Egypt feelers open tiny window to Gaza truce

GAZA (Reuters) - Egypt opened a tiny window to emergency peace diplomacy in Gaza on Friday, but hopes for even a brief ceasefire while its prime minister was inside the bombarded enclave to talk to leaders of the Islamist Hamas movement were immediately dashed.

Prime Minister Hisham Kandil visited the Gaza Strip on Friday officially to show solidarity with the Palestinian people after two days of relentless attacks by Israeli warplanes determined to end militant rocket fire at Israel.

But a Palestinian official close to Egypt's mediators told Reuters that Kandil's visit, which included members of Cairo's secret service, "was the beginning of a process to explore the possibility of reaching a truce. It is early to speak of any details or of how things will evolve".

Israel undertook to cease fire during the visit if Hamas did too. But it said rockets fired from Gaza had hit several sites in southern Israel as he was in the enclave.

According to a Hamas source, the Israeli air force launched an attack on the house of Hamas's commander for southern Gaza which resulted in the death of two civilians, one a child.

But Israel's military strongly denied carrying out any attacks from the time Kandil entered Gaza, and accused Hamas of violating the three-hour deal. "Israel has not attacked in Gaza for the past two hours," a spokesman said.

"Even though about 50 rockets have fallen in Israel over the past two hours, we chose not to attack in Gaza due to the visit of the Egyptian prime minister. Hamas is lying and reporting otherwise," the army said in a Twitter message.

Kandil said: "Egypt will spare no effort ... to stop the aggression and to achieve a truce."

At a Gaza hospital he saw the bloodied body of a child. He left the Gaza Strip after meeting with Hamas leader Ismail Haniyeh, the enclave's prime minister.

Palestinian medics said two people were killed in the disputed explosion at the house, one of them a child. It raised the Palestinian death toll since Wednesday to 21. Three Israelis were killed by a rocket on Thursday.

Air raid sirens wailed over Tel Aviv on Thursday evening, sending residents rushing for shelter and two long-range rockets exploded just south of the metropolis. The location of the impacts was not disclosed.

They exploded harmlessly, police said. But they have shaken the 40 percent of Israelis who, until now, lived in safety beyond range of the southern rocket zone.

"Even Prime Minister (Benjamin) Netanyahu was rushed into a reinforced room," said cabinet minister Gilad Eldan.

Israel has started drafting 16,000 reserve troops, in what could be a precursor to invasion.

The 21 Palestinian dead include eight militants and 13 civilians, among them seven children and a pregnant woman. A Hamas rocket killed three Israeli civilians a town north of Gaza, men and women in their 30s.

The last Gaza war, a lopsided three-week long Israeli air blitz and ground invasion over the New Year period of 2008-2009 aimed at ending repeated rocket attacks, left more than 1,400 Palestinians dead, mostly civilian, and killed 13 Israelis.

THE MESSAGE

"If Hamas says it understands the message and commits to a long ceasefire, via the Egyptians or anyone else, this is what we want. We want quiet in the south and a stronger deterrence," Israeli vice prime minister Moshe Yaalon said.

"The Egyptians have been a pipeline for passing messages. Hamas always turns (to them) to request a ceasefire. We are in contact with the Egyptian defense ministry. And it could be a channel in which a ceasefire is reached," he told Israeli radio.

At the same time, there were signs of possible preparations for a ground assault on Gaza. In pre-dawn strikes, warplanes bombed open land along the border zone with Israel, in what could be a softening-up stage to clear the way for tanks.

Self-propelled heavy artillery was seen near the border.

The United States has asked countries that have contact with Hamas to urge the Islamist movement to stop its recent rocket attacks from Gaza, a White House adviser said.

"We've ... urged those that have a degree of influence with Hamas, such as Turkey and Egypt and some of our European partners, to use that influence to urge Hamas to de-escalate," Ben Rhodes, deputy national security adviser, said in a conference call with reporters.

U.S. Defense Secretary Leon Panetta said in an interview with Voice of America: "I understand the reasons Israel is doing what they're doing. They've been the target of missiles coming in from Gaza ... ."

EGYPT ON THE SPOT

The Gaza conflagration has stoked the flames of a Middle East ablaze with two years of Arab revolution and a civil war in Syria that threatens to engulf the whole region.

Hamas refuses to recognize Israel's right to exist. By contrast, Palestinian President Mahmoud Abbas, who rules in the nearby West Bank, does recognize Israel, but peace talks between the two sides have been frozen since 2010.

Abbas's supporters say they will push ahead with their plan to become an "observer state" rather than a mere "entity" at the United Nations later this month.

Despite fierce opposition from both Israel and the United States, they look certain to win the vote in the General Assembly, where they have a built a majority of supporters.

Egypt's new Islamist president, Mohamed Mursi, viewed by Hamas as a protector, led a chorus of denunciation of the Israeli strikes by allies of the Palestinians.

Mursi faces domestic pressure to act tough. But Egypt gets $1.3 billion a year in U.S. military aid and looks to Washington for help with its ailing economy, constraining Mursi despite his need to show Egyptians that his policies differ from those of his U.S.-backed predecessor, Hosni Mubarak.

Hamas leader Ismail Haniyeh on Thursday urged Egypt to do more to help the Palestinians.

"We call upon the brothers in Egypt to take the measures that will deter this enemy," the Hamas prime minister said.

The appeal poses a test of Mursi's commitment to Egypt's 1979 peace treaty with Israel, which the West views as the bedrock of Middle East peace.

The Muslim Brotherhood, which brought Mursi to power in an election after the downfall of pro-Western Hosni Mubarak, has called for a "Day of Rage" in Arab capitals on Friday. The Brotherhood is seen as the spiritual mentor of Hamas.

The Israel Defence Forces (IDF) said they had targeted over 450 "terror activity sites" in the Gaza Strip since Operation Pillar of Defence began with the assassination of Hamas' top military commander on Wednesday by an Israeli missile.

Some 150 medium range rocket launching sites and ammunition dumps were targeted overnight, the IDF said.

"The sites that were targeted were positively identified by precise intelligence over the course of months," it said. "The Gaza strip has been turned into a frontal base for Iran, forcing Israeli citizens to live under unbearable circumstances."

Israeli bombing has not yet reached the saturation level seen before it last invaded Gaza in the first days of 2009, when armored bulldozers and tanks flattened whole districts of the crowded enclave to make way for fire bases and open routes for infantry.

(Additional reporting by Ori Lewis, Ari Rabinovitch, Jeffrey Heller and Crispian Balmer in Jerusalem; writing by Douglas Hamilton; editing by Philippa Fletcher)

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The X Factor Reveals Its Top 12

TV Watch

The X Factor

11/15/2012 at 11:00 PM EST

Demi Lovato and Simon Cowell

Double elimination time on The X Factor!

The top 12 performed songs by divas the night before – and then faced a night of diva-worthy drama on Thursday's show. And it was a particularly tough night for the young adults' coach, Demi Lovato, after the outcome of the viewers' votes were revealed.

Keep reading for all the results ...

Early in the hour, hosts Mario Lopez and Khloé Kardashian announced the act with the lowest number of votes was Simon Cowell's hip-hop group Lyric 145, who performed a mash-up of Queen's "We Will Rock You" and Katy Perry's "E.T." on Wednesday.

"We didn't get the opportunity to show what we really had," frontwoman Lyric Da Queen said. "We hard original lyrics ... But we're just taking the good with the bad right now."

Nine acts were then declared safe, leaving two to sing for survival – and they were both from Demi's team: Jennel Garcia and Paige Thomas.

Jennel performed an emotional rendition of Hoobastank's "The Reason," and Paige sang Coldplay's "Paradise."

Then the judges had to vote for the act they wanted to send home.

"I'm shocked that either of them are at the bottom," L.A. Reid said. He voted to send home Jennel. Britney followed his lead. Simon refused to say his choice and forced Demi to go first. "The act that I'm going to send home is Paige," she said. It was up to Simon to avoid a tie – and he picked Jennel.

So, Demi was the only one to reject Paige and she'll have to work with her again next week. Awkward!

"You're so unbelievably talented and you have a future ahead of you so I'm not worried," Demi told Jennel. "I love you and I really, really believe in you."

And then the co-hosts announced the ranking of the top 10 based on who got the most votes:

10. Paige Thomas
9. Arin Ray
8. Beatrice Miller
7. Diamond White
6. Fifth Harmony
5. CeCe Frey
4. Emblem3
3. Vino Alan
2. Carly Rose Sonenclar
1. Tate Stevens

The show's only country singer does it again!

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Diabetes rates rocket in Oklahoma, South

NEW YORK (AP) — The nation's diabetes problem is getting worse, and the biggest jump over 15 years was in Oklahoma, according to a new federal report issued Thursday.

The diabetes rate in Oklahoma more than tripled, and Kentucky, Georgia and Alabama also saw dramatic increases since 1995, the study showed.

The South's growing weight problem is the main explanation, said Linda Geiss, lead author of the report by the Centers for Disease Control and Prevention study.

"The rise in diabetes has really gone hand in hand with the rise in obesity," she said.

Bolstering the numbers is the fact that more people with diabetes are living longer because better treatments are available.

The disease exploded in the United States in the last 50 years, with the vast majority from obesity-related Type 2 diabetes. In 1958, fewer than 1 in 100 Americans had been diagnosed with diabetes. In 2010, it was about 1 in 14.

Most of the increase has happened since 1990.

Diabetes is a disease in which the body has trouble processing sugar; it's the nation's seventh leading cause of death. Complications include poor circulation, heart and kidney problems and nerve damage.

The new study is the CDC's first in more than a decade to look at how the nationwide boom has played out in different states.

It's based on telephone surveys of at least 1,000 adults in each state in 1995 and 2010. Participants were asked if a doctor had ever told them they have diabetes.

Not surprisingly, Mississippi — the state with the largest proportion of residents who are obese — has the highest diabetes rate. Nearly 12 percent of Mississippians say they have diabetes, compared to the national average of 7 percent.

But the most dramatic increases in diabetes occurred largely elsewhere in the South and in the Southwest, where rates tripled or more than doubled. Oklahoma's rate rose to about 10 percent, Kentucky went to more than 9 percent, Georgia to 10 percent and Alabama surpassed 11 percent.

An official with Oklahoma State Department of Health said the solution is healthier eating, more exercise and no smoking.

"And that's it in a nutshell," said Rita Reeves, diabetes prevention coordinator.

Several Northern states saw rates more than double, too, including Washington, Idaho, Montana, Wyoming, South Dakota, Minnesota, Missouri, Ohio and Maine.

The study was published in CDC's Morbidity and Mortality Weekly Report.

___

Associated Press writer Ken Miller in Oklahoma City contributed to this report.

___

Online:

CDC report: http://tinyurl.com/cdcdiabetesreport

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Banks seen shrinking for good as lay-offs near 160,000

LONDON (Reuters) - Major banks have announced some 160,000 job cuts since early last year and with more lay-offs to come as the industry restructures, many will leave the shrinking sector for good as redundancies outpace new hires by roughly two-to-one.

A Reuters analysis of job cuts announced by 29 major banks showed the lay-offs were much bigger in Europe than in Asia or the United States. That is a particular blow to Britain where the finance industry makes up roughly 10 percent of the economy.

The tally of nearly 160,000 job cut plans, meanwhile, is likely to be a conservative estimate as smaller banks and brokers are also cutting staff or shutting up shop, and bigger banks have not always disclosed target numbers of lay-offs.

The tally also does not include reports of 6,000 job cuts to come at Commerzbank, for example, which the German group would not confirm last week.

Well-paid investment bankers are bearing the brunt of cost cuts as deals dry up and trading income falls. That is particularly the case in some activities such as stock trading, where low volumes and thin margins are squeezing banks.

"When I let go tons of people in cash equities this year, I knew most would be finished in this business. It is pretty dead. Some will just have to find something completely different to do," said one top executive at an international bank in London, on condition of anonymity.

The job cuts eat into tax revenues usually reaped from the sector at a time when the global economic recovery is slowing.

This year's tax income from the industry in Britain could drop to around 40 billion pounds ($63 billion) this year, compared to 70 billion in 2007/08, when the financial crisis hit, the Centre for Economics and Business Research (CEBR) think-tank said this week.

The job cuts announced since the beginning of 2011 come on top of job cuts already carried since 2009.

Of the 29 banks, from Europe's biggest bank HSBC to U.S. investment bank Morgan Stanley, just over 83,700 net jobs have been lost since 2009, with 167,200 jobs axed and 83,500 created.

Squeezed by regulations forcing banks to store up more capital in their trading businesses, firms are likely to shrink their investment banking units even further, as they overhaul their models to survive.

"It is structural as well as in response to cycles in the market. The market is still over-broked," said Zaheer Ebrahim at recruiters Kennedy Group.

Swiss bank UBS last month outlined a further 10,000 lay-offs after announcing a plan for 3,500 job cuts last year. It said in October it had decided to exit most of its rates and debt trading units.

Workers in retail banking operation will not be immune to job cuts either, particularly in slowing European economies. In France for instance, bank executives predict retail revenues will falter.

"There are still 300,000 too many full-time employees in the top financial services players in Europe," said Caio Gilberti from the financial services practice of consultancy AlixPartners. Gilberti said cutting those jobs could lop just over 20 billion euros off banks' collective cost base.

LEAVING FOR GOOD

As banks shrink, fewer of those leaving are able to find equivalent jobs at rivals, head-hunters and bankers said, and only a small proportion of those are qualified to move into other jobs at hedge funds, for instance, which look for specialized, skilled traders.

Mergers and acquisition dealmakers are now also coming under pressure, with fees in that area down 21 percent worldwide to $13.9 billion in the first nine months, Thomson Reuters data showed.

More senior investment bankers are among those in the line of fire. Those ranking as managing directors (MDs), who can command base salaries of around 350,000 pounds ($556,000), are becoming costly to keep - and difficult to take on.

"At MD level, it is tougher to accept smaller jobs, and they do not have the same drive and ambition as the young bankers who have just graduated," Ebrahim from the Kennedy Group said.

Many of those that have enjoyed lucrative careers in the fatter years are instead leaving big banks for good, setting up their own small consultancies or different types of businesses.

(Editing by Jon Hemming)

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China names conservative, older leadership

BEIJING (Reuters) - China's ruling Communist Party unveiled an older, conservative leadership line-up on Thursday that appears unlikely to take the drastic action needed to tackle pressing issues like social unrest, environmental degradation and corruption.

New party chief Xi Jinping, premier-in-waiting Li Keqiang and vice-premier in charge of economic affairs Wang Qishan, all named as expected to the elite decision-making Politburo Standing Committee, are considered cautious reformers. The other four members have the reputation of being conservative.

The line-up belied any hopes that Xi would usher in a leadership that would take bold steps to deal with slowing growth in the world's second-biggest economy, or begin to ease the Communist Party's iron grip on the most populous nation.

"We're not going to see any political reform because too many people in the system see it as a slippery slope to extinction," said David Shambaugh, director of the China Policy Program at George Washington University's Elliott School of International Affairs.

"They see it entirely through the prism of the Soviet Union, the Arab Spring and the Colour Revolutions in Central Asia, so they're not going to go there."

Vice-Premier Wang, the most reform-minded in the line-up, has been given the role of fighting widespread graft, identified by both Xi and outgoing President Hu Jintao as the biggest danger faced by the party and the state.

The run-up to the handover has been overshadowed by the party's biggest scandal in decades, with former high-flyer Bo Xilai sacked as party boss of southwestern Chongqing city after his wife was accused of murdering a British businessman.

Bo, who has not been seen in public since early this year, faces possible charges of corruption and abuse of power.

One source said an informal poll was held by over 200 voting members in the party's central committee to choose the seven members of the standing committee from among 10 candidates. Two of them who had strong reform credentials - Guangdong party boss Wang Yang and party organization head Li Yuanchao - failed to make it, along with the lone woman candidate Liu Yandong.

The source, who has ties to the leadership, told Reuters on condition of anonymity that Wang and Li Yuanchao, both allies of Hu, did not make it to the standing committee because party elders felt they were too liberal.

However, all three are in the 25-member Politburo, a group that ranks below the standing committee. It was earlier believed the voting was confined to the Politburo.

"The leadership is divided," said Jean-Pierre Cabestan, a Chinese politics expert at Hong Kong Baptist University, adding however that the new leadership would find it easier to make progress on economic reform rather than political change.

"It's easier for them to move to a new growth model. I think they agree upon that and that won't be the hardest task. But I see a lot of political paralysis."

OLDER

This is an older line-up, with the average age of the standing committee at 63.4 years compared with 62.1 five years ago. Except for Xi and his deputy Li Keqiang, all the others in the standing committee - the innermost circle of power in China's authoritarian government - are 64 or above and will have to retire within five years, when the next party congress is held.

That means the party may just tread water on the most vital reforms until then, although after that, Xi would probably have more independence in choosing his team. The current line-up has been finalized by Xi and Hu, and by former president Jiang Zemin, who has wielded considerable influence in the party after the tumult over the Bo Xilai scandal.

Wang and Li Yuanchao could make it to the standing committee at the next party congress in 2017, perhaps along with so-called "sixth generation" leaders like Inner Mongolia party chief Hu Chunhua.

"To me it smacks of a holding pattern," said Tony Saich, a China politics expert at Harvard's Kennedy School of Government. "I think the understanding is that Wang Yang has a good shot in five years' time."

The standing committee has as expected been cut to seven members from nine, which should ease consensus building and decision making.

There is now no domestic security tsar in the new committee, reflecting fears the position had become too powerful, although top policeman Meng Jianzhu will take charge of the portfolio from within the Politburo.

"SEVERE CHALLENGES"

Besides party chief, Xi was also appointed head of the party's top military body, which gives him two of the three most important posts in the country. He will take over from Hu as president in March.

Jiang, who was Hu's predecessor, did not give up the military post until two years after giving up the party leadership.

Xi said in an address that he understood the people's desire for a better life but warned of severe challenges going forward.

"We are not complacent, and we will never rest on our laurels," he said after introducing the standing committee at the Great Hall of the People in a carefully choreographed ceremony carried live on state television.

"Under the new conditions, our party faces many severe challenges, and there are also many pressing problems within the party that need to be resolved, particularly corruption, being divorced from the people, going through formalities and bureaucracy caused by some party officials."

North Korean-trained economist Zhang Dejiang is expected to head the largely rubber-stamp parliament, while Shanghai party boss Yu Zhengsheng is likely to head parliament's advisory body, according to the order in which their names were announced.

Tianjin party chief Zhang Gaoli and Liu Yunshan, a conservative who has kept domestic media on a tight leash, make up the rest of the group. Zhang should become executive vice premier.

Advocates of reform are pressing Xi to cut back the privileges of state-owned firms, make it easier for rural migrants to settle in cities, fix a fiscal system that encourages local governments to live off land expropriations and, above all, tether the powers of a state that they say risks suffocating growth and fanning discontent.

With growing public anger and unrest over everything from corruption to environmental degradation, there may also be cautious efforts to answer calls for more political reform, though nobody seriously expects a move towards full democracy.

The party could introduce experimental measures to broaden inner-party democracy - in other words, encouraging greater debate within the party - but stability remains a top concern and one-party rule will be safeguarded.

(Additional reporting by Benjamin Kang Lim, Sabrina Mao and Sally Huang; Writing by Ben Blanchard; Editing by Nick Macfie and Raju Gopalakrishnan)

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Hope Solo Weds Jerramy Stevens Amid Assault Allegations?

By Dahvi Shira

11/14/2012 at 06:35 PM EST

Jerramy Stevens and Hope Solo

NFL/Getty; Jeff Vinnick/Getty

One day after former Seattle Seahawks tight end Jerramy Stevens was arrested on suspicion of assaulting his fiancée, U.S. women's soccer team goalkeeper Hope Solo, the pair reportedly tied the knot.

"Confirmed," Sportsradio 950 AM and 102.9 FM radio host Dave Mahler Tweeted on Tuesday. "Jerramy Stevens and Hope Solo were married tonight. Events of yesterday morning didn't change plans."

The pair, who had only been dating for about two months, applied for a marriage license last Thursday. According to court documents, the athletes were arguing over whether to wed in Florida or Washington State.

Stevens, 33, was reportedly released from custody by a Kirkland, Wash., Municipal Court judge on Tuesday after determining there wasn't enough evidence to hold the former football star.

All of the former Dancing with the Stars contestant's social media pages have gone silent since Nov. 6., and calls to her rep have not been returned.

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Booze calories nearly equal soda's for US adults

NEW YORK (AP) — Americans get too many calories from soda. But what about alcohol? It turns out adults get almost as many empty calories from booze as from soft drinks, a government study found.

Soda and other sweetened drinks — the focus of obesity-fighting public health campaigns — are the source of about 6 percent of the calories adults consume, on average. Alcoholic beverages account for about 5 percent, the new study found.

"We've been focusing on sugar-sweetened beverages. This is something new," said Cynthia Ogden, one of the study's authors. She's an epidemiologist with the Centers for Disease Control and Prevention which released its findings Thursday.

The government researchers say the findings deserve attention because, like soda, alcohol contains few nutrients but plenty of calories.

The study is based on interviews with more than 11,000 U.S. adults from 2007 through 2010. Participants were asked extensive questions about what they ate and drank over the previous 24 hours.

The study found:

—On any given day, about one-third of men and one-fifth of women consumed calories from beer, wine or liquor.

—Averaged out to all adults, the average guy drinks 150 calories from alcohol each day, or the equivalent of a can of Budweiser.

—The average woman drinks about 50 calories, or roughly half a glass of wine.

—Men drink mostly beer. For women, there was no clear favorite among alcoholic beverages.

—There was no racial or ethnic difference in average calories consumed from alcoholic beverages. But there was an age difference, with younger adults putting more of it away.

For reference, a 12-ounce can of regular Coca-Cola has 140 calories, slightly less than a same-sized can of regular Bud. A 5-ounce glass of wine is around 100 calories.

In September, New York City approved an unprecedented measure cracking down on giant sodas, those bigger than 16 ounces, or half a liter. It will take effect in March and bans sales of drinks that large at restaurants, cafeterias and concession stands.

Should New York officials now start cracking down on tall-boy beers and monster margaritas?

There are no plans for that, city health department officials said, adding in a statement that while studies show that sugary drinks are "a key driver of the obesity epidemic," alcohol is not.

Health officials should think about enacting policies to limit alcoholic intake, but New York's focus on sodas is appropriate, said Margo Wootan, director of nutrition policy for the Center for Science in the Public Interest, a public health advocacy group.

Soda and sweetened beverages are the bigger problem, especially when it comes to kids — the No. 1 source of calories in the U.S. diet, she said.

"In New York City, it was smart to start with sugary drinks. Let's see how it goes and then think about next steps," she said.

However, she lamented that the Obama administration is planning to exempt alcoholic beverages from proposed federal regulations requiring calorie labeling on restaurant menus.

It could set up a confusing scenario in which, say, a raspberry iced tea may have a calorie count listed, while an alcohol-laden Long Island Iced Tea — with more than four times as many calories — doesn't. "It could give people the wrong idea," she said.

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Online:

CDC report: http://www.cdc.gov/nchs/

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Stock index futures signal higher Wall Street open

LONDON (Reuters) - U.S. stock index futures pointed to a slightly higher open on Wall Street on Thursday on bargain hunting, following losses in the previous session on concerns about the "fiscal cliff".

* Futures for the S&P 500, the Dow Jones and the Nasdaq 100 were up 0.1 to 0.3 percent, a day after U.S. stocks <.dji><.spx><.ixic> fell 1.3 to 1.5 percent.

* Australia's GrainCorp knocked back a $2.8 billion takeover offer from Archer Daniel Midland Co on Thursday, saying the bid undervalued the grains handler after a bumper harvest delivered a record annual net profit.

* Labor Department releases at 0830 EDT first-time claims for jobless benefits for the week ended November 10. Economists forecast a total of 375,000 new filings, compared with 355,000 in the prior week.

* Major companies announcing results on Thursday include Wal-Mart Stores , Dell and Applied Materials .

* New York Federal Reserve releases its Empire State Manufacturing Survey for November at 1330 GMT. Economists expect a reading of -6.70, compared with -6.16 in October.

* Honeywell International Inc and Rockwell Collins Inc are expected to win major contracts to supply systems to Boeing Co for its updated 737 Max jetliner, the Wall Street Journal reported, citing two people familiar with the decisions.

* The Labor Department releases the October Consumer Price Index at 1330 GMT. Economists expect a 0.1 percent rise, compared with a 0.6 percent gain in September.

* Labor leaders at the South Korean unit of General Motors are ratcheting up pressure on GM to reverse course and build its next-generation Chevrolet Cruze model in the country, over fears GM's plans to build it elsewhere will cost Korean jobs.

* Philadelphia Federal Reserve Bank releases November business activity survey at 1500 GMT. Economists forecast a reading of 2.0, versus 5.7 in October.

* U.S. federal regulators temporarily banned JPMorgan Chase & Co's energy trading arm from a segment of the domestic power market, the first time such a penalty has been imposed for making factual misrepresentations during an investigation into market manipulation.

* Diamond Foods shares were down 8.5 percent after the bell on Wednesday following the release of its results.

* China's ruling Communist Party unveiled an older, conservative new leadership line-up on Thursday that appears unlikely to take the drastic action needed to tackle pressing issues like social unrest, environmental degradation and corruption.

* European equities <.fteu3> fell 0.4 percent on Thursday as the rising threat to global growth from the U.S. and Europe prompted investors to reduce their exposure to risky assets.

* U.S. stocks slid on Wednesday with declines accelerating after President Barack Obama set up a drawn-out fight over the fiscal cliff when he stuck to his pledge to raise taxes on the wealthy, and as violence increased in the Middle East.

* Congress has about seven weeks to craft a solution to deal with the year-end expiration of Bush-era tax cuts and the launch of automatic spending cuts. If left unchecked, these would suck about $600 billion out of the economy next year and lead to a new recession, according to the Congressional Budget Office.

(Reporting by Atul Prakash)

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France recognizes new Syria opposition, U.S. hangs back

BEIRUT (Reuters) - France became the first Western power to recognize a fledgling Syrian opposition coalition fully, stepping out beyond the United States, which said on Wednesday the body must first show its clout inside Syria.

Six Gulf Arab states recognized the Syrian National Coalition for Opposition and Revolutionary Forces on Monday and France followed suit the next day, unlike its European partners.

President Francois Hollande's decisive posture on Syria recalled that of his predecessor Nicolas Sarkozy on Libya last year, when France led calls for NATO action to protect civilians which effectively helped Libyan rebels topple Muammar Gaddafi.

The European Union bans arms sales to Syria, but Hollande said the question of arming rebels would be examined when the coalition formed a transitional government. Paris had previously ruled this out, fearing arms could reach Islamist militants.

U.S. Secretary of State Hillary Clinton said the formation of the coalition, which supersedes the widely discredited Syrian National Council as the face of the Syrian opposition, was an important step, but did not offer it full recognition or arms.

"We have long called for this kind of organization. We want to see that momentum maintained," Clinton told reporters in the Australian city of Perth. "As the Syrian opposition takes these steps and demonstrates its effectiveness in advancing the cause of a unified, democratic, pluralistic Syria, we will be prepared to work with them to deliver assistance to the Syrian people."

Suhair al-Atassi, a vice president of the new coalition, said that once it had proved it represents "revolutionary forces" on the ground, there would be no excuse for Western powers not to provide some form of military backing.

"The ball now is in the international community's court," she told Reuters in an interview in Dubai, blaming Western reticence to arm the rebels for the rise of extremism in Syria.

"There is no more excuse to say we are waiting to see how efficient this new body is. They used to put the opposition to the test. Now we put them to the test," she declared.

AIR STRIKE NEAR TURKEY

Syrian insurgents have few weapons against Assad's air force and artillery, which can pound rebel-held territory at will.

A Syrian warplane bombed the town of Ras al-Ain near the Turkish border again on Wednesday, rocking buildings on the frontier and sending up huge plumes of smoke, in the latest of several attacks since rebels captured the town last week.

After 20 months of a conflict that has killed more than 38,000 people, fragmented Syrian opposition groups struck a deal in Qatar on Sunday to form a coalition led by Damascus preacher Mouaz Alkhatib, who has appealed for international recognition.

Arab League and EU foreign ministers meeting in Cairo on Tuesday welcomed the coalition's formation as an important step, but did not recognize it as Syria's sole authority.

France, however, went ahead on its own. Hollande told a news conference in the French capital that Paris recognized the new Syrian national coalition "as the sole legitimate representative of the Syrian people and as future government of a democratic Syria making it possible to bring an end to Bashar al-Assad's regime".

Clinton announced an extra $30 million in aid to those affected by the war in Syria, to be delivered via the United Nations' World Food Programme, which is supplying food to more than a million people in Syria and to 408,000 Syrian refugees.

The United States says it is providing only humanitarian aid and non-lethal assistance to Assad's opponents, it acknowledges that some of its allies are arming rebels - something which Russia says shows Western powers want to decide Syria's future.

Russia and China have blocked any U.N. Security Council action on Syria, prompting Washington and its allies to say they could move beyond U.N. structures for their next steps.

So far, concerted action on Syria has been thwarted by divisions within the opposition, as well as by big power rivalries and a regional divide between Sunni Muslim foes of Assad and his Shi'ite allies in Iran and Lebanon.

An Iranian revolutionary guard general blamed Western, Turkish and Arab meddling for the bloodshed in Syria.

"They must leave the government and people of Syria alone so they can take the necessary decision about the kind of government in Syria," Brigadier-General Massoud Jazayeri was quoted as saying by the semi-official Fars news agency.

China also said Syrians should determine their own future.

"A political transition process guided by the Syrian people should be initiated and pushed forward as soon as possible, to realize an appropriate peaceful and just resolution," Foreign Ministry spokesman Hong Lei said.

(Additional reporting by John Irish in Paris, David Brunnstrom in Perth, Australia, Rania El Gamal in Dubai, Ben Blanchard in Beijing, Yasmine Saleh in Cairo and Jonathon Burch in Ceylanpinar, Turkey; Writing by Alistair Lyon; Editing by Jon Boyle)

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The Voice Sends Two Contestants Home

TV Watch

The Voice

By Julia Haskins

11/13/2012 at 10:20 PM EST

Adam Levine and Christina Aguilera

Christopher Polk/Getty

It was a great night for Teams Cee Lo and Adam on The Voice Tuesday. And though not everyone got good news on elimination night, there were plenty of entertaining performances from the coaches and contestants alike.

To open the night, Christina Aguilera and Green performed the world premiere of "Make the World Move," from her new album Lotus. Guest Jason Aldean also took the stage, and Blake Shelton rocked out with his team to Tom Cochrane's "Life is a Highway."

Green's Trevin Hunte, Nicholas David and Cody Belew came together for a '70s inspired – bell bottoms and all! – performance of the Bee Gee's "Stayin' Alive." But was it a sign of things to come? Keep reading for all the results ...

All of Green's singers as well as Levine's Bryan Keith, Melanie Martinez and Amanda Brown felt the love from viewers at home, and will have another shot at next week's show.

America also saved Aguilera's Sylvia Yacoub and Dez Duron, and Shelton's Cassadee Pope and Terry McDermott.

But without enough votes to keep them in the competition, Team Aguilera's Adriana Louise and Team Blake's Michaela Paige said goodbye.

Aguilera consoled Louise by reminding her that even she didn't win Star Search, but still made it to superstardom. Louise was grateful for all her coach's support. "You believed in me more than I believed in myself," she told Aguilera through tears.

Paige also enjoyed an uplifting experience on The Voice. "If I inspired anyone, that's all I wanted to do," Paige said. "Follow your dreams and believe in your heart." But her coach Shelton isn't too concerned about the aspiring singer's future.

"Her big old mohawk is going to be walking across the stage at the Grammys," he said, "and I can't wait."

Read More..

Report: FDA wanted to close Mass pharmacy in 2003

WASHINGTON (AP) — Nearly a decade ago, federal health inspectors wanted to shut down the pharmacy linked to a recent deadly meningitis outbreak until it cleaned up its operations, according to congressional investigators.

About 440 people have been sickened by contaminated steroid shots distributed by New England Compounding Center, and more than 32 deaths have been reported since the outbreak began in September, according to the Centers for Disease Control and Prevention. That has put the Framingham, Mass.-based pharmacy at the center of congressional scrutiny and calls for greater regulation of compounding pharmacies, which make individualized medications for patients and have long operated in a legal gray area between state and federal laws.

The House Energy and Commerce Committee released a detailed history of NECC's regulatory troubles on Monday, ahead of a meeting Wednesday meeting to examine how the outbreak could have been prevented. The 25-page report summarizes and quotes from FDA and state inspection memos, though the committee declined to release the original documents.

The report shows that after several problematic incidents, Food and Drug Administration officials in 2003 suggested that the compounding pharmacy be "prohibited from manufacturing" until it improved its operations. But FDA regulators deferred to their counterparts in Massachusetts, who ultimately reached an agreement with the pharmacy to settle concerns about the quality of its prescription injections.

The congressional report also shows that in 2003 the FDA considered the company a pharmacy. That's significant because in recent weeks public health officials have charged that NECC was operating more as a manufacturer than a pharmacy, shipping thousands of doses of drugs to all 50 states instead of small batches of drugs to individual patients. Manufacturers are regulated by the FDA and are subject to stricter quality standards than pharmacies.

The report offers the most detailed account yet of the numerous regulatory complaints against the pharmacy, which nearly date back to its founding in 1998. Less than a year later, the company was cited by the state pharmacy board for providing doctors with blank prescription pads with NECC's information. Such promotional items are illegal in Massachusetts and the pharmacy's owner and director, Barry Cadden, received an informal reprimand, according to documents summarized by the committee.

Cadden was subject to several other complaints involving unprofessional conduct in coming years, but first came to the FDA's attention in 2002. Here are some key events from the report highlighting the company's early troubles with state and federal authorities:

__ In March of 2002 the FDA began investigating reports that five patients had become dizzy and short of breath after receiving NECC's compounded betamethasone repository injection, a steroid used to treat joint pain and arthritis that's different from the one linked to the current meningitis outbreak.

FDA inspectors visited NECC on April 9 and said Cadden was initially cooperative in turning over records about production of the drug. But during a second day of inspections, Cadden told officials "that he was no longer willing to provide us with any additional records," according to an FDA report cited by congressional investigators. The inspectors ultimately issued a report citing NECC for poor sterility and record-keeping practices but said that "this FDA investigation could not proceed to any definitive resolution," because of "problems/barriers that were encountered throughout the inspection."

__ In October of 2002, the FDA received new reports that two patients at a Rochester, N.Y., hospital came down with symptoms of bacterial meningitis after receiving a different NECC injection. The steroid, methylprednisolone acetate, is the same injectable linked to the current outbreak and is typically is used to treat back pain. Both patients were treated with antibiotics and eventually recovered, according to FDA documents cited by the committee.

When officials from the FDA and Massachusetts Board of Pharmacy visited NECC later in the month, Cadden said vials of the steroid returned by the hospital had tested negative for bacterial contamination. But when FDA scientists tested samples of the drug collected in New York they found bacterial contamination in four out of 14 vials sampled. It is not entirely clear whether FDA tested the same lot shipped to the Rochester hospital.

__ At a February 2003 meeting between state and federal officials, FDA staff emphasized "the potential for serious public consequences if NECC's compounding practices, in particular those relating to sterile products, are not improved." The agency issued a list of problems uncovered in its inspection to NECC, including a failure to verify if sterile drugs met safety standards.

But the agency decided to let Massachusetts officials take the lead in regulating the company, since pharmacies are typically regulated at the state level. It was decided that "the state would be in a better position to gain compliance or take regulatory action against NECC as necessary," according to a summary of the meeting quoted by investigators.

The FDA recommended the state subject NECC to a consent agreement, which would require the company to pass certain quality tests to continue operating. But congressional investigators say Massachusetts Board of Pharmacy did not take any action until "well over a year later."

__ In October 2004, the board sent a proposed consent agreement to Cadden, which would have included a formal reprimand and a three-year probationary period for the company's registration. The case ended without disciplinary action in 2006, when NECC agreed to a less severe consent decree with the state.

Massachusetts officials indicated Tuesday they are still investigating why NECC escaped the more severe penalty.

"I will not be satisfied until we know the full story behind this decision," the state's interim health commissioner Lauren Smith said in a transcript of her prepared testimony released a day ahead of delivery. Smith is one of several witnesses scheduled to testify Wednesday, including FDA Commissioner Margaret Hamburg.

The committee will also hear from the widow of 78-year-old Eddie C. Lovelace, a longtime circuit court judge in southern Kentucky. Autopsy results confirmed Lovelace received fungus-contaminated steroid injections that led to his death Sept. 17.

Joyce Lovelace will urge lawmakers to work together on legislation to stop future outbreaks caused by compounded drugs, according to a draft of her testimony.

"We now know that New England Compounding Pharmacy, Inc. killed Eddie. I have lost my soulmate and life's partner with whom I worked side by side, day after day for more than fifty years," Lovelace states.

Barry Cadden is also scheduled to appear at the hearing, after lawmakers issued a subpoena to compel him to attend.

The NECC has been closed since early last month, and Massachusetts officials have taken steps to permanently revoke its license. The pharmacy has recalled all the products it makes, including 17,700 single-dose vials of a steroid that tested positive for the fungus tied to the outbreak.

Read More..

Panasonic prepares for "garage sale", to axe 10,000 jobs

KADOMA, Japan (Reuters) - About a fifth of Panasonic Corp's 88 business units are losing money and only half so far meet a target for at least 5 percent operating margin, the Japanese electronics group's finance chief said in an interview on Wednesday.

Hideaki Kawai said the country's biggest commercial employer will axe another 10,000 jobs by end-March as it pares its costs and looks to return to profit. Panasonic shed 36,000 jobs last business year, some through the sale of businesses.

"Our new boss has said businesses must achieve at least a 5 percent operating profit target within three years," Kawai said, referring to Kazuhiro Tsuga, who took over as company president in June. "But we won't wait that long to tackle units that need to be dealt with."

Sell-offs and business closures will start as early as next year, he told Reuters at Panasonic's headquarters in Kadoma, near Osaka in western Japan.

Kawai said Panasonic aims to earn group operating profit of at least 200 billion yen ($2.52 billion) in the year to end-March 2014 - in line with forecasts by analysts polled by Thomson Reuters StarMine.

Panasonic warned last month it will lose close to $10 billion in the year to March as it writes off billions of yen in tax-deferred assets and goodwill related to its mobile phone, solar panel and small lithium battery businesses. It also put aside money to cover the lay-offs and other restructuring measures.

Panasonic plans to offload assets worth 110 billion yen before the end of March, mainly land and buildings in Japan, Kawai said. More assets sales will follow from next business year if needed to bolster cash flow.

Panasonic's 'garage sale' comes ahead of a turnaround plan that Tsuga has promised to unveil by end-March, which will be the start-line to offload underperforming businesses. As financial chief overseeing hundreds of accountants spread across a sprawling conglomerate, Kawai plays a key role in helping Tsuga identify which businesses to close, sell or merge.

Selling businesses and offloading other assets should boost Panasonic's cashflow and help pay for the latest restructuring at a company that began in 1918 making electrical socket extensions and bicycle lamps, and now employs 300,000 workers.

Panasonic shares, already trading near multi-decade lows, slumped by almost a fifth on November 1 on the loss forecast, and Standard & Poor's has cut its credit rating to close to junk. The stock closed up 0.8 percent on Wednesday, ending a four-session losing streak.

Ahead of its earnings revision, Panasonic won $7.6 billion in loan commitments in October from banks including Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group , a funding backstop it says will help it avoid having to seek capital from credit markets.

"Panasonic's debt holders are concerned and it is critical for us to improve our finances," Kawai said. Panasonic this year aims to cut net debt to 770 billion yen from 1.08 trillion yen and will look for another 200 billion yen improvement next business year.

Japan's big banks have also provided TV rival Sharp Corp with $4.6 billion in emergency loans, though the maker of Aquos TVs warned this month it may not survive alone as it expects a $5.6 billion net loss this business year.

Japan's other ailing consumer electronics brand Sony Corp , inventor of the personal music player, lowered its target for its handheld PSP and Vita games consoles, TVs and digital cameras, but did maintain its annual forecast, helped by the sale of a chemicals business.

(Editing by Ian Geoghegan)

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Syria pursues bombardment of rebel-held border town

CEYLANPINAR, Turkey (Reuters) - A Syrian warplane struck homes in the town of Ras al-Ain on Tuesday within sight of the Turkish border, pursuing an aerial bombardment to force out rebels, a Reuters witness and refugees said.

The second day of jet strikes sent Syrians scurrying through the flimsy barbed-wire fence that divides Ras al-Ain from the Turkish settlement of Ceylanpinar, thick plumes of smoke rising above the town.

Medical workers and refugees in Ceylanpinar said bombing on Monday and Tuesday struck residential areas of Ras al-Ain, an Arab and Kurdish town that fell to rebels last week during an advance into Syria's northeast.

A Turkish health official at the hospital in Ceylanpinar said rebel fighters were trying to pull the wounded from under the rubble of a house. Refugees say the fighters are taking cover in homes, many of them abandoned by residents who have fled for Turkey.

"As soon as we heard the jets, we knew they would bomb. It hit another house just 100 meters away," Mohammad Kahan, 49, a Kurd who fled Ras al-Ain with nine members of his family, said of Monday's bombardment.

"This won't stop, Assad will not go until America and Britain come and stop him. Only these two can stop him."

Turkey is reluctant to be drawn into a regional conflict but the proximity of the bombing raids to the border is testing its pledge to defend itself from any violation of its territory or any spillover of violence from Syria.

Opposition activists say at least a dozen people died on Monday, the latest of an estimated 38,000 victims of the 19-month civil war.

REFUGEE CRISIS

The rebel offensive into Syria's mixed Arab and Kurdish northeast has caused some of the biggest refugee movements since the armed revolt against President Bashar al-Assad began in March last year.

It has brought the war back perilously close to Turkish soil.

Rebels fired machineguns mounted on the back of pick-up trucks at the jet as it swooped low over Ras al-Ain, dropping three bombs before returning for a second strike on another part of the town, said a Reuters witness on the Turkish side of the border.

Ambulances with sirens wailing ferried the wounded from the border for treatment in Ceylanpinar.

Turkey has repeatedly fired back in retaliation for stray gunfire and mortar rounds flying across its 900 km (560 mile) border with Syria, and is talking to NATO allies about the possible deployment of Patriot surface-to-air missiles.

Ankara says this would be a defensive step, but it could also be a prelude to enforcing a no-fly zone in Syria to limit the reach of Assad's air power. Western powers have so far been reluctant to take such a step.

In one 24-hour period last week, some 9,000 Syrians fled fighting during a rebel advance into Syria's northeast, swelling to over 120,000 the number of registered refugees in Turkish camps, with winter setting in. Tens of thousands more are unregistered and living in Turkish homes.

(Reporting by Jonathon Burch; Writing by Matt Robinson; Editing by Nick Tattersall)

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Dancing with the Stars: Which Couple Had a Perfect Night?

11/12/2012 at 11:15 PM EST

Tom Bergeron and Brooke Burke Charvet

Adam Larkey/ABC

After performing twice last week, the remaining couples on Dancing with the Stars had double duty again Monday night. Each pair performed a tribute to America's troops as well as a trio dance with an eliminated pro or member of the DWTS troupe.

And it was a night of big scores! But the pressure is on ahead of Tuesday's double elimination.

Keep reading for all the details ...

Melissa Rycroft and Tony Dovolani furthered their lead after a night of perfect dancing. In the first round, they performed a quickstep that earned a standing ovation from the audience and 30 points from the judges. "It was like watching Ann Miller and Gene Kelly," Bruno Tonioli said. "It was as good as the best America has ever produced." Troupe member Henry Byalikov joined them for a trio paso doble in the second round – and another perfect score. "Of all of our celebrities," said Len Goodman, "you impress me the most."

Shawn Johnson and Derek Hough's Viennese waltz at the beginning of the night was well received. "You've turned into a beautiful, rich, in-depth performer," Carrie Ann Inaba said. They earned 29.5 points in the first round. But their trio with former partner Mark Ballas, a samba with tribal elements, caused a controversy in the ballroom. "It was very self-indulgent because there was very little samba content," Len said. "If you go home tomorrow don't blame me, blame those two." The second dance earned 26 points.

Apolo Ohno zip-lined across the ballroom to kick off his tango with partner Karina Smirnoff. "It was like Tom Cruise in Mission Impossible," Len said of the routine, which earned 29.5 points. "I absolutely loved it." For their trio the pair did a jive with troupe member Sasha Farber and earned another 29 points.

Gilles Marini and Peta Murgatroyd's quickstep to "Danger Zone" from Top Gun had a "few wobbles," according to Carrie Ann. Still, they earned 29.5 points. In the second round of competition, the pair performed a super sexy salsa with Chelsie Hightower. "I loved how you came out and you took control of the dance floor," Carrie Ann said of the routine, which earned them 29 more points.

Kelly Monaco proved she's "growing every week," according to Carrie Ann, who praised her 28-point Viennese waltz with Val Chmerkovskiy. Louis Van Amstel joined them for a trio jive in round two. "It had the F-factor," Len said of the 28.5-point routine. "It was fun, it was fast, it was flamboyant and it was fabulous."

Emmitt Smith and Cheryl Burke started off the night with a 28-point salsa that had Len saying, "This man puts the 'ooh' in smooth." Kym Johnson joined them at the end of the night for a salsa that earned a perfect 30 points. "You were in the red-hot, spicy jalapeño zone," Carrie Ann said.

Once again at the bottom are Kirstie Alley and Maksim Chmerkovskiy, who performed a Viennese waltz, which Len called their "very best dance," but earned just 27 points. Tristan MacManus joined them for a trio paso doble that Bruno said was "like watching Valley of the Dolls." "It did lack a bit of finesse," Len agreed. Their second routine scored just 24 points.

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British medical journal slams Roche on Tamiflu

LONDON (AP) — A leading British medical journal is asking the drug maker Roche to release all its data on Tamiflu, claiming there is no evidence the drug can actually stop the flu.

The drug has been stockpiled by dozens of governments worldwide in case of a global flu outbreak and was widely used during the 2009 swine flu pandemic.

On Monday, one of the researchers linked to the BMJ journal called for European governments to sue Roche.

"I suggest we boycott Roche's products until they publish missing Tamiflu data," wrote Peter Gotzsche, leader of the Nordic Cochrane Centre in Copenhagen. He said governments should take legal action against Roche to get the money back that was "needlessly" spent on stockpiling Tamiflu.

Last year, Tamiflu was included in a list of "essential medicines" by the World Health Organization, a list that often prompts governments or donor agencies to buy the drug.

Tamiflu is used to treat both seasonal flu and new flu viruses like bird flu or swine flu. WHO spokesman Gregory Hartl said the agency had enough proof to warrant its use for unusual influenza viruses, like bird flu.

"We do have substantive evidence it can stop or hinder progression to severe disease like pneumonia," he said.

In the U.S., the Centers for Disease Control and Prevention recommends Tamiflu as one of two medications for treating regular flu. The other is GlaxoSmithKline's Relenza. The CDC says such antivirals can shorten the duration of symptoms and reduce the risk of complications and hospitalization.

In 2009, the BMJ and researchers at the Nordic Cochrane Centre asked Roche to make all its Tamiflu data available. At the time, Cochrane Centre scientists were commissioned by Britain to evaluate flu drugs. They found no proof that Tamiflu reduced the number of complications in people with influenza.

"Despite a public promise to release (internal company reports) for each (Tamiflu) trial...Roche has stonewalled," BMJ editor Fiona Godlee wrote in an editorial last month.

In a statement, Roche said it had complied with all legal requirements on publishing data and provided Gotzsche and his colleagues with 3,200 pages of information to answer their questions.

"Roche has made full clinical study data ... available to national health authorities according to their various requirements, so they can conduct their own analyses," the company said.

Roche says it doesn't usually release patient-level data available due to legal or confidentiality constraints. It said it did not provide the requested data to the scientists because they refused to sign a confidentiality agreement.

Roche is also being investigated by the European Medicines Agency for not properly reporting side effects, including possible deaths, for 19 drugs including Tamiflu that were used in about 80,000 patients in the U.S.

____

Online:

www.bmj.com.tamiflu/

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Stocks extend losses after weekly drop on fiscal worry

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