Epic Fashion Faceoff: Nicki Minaj vs. Julie Bowen vs. Paula Patton

Stylewatch
Style News Now

11/19/2012 at 01:00 PM ET

BroadImage; Getty; WireImage

What do Nicki Minaj, Julie Bowen and Paula Patton have in common? Before Sunday night, it probably wasn’t much. But now all three are bound by one very chic name: Monique Lhuillier.

Minaj wore Lhuillier’s silk faille strapless trumpet gown to the American Music Awards on Sunday, opting for the lime-green hue. We were actually surprised to see the star wearing something so … conventional, but she kept her styling expectedly over-the-top, adding a candy-pink lip, unruly platinum blonde waves and a multicolored statement necklace.

Conversely, Bowen stepped out of her comfort zone when she wore the gown to the 2012 Emmy Awards, telling PEOPLE, “I go very dark in colors, olive green being my most exciting shade. So I wanted color. And I think I delivered.” She accessorized the strapless creation with a metallic clutch, sparkly danglers and a half-up, half-down ‘do.

But the first star to get her hands on the dress — in lemon yellow — was Patton, for the 2012 Golden Globes. The star paired the frock with an understated hairstyle, along with a nude lip and starburst studs. Three very different women, one very classic gown. Tell us: Who do you think wore their Monique Lhuillier dress best? Minaj, Bowen or Patton? Vote below!

–Jennifer Cress

PHOTOS: VOTE ON MORE FASHION FACEOFFS!

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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 bounces on hopes for budget talk success

NEW YORK (Reuters) - Wall Street climbed on Monday, putting the S&P 500 on track for its second straight advance as investors were encouraged by the early tone in talks to tackle the fiscal crunch and data that showed continued improvement in the housing recovery.

The S&P 500 is up more than 2 percent over the past two sessions as rhetoric from legislators has provided investors with some hope a deal could be reached to stave off the looming "fiscal cliff," a series of tax and spending changes that will start to come into effect in the new year.

Before the recent gains, the benchmark S&P index had fallen 5.3 percent since Election Day, as concerns about Washington's ability to reach an agreement became the top focus for investors.

Over the weekend, leading Democratic and Republican lawmakers expressed confidence that they could reach a deal to avert the "fiscal cliff", even as they laid down markers on raising taxes and spending cuts that may make any agreement more difficult.

But the recent climb could prove to simply be a bounce from the sharp declines, with market volatility expected to be heightened by the perception of negotiation progress.

"There has been a pretty steady downward move for a while so you are going to have days like this, especially when the news is good," said Uri Landesman, president at Platinum Partners in New York.

"In general, what you are going to watch is if there is no deal, you are going to see the market trade down during the week."

Stronger-than-expected earnings from Lowe's and Tyson Foods, as well as encouraging housing data, also contributed to the market's advance. Tyson and Lowe's were the top two percentage gainers on the S&P 500.

U.S. home resales unexpectedly increased in October, while separate data showed homebuilder sentiment rose to its highest level in over six years in November.

The PHLX Housing Index <.hgx> rose 1.7 percent.

The Dow Jones industrial average <.dji> gained 173.72 points, or 1.38 percent, to 12,762.03. The Standard & Poor's 500 Index <.spx> rose 22.52 points, or 1.66 percent, to 1,382.40. The Nasdaq Composite Index <.ixic> climbed 51.59 points, or 1.81 percent, to 2,904.72.

The S&P was holding near its 200-day moving average at around 1,382, which has acted as a resistance level since a drop below the technically significant mark on November 8.

Shares of Lowe's Cos Inc , the world's No. 2 home improvement chain, jumped 6.1 percent to $33.94 after the company reported higher-than-expected quarterly profit and raised its full-year sales forecast.

Tyson Foods Inc likewise beat expectations and gave an upbeat forecast, sending its stock up 7.8 percent at $18.20.

Intel shares edged lower, down 0.2 percent to $20.15 after the company said its chief executive will retire in May.

Commodities prices surged, boosting shares of resource companies. Freeport-McMoRan rose 3.8 percent to $38.18, while U.S. Steel rose 4.3 percent to $20.94. The S&P materials sector <.gspm> advanced 2.4 percent.

(Reporting by Chuck Mikolajczak)

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Israeli air strike kills 11 civilians in Gaza: Hamas

GAZA/JERUSALEM (Reuters) - An Israeli missile killed at least 11 Palestinian civilians including four children in Gaza on Sunday, medical officials said, in an apparent attack on a top militant that brought a three-storey home crashing down.

International pressure for a ceasefire seemed certain to mount in response to the deadliest single incident in five days of Palestinian rocket attacks on Israel and Israeli air strikes on the Gaza Strip.

Israel gave off signs of a possible ground invasion of the Hamas-run enclave as the next stage in its offensive, billed as a bid to stop Palestinian rocket fire into the Jewish state. It also spelt out its conditions for a truce.

U.S. President Barack Obama said that while Israel had a right to defend itself against the salvoes, it would be "preferable" to avoid a military thrust into the Gaza Strip, a narrow, densely populated coastal territory. Such an assault would risk high casualties and an international outcry.

A spokesman for the Hamas-run Interior Ministry said 11 people, all of them civilians, were killed when an Israeli missile flattened the home of the Dalu family. Medics said four women and four children were among the dead.

Israel's chief military spokesman said Yihia Abayah, a senior commander of rocket operations in the Gaza Strip, had been the target.

The spokesman, Yoav Mordechai, told Israel's Channel 2 television he did not know whether Abayah was killed, "but the outcome was that there were civilian casualties". He made no direct mention of the destroyed dwelling.

Prime Minister Benjamin Netanyahu said earlier that he had assured world leaders that Israel was doing its utmost to avoid causing civilian casualties in the military showdown with Hamas.

"The massacre of the Dalu family will not pass without punishment," Hamas's armed wing said in a statement.

In other air raids on Sunday, two Gaza City media buildings were hit, witnesses said. Eight journalists were wounded and facilities belonging to Hamas's Al-Aqsa TV as well as Britain's Sky News were damaged.

An employee of the Beirut-based al Quds television station lost his leg in the attack, local medics said.

The Israeli military said the strike targeted a rooftop "transmission antenna used by Hamas to carry out terror activity", and that journalists in the building had effectively been used as human shields by Gaza's rulers.

For their part, Gaza militants launched dozens of rockets into Israel and targeted its commercial capital, Tel Aviv, for a fourth day with one attack in the morning and another after nightfall.

Israel's "Iron Dome" missile shield shot down all three rockets, but falling debris from the daytime interception hit a car, which caught fire. Its driver was not hurt.

In scenes recalling Israel's 2008-2009 winter invasion of Gaza, tanks, artillery and infantry massed in field encampments along the sandy, fenced-off border. Military convoys moved on roads in the area newly closed to civilian traffic.

Netanyahu said Israel was ready to widen its offensive.

"We are exacting a heavy price from Hamas and the terrorist organisations and the Israel Defence Forces are prepared for a significant expansion of the operation," he said at a cabinet meeting, giving no further details.

Gaza health officials said 69 Palestinians - about half of them women and children - have been killed in Gaza since the Israeli offensive began, with hundreds wounded.

The Israeli military said 544 rockets fired from Gaza have hit Israel since Wednesday, killing three civilians and wounding dozens. Some 302 were intercepted and 99 failed to reach Israel and landed inside the Gaza Strip, it added.

Israel's declared goal is to deplete Gaza arsenals and force the Islamist Hamas to stop rocket fire that has bedevilled Israeli border towns for years and is now displaying greater range, putting Tel Aviv and Jerusalem in the crosshairs.

Israel withdrew settlers from Gaza in 2005 and two years later Hamas took control of the impoverished enclave, which the Israelis have kept under blockade.

OBAMA CAUTIONS AGAINST GROUND CAMPAIGN

At a news conference during a visit to the Thai capital Bangkok, Obama said Israel has "every right to expect that it does not have missiles fired into its territory".

He added: "If this can be accomplished without a ramping up of military activity in Gaza that is preferable. That's not just preferable for the people of Gaza, it's also preferable for Israelis because if Israeli troops are in Gaza they're much more at risk of incurring fatalities or being wounded," he said.

Obama said he had been in regular contact with Egyptian and Turkish leaders - to secure their mediation in bringing about a halt to rocket barrages by Hamas and other Islamist militants.

"We're going to have to see what kind of progress we can make in the next 24, 36, 48 hours," he added.

Israeli officials declined to confirm or deny reports that an Israeli negotiator had flown to Cairo to discuss a ceasefire.

Egyptian President Mohamed Mursi said in Cairo, as his security deputies sought to broker a truce with Hamas leaders, that "there are some indications that there is a possibility of a ceasefire soon, but we do not yet have firm guarantees".

Silvan Shalom, one of Netanyahu's deputies, said: "There are contacts, but they are currently far from being concluded."

U.N. Secretary-General Ban Ki-moon will be in Egypt on Monday for talks with Mursi, the foreign ministry in Cairo said. U.N. diplomats earlier said Ban was expected in Israel and Egypt this week to push for an end to the fighting.

Listing Israel's terms for ceasing fire, Moshe Yaalon, another deputy to the prime minister, wrote on Twitter: "If there is quiet in the south and no rockets and missiles are fired at Israel's citizens, nor terrorist attacks engineered from the Gaza Strip, we will not attack."

Israel's operation has so far drawn Western support for what U.S. and European leaders have called its right to self-defence, but there was also a growing number of appeals from them to seek an end to the hostilities.

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Wii U: New console launches in a sea of gadgets

NEW YORK (AP) — In the six years since the last major video game system launched, Apple unveiled the iPhone and the iPad, “Angry Birds” invaded smartphones and Facebook reached a billion users. In the process, scores of video game consoles were left to languish in living rooms alongside dusty VCRs and disc players.

On Sunday, Nintendo Co. is launching the Wii U, a game machine designed to appeal both to the original Wii’s casual audience and the hardcore gamers who skip work to be among the first to play the latest “Call of Duty” release. Just like the Wii U’s predecessor, the Wii, which has sold nearly 100 million units worldwide since 2006, the new console’s intended audience “truly is 5 to 95,” says Reggie Fils-Aime, the president of Nintendo of America, the Japanese company’s U.S. arm.

But the Wii U arrives in a new world. Video game console sales have been falling, largely because it’s been so long since a new system has launched. Most people who wanted an Xbox 360, PlayStation 3 or a Wii already have one. Another reason: People in the broad 5-to-95 age range have shifted their attention to games on Facebook, tablet computers and mobile phones.

U.S. video game sales last month, including hardware, software and accessories, totaled $ 755.5 million, according to the research firm NPD Group. In October 2007, the figure stood at $ 1.1 billion.

The Wii U is likely to do well during the holiday shopping season, analysts believe —so well that shoppers may see shortages. But the surge could peter out in 2013. The Wii U is not expected to be the juggernaut that the Wii was in its heyday, according to research firm IHS iSuppli. The Wii outsold its competitors, the Xbox 360 and the PlayStation 3, in its first four years on sale, logging some 79 million units by the end of 2010. By comparison, IHS expects the Wii U to sell 56.7 million in its first four years.

In the age of a million gadgets and lean wallets, the storied game company faces a new challenge: convincing people that they need a new video game system rather than, say, a new iPad.

The Wii U, which starts at $ 300, isn’t lacking in appeal. It allows for “asymmetrical game play,” meaning two people playing the same game can have entirely different experiences depending on whether they use a new tablet-like controller called the GamePad or the traditional Wii remote. The GamePad can also be used to play games without using a TV set, as you would on a regular tablet. And it serves as a fancy remote controller to navigate a TV-watching feature called TVii, which will be available in December.

Nintendo, known for iconic game characters such as Mario, Donkey Kong and Zelda, is expected to sell the consoles quickly in the weeks leading up to the holidays. After all, it’s been six long years and sons, daughters, brothers and sisters are demanding presents. GameStop Corp., the world’s No. 1 video game retailer, said last week that advance orders sold out and it has nearly 500,000 people on its Wii U waitlist.

Even so, it’s a “very, very crowded space in consumer electronics” this holiday season, notes Ben Bajarin, a principal analyst at Creative Strategies who covers gaming.

Apple‘s duo of iPads, the full-size model and a smaller version called the Mini, will be competing for shoppers’ attention. Not to be outdone, Amazon.com Inc. has launched a trove of Kindle tablets and e-readers in time for the holidays. These range from the Paperwhite, a touch-screen e-reader, to the Kindle Fire HD, which features a color screen and can work with a cellular data plan. Then there are the new laptops and cheaper, thinner “ultrabooks” featuring Microsoft’s new Windows 8 operating system —not to mention smartphones from Apple Inc., Samsung and other manufacturers.

“Nintendo has to be a cut above the noise here,” Bajarin says.

The Wii U is the first major game console to launch in years, but in some ways Nintendo is merely catching up with the HD trend. Sony Corp. and Microsoft Corp. began selling their own powerful, high-definition consoles six and seven years ago, respectively. Both Sony and Microsoft are expected to unveil new game consoles in 2013.

Baird analyst Colin Sebastian thinks the question is not how well the Wii U will do during the holidays, but how it will fare three and six months later.

Gaming has changed significantly in the past six years, especially when it comes to the type of mass-audience experiences that serve as Nintendo‘s bread and butter. Zynga Inc., the online game company behind Facebook games such as “FarmVille” and “Texas HoldEm Poker,” was founded in 2007. The first “Angry Birds” game, that addictive, quirky distraction that has players flinging cartoon birds at structures hiding smug green pigs launched in late 2009. The first iPad, of course, came out in 2010 —three years after the first iPhone.

Fils-Aime acknowledges that Nintendo competes in the broad entertainment landscape, “minute-by-minute,” for consumers’ time.

“That’s true today and that was true 20 years ago,” he says, adding that Nintendo‘s challenge is communicating to people “what is so fun and appealing about the new system.”

Analysts expect Wii U sales to be brisk over the holidays. Nintendo‘s loyal —some would say, fanatical— fan base has been placing advance orders and will likely keep the systems flying off store shelves well into next year. The classic Mario and Zelda games are a huge part of the appeal, since they can’t be played on any gaming system but Nintendo‘s.

Research firm IHS iSuppli estimates that by the end of the year, people will have snapped up 3.5 million Wii U consoles worldwide, compared with 3.1 million Wii units in the same period through the end of 2006.

After the Wii went on sale, shortages persisted for months. Stores were met with long lines of shoppers trying to get their hands on a Wii as late as July 2007, more than seven months after the system’s launch.

Though supply constraints are expected this time around, Fils-Aime says Nintendo will have more hardware available in the Americas than it had for the Wii’s initial months on the market. The company says it will also replenish retailers more frequently than it did six years ago.

An initial sell-out doesn’t mean the Wii U will be successful over the long term, IHS notes, citing its estimate that the Wii U won’t match the Wii’s sales over time.

Bajarin believes it’s going to take “a little bit of time” for the Wii U’s dual-screen gaming concept to sink in with people. If it proves popular, Nintendo could see even more competition at its hands.

“Technologically, it’s not a leap of the imagination to see Apple, Google, Microsoft do something like this,” he says.

____

Follow Barbara Ortutay on Twitter at https://twitter.com/BarbaraOrtutay

Gadgets News Headlines – Yahoo! News

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Selena Gomez, Taylor Swift Meet Up in L.A.

By Kristen Mascia and Pernilla Cedenheim

11/18/2012 at 02:45 PM EST

Selena Gomez and Taylor Swift

Todd Williamson/WireImage

Wonder if they compared notes!

On Saturday night – a day after Selena Gomez's disastrous dinner date with ex Justin Bieber – the newly single singer-actress, 20, met up with pal Taylor Swift, 22, for a bite at Osteria La Buca in Los Angeles.

"The girls shared an Italian meal and seemed to have the best time," an onlooker tells PEOPLE. "There were a lot of giggles and laughter. They looked like great friends and were also in deep conversation throughout the meal. Taylor was very protective of Selena and escorted her to and from the car."

No word on what the twosome talked about, but we have our theories.

Swift – who's been previously linked to Joe Jonas, Jake Gyllenhaal, Taylor Lautner and others – recently went through a breakup herself, splitting from Conor Kennedy, 18, this fall after a whirlwind summer romance.

But it looks like Swift may already be moving on. Earlier this week, she was seen hand-in-hand with One Direction heartthrob Harry Styles, 18, at a rehearsal for The X Factor.

For her part, Gomez split from Bieber a couple of weeks ago, but the two have spent time together in L.A. this weekend.

Bieber and Swift are both scheduled to perform at the American Music Awards in L.A. on Sunday evening.

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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.

Read More..

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 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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