UN warns risk of hepatitis E in S. Sudan grows


GENEVA (AP) — The United Nations says an outbreak of hepatitis E has killed 111 refugees in camps in South Sudan since July, and has become endemic in the region.


U.N. refugee agency spokesman Adrian Edwards says the influx of people to the camps from neighboring Sudan is believed to be one of the factors in the rapid spread of the contagious, life-threatening inflammatory viral disease of the liver.


Edwards said Friday that the camps have been hit by 6,017 cases of hepatitis E, which is spread through contaminated food and water.


He says the largest number of cases and suspected cases is in the Yusuf Batil camp in Upper Nile state, which houses 37,229 refugees fleeing fighting between rebels and the Sudanese government.


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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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NATO air strikes for Afghan security forces must end: Karzai


KABUL (Reuters) - Afghan security forces will be banned from calling for NATO air strikes in residential areas to help in their operations, President Hamid Karzai said on Saturday, three days after 10 civilians died in such a strike in the country's east.


NATO air strikes and civilian casualties have become a significant stress point in the relationship between Karzai and his international backers. The issue threatens to further destabilize a precarious international withdrawal, to be completed by the end of 2014.


Addressing a conference at Kabul's National Military Academy, Karzai expressed his anger about the strike and said he would issue a decree on Sunday preventing any resort to such measures by his forces.


"Tomorrow, I will issue an decree stating that under no conditions can Afghan forces request foreign air strikes on Afghan homes or Afghan villages during operations," Karzai told more than 1,000 officers, commandos and students.


If issued, such a decree would for the first time bar Afghan security forces from relying on NATO air strikes, and increase pressure on them as they increasingly assume control of security from international forces.


NATO and its partners are racing against the clock to train Afghanistan's 350,000-strong security forces, though questions remain over how they well the Afghans will be able to tackle the insurgency in the face of intensifying violence.


On Wednesday, a NATO air strike -- requested during an operation in eastern Kunar province involving Afghan and American troops targeting Taliban fighters linked to al Qaeda -- struck two houses in a village in the Shultan valley.


The strike killed 10 people, including five children and four women. Four Taliban fighters, who had links to al Qaeda, according to Afghan officials, were also killed.


STRIKES CRITICAL IN DIFFICULT AREAS


Foreign air power is crucial for Afghan forces, particularly in areas like Kunar and Nuristan, which are covered with forests and rough terrain, making ground operations difficult.


Nuristan and Kunar also share a long, porous borders with lawless areas inside Pakistan, known to be home to foreign fighters and al Qaeda members.


Karzai said he had been told that the air strike was requested by the Afghan spy agency, the National Directorate of Security (NDS).


"If this is true, it is very regrettable and it is very shameful. How could they ask foreigners to send planes and bomb our own houses?" he said.


According to Kunar officials one of the dead insurgents was identified as a Pakistani citizen and Taliban leader named Rocketi. A second was identified as a Taliban commander called Shahpour.


A spokesman for NATO's International Security Assistance Force (ISAF) said there would be no comment on any presidential decree until it was actually issued.


In June last year, following the deaths of 18 civilians in a NATO air strike in the country's east, the ISAF commander at the time, General John Allen, issued a directive restricting their use against insurgents "within civilian dwellings".


In a meeting with ISAF Commander General Joseph Dunford following Wednesday's bombing, Karzai stressed Allen's 2012 directive and said such attacks must never recur.


Tensions have risen between Karzai and his foreign backers since his comments in October that the United States and its allies should target supporters of terrorism in Pakistan and stop fighting their war in Afghan villages.


The ISAF says it has reduced civilian casualties in recent years, and that insurgents such as the Taliban are now responsible for 84 per cent of all such deaths and injuries.


(Additional Reporting by Mohammad Anwar and Hamid Shalizi; Writing by Dylan Welch; Editing by Ron Popeski)



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Stories You Loved: Mariska Hargitay Loves Her Curves from Motherhood















02/16/2013 at 02:30 PM EST







Mariska Hargitay


Courtesy Ladies Home Journal


In another week of tragedy, it was a breath of fresh air to read something lighthearted, like Mariska Hargitay's outlook on her body after baby.

Readers loved the reason why the Law & Order: Special Victims Unit star, 49, embraces her curves.

"I love my curves because they scream, 'I'm a mama!' " the actress said. "I'm the girl who started wearing maternity pants about an hour after I found out I was pregnant because I was so excited about becoming a mom."

Curves aside, Hargitay acknowledges that she no longer has the body she had when she was younger, but she's just fine with it.

"Things are sagging a bit – I'm not going to lie," she says. "But am I going to be upset about the sag or am I going to look at my three gorgeous kids and my husband and count my lucky stars? I try to focus on who I am rather than who I'm not."

For the full story, click here.

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UN warns risk of hepatitis E in S. Sudan grows


GENEVA (AP) — The United Nations says an outbreak of hepatitis E has killed 111 refugees in camps in South Sudan since July, and has become endemic in the region.


U.N. refugee agency spokesman Adrian Edwards says the influx of people to the camps from neighboring Sudan is believed to be one of the factors in the rapid spread of the contagious, life-threatening inflammatory viral disease of the liver.


Edwards said Friday that the camps have been hit by 6,017 cases of hepatitis E, which is spread through contaminated food and water.


He says the largest number of cases and suspected cases is in the Yusuf Batil camp in Upper Nile state, which houses 37,229 refugees fleeing fighting between rebels and the Sudanese government.


Read More..

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















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


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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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