Dozens held after Islamists attack Algerian gas field


ALGIERS (Reuters) - Islamist militants attacked a gas field in Algeria on Wednesday, claiming to have kidnapped up to 41 foreigners including seven Americans in a dawn raid in retaliation for France's intervention in Mali, according to regional media reports.


The raiders were also reported to have killed three people, including a Briton and a French national.


An al Qaeda affiliated group said the raid had been carried out because of Algeria's decision to allow France to use its air space for attacks against Islamists in Mali, where French forces have been in action against al Qaeda-linked militants since last week.


The attack in southern Algeria also raised fears that the French action in Mali could prompt further Islamist revenge attacks on Western targets in Africa, where al Qaeda in the Islamic Maghreb (AQIM) operates across borders in the Sahara desert, and in Europe.


AQIM said it had carried out Wednesday's raid on the In Amenas gas facility in OPEC member Algeria, Mauritania's ANI news agency reported.


The Algerian interior ministry said: "A terrorist group, heavily armed and using three vehicles, launched an attack this Wednesday at 5 a.m. against a Sonatrach base in Tigantourine, near In Amenas, about 100 km (60 miles) from the Algerian and Libyan border."


"The Algerian authorities will not respond to the demands of the terrorists and will not negotiate," Interior Minister Daho Ould Kablia was quoted as saying by official news agency APS.


The gas field is operated by a joint venture including BP, Norwegian oil firm Statoil and Algerian state company Sonatrach.


ARMED MEN


BP said armed men were still occupying facilities at the gas field, which produces 9 billion cubic meters of gas a year(160,000 barrels of oil equivalent per day), more than a tenth of the country's overall gas output, and 60,000 barrels a day of condensate.


"The site was attacked and occupied by a group of unidentified armed people at about 0500 UK time. Contact with the site is extremely difficult, but we understand that armed individuals are still occupying the In Amenas operations site," it said.


APS said a Briton and an Algerian security guard had been killed and seven people were injured. A French national was also killed in the attack, a local source said.


Also among those reported kidnapped by various sources were five Japanese nationals working for the Japanese engineering firm JGC Corp, a French national, an Irishman, and a number of Britons.


The U.S. State Department said it believed some U.S. citizens were also among the hostages, while Norway said 13 of its nationals were involved.


A member of an Islamist group styling itself the "Blood Battalion" was quoted by Mauritanian media as saying that five of the hostages were being held at the gas facility and 36 were in a housing area. APS said the Islamist raiders had freed Algerians working at the gas facility.


"The operation was in response to the blatant interference by Algeria and the opening of its air space to French aircraft to bomb northern Mali," the Islamist spokesman told Mauritania's ANI news agency.


ANI, which has regular direct contact with Islamists, said that fighters under the command of Mokhtar Belmokhtar were holding the foreigners.


Belmokhtar for years commanded al Qaeda fighters in the Sahara before setting up his own armed Islamist group late last year after an apparent fallout with other militant leaders.


The Algerian army was in the area of the gas facility, according to French and Algerian sources.


ANI also reported that the Islamists said they were surrounded by Algerian forces and warned that any attempt to free the hostages would lead to a "tragic end". One of the hostage takers told ANI that the perimeter of the site had been mined.


SECURITY IMPLICATIONS


The attack was the first time in years that Islamist militants are known to have launched an attack on an Algerian energy facility.


The attack could have implications for security across the whole of Algeria's energy sector, which supplies about a quarter of Europe's natural gas imports and exports millions of barrels of crude oil each year.


Such an attack would require a large and heavily armed insurgent force with a degree of freedom to move around, all elements that al Qaeda has not previously had.


However, the conflict in neighboring Libya in 2011 changed the balance of force. Security experts say al Qaeda was able to obtain arms, including heavy weapons, from the looted arsenals of former leader Muammar Gaddafi.


Statoil, a minority shareholder in the gas venture, said it had 17 employees at the plant and four of them had been evacuated. The company declined to comment on the other 13.


The five Japanese work for the engineering firm JGC Corporation, Jiji news agency reported, quoting company officials. JGC has a deal with Sonatrach-BP-Statoil Association for work in gas production at In Amenas.


A reporter for Japan's NHK television managed to call a JGC worker in Algeria.


The worker said he got a phone call from a colleague at the gas field. "It was around 6 a.m. this morning. He said that he had been hearing gunshots for about 20 minutes. I wasn't able to get through to him since."


French troops launched their first ground operation against Islamist rebels in Mali on Wednesday in an action to dislodge from a strategic town al Qaeda-linked fighters who have resisted six days of air strikes.


(Additional reporting by Catherine Bremer and John Irish in Paris, Laurent Prieur in Nouakchott, Andrew Osborn in London, Balazs Koranyi in Oslo, Antoni Slodkowski in Tokyo, Raissa Kasolowsky in Abu Dhabi and Christian Lowe in Warsaw; Editing by Giles Elgood and Will Waterman)



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Wall Street pulls flat as Apple pares losses, retailers gain

NEW YORK (Reuters) - Stocks pared losses and pulled near the unchanged mark on Tuesday as tech heavyweight Apple came off earlier lows and economic data helped retailers advance.


Apple fell for the third day in a row as the biggest drag on both the S&P 500 and Nasdaq 100 <.ndx> after reports on Monday of cuts to orders for iPhone parts. Shares were down nearly 2.5 percent at $489.11, rebounding somewhat from a session low of $483.84, its lowest level since February.


Retailer stocks advanced and helped to minimize the market's decline after a government report that retail sales rose more than expected in December was seen as a favorable sign for fourth-quarter growth. However, a separate report showed manufacturing activity in New York state contracted for the sixth month in a row in January.


"It's trying to push its way up in here, the question is, has Apple stabilized maybe a little bit down here? The retail sales numbers were really good, much better than expected this morning and that is helping the whole retail group," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.


"The bulls are clearly trying to take control of this market and hold it up here. There is clearly buying on any of the dips."


American Eagle Outfitters Inc gained 4 percent to $20.43 and Gap Inc rose 3 percent to $32.32. The Morgan Stanley retail index <.mvr> climbed 1.2 percent.


Investors also continue to eye the looming debt ceiling debate. On Monday, President Barack Obama rejected any negotiations with Republicans over raising the U.S. debt ceiling. The United States could default on its debt if Congress does not increase the borrowing limit.


Resolving the debt ceiling debate is more a question of how than if. Investors don't expect a U.S. default, but they are also wary of another eleventh-hour agreement like the one in August 2011.


The Dow Jones industrial average <.dji> shed 1.42 points, or 0.01 percent, to 13,505.90. The Standard & Poor's 500 Index <.spx> dipped 0.46 points, or 0.03 percent, to 1,470.22. The Nasdaq Composite Index <.ixic> lost 6.30 points, or 0.20 percent, to 3,111.20.


An expected lackluster earnings season also kept investors from taking aggressive bets. Analyst estimates for the quarter have fallen sharply since October. S&P 500 earnings growth is now seen up just 1.8 percent from a year ago, Thomson Reuters data showed.


Homebuilder Lennar reported a sharp rise in quarterly profit, but the stock fell 2.1 percent to $40.16 on worries that growth in orders was slowing. The PHLX housing sector index <.hgx> declined 0.3 percent.


Express Inc surged 22.5 percent to $17.22 as the biggest percentage gainer on the New York Stock Exchange after the apparel retailer raised its fourth-quarter and full year 2012 outlook.


Dell Inc shares added to earlier gains, up 5 percent to $12.91 after sources said talks to take the computer maker private are in an advanced stage.


Facebook declined 1 percent to $30.66 after the company unveiled a "graph search" feature that CEO Mark Zuckerberg said would help its billion-plus users sort through content within the social network and its content feeds.


(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)



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Oprah: Lance Armstrong admitted doping


AUSTIN, Texas (AP) — Lance Armstrong has finally come clean.


Armstrong confessed to doping during an interview with Oprah Winfrey taped Monday, just a couple of hours after a wrenching apology to staff at the Livestrong charity he founded and has now been forced to surrender.


The day ended with 2 1/2 hours of questions from Winfrey at a downtown Austin hotel, where she said the world's most famous cyclist was "forthcoming" as she asked him in detail about doping allegations that followed him throughout his seven Tour de France victories.


Speaking on "CBS This Morning," Winfrey said Tuesday she had not planned to address Armstrong's confession before the interview aired on her OWN network but, "by the time I left Austin and landed in Chicago, you all had already confirmed it."


"So I'm sitting here now because it's already been confirmed," she added.


The session was to be broadcast on Thursday but Winfrey said it will now run in two parts over two nights because there is so much material.


Winfrey would not characterize whether Armstrong seemed contrite but said he seemed ready for the interview. "I would say that he met the moment," she said.


"I don't think 'emotional' begins to describe the intensity or the difficulty he experienced in talking about some of these things."


The confession was a stunning reversal for a proud athlete and celebrity who sought lavish praise in the court of public opinion and used courtrooms to punish his critics.


For more than a decade, Armstrong dared anybody who challenged his version of events to prove it. Finally, he told the tale himself after promising over the weekend to answer Winfrey's questions "directly, honestly and candidly."


The cyclist was stripped of his Tour titles, lost most of his endorsements and was forced to leave Livestrong last year after the U.S. Anti-Doping Agency issued a damning, 1,000-page report that accused him of masterminding a long-running doping scheme.


The International Cycling Union, or UCI, issued a statement on Tuesday saying it was aware of the reports that Armstrong had confessed to Winfrey. The governing body for the sport urged Armstrong to tell his story to an independent commission it has set up to examine claims it covered up suspicious samples from the cyclist, accepted financial donations from him and helped him avoid detection in doping tests.


Armstrong started Monday with a visit to the headquarters of Livestrong, the charity he founded in 1997 and turned into a global force on the strength of his athletic dominance and personal story of surviving testicular cancer that had spread to his lungs and brain.


About 100 Livestrong staff members gathered in a conference room as Armstrong told them "I'm sorry." He choked up during a 20-minute talk, expressing regret for the long-running controversy tied to performance-enhancers had caused, but stopped short of admitting he used them.


Before he was done, several members were in tears when he urged them to continue the charity's mission, helping cancer patients and their families.


"Heartfelt and sincere," is how Livestrong spokeswoman Katherine McLane described his speech.


Armstrong later huddled with almost a dozen people before stepping into a room set up at a downtown Austin hotel for the interview with Winfrey. The group included close friends and lawyers. They exchanged handshakes and smiles, but declined comment.


Winfrey has promoted her interview, one of the biggest for OWN since she launched the network in 2011, as a "no-holds barred" session, and after the voluminous USADA report — which included testimony from 11 former teammates — she said she went into the session with 112 questions ready to go. Not all of them were asked, she said, but many were.


USADA chief executive Travis Tygart, a longtime critic of Armstrong's, called the drug regimen practiced while Armstrong led the U.S. Postal Service team "the most sophisticated, professionalized and successful doping program that sport has ever seen." USADA did not respond to requests for comment about Armstrong's confession.


For years, Armstrong went after his critics ruthlessly during his reign as cycling champion. He scolded some in public and didn't hesitate to punish outspoken riders during the race itself. He waged legal battles against still others in court.


At least one of his opponents, the London-based Sunday Times, has already filed a lawsuit to recover about $500,000 it paid him to settle a libel case, and Dallas-based SCA Promotions, which tried to deny Armstrong a promised bonus for a Tour de France win, has threatened to bring another lawsuit seeking to recover more than $7.5 million awarded by an arbitration panel.


In Australia, the government of South Australia state said Tuesday it will seek the repayment of several million dollars in appearance fees paid to Armstrong for competing in the Tour Down Under in 2009, 2010 and 2011.


"We'd be more than happy for Mr. Armstrong to make any repayment of monies to us," South Australia Premier Jay Weatherill said.


Betsy Andreu, the wife of former Armstrong teammate Frankie Andreu, was one of the first to publicly accuse Armstrong of using performance-enhancing drugs. She called news of Armstrong's confession "very emotional and very sad," and choked up when asked to comment.


"He used to be one of my husband's best friends and because he wouldn't go along with the doping, he got kicked to the side," she said. "Lance could have a positive impact if he tells the truth on everything. He's got to be completely honest."


Betsy Andreu testified in SCA's arbitration case challenging the bonus in 2005, saying Armstrong admitted in an Indiana hospital room in 1996 that he had taken many performance-enhancing drugs, a claim Armstrong vehemently denied.


"It would be nice if he would come out and say the hospital room happened," Andreu said. "That's where it all started."


Former teammate Floyd Landis, who was stripped of the 2006 Tour de France title for doping, has filed a federal whistle-blower lawsuit that accused Armstrong of defrauding the U.S. Postal Service. An attorney familiar with Armstrong's legal problems told the AP that the Justice Department is highly likely to join the lawsuit. The False Claims Act lawsuit could result in Armstrong paying a substantial amount of money to the U.S. government. The deadline for the department to join the case is Thursday, though the department could seek an extension if necessary.


According to the attorney, who works outside the government, the lawsuit alleges that Armstrong defrauded the U.S. government based on his years of denying use of performance-enhancing drugs. The attorney spoke on condition of anonymity because the source was not authorized to speak on the record about the matter.


The lawsuit most likely to be influenced by a confession might be the Sunday Times case. Potential perjury charges stemming from Armstrong's sworn testimony in the 2005 arbitration fight would not apply because of the statute of limitations. Armstrong was not deposed during the federal investigation that was closed last year.


Armstrong is said to be worth around $100 million. But most sponsors dropped him after USADA's scathing report — at the cost of tens of millions of dollars — and soon after, he left the board of Livestrong.


After the USADA findings, he was also barred from competing in the elite triathlon or running events he participated in after his cycling career. World Anti-Doping Code rules state his lifetime ban cannot be reduced to less than eight years. WADA and U.S. Anti-Doping officials could agree to reduce the ban further depending on what information Armstrong provides and his level of cooperation.


___


Litke reported from Chicago. Pete Yost in Washington also contributed to this report.


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W.Va. average gas prices rise 2 cents per gallon






CHARLESTON, W.Va. (AP) — Motorists are paying more for gas in West Virginia than they did a week ago.


AAA East Central says the average price for a gallon of regular gasoline is $ 3.44, up 2 cents from a week ago.






The national average remained unchanged at $ 3.30.


The highest average price is in Martinsburg, where a gallon of regular costs $ 3.60. Motorists in Parkersburg are paying the lowest price at $ 3.28.


Energy News Headlines – Yahoo! News





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Are gun curbs just symbolism?






STORY HIGHLIGHTS


  • Gun violence recommendations are expected from Vice President Biden on Tuesday

  • The proposals are expected to contain substantive and symbolic ideas to curb gun violence

  • Presidents use symbolism to shift public opinion or affect larger political or social change




Washington (CNN) -- The pictures told the story: Vice President Joe Biden looked solemn, patrician and in control as he sat at a long table in the White House, flanked by people on both sides of the gun control issue.


The images conveyed a sense that the White House was in command on this issue.


And that's the point. Historically, presidential administrations have used symbolic imagery—at times coupled with marginal actions—to shift public opinion or affect larger political or social change.


"Politics is a risk taking project," said Julian Zelizer, a Princeton University historian and CNN contributor. "They put together these commissions in response to some crisis. You try a hundred things and hope something works."


As Biden's gun control task force recommendations land on the desk of President Barack Obama, political experts say it is important that his administration sends a clear signal that it has things in hand.


Obama says gun lobby stokes fear of federal action










That is especially critical in what will likely be an uphill battle to push specific changes, like an assault weapons ban, as part of a broader effort on gun control.


The first move in the image battle will be to appear to move quickly and decisively.


"You have to give the Obama administration credit for one thing: They've learned from history to do things quickly," Larry Sabato, director of the University of Virginia's Center for Politics, said of previous task force initiatives that fizzled.


In 2010, Obama appointed a bipartisan commission headed by former Republican Sen. Alan Simpson of Wyoming and Erskine Bowles, a former Democratic White House chief of staff, to come up with a proposal to balance the budget and cut the debt.


Like the gun task force, Simpson-Bowles reviewed current regulations, gathered input from the public and engaged in tense internal conversations. But after months of working on a proposal—a blend of steep revenue increases and spending cuts—the group struggled to agree to a solution. The president did not take up the recommendations.


Obama largely avoided the issue of gun control during his first term.


He wrote an opinion piece two months after the 2011 assassination attempt on Rep. Gabrielle Giffords of Arizona, acknowledging the importance of the Second Amendment right to bear arms. In the piece he also called for a focus on "effective steps that will actually keep those irresponsible, law-breaking few from getting their hands on a gun in the first place."


Newtown searches for answers a month later


But in the aftermath of that shooting and as the election season loomed, the Justice Department backed off from a list of recommendations that included a measure designed to help keep mentally ill people from getting guns.


For now, at least, there is a sense in Washington that the Newtown, Connecticut, school shooting where 26 people -- 20 of them young children -- were slaughtered could lead to meaningful legislative reform.


Public opinion would seem to suggest that the White House efforts are well timed.


In the month since the massacre, a new poll showed the percentage of Americans who said they were dissatisfied with America's gun laws has spiked.


The Gallup survey released on Monday showed 38% of Americans were dissatisfied with current gun regulations, and wanted stricter laws. That represented 13-point jump from one year ago, when 25% expressed that view. "You want to strike while the iron is hot," Sabato said. "We Americans have short attention spans and, as horrible as the Newtown shooting was, will anyone be surprised if we moved along by spring?"


The White House has since worked overtime to show it considers gun control an urgent matter.


The vice president has spent the last week meeting with what the White House calls "stakeholders" in the gun control debate.


On Monday, Biden was to meet with members of a House Democratic task force on guns, along with Attorney General Eric Holder, Homeland Security Secretary Janet Napolitano, and Kathleen Sebelius, the secretary of Health and Human Services.


Universal background check: What does it mean?


In a series of face to face discussions on Thursday, Biden sat down with the National Rifle Association and other gun owners groups before conferring with representatives from the film and television industry.


In a sign the White House is prepared to move aggressively on its proposals, Biden made public comments just before meeting with the National Rifle Association, the country's most powerful gun lobby.


"Putting the vice president in charge of (the task force) and having him meeting with these groups is intended to show seriousness and an effort to reach out and respond to concerns and wishes of various groups," said Alan Abramowitz, a political science professor at Emory University.


Still, the NRA expressed disappointment in its discussion with Biden and later released a statement that accused the administration of mounting "an agenda to attack the Second Amendment."


Organizations seeking tougher gun control laws insist an assault weapons ban is critical to addressing the nation's recent rash of mass shootings. However, such a ban could be difficult in a Congress mired in gridlock.


"The bully pulpit is limited. It's hard for the president to sustain that momentum," Zelizer said of the White House's gun control efforts after the Newtown shootings. "The thing about symbolism is, like the shock over Newtown, they fade quickly."


Newtown opens eyes to other gun violence against young people


CNN's Jim Acosta and Kevin Liptak contributed to this report






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Facebook adding search feature









Facebook Inc CEO Mark Zuckerberg unveiled on Tuesday a feature to help its billion-plus users search for people and places within the social network, in the company's first major product launch event since its May initial public offering.

Speaking to reporters at its Menlo Park, Calif. headquarters, Zuckerberg described what he called "graph search," which allows users to sort through content that has been shared with them.

Critics have long deemed the social network's current search capabilities inadequate.

Available as a "beta" or early version now, the new feature - dubbed "graph search" because Facebook refers to its growing content, data and membership as the "social graph" - will initially let users sort through mainly photographs, people, places and members' interests, he added.

"You need to be able to ask the query, like, who are my friends in San Francisco," Zuckerberg said.

The world's largest online social network, Facebook is moving to regain Wall Street's confidence in the wake of a rocky IPO and concerns about its long-term money-making prospects.

Speculation had approached fever pitch over the past week about what Facebook planned to reveal in its highest-profile news briefing since its market debut. Guesses had ranged from a long-rumored smartphone to a full Web-search product.

That anticipation, as well as expectations of strong fourth-quarter financial results, have helped drive up Facebook's stock. Its shares are up more than 15 percent since the start of the year.

On Tuesday, its stock was off 0.3 percent at $30.84.



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France to stay in Mali until stability restored


BAMAKO/DUBAI (Reuters) - France will end its intervention in Mali only once stability has returned to the West African country, French President Francois Hollande said on Tuesday, raising the prospects of a costly, drawn-out operation against al Qaeda-linked rebels.


Paris has poured hundreds of soldiers into Mali and carried out air raids since Friday in the northern half of the country, which Western and regional states fear could become a base for attacks by Islamist militants in Africa and Europe.


Thousands of African troops are due to take over the offensive but regional armies are scrambling to accelerate the operation - initially not expected for months and brought forward by France's bombing campaign aimed at stopping a rebel advance on a strategic town last week.


"We have one goal. To ensure that when we leave, when we end our intervention, Mali is safe, has legitimate authorities, an electoral process and there are no more terrorists threatening its territory," Hollande told a news conference during a visit to the United Arab Emirates.


Foreign Minister Laurent Fabius, accompanying Hollande, said the offensive against the Malian rebels could take some time, and the current French level of involvement could last weeks. Elections, however, would take months to organize.


French aircraft earlier hit rebels with fresh air strikes and a column of dozens of French armored vehicles rumbled into the dusty riverside capital of Bamako overnight, bringing to about 750 the number of French troops in Mali.


Paris has said it plans to deploy 2,500 soldiers in its former colony to bolster the Malian army and work with the intervention force provided by West African states.


West African defense chiefs met in Bamako on Tuesday to approve plans for speeding up the deployment of 3,300 regional troops, foreseen in a United Nations-backed intervention plan to be led by Africans.


Nigeria pledged to deploy soldiers within 24 hours and Belgium said it was sending transport planes and helicopters to help, but West Africa's armies need time to become operational.


Mali's north, a vast and inhospitable area of desert and rugged mountains the size of Texas, was seized last year by an Islamist alliance combining al Qaeda's north African wing AQIM with splinter group MUJWA and the home-grown Ansar Dine rebels.


Any delay in following up on the French air bombardments of Islamist bases and fuel depots with a ground offensive could allow the insurgents to slip away into the desert and mountains, regroup and counter-attack.


The rebels, who French officials say are mobile and well-armed, have shown they can hit back, dislodging government forces from Diabaly, 350 km (220 miles) from Bamako on Monday.


Residents said the town was still under Islamist control on Tuesday despite a number of air strikes that shook houses.


An eye witness near Segou, to the south, told Reuters he had seen 20 French Special Forces soldiers driving toward Diabaly.


Malians have largely welcomed the French intervention, having seen their army suffer a series of defeats by the rebels.


"With the arrival of the French, we have started to see the situation on the front evolve in our favor," said Aba Sanare, a resident of Bamako.


QUESTIONS OVER READINESS


Aboudou Toure Cheaka, a senior regional official in Bamako, said the West African troops would be on the ground in a week.


The original timetable for the 3,300-strong U.N.-sanctioned African force - to be backed by western logistics, money and intelligence services - did not initially foresee full deployment before September due to logistical constraints.


Senegal, Burkina Faso, Niger, Nigeria and Guinea have all offered troops. Col. Mohammed Yerima, spokesman for Nigeria's defense ministry, said the first 190 soldiers would be dispatched within 24 hours.


But Nigeria, which is due to lead the mission, has already cautioned that even if some troops arrive in Mali soon, their training and equipping will take more time.


Sub-Saharan Africa's top oil producer, which already has peacekeepers in Sudan's Darfur and is fighting a bloody and difficult insurgency at home against Islamist sect Boko Haram, could struggle to deliver on its troop commitment of 900 men.


One senior government adviser in Nigeria said the Mali deployment was stretching the country's military.


"The whole thing's a mess. We don't have any troops with experience of those extreme conditions, even of how to keep all that sand from ruining your equipment. And we're facing battle-hardened guys who live in those dunes," the adviser said, asking not to be named because of the sensitivity of the subject.


FRENCH LINING UP SUPPORT


France, which has repeatedly said it has abandoned its role as the policeman of its former African colonies, said on Monday that the U.S., Canada, Denmark and Germany had also offered logistical support.


Fabius has said Gulf Arab states would help the Mali campaign while Belgium said on Tuesday it would send two C130 transport planes and two medical helicopters to Mali following a request from Paris.


A meeting of donors for the operation was expected to be held in Addis Ababa at the end of January.


Security experts have warned that the multinational intervention in Mali, couched in terms of a campaign by governments against "terrorism", could provoke a jihadist backlash against France and the West, and African allies.


U.S. officials have warned of links between AQIM, Boko Haram in Nigeria and al Shabaab Islamic militants fighting in Somalia.


Al Shabaab, which foiled a French effort at the weekend to rescue a French secret agent it was holding hostage, urged Muslims around the world to rise up against what it called "Christian" attacks against Islam.


"Our brothers in Mali, show patience and tolerance and you will win. War planes never liberate a land," Sheikh Ali Mohamud Rage, al Shabaab's spokesman, said on a rebel-run website.


U.S. officials said Washington was sharing information with French forces in Mali and considering providing logistics, surveillance and airlift capability.


"We have made a commitment that al Qaeda is not going to find any place to hide," U.S. Defense Secretary Leon Panetta told reporters as he began a visit to Europe. Panetta later said the U.S. had no plans to send troops to Mali.


"I don't know what the French endgame is for this. What is their goal? It reminds me of our initial move into Afghanistan," a U.S. military source told Reuters.


"Air strikes are fine. But pretty soon you run out of easy targets. Then what do you do? What do you do when they head up into the mountains?"


(Additional reporting by Elizabeth Pineau and Raissa Kasolowsky in Abu Dhabi; Felix Onuah in Abuja and Tim Cocks in Lagos; Abdi Sheikh in Mogadishu; Michelle Nichols Louis Charbonneau at the United Nations; Richard Valdmanis in Dakar; Joe Bavier in Abidjan; Jan Vermeylen in Brussels; Writing by Pascal Fletcher and David Lewis; editing by Richard Valdmanis and Giles Elgood)



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Apple demand worries weigh on S&P, Nasdaq

NEW YORK (Reuters) - Wall Street dipped on Monday as concerns about demand for Apple products sent shares of the tech heavyweight lower and investors faced a busy week for earnings in what is expected to be a uninspiring quarter.


Apple lost 3.2 percent to $503.60 as the biggest weight on both the S&P 500 and Nasdaq 100 <.ndx> indexes after reports that the tech company has cut orders for LCD screens and other parts for the iPhone 5 this quarter due to weak demand. The stock earlier hit a session low of $498.51, the first dip below $500 since February 16.


"It's clear from them reducing their supply orders that the sales haven't met their expectations, though certainly the orders they put into place for the iPhone 5 displays were higher than those that were in place for the prior phone," said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.


"Certainly, the rate of growth that they had - the tremendous surge in their revenue, stock price, all things do eventually slow and come down, so it's not a big surprise - the big question always is when."


Apple suppliers also lost ground, with Cirrus Logic off 8.7 percent to $28.82 and Qualcomm down 1.4 percent to $63.98. The S&P tech sector <.gspt> declined 1 percent as the worst performer of the 10 major S&P sectors.


The pace of earnings season picks up this week with 38 S&P 500 companies set to report, including Goldman Sachs , Bank of America , Intel and General Electric .


Overall earnings are expected to grow by just 1.9 percent in this reporting period, according to Thomson Reuters data.


President Barack Obama warned Congress at a news conference on Monday that a refusal to raise the U.S. debt ceiling next month, leading to a government shutdown, could trigger economic chaos.


"Again, we are dealing with a public relations type of approach trying to get to (Obama's) preferred result," Jankovskis said.


Separately, Federal Reserve Chairman Ben Bernanke will be speaking on monetary policy, recovery from the global financial crisis and long-term challenges facing the American economy at 4 p.m. (0200 EST).


The Dow Jones industrial average <.dji> gained 0.76 points, or 0.01 percent, to 13,489.19. The Standard & Poor's 500 Index <.spx> shed 4.24 points, or 0.29 percent, to 1,467.81. The Nasdaq Composite Index <.ixic> lost 16.42 points, or 0.53 percent, to 3,109.21.


Appliance and electronics retailer Hhgregg Inc slumped 8.9 percent to $7.19 after the electronics and appliance retailer cut its same-store sales forecast for the full year.


Transocean Ltd has disclosed that billionaire activist investor Carl Icahn has acquired a 1.56 percent stake in the offshore rig contractor and is looking to increase that holding. Its shares advanced 0.9 percent to $54.58.


The Dow, which does not list Apple as one of its components, fared better than the other two indexes as Hewlett-Packard rose 3.7 percent to $16.75 after JPMorgan upgraded its rating on the stock and raised its price target to $21 from $15.


(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)



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Armstrong ready as Oprah comes to town


AUSTIN, Texas (AP) — Days of preparation dwindled to hours for Lance Armstrong, whose scheduled interview with Oprah Winfrey transformed his quiet upscale neighborhood into a destination for media awaiting word of an apology and for onlookers snapping souvenir photos.


While all this was going on Monday morning, Armstrong managed to slip away for a jog. He returned home by cutting through a neighbor's yard and hopping a fence.


After more than a decade of denying that he doped to win the Tour de France seven times, Armstrong was set to sit down Monday for what has been trumpeted as a "no-holds barred," 90-minute, question-and-answer session with Winfrey.


The cyclist will make a limited confession about his role as the head of a long-running scheme to dominate the prestigious bike race with the aid of performance-enhancing drugs, a person with knowledge of the situation has told The Associated Press.


Winfrey and her crew said they would film the interview at Armstrong's home and broadcast it Thursday on the Oprah Winfrey Network. Local and international news crews were staking out positions in front of Armstrong's Spanish-style villa. News crews began arriving before dawn, hoping to catch a glimpse of Winfrey or Armstrong.


If he was feeling any pressure, Armstrong hardly showed it during a jog under bright skies Sunday, even as members of his legal team began arriving one-by-one at his home.


"I'm calm, I'm at ease and ready to speak candidly," he told the AP, but declined to reveal how he would answer questions about the scandal that has shadowed his career like an angry storm cloud.


Armstrong was stripped of all seven Tour titles last year following a voluminous U.S. Anti-Doping Agency report that portrayed him as a ruthless competitor, willing to go to any lengths to win the prestigious race. USADA chief executive Travis Tygart labeled the doping regimen allegedly carried out by the U.S. Postal Service team that Armstrong once led, "The most sophisticated, professionalized and successful doping program that sport has ever seen."


Yet Armstrong looked like just another runner getting in his roadwork when he talked to the AP, wearing a red jersey and black shorts, sunglasses and a white baseball cap pulled down to his eyes. Leaning into a reporter's car on the shoulder of a busy Austin road, he seemed unfazed by the attention and the news crews that made stops at his home. He cracked a few jokes about all the reporters vying for his attention, then added, "but now I want to finish my run," and took off down the road.


The interview with Winfrey will be Armstrong's first public response to the USADA report. Armstrong is not expected to provide a detailed account about his involvement, nor address in depth many of the specific allegations in the more than 1,000-page USADA report.


In a text to the AP on Saturday, Armstrong said: "I told her (Winfrey) to go wherever she wants and I'll answer the questions directly, honestly and candidly. That's all I can say."


After a federal investigation of the cyclist was dropped without charges being brought last year, USADA stepped in with an investigation of its own. The agency deposed 11 former teammates and accused Armstrong of masterminding a complex and brazen drug program that included steroids, blood boosters and a range of other performance-enhancers.


After he was stripped of his Tour titles, Armstrong defiantly tweeted a picture of himself on a couch at home with all seven of the yellow leader's jerseys on display in frames behind him. But the preponderance of evidence in the USADA report and pending legal challenges on several fronts apparently forced him to change tactics, and he still faces legal challenges.


Former teammate Floyd Landis, who was stripped of the 2006 Tour de France title for doping, has filed a federal whistle-blower lawsuit that accused Armstrong of defrauding the U.S. Postal Service. The Justice Department has yet to decide whether it will join the suit as a plaintiff.


The London-based Sunday Times also is suing Armstrong to recover about $500,000 it paid him to settle a libel lawsuit. On Sunday, the newspaper took out a full-page ad in the Chicago Tribune, offering Winfrey suggestions for what questions to ask Armstrong. Dallas-based SCA Promotions, which tried to deny Armstrong a promised bonus for a Tour de France win, has threatened to bring yet another lawsuit seeking to recover more than $7.5 million an arbitration panel awarded the cyclist in that dispute.


The lawsuit most likely to be influenced by a confession might be the Sunday Times case. Potential perjury charges stemming from Armstrong's sworn testimony in the 2005 arbitration fight would not apply because of the statute of limitations. Armstrong was not deposed during the federal investigation that was closed last year.


Many of his sponsors dropped Armstrong after the damning USADA report — at the cost of tens of millions of dollars — and soon after, he left the board of the Livestrong cancer-fighting charity he founded in 1997. Armstrong is still said to be worth about $100 million.


Livestrong might be one reason Armstrong has decided to come forward with an apology and limited confession. The charity supports cancer patients and still faces an image problem because of its association with Armstrong. He also may be hoping a confession would allow him to return to competition in the elite triathlon or running events he participated in after his cycling career.


World Anti-Doping Code rules state his lifetime ban cannot be reduced to less than eight years. WADA and U.S. Anti-Doping officials could agree to reduce the ban further depending on what information Armstrong provides and his level of cooperation.


___


AP Sports Columnist Jim Litke contributed to this report.


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Is China easing up on local media?




A protester calls for greater media freedom outside the headquarters of Nanfang Media Group in Guangzhou on Jan. 9.




STORY HIGHLIGHTS


  • Young: Handling of Southern Weekly row demonstrated tolerant side of new leadership

  • Traditional, newer media can serve as tools for achieving goals in China's modernization

  • The fight against corruption in China is at the top of the list for incoming leader, Xi Jinping

  • Young: Media has also emerged as an important tool for combating other social problems




Editor's note: Doug Young teaches financial journalism at Fudan University in Shanghai and is the author of The Party Line: How the Media Dictates Public Opinion in Modern China published by John Wiley & Sons. He also writes daily on his blog, Young's China Business Blog, commenting on the latest developments in China's fast-moving corporate scene.


Shanghai, China (CNN) -- China's traditional iron-handed approach to the media has taken a surprise turn of tolerance with Beijing's soft handling of a recent dispute with local reporters, in what could well become a more open attitude toward the media under the incoming administration of presumed new President Xi Jinping.


The new openness is being driven in large part by pragmatism, as the government realizes that both traditional and newer media can serve as powerful tools for achieving many of its goals in the country's modernization.


The recent conflict between reporters at the progressive Southern Weekly and local propaganda officials over a censorship incident left many guessing how the government would respond to the first clash of its kind in China for more than 20 years. The result was a surprisingly mild approach, including mediation by a high-level government official and a vague promise for less censorship in the future.


Read: Censorship protest a test for China


The unusually tolerant tack could well reflect a new attitude by Xi and other incoming leaders set to take control of China for the next decade, all of whom have come to realize the media can serve many important functions beyond its traditional role as a propaganda machine.


At the top of Xi's list is the fight against corruption, a problem he has mentioned frequently since taking the helm of the Communist Party last year. The party has tried to tackle the problem for years using its own internal investigations, but progress was slow until recently due to protection many officials received through their own sprawling networks of internal relationships, known locally as guanxi.










Read: Corruption as China's top priority


All that began to change in the last two years with the rapid rise of social media, most notably the Twitter-like microblogs known as Weibo that are now a pervasive part of the Chinese Internet landscape and count hundreds of millions of ordinary Chinese among their users. Those social media have become an important weapon for exposing corruption, allowing thousands of ordinary citizens to pool their resources and build cases against officials they suspect of using their influence for personal gain.


This increasingly sophisticated machine was on prominent display last year in a case involving Yang Dacai, a local official in northwestern Shaanxi province who infuriated the online community by smiling at the site of a horrific accident scene. Netizens quickly turned their outrage into an online investigation, and uncovered photos of him wearing several luxury watches he could hardly afford on his government salary. As a result, the government ultimately opened an investigation into the matter and Yang was sacked from his posts.


In addition to its role in battling corruption, the media has also emerged as an important tool for combating and addressing many of the other social problems that China is facing in its rapid modernization. Barely a week goes by without a report on the latest national food safety scandal or case of illegal pollution in both traditional and social media, with such reports often followed by government investigations.


Beijing leaders have also discovered that the media can also be an important vehicle for improving communication between the government and general public -- something that was a low priority in previous eras when officials only cared about pleasing their higher-up party bosses.


Following a Beijing directive in late 2011, most local government agencies and other organizations have all established microblog accounts, which they use to keep the public informed about their latest activities and seek feedback on upcoming plans. Such input has become a valuable way to temper traditional public mistrust toward the government, which historically didn't make much effort to include the public in any of its internal discussions.


Lastly, the government has also discovered that media, especially social media, can be an effective tool in gauging public opinion on everything from broader national topics like inflation down to very local issues like land redevelopment. Such feedback was difficult to get in the past due to interference by local officials, who tried to filter out or downplay anything with negative overtones and play things up to their own advantage. As a result, central government officials often received incomplete pictures of what was happening in their own country.


With all of these valuable roles to play, the media has become an increasingly important part of Beijing's strategy in executing many of its top priorities.


The government also realizes that a certain degree of openness is critical to letting the media perform many of those roles, which may explain its relatively tolerant approach in the recent Southern Weekly conflict. Such tolerance is likely to continue under Xi's administration, helping to shift more power towards a field of increasingly emboldened reporters at both traditional and new media and away from their traditional propaganda masters.


Follow @CNNOpinion on Twitter.


Join us at Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Doug Young.






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Golden Globes: Fey, Poehler shine; 'Les Miz,' 'Argo' win big

Chicago Tribune film critic Michael Phillips on the 2013 Golden Globes. (Posted Jan. 14th, 2013)









Hosting the 70th Golden Globes Sunday in Beverly Hills, Tina Fey and Amy Poehler proved it was possible to skewer their Hollywood colleagues without entirely alienating the crowd, as distinct from previous host Ricky Gervais.


Some 20 years after Fey and Poehler first met as improvisers at the Chicago comedy hub i.O. Theater, the pair were relaxed, funny and fully in control as they took in a room filled with the biggest stars of films “that have only been in theaters for two days,” and “the rat-faced people of television.”


Aside from their opening monologue, however, Fey and Poehler popped up only intermittently throughout the NBC broadcast.








The show — which included a rambling and unwieldy speech by lifetime achievement award winner Jodie Foster and a surpise win for “Argo” as best picture and Ben Affleck as best director — could have used their spikey interjections to give a discombobulated night a stronger throughline.


But the co-hosts' bits right at the top were pure gold. Referring to the controversy surrounding the depiction of torture in “Zero Dark Thirty,” Poehler teed up a joke that probably came closest to Gervais-level comedic bite, noting of director Kathryn Bigelow: “I haven't been following the controversy … but when it comes to torture, I trust the lady who spent three years married to James Cameron,” a line that prompted a shocked laugh from “Zero Dark” star (and best actress winner) Jessica Chastain.


Fey aimed her own zinger toward “Django Unchained” filmmaker Quentin Tarantino (a winner for best screenplay), whom she called “the star of all my sexual nightmares,” and then looked over at “Les Miserables” co-star Anne Hathaway (best actress in a film comedy or musical) and remarked, “I have not seen someone totally alone and abandoned (as Hathaway's ‘Miserables' character, Fantine) since you were onstage with James Franco hosting the Oscars.” Poehler noted a significant absence in the audience Sunday: “Meryl Streep is not here tonight because she has the flu — and I hear she's amazing in it.”


On the red carpet earlier in the night, Fey and Poehler stressed that their own nominations were the least of their concerns, and when their names were announced as nominess, Fey jokingly gritted her teeth with Jennifer Lopez by her side, while Poehler snuggled up to George Clooney. Neither won. The honor went to “Girls” creator and star Lena Dunham, who thanked her fellow nominees “for getting me through middle school.” (“Girls” also won for best comedy television series.) As a follow-up, Fey and Poehler appeared on stage, drinks in hand, disconsolate. “Glad we got you through middle school, Lena,” said Fey, who then directed her attention towards singer Taylor Swift: “You stay away from Michael J. Fox's son,” she instructed. “Or go for it,” added Poehler.


In TV, the big winner was “Homeland,” which was named best drama. The Showtime drama also notched acting wins for stars Damian Lewis and Claire Danes, echoing their Emmy wins. That came as no surprise — unlike Don Cheadle's win (over the likes of Alec Baldwin, Jim Parsons and Louis C.K.) for his role in “House of Lies,” also on Showtime.


In the movie categories, Jennifer Lawrence (“Silver Linings Playbook”) toppled Streep, Maggie Smith and Judi Dench in winning best actress in a comedy or musical, accepting her award with a sly wink at noted awards-season campaigner and movie mogul Harvey Weinstein: “Harvey, thank you for killing whoever you had to kill to get me up here today.” Best supporting actor honors went to Christoph Waltz as the German bounty hunter in “Django Unchained.”


Former President Bill Clinton made an unexpected appearance to introduce the clips from “Lincoln,” a film that depicts a commander in chief pushing a bill through Congress with the help of some unsavory deal-making. “I wouldn't know anything about that,” joked Clinton. Poehler then followed him onstage and exclaimed, “Oh my God, that's Hillary Clinton's husband!” Daniel Day-Lewis won best actor for his performance in “Lincoln,” as well.


Some lighter moments shone: Hilariously, presenters Kristen Wiig and Will Ferrell pretended to have seen each of the movies nominated, when clearly they hadn't, a bit that amused most in the audience — with the exception of a stone-faced Tommy Lee Jones. Upon her win, Hathaway clutched her Golden Globe and said, “Thank you for this lovely, blunt object” that she would forevermore use “as a weapon against self-doubt.” (Previous Golden Globe winner Richard Dreyfuss later Tweeted: “Lovely blunt objects make only OK weapons against self-doubt. #goldenglobes #trustme.”)


Michael Haneke, the Austrian filmmaker whose “Amour” won for Best Foreign Film, was awarded the prize by Arnold Schwarzenegger. “I never thought I would get an award in Hollywood from an Austrian,” he said.


Smith (not in attendance) won for best supporting actress in a TV series as the droll dowager countess on the PBS hit “Downton Abbey.”


The best surprise reaction early on had to be from pop star Adele. Winning best original song for the theme to the James Bond film “Skyfall,” she admitted she'd come to the awards with a fellow new mom, both eager for a night out: “We've been (wetting) ourselves laughing,” she said. Wrapping up the night, Poehler announced: “We're going home with Jodie Foster.”





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Syria war envelops region in "staggering" crisis: aid agency


BEIRUT (Reuters) - Syria's civil war is unleashing a "staggering humanitarian crisis" on the Middle East as hundreds of thousands of refugees flee violence including gang rape, an international aid agency said on Monday.


Opposition activists said an air strike on rebel-held territory southwest of Damascus killed 20 people, including women and children, adding to the more than 60,000 people estimated to have been killed in the 21-month-old conflict.


Over 600,000 Syrians have fled abroad - many to neighboring Turkey, Lebanon and Jordan - as violence has spread and international efforts to find a political solution have sagged.


Refugees interviewed by the International Rescue Committee (IRC) cited sexual violence as a major reason they fled the country, the New York-based organization said in a 23-page report on the crisis published on Monday.


Gang rapes often happened in front of family members and women had been kidnapped, raped, tortured and killed, it said.


"After decades of working in war and disaster zones, the IRC knows that women and girls suffer physical and sexual violence in every conflict. Syria is no exception," the group added.


Rebels and government forces have both been accused of human rights abuses during the conflict, which began with peaceful protests against President Bashar al-Assad in March 2011.


The unrest turned violent after government forces fired on demonstrators and has since become a full-scale civil war.


Fierce winter weather has worsened the plight of hundreds of thousands of refugees. The IRC urged donors to step up planning and funding in the expectation that more Syrians will flee.


"Nearly two years into Syria's civil war, the region faces a staggering humanitarian disaster," the IRC report said.


AIR POWER


Despite advancing in Syria's north and east and winning support from regional powers like Turkey and Saudi Arabia, the Syrian rebels have been unable to break a military stalemate with government forces elsewhere.


They have struggled to counter government air power in particular, making it hard for them to take and hold territory crucial to Assad's grip on power, including major cities.


An activist in Moadamiyeh, a rebel-held town southwest of Damascus, said an air strike there killed 20 people on Monday.


Activist video footage showed images of the limp body of a boy being pulled out from broken concrete, his back covered in dust and his front in blood.


The Syrian Observatory for Human Rights, a Britain-based monitoring group, said at least 13 people had died in the air raid but the toll was likely to rise.


Syrian state television said "terrorists" - its word for rebels - had fired a mortar from the Damascus suburb of Daraya on a civilian building in Moadamiyeh, killing women and children.


The reports could not be independently verified because of government restrictions on independent media in Syria.


Syrian warplanes also bombarded the strategic Taftanaz air base that rebels seized last week, the Observatory said.


In another sign of escalating bloodshed, Human Rights Watch said it had evidence that government forces had used multi-barrel rocket launchers to deliver Egyptian-made cluster munitions in recent attacks.


"Syria is escalating and expanding its use of cluster munitions, despite international condemnation of its embrace of this banned weapon," it said.


DEADLOCK


Syria's rising death toll has brought international intervention no closer. The United States and Russia have been deadlocked over how to resolve the crisis.


Moscow - which has continued to back its long-standing ally and arms client Assad - urged the opposition on Sunday to make its own proposals in response to a speech by Assad a week ago.


The speech, which offered no concessions, was criticized by the United Nations and United States. Syrian rebels described it as a renewed declaration of war.


Talks between Russia and the United States in Geneva on Friday failed to produce a breakthrough.


As diplomatic efforts have stalled, the conflict has continued to draw in Syria's neighbors.


A mortar round apparently fired from Syria crashed in a field in Turkey overnight close to a refugee camp housing thousands of Syrians along the border, Turkish state media said.


NATO troops have begun deploying Patriot defense missiles in Turkey against a potential attack from its southern neighbor. The missiles are expected to be operational by the end of the month. Turkey is a strong supporter of the Syrian rebels.


NATO said Syrian government forces had launched a short-range, Scud-style ballistic missile on Sunday, bringing to more than 20 the number launched in the past month.


The missiles, apparently fired against opposition targets, landed in Syrian territory, mostly in northern Syria, a NATO spokeswoman said in Brussels, but some of the missiles landed "quite close" to the Turkish frontier.


(Additional reporting by Laila Bassam in Beirut and Adrian Croft in Brussels; Writing by Alexander Dziadosz; Editing by Mark Heinrich)



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Wall Street Week Ahead: Attention turns to financial earnings

NEW YORK (Reuters) - After over a month of watching Capitol Hill and Pennsylvania Avenue, Wall Street can get back to what it knows best: Wall Street.


The first full week of earnings season is dominated by the financial sector - big investment banks and commercial banks - just as retail investors, free from the "fiscal cliff" worries, have started to get back into the markets.


Equities have risen in the new year, rallying after the initial resolution of the fiscal cliff in Washington on January 2. The S&P 500 on Friday closed its second straight week of gains, leaving it just fractionally off a five-year closing high hit on Thursday.


An array of financial companies - including Goldman Sachs and JPMorgan Chase - will report on Wednesday. Bank of America and Citigroup will join on Thursday.


"The banks have a read on the economy, on the health of consumers, on the health of demand," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.


"What we're looking for is demand. Demand from small business owners, from consumers."


EARNINGS AND ECONOMIC EXPECTATIONS


Investors were greeted with a slightly better-than-anticipated first week of earnings, but expectations were low and just a few companies reported results.


Fourth quarter earnings and revenues for S&P 500 companies are both expected to have grown by 1.9 percent in the past quarter, according to Thomson Reuters I/B/E/S.


Few large corporations have reported, with Wells Fargo the first bank out of the gate on Friday, posting a record profit. The bank, however, made fewer mortgage loans than in the third quarter and its shares were down 0.8 percent for the day.


The KBW bank index <.bkx>, a gauge of U.S. bank stocks, is up about 30 percent from a low hit in June, rising in six of the last eight months, including January.


Investors will continue to watch earnings on Friday, as General Electric will round out the week after Intel's report on Thursday.


HOUSING, INDUSTRIAL DATA ON TAP


Next week will also feature the release of a wide range of economic data.


Tuesday will see the release of retail sales numbers and the Empire State manufacturing index, followed by CPI data on Wednesday.


Investors and analysts will also focus on the housing starts numbers and the Philadelphia Federal Reserve factory activity index on Thursday. The Thomson Reuters/University of Michigan consumer sentiment numbers are due on Friday.


Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis, said he expected to see housing numbers continue to climb.


"They won't be that surprising if they're good, they'll be rather eye-catching if they're not good," he said. "The underlying drive of the markets, I think, is economic data. That's been the catalyst."


POLITICAL ANXIETY


Worries about the protracted fiscal cliff negotiations drove the markets in the weeks before the ultimate January 2 resolution, but fear of the debt ceiling fight has yet to command investors' attention to the same extent.


The agreement was likely part of the reason for a rebound in flows to stocks. U.S.-based stock mutual funds gained $7.53 billion after the cliff resolution in the week ending January 9, the most in a week since May 2001, according to Thomson Reuters' Lipper.


Markets are unlikely to move on debt ceiling news unless prominent lawmakers signal that they are taking a surprising position in the debate.


The deal in Washington to avert the cliff set up another debt battle, which will play out in coming months alongside spending debates. But this alarm has been sounded before.


"The market will turn the corner on it when the debate heats up," Prudential Financial's Krosby said.


The CBOE Volatility index <.vix> a gauge of traders' anxiety, is off more than 25 percent so far this month and it recently hit its lowest since June 2007, before the recession began.


"The market doesn't react to the same news twice. It will have to be more brutal than the fiscal cliff," Krosby said. "The market has been conditioned that, at the end, they come up with an agreement."


(Reporting by Gabriel Debenedetti; editing by Rodrigo Campos)



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Falcons lead Seattle 10-0 after 1 quarter


ATLANTA (AP) — Matt Ryan threw a 1-yard touchdown pass to Tony Gonzalez as the Falcons took advantage of a fumble by Seattle's Marshawn Lynch to lead the Seahawks 10-0 after the first quarter of Sunday's NFC divisional playoff game.


The Falcons overcame an interception by Ryan to stretch their lead. Ryan's pass for Gonzalez was intercepted by Seahawks middle linebacker Bobby Wagner, giving Seattle possession at its 33 midway through the quarter.


On first down from the 50, Lynch fumbled when hit by linebacker Sean Weatherspoon. Defensive tackle Jonathan Babineaux recovered at the Atlanta 39 to set up the touchdown drive. Wagner was penalized for a horse-collar tackle on Turner, moving the Falcons to the Seattle 29.


Ryan completed a 16-yard pass to backup tight end Chase Coffman to the 1, setting up the touchdown pass to Gonzalez.


The Falcons held the ball for 11 plays on their opening drive, moving to the Seahawks 21. Ryan completed a 13-yard pass to Roddy White on the first third-down play of the drive. Seattle cornerback Richard Sherman made a last-second deflection on Ryan's pass for White in the end zone on third down from the 21, setting up Matt Bryant's 39-yard field goal.


Atlanta had success running the ball on the drive with Michael Turner, who had a 15-yard gain on his first run, and Jacquizz Rodgers, who had runs of 7 and 6 yards.


The Seahawks trailed 14-0 before rallying in last week's 24-14 victory over Robert Griffin III and the Washington Redskins in the opening round of the playoffs.


___


Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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With NYTimes environmental desk gone, Green Blog becomes essential






A few days ago we woke up to the news that the New York Times is eliminating their environment desk.


Predictably, the immediate reaction of many was “oh, noooo!”.After all, whenever we hear such news, about a science or health or environmental desk being eliminated at a media organization, this means the reporters and editors of that beat have been fired.But New York Times did not fire anyone. Instead, they will disperse the environmental reporters around the building. Instead of all of them sitting together, chatting with each other, they will sit next to other people, chatting with political, economic, science, health, education and other reporters.The concern also arose as this piece of news came as a part of broader news of cost-cutting at the New York Times and actual impending layoffs of high-level editors.And concern is certainly warranted. But there is potential for this to be a good thing. It all depends on the implementation.My first reaction, quoted here, was that this may be a way to modernize environmental reporting at the Times. After all, reporters were not fired, the senior editors may be. All the environmental expertise is still at the Times, but now outside of its own ghetto, able to cross-fertilize with other beats, and to collaborate with reporters with other domains of expertise.My cautiously positive reaction to this news probably comes from my recent thinking (and blogging) about three aspects of modern media. One is about the distinction between beats and obsessions. The other one is about the importance of expertise in today’s journalism. And the other one is the distinction between push and pull models of science (and other) communication.Let me parse these a little bit more….Beats vs. ObsessionsI wrote at length about this before, but let me restate it briefly, the part that is the most relevant to this situation.







….But another way the difference is explained is that an obsession is actually broader, not narrower, by being multidisciplinary. Instead of looking at many stories from one angle, it focuses on a single story from many angles. This may be a way to solve some Wicked Problems….



By dispersing environmental reporters from a dedicated desk to other desks, New York Times eliminated the environmental beat. Now environmental reporters are free to follow their own obsessions – whatever aspect of the environment they most care about at any given time. In essence, The New York Times is starting to quartzify itself (did I just invent a new word? I bet Quartz folks will be pleased). Instead of the environmental vertical, The New York Times will now have an environmental horizontal – environmental angle permeating a lot of other stories, as environmental reporters talk to and influence their new office neighbors.Importance of ExpertiseI have argued many times before, and most recently and forcefully here, that having or building expertise on the topic one covers is an essential aspect of modern journalism. Being a generalist will become harder and harder to do successfully. Specialization rules. And there are many kinds of expertise and ways of being a specialist.It is much easier to turn an expert into a journalist than a journalist into an expert (though that is certainly not impossible), and there have been many calls lately (here is just the latest one) for journalism schools to insist on science, and even more importantly on math and statistics classes as requirements for their students.I will now make an assumption that all NYTimes environmental reporters actually have sufficient expertise to report on the environment. They are now bringing that expertise to other desks. And they are now forced to discuss this with people whose expertise lies elsewhere. They will get into debates and discussions. They will teach each other. They will change each others minds on various things. They will be prompted by those discussions to dig in deep and do some research. That will inspire them to write the next piece and next piece, possibly in collaboration with each other. By forcing cross-fertilization between people with different specialties, NYTimes will force them all to learn from each other, become more sophisticated, to tackle more complex and nuanced stories, and to produce better articles. That’s the theory… We’ll see if that happens in practice. It all depends on implementation.Push vs. PullYou may have seen this excellent post that Danielle re-posted the other day.I know I talk a lot about push vs. pull methods for science communication, but the earliest appearance of the concept on my blog is this brief but cool video clip. Soon after, I described and explained the concept in much more detail here and here. I have since applied it to a bunch of other topics, from the role of new/upcoming journalists to the different reporting strategies for different areas of science to strategies for gaining trust in the broader population to differences between science reporting on blogs vs traditional media to narrative storytelling in science.I have argued many times that, despite the proliferation of many new outlets that may do reporting better, traditional big venues, like The New York Times (and just a few other ‘biggies’, like BBC, Guardian, Washington Post, The Economist, PBS, NPR and not many more), will continue to play an important role in the media ecosystem for quite some time. These are trusted brands for far too many people who grew up in that world. And they generally do a good job, even if nobody can be perfect, and expert bloggers are quick to point out errors as they appear.But, nobody but a few crazy news junkies, all of whom are probably in the business anyway so not the target audience, reads any newspaper, including The New York Times, every day, every page, every article. I’ll tell you a secret – print edition of The New York Times lands on my front porch every night. My wife reads some of it sometimes. It is there mostly in case something I see online is so long that I want to sit back and read it on paper rather than on screen. Or if a friend of mine publishes something so I want to cut it out. Or my name appears in it, and I want to cut it out and save it, to show my Mom.But back in the old times, when I actually read newspapers on paper, how did I do it? I pick up the paper. I open it up. I take out all the sections I am not interested in – Sports, Auto, Business, Real Estate, Classifieds, etc. – and throw them directly into the recycling bin. Then I read the parts I am interested in (front sections, domestic and world news, opinion, Sunday Magazine, Week In Review, Book Review). When I was a kid, I read the comics first, then TV and movie listings, then Kids section, perhaps some nature/science, perhaps some sports.Other people have their own preferences. If there is such a thing as “Environment” section, or “Health” section, or “Science” section, how many people do you think automatically recycle them and go straight to Sports instead?A dedicated Environment section is a pull method. It pulls in readers who are already interested in the topic. Others never see it. And being online doesn’t change a thing – it works the same way as on paper, in its own ghetto, isolated from the stuff people actually read.The ‘push’ method inserts science/health/environment stories everywhere, in all sections of the paper, linked from all the pages of the website. It includes science/health/environment angles into many other stories. People interested in politics, economics, education, art, culture, comic strips, whatever, get a steady diet of relevant information mixed into their breakfast. They can’t avoid it any more. It is pushed onto them without their explicit request.Let’s hope that The New York Times is thinking this way, as that would be the best possible outcome.Central importance of the Green BlogThe managing editor Dean Baquet was reported to say this about the Green Blog: “If it has impact and audience it will survive”.That is disappointing. Green Blog’s destiny is not, and especially now should not, be decided by the vagaries of traffic. It has suddenly become much more essential to the Times than they know, or so it seems. Let me try to explain…Dispersing all the environmental reporting all around New York Times is a potentially great “push” strategy – feeding the unsuspecting readers a steady diet of environmental thinking.But dispersing all the environmental reporting all around New York Times also makes it very difficult for the “pull” audience, the readers who are interested in environment, to find everything. People who are interested in environment, people like me, will be forced to look into automatically recyclable sections, like Business or Real Estate for articles with potentially environmental angles. That takes time and energy we don’t have, so we’ll rather miss those articles.Now, some tech-savvy know-it-all is likely to post a comment “Use Tags”. Sure, you are a programmer, you know what tags are. Can you explain that to your grandma? Can you teach her how to use them?No, the answer is Green Blog.Green Blog should now become not just a cool place for interns to build their reporting chops, but also:- place where all environmental reporters link to, explain, describe and quote from all their articles that appear elsewhere in the Times,- place where someone puts together, every week, a summary and round-up of all environment-related Times articles of the previous week,- place where all environmental reporters come to crowdsource their stories, get feedback and expert information from readers as they are working on their more and more complex stories- place where all environmental reporters come to see each others work, now that they are not sitting next to each other,- a central place where people like me can come and at a single glance see all of the Times environmental reporting in one place, and- a central place where someone like Andy Revkin can check each day to see what else is going on in the Times regarding environment, so he can blog about it on Dot Earth.This is like what ethologists call the “central foraging place”, like a beehive. Honeybees (readers) get information (blog posts) from other foragers where the flowers (NYT articles) are, so they go there (following links) to get nectar. They then return to the hive (Green Blog) to deposit the nectar (their comments), to tell others where else the flowers are good (e.g., on other sites beyond NYT) and to get new information so they can go for another run, again and again.Now that there is no Environment desk and no Environment editor, the Green Blog should assume those two roles.Now, if only higher ups at the Times get to read this post. If you know them, can you share the link to this post with them?Image: Everystockphoto.com


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Quest: U.S. economy to dominate Davos




The United States and the sorry state of its political and budgetary process will be the center of attention at Davos, writes Quest




STORY HIGHLIGHTS


  • Quest: Davos is a chance to see where the political and economic landmines are in 2013

  • Quest: People will be speculating about how dysfunctional the U.S. political process has become

  • Quest: Davos has been consumed by eurozone sovereign debt crises for three years




Editor's note: Watch Quest Means Business on CNN International, 1900pm GMT weekdays. Quest Means Business is presented by CNN's foremost international business correspondent Richard Quest. Follow him on Twitter.


(CNN) -- It is that time of the year, again. Come January no sooner have the Christmas trees been taken down, as the winter sales are in full vicious flood the world of business start thinking about going to the world economic forum, better known as Davos.


For the past three years Davos has been consumed by the eurozone sovereign debt crises.


As it worsened the speculation became ever more frantic.....Will Greece leave the euro? Will the eurozone even survive? Was this all just a big German trick to run Europe? More extreme, more dramatic, more nonsense.


Can China be the biggest engine of growth for the global economy. Round and round in circles we have gone on these subjects until frankly I did wonder if there was anything else to say short of it's a horrible mess!


This year there is a new bogey man. The US and in particular the sorry state of the country's political and budgetary process will, I have little doubt, be the center of attention.


Read more: More 'cliffs' to come in new Congress


Not just because Congress fluffed its big test on the fiscal cliff, but because in doing so it created many more deadlines, any one of which could be deeply unsettling to global markets... There is the $100 billion budget cutbacks postponed for two months by the recent agreement; postponed to the end of February.


At exactly the same time as the US Treasury's ability to rob Peter to pay Paul on the debt ceiling crises comes to a head.


Read more: Both Obama, GOP set for tough talks ahead


The Treasury's "debt suspension period" is an extraordinary piece of financial chicanery that if we tried it with our credit cards would get us locked up!! Then there is the expiration of the latest continuing resolution, the authority by which congress is spending money.


There is the terrifying prospect that all these budget woes will conflate into one big political fist fight as the US faces cutbacks, default or shutdown!!


I am being alarmist. Most rational people believe that the worst sting will be taken out of this tail....not before we have all been to the edge...and back. And that is what Davos will have on its mind.


People will be speculating about how dysfunctional the US political process has become and is it broken beyond repair (if they are not asking that then they should be...)




They will be pondering which is more serious for risk...the US budget and debt crises or the Eurozone sovereign debt debacle. A classic case of between the devil and the deep blue sea.




The official topic this year is Resilient Dynamism. I have absolutely no idea what this means. None whatsoever. It is another of WEF's ersatz themes dreamt up to stimulate debate in what Martin Sorrell has beautifully terms "davosian language" In short everyone interprets it as they will.




What I will enjoy, as I do every year, is the chance to hear the global players speak and the brightest and best thinkers give us their take on the global problems the atmosphere becomes febrile as the rock-stars of finance and economics give speeches, talk on panels and give insight.




Of course comes of these musings, it never does at Davos. That's not the point. This is a chance to take stock and see where the political and economic landmines are in 2013. I like to think of Davos as the equivalent of Control/Alt/Delete. It allows us to reboot.


We leave at least having an idea of where people stand on the big issues provided you can see through the panegyrics of self congratulatory back slapping that always takes place whenever you get like minded people in one place... And this year, I predict the big issue being discussed in coffee bars, salons and fondue houses will be the United States and its budgetary woes.







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Japanese airline's grounded 787 leaks fuel in tests




















The FAA stepped in Friday to assure the public that Boeing's new 787 "Dreamliner" is safe to fly. The AP spoke with Kevin Hiatt, Flight Safety Foundation CEO & President, who says mechanical issues with new aircrafts are not uncommon. (Jan. 11)




















































Tokyo—





Japan Airlines Co (JAL) said on Sunday that a Boeing Co 787 Dreamliner jet undergoing checks in Tokyo following a fuel leak at Boston airport last week had leaked fuel during tests earlier in the day.

An open valve on the aircraft caused fuel to leak from a nozzle on the left wing used to remove fuel, a company spokeswoman said. The jet is out of service after spilling about 40 gallons of fuel onto the airport taxiway in Boston due to a separate valve-related problem.






In Boston, a different valve on the plane opened, causing fuel to flow from the centre tank to the left main tank. When that tank filled up, it overflowed into a surge tank and out through a vent.

The causes of both the incidents are unknown, the JAL spokeswoman added.

There is no timetable for the plane to return to service.

On Friday, the U.S. government ordered a wide-ranging review of Boeing's 787 Dreamliner, citing concern over a fire and other problems, but insisted the passenger jet was still safe to fly.

JAL and local rival All Nippon Airways Co fly 24 of the 49 Dreamliners delivered to end-December.

(Reporting by James Topham; Editing by Jeremy Laurence and Catherine Evans)


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