Israel hits Hamas buildings, shoots down Tel Aviv-bound rocket

GAZA/JERUSALEM (Reuters) - Israeli aircraft bombed Hamas government buildings in Gaza, and the "Iron Dome" defense system shot down a Tel Aviv-bound rocket on Saturday as Israel geared up for a possible ground invasion.

Hamas, the Palestinian Islamist group that runs the Gaza Strip, said Israeli missiles wrecked the office building of Prime Minister Ismail Haniyeh - where he had met on Friday with the Egyptian prime minister - and struck a police headquarters.

Along the Tel Aviv beachfront, volleyball games came to an abrupt halt and people crouched as sirens sounded. Two interceptor rockets streaked into the sky. A flash and an explosion followed as Iron Dome, deployed only hours earlier near the city, destroyed the incoming projectile in mid-air.

With Israeli tanks and artillery positioned along the Gaza border and no end in sight to hostilities now in their fourth day, Tunisia's foreign minister travelled to the enclave in a show of Arab solidarity.

In Cairo, a presidential source said Egyptian President Mohamed Mursi would hold four-way talks with the Qatari emir, the prime minister of Turkey and Hamas chief Khaled Meshaal in the Egyptian capital on Saturday to discuss the Gaza crisis.

Egypt has been working to reinstate calm between Israel and Hamas after an informal ceasefire brokered by Cairo unraveled over the past few weeks. Meshaal, who lives in exile, has already held a round of talks with Egyptian security officials.

Officials in Gaza said 43 Palestinians, nearly half of them civilians including eight children, had been killed since Israel began its air strikes. Three Israeli civilians were killed by a rocket on Thursday.

Israel unleashed its massive air campaign on Wednesday with the declared goal of deterring Hamas from launching rockets that have plagued its southern communities for years.

The Israeli army said it had zeroed in on a number of government buildings during the night, including Haniyeh's office, the Hamas Interior Ministry and a police compound.

Taher al-Nono, a spokesman for the Hamas government, held a news conference near the rubble of the prime minister's office and pledged: "We will declare victory from here."

Hamas's armed wing claimed responsibility for Saturday's rocket attack on Tel Aviv, the third against the city since Wednesday. It said it fired an Iranian-designed Fajr-5 at the coastal metropolis, some 70 km (43 miles) north of Gaza.

"Well that wasn't such a big deal," said one woman, who had watched the interception while clinging for protection to the trunk of a baby palm tree on a traffic island.

In the Israeli Mediterranean port of Ashdod, a rocket ripped into several balconies. Police said five people were hurt.

Among those killed in airstrikes on Gaza on Saturday were at least four suspected militants riding on motorcycles.

Israel's operation has drawn Western support for what U.S. and European leaders have called Israel's right to self-defense, along with appeals to avoid civilian casualties.

Hamas, shunned by the West over its refusal to recognize Israel, says its cross-border attacks have come in response to Israeli strikes against Palestinian fighters in Gaza.

RESERVIST CALL-UP

At a late night session on Friday, Israeli cabinet ministers decided to more than double the current reserve troop quota set for the Gaza offensive to 75,000, political sources said, in a signal Israel was edging closer to an invasion.

Around 16,000 reservists have already been called up.

Asked by reporters whether a ground operation was possible, Major-General Tal Russo, commander of the Israeli forces on the Gaza frontier, said: "Definitely."

"We have a plan ... it will take time. We need to have patience. It won't be a day or two," he added.

A possible move into the densely populated Gaza Strip and the risk of major casualties it brings would be a significant gamble for Prime Minister Benjamin Netanyahu, favorite to win a January national election.

Hamas fighters are no match for the Israeli military. The last Gaza war, involving a three-week long Israeli air blitz and ground invasion over the New Year period of 2008-09, killed over 1,400 Palestinians, mostly civilians. Thirteen Israelis died.

But the Gaza conflagration has stirred the pot of a Middle East already boiling from two years of Arab revolution and a civil war in Syria that threatens to spread beyond its borders.

"Israel should understand that many things have changed and that lots of water has run in the Arab river," Tunisian Foreign Minister Rafik Abdesslem said as he surveyed the wreckage from a bomb-blast site in central Gaza.

One major change has been the election of an Islamist government in Cairo that is allied with Hamas, potentially narrowing Israel's manoeuvering room in confronting the Palestinian group. Israel and Egypt made peace in 1979.

"DE-ESCALATION"

Netanyahu spoke late on Friday with U.S. President Barack Obama for the second time since the offensive began, the prime minister's office said in a statement.

"(Netanyahu) expressed his deep appreciation for the U.S. position that Israel has a right to defend itself and thanked him for American aid in purchasing Iron Dome batteries," the statement added.

The two leaders have had a testy relationship and have been at odds over how to curb Iran's nuclear program.

A White House official said on Saturday Obama called Turkish Prime Minister Tayyip Erdogan to discuss how the two countries could help bring an end to the Gaza conflict.

Ben Rhodes, White House deputy national security adviser, told reporters that Washington "wants the same thing as the Israelis want", an end to rocket attacks from Gaza. He said the United States is emphasizing diplomacy and "de-escalation".

In Berlin, a spokesman for German Chancellor Angela Merkel said she had spoken to Netanyahu and Egypt's Mursi, stressing to the Israeli leader that Israel had a right to self-defense and that a ceasefire must be agreed as soon as possible to avoid more bloodshed.

U.N. Secretary-General Ban Ki-moon is expected to visit Israel and Egypt next week to push for an end to the fighting in Gaza, U.N. diplomats said on Friday.

The Israeli military said 492 rockets fired from Gaza have hit Israel since the operation began. Iron Dome intercepted another 245.

In Jerusalem, targeted by a Palestinian rocket on Friday for the first time in 42 years, there was little outward sign on the Jewish Sabbath that the attack had any impact on the usually placid pace of life in the holy city.

Some families in Gaza have abandoned their homes - some of them damaged and others situated near potential Israeli targets - and packed into the houses of friends and relatives.

(Additional reporting by Dan Williams and Douglas Hamilton in Tel Aviv, Allyn Fisher-Ilan in Jerusalem, Jeff Mason aboard Air Force One, Writing by Jeffrey Heller; editing by Crispian Balmer)

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The Allure of Mass Apple Gadget Thefts

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President Obama Perfects the McKayla Maroney Scowl

By Kristen Mascia

11/17/2012 at 01:45 PM EST

Pete Souza/The White House/Getty

Heads up, America: the President is not impressed.

During the U.S. women's gymnastics team's visit to the White House on Thursday, president Barack Obama posed with McKayla Maroney, pulling the apathetic expression that made Maroney an Internet sensation during the Summer Games in London.

Afterwards, the gold medalist, 16 – who's been mimicked by everyone from Maria Menounos to, perhaps inadvertently, Prince William – seemed uncharacteristically, well, impressed.

She Tweeted: "Did I just do the Not Impressed face with the President?"

For those who don't recall, the scowl that sparked a thousand memes originated after Maroney's faulty landing during the individual women's gymnastics vault event in London.

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EU drug regulator OKs Novartis' meningitis B shot

LONDON (AP) — Europe's top drug regulator has recommended approval for the first vaccine against meningitis B, made by Novartis AG.

There are five types of bacterial meningitis. While vaccines exist to protect against the other four, none has previously been licensed for type B meningitis. In Europe, type B is the most common, causing 3,000 to 5,000 cases every year.

Meningitis mainly affects infants and children. It kills about 8 percent of patients and leaves others with lifelong consequences such as brain damage.

In a statement on Friday, Andrin Oswald of Novartis said he is "proud of the major advance" the company has made in developing its vaccine Bexsero. It is aimed at children over two months of age, and Novartis is hoping countries will include the shot among the routine ones for childhood diseases such as measles.

Novartis said the immunization has had side effects such as fever and redness at the injection site.

Recommendations from the European Medicines Agency are usually adopted by the European Commission. Novartis also is seeking to test the vaccine in the U.S.

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Wall Street Week Ahead: Going off "cliff" with a bungee cord

NEW YORK (Reuters) - The 1987 crash. The Y2K bug. The debt ceiling debacle of 2011.

All these events, in the end, turned out to be buying opportunities for stocks. So will the "fiscal cliff," some investors say as they watch favorite stocks tumble during the political give-and-take happening in Washington.

The first round of talks aimed at avoiding the "fiscal cliff" caused a temporary rise in equities on Friday, signaling Wall Street's recent declines could be a buying opportunity. The gains were small and sentiment remains weak, but it suggests hope for market bulls.

Though shares ended moderately higher on Friday, it was not enough to offset losses for the week. The S&P was down 1.5 percent, while both the Dow and the Nasdaq fell 1.8 percent.

The S&P 500 is down more than 5 percent in the seven sessions that followed President Barack Obama's re-election. Uncertainty arose as attention turned to Washington's task of dealing with mandated tax hikes and spending cuts that could take the U.S. economy back into recession.

Some see the market's move as an overreaction to hyperbolic headlines about policy gridlock in Washington, believing stocks may start to rebound in what should be a quiet few days ahead of the Thanksgiving holiday next Thursday.

"It just doesn't seem to make any sense that you suddenly wake up the day after the election and realize we've got a fiscal cliff," said Krishna Kumar, partner at New York hedge fund Goose Hollow Alpha Advisors.

Not long ago the S&P was on target for its second-best year in the last 10, riding a 17 percent advance in 2012. That's been halved to about 8 percent, which isn't bad but disappointing compared with just a month ago.

Investors have been selling the year's winners. Apple is down 25 percent from its peak above $700. General Electric is down 14 percent; Google has lost 16 percent. Overall, the stocks that make up the top 10 percent of performers in the month prior to Election Day have been the worst performers since, according to Bespoke Investment Group of Harrison, New York.

"I think it's a good opportunity to be long stocks at these levels," said Kumar.

Hikes on capital gains and dividend taxes are on the line, and Obama has dug in his heels on what he sees as a mandate to make the tax code more progressive.

He seems to have the upper hand in dealings with Congress because Republican lawmakers don't want to see tax rates increase, which is what will happen if no solution is found by the beginning of 2013. Republicans don't want to take the blame for driving the economy over the cliff.

The current crisis is similar to last year's fight to raise the U.S. debt ceiling, which led to the downgrade of the United States' top credit rating in early August 2011.

During the dealings, the S&P 500 lost 18.8 percent between its peak in July 2011 and its bottom in August. As the market slid, the political standoff badly hurt investors' confidence in Washington, setting off a spike in volatility.

In the end a deal was announced that raised the ceiling and put off longer-term fiscal decisions until January 1, 2013, setting the stage for today's "fiscal cliff" crisis.

After staying flat through September 2011, the S&P 500 jumped 31 percent between its October low and the end of March.

BUY THE DIP?

Gridlock in Washington and all that could possibly go wrong with the economy if a deal is not reached have grabbed the headlines, but the negotiations leave room for stock market gains. Congressional leaders said Friday they will work through the Thanksgiving holiday recess to find a solution.

"The debate over how to solve (the fiscal cliff) may be more productive than is commonly recognized," said Brad Lipsig, senior portfolio manager at UBS Financial Services in New York.

"The U.S. is facing a major debt overhang, and serious steps toward addressing it might ultimately be viewed as a positive for future growth," he said. "The market may recognize this and, after a time of hand wringing, recover from the concerns with a renewed sense of optimism."

The recent selling took the S&P 500's relative strength index - a technical measure of internal strength - below 30 this week, indicating the benchmark is oversold and due for a rebound.

The RSI in four of the 10 S&P sectors - utilities, telecoms, consumer staples and technology - is below 30 and the highest RSI reading, for the consumer discretionary sector, is below 40, suggesting a bounce is in store.

"What I want to do is what we did during the decline following the budget negotiations in the summer of 2011: The lower the stock market goes, the more I want to own stock," said Brian Reynolds, chief market strategist at New York-based Rosenblatt Securities.

"If we go off the cliff it will be with a bungee cord attached," he said.

KEEP CALM AND HEDGE

Volatility is expected to rise through the end of November and to spike in late December if no agreement on the fiscal cliff is reached in Congress. Alongside comes opportunity for those with high risk tolerance.

"Recently, volatility has increased in the market overall. You can't really pick it up in the VIX yet, but I think as we get through November, I think you're likely to see the VIX be at a relatively higher level," said Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston.

In 2011, the VIX averaged 19.2 in July and 35 in August. So far this month the average is 17.8 and it is expected to spike if negotiations on the cliff drag into late next month.

"Looking at the range of possibilities, I would say any of them would be better than sitting here waiting. I would even put going off the fiscal cliff in that category," said Jill Cuniff, president of Seattle-based Edge Asset Management Inc, which manages about $20 billion.

"But we don't believe Congress will let that happen; there's going to be some middle ground here."

(Reporting by Rodrigo Campos and Jonathan Spincer, additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)

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Israel moves on reservists after rockets target cities

GAZA/JERUSALEM (Reuters) - Israeli ministers were on Friday asked to endorse the call-up of up to 75,000 reservists after Palestinian militants nearly hit Jerusalem with a rocket for the first time in decades and fired at Tel Aviv for a second day.

The rocket attacks were a challenge to Israel's Gaza offensive and came just hours after Egypt's prime minister, denouncing what he described as Israeli aggression, visited the enclave and said Cairo was prepared to mediate.

Israel's armed forces announced that a highway leading to the Gaza Strip and two roads bordering the enclave would be off-limits to civilian traffic until further notice.

Tanks and self-propelled guns were seen near the border area on Friday, and the military said it had already called 16,000 reservists to active duty.

Prime Minister Benjamin Netanyahu convened senior cabinet ministers in Tel Aviv after the rockets struck to decide on widening the Gaza campaign.

Political sources said ministers were asked to approve the mobilization of up to 75,000 reservists, in what could be preparation for a possible ground operation.

No decision was immediately announced and some commentators speculated in the Israeli media the move could be psychological warfare against Gaza's Hamas rulers. A quota of 30,000 reservists had been set earlier.

Israel began bombing Gaza on Wednesday with an attack that killed the Hamas military chief. It says its campaign is in response to Hamas missiles fired on its territory. Hamas stepped up rocket attacks in response.

Israeli police said a rocket fired from Gaza landed in the Jerusalem area, outside the city, on Friday.

It was the first Palestinian rocket since 1970 to reach the vicinity of the holy city, which Israel claims as its capital, and was likely to spur an escalation in its three-day old air war against militants in Gaza.

Rockets nearly hit Tel Aviv on Thursday for the first time since Saddam Hussein's Iraq fired them during the 1991 Gulf War. An air raid siren rang out on Friday when the commercial centre was targeted again. Motorists crouched next to cars, many with their hands protecting their heads, while pedestrians scurried for cover in building stairwells.

The Jerusalem and Tel Aviv strikes have so far caused no casualties or damage, but could be political poison for Netanyahu, a conservative favored to win re-election in January on the strength of his ability to guarantee security.

"The Israel Defence Forces will continue to hit Hamas hard and are prepared to broaden the action inside Gaza," Netanyahu said before the rocket attacks on the two cities.

Asked about Israel massing forces for a possible Gaza invasion, Hamas spokesman Sami Abu Zuhri said: "The Israelis should be aware of the grave results of such a raid and they should bring their body bags."

Officials in Gaza said 28 Palestinians had been killed in the enclave since Israel began the air offensive with the declared aim of stemming surges of rocket strikes that have disrupted life in southern Israeli towns.

The Palestinian dead include 12 militants and 16 civilians, among them eight children and a pregnant woman. Three Israelis were killed by a rocket on Thursday. A Hamas source said 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.

SOLIDARITY VISIT

A solidarity visit to Gaza by Egyptian Prime Minister Hisham Kandil, whose Islamist government is allied with Hamas but also party to a 1979 peace treaty with Israel, had appeared to open a tiny window to emergency peace diplomacy.

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

But a three-hour truce that Israel declared for the duration of Kandil's visit never took hold. Israel said 66 rockets launched from the Gaza Strip hit its territory on Friday and a further 99 were intercepted by the Iron Dome anti-missile system.

Israel denied Palestinian assertions that its aircraft struck while Kandil was in the enclave.

Israel Radio's military affairs correspondent said the army's Homefront Command had told municipal officials to make civil defence preparations for the possibility that fighting could drag on for seven weeks. An Israeli military spokeswoman declined to comment on the report.

The Gaza conflagration has stoked the flames of a Middle East already ablaze with two years of Arab revolution and a civil war in Syria that threatens to leap across borders.

It is the biggest test yet for Egypt's new President Mohamed Mursi, a veteran Islamist politician from the Muslim Brotherhood who was elected this year after last year's protests ousted military autocrat Hosni Mubarak.

Egypt's Muslim Brotherhood are spiritual mentors of Hamas, yet Mursi has also pledged to respect Cairo's 1979 peace treaty with Israel, seen in the West as the cornerstone of regional security. Egypt and Israel both receive billions of dollars in U.S. military aid to underwrite their treaty.

Mursi has vocally denounced the Israeli military action while promoting Egypt as a mediator, a mission that his prime minister's visit was intended to further.

A Palestinian official close to Egypt's mediators told Reuters Kandil's visit "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".

Hamas fighters are no match for the Israeli military. The last Gaza war, involving a three-week long Israeli air blitz and ground invasion over the New Year period of 2008-2009, killed more than 1,400 Palestinians, mostly civilians. Thirteen Israelis died.

Tunisia's foreign minister was due to visit Gaza on Saturday "to provide all political support for Gaza" the spokesman for the Tunisian president, Moncef Marzouki, said in a statement.

The United States asked countries that have contact with Hamas to urge the Islamist movement to stop its rocket attacks.

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 a plan to have Palestine declared an "observer state" rather than a mere "entity" at the United Nations later this month.

(Additional reporting by Maayan Lubell, Jeffrey Heller and Crispian Balmer in Jerusalem; Writing by Jeffrey Heller; Editing by Giles Elgood)

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Lisa Ling: Pregnancy Makes Me Nervous

Mom & Babies
Celebrity Baby Blog

11/16/2012 at 09:00 AM ET

Cindy Ord/Getty

Lisa Ling has battled child traffickers, traveled to remote areas of the Congo to help women and raised awareness for her sister, captured and held in North Korea last year. But having a baby? That frightens her.

“I’m finally going down this road and it’s scary,” the expectant mom told PEOPLE Tuesday at the Women’s Media Center‘s 2012 Women’s Media Awards, where she and her sister Laura were honored.

“I’m really excited but more nervous than anything,” says Ling, 39, who is six months pregnant with a baby girl.

“I’m nervous about all of it. I’m nervous about how my life is going to completely change. I’m nervous about how I’m going to actually carry the baby. I’m nervous about changing diapers. I’m not someone who likes to be nervous. I’m someone who is always in control.”

“But I feel very fortunate,” the Our America host adds. “My husband [Paul Song] and I are very, very lucky that this is even happening. I’m really excited about investing our emotion and love in another person. I’m finally ready for it.”

The best part so far? “I didnt have any morning sickness at all and feel pretty normal other than getting this belly!”

– K.C. Baker

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Wall Street rises as Republicans call talks constructive

NEW YORK (Reuters) - Stocks rose on Friday after Republicans said their meeting with Democratic President Barack Obama about the "fiscal cliff" was constructive and that they were prepared to put higher revenue on the table if there were also significant spending cuts.

All three major U.S. stock indexes erased losses to turn higher following comments by Republican House Speaker John Boehner and others who discussed with Obama ways to avert sharp tax increases and spending cuts that would take effect next year. Analysts have said the fiscal cliff could tip the economy into recession.

"To show our seriousness, we've put revenue on the table as long as it's accompanied by significant spending cuts," Boehner told reporters at the White House.

Republican Senate Minority Leader Mitch McConnell also offered conditional backing for new revenue but said reforms to social safety net programs are also necessary.

"I would call this a PR stunt, but just the fact that people are reacting to it this positively shows that the market is oversold and is seeking a reason to rally," said James Dailey, portfolio manager at TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.

"If we fail to hold onto (gains) and hit new lows later today, then that will definitely be very alarming."

The Dow Jones industrial average <.dji> was up 40.13 points, or 0.32 percent, at 12,582.51. The Standard & Poor's 500 Index <.spx> was up 4.76 points, or 0.35 percent, at 1,358.09. The Nasdaq Composite Index <.ixic> was up 10.09 points, or 0.36 percent, at 2,847.02.

The S&P is down 4.3 percent over the past two weeks, with such sectors as financials <.gspf> and materials <.gspm> among the hardest hit. The S&P and the Dow are currently down about 1.5 percent for the week while the Nasdaq is down about 2.2 percent.

Dell Inc's stock slumped 7.8 percent to $8.81 and was the biggest percentage decliner on the S&P 500 a day after reporting a steep drop in its quarterly profit.

Shares of Penn National Gaming Inc jumped 30 percent to $48.65 after the owner of gaming and pari-mutuel properties said late Thursday it will split its business into two separate publicly traded companies - a gaming focused real estate investment trust and a gaming operator.

Sears Holdings Corp late Thursday reported a quarterly loss that was narrower than expected, but same-store sales fell on weak demand for electronics, sending shares down 16.7 percent to $48.72.

J.M. Smucker Co reported a rise in second-quarter earnings, helped by a drop in commodity costs, but the stock fell 2.9 percent to $82.94.

(Editing by Kenneth Barry)

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Rockets hit near Tel Aviv as Gaza death toll rises

GAZA (Reuters) - Two rockets fired from the Gaza Strip targeted Tel Aviv on Thursday in the first attack on Israel's commercial capital in 20 years, raising the stakes in a showdown between Israel and the Palestinians that is moving towards all-out war.

Earlier, a Hamas rocket killed three Israelis north of the Gaza Strip, drawing the first blood from Israel as the Palestinian death toll rose to 16, five of them children.

Israeli warplanes bombed targets in and around Gaza city for a second day, shaking tall buildings. In a sign of possible escalation, the armed forces spokesman said the military had received the green light to call in up to 30,000 reserve troops.

Israeli Defence Minister Ehud Barak said Palestinian militants would pay a price for firing the missiles.

Plumes of smoke and dust furled into a sky laced with the vapor trails of outgoing rockets over the crowded city, where four young children killed on Wednesday were buried.

The conflict, launched by Israel with the killing of Hamas's military chief, pours oil on the fire of a Middle East already ablaze with two years of revolution and an out-of-control civil war in Syria.

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

Mursi's prime minister, Hisham Kandil, will visit Gaza on Friday with other Egyptian officials in a show of support for the enclave, an Egyptian cabinet official said. Israel promised that the delegation would come to no harm.

Israel says its attack is in response to escalating missile strikes from Gaza. Israel's bombing has not yet reached the saturation level seen before it last invaded Gaza in 2008, but Israeli officials have said a ground assault is still an option.

Israeli police said three Israelis died when a rocket hit a four-story building in the town of Kiryat Malachi, some 25 km (15 miles) north of Gaza, the first Israeli fatalities of the latest conflict to hit the coastal region.

Air raid sirens sent residents running for shelter in Tel Aviv, a Mediterranean city that has not been hit by a rocket since the 1991 Gulf War. Israeli sources said one rocket landed in the sea, while another missile landed in an uninhabited area of the Tel Aviv suburbs.

The Tel Aviv metropolitan area holds more than 3 million people, more than 40 percent of Israel's population.

"This escalation will exact a price that the other side will have to pay," Barak said in a television broadcast shortly after the strike.

Speaking at the same time in Gaza, Hamas's prime minister, Ismail Haniyeh, 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," he said.

After watching powerlessly from the sidelines of the Arab Spring, Israel has been thrust to the centre of a volatile new world in which Islamist Hamas hopes that Mursi and his newly dominant Muslim Brotherhood in Egypt will be its protectors.

"The Israelis must realize that this aggression is unacceptable and would only lead to instability in the region and would negatively and greatly impact the security of the region," Mursi said.

The new conflict will be the biggest test yet 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 autocrat Hosni Mubarak, has called for a "Day of Rage" in Arab capitals on Friday. The Brotherhood is seen as the spiritual mentors of Hamas.

ASSASSINATION

The offensive began on Wednesday when a precision Israeli air strike killed Hamas military mastermind Ahmed Al-Jaabari. Israel then began shelling the enclave from land, air and sea.

At Jaabari's funeral on Thursday, supporters fired guns in the air celebrating news of the Israeli deaths, to chants for Jaabari of "You have won."

His corpse was borne through the streets wrapped in a bloodied white sheet. But senior Hamas figures were not in evidence, wary of Israel's warning they are in its crosshairs.

The Israeli army said 250 targets were hit in Gaza, including more than 130 rocket launchers. It said more than 270 rockets had struck Israel since the start of the operation, with its Iron Dome interceptor system shooting down more than 105 rockets headed for residential areas.

Expecting days or more of fighting and almost inevitable civilian casualties, Israeli warplanes dropped leaflets in Gaza telling residents to stay away from Hamas and other militants.

The United States condemned Hamas, shunned by the West as an obstacle to peace for its refusal to renounce violence and recognize Israel.

"There is no justification for the violence that Hamas and other terrorist organizations are employing against the people of Israel," said Mark Toner, deputy State Department spokesman.

The U.N. Security Council held an emergency meeting late on Wednesday, but took no action.

In France, Foreign Minister Laurent Fabius said: "It would be a catastrophe if there is an escalation in the region. Israel has the right to security but it won't achieve it through violence. The Palestinians also have the right to a state."

"GATES OF HELL"

Israel's sworn enemy Iran, which supports and arms Hamas, condemned the Israeli offensive as "organized terrorism". Lebanon's Iranian-backed Shi'ite militia Hezbollah, which has its own rockets aimed at the Jewish state, denounced strikes on Gaza as "criminal aggression", but held its fire.

Oil prices rose more than $1 as the crisis grew. Israeli shares and bonds fell, while Israel's currency rose off Wednesday's lows, when the shekel slid more than 1 percent to a two-month low against the dollar.

A second Gaza war has loomed on the horizon for months as waves of Palestinian rocket attacks and Israeli strikes grew increasingly intense and frequent. Israeli Prime Minister Benjamin Netanyahu, favored in polls to win a January 22 general election, said the Gaza operation could be stepped up.

His cabinet has granted authorization for the mobilization of military reserves if required to press the offensive, dubbed "Pillar of Defence" in English and "Pillar of Cloud" in Hebrew after the Israelites' divine sign of deliverance in Exodus.

Hamas has said the killing of its top commander in a precise, death-from-above air strike, would "open the gates of hell" for Israel. It appealed to Egypt to halt the assault.

Israel has been anxious since Mubarak was toppled last year in the Arab Spring revolts that replaced secularist strongmen with elected Islamists in Egypt, Tunisia and Libya, and brought civil war to Israel's other big neighbor Syria.

Cairo recalled its ambassador from Israel on Wednesday. Israel's ambassador left Cairo on what was called a routine home visit and Israel said its embassy would stay open.

Gaza has an estimated 35,000 Palestinian fighters, no match for Israel's F-16 fighter-bombers, Apache helicopter gunships, Merkava tanks and other modern weapons systems in the hands of a conscript force of 175,000, with 450,000 in reserve.

(Additional reporting by Jeffrey Heller in Jerusalem, Erika Solomon in Beirut, John Irish in Paris. Marwa Awad in Cairo.; Writing by Douglas Hamilton; Editing by Crispian Balmer and Giles Elgood)

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Snooki's Nights Out Now: Drinking Wine and Talking Politics

TV Watch

By Dahvi Shira

11/15/2012 at 02:30 PM EST

Snooki and Lorenzo

Courtesy of Nicole 'Snooki' Polizzi

With her fist-pumping days behind her, newly mature mom Nicole "Snooki" Polizzi no longer spends her conversations trying to figure out what happened the night before.

"I am having a glass of wine talking about politics," the recently reformed party girl, 24, says on an episode of Anderson Live, airing Thursday. "It's way different. Like, so, 'Who are you voting for?' I mean me and my friends are like, 'What are we saying?' We are getting so old."

Adds Polizzi, who gave birth to son Lorenzo in August, "Having a kid changes your life. Before, I was like, 'I want to go out. Let's go to Vegas.' After having a kid, it's just like, 'Oh my god, there's so much more to life than just going out and having a good time.' "

But the Jersey Shore star hasn't given up a social life completely.

"Once a month, I go out with my girlfriends because if you don't go out when you're a new mom, you're just going to freak out," she explains. "You need time for yourself. It's always so busy with the baby. Sometimes you get stressed or frustrated, so you just need your own time."

One thing Lorenzo's mommy surprisingly doesn't seem to need a break from is changing diapers.

"I actually love [it]," Polizzi says. "Even when they are like poopy and gross, it's fun. He pooped on my hand once and that was awesome. ... I have fun doing everything with him."

But the reality starlet, who says wants "to be a MILF," admits the whole experience wouldn't be as manageable without the aid of her other half, Jionni LaValle.

"Jionni's such a good help," Polizzi says of her fiancé. "He's like another mother to Lorenzo. He's hands-on. [He] changes diapers. He's just awesome. He helps me so I can do my hair and my makeup still."

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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.

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.

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Wall Street dips on "fiscal cliff" fear but off lows

NEW YORK (Reuters) - The S&P 500 was on track to fall for a third day on Thursday as Wal-Mart Stores Inc reported disappointing results and investors feared the "fiscal cliff" will harm the economy.

Stocks have struggled recently to hold onto even slight gains, dropping more than 1 percent on Wednesday after starting the session higher.

Investors worry the economy could slip into recession if no deal is reached in Washington to avoid the fiscal cliff - budget cuts and tax hikes that begin to take effect in the new year. The S&P 500 is off about 2 percent for the week so far.

"Presently, investors are grappling with over-arching market issues, such as fears about the looming 'fiscal cliff,' as well as typical seasonal issues such as year-end portfolio repositioning," said Melissa Roberts, lead analyst at quantitative research of Keefe Bruyette & Woods in New York.

"Individual stock performance is now more impacted by overall market performance and broad macro issues rather than company-specific fundamentals."

Investors will closely watch for any clues coming out of Friday's meeting at the White House between President Barack Obama and Republican and Democratic leaders of Congress over deficit reduction.

"In terms of the market, all eyes now are on the congressional meeting tomorrow with the White House," said Peter Boockvar, managing director at Miller Tabak & Co in New York.

"With a very oversold market and bearishness at the individual investor level at the highest since August 2011, a bounce is due if there is any positive commentary in that meeting," he added.

The Dow Jones industrial average <.dji> was down 29.07 points, or 0.23 percent, at 12,541.88. The Standard & Poor's 500 Index <.spx> was down 1.69 points, or 0.12 percent, at 1,353.80. The Nasdaq Composite Index <.ixic> was down 9.54 points, or 0.34 percent, at 2,837.27.

The benchmark S&P 500 index closed on Wednesday at the lowest level since July 25, while the Dow and Nasdaq ended at their lowest since late June. Since the November 6 election the S&P 500 is down about 5 percent.

Wal-Mart fell 4 percent to $68.50 after reporting third-quarter revenue that missed expectations. The world's largest retailer said economic conditions were weighing on customers' spending decisions.

Apple Inc shares also weighed on the market, falling 1 percent to $531.85 and down about 24 percent since September's high.

But retailer Target Corp rose 1.5 percent to $62.32 after it reported a profit that beat expectations.

Despite the recent decline, the S&P 500 is up 7.5 percent so far this year, though at its 2012 peak the benchmark index was up about 17 percent.

Weekly jobless benefits claims spiked last week, reflecting the impact of superstorm Sandy. The storm also hurt economic activity in the mid-Atlantic states. The Philadelphia Federal Reserve Bank's business activity index for last month fell more than expected, sending stocks lower.

The index is one of the early indicators of a national manufacturing report later from the Institute for Supply Management.

NetApp Inc surged 10.7 percent to $30.04 a day after reporting adjusted second-quarter earnings that beat expectations and forecasting a strong current quarter.

(Editing by Kenneth Barry)

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Israel launches Gaza offensive, kills Hamas commander

GAZA (Reuters) - Israel launched a major offensive against Palestinian militants in Gaza on Wednesday, killing the military commander of Hamas in an air strike and threatening an invasion of the enclave that the Islamist group vowed would "open the gates of hell".

The onslaught shattered hopes that a truce mediated on Tuesday by Egypt could pull the two sides back from the brink of war after five days of escalating Palestinian rocket attacks and Israeli strikes at militant targets.

Operation "Pillar of Defence" began with a surgical strike on a car carrying the commander of the military wing of Hamas, the Iranian-armed Islamist movement which controls Gaza and dominates a score of smaller armed groups.

Within minutes of the death of Ahmed Al-Jaabari, big explosions were rocking Gaza, as the Israeli air force struck at selected targets just before sundown, blasting plumes of smoke and debris high above the crowded city.

Panicking civilians ran for cover and the death toll mounted quickly. Nine people including three children were killed, the health ministry said, and about 40 people were wounded.

Army tanks shelled border areas of Gaza in south and the Israeli navy shelled a Hamas security position from the sea.

Hamas stuck back, firing at least four Grad rockets at the southern city of Beersheva in what it called its initial response. Israel reported damage but no casualties.

The escalation in Gaza came in a week when Israel fired at Syrian artillery positions it said had fired into the Israeli-annexed Golan Heights amid a civil war in Syria that has brought renewed instability to Lebanon.

Egypt, whose new Islamist government is still honoring the 1979 peace agreement with Israel, condemned the raids on Gaza as a threat to regional security and withdrew its ambassador from Israel. It also summoned the Israeli envoy to Cairo to deliver a protest and called for an emergency meeting of the United Nations Security Council.

Russia called for an end to the raids.

A second Gaza war has loomed on the horizon for months as waves of Palestinian rocket attacks and Israeli strikes grew increasingly more intense and frequent.

Israel's Operation Cast Lead in 2008-2009 began with a week of air attacks and shelling, followed by a land invasion of the blockaded coastal strip, sealed off at sea by the Israeli navy. Some 1,400 Palestinians were killed and 13 Israelis died.

KILLED IN HIS CAR

Hamas said Jaabari, who ran the organization's armed wing, Izz el-Deen Al-Qassam, died along with a Hamas photographer when their car was blown apart by an Israeli missile.

The charred wreckage of a car could be seen belching flames, as emergency crews picked up what appeared to be body parts.

Israel confirmed it had carried out the attack and announced there was more to come. Reuters witnesses saw Hamas security compounds and police stations blasted apart.

"Today we relayed a clear message to the Hamas organization and other terrorist organizations," Prime Minister Benjamin Netanyahu said. "And if there is a need, the IDF (Israel Defence Forces) is prepared to broaden the operation. We will continue to do everything in order to protect our citizens."

Immediate calls for revenge were broadcast over Hamas radio.

"The occupation has opened the gates of hell," Hamas's armed wing said. Smaller groups also vowed to strike back.

"Israel has declared war on Gaza and they will bear the responsibility for the consequences," Islamic Jihad said.

Southern Israeli communities within rocket range of Gaza were on full alert, and schools were ordered closed for Thursday. About one million Israelis live in range of Gaza's relatively primitive but lethal rockets, supplemented in recent months by longer-range, more accurate systems.

"The days we face in the south will, in my estimation, prove protracted," Brigadier-General Yoav Mordechai, Israel's chief military spokesman, told Channel 2 TV.

"The home front must brace itself resiliently."

Mordechai said Israel was both responding to a surge in Palestinian rocket salvoes earlier this week and trying to prevent Hamas and other Palestinian factions from building up their arsenals further.

Among the targets of Wednesday's air strikes were underground caches of longer-range Hamas rockets, he said.

Asked if Israel might send in ground forces, Mordechai said: "There are preparations, and if we are required to, the option of an entry by ground is available."

OBAMA BRIEFED

Israeli President Shimon Peres briefed U.S. President Barack Obama on the operation, Peres's office said in a statement. He told Obama that Jaabari was a "mass-murderer" and his killing was Israel's response to Palestinian rocket attacks from Gaza.

"Israel is not interested in stoking the flames, but for the past five days there has been constant missile fire at Israel and mothers and children cannot sleep quietly at night," said Peres, who visited the border town of Sderot earlier.

In the flare-up that was prelude to Wednesday's offensive, more than 115 missiles were fired into southern Israel from Gaza and Israeli planes launched numerous strikes.

Seven Palestinians, three of them gunmen, were killed. Eight Israeli civilians were hurt by rocket fire and four soldiers wounded by an anti-tank missile.

Palestinian President Mahmoud Abbas asked Arab League Secretary General Nabil al-Arabi to call an emergency meeting of the League's Council to denounce "dangerous Israeli escalation and brutal aggression on our people in the Gaza Strip".

The leader of Hamas in the Gaza Strip, Ismail Haniyeh, called on Arab states, especially Egypt, to halt the assault.

Egypt's foreign ministry condemned the Israeli strikes, saying any further escalation "could have negative repercussions on the security and stability of the region".

Israel's intelligence agency Shin Bet said Jaabari led Hamas' takeover of Gaza in 2007, when the militant Islamist group ousted fighters of the Fatah movement of its great rival, the Western-backed Palestinian president Mahmoud Abbas.

It said he instigated the attack that led to the capture of Israeli Corporal Gilad Shalit in a kidnap raid from Gaza in 2006. Jaabari was also the man who handed Shalit over to Israel in a prisoner exchange five years after his capture.

Israel holds a general election on January 22 and Netanyahu has pledged to retaliate harshly against Hamas. But Israel is also wary of the reaction from Mursi's Egypt, whose ruling Muslim Brotherhood is the spiritual mentor of Hamas.

Hamas has been emboldened by its rise to power, viewing Mursi as a "safety net" who will not permit a second Israeli thrashing of Gaza, home to 1.7 million Palestinians.

Hamas is also supported by Iran, which Israel regards as a rising threat to its own existence due to its nuclear program.

Helped by the contraband trade through tunnels from Egypt, Gaza militias have smuggled in better weapons.

But their estimated 35,000 Palestinian fighters are still no match for Israel's F-16 fighter-bombers, Apache helicopter gunships, Merkava tanks and other modern weapons systems in the hands of a conscript force of 175,000, with 450,000 in reserve.

(Additional reporting by Dan Williams, Crispian Balmer and Ori Lewis in Jerusalem; Writing by Douglas Hamilton; Editing by Giles Elgood)

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Facebook jumps on biggest lock-up expiration day

NEW YORK (AP) — Facebook‘s stock is up more than 7 percent despite expectations that it would fall because more than 850 million additional shares in the company are being freed up for sale.

Shares of Facebook Inc. are up $ 1.48, or 7.5 percent, at $ 21.34. Facebook went public in May at $ 38 in a much-hyped initial public offering of stock that turned out to be a letdown for investors. Its stock price hasn’t hit $ 38 since.

Wednesday marked the expiration of Facebook’s biggest lock-up period, which is a time following an IPO that prevents insiders from selling stock. In all, 773 million shares became eligible for sale, along with 31 million restricted stock units. And about 48 million shares held by former Facebook employees also became eligible for sale, bringing the total to 852 million. These shares would be on top of what’s already been available for trading, increasing the supply and potentially lowering the overall price.

Lock-ups are common after initial public stock offerings and are designed to prevent a stock from experiencing the kind of volatility that might occur if too many shareholders decide to sell all at once.

The previous lock-up expired on Oct. 29, when U.S. stock markets were closed because of Superstorm Sandy. Facebook’s stock fell nearly 4 percent two days later, when the stock market reopened.

Cantor Fitzgerald analyst Youssef Squali believes a potential increase in the capital gains tax on Jan. 1, when Bush-era tax cuts would expire unless Congress acts, could pressure Facebook’s stock. That said, he called the Menlo Park, Calif.-based social media company a “long-term winner.”

Facebook’s stock saw its biggest one-day gain on Oct. 24, the day after the company reported stronger-than-expected third-quarter results and detailed for the first time how much money it made from mobile ads. The stock, which added 19 percent that day, closed at $ 23.23. Even with Wednesday’s gain, it is still 8 percent below that price.

Social Media News Headlines – Yahoo! News

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Zac Efron Smooches Rebel Wilson at Lakers Game

By Julia Haskins

11/14/2012 at 02:20 PM EST

Does Zac Efron have a new crush?

The sexy young star Tweeted a picture of a smooch he gave hilarious Bridesmaids actress Rebel Wilson at Tuesday's Los Angeles Lakers game.

"She's a Laker fan too??? I think I'm in love," Efron wrote in the picture post.

And it sounded like the pals, who were also joined courtside by Wilson's Pitch Perfect costar Skylar Astin, had a blast.

"Half time at Lakers hanging with main man @ZacEfron, freestyle rapping etc," Wilson Tweeted.

Astin also posted goofy pictures throughout the game.

Wilson seemed delighted by her handsome company, and was not too worried about the game's outcome. (The Lakers lost to the San Antonio Spurs 84-82.)

"I had two hot dogs at half time! @SkylarAstin @ZacEfron," she Tweeted with a picture of her fellow fans.

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Ireland probes death of ill abortion-seeker

DUBLIN (AP) — The debate over legalizing abortion in Ireland flared Wednesday after the government confirmed that a woman in the midst of a miscarriage was refused an abortion and died in an Irish hospital after suffering from blood poisoning.

Prime Minister Enda Kenny said he was awaiting findings from three investigations into the death of Savita Halappanavar, a 31-year-old Indian woman who was 17 weeks pregnant. Her case highlighted the legal limbo in which pregnant women facing severe health problems can find themselves in predominantly Catholic Ireland.

Ireland's constitution officially bans abortion, but a 1992 Supreme Court ruling found the procedure should be legalized for situations when the woman's life is at risk from continuing the pregnancy. Five governments since have refused to pass a law resolving the confusion, leaving Irish hospitals reluctant to terminate pregnancies except in the most obviously life-threatening circumstances.

The vast bulk of Irish women wanting abortions, an estimated 4,000 per year, simply travel next door to England, where abortion has been legal on demand since 1967. But that option is difficult, if not impossible, for women in failing health.

Halappanavar's husband, Praveen, said doctors at University Hospital Galway in western Ireland determined she was miscarrying within hours of her hospitalization for severe pain on Sunday, Oct. 21. He said over the next three days, doctors refused their requests for an abortion to combat her surging pain and fading health.

The hospital declined to say whether doctors believed Halappanavar's blood poisoning could have been reversed had she received an abortion rather than waiting for the fetus to die on its own. In a statement, it described its own investigation into the death, and a parallel probe by the government's Health Service Executive, as "standard practice" whenever a pregnant woman dies in a hospital. The Galway coroner also planned a public inquest.

"Savita was really in agony. She was very upset, but she accepted she was losing the baby," he told The Irish Times in a telephone interview from Belgaum, southwest India. "When the consultant came on the ward rounds on Monday morning, Savita asked if they could not save the baby, could they induce to end the pregnancy? The consultant said: 'As long as there is a fetal heartbeat, we can't do anything.'

"Again on Tuesday morning ... the consultant said it was the law, that this is a Catholic country. Savita said: 'I am neither Irish nor Catholic' but they said there was nothing they could do," Praveen Halappanavar said.

He said his wife vomited repeatedly and collapsed in a restroom that night, but doctors wouldn't terminate the fetus because its heart was still beating.

The fetus died the following day and its remains were surgically removed. Within hours, Savita was placed under sedation in intensive care with blood poisoning and he was never able to speak with her again, her husband said. By Saturday, her heart, kidneys and liver had stopped working. She was pronounced dead early Sunday, Oct. 28.

The couple had settled in 2008 in Galway, where Praveen Halappanavar works as an engineer at the medical devices manufacturer Boston Scientific. His wife was qualified as a dentist but had taken time off for her pregnancy. Her parents in India had just visited them in Galway and left the day before her hospitalization.

Praveen Halappanavar said he took his wife's remains back to India for a Hindu funeral and cremation Nov. 3. News of the circumstances that led to her death emerged Tuesday in Galway after the Indian community canceled the city's annual Diwali festival. Savita Halappanavar had been one of the festival's main organizers.

Opposition politicians appealed Wednesday for Kenny's government to introduce legislation immediately to make the 1992 Supreme Court judgment part of statutory law. Barring any such bill, the only legislation defining the illegality of abortion in Ireland dates to 1861, when the entire island was part of the United Kingdom. That British law, still valid here due to Irish inaction on the matter, states it is a crime punishable by life imprisonment to "procure a miscarriage."

In the 1992 case, a 14-year-old girl identified in court only as "X'' successfully sued the government for the right to have an abortion in England. She had been raped by a neighbor. When her parents reported the crime to police, the attorney general ordered her not to travel abroad for an abortion, arguing this would violate Ireland's constitution.

The Supreme Court ruled she should be permitted an abortion in Ireland, never mind England, because she was making credible threats to commit suicide if refused one. During the case, the girl reportedly suffered a miscarriage.

Since then, Irish governments twice have sought public approval to legalize abortion in life-threatening circumstances — but excluding a suicide threat as acceptable grounds. Both times voters rejected the proposed amendments.

Legal and political analysts broadly agree that no Irish government since 1992 has needed public approval to pass a law that backs the Supreme Court ruling. They say governments have been reluctant to be seen legalizing even limited access to abortion in a country that is more than 80 percent Catholic.

An abortions right group, Choice Ireland, said Halappanavar might not have died had any previous government legislated in line with the X judgment. Earlier this year, the government rejected an opposition bill to do this.

"Today, some 20 years after the X case, we find ourselves asking the same question: If a woman is pregnant, her life in jeopardy, can she even establish whether she has a right to a termination here in Ireland?" said Choice Ireland spokeswoman Stephanie Lord.

Coincidentally, the government said it received a long-awaited expert report Tuesday proposing possible changes to Irish abortion law shortly before news of Savita Halappanavar's death broke. The government commissioned the report two years ago after the European Court of Human Rights ruled that Ireland's inadequate access to abortions for life-threatening pregnancies violated European Union law.

The World Health Organization, meanwhile, identifies Ireland as an unusually safe place to be pregnant. Its most recent report on global maternal death rates found that only three out of every 100,000 women die in childbirth in Ireland, compared with an average of 14 in Europe and North America, 190 in Asia and 590 in Africa.

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Wall Street briefly cuts losses on Obama briefing

NEW YORK (Reuters) - Stocks briefly trimmed losses on Wednesday as President Barack Obama pushed for his proposal to have the wealthy pay more in taxes as a way to tame the federal deficit.

Taking a hard line in his opening bid before he begins fiscal talks with U.S. lawmakers later in the week, the president also said he was encouraged that some Republicans have agreed to raising new revenues.

The Dow Jones industrial average <.dji> was down 77.75 points, or 0.61 percent, at 12,678.43. The Standard & Poor's 500 Index <.spx> was down 6.90 points, or 0.50 percent, at 1,367.63. The Nasdaq Composite Index <.ixic> was down 10.48 points, or 0.36 percent, at 2,873.41.

(Reporting by Angela Moon; Editing by Jan Paschal)

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France recognizes new Syria opposition

CAIRO/PARIS (Reuters) - France became the first European power to recognize Syria's new opposition coalition as the sole representative of its people and said on Tuesday it would look into arming rebels against President Bashar al-Assad once they form a government.

Twenty months into their bloody uprising against Assad, fragmented Syrian opposition groups struck a deal in Qatar on Sunday to form a broad coalition and their leader immediately appealed for European backing.

"I announce today that France recognizes the Syrian National Council 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," French President Francois Hollande said, breaking ranks with European allies. Six Gulf Arab states took a similar step on Monday.

The question of arming the rebels would be looked at as soon as the rebel coalition formed a transitional government, Hollande told a news conference in Paris.

Arab League and EU foreign ministers meeting in Cairo on Tuesday welcomed the formation of the coalition as an important step forward, although their communiqué showed they had not reached a unanimous decision to recognize it as Syria's sole authority.

The French announcement came just hours after Syria's newly installed opposition leader urged European states to back the opposition so it could buy weapons.

Paris, one of Assad's harshest critics, had previously ruled out arming rebel forces, concerned that weapons could get into the hands of radical Islamists.

Speaking to Reuters as Arab and European ministers met to discuss Syria at the Arab League in Cairo, Mouaz Alkhatib, the Damascus preacher elected unopposed on Sunday to lead the new group, had asked for diplomatic backing.

"I request European states to grant political recognition to the coalition as the legitimate representative of the Syrian people and to give it financial support," he said.

"When we get political recognition, this will allow the coalition to act as a government and hence acquire weapons and this will solve our problems," added Alkhatib, who has been described by supporters as a moderate noted for his embrace of Syria's religious and ethnic minorities.

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.

Russia and China, which have lent Assad diplomatic support since the uprising erupted in March last year, have shown no sign of warming towards his Western- and Arab-backed opponents.

"STEP FORWARD"

Cajoled by Qatar and the United States, the ineffectual Syrian National Council, previously the main opposition body based abroad, agreed to join a wider coalition on Sunday.

Britain's foreign minister, William Hague, said the coalition must show it had support within Syria before London would acknowledge it as the rightful government.

"If they have this, yes, we will then recognize them as the legitimate representative of the Syrian people," he told reporters at the Arab-European meeting in Cairo.

The opposition had hoped its new-found unity would clear the way for outside powers to arm the rebels, but Western nations fear such weapons could reach the hands of Islamist militants.

Western concern has also been heightened by documented reports of atrocities by ill-disciplined insurgents.

"Syria's newly created opposition front should send a clear message to opposition fighters that they must adhere to the laws of war and human rights law, and that violators will be held accountable," New York-based Human Rights Watch said.

BORDER VIOLENCE

Assad, whose family has ruled Syria for 42 years, has vowed to fight to the death in a conflict that has already killed an estimated 38,000 people and risks sucking in other countries.

His warplanes again struck homes in Ras al-Ain, a town on the northern border seized by rebels last week. Civilians fled over the border dividing it from the Turkish town of Ceylanpinar and thick plumes of smoke billowed upwards.

Syrian jets and artillery hit the town of Albu Kamal on the frontier with Iraq, where rebels have seized some areas, according to the mayor of the Iraqi border town of Qaim.

Tension also remained high on the Golan Heights, where Israeli gunners have retaliated against stray Syrian mortar fire landing on the occupied plateau in the previous two days.

Twenty months of conflict have created a vast humanitarian crisis, with more than 408,000 Syrians fleeing to neighboring countries and up to four million expected to need aid by early next year, according to the United Nations.

Fighting has also displaced 2.5 million civilians inside Syria, the Syrian Arab Red Crescent estimates.

"If anything, they believe it could be more; this is a very conservative estimate," Melissa Fleming, chief spokeswoman of the U.N. High Commissioner for Refugees, said in Geneva.

"So people are moving, really on the run, hiding," she told a news briefing. "They are difficult to count and access."

In Cairo, Arab League chief Nabil Elaraby urged opposition factions to join Alkhatib's group, formally known as the Syrian National Coalition for Opposition and Revolutionary Forces.

But although six Gulf Arab nations recognized the coalition as Syria's only legitimate representative on Monday, Iraq, Algeria and Lebanon prevented the League from following suit.

Iraq and Lebanon, with influential Shi'ite populations, have generally maintained better relations with Iran and with Assad, whose minority Alawite sect is an offshoot of Shi'ite Islam.

(Additional reporting by Shaimaa Fayed in Cairo and Jonathon Burch in Ceylanpinar, Turkey; Writing by Giles Elgood; Editing by Peter Graff)

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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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Dow, S&P edge up, but off highs; retail stocks lead

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Syria's new opposition coalition seeks recognition

DOHA (Reuters) - Syria's new opposition leadership, painfully forged under Arab and Western pressure, set out on Monday to gather recognition and wider backing for the struggle to take over the country from President Bashar al-Assad.

Violence flared again on the Turkish border and the line separating Syria from the Israeli-occupied Golan Heights, underscoring how the conflict is spilling into the region.

Reformist Damascus cleric Mouaz Alkhatib flew to Cairo to seek the Arab League's blessing for the new assembly that unanimously elected him as its leader the day before.

Alkhatib, 50, jailed several times for criticizing Assad, fled into exile this year. He has long promoted a liberal Islam tolerant of Syria's Christian, Alawite and other minorities.

"The first step towards recognition will take place at the Arab League," he told a news conference in Doha. The body would then seek endorsement from Assad's Arab and Western foes in the "Friends of Syria" group and from the U.N. General Assembly.

Russia, which with China has foiled U.N. action on Syria and views Assad's opponents as pawns of the West, urged the new body to negotiate and to reject outside meddling.

Asked if China recognized the new coalition, Foreign Ministry spokesman Hong Lei called on all parties to initiate "a political transition process guided by the Syrian people".

Egypt, Saudi Arabia and most Arab League members want Assad removed, although some, such as Iraq, Lebanon and Algeria, take a more neutral stance on Syria, where violence raged on.

BORDER BOMBING

Israeli tanks fired shells into Syria and scored "direct hits" in response to a Syrian mortar round that struck the Golan Heights, the Israeli military said.

It was the second time in two days that Israel has responded to what it said was errant Syrian fire. On Sunday the military said it had a fired a "warning shot" across the disengagement line, while on Monday it said it had fired back at "the source".

Syria and Israel have not fought over the Golan since the 1973 Middle East conflict, but are still formally at war.

At the northern end of the country, Syrian jets and helicopters attacked the rebel-held town of Ras al-Ain, with some bombs landing just meters (yards) from the Turkish border, sending scores of civilians fleeing into Turkey.

A Reuters reporter on the border said one warplane flew right along the border and appeared to stray across it at one point, as bombs sent up plumes of black smoke.

The Syrian Observatory for Human Rights said 12 people, including seven Islamist militants, had been killed in the air strikes on Ras al-Ain, which fell to rebels on Thursday during an advance into Syria's mixed Arab and Kurdish northeast.

Another opposition group put the Ras al-Ain death toll at 16. The pro-opposition Observatory, which tracks the violence from Britain, said 140 people were killed in Syria on Sunday. More than 38,000 people have been killed since March last year.

Turkey, whose border security worries were heightened by a sudden influx of 9,000 refugees within 24 hours last week, has consulted its NATO allies about possibly deploying Patriot surface-to-air missiles to deter Syria's air force.

Such a move could be a prelude to enforcing a no-fly zone in Syria, although Western powers have fought shy of this.

Riad Seif, a respected Syrian dissident who proposed the new opposition body, said no such military intervention was needed.

"We will protect ourselves by owning developed weapons and networks of defence missiles," he said, citing what he said was a promise by the Friends of Syria to provide "methods" to counter shelling and air strikes by Assad's forces.

NATO chief Anders Fogh Rasmussen said in Prague that the alliance would "do what it takes to defend Turkey", without referring specifically to Patriot missiles.

After days of wrangling in Qatar, Syrian politicians, rebels and representatives of ethnic and religious minorities finally laid aside their disputes and, under U.S. and Qatari pressure, agreed to form the Syrian National Coalition for Opposition and Revolutionary Forces, as a prelude to a government-in-exile.

INCLUSIVE APPROACH

Alkhatib, the former imam of the Umayyad Mosque in Damascus, called on Syrian soldiers to desert and all sects to unite.

"We demand freedom for every Sunni, Alawi, Ismaili, Christian, Druze, Assyrian ... and rights for all parts of the harmonious Syrian people," the soft-spoken preacher said.

It is unclear whether the Coalition can succeed where the exile Syrian National Council (SNC) failed in overcoming the mutual suspicions and in-fighting that have weakened the nearly 20-month-old drive to end four decades of Assad family rule.

"This is a significant step forward, because they finally seem to be forging a more broadly-based platform that includes the SNC but without the SNC taking the lion's share," said Salman Shaikh, director of the Doha Brookings Center.

He said military councils fighting inside Syria should be plugged into the new political structure as a way of encouraging coordinated international support for the uprising.

"We need a unified channel of support," he said. "The United States still seems hesitant about training and arming the opposition, and I believe this is a mistake, because the U.S. has the capacity to do it more so than anyone else."

Qatar said recognition for a temporary Syrian government would allow it to seek weapons from abroad.

Washington, which promoted the Doha unity talks, hailed the outcome, promising to support the Syrian National Coalition "as it charts a course toward the end of Assad's bloody rule and the start of the peaceful, just, democratic future...".

Assad, whose Alawite minority is rooted in Shi'ite Islam, has support from Shi'ite Iran and its Lebanese Shi'ite allies, but has few friends among the region's Sunni-led nations.

With Syria enduring a bloody military stalemate almost 20 months after peaceful protests first erupted, Assad's opponents hope a more cohesive opposition can turn the tide, winning more military and diplomatic support from allies wary of the growing role of Islamist militants, some of them linked to al Qaeda.

"For the first time, there are credible multinational pledges to support the Syrian revolution, politically and logistically," said London-based Syria analyst Rima Allaf.

"With the promise of real weapons, the different groups of the Free Syrian Army are more likely to regroup under a unified opposition and command, as it is to their benefit."

She said success for the new opposition body could make the position of Russia and China irrelevant. "Their direct support of Assad may continue, perhaps until the stakes change and they see no more benefit to holding on to a losing side."

(Additional reporting by Andrew Hammond in Doha, Khaled Yacoub Oweis in Amman, Jonathon Burch in Ceylanpinar, Crispian Balmer in Jerusalem, Arshad Mohammed in Washington, Michael Martina in Beijing and Steve Gutterman in Moscow; Writing by Alistair Lyon; Editing by Giles Elgood)

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