Wall Street Week Ahead: Earnings, money flows to push stocks higher

NEW YORK (Reuters) - With earnings momentum on the rise, the S&P 500 seems to have few hurdles ahead as it continues to power higher, its all-time high a not-so-distant goal.


The U.S. equity benchmark closed the week at a fresh five-year high on strong housing and labor market data and a string of earnings that beat lowered expectations.


Sector indexes in transportation <.djt>, banks <.bkx> and housing <.hgx> this week hit historic or multiyear highs as well.


Michael Yoshikami, chief executive at Destination Wealth Management in Walnut Creek, California, said the key earnings to watch for next week will come from cyclical companies. United Technologies reports on Wednesday while Honeywell is due to report Friday.


"Those kind of numbers will tell you the trajectory the economy is taking," Yoshikami said.


Major technology companies also report next week, but the bar for the sector has been lowered even further.


Chipmakers like Advanced Micro Devices , which is due Tuesday, are expected to underperform as PC sales shrink. AMD shares fell more than 10 percent Friday after disappointing results from its larger competitor, Intel . Still, a chipmaker sector index <.sox> posted its highest weekly close since last April.


Following a recent underperformance, an upside surprise from Apple on Wednesday could trigger a return to the stock from many investors who had abandoned ship.


Other major companies reporting next week include Google , IBM , Johnson & Johnson and DuPont on Tuesday, Microsoft and 3M on Thursday and Procter & Gamble on Friday.


CASH POURING IN, HOUSING DATA COULD HELP


Perhaps the strongest support for equities will come from the flow of cash from fixed income funds to stocks.


The recent piling into stock funds -- $11.3 billion in the past two weeks, the most since 2000 -- indicates a riskier approach to investing from retail investors looking for yield.


"From a yield perspective, a lot of stocks still yield a great deal of money and so it is very easy to see why money is pouring into the stock market," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.


"You are just not going to see people put a lot of money to work in a 10-year Treasury that yields 1.8 percent."


Housing stocks <.hgx>, already at a 5-1/2 year high, could get a further bump next week as investors eye data expected to support the market's perception that housing is the sluggish U.S. economy's bright spot.


Home resales are expected to have risen 0.6 percent in December, data is expected to show on Tuesday. Pending home sales contracts, which lead actual sales by a month or two, hit a 2-1/2 year high in November.


The new home sales report on Friday is expected to show a 2.1 percent increase.


The federal debt ceiling negotiations, a nagging worry for investors, seemed to be stuck on the back burner after House Republicans signaled they might support a short-term extension.


Equity markets, which tumbled in 2011 after the last round of talks pushed the United States close to a default, seem not to care much this time around.


The CBOE volatility index <.vix>, a gauge of market anxiety, closed Friday at its lowest since April 2007.


"I think the market is getting somewhat desensitized from political drama given, this seems to be happening over and over," said Destination Wealth Management's Yoshikami.


"It's something to keep in mind, but I don't think it's what you want to base your investing decisions on."


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



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Algerian army stages "final assault" on gas plant


ALGIERS/IN AMENAS, Algeria (Reuters) - The Algerian army carried out a dramatic final assault to end a siege by Islamic militants at a desert gas plant on Saturday, killing 11 al Qaeda-linked gunmen after they took the lives of seven more foreign hostages, the state news agency said.


The state oil and gas company, Sonatrach, said the militants who attacked the plant on Wednesday and took a large number of hostages had booby-trapped the complex with explosives, which the army was removing.


"It is over now, the assault is over, and the military are inside the plant clearing it of mines," a source familiar with the operation told Reuters.


British Defence Secretary Philip Hammond said the hostage situation had been "brought to an end" by the Algerian army assault on the militants.


The exact death toll among the gunmen and the foreign and Algerian workers at the plant near the town of In Amenas remained unclear, although a tally of reports from various sources indicated that several dozen people had been killed.


The Islamists' attack on the gas plant has tested Algeria's relations with the outside world, exposed the vulnerability of multinational oil operations in the Sahara and pushed Islamic radicalism in northern Africa to centre stage.


Some Western governments expressed frustration at not being informed of the Algerian authorities' plans to storm the complex. Algeria's response to the raid will have been conditioned by the legacy of a civil war against Islamist insurgents in the 1990s which claimed 200,000 lives.


HOSTAGES FREED


As the army closed in, 16 foreign hostages were freed, a source close to the crisis said. They included two Americans and one Portuguese. Britain said fewer than 10 of its nationals at the plant were unaccounted for and it was urgently seeking to establish the status of all Britions caught up in the crisis.


The base was home to foreign workers from Britain's BP, Norway's Statoil, Japanese engineering firm JGC Corp and others.


BP's chief executive Bob Dudley said on Saturday four of its 18 workers at the site were missing. The remaining 14 were safe.


The crisis at the gas plant marked a serious escalation of unrest in northwestern Africa, where French forces have been in Mali since last week fighting an Islamist takeover of Timbuktu and other towns.


The captors said their attack on the Algerian gas plant was a response to the French offensive in Mali. However, some U.S. and European officials say the elaborate raid probably required too much planning to have been organized from scratch in the week since France launched its strikes.


Scores of Westerners and hundreds of Algerian workers were inside the heavily fortified gas compound when it was seized before dawn on Wednesday by Islamist fighters who said they wanted a halt to the French intervention in neighboring Mali.


Hundreds escaped on Thursday when the army launched a rescue operation, but many hostages were killed.


Before the final assault, different sources had put the number of hostages killed at between 12 and 30, with many foreigners still unaccounted for, among them Norwegians, Japanese, Britons and Americans.


The figure of 30 came from an Algerian security source, who said eight Algerians and at least seven foreigners were among the victims, including two Japanese, two Britons and a French national. One British citizen was killed when the gunmen seized the hostages on Wednesday.


The U.S. State Department said on Friday one American, Frederick Buttaccio, had died but gave no further details.


U.S. Defense Secretary Leon Panetta said nobody was going to attack the United States and get away with it.


"We have made a commitment that we're going to go after al Qaeda wherever they are and wherever they try to hide," he said during a visit to London. "We have done that obviously in Afghanistan, Pakistan, we've done it in Somalia, in Yemen and we will do it in North Africa as well."


BURNED BODIES


Earlier on Saturday, Algerian special forces found 15 unidentified burned bodies at the plant, a source told Reuters.


The field commander of the group that attacked the plant is a fighter from Niger called Abdul Rahman al-Nigeri, according to Mauritanian news agencies. His boss, Mokhtar Belmokhtar, a veteran of fighting in Afghanistan in the 1980s and Algeria's civil war of the 1990s, appears not to have joined the raid.


Britain, Japan and other countries have expressed irritation that the army assault was ordered without consultation and officials grumbled at the lack of information.


But French President Francois Hollande said the Algerian military's response seemed to have been the best option given that negotiation was not possible.


"When you have people taken hostage in such large number by terrorists with such cold determination and ready to kill those hostages - as they did - Algeria has an approach which to me, as I see it, is the most appropriate because there could be no negotiation," Hollande said.


The apparent ease with which the fighters swooped in from the dunes to take control of an important energy facility, which produces some 10 percent of the natural gas on which Algeria depends for its export income, has raised questions over the value of outwardly tough Algerian security measures.


Algerian officials said the attackers may have had inside help from among the hundreds of Algerians employed at the site.


Security in the half-dozen countries around the Sahara desert has long been a preoccupation of the West. Smugglers and militants have earned millions in ransom from kidnappings.


The most powerful Islamist groups operating in the Sahara were severely weakened by Algeria's secularist military in the civil war in the 1990s. But in the past two years the regional wing of al Qaeda gained fighters and arms as a result of the civil war in Libya, when arsenals were looted from Muammar Gaddafi's army.


France says the hostage incident proves its decision to fight Islamists in neighboring Mali was necessary. Al Qaeda-linked fighters, many with roots in Algeria and Libya, took control of northern Mali last year.


(Additional reporting by Balazs Koranyi in Oslo, Estelle Shirbon and David Alexander in London, Brian Love in Paris; Writing by Giles Elgood; Editing by Mark Trevelyan and Rosalind Russell)



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Dotcom says new site legal, no revenge for Megaupload saga






AUCKLAND (Reuters) – Kim Dotcom, founder of outlawed file-sharing website Megaupload, said his new “cyberlocker” was not revenge on U.S. authorities who planned a raid on his home, closed Megaupload and charged him with online piracy for which he faces jail if found guilty.


Dotcom said his new offering, Mega.co.nz, which will launch on Sunday even as he and three colleagues await extradition from New Zealand to the United States, complied with the law and warned that attempts to take it down would be futile.






“This is not some kind of finger to the U.S. government or to Hollywood,” Dotcom told Reuters at his sprawling estate in the bucolic hills of Coatesville, just outside Auckland, New Zealand, a country known more for sheep, rugby and the Hobbit than flamboyant tech tycoons.


“Legally, there’s just nothing there that could be used to shut us down. This site is just as legitimate and has the right to exist as Dropbox, Boxnet and other competitors,” he said, referring to other popular cloud storage services.


His lawyer, Ira Rothken, added that launching the site was compliant with the terms of Dotcom’s bail conditions. U.S. prosecutors argue that Dotcom in a statement said he had no intention of starting a new internet business until his extradition was resolved.


CODES AND KEYS


Dotcom said Mega was a different beast to Megaupload, as the new site enables users to control exactly which users can access uploaded files, in contrast to its predecessor, which allowed users to search files, some of which contained copyrighted content allegedly without permission.


A sophisticated encryption system will allow users to encode their files before they upload them on to the site’s servers, which Dotcom said were located in New Zealand and overseas.


Each file will then be issued a unique, sophisticated decryption key which only the file holder will control, allowing them to share the file as they choose.


As a result, the site’s operators would have no access to the files, which they say would strip them from any possible liability for knowingly enabling users to distribute copyright-infringing content, which Washington says is illegal.


“Even if we wanted to, we can’t go into your file and snoop and see what you have in there,” the burly Dotcom said.


Dotcom said Mega would comply with orders from copyright holders to remove infringing material, which will afford it the “safe harbor” legal provision, which minimizes liability on the condition that a party acted in good faith to comply.


But some legal experts say it may be difficult to claim the protection if they do not know what users have stored.


The Motion Pictures Association of America said encrypting files alone would not protect Dotcom from liability.


“We’ll reserve final judgment until we have a chance to analyze the new project,” a spokesman told Reuters. “But given Kim Dotcom’s history, count us as skeptical.”


The German national, who also goes by Kim Schmitz, expects huge interest in its first month of operation, which would be a far cry from when Megaupload went live in 2005.


“I would be surprised if we had less than one million users,” Dotcom said.


A YEAR ON


Mega’s launch starts the next chapter of the Dotcom narrative, dotted with previous cyber crime-related arrests and whose twists and turns have been scrutinized by all facets of the entertainment industry, from film studios and record labels to internet service companies and teenage gamers.


The copyright infringement case, billed as the largest to date given that Megaupload in its heyday commanded around four percent of global online traffic, could set a precedent for internet liability laws and depending on its outcome, may force entertainment companies to rethink their distribution methods.


A year on, the extradition hearing has been delayed until August, complicated by illegal arrest warrants and the New Zealand government’s admission that it had illegally spied on Dotcom, who has residency status in the country.


Last January, New Zealand’s elite special tactics forces landed by helicopter at dawn in the grounds of Dotcom’s mansion, worth roughly NZ$ 30 million ($ 25.05 million) and featuring a servants’ wing, hedge maze and life-size statues of giraffes and a rhinoceros, to arrest him and his colleagues at the request of the FBI.


Police armed with semi-automatic weapons found Dotcom cowering alone in a panic room in the attic, while outside, a convoy of police cars and vans pulled up in the driveway. Around 70 officers took part in the raid.


They left with computers, files and some of Dotcom’s fleet of Rolls-Royces, Mercedes and a vintage pink Cadillac tricked with personalized license plates screaming “HACKER”, “EVIL”, and “MAFIA”.


“Every time you hear a helicopter, you automatically think, ‘Oh, another raid’, so it’s something that stays with you for a long time,” said Dotcom, who says he and his wife still panic when they hear sudden, loud noises in the house.


Dotcom was coy about the details of the launch party as builders put the finishing touches to a festival-sized concert stage in the mansion’s grounds, while two helicopters circled overhead.


But if the impromptu, Willy Wonka-styled ice cream social he threw in Auckland earlier in the week is any indication, the party could be a more wholesome affair compared with the well-documented soirees of Dotcom’s past, where nightclubs, hot tubs and scantily clad women were a common fixture.


“I had to grow up, you know, I was a big baby,” he said. “Big baby with too much money usually leads to baby craziness.


“I am going to be more of a person that wants to help to make things better and help internet innovation to take off without all these restrictions by governments. That is going to be my primary goal if this business is successful.”


($ 1 = NZ$ 1.2)


(Editing by Daniel Magnowski and Nick Macfie)


Tech News Headlines – Yahoo! News





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Buzzmakers: Golden Globes Glamour and Jennifer Lawrence's Butt

1. Jennifer Lawrence: That's Not My Flabby Butt!

Jennifer Lawrence has been silent long enough! The Silver Linings Playbook actress showed up on the Late Show With David Letterman this week to both clarify her Meryl Streep comments during her Golden Globes acceptance speech, and set the record straight on a photoshopped pic of her bikini backside.

The actress is convinced that the paparazzi put a much older butt on her body while she was in Hawaii, telling Letterman as he held up the photo, "It's not my butt and I will not take responsibility for it. It's a 90-year-old butt that's been photoshopped onto my body, and is posing as my butt."

Causing roars of laughter in the audience, The Hunger Games beauty, 22, admits she's not the most photogenic person and she does have some "bloat" at times, but wants everyone to take away from her Late Show appearance Tuesday night that this is not her butt.

Lawrence also felt the need to address her Streep joke while at the Globes. The actress revealed that she was merely quoting Bette Midler in First Wives Club when she said Sunday night, "Look what it says, 'I beat Meryl.'"

"I had no idea Lindsay Lohan would take to the Twitterverse," she joked with Letterman. "Well, first of all it's Meryl Streep. You can't offend Meryl Streep."

2. Golden Globes Fashion Tops & Flops

Which star at the Golden Globes had the best dress, and which ones just looked like a hot mess? You decide!

Click through our gallery and vote here!

3. LeAnn Rimes Talks Infidelity & Her Ex

No topic was off limits when LeAnn Rimes sat down exclusively with ET's Nancy O'Dell.

The country superstar, whose controversial relationship with husband Eddie Cibrian has become both a blessing and a curse, tells Nancy her upcoming album Spitfire was born unexpectedly during her extra-marital affair with Eddie. In fact, a handful of infidelity themed tracks included in the album were initially written about a friend of hers while LeAnn was married to her ex, Dean Sheremet.

"What Have I Done is one of the first songs that I wrote for the record, before anything was actually starting to happen," said LeAnn. "It was written about a friend of mine, but I didn't realize I was writing it for myself at the time... It was my subconscious talking and I didn't know yet."

Speaking on the feelings that sparked her and Eddie's infamous affair, LeAnn acknowledged that her then husband had heard the troubling track and perhaps knew she would soon be led astray.

"He actually heard the song when I wrote it and, actually, he knew what it was about before I did," she reveals. "He knew I was feeling feelings. I'm not sure what those were that he knew."

Sighed LeAnn, "It's a very complicated situation."

When asked if she ever worries whether her husband Eddie would ever cheat on her, LeAnn admits that she does.

"I would be ignorant to say, and everyone else would think I am a liar if I didn't say yes, and I have at times," said LeAnn, going on to reveal that Eddie has had the same concerns about her.

"Speaking for him, I would actually say that's creeped into his [mind]…I think we've been very honest and open with that to each other and our conversations about it have only made me understand how much he actually cares, as much as I do, about being faithful to each other."

4. Mindy McCready's Boyfriend Dies from Self-Inflicted Gunshot Wound

More details into the death of Mindy McCready's boyfriend and father of her child David Wilson, who was found dead on January 13 at his Arkansas home, have surfaced.

McCready's rep, Kat Atwood, told People.com that Wilson suffered "a self-inflicted gunshot wound," adding, "Now they're working on funeral arrangements and figuring out where to go from here."

Following the news of her boyfriend's death, the country crooner was reportedly alone for the first 24 hours with her children. "Her family drove up from Florida," Atwood told the website. "I'm not exactly sure when they got there, but her personal friends arrived late last night."

"David was my soulmate," McCready, 37, said in a statement about the late singer-songwriter. "He was a precious gift from God to all of us and, yesterday, he returned home and is now with his mother and father. David loved and was loved. Those who knew and loved him will miss him; those who did know David missed the opportunity to know a truly loving and gifted man."

McCready and Wilson had been together for about two years, and share a 9-month-old son named Zayne (McCready has an older son Zander with country singer Billy McKnight).

5. Jessica Simpson on New Pregnancy: Eric Keeps Knocking Me Up!

Jessica Simpson told Jay Leno on Tuesday night's Tonight Show that she "needs to keep her legs closed" after getting pregnant twice and missing two planned wedding dates.

Wearing a leopard minidress that showed off her growing baby bump, the mommy-to-be admitted that she and her fiancé of two years Eric Johnson are planning to get married if they can quit having children. "We've had two different wedding dates, but he keeps knocking me up," Simpson, 32, joked. "We're doing it very backwards, I know. ... I'll just keep my legs crossed, I guess, this time."

The Weight Watchers spokeswoman, who reportedly lost 60 pounds after giving birth to daughter Maxwell this past year, revealed that this was not a planned pregnancy, telling Leno, "Apparently it was a part of God's plan for my life. I was extremely shocked because I was going through a lot of hormonal changes, trying to get back to the old, vibrant Jessica. You know, it was kind of like a one-night stand. And it happened, all over again!"

Simpson spilled the news on Tuesday that she'll be starring in a NBC show inspired by her life. The once Newlywed reality star quipped that the show will be about "a girl who keeps getting pregnant."

"We don't have a name yet," she confessed to Leno. "We're just now in the process of casting everyone, doing the pilot. I will be playing myself but we'll have actors playing Eric and my dad. That'll be funny."

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Lilly drug chosen for Alzheimer's prevention study


Researchers have chosen an experimental drug by Eli Lilly & Co. for a large federally funded study testing whether it's possible to prevent Alzheimer's disease in older people at high risk of developing it.


The drug, called solanezumab (sol-ah-NAYZ-uh-mab), is designed to bind to and help clear the sticky deposits that clog patients' brains.


Earlier studies found it did not help people with moderate to severe Alzheimer's but it showed some promise against milder disease. Researchers think it might work better if given before symptoms start.


"The hope is we can catch people before they decline," which can come 10 years or more after plaques first show up in the brain, said Dr. Reisa Sperling, director of the Alzheimer's center at Brigham and Women's Hospital in Boston.


She will help lead the new study, which will involve 1,000 people ages 70 to 85 whose brain scans show plaque buildup but who do not yet have any symptoms of dementia. They will get monthly infusions of solanezumab or a dummy drug for three years. The main goal will be slowing the rate of cognitive decline. The study will be done at 50 sites in the U.S. and possibly more in Canada, Australia and Europe, Sperling said.


In October, researchers said combined results from two studies of solanezumab suggested it might modestly slow mental decline, especially in patients with mild disease. Taken separately, the studies missed their main goals of significantly slowing the mind-robbing disease or improving activities of daily living.


Those results were not considered good enough to win the drug approval. So in December, Lilly said it would start another large study of it this year to try to confirm the hopeful results seen patients with mild disease. That is separate from the federal study Sperling will head.


About 35 million people worldwide have dementia, and Alzheimer's is the most common type. In the U.S., about 5 million have Alzheimer's. Current medicines such as Aricept and Namenda just temporarily ease symptoms. There is no known cure.


___


Online:


Alzheimer's info: http://www.alzheimers.gov


Alzheimer's Association: http://www.alz.org


___


Follow Marilynn Marchione's coverage at http://twitter.com/MMarchioneAP


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Wall Street slips after disappointing Intel results

NEW YORK (Reuters) - Stocks edged lower on Friday from a five-year high for the S&P 500 as a weak outlook from tech heavyweight Intel offset a better-than-expected quarterly profit at Morgan Stanley.


But the S&P 500 was still on track to end higher for a third consecutive week.


Shares of Intel Corp slumped nearly 7 percent to $21.11 a day after it forecast quarterly revenue below analysts' estimates and announced plans for increased capital spending amid slow demand for personal computers.


"Intel earnings weren't that bad, although their revenue was weak. It sparks fears about not only the company but about the whole PC sector, and that's pressuring the market today," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.


The Intel results were offset somewhat by Morgan Stanley , which reported a fourth-quarter profit after a year-earlier loss, helped by higher revenue at the bank's institutional securities business. Its stock jumped 7.4 percent to $22.29.


Overall, S&P 500 fourth-quarter earnings rose an estimated 2.5 percent, according to Thomson Reuters data. Expectations for the quarter have dropped considerably since October, when a 9.9 percent gain was estimated.


The Dow Jones industrial average <.dji> was down 15.17 points, or 0.11 percent, at 13,580.85. The Standard & Poor's 500 Index <.spx> was down 3.51 points, or 0.24 percent, at 1,477.43. The Nasdaq Composite Index <.ixic> was down 13.98 points, or 0.45 percent, at 3,122.03.


On Thursday, the S&P 500 rose to its highest since late 2007, and that could prompt investors to lock in recent gains, analysts said.


Despite the day's decline, market sentiment was still positive on speculation that chances were better of avoiding a debt ceiling fight in Washington. House Republicans signaled on Thursday they might support a short-term extension of U.S. borrowing authority next month.


"The debt ceiling issue is sort of out of the news. The market has definitely become complacent. And we all know that the issue will be dealt with, we just need to find out when. If December is any guide, they are going to leave it up to the last minute so the market is definitely more complacent than it should be for now," Ghriskey said.


Reflecting the complacency, the CBOE Volatility index <.vix>, Wall Street's so-called fear gauge, fell 4.1 percent at just above 13. The VIX usually moves inversely to the S&P 500 as it is used as a hedge tool against further market decline.


Economic data from China provided some support to the market, though the focus remained on U.S. corporate earnings. The country's economy grew at a modestly faster-than-expected 7.9 percent in the fourth quarter, the latest sign the world's second-biggest economy was pulling out of a post-global financial crisis slowdown which saw it grow in 2012 at its weakest pace since 1999.


General Electric reported a better-than-expected rise in earnings, spurred by robust demand in China and oil-producing countries. Shares were up 2.9 percent to $21.92.


Despite the gains by Morgan Stanley, financial stocks sagged as Capital One Financial reported disappointing profit. Capital One slumped 7.7 percent to $56.87, while the KBW bank index <.bkx> slipped 0.9 percent.


Research In Motion climbed 6.6 percent to $15.91 after Jefferies Group boosted the BlackBerry maker's rating and price target.


(Editing by Bernadette Baum, Kenneth Barry and Nick Zieminski)



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Foreigners still caught in Sahara hostage crisis


ALGIERS (Reuters) - More than 20 foreigners were still being held hostage or missing inside a gas plant on Friday after Algerian forces stormed the desert complex to free hundreds of captives taken by Islamist militants, who threatened to attack other energy installations.


Thirty hostages, including at least seven Westerners, were killed during Thursday's assault, along with at least 18 of their captors, said an Algerian security source.


The attack, which plunged capitals around the world into crisis mode, is a serious escalation of unrest in northwestern Africa, where French forces have been in Mali since last week fighting an Islamist takeover of Timbuktu and other towns.


"We are still dealing with a fluid and dangerous situation where a part of the terrorist threat has been eliminated in one part of the site, but there still remains a threat in another part," British Prime Minister David Cameron told his parliament.


A local Algerian source said 100 of 132 foreign hostages had been freed from the facility. The fate of the other 32 was unclear as the situation was changing rapidly.


Earlier he said 60 were still missing with some believed still held hostage, but it was unclear how many, and how many might be in hiding elsewhere in the sprawling compound.


Two Japanese, two Britons and a French national were among the seven foreigners confirmed dead in the army's storming, the Algerian security source told Reuters. One British citizen was killed when the gunmen seized the hostages on Wednesday.


Those still unaccounted for on Friday included 10 from Japan and eight Norwegians, according to their employers, and a number of Britons which Cameron put at "significantly" less than 30.


France said it had no information on two Frenchmen who may have been at the site and Washington has said a number of Americans were among the hostages, without giving details. The local source said a U.S. aircraft landed nearby on Friday.


Some countries have been reluctant to give details of the numbers of their missing nationals to avoid disclosing information that may be useful to their captors.


As Western leaders clamored for news, several expressed anger they had not been consulted by the Algerian government about its decision to storm the facility.


The sprawling facility housed hundreds of workers. Algeria's state news agency said the army had rescued 650 hostages in total, 573 of whom were Algerians.


"(The army) is still trying to achieve a ‘peaceful outcome' before neutralizing the terrorist group that is holed up in the (facility) and freeing a group of hostages that is still being held," it said, quoting a security source.




MULTINATIONAL INSURGENCY


Algerian commanders said they moved in on Thursday about 30 hours after the siege began because the gunmen had demanded to be allowed to take their captives abroad.


An Irish engineer who survived said he saw four jeeps full of hostages blown up by Algerian troops.


A French hostage employed by a French catering company said Algerian military forces had found some British hostages hiding and were combing the sprawling In Amenas site for others when he was escorted away by the military.


"I hid in my room for nearly 40 hours, under the bed. I put boards up pretty much all round," Alexandre Berceaux told Europe 1 raid. "I didn't know how long I was going to stay there ... I was afraid. I could see myself already ending up in a pine box."


"When Algerian solders ... came for me, I didn't even know it was over. They were with some of my colleagues, otherwise I'd never have opened the door."


Western governments are trying to determine the degree to which the hostage taking was part of an international conspiracy and was linked, as the captors claimed, to the week-old French military intervention in neighboring Mali.


The Algerian security source said only two of 11 militants whose bodies were found on Thursday were Algerian, including the squad's leader. The others comprised three Egyptians, two Tunisians, two Libyans, a Malian and a Frenchman, he said.


Algeria state news agency APS said the group had planned to take the hostages to Mali.


The plant was heavily fortified, with security, controlled access and an army camp with hundreds of armed personnel between the accommodation and processing plant, Andy Coward Honeywell, who worked there in 2009, told the BBC.


U.S. Defense Secretary Leon Panetta said those responsible would be hunted down: "Terrorists should be on notice that they will find no sanctuary, no refuge, not in Algeria, not in North Africa, not anywhere," he said in London. "Those who would wantonly attack our country and our people will have no place to hide."


MALI WOES


The crisis posed a serious dilemma for former colonial power Paris and its allies as French troops attacked the hostage-takers' al Qaeda allies in Mali, another former colony.


The desert fighters have proved to be better trained and equipped than France had anticipated, diplomats told Reuters at the United Nations, which said 400,000 people could flee Mali to neighboring countries in the coming months.


In Algeria, the kidnappers warned locals to stay away from foreign companies' oil and gas installations, threatening more attacks, Mauritania's news agency ANI said, citing a spokesman for the group.


Algerian workers form the backbone of an oil and gas industry that has attracted international firms in recent years partly because of military-style security. The kidnapping, storming and further threat cast a deep shadow over its future.


Hundreds of workers from international oil companies were evacuated from Algeria on Thursday and many more will follow, BP, which jointly ran the gas plant with Norway's Statoil and the Algerian state oil firm, said on Friday.


The overall commander of the kidnappers, Algerian officials said, was Mokhtar Belmokhtar, a veteran of Afghanistan in the 1980s and Algeria's bloody civil war of the 1990s and one of a host of Saharan Islamists, flush with arms and fighters from the 2011 civil war in Libya. He appears not to have been present.


Algerian security specialist Anis Rahmani, author of several books on terrorism and editor of Ennahar daily, told Reuters about 70 militants were involved from two groups, Belmokhtar's "Those who sign in blood", who travelled from Libya, and the lesser known "Movement of the Islamic Youth in the South".


"They were carrying heavy weapons including rifles used by the Libyan army during (Muammar) Gadaffi's rule," he said. "They also had rocket-propelled grenades and machineguns."


Algeria's government is implacably at odds with Islamist guerrillas who remain at large in the south, years after the civil war through the 1990s in which some 200,000 people died.


Britain's Cameron, who warned people to prepare for bad news and who cancelled a major policy speech on Friday to deal with the situation, said he would have liked Algeria to have consulted before the raid. Japan made similar complaints.


U.S. officials had no clear information on the fate of Americans, though a U.S. military drone had flown over the area. Washington, like its European allies, has endorsed France's move to protect the Malian capital by mounting air strikes last week and now sending 1,400 ground troops to attack Islamist rebels.


The apparent ease with which the fighters swooped in from the dunes to take control of an important energy facility, which produces some 10 percent of the natural gas on which Algeria depends for its export income, has raised questions over the value of outwardly tough security measures.


(Additional reporting by Ali Abdelatti in Cairo, Eamonn Mallie in Belfast, Gwladys Fouche in Oslo, Mohammed Abbas in London and Padraic Halpin and Conor Humprhies in Dublin; Writing by Philippa Fletcher; Editing by Peter Graff)



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Morrisons to launch online kitchenware business






LONDON (Reuters) – Britain‘s fourth largest supermarket group Wm Morrison said on Friday it would extend its online presence in the spring with the launch of a kitchenware website in partnership with specialist Lakeland.


The joint venture will be Morrisons‘ third fully transactional website following the launch of wine website MorrisonsCellar.com in November and the purchase of baby care retailer Kiddicare.com in 2011.






“We believe the future for retailing many non-food products is online rather than in supermarkets,” said Chief Executive Dalton Philips.


Unlike the other grocers that make up Britain’s so called “big four” – market leader Tesco, Wal-Mart’s Asda and J Sainsbury – Morrisons does not have a website for the home delivery of food.


Earlier this month Morrisons posted a weak Christmas trading update that it partly attributed to its lack of an online food offer.


The firm is researching the possibility and plans to say more when it publishes full year results in March. Most analysts expect it to launch a trial this year.


(Reporting by James Davey; editing by Kate Holton)


Internet News Headlines – Yahoo! News





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Stars Without Makeup!



Kim Kardashian







Kim Kardashian learned the hard way the consequences of falling asleep while tanning. Khloe Kardashian tweeted this pic of her big sister's unevenly sun burnt face writing, "TBT this picture makes me laugh. My little Keeks fell asleep in the sun with her sunglasses on. Still stunning even with a raccoon tan." … And clearly, also without any makeup on!








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Flu season 'bad one for the elderly,' CDC says


Flu hospitalizations among the elderly rose sharply last week, prompting federal officials to take unusual steps to make more flu medicines available and to urge wider use of them as soon as symptoms appear.


The U.S. is about halfway through the flu season, which is shaping up to be worse than average and a bad one for the elderly, said Dr. Thomas Frieden, director of the Centers for Disease Control and Prevention.


New figures from the CDC show the flu epidemic is continuing, with widespread activity in all states but Tennessee and Hawaii.


Nine more children or teens have died of the flu, bringing the nation's total this flu season to 29, health officials reported Friday. That's close to the 34 pediatric deaths reported during all of the last flu season, although that one was unusually light. In a typical season, about 100 children die of the flu and officials said there is no way to know whether deaths this season will be higher or lower than usual.


So far, half of confirmed flu cases are in people 65 and older. Lab-confirmed flu hospitalizations totaled 19 for every 100,000 in the population, but 82 per 100,000 among those 65 and older, "which is really quite a high rate," Frieden said.


"We expect to see both the number and the rates of both hospitalizations and deaths rise further in the next week or so as the flu epidemic progresses," so prompt treatment with antivirals is key to preventing deaths, he said.


Two drugs — Tamiflu and Relenza — can cut the severity and risk of death from the flu but must be started within 48 hours of first symptoms to do much good. To increase supplies of Tamiflu, said Dr. Margaret Hamburg, head of the Food and Drug Administration, said the agency had allowed Genentech to distribute additional doses that have old packaging information.


This year's season is earlier than normal and the dominant flu strain is one that tends to make people sicker.


Health officials say it's not too late to get a flu shot to help protect against the flu. Vaccinations are recommended for anyone 6 months or older.


Last week, the CDC said the flu again surpassed an "epidemic" threshold, based on monitoring of deaths from flu and a frequent complication, pneumonia. The flu epidemic happens every year and officials say this year's vaccine is a good match for strains that are going around.


The government doesn't keep a running tally of adult deaths from the flu, but estimates that it kills about 24,000 people most years.


___


Online:


CDC flu: http://www.cdc.gov/flu/index.htm


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Data, eBay earnings lift Wall Street to five-year high

NEW YORK (Reuters) - Wall Street rose on Thursday, with the S&P 500 climbing to a five-year intraday high, on improved housing and jobs data along with better-than-expected results from online marketplace eBay .


The data showed the number of Americans filing new claims for unemployment benefits fell to a five-year low last week, while groundbreaking for homes rose to the fastest pace in four years last month.


Strength in the housing and labor markets is key to sustained growth and higher corporate profits. Job market improvement helps stimulate consumer spending while a recovery in housing means more purchases of appliances, furniture and other household goods as well as a source of employment.


"The real estate numbers all look good, sales looked good, prices looked good, housing starts looked good," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.


"The only thing that still doesn't look really good in my mind are the employment numbers but even the claims were pretty good and inflation seems to be nonexistent so what's to stop the party from going?"


The Dow Jones industrial average <.dji> gained 82.97 points, or 0.61 percent, to 13,594.20. The Standard & Poor's 500 Index <.spx> advanced 8.31 points, or 0.56 percent, to 1,480.94. The Nasdaq Composite Index <.ixic> rose 17.12 points, or 0.55 percent, to 3,134.66.


PulteGroup Inc shares gained 4.9 percent to $20.29 and Toll Brothers Inc advanced 2.2 percent to $35.68. The PHLX housing sector index <.hgx> climbed 2.1 percent.


EBay's shares rose 3 percent to $54.47 a day after it reported holiday quarter results that just beat Wall Street expectations. It gave a 2013 forecast that was within analysts' estimates.


The S&P is on track for its third consecutive advance, which pushed the index above an intraday peak set in September to its highest since December 2007.


But gains were tempered by weakness in the financial sector, with Bank of America down 4.3 percent to $11.27 and Citigroup off 3 percent to $41.22 after they posted their results.


Bank of America's fourth-quarter profit fell as it took more charges to clean up mortgage-related problems. Citigroup posted $2.32 billion of charges for layoffs and lawsuits, while its new chief executive cautioned the bank needed more time to deal with its problems.


The S&P financial sector index <.spsy> slipped 0.14 percent as the only one of the 10 major S&P sectors to decline.


S&P 500 corporate earnings for the fourth quarter are expected to rise 2.3 percent, Thomson Reuters data showed. Expectations for the quarter have fallen considerably since October when a 9.9 percent gain was estimated.


With investors anticipating the current earnings season to be lackluster, their focus will be on the corporate earnings outlook for the months ahead, analysts said.


Shares of Boeing extended recent declines after the United States and other countries grounded the company's new 787 Dreamliner after a second incident involving battery failure. Boeing shed 0.4 percent to $74.05 and is down 1.5 percent for the week so far.


Market breadth was solid, with advancers outpacing decliners on the New York Stock Exchange 2,234 to 650, while on the Nasdaq the ratio was 1,602 to 762 in favor of advancing stocks.


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



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Algerian forces launch operation to break desert siege


ALGIERS (Reuters) - Twenty-five foreign hostages escaped and six were killed on Thursday when Algerian forces launched an operation to free them at a remote desert gas plant, Algerian sources said, as one of the biggest international hostage crises in decades unfolded.


Fast-moving details of the military operation to free the hostages were difficult to confirm. Algeria's official APS news agency said that the military had freed four foreign hostages, giving no further information.


A local source told Reuters six foreign hostages were killed along with eight captors when the Algerian military fired on a vehicle being used by the gunmen. An Algerian security source said the 25 foreign hostages had escaped.


Mauritania's ANI news agency, which has been in constant contact with the kidnappers, said seven hostages were still being held: two Americans, three Belgians, one Japanese and one British citizen.


The standoff began when gunmen calling themselves the Battalion of Blood stormed the gas plant on Wednesday morning. They said they were holding 41 foreigners and demanded a halt to a French military operation against fellow al Qaeda-linked Islamist militants in neighboring Mali.


ANI and Qatar-based Al Jazeera reported that 34 of the captives and 15 of their captors had been killed when government forces fired from helicopters at a vehicle. Those death tolls, far higher than confirmed by the local source, would contradict the reports that large numbers of foreigners escaped alive.


Britain and Norway, whose oil firms BP and Statoil run the plant jointly with the Algerian state oil company, said they had been informed by the Algerian authorities that a military operation was under way but did not provide details.


As many as 180 Algerian hostages had also been held but managed to flee, the local source said.


The incident dramatically raises the stakes in the French military campaign in neighboring Mali, where hundreds of French paratroopers and marines are launching a ground offensive against rebels after air strikes began last week.


Algerian Interior Minister Daho Ould Kablia said the kidnappers were led by Mokhtar Belmokhtar, a veteran Islamist guerrilla who fought Soviet forces in Afghanistan in the 1980s and had set up his own group in the Sahara after falling out with other local al Qaeda leaders.


A holy warrior-cum-smuggler dubbed "The Uncatchable" by French intelligence and "Mister Marlboro" by some locals for his illicit cigarette-running business, Belmokhtar's links to those who seized towns across northern Mali last year are unclear.


The hostage takers earlier allowed some prisoners to speak to the media, apparently to put pressure on Algerian forces not to storm the compound. An unidentified hostage who spoke to France 24 television said prisoners were forced to wear explosive belts and captors had threatened to blow up the plant.


Two hostages, identified as British and Irish, spoke to Al Jazeera television and called on the Algerian army to withdraw from the area to avoid casualties.


"We are receiving care and good treatment from the kidnappers. The (Algerian) army did not withdraw and they are firing at the camp," the British man said. "There are around 150 Algerian hostages. We say to everybody that negotiations is a sign of strength and will spare many any loss of life."


NUMBERS UNCONFIRMED


The precise number and nationalities of foreign hostages could not be confirmed, with some countries reluctant to release information that could be useful to the captors.


Britain said one of its citizens was killed in the initial storming on Wednesday and "a number" of others were held.


The militants said seven Americans were among their hostages, a figure U.S. officials said they could not confirm.


Norwegian oil company Statoil said nine of its Norwegian staff and three Algerian employees were captive. Britain's BP, which operates the plant with Statoil and Algerian state oil company Sonatrach, said some of its staff were held but would not say how many or their nationalities.


Japanese media said five workers from Japanese engineering firm JGC Corp. were held, a number the company did not confirm. Paris has not said whether any hostages were French. Vienna said one hostage was Austrian, Dublin said one was Irish and Bucharest said an unspecified number were Romanian.


Spanish oil company Cepsa said it had begun to evacuate personnel from elsewhere in Algeria.


Paris said the Algeria attack demonstrated it was right to intervene in Mali: "We have the flagrant proof that this problem goes beyond just the north of Mali," French ambassador to Mali Christian Rouyer told France Inter radio.


President Francois Hollande has received public backing from Western and African allies who fear that al Qaeda, flush with men and arms from the defeated forces of Libya's Muammar Gaddafi, is building a desert haven in Mali, a poor country helpless to combat fighters who seized its north last year.


However, there is also some concern in Washington and other capitals that the French action in Mali could provoke a backlash worse than the initial threat by militants in the remote Sahara.


The militants, communicating through established contacts with media in neighboring Mauritania, said they had dozens of men armed with mortars and anti-aircraft missiles in the compound and had rigged it with explosives.


"We hold the Algerian government and the French government and the countries of the hostages fully responsible if our demands are not met, and it is up to them to stop the brutal aggression against our people in Mali," read one statement carried by Mauritanian media.


They condemned Algeria's secularist government for letting French warplanes fly over its territory to Mali and shutting its border to Malian refugees.


PRESSING ON


The attack in Algeria did not stop France from pressing on with its campaign in Mali. It said on Thursday it now had 1,400 troops on the ground in Mali, and combat was underway against the rebels that it first began targeting from the air last week.


"There was combat yesterday, on the ground and in the air. It happened overnight and is under way now," said Le Drian. Residents said a column of about 30 French Sagaie armored vehicles set off on Wednesday toward rebel positions from the town of Niono, 300 km (190 miles) from the capital, Bamako.


The French action last week came as a surprise but received widespread international support in public. Neighboring African countries planning to provide ground troops for a U.N. force by September have said they will move faster to deploy them.


Nigeria, the strongest regional power, sent 162 soldiers on Thursday, the first of an anticipated 906.


"The whole world clearly needs to unite and do much more than is presently being done to contain terrorism, with its very negative impact on global peace and security," President Goodluck Jonathan said.


Germany, Britain and the Netherlands have offered transport aircraft to help ferry in African troops. Washington has said it is considering what support it can offer.


Many inhabitants of northern Mali have welcomed the French action, though some also fear being caught in the cross-fire. The Mali rebels who seized Timbuktu and other oasis towns in northern Mali last year imposed Islamic law, including public amputations and beheadings that angered many locals.


A day after launching the campaign in Mali, Hollande also ordered a failed rescue in Somalia on Saturday to free a French hostage held by al Qaeda-linked al Shabaab militants since 2009. Al Shabaab said on Thursday it had executed hostage Denis Allex. France said it believed he died in the rescue.


(Reporting by Lamine Chikhi; Writing by Peter Graff; Editing by Giles Elgood)



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AT&T Offers $100 Off HSPA+ Nexus 7 for a Limited Time






The Nexus 7, made by Asus in partnership with Google, was the first really successful Android tablet that wasn’t made by a bookseller. It brought the hundreds of thousands of games and apps on Google Play (formerly the Android Market) to a wide audience, and it did so at an unheard-of price point: Only $ 199, for a device packing a Tegra 3 processor which made it much more powerful (and better for gaming) than Amazon‘s Kindle Fire.


When the Nexus 7 launched, it was Wi-Fi only and had as little as 8 GB of storage space. Google and Asus have fixed both of those problems, and from now until Feb. 14, AT&T is offering $ 100 worth of credit towards your wireless bill with the purchase of a new Nexus 7 and the signing of a two-year wireless contract.






The tablet itself


The Nexus 7 isn’t designed as a book-reader, but is more of a competitor to the iPad Mini. It lacks exclusive Amazon services like Amazon Instant Video, and many of the best iPad games and apps either aren’t available for it or aren’t available yet. It has far more games and apps for it than the Kindle, though, and can actually read Kindle books and run games and apps that you previously bought for the Kindle.


Its Tegra 3 processor allows it to play “THD”-enhanced games, which are roughly comparable in graphics quality to modern iPad or Xbox games. Finally, the model that AT&T is offering a discount on has both HSPA+ (a slower version of 4G) wireless Internet and 32 GB of storage, a combination which costs $ 559 on a similarly palm-sized iPad Mini. The Nexus 7 is only $ 299, and that’s before the $ 100 credit.


AT&T’s plans


The cheapest plan available is the $ 10 Mobile Share plan, which allows you to add the tablet to a plan that you already have. The next cheapest is AT&T’s $ 15 plan, which offers only 250 MB per month — okay for occasional email and web surfing, but completely inadequate for streaming videos regularly. Its $ 30 plan offers 3 GB of data, which still won’t stand up to constant Netflix viewing but will hold up much better than the $ 15 one.


What else is there?


The iPad and iPad Mini are also available (and much more expensive) from AT&T, as is a new Lenovo IdeaTab. It’s available for $ 199 off-contract and $ 99 on a two-year contract, but it’s not as fast or powerful as the Nexus 7, can’t play the same games, and has much less storage space.


Finally, if you like the Nexus 7 but aren’t sure you’ll still want it in two years (especially since the hardware is half a year old already), AT&T offers month-to-month wireless plans, which can be canceled at any time without paying an early termination fee. You just won’t get the $ 100 discount unless you sign a two-year contract.


Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.


Wireless News Headlines – Yahoo! News





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Drew Barrymore Reveals Her Favorite Red Carpet Look

In a new interview with People, Drew Barrymore is revealing her favorite beauty red carpet moment of all time -- and the choice is surprising to say the least.

Drew chose her much-criticized look at the Los Angeles premiere of her HBO film Grey Gardens, where she rocked voluminous blonde locks and retro makeup.

Pics: The Top 10 Celebrity Collections

"We did this big blonde hair for the L.A. premiere of Grey Gardens. Giant big blonde hair with very '60s makeup. I had more hair in my head than I knew what to do with," she recalls.

She also lists her tanned appearance at the Music and Lyrics premiere in Los Angeles as one of her favorite looks.

"I had this black Roberto Cavalli halter dress and big gold hoop earrings. My hair was in a very tight bun and my makeup was very bronzy and natural," she explains.

Video: Drew Barrymore Opens Up About Motherhood

Clearly, Drew prefers her more polarizing looks, listing her "blonde hair, black tips" phase as her favorite hair color ever.

"This is 100 percent easy," she says of the choice. "I could only have it for so long because of my Cover Girl contract so I just had to chop it all off. Happiest time ever."

As for her surprising choice for recently launching a makeup line at mass retailer Walmart, called Flower, Drew hopes it will be a "game change."

"I banged my head against the wall trying to figure out how to do things different. We're doing prestige formulas at mass. That's what people deserve. I spent as much of my time testing pigments and shades as I did fighting price points. We didn't put money into marketing, we're putting everything into the formulas and therefore into people's hands," she says. "That's what excites me and gives me butterflies."

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Study: NYC better than LA at cutting kids' obesity


NEW YORK (AP) — A new study shows New York City is doing better than Los Angeles in the battle against childhood obesity, at least for low-income children.


From 2003 to 2011, obesity rates for poor children dropped in New York to around 16 percent. But they rose in Los Angeles and ended at about 20 percent.


The researchers focused on children ages 3 and 4 enrolled in a government program that provides food and other services to women and their young children.


The Centers for Disease Control and Prevention released the study Thursday.


The authors noted that the Los Angeles program has many more Mexican-American kids. Obesity is more common in Mexican-American boys than in white or black kids.


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Wall Street flat as Apple gains; Boeing drags Dow

NEW YORK (Reuters) - Stocks held near the unchanged mark on Wednesday as concerns about global economic growth and a drop in Boeing shares offset strong bank results and gains in technology stocks.


Goldman Sachs shares hit their highest level since May 31, 2011 as earnings nearly tripled on increased revenue from dealmaking and lower compensation expenses, while JPMorgan Chase said fourth-quarter net income jumped 53 percent and earnings for 2012 set a record.


JPMorgan shares edged up 0.2 percent at $46.44 and Goldman was up 3.5 percent to $140.27. The KBW bank index <.bkx> gained 0.3 percent.


But with only 37 companies in the S&P 500 having reported earnings so far this season, investors are exercising caution until signs of growth can emerge.


According to Thomson Reuters data, S&P 500 earnings growth is now seen up 2.2 percent from a year ago, Thomson Reuters data showed.


"We didn't have much in the way of earnings, we had some of the big banks, but you've got the heart of earnings season coming up and people are sort of on the sidelines here," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.


A slow economic recovery in developed nations is holding back the global economy, the World Bank said on Tuesday, as it sharply scaled back its forecast for world growth in 2013 to 2.4 percent from an earlier forecast of 3.0 percent.


Shares of Dow component Boeing fell 3.3 percent to $74.39, the biggest drag on the Dow, on concerns about its new Dreamliner passenger jets. Japan's two leading airlines grounded their fleets of 787s after an emergency landing, adding to safety concerns triggered by a series of recent incidents.


The Dow Jones industrial average <.dji> dropped 35.95 points, or 0.27 percent, to 13,498.94. The Standard & Poor's 500 Index <.spx> shed 1.60 points, or 0.11 percent, to 1,470.74. The Nasdaq Composite Index <.ixic> gained 2.91 points, or 0.09 percent, to 3,113.68.


Losses were curbed on the S&P 500 and the Nasdaq moved higher on a bounce in Apple shares, which were up 3.6 percent at $503.31 after losses in three straight sessions. Morgan Stanley stamped the tech giant as a "best idea," citing overblown concerns about iPhone shipments. The S&P technology sector index <.splrct> gained 0.5 percent.


"Apple rebounding certainly helps the market - if Apple wasn't rebounding I don't think we would be at a flat level," said Ghriskey.


Talks to take Dell Inc private were at an advanced stage, with at least four major banks lined up to provide financing, two sources with knowledge of the matter told Reuters. Shares fell 4.6 percent to $12.57 after jumping more than 21 percent over the past two sessions.


U.S. consumer prices were flat in December, pointing to muted inflation pressures that should give the Federal Reserve room to prop up the economy by staying on its ultra-easy monetary policy path.


Other data showed U.S. homebuilder confidence in the market for single family homes held steady near seven year highs in January, suggesting the outlook for the housing market remained upbeat.


(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)



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Dozens held after Islamists attack Algerian gas field


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


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


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


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


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


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


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


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


ARMED MEN


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


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


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


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


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


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


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


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


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


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


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


SECURITY IMPLICATIONS


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


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


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


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


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


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


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


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


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


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



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“GameStick” and NVIDIA “Project SHIELD” Consoles-in-a-Controller on Their Way






Both GameStick and NVIDIA’s Project Shield are upcoming game consoles the size of a game controller, which can hook up to a larger display. Both are powered by Android, Google‘s open-source operating system that’s normally used on smartphones and tablets. And both have working hardware prototypes already. But one is a $ 99 Kickstarter project by an indie group, while the other has the backing of two major companies in the PC gaming world — and will probably be a lot more expensive when it comes out.


Here’s a look at two upcoming TV game consoles that you’ll be able to fit in your pocket or handbag.






GameStick: Exactly what it sounds like


Imagine a tiny, rectangular game controller, sort of like a Wii Remote with more buttons and twin analog sticks. On one side is a plastic bump, that when you pull it off it becomes this gadget the size of a USB memory stick that plugs into a TV’s HDMI port. That’s GameStick, and with 19 days left to go in its Kickstarter fund-raiser it’s managed to raise more than three times the $ 100,000 its creators asked for.


GameStick will have 8 GB of flash memory, and a processor capable of handling modern AAA Android games like Shadowgun, plus 1080p video. If you don’t like the controller it comes with, you’ll be able to connect up to four of your own via Bluetooth, or even use your Android or iOS smartphone or tablet as a controller.


Project SHIELD: A controller that can stop bullets


Maybe it can’t literally serve as a shield. But at about the size of the original Xbox’s controller, the “portable” console NVIDIA showed off at this year’s CES sure looks like it can. It’s powered by a next-generation Tegra 4 processor, and features its own built-in 5-inch multitouch screen for gaming on the go. But it can also connect to a TV, and can even stream PC games via Steam’s Big Picture mode, which was designed for controller games.


A not-so-silver lining?


GameStick’s biggest weakness may be its developer support. Its Kickstarter page mentions the hundreds of thousands of Android games out there, but most of those are only on Google Play, which (unlike most of the rest of Android) is proprietary to Google. Time will tell whether its creators can get enough developers to write games for the platform by the time of its planned April launch, or enough gamers to buy games they might already have on their tablets.


In contrast, between full support for the Google Play store and PC game streaming from Steam, Project SHIELD will have thousands and thousands of games, and there will be no need to repurchase titles you’ve already bought from either store. There’s no word from NVIDIA yet, though, on how much its game console will cost or even when it will launch.


Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.


Linux/Open Source News Headlines – Yahoo! News




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Diff'rent Strokes Star Conrad Bain Dies

Conrad Bain, best known for playing Philip Drummond on Diff'rent Strokes, has passed away. He was 89 years old.

Bain died Monday night in his hometown of Livermore, CA, of natural causes, The Washington Post reports.

Related: Gary Coleman's 'Diff'rent Strokes' Co-Stars React to His Death

Bain's television credits include the 1972 series Maude, and guest star appearances on The Facts of Life and The Fresh Prince of Bel-Air, in which he reprose his iconic Mr. Drummond role. The show that made him famous -- Diff'rent Strokes -- debuted in 1978 and lasted eight seasons.

Related: 'Diff'rent Strokes' Star Todd Bridges & Wife Split

He has three sons and one daughter with wife Monica Sloan, who passed away in 2009. He is also survived by his twin brother Bonar Bain.

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ER visits tied to energy drinks double since 2007


SAN FRANCISCO (AP) — A new government survey suggests the number of people seeking emergency treatment after consuming energy drinks has doubled nationwide during the past four years, the same period in which the supercharged drink industry has surged in popularity in convenience stores, bars and on college campuses.


From 2007 to 2011, the government estimates the number of emergency room visits involving the neon-labeled beverages shot up from about 10,000 to more than 20,000. Most of those cases involved teens or young adults, according to a survey of the nation's hospitals released late last week by the Substance Abuse and Mental Health Services Administration.


The report doesn't specify which symptoms brought people to the emergency room but calls energy drink consumption a "rising public health problem" that can cause insomnia, nervousness, headache, fast heartbeat and seizures that are severe enough to require emergency care.


Several emergency physicians said they had seen a clear uptick in the number of patients suffering from irregular heartbeats, anxiety and heart attacks who said they had recently downed an energy drink.


More than half of the patients considered in the survey who wound up in the emergency room told doctors they had downed only energy drinks. In 2011, about 42 percent of the cases involved energy drinks in combination with alcohol or drugs, such as the stimulants Adderall or Ritalin.


"A lot of people don't realize the strength of these things. I had someone come in recently who had drunk three energy drinks in an hour, which is the equivalent of 15 cups of coffee," said Howard Mell, an emergency physician in the suburbs of Cleveland, who serves as a spokesman for the American College of Emergency Physicians. "Essentially he gave himself a stress test and thankfully he passed. But if he had a weak heart or suffered from coronary disease and didn't know it, this could have precipitated very bad things."


The findings came as concerns over energy drinks have intensified following reports last fall of 18 deaths possibly tied to the drinks — including a 14-year-old Maryland girl who died after drinking two large cans of Monster Energy drinks. Monster does not believe its products were responsible for the death.


Two senators are calling for the Food and Drug Administration to investigate safety concerns about energy drinks and their ingredients.


The energy drink industry says its drinks are safe and there is no proof linking its products to the adverse reactions.


Late last year, the FDA asked the U.S. Health and Human Services to update the figures its substance abuse research arm compiles about emergency room visits tied to energy drinks.


The Substance Abuse and Mental Health Services Administration's survey was based on responses it receives from about 230 hospitals each year, a representative sample of about 5 percent of emergency departments nationwide. The agency then uses those responses to estimate the number of energy drink-related emergency department visits nationwide.


The more than 20,000 cases estimated for 2011 represent a small portion of the annual 136 million emergency room visits tracked by Centers for Disease Control and Prevention.


The FDA said it was considering the findings and pressing for more details as it undertakes a broad review of the safety of energy drinks and related ingredients this spring.


"We will examine this additional information ... as a part of our ongoing investigation into potential safety issues surrounding the use of energy-drink products," FDA spokeswoman Shelly Burgess said in a statement.


Beverage manufacturers fired back at the survey, saying the statistics were misleading and taken out of context.


"This report does not share information about the overall health of those who may have consumed energy drinks, or what symptoms brought them to the ER in the first place," the American Beverage Association said in a statement. "There is no basis by which to understand the overall caffeine intake of any of these individuals — from all sources."


Energy drinks remain a small part of the carbonated soft drinks market, representing only 3.3 percent of sales volume, according to the industry tracker Beverage Digest. Even as soda consumption has flagged in recent years, energy drinks sales are growing rapidly.


In 2011, sales volume for energy drinks rose by almost 17 percent, with the top three companies — Monster, Red Bull and Rockstar — each logging double-digit gains, Beverage Digest found. The drinks are often marketed at sporting events that are popular among younger people such as surfing and skateboarding.


From 2007 to 2011, the most recent year for which data was available, people from 18 to 25 were the most common age group seeking emergency treatment for energy drink-related reactions, the report found.


"We were really concerned to find that in four years the number of emergency department visits almost doubled, and these drinks are largely marketed to younger people," said Al Woodward, a senior statistical analyst with the Substance Abuse and Mental Health Services Administration who worked on the report.


Emergency physician Steve Sun said he had seen an increase in such cases at the Catholic hospital where he works on the edge of San Francisco's Golden Gate Park.


"I saw one young man who had mixed energy drinks with alcohol and we had to admit him to the hospital because he was so dehydrated he had renal failure," Sun said. "Because he was young he did well in the hospital, but if another patient had had underlying coronary artery disease, it could have led to a heart attack."


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Follow Garance Burke on Twitter at http://twitter.com/garanceburke


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Wall Street pulls flat as Apple pares losses, retailers gain

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


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


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


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


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


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


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


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


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


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


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


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


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


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


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



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France to stay in Mali until stability restored


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


QUESTIONS OVER READINESS


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


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


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


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


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


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


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


FRENCH LINING UP SUPPORT


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


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


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


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


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


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


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


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


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


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


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


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



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