Japan stocks rally, yen resumes fall after G20

TOKYO (Reuters) - Japanese shares jumped closer to a 33-month high as the yen slumped on Monday after Tokyo dodged direct criticism from G20 peers on the aggressive reflation plans that have weakened the currency.

The G20 opted not to single out Tokyo, but committed members to refrain from competitive devaluations and said monetary policy would be directed only at price stability and growth. Japan said this decision is a green light to pursue its expansionary policies.

The dollar soared 0.7 percent to 94.17 yen inching closer to its highest since May 2010 of 94.465 hit on February 11. The euro added 0.3 percent to 125.51 yen, still below its peak since April 2010 of 127.71 yen touched on February 6.

The Nikkei average <.n225> jumped 2.3 percent as exporters and banks led the pack on the softening yen. <.t/>

The market's focus is now on Prime Minister Shinzo Abe's nominee for the next Bank of Japan governor. Abe is expected to announce his choice in coming days.

Sources told Reuters that former top financial bureaucrat Toshiro Muto is leading the field of candidates to govern the bank. He is expected to intensify stimulus efforts to energise the economy.

"The G20's message is that monetary easing is OK, but not to imply anything about leading a currency weaker. The G20 effect is already seen in Abe's general comments on forex today which steered away from giving specifics on a preferred level or direction for the yen," said Yunosuke Ikeda, a senior FX strategist at Nomura Securities.

Abe said on Monday that the BOJ's monetary easing is aimed at beating deflation, not at manipulating the forex market and weakening the yen, and said correcting excessive yen rises would be an appropriate policy direction. Previously, Japanese officials have noted that the current yen selling was a correction to the past excessive yen strength.

The yen's weakness weighed on emerging Asian currencies while South Korean shares <.ks11> eased 0.3 percent on concerns about the eroding competitive edge for the country's exporters.

"Japan will keep seeking the current policy. The rest of Asia will not just wait and see. That will put more pressure on Asian currencies," said Yuna Park, a currency and bond analyst at Dongbu Securities in Seoul.

A weaker yen would make other currencies relatively stronger against the dollar and fuel speculation that other Asian countries could step in to curb the strength of their currencies, Ikeda said.

The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> eased 0.2 percent. The pan-Asian index briefly hit a 18-1/2-month high on Friday and had its best performance since the week of January 6 with a 1.2 percent weekly gain.

On Friday, MSCI's all-country world index <.miwd00000pus>, a measure of global equity activity, traded down 0.26 percent, while European shares closed lower and U.S. stocks ended flat.

Australian shares rose 0.5 percent as miners gained on hopes that top customer China might start buying after the Lunar New Year holidays, while blue chips Commonwealth Bank of Australia and Telstra Corp Ltd dropped after trading ex-dividend.

Markets in China and Taiwan resumed trading after a week-long holiday.

STOCKS CONSOLIDATE

Data from EPFR Global on Friday underscored that a consolidation was underway in global equities after their recent rally. It showed investors worldwide pulled $3.62 billion from U.S. stock funds in the latest week, the most in ten weeks after taking a neutral stance the prior week. But demand for emerging market equities remained strong, with investors putting $1.81 billion in new cash into stock funds, the fund-tracking firm said.

Demand for commodities will likely be in focus as China returns to the market.

Investors are also expected to focus on fiscal talks in Washington, where policymakers are discussing a package of budget cuts set to kick in on March 1. Analysts say the austerity measures could hurt the U.S. economy.

U.S. crude fell 0.2 percent to $95.63 a barrel but Brent inched up 0.1 percent to $117.81.

Gold rebounded from a six-month low on Monday as bargain hunters resurfaced and jewellers in China returned to the physical market after the Lunar New Year holiday, but a firm U.S. dollar was likely to limit the upside.

(Additional reporting by Jongwoo Cheon; in Singapore; Editing by Shri Navaratnam and Eric Meijer)

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Ecuador's Correa cruises to re-election victory

QUITO (Reuters) - Ecuadorean President Rafael Correa swept to a re-election victory on Sunday that allows him to strengthen state control over the OPEC nation's economy and gives a timely boost to Latin America's alliance of socialist leaders.

The charismatic leftist had 57 percent support compared with 24 percent for runner-up Guillermo Lasso, with almost 40 percent of votes counted. The electoral authority said it did not expect the results to change significantly.

"Nobody can stop this revolution," a jubilant Correa told supporters from the balcony of the presidential palace, after claiming victory.

"The colonial powers are not in charge anymore. You can be sure that in this revolution it's Ecuadoreans in control."

The combative, U.S.-trained economist took power in 2007 and has won strong support among the poor by using booming oil revenues to build roads, hospitals and schools in rural areas and shantytowns.

"Our Ecuador needs a president like Rafael Correa. He has been strong and has not allowed anyone to intimidate him," said Julieta Moira, 46, who is unemployed, as she celebrated outside the presidential palace. "I'm very excited, happy and thankful."

Supporters also gathered in a park in the upscale north end of Quito, waving the signature neon-green flags of Correa's Alianza Pais party.

DEDICATES WIN TO CHAVEZ

Correa, 49, may now be in line to become Latin America's main anti-American voice and de facto leader of the ALBA bloc of leftist governments as Venezuelan President Hugo Chavez has been silenced during his battle with cancer.

Correa said he dedicated his victory to Chavez.

The principal challenge in Correa's new four-year term will be wooing investors needed to boost stagnant oil production and spur the mining industry. A $3.2 billion debt default in 2008 and aggressive oil contract negotiations scared off many.

Critics view Correa as an authoritarian leader who has curbed media freedom and appointed aides to top posts in the judiciary.

"This government has not given us anything good, only insults and taxes. We're tired of all that. I'm concerned that this government has alliances with communist countries," said Celeste Guerrero, a 68-year-old pensioner in Guayaquil.

Even some supporters disapprove of his tempestuous outbursts, confrontations with media and bullying of adversaries.

But the fractured opposition failed to make a consolidated challenge. It fielded seven candidates, making it easy for Correa, and he is now on track for a decade in office.

That is rare stability in a country where three presidents were pushed from office by coups or street protests in the decade before Correa took power in 2007.

He is already the longest-serving president since the return to democracy in the 1970s following a military dictatorship.

Correa's success has hinged in part on high oil prices that allowed for liberal state spending, including boosting cash handouts to 2 million people, and spurred solid economic growth.

He is likely to continue spending heavily to maintain his popularity, but state revenues would dry up if oil prices fell.

He now hopes to diversify the economy away from its dependence on oil, in part by bringing in new investment for the mining sector. Despite promising reserves of gold and copper, mining operations have barely gotten off the ground.

In a news conference on Sunday after polls closed, Correa played down the need for more foreign investment. He insisted the ultimate goal was to ensure economic growth rather than "mortgaging" the country to bring in cash from abroad.

"We welcome foreign investment, and we're already getting plenty of it," Correa said. "Ecuador is one of the most successful economies in Latin America."

Lasso, a wealthy ex-banker and Correa's closest rival, had tried to woo voters with promises of lower taxes. He congratulated Correa on his victory but also took pride in his Creo party taking a quarter of the vote.

"We are now the second-largest political force in the country," said Lasso, who was beaming despite losing.

CONGRESS BATTLE

The other six opposition candidates included former Correa ally Alberto Acosta, former President Lucio Gutierrez and banana magnate and five-time presidential candidate Alvaro Noboa.

Pollsters say some of them focused their campaigns too much on attacking Correa and failed to put forward concrete proposals to entice voters.

Ecuadoreans also chose a new Congress on Sunday.

The Alianza Pais party was expected to win a majority in the legislature, which would let Correa push ahead with controversial reforms, including a media law and changes to mining legislation, without having to negotiate with rivals.

The results of the vote for Congress are not expected to be known for several days, but Correa said he was confident.

"I think we are going to get a majority and we will manage that majority with great responsibility," he told Latin America's Telesur TV network, set up by Chavez and his allies as an alternative to established media.

Correa never shies away from a fight, be it with international bondholders, oil companies, local bankers, the Catholic Church or media that criticize his policies.

He vowed on Sunday to expand state regulations over media groups he has called "dogs" and "hired assassins."

"One of the things we have to fix is an unethical and unscrupulous press that wants to judge, legislate and govern," Correa said. "That goes against the rule of law and we will not allow it."

His criticism of the U.S. "empire" and his clashes with foreign investors and the World Bank have fueled Correa's popularity as a strong-minded leader who stands up to foreign powers that many say meddled in Ecuador's affairs for decades.

He took the global limelight last year when he granted asylum to WikiLeaks' founder Julian Assange. Critics say he did it to brush off accusations that he is curbing freedom of expression in Ecuador.

(Additional reporting by Jose Llangari and Eduardo Garcia in Quito and Yuri Garcia in Guayaquil; Editing by Kieran Murray, Andrew Cawthorne and Eric Beech)

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Nintendo’s future called into question as Wii U sales plummet

Nintendo (NTDOY) now faces the very real prospect of having an absolute flop on its hands. As Microsoft (MSFT) moved an estimated 281,000 Xbox 360 consoles in the U.S. in January to take the top spot for the 25th consecutive month, Gamasutra reports that Nintendo sold “well under” 100,000 Wii U consoles last month. The site estimates that sales may have fallen between 45,000 and 59,000 units in January, which could mark the worst month for a Nintendo console since before the original Wii launched.

[More from BGR: Verizon’s Galaxy S IV detailed in purported benchmarks]

This is not the first sign of trouble for Nintendo’s Wii U. The new console has not been well received in the U.S., U.K. or even in Japan, and Nintendo recently lowered its first-quarter outlook as a result. With Sony (SNE) set to unveil its next-generation PlayStation 4 next week and Microsoft prepping a new Xbox console, the door is quickly closing on Nintendo’s latest effort.

[More from BGR: Samsung to reportedly take on BlackBerry with new enterprise platform]

Relief will likely not come anytime soon for Nintendo. New video game consoles take years to develop and typically remain on the market for the better part of a decade. What’s more, Nintendo has said it will not lower the Wii U’s retail price — the company is already selling the Wii U at a loss — so it remains unclear how Nintendo plans to reverse its current slump and bolster sales.

Will the Wii U be Nintendo’s last home video game console? The possibility is looking more real with each passing month.

This article was originally published on BGR.com

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Beyoncé's Life Is But a Dream: The Best Moments

TV Watch

By Aaron Parsley

02/16/2013 at 11:05 PM EST

I am ... still singing!

Beyoncé's HBO documentary, Life Is But a Dream, aired Saturday night and it was a 90-minute whirlwind of music, dance and emotion. And though the singer, 31, has been everywhere recently (the Inauguration, the Super Bowl halftime show, Oprah's Next Chapter), the film was full of new and exciting moments. Here are my favorites:

Baby Bey: A home movie of Beyoncé as a little girl playing with bees made my jaw drop. The scene seems to prove what her fans believe: that she was born to be a superstar known as Queen B. I also loved seeing her singing – and being a typical, giggling teenager – with her sister Solange and Kelly Rowland.

The Heartbreak: From her frank discussion of firing her father as a manager to hearing "the saddest song" she's ever written after having miscarriage, the film – which Beyoncé produced and directed herself – had raw, emotional moments.

Mrs. Carter: Life is like a dream for Beyoncé and husband Jay-Z, who surprisingly shared intimate moments together – giddy over her pregnancy, singing Coldplay's "Yellow" to each other, enjoying solitude on a boat in an undisclosed, exotic location. You could feel the love when she toasted him on his birthday.

Blue Ivy: How cute is she?! When Beyoncé and Jay's baby girl, who turned 1 in January, appeared on the screen at the premiere of Life Is But a Dream at New York's Ziegfeld Theater, the crowd gasped and then let out a collective "aww." And I jammed my fingers on the TV screen the first time I watched, trying to pinch those cheeks. Seeing Beyoncé at home with a baby on her hip was a powerful reminder that the fierce superstar is human afterall.

The Music: Of course! Seeing her sing "Listen" with a gorgeously altered ending in a car convinced me of one thing: Beyoncé is definitely not human! I also loved seeing everything that went into her epic Billboard Music Awards performance of "Run the World (Girls)." I just wish I could do that dance. And is it me or does "Resentment" get grittier and angrier every time she performs it?

Praise Beysus and long live the Queen B!

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UN warns risk of hepatitis E in S. Sudan grows

GENEVA (AP) — The United Nations says an outbreak of hepatitis E has killed 111 refugees in camps in South Sudan since July, and has become endemic in the region.

U.N. refugee agency spokesman Adrian Edwards says the influx of people to the camps from neighboring Sudan is believed to be one of the factors in the rapid spread of the contagious, life-threatening inflammatory viral disease of the liver.

Edwards said Friday that the camps have been hit by 6,017 cases of hepatitis E, which is spread through contaminated food and water.

He says the largest number of cases and suspected cases is in the Yusuf Batil camp in Upper Nile state, which houses 37,229 refugees fleeing fighting between rebels and the Sudanese government.

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After decent rally, perhaps time for a pause

NEW YORK (Reuters) - Stocks could struggle to extend their seven-week winning streak as the quarterly earnings period draws to a close and the market bumps into strong technical resistance.

Many analysts say the market could spend the next few weeks consolidating gains that have lifted the benchmark Standard & Poor's 500 <.spx> by 6.6 percent since the start of the year.

The S&P 500 ended up 0.1 percent for the week, recovering from a late sell-off on Friday after a Bloomberg report about slow February sales at Wal-Mart triggered a slide in the retailer's shares. It was the index's seventh week of gains.

Odds of a pullback are increasing, with the market in slightly overbought territory, said Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston.

"I do suspect the closing of the earnings season will lead to at least a pause and possibly a pullback," Zaro said. The S&P 500 could shave 3 to 5 percent between now and early April, he said.

Fourth-quarter earnings have mostly beaten expectations. Year-over-year profit growth for S&P 500 companies is now estimated at 5.6 percent, up from a January 1 forecast for 2.9 percent growth, and 70 percent of companies are exceeding analyst profit expectations, above the 62 percent long-term average, according to Thomson Reuters data.

On Thursday, Wal-Mart, the world's largest retailer, is due to report results, unofficially closing out the earnings period. Investors will be keen to see its quarterly numbers, especially after the Friday's news report that rattled investors.

The S&P 500 has gained 4.3 percent since Alcoa kicked off the earnings season on January 8.

The approaching March 1 deadline for across-the-board federal budget cuts unless Congress reaches a compromise adds another reason for caution, especially with recent economic data indicating the recovery remains bumpy.

Manufacturing output fell 0.4 percent last month, the Federal Reserve said on Friday, but production in November and December was much stronger than previously thought.

TESTING RESISTANCE

The S&P 500 has been trading near five-year highs, and it notched its highest level since November 2007 this week. But the gains have pushed the benchmark index almost as far as it is likely to go in the near term, with strong resistance hovering around 1,525 and 1,540, one analyst said.

As a result, the index is set to move sideways, said Dave Chojnacki, market technician at Street One Financial in Huntington Valley, Pennsylvania. "We just don't have the volume or the catalyst right now" to go above those levels, he said.

At the same time, other analysts say, the market has not shown significant signs of slowing, including a break below 15- and 30-day moving averages.

Such moves would be needed to show that momentum is slowing or that the market is at risk of a correction, said Todd Salamone, director of research for Schaeffer's Investment Research in Cincinnati, Ohio. The S&P 500's 14-day moving average is at 1,511 while the 30-day is at 1,494. The index closed Friday at 1,519.

Recent M&A activity, including news this week of a merger between American Airlines and US Airways Group , helped provide some strength for the market this week and optimism that more deals may be on the way.

In the coming days, the market will focus on minutes from the latest Federal Reserve meeting, due to be released on Wednesday, which could provide support if they suggest the Fed will remain on its current course of aggressive monetary easing.

The Fed minutes released in January spooked markets a bit when they revealed that some Fed officials thought it would be appropriate to consider ending asset purchases later in 2013. U.S. Treasury yields rose on that news, though market worries about a near-term end to quantitative easing have since faded.

Among other companies expected to report earnings next week are Nordstrom , Hewlett-Packard and Marriott International

(Reporting By Caroline Valetkevitch; Editing by Leslie Adler)

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Bomb kills 64 in Pakistan's Quetta

QUETTA, Pakistan (Reuters) - Sixty-four people including school children died on Saturday in a bomb attack carried out by extremists from Pakistan's Sunni Muslim majority, police said.

A spokesman for Lashkar-e-Jhangvi, a Sunni group, claimed responsibility for the bomb in Quetta, which caused casualties in the town's main bazaar, a school and a computer center. Police said most of the victims were Shi'ites.

Burned school bags and books were strewn around.

"The explosion was caused by an improvised explosive device fitted to a motorcycle," said Wazir Khan Nasir, deputy inspector general of police in Quetta.

"This is a continuation of terrorism against Shi'ites."

"I saw many bodies of women and children," said an eyewitness at a hospital. "At least a dozen people were burned to death by the blast."

Most Western intelligence agencies have regarded the Pakistani Taliban and al Qaeda as the gravest threat to nuclear-armed Pakistan, a strategic U.S. ally.

But Pakistani law enforcement officials say Lashkar-e-Jhangvi has become a formidable force.

TENSIONS

Last month the group said it carried out a bombing in Quetta that killed nearly 100 people, one of Pakistan's worst sectarian attacks. Thousands of Shi'ites protested in several cities after that attack.

Pakistani intelligence officials say extremist groups, led by Lashkar-e-Jhangvi, have escalated their bombings and shootings of Shi'ites to trigger violence that would pave the way for a Sunni theocracy in U.S.-allied Pakistan.

More than 400 Shi'ites were killed in Pakistan last year, many by hitmen or bombs, and the perpetrators are almost never caught. Some hardline Shi'ite groups have hit back by killing Sunni clerics.

The growing sectarian violence has hurt the credibility of the government, which has already faced criticism ahead of elections due in May for its inability to tackle corruption and economic stagnation.

The schism between Sunnis and Shi'ites developed after the Prophet Muhammad died in 632 when his followers could not agree on a successor.

Emotions over the issue are highly potent even today, pushing some countries, including Iraq five years ago, to the brink of civil war.

Pakistan is nowhere near that stage but officials worry that Sunni extremist groups have succeeded in dramatically ratcheting up tensions and provoking revenge attacks in their bid to destabilize the country.

(Reporting by Jibran Ahmed; Writing by Michael Georgy; Editing by Stephen Powell)

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Electronic Arts, Zynga settle competing lawsuits

(Reuters) – The video game publisher Electronic Arts Inc and social gaming company Zynga Inc have agreed to settle competing lawsuits over alleged copyright violations and the recruiting of employees.

Terms of the settlement were not disclosed, but both companies agreed to permanently drop claims they had raised in litigation begun last August in San Francisco federal court.

Electronic Arts had alleged that Zynga’s new game “The Ville” ripped off EA’s “The Sims Social,” which had been launched the prior August and at one point become Facebook’s second most popular game ahead of Zynga’s “FarmVille.”

It said Zynga was able to clone “The Sims Social” in part with the help of executives it had hired away from Electronic Arts, and who had access to critical information on how that game was developed.

Six weeks later, Zynga countersued, accusing Electronic Arts of trying improperly to stop employees from switching companies. Zynga said this violated a 2011 agreement between the companies over employee solicitations.

In separate emailed statements on Friday, Electronic Arts spokesman John Reseburg and Zynga spokeswoman Kelly Kunz said: “EA and Zynga have resolved their respective claims and have reached a settlement of their litigation in the Northern District of California.”

Silicon Valley companies compete intensely to attract talented employees, but sometimes agree to refrain from poaching each other’s workers. In 2010, several companies agreed with U.S. antitrust authorities to stop entering such agreements.

Zynga is based in San Francisco, and Electronic Arts is about 25 miles south in Redwood City, California.

In October, Zynga said it would significantly scale back its investment in “The Ville” as part of a cost-cutting plan that included the phasing out of 13 older titles.

The company on February 5 reported a $ 6.9 million adjusted fourth-quarter profit, surprising analysts who expected a loss, but posted a net loss of $ 209.5 million for all of 2012.

In afternoon trading on the Nasdaq, shares of Electronic Arts were down 20 cents at $ 16.95, and shares of Zynga were down 6 cents at $ 3.19.

The case is Electronic Arts Inc v. Zynga Inc, U.S. District Court, Northern District of California, No. 12-04099.

(Reporting by Jonathan Stempel in New York; Editing by Gerald E. McCormick, Gary Hill)

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Molly Sims: I Nursed a Little Vampire!

Mom & Babies
Celebrity Baby Blog

02/15/2013 at 01:00 PM ET

Following the birth of her baby boy, Molly Sims was ready to sink her teeth into breastfeeding.

The only problem? Her son Brooks Alan had beaten her to it.

“Early on in the hospital, they really want you to breastfeed, so I’m trying everything,” the model mama, 39, shared during a Wednesday appearance on Anderson Live.

“And I’m like, ‘Gosh, this really, really hurts.’ And they’re like, ‘Oh, we know.’”

Determined to find the root of the pain, Sims went searching in her newborn’s mouth — and was shocked at her discovery.

“I’m like, ‘Is there any way a baby could be born with a tooth?’” she recalls. “And they went, ‘Oh sweetie, I know you’re a model, but … babies aren’t born with teeth!’”

She continues: “Come to find out, my baby was born with a tooth!”

Courtesy ANDERSON LIVE

Despite countless attempts to successfully nurse — “I did nipple shields, nipple guards, supplemental nursing system, it was horrible,” the new mom says — Sims eventually decided to call it quits.

“He was literally like a vampire on me for three months — it was unbelievable,” she says with a laugh. “Cut to I’m not breastfeeding and I’m proud of it.”

Now Brooks, 7 months, has moved on to other milestones — including crawling — and is already taking after his dad, Scott Stuber.

“He has the hairline of my husband. It’s like an Eddie Munster kind of hairline. It’s not so attractive, but [he'll] end up growing into it,” Sims says.

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States' choices set up national health experiment

WASHINGTON (AP) — President Barack Obama's health care overhaul is unfolding as a national experiment with American consumers as the guinea pigs: Who will do a better job getting uninsured people covered, the states or the feds?

The nation is about evenly split between states that decided by Friday's deadline they want a say in running new insurance markets and states that are defaulting to federal control because they don't want to participate in "Obamacare." That choice was left to state governments under the law: Establish the market or Washington will.

With some exceptions, states led by Democrats opted to set up their own markets, called exchanges, and Republican-led states declined.

Only months from the official launch, exchanges are supposed to make the mind-boggling task of buying health insurance more like shopping on Amazon.com or Travelocity. Millions of people who don't have employer coverage will flock to the new markets. Middle-class consumers will be able to buy private insurance, with government help to pay the premiums in most cases. Low-income people will be steered to safety net programs like Medicaid.

"It's an experiment between the feds and the states, and among the states themselves," said Robert Krughoff, president of Consumers' Checkbook, a nonprofit ratings group that has devised an online tool used by many federal workers to pick their health plans. Krughoff is skeptical that either the feds or the states have solved the technological challenge of making the purchase of health insurance as easy as selecting a travel-and-hotel package.

Whether or not the bugs get worked out, consumers will be able to start signing up Oct. 1 for coverage that takes effect Jan. 1. That's also when two other major provisions of the law kick in: the mandate that almost all Americans carry health insurance, and the rule that says insurers can no longer turn away people in poor health.

Barring last-minute switches that may not be revealed until next week, 23 states plus Washington, D.C., have opted to run their own markets or partner with the Obama administration to do so.

Twenty-six states are defaulting to the feds. But in several of those, Republican governors are trying to carve out some kind of role by negotiating with federal Health and Human Services Secretary Kathleen Sebelius. Utah's status is unclear. It received initial federal approval to run its own market, but appears to be reconsidering.

"It's healthy for the states to have various choices," said Ben Nelson, CEO of the National Association of Insurance Commissioners. "And there's no barrier to taking somebody else's ideas and making them work in your situation." A former U.S. senator from Nebraska, Nelson was one of several conservative Democrats who provided crucial votes to pass the overhaul.

States setting up their own exchanges are already taking different paths. Some will operate their markets much like major employers run their health plans, as "active purchasers" offering a limited choice of insurance carriers to drive better bargains. Others will open their markets to all insurers that meet basic standards, and let consumers decide.

Obama's Affordable Care Act remains politically divisive, but state insurance exchanges enjoy broad public support. Setting up a new market was central to former Republican presidential candidate Mitt Romney's health care overhaul as governor of Massachusetts. There, it's known as the Health Connector.

A recent AP poll found that Americans prefer to have states run the new markets by 63 percent to 32 percent. Among conservatives the margin was nearly 4-1 in favor of state control. But with some exceptions, including Idaho, Nevada and New Mexico, Republican-led states are maintaining a hands-off posture, meaning the federal government will step in.

"There is a sense of irony that it's the more conservative states" yielding to federal control, said Sandy Praeger, the Republican insurance commissioner in Kansas, a state declining to run its own exchange. First, she said, the law's opponents "put their money on the Supreme Court, then on the election. Now that it's a reality, we may see some movement."

They're not budging in Austin. "Texas is not interested in being a subcontractor to Obamacare," said Lucy Nashed, spokeswoman for Gov. Rick Perry, who remains opposed to mandates in the law.

In Kansas, Praeger supported a state-run exchange, but lost the political struggle to Gov. Sam Brownback. She says Kansans will be closely watching what happens in neighboring Colorado, where the state will run the market. She doubts that consumers in her state would relish dealing with a call center on the other side of the country. The federal exchange may have some local window-dressing but it's expected to function as a national program.

Christine Ferguson, director of the Rhode Island Health Benefits Exchange, says she expects to see a big shift to state control in the next few years. "Many of the states have just run out of time for a variety of reasons," said Ferguson. "I'd be surprised if in the longer run every state didn't want to have its own approach."

In some ways, the federal government has a head start on the states. It already operates the Medicare Plan Finder for health insurance and prescription plans that serve seniors, and the Federal Employees Health Benefits Program. Both have many of the features of the new insurance markets.

Administration officials are keeping mum about what the new federal exchange will look like, except that it will open on time and people in all 50 states will have the coverage they're entitled to by law.

Joel Ario, who oversaw planning for the health exchanges in the Obama administration, says "there's a rich dialogue going on" as to what the online shopping experience should look like. "To create a website like Amazon is a very complicated exercise," said Ario, now a consultant with Manatt Health Solutions.

He thinks consumers should be able to get one dollar figure for each plan that totals up all their expected costs for the year, including premiums, deductibles and copayments. Otherwise, scrolling through pages of insurance jargon online will be a sure turn-off.

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