G20 steps back from currency brink, heat off Japan

MOSCOW (Reuters) - The Group of 20 nations declared on Saturday there would be no currency war and deferred plans to set new debt-cutting targets, underlining broad concern about the fragile state of the world economy.

Japan's expansive policies, which have driven down the yen, escaped direct criticism in a statement thrashed out in Moscow by policymakers from the G20, which spans developed and emerging markets and accounts for 90 percent of the world economy.

Analysts said the yen, which has dropped 20 percent as a result of aggressive monetary and fiscal policies to reflate the Japanese economy, may now continue to fall.

"The market will take the G20 statement as an approval for what it has been doing -- selling of the yen," said Neil Mellor, currency strategist at Bank of New York Mellon in London. "No censure of Japan means they will be off to the money printing presses."

After late-night talks, finance ministers and central bankers agreed on wording closer than expected to a joint statement issued last Tuesday by the Group of Seven rich nations backing market-determined exchange rates.

A draft communiqué on Friday had steered clear of the G7's call for economic policy not to be targeted at exchange rates. But the final version included a G20 commitment to refrain from competitive devaluations and stated monetary policy would be directed only at price stability and growth.

"The mood quite clearly early on was that we needed desperately to avoid protectionist measures ... that mood permeated quite quickly," Canadian Finance Minister Jim Flaherty told reporters, adding that the wording of the G20 statement had been hardened up by the ministers.

As a result, it reflected a substantial, but not complete, endorsement of Tuesday's proclamation by the G7 nations - the United States, Japan, Britain, Canada, France, Germany and Italy.

As with the G7 intervention, Tokyo said it gave it a green light to pursue its policies unchecked.

"I have explained that (Prime Minister Shinzo) Abe's administration is doing its utmost to escape from deflation and we have gained a certain understanding," Finance Minister Taro Aso told reporters.

"We're confident that if Japan revives its own economy that would certainly affect the world economy as well. We gained understanding on this point."

Flaherty admitted it would be difficult to gauge if domestic policies were aimed at weakening currencies or not.

NO FISCAL TARGETS

The G20 also made a commitment to a credible medium-term fiscal strategy, but stopped short of setting specific goals as most delegations felt any economic recovery was too fragile.

The communiqué said risks to the world economy had receded but growth remained too weak and unemployment too high.

"A sustained effort is required to continue building a stronger economic and monetary union in the euro area and to resolve uncertainties related to the fiscal situation in the United States and Japan, as well as to boost domestic sources of growth in surplus economies," it said.

A debt-cutting pact struck in Toronto in 2010 will expire this year if leaders fail to agree to extend it at a G20 summit of leaders in St Petersburg in September.

The United States says it is on track to meet its Toronto pledge but argues that the pace of future fiscal consolidation must not snuff out demand. Germany and others are pressing for another round of binding debt targets.

"We had a broad consensus in the G20 that we will stick to the commitment to fulfill the Toronto goals," German Finance Minister Wolfgang Schaeuble said. "We do not have any interest in U.S.-bashing ... In St. Petersburg follow-up-goals will be decided."

The G20 put together a huge financial backstop to halt a market meltdown in 2009 but has failed to reach those heights since. At successive meetings, Germany has pressed the United States and others to do more to tackle their debts. Washington in turn has urged Berlin to do more to increase demand.

Backing in the communiqué for the use of domestic monetary policy to support economic recovery reflected the U.S. Federal Reserve's commitment to monetary stimulus through quantitative easing, or QE, to promote recovery and jobs.

QE entails large-scale bond buying -- $85 billion a month in the Fed's case -- that helps economic growth but has also unleashed destabilising capital flows into emerging markets.

A commitment to minimize such "negative spillovers" was an offsetting point in the text that China, fearful of asset bubbles and lost export competitiveness, highlighted.

"Major developed nations (should) pay attention to their monetary policy spillover," Vice Finance Minister Zhu Guangyao was quoted by state news agency Xinhua as saying in Moscow.

Russia, this year's chair of the G20, admitted the group had failed to reach agreement on medium-term budget deficit levels and expressed concern about ultra-loose policies that it and other emerging economies say could store up trouble for later.

On currencies, the G20 text reiterated its commitment last November, "to move more rapidly toward mores market-determined exchange rate systems and exchange rate flexibility to reflect underlying fundamentals, and avoid persistent exchange rate misalignments".

It said disorderly exchange rate movements and excess volatility in financial flows could harm economic and financial stability.

(Additional reporting by Gernot Heller, Lesley Wroughton, Maya Dyakina, Tetsushi Kajimoto, Jan Strupczewski, Lidia Kelly, Katya Golubkova, Jason Bush, Anirban Nag and Michael Martina. Writing by Douglas Busvine. Editing by Timothy Heritage/Mike Peacock)

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Meteor explodes over central Russia, over 1,000 injured

CHELYABINSK, Russia (Reuters) - A meteor streaked across the sky and exploded over central Russia on Friday, raining fireballs over a wide area and causing a shock wave that smashed windows, damaged buildings and injured more than 1,000 people.

People heading to work in Chelyabinsk heard what sounded like an explosion, saw a bright light and then felt the shock wave, according to a Reuters correspondent in the industrial city 1,500 km (950 miles) east of Moscow.

The fireball, travelling at a speed of 30 km (19 miles) per second according to Russian space agency Roscosmos, had blazed across the horizon, leaving a long white trail that could be seen as far as 200 km (125 miles) away.

Car alarms went off, thousands of windows shattered and mobile phone networks were disrupted. The Interior Ministry said the meteor explosion, a very rare spectacle, also unleashed a sonic boom.

"I was driving to work, it was quite dark, but it suddenly became as bright as if it were day," said Viktor Prokofiev, 36, a resident of Yekaterinburg in the Urals Mountains.

"I felt like I was blinded by headlights."

The meteor, which weighed about 10 tons and may have been made of iron, entered Earth's atmosphere and broke apart 30-50 km (19-31 miles) above ground, according to Russia's Academy of Sciences.

No deaths were reported but the Emergencies Ministry said 20,000 rescue and clean-up workers were sent to the region after President Vladimir Putin told Emergencies Minister Vladimir Puchkov to ease the disruption and help the victims.

The Interior Ministry said about 1,200 people had been injured, at least 200 of them children, and most from shards of glass.

EXTREMELY RARE

The region of Chelyabinsk has long been a hub for the Russian military and defense industry, and it is often the site where artillery shells are decommissioned.

A local Emergencies Ministry official said meteor storms were extremely rare and Friday's incident may have been connected with an asteroid the size of an Olympic swimming pool that was due to pass Earth.

But an astronomer at Russia's Academy of Sciences, Sergei Barabanov, poured doubt on that report. He said there was no evidence to support the theory that the meteor had travelled with the asteroid or had broken off from it.

The European Space Agency, on its Twitter microblog, also said its experts had confirmed there was no link.

The regional governor in Chelyabinsk said the meteorite shower had caused more than $30 million in damage, and the Emergencies Ministry said some 300 buildings had been affected.

One piece of meteorite broke through the ice of nearby Cherbakul Lake, leaving a hole several meters wide.

Despite warnings not to approach any unidentified objects, some enterprising locals were hoping to cash in.

"Selling meteorite that fell on Chelyabinsk!" one prospective seller, Vladimir, said on a popular Russian auction website. He attached a picture of a black piece of stone that on Friday afternoon was priced at 1,488 roubles ($49.46).

WINDOWS BREAK, FRAMES BUCKLE

The early morning blast and ensuing shock wave blew out windows on Chelyabinsk's central Lenin Street, buckled some shop fronts and rattled apartment buildings in the city center.

"I was standing at a bus stop, seeing off my girlfriend," said Andrei, a local resident who did not give his second name. "Then there was a flash and I saw a trail of smoke across the sky and felt a shock wave that smashed windows."

Chelyabinsk city authorities urged people to stay indoors unless they needed to pick up their children from schools and kindergartens.

A wall was badly damaged at the Chelyabinsk Zinc Plant but a spokeswoman said no environmental threat resulted.

In 1908, a meteorite is thought to have devastated an area of more than 2,000 sq km (1,250 miles) in Siberia, breaking windows as far as 200 km (125 miles) from the point of impact.

The Emergencies Ministry described Friday's events as a "meteor shower in the form of fireballs" and said background radiation levels were normal. It urged residents not to panic.

Simon Goodwin, an astrophysics expert from Britain's University of Sheffield, said that roughly 1,000 to 10,000 tons of material rained down from space towards the earth every day, but most burned up in the atmosphere.

"While events this big are rare, an impact that could cause damage and death could happen every century or so. Unfortunately there is absolutely nothing we can do to stop impacts."

The meteor struck just as an asteroid known as 2012 DA14, about 46 meters (yards) in diameter, was due to pass closer to Earth - at a distance of 27,520 km (17,100 miles) - than any other known object of its size since scientists began routinely monitoring asteroids about 15 years ago.

(Additional reporting by Gabriela Baczynska in Moscow; Writing by Timothy Heritage and Thomas Grove; Editing by Mark Heinrich)

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Vin Diesel Covers Rihanna's 'Stay' - and Wins the Internet for the Day

By Cara Lynn Shultz

02/15/2013 at 02:30 PM EST

This video could break the Internet, and there aren't even any cats in it.

On Feb. 14, Vin Diesel posted a video of his heartfelt cover of Rihanna's song "Stay" to his Facebook page – and in a matter of hours, the video was shared more than 26,000 times, because who doesn't want to watch the musclebound Fast & Furious star sing?

In the clip, a shadowed Diesel says, "Happy V day amore," before launching into a karaoke-style rendition of the ballad as the video (where a nude Rihanna sings in the bathtub) is projected on the wall next to him.

The actor, clad in jeans and a jacket, shows off his vocal range, switching from a deep bass to a falsetto.

Diesel, who was named the Sexiest Man Alive on Facebook in 2010 ends the clip by repeating "Happy V day amore" three times and blowing a kiss, presumably to his 39 million Facebook fans.

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Study: Fish in drug-tainted water suffer reaction

BOSTON (AP) — What happens to fish that swim in waters tainted by traces of drugs that people take? When it's an anti-anxiety drug, they become hyper, anti-social and aggressive, a study found. They even get the munchies.

It may sound funny, but it could threaten the fish population and upset the delicate dynamics of the marine environment, scientists say.

The findings, published online Thursday in the journal Science, add to the mounting evidence that minuscule amounts of medicines in rivers and streams can alter the biology and behavior of fish and other marine animals.

"I think people are starting to understand that pharmaceuticals are environmental contaminants," said Dana Kolpin, a researcher for the U.S. Geological Survey who is familiar with the study.

Calling their results alarming, the Swedish researchers who did the study suspect the little drugged fish could become easier targets for bigger fish because they are more likely to venture alone into unfamiliar places.

"We know that in a predator-prey relation, increased boldness and activity combined with decreased sociality ... means you're going to be somebody's lunch quite soon," said Gregory Moller, a toxicologist at the University of Idaho and Washington State University. "It removes the natural balance."

Researchers around the world have been taking a close look at the effects of pharmaceuticals in extremely low concentrations, measured in parts per billion. Such drugs have turned up in waterways in Europe, the U.S. and elsewhere over the past decade.

They come mostly from humans and farm animals; the drugs pass through their bodies in unmetabolized form. These drug traces are then piped to water treatment plants, which are not designed to remove them from the cleaned water that flows back into streams and rivers.

The Associated Press first reported in 2008 that the drinking water of at least 51 million Americans carries low concentrations of many common drugs. The findings were based on questionnaires sent to water utilities, which reported the presence of antibiotics, sedatives, sex hormones and other drugs.

The news reports led to congressional hearings and legislation, more water testing and more public disclosure. To this day, though, there are no mandatory U.S. limits on pharmaceuticals in waterways.

The research team at Sweden's Umea University used minute concentrations of 2 parts per billion of the anti-anxiety drug oxazepam, similar to concentrations found in real waters. The drug belongs to a widely used class of medicines known as benzodiazepines that includes Valium and Librium.

The team put young wild European perch into an aquarium, exposed them to these highly diluted drugs and then carefully measured feeding, schooling, movement and hiding behavior. They found that drug-exposed fish moved more, fed more aggressively, hid less and tended to school less than unexposed fish. On average, the drugged fish were more than twice as active as the others, researcher Micael Jonsson said. The effects were more pronounced at higher drug concentrations.

"Our first thought is, this is like a person diagnosed with ADHD," said Jonsson, referring to attention deficit-hyperactivity disorder. "They become asocial and more active than they should be."

Tomas Brodin, another member of the research team, called the drug's environmental impact a global problem. "We find these concentrations or close to them all over the world, and it's quite possible or even probable that these behavioral effects are taking place as we speak," he said Thursday in Boston at the annual meeting of the American Association for the Advancement of Science.

Most previous research on trace drugs and marine life has focused on biological changes, such as male fish that take on female characteristics. However, a 2009 study found that tiny concentrations of antidepressants made fathead minnows more vulnerable to predators.

It is not clear exactly how long-term drug exposure, beyond the seven days in this study, would affect real fish in real rivers and streams. The Swedish researchers argue that the drug-induced changes could jeopardize populations of this sport and commercial fish, which lives in both fresh and brackish water.

Water toxins specialist Anne McElroy of Stony Brook University in New York agreed: "These lower chronic exposures that may alter things like animals' mating behavior or its ability to catch food or its ability to avoid being eaten — over time, that could really affect a population."

Another possibility, the researchers said, is that more aggressive feeding by the perch on zooplankton could reduce the numbers of these tiny creatures. Since zooplankton feed on algae, a drop in their numbers could allow algae to grow unchecked. That, in turn, could choke other marine life.

The Swedish team said it is highly unlikely people would be harmed by eating such drug-exposed fish. Jonsson said a person would have to eat 4 tons of perch to consume the equivalent of a single pill.

Researchers said more work is needed to develop better ways of removing drugs from water at treatment plants. They also said unused drugs should be brought to take-back programs where they exist, instead of being flushed down the toilet. And they called on pharmaceutical companies to work on "greener" drugs that degrade more easily.

Sandoz, one of three companies approved to sell oxazepam in the U.S., "shares society's desire to protect the environment and takes steps to minimize the environmental impact of its products over their life cycle," spokeswoman Julie Masow said in an emailed statement. She provided no details.

___

Online:

Overview of the drug: http://www.nlm.nih.gov/medlineplus/druginfo/meds/a682050.html

Read More..

Wall Street flat but on track for seventh straight weekly gain

NEW YORK (Reuters) - Stocks were little changed on Friday as investors once again found few reasons to make big bets with the S&P 500 on track to close out a seventh straight week of gains.

Equities have struggled for direction recently, with major indexes moving only slightly in the past several sessions. The biggest daily move for the S&P in the past five sessions was on Tuesday, when it rose less than 0.2 percent.

The benchmark index, up nearly 7 percent so far this year, is facing strong technical resistance near the 1,525 level. But investors, expecting the index to advance further in the quarter, have held back from locking in profits.

"There's no news that suggests the strong underpinning for stocks isn't appropriate. We may have gotten ahead of ourselves, but there's also an absence of bad news," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

Many investors are starting to look ahead to a debate in Washington over sequestration, automatic across-the-board spending cuts put in place as part of a larger congressional budget fight. The cuts are due to kick in March 1 unless lawmakers agree to an alternative.

"This had been far enough out to not yet become an impediment for stocks, but it will start to move into the forefront and cause people to take a bit of a jaundiced eye towards the market," said Luschini, who helps oversee about $54 billion in assets.

The New York Federal Reserve said manufacturing in New York state expanded for the first time in seven months, while Thomson Reuters/University of Michigan's preliminary reading of consumer sentiment rose from the prior month and beat expectations.

But U.S. manufacturing fell in January after a rise in the prior month.

Wall Street's gain thus far in 2013 has largely been driven by strong corporate earnings, while data indicated some weakening in economic conditions.

The Dow Jones industrial average <.dji> was up 11.27 points, or 0.08 percent, at 13,984.66. The Standard & Poor's 500 Index <.spx> was up 0.32 points, or 0.02 percent, at 1,521.70. The Nasdaq Composite Index <.ixic> was up 1.51 points, or 0.05 percent, at 3,200.17.

The benchmark S&P 500 is up 0.2 percent for the week and is on track to register its seventh straight week of gains by the close of trading Friday, a feat not seen since a run of consecutive weekly gains between December 2010 and January 2011.

A surge in merger and acquisition activity, with more than $158 billion in deals announced so far in 2013, has given further support to the equity market as it points to healthy valuations and bets on the economic outlook.

Herbalife shares pared earlier gains and were up 8.5 percent to $41.53, a day after billionaire investor Carl Icahn said in a regulatory filing that he now owns 13 percent of Herbalife and was ready to put it in play.

MeadWestvaco Corp climbed 10 percent to $34.90 as the biggest percentage gainer on the S&P index after activist investor Nelson Peltz's Trian Fund Management LP said in an SEC filing it had bought about 1.6 million shares of the packaging company.

Burger King Worldwide shares gained 4 percent to $17.25 after it beat estimates with a 94 percent rise in fourth-quarter profit, thanks to new menu additions.

Oil service stocks declined, weighed by a 5.6 percent drop in shares of Transocean to $55.99, after the rig contractor reported its fleet update and Deutsche Bank cut its rating on the stock to "sell." The PHLX oil service sector <.osx> lost 1.7 percent.

(Editing by Nick Zieminski)

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"Blade Runner" Pistorius charged with murdering girlfriend

JOHANNESBURG (Reuters) - South African "Blade Runner" Oscar Pistorius, a double amputee who became one of the biggest names in world athletics, was charged on Thursday with shooting dead his girlfriend at his upscale home in Pretoria.

Police said they opened a murder case after a 30-year-old woman was found dead at the Paralympic and Olympic star's house in the Silverlakes gated complex on the capital's outskirts.

Pistorius, 26, and his girlfriend, model Reeva Steenkamp, had been the only people in the house at the time of the shooting, police brigadier Denise Beukes told reporters, adding witnesses had been interviewed about the early morning incident.

"We are talking about neighbors and people that heard things earlier in the evening and when the shooting took place," Beukes said outside the heavily guarded residential complex.

Police said a 9mm pistol had been found at the scene.

Beukes said police were aware of previous incidents at the Pistorius house. "I can confirm that there has previously been incidents at the home of Mr Oscar Pistorious, of allegations of a domestic nature," she said.

Pistorius, who uses carbon fiber prosthetic blades to run, is due to appear in a Pretoria court on Friday.

"He is doing well but very emotional," his lawyer Kenny Oldwage told SABC TV, but gave no further comment.

A sports icon for triumphing over disability to compete with able-bodied athletes at the Olympics, his sponsorship deals, including one with sports apparel group Nike, are thought to be worth $2 million a year.

South Africa's M-Net cable TV channel said it was pulling adverts featuring Pistorius off air immediately after blanket coverage of the arrest in a country more used to honoring Pistorius as a national hero.

"WE ARE ALL DEVASTATED"

Steenkamp's colleagues in the modeling world were distraught. "We are all devastated. Her family is in shock," her agent, Sarita Tomlinson, tearfully told Reuters. "They did have a good relationship. Nobody actually knows what happened."

Pistorius, who was born without a fibula in both legs, was the first double amputee to run in the Olympics and reached the 400-metre semi-finals in London 2012.

In last year's Paralympics he suffered his first loss over 200 meters in nine years. After the race he questioned the legitimacy of Brazilian winner Alan Oliveira's prosthetic blades, though he was quick to express regret for the comments.

South Africa has some of the world's highest rates of violent crime, and many home owners have weapons to defend themselves against intruders, although Pistorius's complex is surrounded by a three-meter high wall and electric fence.

In 2004, Springbok rugby player Rudi Visagie shot dead his 19-year-old daughter after he mistakenly thought she was a robber trying to steal his car in the middle of the night.

Before the murder charge was announced, Johannesburg's Talk Radio 702 said the athlete may have mistaken Steenkamp for a burglar.

Pistorius was arrested in 2009 for assault after slamming a door on a woman and spent a night in police custody. Family and friends said it was just an accident and charges were dropped.

OLYMPIAN UNDERGOES POLICE TESTS

Steenkamp, a regular on the South African social scene, was reported to have been dating Pistorius for several months.

In the social pages of last weekend's Sunday Independent she described him as having "impeccable" taste. "His gifts are always thoughtful," she was quoted as saying.

Some of her last Twitter postings indicated she was looking forward to Valentine's Day on Thursday. "What do you have up your sleeve for your love tomorrow???" she posted.

Pistorius was on Thursday being processed through the police system. "At this stage he is on his way to a district surgeon for medical examination," the police brigadier said.

"When a person has been accused of a crime like murder they look at things like testing under the finger nails, taking a blood alcohol sample and all kinds of other test that are done. They are standard medical tests," Beukes said.

Pistorius is also sponsored by British telecoms firm BT, sunglasses maker Oakley and French designer Thierry Mugler.

"We are shocked by this terrible, tragic news. We await the outcome of the South African police investigation," a BT spokeswoman said before Pistorius was charged.

A Nike spokesman in London said before hearing of the murder charge that the company was "saddened by the news, but we have no further comment to make at this stage".

Pistorius also has a sponsorship deal with Icelandic prosthetics manufacturer Ossur.

"I can only say that our thoughts and prayers are with Oscar and the families involved in the tragedy," Ossur CEO Jon Sigurdsson told Reuters. "It is completely premature to discuss or speculate on our business relationship with him."

Neighbors expressed shock at the arrest of a "good guy".

"It is difficult to imagine an intruder entering this community, but we live in a country where intruders can get in wherever they want to," said one Silverlakes resident, who did not want to be named.

"Oscar is a good guy, an upstanding neighbor, and if he is innocent I feel for this guy deeply," he said.

(Additional reporting by Sherilee Lakmidas, David Dolan, Ed Cropley, Jon Herskovitz, Keith Weir and Kate Holton; Writing by Ed Cropley; Editing by Will Waterman)

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This Ring Rocks: See Engagement Bling Cobra Starship's Gabe Saporta Gave Erin Fetherston

Stylewatch
Style News Now

02/14/2013 at 01:52 PM ET

WireImage; Inset: Courtesy Erin Fetherston and Gabe Saporta

It’s official: Cobra Starship rocker Gabe Saporta and fashion designer Erin Fetherston are engaged!

Saporta popped the question to his bride-to-be on New Year’s Eve while on vacation in Barbados. “I woke up at dawn to go collect coral and flowers from the beach next to our cottage,” Saporta tells PEOPLE. “I used them to write out my proposal on our patio and then I woke Erin up in a frenzy to come see a ‘monkey’ that had appeared in our backyard. My sleepy-eyed bride quickly realized the only monkey that morning was me … and of course, she said,’Yes!’”

Saporta and Fetherson, who began dating in 2010, say they started seriously discussing marriage this past fall — and she was even involved in designing her ring. But Saporta couldn’t resist pulling a few fake-outs when it came to finally popping the question.

“Since she knew about the ring, surprising her with a proposal was going to prove a challenge,” he says. “My first step was to psych her out. On Christmas Eve, I gave her a nicely wrapped ring-box that did non contain her engagement ring. It contained a sick amethyst cocktail ring instead.”

Fetherston’s actual engagement ring, however, is no joke. Designed by Lorraine Schwartz, it’s an emerald-cut stone set in a pavé basket on a pavé band. “The platinum was oxidized to give the ring a vintage feeling,” says Fetherson. “I love it because it’s luminous and romantic, with the right amount of edge.”

While the couple are still in the planning stages for their big day, Fetherston already has ideas for her dress and ceremony. “I will definitely design my own dress,” she says, “and my fairytale aesthetic will undoubtedly influence the look and feel of the wedding.”

As for Saporta, who is recording a new album with his band, he says, “It’s gonna be a classy shindig.”

–Kevin O’Donnell

PHOTOS: SEE MORE GORGEOUS STAR ENGAGEMENT RINGS HERE!

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Study: Fish in drug-tainted water suffer reaction

BOSTON (AP) — What happens to fish that swim in waters tainted by traces of drugs that people take? When it's an anti-anxiety drug, they become hyper, anti-social and aggressive, a study found. They even get the munchies.

It may sound funny, but it could threaten the fish population and upset the delicate dynamics of the marine environment, scientists say.

The findings, published online Thursday in the journal Science, add to the mounting evidence that minuscule amounts of medicines in rivers and streams can alter the biology and behavior of fish and other marine animals.

"I think people are starting to understand that pharmaceuticals are environmental contaminants," said Dana Kolpin, a researcher for the U.S. Geological Survey who is familiar with the study.

Calling their results alarming, the Swedish researchers who did the study suspect the little drugged fish could become easier targets for bigger fish because they are more likely to venture alone into unfamiliar places.

"We know that in a predator-prey relation, increased boldness and activity combined with decreased sociality ... means you're going to be somebody's lunch quite soon," said Gregory Moller, a toxicologist at the University of Idaho and Washington State University. "It removes the natural balance."

Researchers around the world have been taking a close look at the effects of pharmaceuticals in extremely low concentrations, measured in parts per billion. Such drugs have turned up in waterways in Europe, the U.S. and elsewhere over the past decade.

They come mostly from humans and farm animals; the drugs pass through their bodies in unmetabolized form. These drug traces are then piped to water treatment plants, which are not designed to remove them from the cleaned water that flows back into streams and rivers.

The Associated Press first reported in 2008 that the drinking water of at least 51 million Americans carries low concentrations of many common drugs. The findings were based on questionnaires sent to water utilities, which reported the presence of antibiotics, sedatives, sex hormones and other drugs.

The news reports led to congressional hearings and legislation, more water testing and more public disclosure. To this day, though, there are no mandatory U.S. limits on pharmaceuticals in waterways.

The research team at Sweden's Umea University used minute concentrations of 2 parts per billion of the anti-anxiety drug oxazepam, similar to concentrations found in real waters. The drug belongs to a widely used class of medicines known as benzodiazepines that includes Valium and Librium.

The team put young wild European perch into an aquarium, exposed them to these highly diluted drugs and then carefully measured feeding, schooling, movement and hiding behavior. They found that drug-exposed fish moved more, fed more aggressively, hid less and tended to school less than unexposed fish. On average, the drugged fish were more than twice as active as the others, researcher Micael Jonsson said. The effects were more pronounced at higher drug concentrations.

"Our first thought is, this is like a person diagnosed with ADHD," said Jonsson, referring to attention deficit-hyperactivity disorder. "They become asocial and more active than they should be."

Tomas Brodin, another member of the research team, called the drug's environmental impact a global problem. "We find these concentrations or close to them all over the world, and it's quite possible or even probable that these behavioral effects are taking place as we speak," he said Thursday in Boston at the annual meeting of the American Association for the Advancement of Science.

Most previous research on trace drugs and marine life has focused on biological changes, such as male fish that take on female characteristics. However, a 2009 study found that tiny concentrations of antidepressants made fathead minnows more vulnerable to predators.

It is not clear exactly how long-term drug exposure, beyond the seven days in this study, would affect real fish in real rivers and streams. The Swedish researchers argue that the drug-induced changes could jeopardize populations of this sport and commercial fish, which lives in both fresh and brackish water.

Water toxins specialist Anne McElroy of Stony Brook University in New York agreed: "These lower chronic exposures that may alter things like animals' mating behavior or its ability to catch food or its ability to avoid being eaten — over time, that could really affect a population."

Another possibility, the researchers said, is that more aggressive feeding by the perch on zooplankton could reduce the numbers of these tiny creatures. Since zooplankton feed on algae, a drop in their numbers could allow algae to grow unchecked. That, in turn, could choke other marine life.

The Swedish team said it is highly unlikely people would be harmed by eating such drug-exposed fish. Jonsson said a person would have to eat 4 tons of perch to consume the equivalent of a single pill.

Researchers said more work is needed to develop better ways of removing drugs from water at treatment plants. They also said unused drugs should be brought to take-back programs where they exist, instead of being flushed down the toilet. And they called on pharmaceutical companies to work on "greener" drugs that degrade more easily.

Sandoz, one of three companies approved to sell oxazepam in the U.S., "shares society's desire to protect the environment and takes steps to minimize the environmental impact of its products over their life cycle," spokeswoman Julie Masow said in an emailed statement. She provided no details.

___

Online:

Overview of the drug: http://www.nlm.nih.gov/medlineplus/druginfo/meds/a682050.html

Read More..

Wall Street flat near multi-year highs, M&A helps

NEW YORK (Reuters) - Stocks were little changed on Thursday as investors found few reasons to keep pushing prices higher with major averages near multi-year highs, though a flurry of merger deals kept indexes steady.

Wall Street has rallied lately, with the S&P 500 briefly hitting its highest intraday level since November 2007 in Wednesday's session. Still, there are few obvious catalysts to continue the rally, and while the S&P is on track for its third straight day of gains, none of those daily gains was more than 0.2 percent.

Shares of H.J. Heinz Co jumped 20 percent to $72.40 after it said Warren Buffett's Berkshire Hathaway and 3G Capital will buy the food company for $72.50 a share, or $28 billion including debt. Berkshire's class B shares rose 1.3 percent to $99.22.

Also supporting the market was data showing the number of Americans filing new claims for unemployment benefits fell more than expected in the latest week. The CBOE Volatility index <.vix> fell 1.4 percent, dropping to 12.8.

"While I'm not bearish, I don't see many upside motivations at these levels," said Donald Selkin, chief market strategist at National Securities in New York, who cited the low level of the VIX as a sign the market was overbought.

"We need to digest some of our gains to go higher, but people are so eager to buy on the dips that we're not even seeing dips anymore. People are just chasing the market higher."

Equities have struggled to break above their current levels, where they have been hovering for almost two weeks. The S&P 500 is up more than 6 percent so far this year.

Stocks fell earlier after a report the euro zone's gross domestic product contracted by the steepest amount since the first quarter of 2009. In addition, Japan's GDP shrank 0.1 percent in the fourth quarter, crushing expectations of a modest return to growth.

The Dow Jones industrial average <.dji> was down 10.21 points, or 0.07 percent, at 13,972.70. The Standard & Poor's 500 Index <.spx> was up 1.21 points, or 0.08 percent, at 1,521.54. The Nasdaq Composite Index <.ixic> was up 1.12 points, or 0.03 percent, at 3,197.99.

Constellation Brands soared more than 38 percent to $43.93 after AB InBev's deal to take over Mexican brewer Grupo Modelo was revised to grant Constellation perpetual rights to distribute Corona and other Modelo brands in the United States. U.S. shares of AB InBev gained 5.1 percent to $92.72.

American Airlines and US Airways Group said they plan to merge in a deal that will form the world's biggest air carrier, with an equity valuation of about $11 billion. US Airways shares fell 9.1 percent to $13.32.

Weakness in Europe contributed to a 5 percent drop in revenue from the region for Cisco Systems , which nonetheless beat estimates as it reported its results late Wednesday. The company's shares slid 1.3 percent to $20.87.

General Motors Co reported a weaker-than-expected fourth-quarter profit, also citing bigger losses in Europe alongside lower prices in its core North American market. The stock was off 2.8 percent at $27.88.

(Editing by Nick Zieminski)

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Ovation for Pope Benedict at final public mass

VATICAN CITY (Reuters) - A capacity crowd in St Peter's Basilica gave Pope Benedict a thunderous standing ovation on Wednesday at an emotional last public Mass before he resigns at the end of the month.

"Thank you. Now, let's return to prayer," the 85-year-old pontiff said, bringing an end to several minutes of applause that clearly moved him. In an unusual gesture, bishops took off their mitres in a sign of respect and a few of them wept.

One of the priests at the altar, which according to tradition rests above the tomb of St Peter, took out a handkerchief to dry his tears.

The Mass was moved to St Peter's from a venue in Rome so more people could attend. Hundreds of others waited outside.

Hours earlier in the Vatican's modern audience hall, a visibly moved Benedict tried to assure his worldwide flock, saying he was confident his decision to step down would not hurt the Church.

The Vatican, meanwhile, announced that a conclave to elect his successor would start sometime between March 15 and March 20, in keeping with Church rules about the timing of such gatherings after the papal see becomes vacant.

"Continue to pray for me, for the Church and for the future pope," he said in unscripted remarks at the start of his weekly general audience, his first public appearance since his shock decision on Monday that he will step down on February 28.

It was the first time Benedict, 85, who will retire to a convent inside the Vatican, exchanging the splendor of his 16th century Apostolic Palace for a sober modern residence, had uttered the words "future pope" in public.

Church officials are still so stunned by the move that the Vatican experts have yet to decide what his title will be and whether he will continue to wear the white of a pope, the red of a cardinal or the black of an ordinary priest.

His voice sounded strong at the audience but he was clearly moved and his eyes appeared to be watering as he reacted to the thunderous applause in the Vatican's vast audience hall, packed with more than 8,000 people.

In brief remarks in Italian that mirrored those he read in Latin to stunned cardinals on Monday he appeared to try to calm Catholics' fears of the unknown.

He message was that God would continue to guide the Church.

EXAMINATION OF CONSCIENCE

"I took this decision in full freedom for the good of the Church after praying for a long time and examining my conscience before God," he said.

He said he was "well aware of the gravity of such an act," but also aware that he no longer had the strength required to run the 1.2 billion member Roman Catholic Church, which has been beset by a string of scandals both in Rome and round the world.

Benedict said he was sustained by the "certainty that the Church belongs to Christ, who will never stop guiding it and caring for it" and suggested that the faithful should also feel comforted by this.

He said that he had "felt almost physically" the affection and kindness he had received since he announced the decision.

When Benedict resigned on Monday, the Vatican spokesman said the pontiff did not fear schism in the Church after his resignation.

Some 115 cardinals under the age of 80 will be eligible to enter a secret conclave to elect his successor.

Cardinals around the world have already begun informal consultations by phone and email to construct a profile of the man they think would be best suited to lead the Church in a period of continuing crisis.

The conservative Benedict has appointed more than half of the cardinals who will elect his successor so it is unlikely the new man will tamper with any teachings such as the ban on artificial birth control or women priests.

But many in the Church have been calling for the election of someone who they say will be a better listener to other opinions in the Church.

The likelihood that the next pope would be a younger man and perhaps a non-Italian, was increasing, particularly because of the many mishaps caused by Benedict's mostly Italian top aides.

Benedict has been faulted for putting too much power in the hands of his friend, Secretary of State Cardinal Tarcisio Bertone. Critics of Bertone, effectively the Vatican's chief administrator, said he should have prevented some papal mishaps and bureaucratic blunders.

ILL-SERVED POPE

"These scandals, these miscommunications, in many cases were caused by Pope Benedict's own top aides and I think a lot of Catholics around the world think that he was perhaps ill-served by some of the cardinals here," said John Thavis, author of a new book, The Vatican Diaries.

Benedict's papacy was rocked by crises over sex abuse of children by priests in Europe and the United States, most of which preceded his time in office but came to light during it.

His reign also saw Muslim anger after he compared Islam with violence. Jews were upset over rehabilitation of a Holocaust denier. During a scandal over the Church's business dealings, his butler was accused of leaking his private papers.

"When cardinals arrive here for the conclave ... they are going to have this on their mind, they're going to take a good hard look at how Pope Benedict was served, and I think many of them feel that the burden of the papacy that finally weighed so heavy on Benedict was caused in part by some of this in-fighting (among his administration)," Thavis told Reuters.

Vatican spokesman Father Federico Lombardi urged the faithful to remain confident in the Church and its future.

"Those who may feel a bit disorientated or stunned by this, or have a hard time understanding the Holy Father's decision should look at it in the context of faith and the certainty that Christ will support his Church," Lombardi said.

Lombardi said that on his last day in office, Benedict would receive cardinals in a farewell meeting and after February 28 his ring of office, used to seal official documents, would be destroyed just as if he had died.

(Reporting by Philip Pullella; Editing by Giles Elgood)

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