Android extends global smartphone lead: survey

WASHINGTON: Google's Android operating system will power more than two-thirds of smartphones sold worldwide in 2012, and will remain the dominant platform for at least the next four years, a survey showed Tuesday.

The survey by the research firm IDC showed Android will be the platform for 68.3 per cent of smartphones shipped in 2012, far ahead of 18.8 per cent for the iOS platform used on Apple's iPhone.

"IDC forecasts Android to be the clear leader in the smartphone mobile operating system race, thanks in large part to a broad selection of devices from a wide range of partners," the market tracker said.

"Samsung is the leading Android smartphone seller though resurgent smartphone vendors LG Electronics and Sony, both of which cracked the top five smartphone vendors during the third quarter, are not to be overlooked. IDC believes the net result of this will be continued double-digit growth throughout the forecast period."

The report said Android will retain the top position through 2016, when it will have 63.8 per cent of the market in the face of increased competition from Apple, Microsoft's Windows Phone and others.

"Android is expected to stay in front, but we also expect it to be the biggest target for competing operating systems to grab market share," said Ramon Llamas, research manager with IDC.

"At the same time, Windows Phone stands to gain the most market share as its smartphone and carrier partners have gained valuable experience in selling the differentiated experience Windows Phone has to offer."

Llamas said other players jockeying for market share will include Research in Motion's BlackBerry, which releases a new operating system next year, and the open-source Linux system.

BlackBerry, which until a few years ago was the dominant smartphone, will see its market share slide to 4.7 per cent in 2012, according to IDC, and to 4.1 per cent by 2016.

Linux will be used on two per cent of smartphones this year and 1.5 per cent in 2016, it said. Windows will grow from 2.6 per cent this year to 11.4 per cent in 2016, IDC said.

Apple's iOS will remain the clear number two platform but will be "cost prohibitive for some users within many emerging markets," IDC said.

"In order to maintain current growth rates, Apple will need to examine the possibility of offering less expensive models," it said.

The report said the overall worldwide mobile phone market will grow just 1.4 per cent in 2012, the lowest annual growth rate in three years. The total number of devices sold is expected to be around 1.7 billion.

The forecast reflects an estimated 39.5 per cent growth in smartphones, but declines in sales of other kinds of mobile phones.

"Sluggish economic conditions worldwide have cast a pall over the mobile phone market this year," said IDC's Kevin Restivo.

"However, the fourth quarter will be relatively bright due in part to sales of high-profile smartphones, such as the iPhone 5 and Samsung's Galaxy S3, in addition to lower-cost Android-powered smartphones shipped to China and other high-growth emerging markets."

- AFP/fa

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GMR row: India tells Maldives not to take any coercive action

MALE/NEW DELHI: India on Tuesday made it clear to the Maldives that no arbitrary or coercive measure should be taken in the GMR case pending the outcome of the legal proceedings, underlining that any such action would inevitably have adverse consequences for bilateral relations.

This was conveyed by external affairs minister Salman Khurshid when his Maldivian counterpart Abdul Samad Abdullah telephoned him up in the wake of the scrapping of the airport contract to the GMR by the Maldivian government Abdullah had mentioned that his government would not allow relations between India and Maldives to be undermined and that there was consensus on this issue, Syed Akbaruddin, the external affairs ministry spokesperson, told reporters here.

Khurshid reminded his Maldivian counterpart of his earlier discussions and stressed that "the legal processes involved in the GMR case should be permitted to take their own course based on the contractual obligations of the parties involved".

"The Maldivian government should not allow the situation to go out of hand," said the spokesperson while giving details of the telephonic conversation and the message conveyed by Khurshid to Abdullah.

"In this context, it is expected that no arbitrary and coercive measures should be taken pending the outcome of the legal process underway," said the spokesperson.

"Resort to any such actions would inevitably have adverse consequences for relations between India and the Maldives," he added.

In response to another question regarding the volatile situation in the Maldives, the spokesperson said India was concerned over reports from the Maldives about continuing violence and intimidation against elected representatives and expressions of radical sentiments.

"There is need to ensure that the rule of law is upheld and principles and tenets of democracy are maintained. We will continue to monitor the situation closely," he said.

However, the Maldives government has decided to go ahead with its plan to take full control of Male airport after ousting India's GMR. The call by the Maldives foreign minister was aimed at pacifying India, which is deeply upset over the cancellation of the airport contract given to Indian firm GMR.

The Maldives minister explained legal and other reasons behind the cancellation of the project, said official sources.

The sources added that Abdullah sought India's understanding and hoped it will not hurt bilateral ties, said the sources.

Abdullah conveyed to Khurshid that a detailed communication on the GMR issue will be sent to Prime Minister Manmohan Singh.

On his part, Khurshid conveyed India's displeasure at the decision and underlined that the scrapping of the biggest single Indian FDI in the Maldives will negatively impact bilateral trade ties and the larger relationship.

In a move to put pressure on Male, India has put on hold aid to the Maldives after the Maldives government Monday decided to take control of the international airport despite a Singapore court staying the suspension of the contract given to India's GMR-led consortium.

The high court of Singapore suspended the Maldives government's decision last week to terminate the $500 million contract awarded to the consortium for developing the Ibrahim Nasir International Airport at Male.

The Maldives government, however, has chosen to defy the court order.

"We will continue the airport takeover and Inshallah next Saturday onwards MACL (state-controlled Maldives Airport Company Ltd) will be running the airport," Defence minister and acting transport minister Mohamed Nazim told reporters in Male Monday.

Upset at the Maldives government's attitude, India has put on hold $25-million budgetary commitment to Male, said reliable sources Monday. The bilateral ties will be affected, said the sources. The Indian government is also studying the court order and its implications, said the sources.

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CDC says US flu season starts early, could be bad

NEW YORK (AP) — Flu season in the U.S. is off to its earliest start in nearly a decade — and it could be a bad one.

Health officials on Monday said suspected flu cases have jumped in five Southern states, and the primary strain circulating tends to make people sicker than other types. It is particularly hard on the elderly.

"It looks like it's shaping up to be a bad flu season, but only time will tell," said Dr. Thomas Frieden, director of the Centers for Disease Control and Prevention.

The good news is that the nation seems fairly well prepared, Frieden said. More than a third of Americans have been vaccinated, and the vaccine formulated for this year is well-matched to the strains of the virus seen so far, CDC officials said.

Higher-than-normal reports of flu have come in from Alabama, Louisiana, Mississippi, Tennessee and Texas. An uptick like this usually doesn't happen until after Christmas. Flu-related hospitalizations are also rising earlier than usual, and there have already been two deaths in children.

Hospitals and urgent care centers in northern Alabama have been bustling. "Fortunately, the cases have been relatively mild," said Dr. Henry Wang, an emergency medicine physician at the University of Alabama at Birmingham.

Parts of Georgia have seen a boom in traffic, too. It's not clear why the flu is showing up so early, or how long it will stay.

"My advice is: Get the vaccine now," said Dr. James Steinberg, an Emory University infectious diseases specialist in Atlanta.

The last time a conventional flu season started this early was the winter of 2003-04, which proved to be one of the most lethal seasons in the past 35 years, with more than 48,000 deaths. The dominant type of flu back then was the same one seen this year.

One key difference between then and now: In 2003-04, the vaccine was poorly matched to the predominant flu strain. Also, there's more vaccine now, and vaccination rates have risen for the general public and for key groups such as pregnant women and health care workers.

An estimated 112 million Americans have been vaccinated so far, the CDC said. Flu vaccinations are recommended for everyone 6 months or older.

On average, about 24,000 Americans die each flu season, according to the CDC.

Flu usually peaks in midwinter. Symptoms can include fever, cough, runny nose, head and body aches and fatigue. Some people also suffer vomiting and diarrhea, and some develop pneumonia or other severe complications.

A strain of swine flu that hit in 2009 caused a wave of cases in the spring and then again in the early fall. But that was considered a unique type of flu, distinct from the conventional strains that circulate every year.

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Online:

CDC: http://www.cdc.gov/flu/weekly

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Kate Middleton Is Pregnant, in Hospital

Kate Middleton is pregnant.

The most eagerly awaited pregnancy was announced today by St. James Palace on behalf of Middleton and her husband Prince William.

The child, whether boy or girl, will eventually be heir to the British throne according to new legislation awaiting final approval.

The duchess was admitted to King Edward VII Hospital today in central London with hyperemesis gravidarum, an acute morning sickness which requires supplementary hydration and nutrients, the palace said.

Prince William is by his wife's side at the hospital, according to Britain's Press Association.

Click here for photos of Kate through the years.

"As the pregnancy is in its very early stages, Her Royal Highness is expected to stay in hospital for several days and will require a period of rest thereafter," the statement said.

The royal family was clearly delighted with the news.

"Their Royal Highnesses The Duke and Duchess of Cambridge are very pleased to announce that The Duchess of Cambridge is expecting a baby," the palace said in a statement today. "The Queen, The Duke of Edinburgh, The Prince of Wales, The Duchess of Cornwall and Prince Harry and members of both families are delighted with the news."

British Prime Minister David Cameron also reacted to the big news, telling BBC, "It's absolutely wonderful news and I'm sure everyone around the country will be celebrating with them tonight."

The prime minister told BBC that he found out when "I was handed a note in a meeting. And I have to say, it was difficult to keep it a secret."

The baby will be the queen's third great-grandchild.

Jonathan Nackstrand/AFP/Getty Images

Kate Middleton Pregnant, Admitted to Hospital Watch Video

Click here to vote for a royal name for a royal baby.

Robert Lacey, author of the definitive book "Majesty" said, "The British public and indeed the whole world will be delighted for the same, it keeps the monarchy going. The royal wedding brought a magic back to the monarchy and people are fascinated by William and Catherine."

The announcement follows relentless public and media speculation about when Prince William and his wife would have an heir. The guessing game began almost immediately after the couple said, "I do."

Click here for an interactive look at William and Kate's love story.

Tabloids began snapping close-ups of Middleton's stomach for any indication of a baby bump. Baby rumors abounded when the duchess held a baby at a press event and when she declined peanut butter at another event. British physicians are known to warn women against eating peanuts during pregnancy. When the couple got a dog, Lupo, headlines wondered if they were practicing for another addition to the family.

Click here for more on royal heirs around the world.

The palace, which rarely comments on speculation, took the unusual step of saying, "We would be the ones to make the announcement, not Hollywood."

"It is quite strange reading about it, but I try not to let it bother me," Prince William said in an interview with ABC News' Katie Couric in May 2012. "I'm just very keen to have a family and both Catherine and I are looking forward to having a family in the future."

Asked by Couric if there was anything else he wanted to share, he coyly answered, "You won't get anything out of me. Tight lipped."

Due to a dramatic change in the rules of succession, the royal couple's first-born will likely be the heir to the throne, regardless of the baby's gender.

Last year, the heads of 16 Commonwealth countries agreed to a change in the rules of succession so that first-born children of either gender can take the throne. Queen Elizabeth II was only eligible to be monarch because her father had no male children. The British Parliament must still amend existing law to make the succession change official.

"Put simply, if the Duke and Duchess of Cambridge were to have a little girl, that girl would one day be our queen," British Prime Minister David Cameron told reporters in 2011.

Royal babies have typically been born within one year of marriage. Princess Diana gave birth to William just 11 months after her wedding and the queen gave birth to Prince Charles six days before her first wedding anniversary.

Prince William and Kate were married on April 29, 2011.

William, who has long been known for making privacy a priority, will now be faced with the inevitable fascination with his first child. And the scrutiny will doubtless be familiar to him.

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Israel says will stick with settlement plan despite European pressure

JERUSALEM (Reuters) - Israel rejected concerted criticism from Europe on Monday over Prime Minister Benjamin Netanyahu's decision to expand settlement building after the United Nations' de facto recognition of Palestinian statehood.

Britain, France, Spain, Sweden and Denmark summoned the Israeli ambassadors in their capitals to hear appeals for Netanyahu to reverse course and deep disapproval of the plan to erect 3,000 more homes in the occupied West Bank and East Jerusalem.

An official in Netanyahu's office said Israel would not bend. "Israel will continue to stand by its vital interests, even in the face of international pressure, and there will be no change in the decision that was made," the official said.

Angered by the U.N. General Assembly's upgrading on Thursday of the Palestinians' status in the world body from "observer entity" to "non-member state", Israel said the next day it would build the new dwellings for settlers.

Such projects, on land Israel captured in a 1967 war, have routinely drawn world condemnation. Approximately 500,000 Israelis and 2.5 million Palestinians live in the two areas.

In a shift that raised the alarm among Palestinians and in world capitals, Netanyahu's pro-settler government also ordered "preliminary zoning and planning work" for thousands of housing units in areas including the "E1" zone east of Jerusalem.

Such construction in the barren hills of E1 has never been put into motion in the face of opposition from Israel's main ally, the United States. Building in the area could bisect the West Bank, cut off Palestinians from Jerusalem and further dim their hopes for a contiguous state.

The settlement plan, U.N. Secretary-General Ban Ki-moon said, would deal "an almost fatal blow" to a two-state solution to the Israeli-Palestinian conflict.

"We don't want to shift into sanctions mode," French President Francois Hollande told a news conference with Italian Prime Minister Mario Monti. "We are more focused on persuading."

Britain made clear it would not back such Israeli retaliation over the U.N. vote, which Palestinians sought after peace talks collapsed in 2010 over settlement building.

"We deplore the recent Israeli decision to build 3,000 new housing units and unfreeze development in the E1 block," a Foreign Office spokesman said. "We have called on the Israeli government to reverse the decision."

But a spokesman for British Prime Minister David Cameron played down what diplomatic sources said was the possibility of recalling Britain's ambassador in Tel Aviv, saying: "We are not proposing to do anything further at this stage".

France expressed "serious concerns" to the Israeli ambassador, reminding him that settlement building in occupied territories was illegal and an "obstacle" to reviving peace talks with the Palestinians.

A French Foreign Ministry official, responding to reports Paris might bring its Tel Aviv envoy home, said: "There are other ways in which we can express our disapproval."

Ahead of a Netanyahu visit this week, Germany, considered Israel's closest ally in Europe, urged it to refrain from expanding settlements, and Russia said it viewed the Israeli moves with serious concern.

RETALIATION

Israeli Finance Minister Yuval Steinitz said Israel could not have remained indifferent to the Palestinians' unilateral move at the United Nations.

"I want to tell you that those same Europeans and Americans who are now telling us 'naughty, naughty' over our response, understand full-well that we have to respond, and they themselves warned the Palestinian Authority," he said.

Palestinian chief negotiator Saeb Erekat said building in E1 "destroys the two-state solution, (establishing) East Jerusalem as the capital of Palestine and practically ends the peace process and any opportunity to talk about negotiations in the future".

The United States, one of the eight countries to vote alongside Israel against the Palestinian resolution at the General Assembly, has said the settlement plan was counterproductive to the resumption of direct peace talks.

Washington used the same argument in opposing the Palestinian initiative at the United Nations.

In Europe, only the Czech Republic voted against the status upgrade while many countries, including France, backed it. Netanyahu plans to visit Prague this week to express his thanks.

In the Gaza Strip, Sami Abu Zuhri, spokesman for the governing Hamas Islamist movement, called Israeli settlement "an insult to the international community, which should bear responsibility for Israeli violations and attacks on Palestinians".

In another blow to the Palestinian Authority, which exercises limited self-rule in the West Bank, Israel announced on Sunday it was withholding Palestinian tax revenues this month worth about $100 million, arguing the Palestinians owed $200 million to Israeli companies.

"These are not steps towards peace, these are steps towards the extension of the conflict," Spanish Foreign Minister Jose Manuel Garcia-Margallo said.

Only three weeks ago, Netanyahu won strong European and U.S. support for a Gaza offensive that Israel said was aimed at curbing persistent cross-border rocket fire.

Favored by opinion polls to win a January 22 national election, he brushed off the condemnation and complaints at home that he is deepening Israel's diplomatic isolation.

Netanyahu told his cabinet on Sunday that his government "will carry on building in Jerusalem and in all the places on the map of Israel's strategic interests".

But while his housing minister has said the government would soon invite bids from contractors to build 1,000 homes for Israelis in East Jerusalem and more than 1,000 in West Bank settlement blocs, the E1 plan is still in its planning stages.

"No one will build until it is clear what will be done there," the minister, Ariel Attias, said on Sunday.

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

Most world powers consider Israel's settlements to be illegal. Israel cites historical and Biblical links to the West Bank and Jerusalem and regards all of the holy city as its capital, a claim that is not recognized internationally.

(Additional reporting by Crispian Balmer, Dan Williams, Nidal al-Mughrabi in Gaza, Jihan Abdalla in Ramallah, Steve Gutterman in Moscow, Gareth Jones in Berlin, John Irish and Elizabeth Pineau in Paris and Tim Castle in London; writing by Jeffrey Heller; editing by Philippa Fletcher)

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Top accounting firms face charges over China data

WASHINGTON: US market regulators charged the China affiliates of five top accounting firms Monday with violation of securities laws for refusing to provide audit data related to China-based companies.

"The audit materials are being sought as part of SEC investigations into potential wrongdoing by nine China-based companies whose securities are publicly traded in the US," the Securities and Exchange Commission said.

The five firms charged were BDO China Dahua, Deloitte Touche Tohmatsu Certified Public Accountants, Ernst & Young Hua Ming, KPMG Huazhen, and PricewaterhouseCoopers Zhong Tian.

The SEC said they violated the Securities Exchange Act and the Sarbanes-Oxley Act, which requires foreign public accounting firms to provide the SEC upon request with audit work papers involving any company trading on US markets.

SEC investigators have been trying to obtain the data for months from the audit firms but they have refused to cooperate, it said in a statement.

"Only with access to work papers of foreign public accounting firms can the SEC test the quality of the underlying audits and protect investors from the dangers of accounting fraud," said Robert Khuzami, director of the SEC's Division of Enforcement.

"Firms that conduct audits knowing they cannot comply with laws requiring access to these work papers face serious sanctions."

- AFP/fa

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NRHM scam: CBI files chargesheet against Pradeep Shukla

GHAZIABAD: The CBI today filed chargesheet against senior IAS officer Pradeep Shukla in connection with alleged irregularities in upgrading of 89 district hospitals in the state, under National Rural Health Mission scheme, causing a loss of Rs 16 crore to the exchequer.

The agency had received sanction to prosecute Shukla, the then family welfare secretary, on November 30 from the Centre after that a chargesheet was filed before special CBI court today.

Shukla and officials of UP Processing and Construction Cooperative Federation Ltd (PACCFED), including its managing director V K Chowdhary, the then DG of family welfare S P Ram, Moradabad-based businessman Saurabh Jain, and his firms were booked by the agency in January this year.

While remaining accused were chargesheeted in May this year, the charge sheet against Shukla was pending because CBI was awaiting sanction for his prosecution.

The 55-year-old UP-cadre IAS officer, serving as member revenue board, was arrested by the agency in May but was released on bail.

After release, Shukla joined back as member revenue board but the UP government issued orders of him being "deemed suspended".

CBI alleged officials of PACCFED favoured ineligible firms and released payment of Rs 16.93 crore on the basis of forged documents.

In its chargesheet, the agency alleged Shukla along with Ram entered in criminal conspiracy with private firms and gave contract related to upgrading of district hospitals in Uttar Pradesh worth Rs 89 crore on the basis of forged documents.

Out of Rs 16 crore loss caused to exchequer, more than Rs 13 crore was allegedly cornered by Jain, close confidante of former family welfare minister Babu Singh Kushwaha, who used it to bribe public servants and also invested in various companies.

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Explainer: Why was pregnant duchess hospitalized?

LONDON (AP) — While morning sickness in pregnant women is common, the problem the Duchess of Cambridge has been hospitalized with is not.

In a statement Monday, palace officials said she was hospitalized with hyperemesis gravidarum, a potentially dangerous type of morning sickness where vomiting is so severe no food or liquid can be kept down. Palace officials said the duchess was expected to remain hospitalized for several days and would require a period of rest afterwards.

"It's not unusual for pregnant women to get morning sickness, but when it gets to the point where you're dehydrated, losing weight or vomiting so much you begin to build up (toxic) products in your blood, that's a concern," said Dr. Kecia Gaither, director of maternal fetal medicine at Brookdale University and Medical Center in New York.

The condition is thought to affect about one in 50 pregnant women and tends to be more common in young women, women who are pregnant for the first time, those expecting multiple babies and in non-smokers. Gaither said that fewer than one percent of women with the condition need to be hospitalized.

Doctors aren't sure what causes it but suspect it could be linked to hormonal changes or nutritional problems.

Women admitted to the hospital with hyperemesis gravidarum are usually treated with nutritional supplements and given fluids intravenously to treat dehydration. Dr. Dagni Rajasingam, a spokeswoman for the Royal College of Obstetricians and Gynaecologists, said most women hospitalized with the condition are discharged within several days.

"It depends on how well the woman is keeping fluids down," she said.

If the problem is recognized and treated early, doctors say there are no long-term effects for either the mother or the child. Left untreated, the mother could be at risk of developing neurological problems — including seizures — or risk delivering the baby early.

Gaither said the condition usually subsides by the second trimester.

"The rest of the pregnancy could be entirely uneventful," she said, adding that pregnant women treated for the condition are usually advised to avoid fatty foods that could aggravate the problem.

Gaither said the duchess would probably be able to meet her usual royal obligations by her second trimester.

"She should be able to meet all her public obligations soon," she said, advising her to take her vitamins and ensure there are no other underlying health problems. "She should just be looking forward to having a healthy little plump person."

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

(ABC News)

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

(More from Sunday’s show HERE.)

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

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

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

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

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

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

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

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

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

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

Like “This Week” on Facebook here. You can also follow the show on Twitter here.

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

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Islamist protest shuts down Egypt's top court

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

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

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

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

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

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

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

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

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

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

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

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

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

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

STOCK MARKET RALLIES

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

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

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

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

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

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

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

Mursi's opponents warn of deeper polarization ahead.

"LET EVERYONE HAVE THEIR SAY"

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

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

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

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

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

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

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

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

(Writing by Tom Perry; Editing by Alistair Lyon)

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