nuclear stakes

SEOUL/TOKYO (Reuters) - North Korea successfully launched a rocket on Wednesday, boosting the credentials of its new leader and stepping up the threat the isolated and impoverished state poses to opponents.

The rocket, which North Korea says put a weather satellite into orbit, has been labeled by the United States, South Korea and Japan as a test of technology that could one day deliver a nuclear warhead capable of hitting targets as far away as the continental United States.

"The satellite has entered the planned orbit," a North Korean television news reader clad in traditional Korean garb announced, after which the station played patriotic songs with the lyrics "Chosun (Korea) does what it says".

The rocket was launched just before 10 a.m. (0100 GMT), according to defense officials in South Korea and Japan, and was more successful than a rocket launched in April that flew for less than two minutes.

The North American Aerospace Defense Command (NORAD), a joint U.S.-Canadian military organization, said that the missile had "deployed an object that appeared to achieve orbit".

North Korea followed what it said was a similar successful launch in 2009 with a nuclear test that prompted the U.N. Security Council to stiffen sanctions that it originally imposed in 2006 after the North's first nuclear test.

North Korea is banned from developing nuclear and missile-related technology under U.N. resolutions, although Kim Jong-un, the youthful head of state who took power a year ago, is believed to have continued the state's "military first" programs put in place by his late father, Kim Jong-il.

North Korea hailed the launch as celebrating the prowess of all three members of the Kim family to rule since it was founded in 1948.

"At a time when great yearnings and reverence for Kim Jong-il pervade the whole country, its scientists and technicians brilliantly carried out his behests to launch a scientific and technological satellite in 2012, the year marking the 100th birth anniversary of President Kim Il Sung," its KCNA news agency said. Kim Il Sung, the current leader's grandfather, was North Korea's first leader.

The United States condemned the launch as "provocative" and a breach of U.N. rules, while Japan's U.N. envoy called for a Security Council meeting. However, diplomats say further tough sanctions are unlikely from the Security Council as China, the North's only major ally, will oppose them.

"The international community must work in a concerted fashion to send North Korea a clear message that its violations of United Nations Security Council resolutions have consequences," the White House said in a statement.

U.S. intelligence has linked North Korea with missile shipments to Iran. Newspapers in Japan and South Korea have reported that Iranian observers were in the North for the launch, something Iran has denied.

Japan's likely next prime minister, Shinzo Abe, who is leading in opinion polls ahead of an election on Sunday and who is known as a hawk on North Korea, called on the United Nations to adopt a resolution "strongly criticizing" Pyongyang.

A North Korean Foreign Ministry spokesman reiterated that the rocket was a "peaceful project".

"The attempt to see our satellite launch as a long-range missile launch for military purposes comes from hostile perception that tries to designate us a cause for security tension," KCNA cited the spokesman as saying.

"STUMBLING BLOCK"

China had expressed "deep concern" prior to the launch which was announced a day after a top politburo member, representing new Chinese leader Xi Jinping, met Kim Jong-un in Pyongyang.

On Wednesday, its tone was measured, regretting the launch but calling for restraint on any counter-measures, in line with a policy of effectively vetoing tougher sanctions.

"China believes the Security Council's response should be cautious and moderate, protect the overall peaceful and stable situation on the Korean peninsula, and avoid an escalation," Chinese Foreign Ministry spokesman Hong Lei told journalists.

Bruce Klingner, a Korea expert at the Heritage Foundation, said: "China has been the stumbling block to firmer U.N. action and we'll have to see if the new leadership is any different than its predecessors."

A senior adviser to South Korea's president said last week it was unlikely there would be action from the United Nations and Seoul would expect its allies to tighten sanctions unilaterally.

Kim Jong-un, believed to be 29 years old, took power when his father died on December 17 last year and experts believe the launch was intended to commemorate the first anniversary of his death. The April launch was timed for the centennial of the birth of Kim Il Sung.

Wednesday's success puts the North ahead of the South which has not managed to get a rocket off the ground.

"This is a considerable boost in establishing the rule of Kim Jong-un," said Cho Min, an expert at the Korea Institute of National Unification.

There have been few indications the secretive and impoverished state, where the United Nations estimates a third of people are malnourished, has made any advances in opening up economically over the past year.

North Korea remains reliant on minerals exports to China and remittances from tens of thousands of its workers overseas.

Many of its 22 million people need handouts from defectors, who have escaped to South Korea, for basic medicines.

Given the puny size of its economy - per capita income is less than $2,000 a year - one of the few ways the North can attract world attention is by emphasizing its military threat.

It wants the United States to resume aid and to recognize it diplomatically, although the April launch scuppered a planned food deal.

The North is believed to be some years away from developing a functioning nuclear warhead although it may have enough plutonium for about half a dozen nuclear bombs, according to nuclear experts.

It has also been enriching uranium, which would give it a second path to nuclear weapons as it sits on big natural uranium reserves.

"A successful launch puts North Korea closer to the capability to deploy a weaponized missile," said Denny Roy, a senior fellow at the East-West Center in Hawaii.

"But this would still require fitting a weapon to the missile and ensuring a reasonable degree of accuracy. The North Koreans probably do not yet have a nuclear weapon small enough for a missile to carry."

The North says its work is part of a civil nuclear program although it has also boasted of it being a "nuclear weapons power".

(This story has been refiled to clarify reference to NORAD in paragraph five)

(Additional reporting by Jumin Park and Yoo Choonsik in SEOUL; David Alexander, Matt Spetalnick and Paul Eckert in WASHINGTON; Linda Sieg in TOKYO, Sui-Lee Wee and michael Martina in BEIJING,; Rosmarie Francisco in MANILA; Writing by David Chance; Editing by Raju Gopalakrishnan and Robert Birsel)

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‘Dishonored’ tops a diverse year in video games

The video game universe in 2012 is a study in extremes.

At one end, you have the old guard striving to produce mass-appeal blockbusters. At the other end, you have a thriving community of independent game developers scrambling to find an audience for their idiosyncratic visions. Can’t we all just get along?

Turns out, we can. For while some industry leaders are worried (and not without cause) about “disruptive” trends — social-media games, free-to-play models, the switch from disc-based media to digital delivery — video games are blossoming creatively. This fall, during the height of the pre-holiday game release calendar, I found myself bouncing among games as diverse as the bombastic “Halo 4,” the artsy “The Unfinished Swan” and the quick-hit trivia game “SongPop.”

Some of my favorite games this year have benefited from both sides working together. The smaller studios get exposure on huge platforms like Xbox Live or the PlayStation Network. The big publishers seem more willing to invite a little quirkiness into their big-budget behemoths. Gamers win.

1. “Dishonored” (Bethesda Softworks, for the Xbox 360, PlayStation 3, PC): Arkane Studios’ revenge drama combined a witty plot, crisp gameplay and an uncommonly distinctive milieu, setting a supernaturally gifted assassin loose in a gloriously decadent, steampunk-influenced city.

2. “Mass Effect 3″ (Electronic Arts, for the Xbox 360, PlayStation 3, Wii U, PC): No 2012 game was more ambitious than BioWare’s sweeping space opera. Yes, the ending was a little bumpy, but the fearless Commander Shepard’s last journey across the cosmos provided dozens of thrilling moments.

3. “The Walking Dead” (Telltale Games, for the Xbox 360, PlayStation 3, PC, iOS): This moving adaptation of Robert Kirkman’s comics dodged the predictable zombie bloodbath in favor of a finely tuned character study of two survivors: Lee, an escaped convict, and Clementine, the 8-year-old girl he’s committed to protect.

4. “Journey” (Thatgamecompany, for the PlayStation 3): A nameless figure trudges across a desert toward a glowing light. Simple enough, but gorgeous visuals, haunting music and the need to communicate, wordlessly, with companions you meet along the way translate into something that’s almost profound.

5. “Borderlands 2″ (2K Games, for the Xbox 360, PlayStation 3, PC): Gearbox Software’s gleeful mash-up of first-person shooting, role-playing and loot-collecting conventions gets bigger and badder, but what stuck with me most were the often hilarious encounters with the damaged citizens of the godforsaken planet Pandora.

6. “XCOM: Enemy Unknown” (2K Games, for the Xbox 360, PlayStation 3, PC): A strategy classic returns, as the forces of Earth fight back against an extraterrestrial invasion. It’s a battle of wits rather than reflexes, a stimulating change of pace from the typical alien gorefest.

7. “Fez” (Polytron, for the Xbox 360): A two-dimensional dude named Gomez finds his world has suddenly burst into a third dimension in this gem from indie developer Phil Fish. As Gomez explores, the world of “Fez” continually deepens, opening up mysteries that only the most dedicated players will be able to solve.

8. “Spec Ops: The Line” (2K Games, for the Xbox 360, PlayStation 3, PC): This harrowing tale from German studio Yager Development transplants “Apocalypse Now” to a war-torn Dubai. It’s a bracing critique, not just of war but of the rah-rah jingoism of contemporary military shooters.

9. “Assassin’s Creed III” (Ubisoft, for the Xbox 360, PlayStation 3, Wii U, PC): A centuries-old conspiracy takes root in Colonial America in this beautifully realized, refreshingly irreverent installment of Ubisoft’s alternate history franchise.

10. “ZombiU” (Ubisoft, for the Wii U): The best launch game for Nintendo’s new console turns the Wii U’s GamePad into an effective tool for finding and hunting down the undead.

Runners-up: “Call of Duty: Black Ops II,” ”Darksiders II,” ”Dust: An Elysian Tail,” ”Far Cry 3,” ”Halo 4,” ”Mark of the Ninja,” ”Need for Speed: Most Wanted,” ”Paper Mario: Sticker Star,” ”Papo & Yo,” ”The Unfinished Swan.”

Gaming News Headlines – Yahoo! News

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Tevin Hunte Is 'So Happy' After His Voice Elimination

TV Watch

The Voice

By Jessica Herndon and Julia Haskins

12/12/2012 at 07:45 PM EST

Team Cee Lo's Trevin Hunte was eliminated on Tuesday's episode of The Voice, but the soulful singer isn't letting the end of this journey hold him back.

"I feel like the best person on the planet Earth. I am so happy and excited to be honest," Hunte told PEOPLE after the show. I feel like a weight has been lifted. Being away from family and friends and what you're used to was definitely a hard thing for me."

Hunte is looking forward to his mom's cooking and seeing his friends back home, and he won't waste a second wondering what if he'd made it further.

"I have no regrets. I am glad that I took a leap of faith and auditioned," he said. "I auditioned for American Idol and told my family I didn't have the strength to do it again. But I am definitely happy and excited that I made it this far."

And he still has a long way to go. "I'm only 18," he said. "I'm just really excited."

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Congress examines science behind HGH test for NFL

WASHINGTON (AP) — A congressional committee has opened a hearing to examine the science behind a human growth hormone test the NFL wants to start using on its players.

Nearly two full seasons have passed since the league and the players' union signed a labor deal that set the stage for HGH testing.

The NFL Players Association won't concede the validity of a test that's used by Olympic sports and Major League Baseball, and the sides haven't been able to agree on a scientist to help resolve that impasse.

Among the witnesses before the House Oversight and Government Reform Committee on Wednesday is Pro Football Hall of Fame member Dick Butkus. In his prepared statement, Butkus writes: "Now, let's get on with it. The HGH testing process is proven to be reliable."

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Wall Street ends almost flat as Bernanke warns on "cliff"

NEW YORK (Reuters) - Stocks ended nearly flat on Wednesday, giving up most of the day's gains after Fed Chairman Ben Bernanke reiterated that monetary policy won't be enough to offset damage from the "fiscal cliff."

His comments followed the Federal Reserve's announcement of a new stimulus plan, which briefly pushed the S&P 500 to a seven-week high.

The plan, the latest attempt to boost the country's struggling economy, will replace a more modest program set to expire with a fresh round of Treasury purchases that will increase its balance sheet. The program is known as "quantitative easing" or QE.

In comments after the announcement, Bernanke said he hopes that markets won't have to tank to get a fiscal cliff deal.

"Initially the addition of QE was certainly favorable. I think, though, in the press conference, what came out is that there still seems to be a level of uncertainty with regard to the exit strategy (and) the efficacy of the current policy," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

Bernanke "reiterated the fact that monetary policy has its hands tied as far as addressing the seriousness of going over the fiscal cliff," Hellwig added.

The S&P financial sector index <.gspf>, which had been up more than 1 percent after the Fed's announcement, ended up just 0.5 percent.

Wal-Mart Stores Inc's stock was the biggest drag on the Dow, falling 2.8 percent to $68.94 following the Indian government's announcement of an inquiry into the company's lobbying practices.

The Dow Jones industrial average <.dji> slipped 2.99 points, or 0.02 percent, to 13,245.45 at the close. The Standard & Poor's 500 Index <.spx> inched up just 0.64 of a point, or 0.04 percent, to 1,428.48. But the Nasdaq Composite Index <.ixic> shed 8.49 points, or 0.28 percent, to end at 3,013.81.

Though the S&P 500 ended up just slightly, it was the sixth day of gains for the index - its longest winning streak since August.

The central bank committed to monthly purchases of $45 billion in Treasuries on top of the $40 billion per month in mortgage-backed bonds it started buying in September. It also said it will keep its near-zero interest-rate program in place until the U.S. unemployment rate falls to 6.5 percent from its current 7.7 percent.

"The actions by the Fed were more aggressive than investors anticipated," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.

"The asset-purchasing program is probably larger and more comprehensive than some might have thought."

Negotiations over plans to avoid the fiscal cliff intensified in Washington, but U.S. House of Representatives Speaker John Boehner said on Wednesday that "serious differences" remain with President Barack Obama in their talks. If no agreement is reached, steep tax hikes and budget cuts will fall into place early next year.

Shares of Aetna , the third-largest U.S. health insurer, gained 3.2 percent to $45.91, a day after the company gave a higher forecast for profit and revenue growth in 2013.

Volume was roughly 6.58 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the year-to-date average daily closing volume of 6.52 billion.

Decliners slightly outnumbered advancers on the NYSE by about 16 to 15, and on the Nasdaq, by about 3 to 2.

(Reporting by Caroline Valetkevitch; Additional reporting by Leah Schnurr Editing by Jan Paschal)

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Egyptian army to host unity talks as crisis deepens

CAIRO (Reuters) - Egypt's army chief will host national unity talks on Wednesday, seeking to end a growing political and economic crisis in the Arab world's most populous nation.

The meeting scheduled for 1430 GMT was called in response to a wave of protests since President Mohamed Mursi awarded himself sweeping powers on November 22 to push through a new constitution shaped by his Islamist allies, which is due to go to a referendum on Saturday.

"We will not speak about politics nor about the referendum. Tomorrow we will sit together as Egyptians," armed forces chief and Defense Minister Abdel Fattah al-Sisi said at a gathering of army and police officials on Tuesday.

Mursi and the Muslim Brotherhood, which propelled him to power in a June election, were expected to attend, while the main opposition coalition said it would decide on Wednesday morning whether to participate. The opposition stayed away from an earlier reconciliation meeting called by Mursi last weekend.

The judiciary committee overseeing the vote decided late on Tuesday that the referendum would be conducted on two days instead of one, as previously planned.

"The committee had officially asked the President to issue a law approving that the referendum takes place on two stages on Saturday December 15 and Saturday December 22," Judge Mahmoud Abu Shousha, a member of the referendum judiciary committee, said. Voting for Egyptians living abroad starts on Wednesday.

"The reason for the splitting of the vote into two stages is due to a shortage of judges needed to supervise the ballot stations," another member of the committee, who asked not to be named, said.

Many judges had decided in a joint meeting on Tuesday to not supervise the vote on a constitution they say had divided the country into two groups.

Outside the presidential palace - where anti-Mursi protesters are demanding the Islamist postpone the vote on a constitution they say does not represent all Egyptians - there was skepticism tinged with some hope.

"Talks without the cancellation of the referendum - and a change to the constitution to make it a constitution for all Egyptians and not the Brotherhood - will lead to nothing and will be no more than a media show," said Ahmed Hamdy, a 35-year-old office worker.

But the fact that the army was calling such talks "is an indication to all parties that the crisis is coming to a head and that they need to end it quickly", he said.

Earlier, Finance Minister Mumtaz al-Said disclosed that a $4.8 billion International Monetary Fund loan, a cornerstone of Egypt's economic recovery hopes, would be delayed until next month because of the crisis.

The delay was intended to allow time to explain a widely criticized package of economic austerity measures to the Egyptian people, Said told Reuters.

REBUILD CONSENSUS

Prime Minister Hisham Kandil said the measures would not hurt the poor. Bread, sugar and rice would not be touched, but prices of cigarettes and cooking oil would go up and fines would be imposed for public littering. In a bid to rebuild consensus, he said there would be a public consultation about the program next week.

In Washington, the IMF said Egypt had asked for the loan to be postponed "in light of the unfolding developments on the ground". The Fund stood ready to consult with Egypt on resuming discussions on the stand-by loan, a spokeswoman said.

On the streets of Cairo, thousands of opposition supporters gathered outside the presidential palace to demand that Mursi postpone Saturday's referendum.

A bigger crowd of flag-waving Islamist Mursi backers, who want the vote to go ahead as planned on Saturday, assembled at two mosques and remained on the streets as night fell over the Egyptian capital. There were also protests in Alexandria and other cities.

The extended upheaval following the fall of Hosni Mubarak last year is causing concern in the United States, which has given Cairo billions of dollars in military and other aid since Egypt made peace with Israel in 1979.

State Department spokeswoman Victoria Nuland emphasized "deep concerns" over the situation in Egypt and repeated calls on protesters to demonstrate peacefully and on security forces to act with restraint. She declined to be drawn on whether Washington believed the referendum should be postponed.

The latest unrest has so far claimed seven lives in clashes between the Islamist Muslim Brotherhood and the opposition. But the Republican Guard has yet to use force to keep protesters away from the presidential palace, now ringed with tanks, barbed wire and concrete barricades.

(Additional reporting by Tamim Elyan and Edmund Blair in Cairo, and Andrew Quinn in Washington; Writing by Giles Elgood; Editing by Michael Roddy)

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California PUC Finalizing Free Cell Phone Service for the Poor

As noted by KGO, the California Public Utilities Commission (CPUC) intends to approve a free lifeline cell phone plan that benefits California‘s poor and homeless residents. Funding for initial setup will come from the federal government.

What are the initial details of the plan?

Qualifying Californians pay an initial $ 20 fee to sign up for a monthly cell coverage plan. It offers 250 free minutes as well as 250 free text messages. From then on, the minutes and message count refill every month as long as the participant qualifies for the program. Assured Wireless — the name of the plan devised by Virgin Mobile, KERN Radio notes — has proposed this coverage to the CPUC.

Unlike the landline lifeline service, which only reduces a phone bill, this cell phone service is actually free of charge for participants. The company notes that plan participants can pay extra for international calling and for the purchase of additional minutes. The phone is free and network service is provided by Sprint. It is not known at this time if paying cell phone service customers will be charged a surcharge or fee to fund the program.

Who benefits from the free cell phone service?

The Coalition on Homelessness notes that those living on the streets will see an immediate benefit. “It’s so huge if you’re living outside you can dial 9-1-1 in the middle of the night; if you need to get in touch with your loved ones, you have a phone, if you’re trying to get in touch with a potential employer,” the Coalition on Homelessness’ Jennifer Friedenbach explained. Low-income wage earners, too, benefit since they no longer have to take money from other budget line items to afford a cell phone.

What is the wage income maximum for a qualifying program participant?

Participants cannot earn more than about $ 15,000 per year to qualify for the free cell phone program.

Is this type of program new?

This is not a new program. There are already 36 states that offer cell phone lifeline programs. The California PUC has thus far been unwilling to approve the program for the State of California.

Why does California need free cell phone service in the first place?

Although the State of California does participate in the federal lifeline landline service via local phone service providers, the number of landlines in service has decreased by 43 percent since 2000. On the flipside, the number of cell phones in use has increased by 123 percent.

What do critics say?

As noted by KERN, there is a question of taxpayer and cell phone customer cost. In other states, Sprint contributes to the program. It then has the option of charging its paying customers a fee that funds the program.

What do proponents say?

As noted by 4-Traders, Assurance Wireless has crunched the numbers for the entire nation and purports, “If all 28.5 million adults eligible for Lifeline Assistance were to take advantage of the program and earn at the same rate and level as [the study] sample, it would result in $ 3.7 billion in fresh income for the poor and near poor.”

What happens next?

As noted by the San Francisco Chronicle, the CPUC has already approved the Golden State’s participation in the program. It now needs to work out the details of Assurance Wireless’ promotional programs to advertise the free cell phone service. Program finalization is tentatively set for two weeks from now.

Sylvia Cochran is a Los Angeles area resident with a firm finger on the pulse of California politics. Talk radio junkie, community volunteer and politically independent, she scrutinizes the good and the bad from both sides of the political aisle.

Wireless News Headlines – Yahoo! News

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Hugh Hefner's Engagement Ring to Crystal Harris Revealed

By Mike Fleeman

12/11/2012 at 07:00 PM EST

The wedding's back on – though it may be a good idea to save that gift receipt.

Hugh Hefner, 86, officially confirms that he is once again engaged to Crystal Harris, 26, telling his Twitter followers, "I've given Crystal Harris a ring. I love the girl."

And to prove it, Harris posted photos of the big diamond sparkler, calling it "my beautiful ring."

Neither announced a wedding date, though sources tell PEOPLE they're planning to tie the knot at the Playboy Mansion in Los Angeles on New Year's Eve.

Whether that still happens remains to be seen.

This is the plan they had in 2011 – a wedding at the mansion – except that Harris called it off just days before the nuptials were scheduled to happen in front of 300 invited guests.

Hugh Hefner and Crystal Harris

David Livingston / Getty

The onetime Playmate of the Month then ripped Hef's bedroom skills, calling him a two-second man, to which Hefner replied, "I missed a bullet" by not marrying her.

A year later, Hefner's "runaway bunny" bounded back to him.

• Reporting by JENNIFER GARCIA

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DA investigating Texas' troubled $3B cancer agency

AUSTIN, Texas (AP) — Turmoil surrounding an unprecedented $3 billion cancer-fighting effort in Texas worsened Tuesday when its executive director offered his resignation and the state's chief public corruption prosecutor announced an investigation into the beleaguered agency.

No specific criminal allegations are driving the latest probe into the Cancer Prevention and Research Institute of Texas, said Gregg Cox, director of the Travis County district attorney's public integrity unit. But his influential office opened a case only weeks after the embattled agency disclosed that an $11 million grant to a private company bypassed review.

That award is the latest trouble in a tumultuous year for CPRIT, which controls the nation's second-largest pot of cancer research dollars. Amid the mounting problems, the agency announced Tuesday that Executive Director Bill Gimson had submitted his letter of resignation.

"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote in a letter dated Monday.

Gimson said the troubles have resulted in "wasted efforts expended in low value activities" at the agency, instead of a focused fight against cancer. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.

His departure would complete a remarkable house-cleaning at CPRIT in a span of just eight months. It began in May, when Dr. Alfred Gilman resigned as chief science officer in protest over a different grant that the Nobel laureate wanted approved by a panel of scientists. He warned it would be "the bomb that destroys CPRIT."

Gilman was followed by Chief Commercialization Officer Jerry Cobbs, whose resignation in November came after an internal audit showed Cobbs included an $11 million proposal in a funding slate without a required outside review of the project's merits. The lucrative grant was given to Dallas-based Peloton Therapeutics, a biomedical startup.

Gimson chalked up Peloton's award to an honest mistake and has said that, to his knowledge, no one associated with CPRIT stood to benefit financially from the company receiving the taxpayer funds. That hasn't satisfied some members of the agency's governing board, who called last week for more assurances that no one personally profited.

Cox said he has been following the agency's problems and his office received a number of concerned phone calls. His department in Austin is charged with prosecuting crimes related to government officials; his most famous cases include winning a conviction against former U.S. House Majority Leader Tom DeLay in 2010 on money laundering charges.

"We have to gather the facts and figure what, if any, crime occurred so that (the investigation) can be focused more," Cox said.

Gimson's resignation letter was dated the same day the Texas attorney general's office also announced its investigation of the agency. Cox said his department would work cooperatively with state investigators, but he made clear the probes would be separate.

Peloton's award marks the second time this year that a lucrative taxpayer-funded grant authorized by CPRIT instigated backlash and raised questions about oversight. The first involved the $20 million grant to M.D. Anderson Cancer Center in Houston that Gilman described as a thin proposal that should have first been scrutinized by an outside panel of scientific peer-reviewers, even though none was required under the agency's rules.

Dozens of the nation's top scientists agreed. They resigned en masse from the agency's peer-review panels along with Gilman. Some accused the agency of "hucksterism" and charting a politically-driven path that was putting commercial product-development above science.

The latest shake-up at CPRIT caught Gilman's successor off-guard. Dr. Margaret Kripke, who was introduced to reporters Tuesday, acknowledged that she wasn't even sure who she would be answering to now that Gimson was stepping down. She said that although she wasn't with the agency when her predecessor announced his resignation, she was aware of the concerns and allegations.

"I don't think people would resign frivolously, so there must be some substance to those concerns," Kripke said.

Kripke also acknowledged the challenge of restocking the peer-review panels after the agency's credibility was so publicly smeared by some of the country's top scientists. She said she took the job because she felt the agency's mission and potential was too important to lose.

Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far.

Gov. Rick Perry told reporters in Houston on Tuesday that he wasn't previously aware of the resignation but said Gimson's decision to step down was his own.

Joining the mounting criticism of CPRIT is the woman credited with brainstorming the idea for the agency in the first place. Cathy Bonner, who served under former Texas Gov. Ann Richards, teamed with cancer survivor Lance Armstrong in selling Texas voters in 2007 on a constitutional amendment to create an unprecedented state-run effort to finance a war on disease.

Now Bonner says politics have sullied an agency that she said was built to fund research, not subsidize private companies.

"There appears to be a cover-up going on," Bonner said.

Peloton has declined comment about its award and has referred questions to CPRIT. The agency has said the company wasn't aware that its application was never scrutinized by an outside panel, as required under agency rules.

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Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber

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