Police and protesters clash in Egypt, army sent to Suez

CAIRO (Reuters) - Egyptian protesters scuffled with police in Cairo on Saturday and troops were deployed in Suez after nine people were shot dead in nationwide protests against President Mohamed Mursi, exposing deep rifts two years after Hosni Mubarak was ousted.

After a day of clashes on Friday, tension remained high with a court expected to rule later on Saturday in a case against suspects accused of involvement in a stadium disaster that killed 74 people. Fans have threatened violence if the court does not deliver the justice they seek.

Eight people including a policeman were shot dead in Suez, east of the capital, and another was shot and killed in Ismailia, another city on the Suez Canal, medics said, after a day when police fired tear gas at stone-throwing youths.

Another 456 people were injured across Egypt, officials said, in Friday's unrest fuelled by anger at Mursi and his Islamist allies over what the protesters see as their betrayal of the revolution that erupted on January 25, 2011.

"We want to change the president and the government. We are tired of this regime. Nothing has changed," said Mahmoud Suleiman, 22, in Cairo's Tahrir Square, near where youths were still hurling stones at police on the other side of a concrete barrier early on Saturday morning.

The protests and violence have laid bare the divide between the Islamists and their secular rivals. The schism is hindering the efforts of Mursi, elected in June, to revive an economy in crisis and reverse a plunge in Egypt's currency by enticing back investors and tourists.

Protesters accuse Mursi and his Islamist allies of hijacking Egypt's revolution that ended 30 years of Mubarak's autocratic rule. Mursi's supporters say their critics are ignoring democratic principles after elections swept Islamists to office.

"The protests will continue until we realize all the demands of the revolution - bread, freedom and social justice," Ahmed Salama, 28, a protester camped out with dozens of others in Tahrir Square, the cauldron of the 2011 revolt.

The court hearing over the Port Said stadium disaster in February last year has fuelled concerns of more unrest.

Live images were shown from inside the court shortly before the session began. Some of those attending chanted for justice and held up pictures of those killed.

The court on the outskirts on Cairo, and in the same police compound where Mubarak was tried and jailed, is due to rule on Saturday in the cases brought against 73 people, 61 of whom are charged with murder in what was Egypt's worst stadium disaster.

However, the public prosecutor has said new evidence has emerged, meaning a verdict may be postponed.

PRESIDENT URGES CALM

Alongside the 61 charged with murder, another 12 defendants, including nine police officers, are accused of helping to cause the February 1, 2012, disaster at the end of a match between Cairo's Al Ahly and al-Masri, the local side.

Expecting a verdict, hardcore Al Ahly fans, known as ultras, have protested in Cairo over the last week, obstructing the transport network. The Port Said disaster triggered days of street battles near the Interior Ministry in Cairo last year.

In a statement in response to Friday's violence, Mursi said the state would not hesitate in "pursuing the criminals and delivering them to justice". He urged Egyptians to respect the principles of the revolution by expressing views peacefully.

The president was due to meet later on Saturday with the National Defense Council, which includes senior ministers and security officials, to discuss the violence and deaths as a result of the protests.

Troops were deployed in Suez after the head of the state security police in the city asked for reinforcements. The army distributed pamphlets to residents assuring them the deployment was temporary and meant to secure the city.

"We have asked the armed forces to send reinforcements on the ground until we pass this difficult period," Adel Refaat, head of state security in Suez, told state television.

Street battles erupted in cities including Cairo, Alexandria, Suez and Port Said. Arsonists attacked at least two state-owned buildings. An office used by the Muslim Brotherhood's political party was also torched.

The Brotherhood decided against mobilizing for the anniversary, wary of the scope for more conflict after December's violence, stoked by Mursi's decision to fast-track an Islamist-tinged constitution rejected by his opponents.

Inspired by the popular uprising in Tunisia, Egypt's revolution spurred further revolts across the Arab world. But the sense of common purpose that united Egyptians two years ago has given way to internal strife that already triggered bloody street battles last month.

(Additional reporting by Tom Perry, Marwa Awad, Ali Abdelatti and Omar Fahmy; Writing by Edmund Blair; Editing by Andrew Heavens)

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Latin America, Europe open summit to boost trade

SANTIAGO: Latin American and European leaders open a two-day summit Saturday to give a fresh impetus to efforts to seal a free trade agreement between their two blocs.

Attending the gathering are some 45 leaders, including German Chancellor Angela Merkel, Spanish Prime Minister Mariano Rajoy, Brazilian President Dilma Rousseff, Cuban leader Raul Castro as well as European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso.

Although the two blocs have met seven times, it is the 27-member European Union's first summit with the Community of Latin American and Caribbean States (CELAC, its Spanish-language acronym).

Set up in Caracas in December 2011 at the behest of Venezuelan President Hugo Chavez, CELAC groups all American nations except the United States and Canada and aims to boost regional trade and institutional cooperation,.

Chavez, who is convalescing from cancer surgery in Cuba, will not attend the weekend gathering.

Monday, CELAC leaders will hold their own summit here, with Cuba taking over the chairmanship from Chile for one year.

The meeting will seal Cuba's full regional reintegration and mark a major diplomatic coup for President Castro, whose communist-ruled country is still reeling from a 50-year-old crippling US trade embargo.

The 33 CELAC leaders hope to overcome their ideological and economic differences to foster greater regional integration.

"Our efforts (in this area) have not lived up to that is needed and what Latin America deserves," Chilean President Sebastian Pinera conceded.

Shortly before Castro landed here on Friday, about 200 people protested both for and against Havana.

An estimated 100 demonstrators massed outside the Cuban embassy, heeding a call by Chile's ruling party, the conservative Independent Democratic Union, or UDI, to demonstrate against the Castro`s presence in the Chilean capital.

The UDI accuses Castro of harboring the murderers of their party's founder, Jaime Guzman, a senator who was killed in 1991 by the nearly extinct radical leftist group Patriotic Front of Manuel Rodriguez.

The UDI president, along with other lawmakers, also came to the embassy to deliver a letter demanding to know the whereabouts in Cuba of those they allege killed Guzman: Ricardo Poblete, and three other accomplices.

However, the lawmakers were denied entry and then threw the letter into the garden.

Another 100 demonstrators, from a "Group of Solidarity with Cuba," also gathered near the embassy to show support for Cuba .

Ahead of the EU-CELAC summit, Pinera, the host, said the meeting aimed to "to seal a new strategic alliance for development and more open markets."

"It will be the first timethat Latin America will speak with one voice" with Europe, Chilean Foreign Minister Alfredo Moreno said recently.

The EU is the biggest outside investor in Latin America, with three per cent of the direct foreign investment in CELAC or $385 billion in 2010.

Thursday, Van Rompuy and Barroso attended a EU-Brazil summit with Brazilian President Dilma Rousseff in Brasilia.

The two sides called for the speedy conclusion of a free trade pact between the EU and the South American trading bloc Mercosur.

Negotiations over the pact have so far stumbled over differences on agriculture -- notably Europe's subsidies to its farmers, which undermine South America's efforts to sell its own products.

Meanwhile, a parallel Summit of the Peoples got under way here Friday with a march of 1,000 leftists protesting capitalist economic policies.

The march turned violent when hooded demonstrators tore down traffic lights and shops' shutters in central Santiago, prompting police to intervene with water cannons ans tear gas.

At least five protesters were arrested.

The two-day counter-summit brings together representatives of more than 400 social movements from across Latin America and Europe.

- AFP/fa

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Republic Day functions held peacefully in Kashmir Valley

SRINAGAR: The Republic Day functions in the Kashmir Valley passed off peacefully Saturday, with Rural Development Minister Ali Muhammad Sagar saying the gun had only caused destruction.

Taking salute at the main parade in the summer capital Srinagar, Sagar said peace was a national agenda which would be pursued notwithstanding "recent provocative developments".

Contingents of police, paramilitary forces and the army marched before the podium inside the highly-secured Bakshi Stadium in the city which had been sealed days ahead of the function.

Entry into the stadium was regulated by security personnel using metal detectors. They also frisked people entering the stadium.

No untoward incident was reported anywhere in the Kashmir Valley where Republic Day parades were held at all district headquarters and important state and central installations.

Despite sub-zero temperatures, there was visible enthusiasm and patriotic fervor in Leh and Kargil towns of Ladakh region.

Separatists called for a protest shutdown Saturday in the Kashmir Valley.

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CDC: Flu seems to level off except in the West

New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.

The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.

Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.

There is still vaccine available although it may be hard to find. The CDC has a website that can help.

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

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WH, Senators to Begin Push on Immigration Reform

The White House and a bipartisan group of senators next week plan to begin their efforts to push for comprehensive immigration reform.

President Barack Obama will make an announcement on immigration during a Tuesday trip to Las Vegas, Nevada, the White House said on Friday. The Senate group is expected make their plans public around the same time, the Associated Press reported.

See Also: Where Do Labor Unions Stand on Immigration?

For Obama, immigration reform is a campaign promise that has remained unfulfilled from his first White House run in 2008. During his 2012 re-election campaign, the president vowed to renew his effort to overhaul the nation's immigration system. It has long been expected that Obama would roll out his plans shortly after his inauguration.

The president's trip to Las Vegas is designed "to redouble the administration's efforts to work with Congress to fix the broken immigration system this year," the White House said.

Ever since November's election, in which Latino voters turned out in record numbers, Republicans and Democrats have expressed a desire to work on immigration reform. Obama has long supported a bill that would make many of the nation's 11 million undocumented immigrants without criminal records eligible to apply for an earned pathway to citizenship, which includes paying fines and learning English.

Charles Dharapak/AP Photo

But the debate over a pathway to citizenship is expected to be contentious. Other flashpoints in an immigration reform push could include a guest-worker program, workplace enforcement efforts, border security, and immigration backlogs.

In a statement, the White House said that "any legislation must include a path to earned citizenship."

Ahead of his immigration push next week, Obama met today with a group of lawmakers from the Congressional Hispanic Caucus (CHC), including chairman Rubén Hinojosa (D-Texas) , Sen. Bob Menendez (D-N.J.), Democratic Caucus Chair Rep. Xavier Becerra (D-Calif.), and CHC Immigration Task Force Chair Rep. Luis Gutierrez (D-Ill.), the latter's office said. CHC members are expected to play a pivotal role in the debate.

"The president is the quarterback and he will direct the team, call the play, and be pivotal if we succeed. I am very optimistic based on conversations with Republicans in the House and Senate that we will do more than just talk about the immigration issue this year," Gutierrez said in a statement following the CHC meeting with Obama. "The president putting his full weight and attention behind getting a bill signed into law is tremendously helpful. We need the president and the American people all putting pressure on the Congress to act because nothing happens in the Capitol without people pushing from the outside."

A bipartisan group of eight senators, which includes Menendez, has also begun talks on drafting an immigration bill and will play an integral part in the process of passing a bill through Congress. Sen. Marco Rubio (R-Fla.), who has been participating in talks with others senators, has also unveiled his own outline for an immigration proposal.

The group of senators have reportedly eyed Friday as the date when they'll unveil their separate proposal, according to the Washington Post.

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Japan envoy says territory disputes with China can be resolved

BEIJING (Reuters) - Japan believes tensions with China fanned by a dispute over a group of uninhabited islands can be resolved, a special envoy from Tokyo said on Friday after meeting China's president-in-waiting, Xi Jinping.

Natsuo Yamaguchi, head of New Komeito, the junior partner in Japan's ruling coalition, said Japan will take a broad view in dialogue with Beijing to resolve the dispute between the world's second- and third-largest economies, which has escalated in recent weeks.

"Japan wishes to pursue ties with China while looking at the big picture," Yamaguchi told reporters after his meeting with Xi, the chief of China's ruling Communist Party who is set to take over as president in March.

"I firmly believe our differences with China can be resolved," Yamaguchi said, adding that he did not directly discuss the islands issue with Xi.

Japan's nationalization in September of some of the islands, known as Senkaku in Japan and Diaoyu in China, sparked violent anti-Japanese protests across China. Some Japanese businesses were looted and Japanese citizens attacked.

Japanese manufacturers reported considerably lower sales in China in the following months.

Japanese military planes have in recent weeks been scrambled numerous times against Chinese planes approaching airspace over the islands.

Chinese planes have been shadowing Japanese aircraft elsewhere over the East China Sea and patrol vessels from the two countries have played a game of cat-and-mouse near the islands.

Yamaguchi said he delivered a letter to Xi from Japanese Prime Minister Shinzo Abe.

"We agreed that it is important to continue dialogue with the aim of holding a Japan-China summit between the two leaders," he said, though no specific details were given.

While Yamaguchi has no formal position in the government, he is leader of relatively dovish New Komeito, which joined the Liberal Democratic Party in its return to power last month. LDP leader Abe became prime minister.

China insists the islands are its territory and that it will brook no dispute over the matter.

The islands were put under Japan's control in 1895 and were part of the post-World War Two U.S. military occupation zone from 1945-72. They were then returned to Tokyo by U.S. authorities in a decision China and Taiwan later contested.

China has asked the United Nations to consider later this year the scientific validity of its claim over the islands as a natural extension of its continental shelf under a U.N. convention.

Japan says the world body should not be involved.

(Reporting by Terril Yue Jones, writing by Michael Martina,; editing by Jonathan Standing and Ron Popeski)

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Xi Jinping given Japan PM's letter amid islands row

BEIJING: An envoy from Tokyo handed Chinese leader Xi Jinping a personal letter from new Japanese Prime Minister Shinzo Abe on Friday, in a meeting aimed at smoothing relations amid a bitter territorial row.

Natsuo Yamaguchi, head of the New Komeito party, the junior partner in Japan's ruling coalition, is the most senior Japanese parliamentarian to visit China since the long-running row over disputed islands intensified last September.

At the Great Hall of the People in Beijing both sides expressed appreciation for the trip before beginning private talks, and it was not revealed what the letter said.

"Mr Yamaguchi visits China at a period in which Sino-Japanese relations face a special situation. We attach great importance to your visit," said Xi, the head of China's ruling Communist party and the country's president-to-be.

Yamaguchi said he was "incomparably happy" about the meeting.

While he has no official role in the Tokyo government headed by the hawkish Abe, the occasion was a rare positive step as the territorial dispute weighs heavily on relations between the two Asian giants.

Beijing has repeatedly sent ships to waters near the islands since Japan nationalised part of the chain in September, a move that triggered a diplomatic dispute and huge anti-Japan demonstrations across China.

China has also sent air patrols near the Tokyo-controlled islands, known as the Senkakus in Japan but claimed by Beijing as the Diaoyus. The chain could sit atop vast mineral reserves, it is believed.

Earlier this week, Yamaguchi said he hoped to improve ties but that Tokyo had no plans to compromise over the islands.

"I would like to make a step toward opening the door to normalising our relations," he told reporters before his departure.

Regarding the islands, he said: "Our stance is that no territorial problem exists. That's a shared recognition among the government and coalition."

- AFP/fa

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Won't get fair treatment in BJP without Yeddyurappa: Shobha Karandlaje

BANGALORE: Even as chief minister Jagadish Shettar delays acceptance of her resignation letter from the ministry - purportedly to arm-twist the BJP rebels - Shobha Karandlaje wants to get done with the party at the earliest. In an interview to TOI, Shobha claims she can experiment with her political career by leaving a national party like the BJP.

Why did you quit the BJP and RSS, which helped you become what you are today?
With former CM B S Yeddyurappa leaving the BJP, who could I trust and bank upon for my political future? This is the question I posed to BJP seniors. As a minister for the past four-and-a-half years, nobody encouraged or supported me other than Yeddyurappa. So whom do I trust in the BJP? The party adopted one rule for Yeddyurappa and another for others, hatched conspiracies against him and were successful.

Will I get a fair treatment now without him in the BJP?

Is there no one in the BJP, who will encourage you?
Besides Yeddyurappa, BJP leader Arun Jaitley stood by me when I was dropped from the cabinet to placate the Reddy brothers in 2009. Jaitley was concerned that I should be reinducted into the cabinet after things became better. Sushma Swaraj was also helpful, but after a time withdrew.

What future do you see for yourself in the KJP vis-vis a national party like BJP, which would have given you a wide political canvass?
Political parties needn't always be governing. I am a person who needs freedom to work and I will get this in KJP. A regional party is inevitable to amplify the issues pertaining to Karnataka. In New Delhi, only the voices of J Jayalalithaa, Mamata Banerjee, Nitish Kumar or Biju Patnaik are heard, only because they are strong regional parties. National parties in Karnataka have been taken for granted.

There is apprehension among those wanting to join the KJP that you will call the shots. Recently, Kannada actor Madan Patel quit, accusing you of denying him assembly ticket from Malavalli.
I have not joined the KJP formally. But how many times has Patel visited Malavalli? The ticket has been given to a local candidate Muniraju, who has been nurturing the constituency for the past four years and quit the BJP to join KJP. What's wrong in that? I am least bothered by such talk.

There was a similar complaint against you of interfering in other departments while in the cabinet?
Let those who speak of my interference cite one example of my seeking favours regarding transfers or for issuing tenders. If questions cannot be asked why should there be a cabinet meeting? The CM can call each department's minister and hold discussions. If one wants to get to the truth, such questions are seen as interference. I am not going to break my head on that.

Would you reconsider returning to BJP, if space and trust is ensured to you?
Where are the leaders in the BJP to call me? The party has got fragmented.

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Penalty could keep smokers out of health overhaul

WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.

The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.

For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.

Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.

Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.

Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.

Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.

Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.

"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.

"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.

Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.

"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."

Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.

First, the law allows insurers to charge older adults up to three times as much as their youngest customers.

Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.

And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.

Here's how the math would work:

Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.

But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.

"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.

In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.

Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.

"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."

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Online:

Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx

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It's Official: Women Will Serve in Combat

Women will soon be able to serve in combat, as things officially changed with the stroke of a pen today at the Pentagon.

At a joint news conference, Secretary of Defense Leon Panetta and Joint Chiefs of Staff Charman Gen. Martin Dempsey signed a memorandum rolling back a 1994 directive prohibiting women from doing so.

"They serve, they're wounded, and they die right next to each other," Panetta said of women and men in the military. "The time has come to recognize that reality.

"If they're willing to put their lives on the line, then we need to recognize that they deserve a chance," Panetta said, noting that he wants his own granddaughters and grandsons to have the same opportunities in their lives and careers.

The change won't be immediate, however. While Panetta announced that thousands of new positions will now be open to women, he has asked the military branches to submit plans by May on how to integrate women into combat operations. He set a January 2016 deadline for branches to implement the changes, giving military services time to seek waivers for certain jobs.

Both Panetta and Dempsey said they believe the move will strengthen the U.S. military force.

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"Ultimately, we are acting to strengthen the armed forces," Dempsey said. "We will extend opportunities to women in a way that maintains readiness, morale and unit cohesion."

Women have already served in combat in Iraq and Afghanistan, as ABC News' Martha Raddatz and Elizabeth Gorman reported in 2009: Prohibited from serving in roles "whose primary mission is to engage in direct combat on the ground," women in support roles, nonetheless, served in support roles on the frontlines, where they have fought, been wounded and died.

Women have also flown combat missions since 1993 and have served on submarines since 2010.

Panetta noted that 152 women have died serving in the U.S. military in Iraq and Afghanistan. Dempsey said he realized a change was inevitable when he noticed two female turret gunners protecting a senior military officer.

"It's clear to all of us that women are contributing in unprecedented ways to the military's mission of defending the nation," Panetta said. "Women represent 15 percent of the force of over 200,000 [and] are serving in a growing number of critical roles on and off the battlefield.

"I've gone to Bethesda to visit wounded warriors, and I've gone to Arlington to bury our dead. There's no distincton."

Panetta and Dempsey said President Obama supported the move, while warning them to maintain military readiness as they considered the change.

Obama hailed the move in a written statement

"Today, by moving to open more military positions -- including ground combat units -- to women, our armed forces have taken another historic step toward harnessing the talents and skills of all our citizens," he said.

"This milestone reflects the courageous and patriotic service of women through more than two centuries of American history and the indispensable role of women in today's military," Obama said.

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North Korea to target U.S. with nuclear, rocket tests

SEOUL (Reuters) - North Korea said on Thursday it would carry out further rocket launches and a nuclear test that would target the United States, dramatically stepping up its threats against a country it called its "sworn enemy".

The announcement by the country's top military body came a day after the U.N. Security Council agreed to a U.S.-backed resolution to censure and sanction North Korea for a rocket launch in December that breached U.N. rules.

"We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States," North Korea's National Defence Commission said, according to state news agency KCNA.

North Korea is believed by South Korea and other observers to be "technically ready" for a third nuclear test, and the decision to go ahead rests with leader Kim Jong-un who pressed ahead with the December rocket launch in defiance of the U.N. sanctions.

China, the one major diplomatic ally of the isolated and impoverished North, agreed to the U.S.-backed resolution and it also supported resolutions in 2006 and 2009 after Pyongyang's two earlier nuclear tests.

Thursday's statement by North Korea represents a huge challenge to Beijing as it undergoes a leadership transition with Xi Jinping due to take office in March.

China's Foreign Ministry called for calm and restraint and a return to six-party talks, but effectively singled out North Korea, urging the "relevant party" not to take any steps that would raise tensions.

"We hope the relevant party can remain calm and act and speak in a cautious and prudent way and not take any steps which may further worsen the situation," ministry spokesman Hong Lei told reporters at a regular press briefing.

North Korea has rejected proposals to restart the talks aimed at reining in its nuclear capacity. The United States, China, Russia, Japan and the two Koreas are the six parties involved.

"After all these years and numerous rounds of six-party talks we can see that China's influence over North Korea is actually very limited. All China can do is try to persuade them not to carry out their threats," said Cai Jian, an expert on Korea at Fudan University in Shanghai.

Analysts said the North could test as early as February as South Korea prepares to install a new, untested president or that it could choose to stage a nuclear explosion to coincide with former ruler Kim Jong-il's Feb 16 birthday.

"North Korea will have felt betrayed by China for agreeing to the latest U.N. resolution and they might be targeting (China) as well (with this statement)," said Lee Seung-yeol, senior research fellow at Ewha Institute of Unification Studies in Seoul.

U.S. URGES NO TEST

Washington urged North Korea not to proceed with a third test just as the North's statement was published on Thursday.

"Whether North Korea tests or not is up to North Korea," Glyn Davies, the top U.S. envoy for North Korean diplomacy, said in the South Korean capital of Seoul.

"We hope they don't do it. We call on them not to do it," Davies said after a meeting with South Korean officials. "This is not a moment to increase tensions on the Korean peninsula."

The North was banned from developing missile and nuclear technology under sanctions dating from its 2006 and 2009 nuclear tests.

A South Korean military official said the concern now is that Pyongyang could undertake a third nuclear test using highly enriched uranium for the first time, opening a second path to a bomb.

North Korea's 2006 nuclear test using plutonium produced a puny yield equivalent to one kiloton of TNT - compared with 13-18 kilotons for the Hiroshima bomb - and U.S. intelligence estimates put the 2009 test's yield at roughly two kilotons

North Korea is estimated to have enough fissile material for about a dozen plutonium warheads, although estimates vary, and intelligence reports suggest that it has been enriching uranium to supplement that stock and give it a second path to the bomb.

According to estimates from the Institute for Science and International Security from late 2012, North Korea could have enough weapons grade uranium for 21-32 nuclear weapons by 2016 if it used one centrifuge at its Yongbyon nuclear plant to enrich uranium to weapons grade.

North Korea gave no time-frame for the coming test and often employs harsh rhetoric in response to U.N. and U.S. actions that it sees as hostile.

Its long-range rockets are not seen as capable of reaching the United States mainland and it is not believed to have the technology to mount a nuclear warhead on a long-range missile.

The bellicose statement on Thursday appeared to dent any remaining hopes that Kim Jong-un, believed to be 30 years old, would pursue a different path from his father Kim Jong-il, who oversaw the country's military and nuclear programs.

The older Kim died in December 2011.

"The UNSC (Security Council) resolution masterminded by the U.S. has brought its hostile policy towards the Democratic Peoples Republic of Korea (North Korea) to its most dangerous stage," the commission was quoted as saying.

(Additional reporting by Christine Kim in SEOUL, Ben Blanchard and Sui-Lee Wee in Beijing; Writing by David Chance; Editing by Raju Gopalakrishnan)

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Is it a bird? A plane? No, just a guy named Oscar

BUENOS AIRES: He was a self-styled superhero, prowling the gritty outskirts of Buenos Aires wearing a mask and cartoonish outfit and armed only with a flashlight, compass and pepper spray as he took on bad guys.

But now his cover is blown, thanks to an alleged shootout with muggers, and the superhero is charged with carrying an unlicensed gun, police said Wednesday.

The man who called himself Menganno -- Spanish for Joe Blow -- and became famous in Argentine media is actually one Oscar Lefosse, 43, a former cop who served from 1986 to 1996. It turns out his gun license expired a year ago.

On Monday, Lefosse told police that three petty criminals opened fire on his car as he drove with his wife. He returned fire with his Glock pistol.

On his Facebook page, "Menganno" -- 33,000 followers -- posted a photo of what he said was his bullet ridden car.

But a policeman quoted by the news agency Telam said the shots all came from inside the car.

"He could have killed somebody, an innocent bystander. He is irresponsible," the official said.

In an interview with AFP in 2010, Menganno described himself as "a real, flesh and blood superhero. My goal is for all of us to be better and show more solidarity. Injustice makes me sick."

He said then that he only defended himself with a flashlight, pepper spray and a compass, and had a company in the security sector. He did not elaborate.

"I do not walk around the street armed. I keep my gun at home," he said Wednesday on Argentine TV.

Lefosse used to hide his identity behind a mask that was a mix of dark and baby blue and coordinated nicely colour-wise with a Superman style suit he wore, with a symbol on his chest to boot.

-AFP/fl

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Where will you go when BJP comes to power? Nitin Gadkari threatens I-T officials

NEW DELHI: Former BJP president Nitin Gadkari on Thursday dared I-T officials and said 'Where will you go once the BJP comes to power?'

Addressing his supporters in Nagpur, the former BJP chief said that income tax department should realise that the Congress is on its way out.

"There will be no Chidambaram or Sonia to save them, once the Congress is out of power," he said.

Gadkari said that he had been informed by officials sympathetic to the party how I-T and CBI officials were working overtime to indict him.

In a dramatic turn of events, Gadkari was forced to resign as BJP chief after reports of I-T inquiries against some companies allegedly connected to Purti Group.

Gadkari opted out against second term as party president, paving the way for Rajnath Singh to take over as BJP chief on Wednesday.

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Netanyahu turns focus to Iran after narrow election win

JERUSALEM (Reuters) - Hawkish Prime Minister Benjamin Netanyahu has claimed victory in Israel's parliamentary election, shrugging off surprise losses to centre-left challengers and vowing to stop Iran from acquiring nuclear weapons.

However, Tuesday's vote, which also disappointed religiously inspired hardliners, may deflect the premier's focus on confronting Tehran and resisting Palestinian demands as Israel's secular middle-class demanded new attention on domestic issues.

That in turn might draw Netanyahu toward a less fractious relationship with his key ally, U.S. President Barack Obama, who himself embarked on a new term this week with great ambitions.

Interim vote count results on Wednesday showed the Israeli leader's right-wing Likud and the ultra-nationalist Yisrael Beitenu would remain the biggest bloc in the 120-member assembly, but with only 31 seats, 11 fewer than the 42 the two parties held in the last parliament.

That put Netanyahu on course for a third term in office, perhaps leading a hardline coalition that would promote Jewish settlement on occupied land.

But his weakened showing in the ballot, which he had called nine months early in the hope of a strong mandate for his struggle with Iran, could complicate his efforts to forge an alliance with a stable and substantial majority in parliament.

"I am proud to be your prime minister, and I thank you for giving me the opportunity, for the third time, to lead the state of Israel," the 63-year-old leader told a cheering crowd in the early hours of Wednesday at his campaign headquarters.

Netanyahu said he planned to form as broad a governing coalition as possible, suggesting he would seek partners beyond his traditional ultra-nationalist and religious allies. His first call may be to Yair Lapid, a former television anchorman whose centrist, secular party came from nowhere to second place.

"The first challenge was and remains preventing Iran from obtaining nuclear weapons," Netanyahu said.

Iran denies it is planning to build an atomic bomb, and says Israel, widely believed to have the only nuclear arsenal in the Middle East, is the biggest threat to the region.

Netanyahu views Tehran's nuclear program as a threat to Israel's existence and has stoked international concern by hinting at possible Israeli military action to thwart it.

He has shunted Palestinian peacemaking well down the agenda despite Western concern to keep the quest for a solution alive.

Wednesday's count forecast an even split between right-wing parties and the centre-left, with each bloc taking 60 of parliament's 120 seats.

Lapid's Yesh Atid (There is a Future) party should have 19 seats, the interim count showed - a stunning result for a newcomer to politics in a field of 32 contending parties.

Lapid won support amongst middle-class, secular voters by promising to resolve a growing housing shortage, abolish military draft exemptions for Jewish seminary students and seek an overhaul of the failing education system.

He urged Netanyahu "to build as broad a government as possible so that we can bring about real change in Israel".

The once dominant Labour party led by Shelly Yachimovich was projected to take third place with 15 seats. She described Likud victory claims as "ridiculous" before final results were in.

"There is a very good chance, a very good chance, that tomorrow morning Benjamin Netanyahu will not be able to form a government," she declared at her party headquarters.

Reconciling views to build a cabinet will certainly be hard.

"YESH ATID SWEEP"

Some in Netanyahu's party acknowledged that the election had gone somewhat awry. "We anticipated we would lose some votes to Lapid, but not to this extent. This was a Yesh Atid sweep," Likud-Yisrael Beitenu campaign adviser Ronen Moshe told Reuters.

Lapid said before the election he would consider joining a Netanyahu-led government. If that happens, the ultra-Orthodox religious parties which often hold the balance of power in parliament might lose some of their leverage.

After a lackluster campaign, Israelis voted in droves on a sunny winter day, registering a turnout of 66.6 percent, the highest since 2003. That buoyed centre-left parties which had pinned their hopes on energizing an army of undecided voters against Netanyahu and his nationalist-religious allies.

"A big majority of middle class Israelis have voted strongly against the priorities of the last government," said Dan Avnon, a political science professor at Hebrew University.

"These are the people who pay the taxes and serve in the army," he said. "I don't think they can be ignored."

Opinion polls before the election had predicted an easy win for Netanyahu, although the last ones suggested he would lose some votes to the Jewish Home party, which opposes a Palestinian state and advocates annexing chunks of the occupied West Bank.

Wednesday's interim count gave 11 seats to Jewish Home.

The biggest casualty was the centrist Kadima party, which teetered between a minimum parliamentary showing of 2 seats and political extinction, depending on the final vote tally due later on Wednesday.

Kadima had gained the highest number in the previous election in 2009, although its then leader Tzipi Livni failed to put together a governing coalition.

Official vote results will be announced on January 30. After that, President Shimon Peres is likely to ask Netanyahu, as leader of the biggest bloc in parliament, to try to form a government.

WESTERN ANXIETY

Whatever permutation finally emerges, a Netanyahu-led government is likely to resist any push for a peace deal with the Palestinians that would come anywhere near satisfying the moderates who seek a viable independent state alongside Israel.

Naftali Bennet, high-tech millionaire son of American immigrants who leads the hard-right, pro-settler Jewish Home party, was a likely coalition partner despite his election showing, which was less than surging opinion polls had predicted.

Bennet, who advocates annexing West Bank land to Israel, told cheering supporters: "There is only one truth and it is simple. The Land of Israel belongs to the people of Israel."

Britain warned Israel on Tuesday it was losing international support, saying Jewish settlement expansion had almost killed off prospects for a two-state solution.

U.S.-brokered peace talks broke down in 2010 amid mutual acrimony. Since then Israel has accelerated construction in the West Bank and east Jerusalem - land the Palestinians want for their future state - much to the anger of Western partners.

Netanyahu's relations with Obama have been notably tense and Martin Indyk, former U.S. ambassador to Israel, told the BBC the election was unlikely to change that.

"President Obama doesn't have high expectations that there's going to be a government in Israel committed to making peace and is capable of the kind of very difficult and painful concessions that would be needed to achieve a two-state solution," he said.

But Aaron David Miller, once a senior U.S. adviser on the peace process, said a weakening of the right might improve ties: "The fact is, if (Netanyahu) goes with Lapid and he reaches out to the centre, you're going to end up with an American-Israeli rapprochement to a certain degree," Miller told CNN.

Tuesday's vote was the first in Israel since Arab uprisings swept the region two years ago, reshaping the Middle East.

Netanyahu has said the turbulence, which has brought Islamist governments to power in several countries long ruled by secularist autocrats, including neighboring Egypt, shows the importance of strengthening national security.

Foreign policy issues barely registered during the election campaign, with a poll in Haaretz newspaper on Friday saying 47 percent of Israelis thought social and economic issues were the most pressing concern, against just 10 percent who cited Iran.

A major problem for the next government, which is unlikely to take power before mid-March, is the stuttering economy.

Data last week showed the budget deficit rose to 4.2 percent of gross domestic product in 2012, double the original estimate, meaning spending cuts and tax hikes look certain.

(Reporting by Jerusalem bureau; Editing by Alastair Macdonald and David Brunnstrom)

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Australian man cleared of molestation charge after public apology

SINGAPORE: An Australian man has been cleared of a charge of molesting a purchasing officer.

This came after Mr Kevin Francis D'arcy, 59, made a public apology in a local English daily on January 19 as requested by the woman.

The incident happened on August 31, 2012 in Boat Quay.

Mr D'arcy apparently squeezed the buttock of the 32-year-old woman, who was clubbing with her sister and friend.

-CNA/ac

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BJP thanks Nitin Gadkari for expanding party's support base

NEW DELHI: The BJP parliamentary board thanked the party's outgoing president Nitin Gandkari on Wednesday, saying he immensely helped in expanding the party's support base.

The parliamentary board met at the Bharatiya Janata Party headquarters in the capital on Wednesday.

"The parliamentary board places on record its deep sense of appreciation of leadership provided by Nitin Gadkari as the president of BJP," senior party leader Ananth Kumar read out a statement after the meeting.

"Gadkari's dynamism, good work, and open mindedness helped immensely in expanding the support base of the party. He displayed qualities of an ideal 'karyakarta' (party worker) and was always available to party workers," he said.

The BJP parliamentary board meeting was attended by senior party leaders LK Advani, Sushma Swaraj, Arun Jaitley and Venkaiah Naidu among others.

The board also endorsed the name of Rajnath Singh as new party president.

Gadkari made an announcement on Tuesday evening saying he would not seek a second term as he wanted his name cleared of the corruption charges.

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Flu season fuels debate over paid sick time laws

NEW YORK (AP) — Sniffling, groggy and afraid she had caught the flu, Diana Zavala dragged herself in to work anyway for a day she felt she couldn't afford to miss.

A school speech therapist who works as an independent contractor, she doesn't have paid sick days. So the mother of two reported to work and hoped for the best — and was aching, shivering and coughing by the end of the day. She stayed home the next day, then loaded up on medicine and returned to work.

"It's a balancing act" between physical health and financial well-being, she said.

An unusually early and vigorous flu season is drawing attention to a cause that has scored victories but also hit roadblocks in recent years: mandatory paid sick leave for a third of civilian workers — more than 40 million people — who don't have it.

Supporters and opponents are particularly watching New York City, where lawmakers are weighing a sick leave proposal amid a competitive mayoral race.

Pointing to a flu outbreak that the governor has called a public health emergency, dozens of doctors, nurses, lawmakers and activists — some in surgical masks — rallied Friday on the City Hall steps to call for passage of the measure, which has awaited a City Council vote for nearly three years. Two likely mayoral contenders have also pressed the point.

The flu spike is making people more aware of the argument for sick pay, said Ellen Bravo, executive director of Family Values at Work, which promotes paid sick time initiatives around the country. "There's people who say, 'OK, I get it — you don't want your server coughing on your food,'" she said.

Advocates have cast paid sick time as both a workforce issue akin to parental leave and "living wage" laws, and a public health priority.

But to some business owners, paid sick leave is an impractical and unfair burden for small operations. Critics also say the timing is bad, given the choppy economy and the hardships inflicted by Superstorm Sandy.

Michael Sinensky, an owner of seven bars and restaurants around the city, was against the sick time proposal before Sandy. And after the storm shut down four of his restaurants for days or weeks, costing hundreds of thousands of dollars that his insurers have yet to pay, "we're in survival mode."

"We're at the point, right now, where we cannot afford additional social initiatives," said Sinensky, whose roughly 500 employees switch shifts if they can't work, an arrangement that some restaurateurs say benefits workers because paid sick time wouldn't include tips.

Employees without sick days are more likely to go to work with a contagious illness, send an ill child to school or day care and use hospital emergency rooms for care, according to a 2010 survey by the University of Chicago's National Opinion Research Center. A 2011 study in the American Journal of Public Health estimated that a lack of sick time helped spread 5 million cases of flu-like illness during the 2009 swine flu outbreak.

To be sure, many employees entitled to sick time go to work ill anyway, out of dedication or at least a desire to project it. But the work-through-it ethic is shifting somewhat amid growing awareness about spreading sickness.

"Right now, where companies' incentives lie is butting right up against this concern over people coming into the workplace, infecting others and bringing productivity of a whole company down," said John A. Challenger, CEO of employer consulting firm Challenger, Gray & Christmas.

Paid sick day requirements are often popular in polls, but only four places have them: San Francisco, Seattle, Washington, D.C., and the state of Connecticut. The specific provisions vary.

Milwaukee voters approved a sick time requirement in 2008, but the state Legislature passed a law blocking it. Philadelphia's mayor vetoed a sick leave measure in 2011; lawmakers have since instituted a sick time requirement for businesses with city contracts. Voters rejected a paid sick day measure in Denver in 2011.

In New York, City Councilwoman Gale Brewer's proposal would require up to five paid sick days a year at businesses with at least five employees. It wouldn't include independent contractors, such as Zavala, who supports the idea nonetheless.

The idea boasts such supporters as feminist Gloria Steinem and "Sex and the City" actress Cynthia Nixon, as well as a majority of City Council members and a coalition of unions, women's groups and public health advocates. But it also faces influential opponents, including business groups, Mayor Michael Bloomberg and City Council Speaker Christine Quinn, who has virtually complete control over what matters come to a vote.

Quinn, who is expected to run for mayor, said she considers paid sick leave a worthy goal but doesn't think it would be wise to implement it in a sluggish economy. Two of her likely opponents, Public Advocate Bill de Blasio and Comptroller John Liu, have reiterated calls for paid sick leave in light of the flu season.

While the debate plays out, Emilio Palaguachi is recovering from the flu and looking for a job. The father of four was abruptly fired without explanation earlier this month from his job at a deli after taking a day off to go to a doctor, he said. His former employer couldn't be reached by telephone.

"I needed work," Palaguachi said after Friday's City Hall rally, but "I needed to see the doctor because I'm sick."

___

Associated Press writer Susan Haigh in Hartford, Conn., contributed to this report.

___

Follow Jennifer Peltz at http://twitter.com/jennpeltz

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Al Qaeda Commander Killed for the 3rd Time

The second in command of al Qaeda's Yemen affiliate was reportedly killed in an airstrike in Yemen in December, according to a news report by Arabic television network Al Arabiya, the third time the former Guantanamo detainee has been reported dead since 2010.

According to the report, Said al-Shihri died last month after sustaining severe injuries from a joint U.S.-Yemeni airstrike that targeted a convoy in which he was riding. The al Arabiya account, based on information from "family sources," said that the airstrike left al-Shihri in a coma. He allegedly died soon after and was buried in Yemen.

On Tuesday afternoon, hours after the initial report, a Yemeni government official denied having any information regarding the death of al-Shihri, according to Arabic news site al-Bawaba.

No photos of a body have yet surfaced and no mention of his death has appeared on jihadi forums.
This is the third time al-Shihri, the second in command of al Qaeda in the Arabian Peninsula (AQAP), has been reported killed since 2009. In 2010, the Yemeni government claimed it had captured him. In September 2012, Yemeni news sites reported he was killed in an American drone strike.

PHOTOS: Terrorists Who Came Back from the Grave

READ: Gitmo Detainee turned terror commander killed: Reports

Al-Shihri, a "veteran jihadist," traveled to Afghanistan shortly after the Sept. 11, 2001 terror attacks to fight coalition troops, only to be captured weeks later, according to West Point's Combating Terrorism Center. He was sent to the U.S. prison in Guantanamo Bay, Cuba, where he stayed for six years before being released to Saudi Arabia. There, he entered a so-called "jihadi rehab" program that attempted to turn terrorists into art students by getting them to get "negative energy out on paper," as the program's director told ABC News in 2009.

READ: Trading Bombs for Crayons: Terrorists Get 'Art Therapy'

But just months after he supposedly entered the fingerpainting camp, al-Shihri reappeared in Yemen where he was suspected to have been behind a deadly bombing at the U.S. embassy there.

At the time, critics of the "jihadi rehab" program used al-Shihri as evidence that extremists would just go through the motions in order to be freed.

Click Here for the Blotter Homepage.

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Israel goes to polls, set to re-elect Netanyahu

JERUSALEM (Reuters) - Israelis voted on Tuesday in an election widely expected to win Prime Minister Benjamin Netanyahu a third term in office, pushing the Jewish State further to the right, away from peace with Palestinians and towards a showdown with Iran.

Netanyahu has vowed to pursue the settlement of lands seized during the 1967 Middle East war if he stays in power, a policy that would put him at odds with his international partners and worsen already tense ties with U.S. President Barack Obama.

Polls predict Netanyahu's Likud party, which has forged an electoral pact with the ultra-nationalist Yisrael Beitenu group, will take the most seats in the parliamentary election, albeit considerably fewer than they had originally hoped.

"We want Israel to succeed, we vote Likud-Beitenu ... The bigger it is, the more Israel will succeed," Netanyahu said after casting his ballot alongside his wife and two sons.

Some 5.66 million Israelis are eligible to vote, with polling stations staying open until 10 p.m. Full results are due by Wednesday morning, opening the way for coalition talks that could take several weeks to wrap up.

No Israeli party has ever secured an absolute majority, meaning that Netanyahu, who says that dealing with Iran's nuclear ambitions is his top priority, will have to bring various allies onboard to control the 120-seat Knesset.

The former commando has traditionally looked to religious, conservative parties for backing and is widely expected to reach out to the surprise star of the campaign, self-made millionaire Naftali Bennett who heads the far-right Jewish Home party.

Bennett's youthful dynamism has struck a chord amongst Israelis, most of whom no longer believe in the possibility of a Palestinian peace deal, and has eroded Netanyahu's support base.

Surveys suggest he may take up to 14 seats, many at the expense of Likud-Beitenu, which was projected to win 32 in the last round of opinion polls published on Friday -- 10 less than the two parties won in 2009 when they ran separate lists.

Such a result might embarrass Netanyahu, but would still leave him in pole position to form the next government. Acknowledging the threat, Netanyahu's son Yair urged young Israelis not to abandon the old, established Likud.

"Even if there more trendy parties, there is one party that has a proven record," he said on Tuesday after voting.

Portraying himself as a natural partner for the prime minister, Bennett has alarmed those who want to see an independent Palestinian state created alongside Israel, by calling for the annexation of chunks of the occupied West Bank.

"I pray to God to give me the power to unite all of Israel and to restore Israel's Jewish soul," Bennett said on Monday at a final campaign appearance before Jerusalem's Western Wall.

However, some political analysts have speculated that Netanyahu might seek to project a more moderate image for Israel on the world stage and look to share power with centrist parties, such as Yesh Atid (There is a Future) - a newly formed group led by former TV host Yair Lapid.

ARAB UPRISING

Israel's main opposition party, Labour, which is seen capturing up to 17 seats, has already ruled out a repeat of 2009, when it initially entered Netanyahu's cabinet, promising to promote peace negotiations with the Palestinians.

U.S.-brokered talks collapsed just a month after they started in 2010 following a row over settlement building, and have laid in ruins ever since. Netanyahu blamed the Palestinians for the failure and says his door remains open to discussions.

Palestinian President Mahmoud Abbas says he won't return to the table unless there is a halt to settlement construction.

That looks unlikely, with Netanyahu approving some 11,000 settler homes in December alone, causing further strains to his already notoriously difficult relations with U.S. President Barack Obama, who was sworn in for a second term on Monday.

Tuesday's vote is the first in Israel since Arab uprisings swept the region two years ago, reshaping the Middle East.

Netanyahu has said the turbulence - which has brought Islamist governments to power in several countries long ruled by secularist autocrats, including neighboring Egypt - shows the importance of strengthening national security.

If he wins on Tuesday, he will seek to put Iran back to the top of the global agenda. Netanyahu has said he will not let Tehran enrich enough uranium to make a single nuclear bomb - a threshold Israeli experts say could arrive as early as mid-2013.

Iran denies it is planning to build the bomb, and says Israel, widely believed to have the only nuclear arsenal in the Middle East, is the biggest threat to the region.

The issue has barely registered during the election campaign, with a poll in Haaretz newspaper on Friday saying 47 percent of Israelis thought social and economic issues were the most pressing concern, against just 10 percent who cited Iran.

One of the first problems to face the next government, which is unlikely to take power before the middle of next month at the earliest, is the stuttering economy.

Data last week showed the budget deficit rose to 4.2 percent of gross domestic product in 2012, double the original estimate, meaning spending cuts and tax hikes look certain.

(This story has been corrected to add dropped word in paragraph four)

(Additional reporting by Ori Lewis, Editing by Peter Graff)

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Japan to ease US, French beef import restrictions

TOKYO: Japan plans to ease restrictions on American and French beef imports imposed due to concerns over mad cow disease, government officials and local media said Tuesday.

Japan, which was once the largest buyer of US beef, halted imports after a case of mad cow disease was detected in an American herd in 2003. It now imports meat only from cattle aged under 20 months.

Tokyo plans to raise the limit to 30 months starting on February 1 if the health ministry's council gives approval, the health, labour and welfare minister Norihisa Tamura told a news conference.

Japan will also apply the same age limit to beef imported from France, which was previously totally banned, Kyodo News quoted unnamed ministry officials as saying.

As for beef from cattle raised in the Netherlands, currently also subject to a total ban, Japan has been in talks with the Dutch government to set the age restriction at up to 12 months in response to its request, Kyodo said.

Beef meeting these relaxed criteria is expected to start arriving in Japan around late February to early March, it added.

-AFP/fl

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Flu season fuels debate over paid sick time laws

NEW YORK (AP) — Sniffling, groggy and afraid she had caught the flu, Diana Zavala dragged herself in to work anyway for a day she felt she couldn't afford to miss.

A school speech therapist who works as an independent contractor, she doesn't have paid sick days. So the mother of two reported to work and hoped for the best — and was aching, shivering and coughing by the end of the day. She stayed home the next day, then loaded up on medicine and returned to work.

"It's a balancing act" between physical health and financial well-being, she said.

An unusually early and vigorous flu season is drawing attention to a cause that has scored victories but also hit roadblocks in recent years: mandatory paid sick leave for a third of civilian workers — more than 40 million people — who don't have it.

Supporters and opponents are particularly watching New York City, where lawmakers are weighing a sick leave proposal amid a competitive mayoral race.

Pointing to a flu outbreak that the governor has called a public health emergency, dozens of doctors, nurses, lawmakers and activists — some in surgical masks — rallied Friday on the City Hall steps to call for passage of the measure, which has awaited a City Council vote for nearly three years. Two likely mayoral contenders have also pressed the point.

The flu spike is making people more aware of the argument for sick pay, said Ellen Bravo, executive director of Family Values at Work, which promotes paid sick time initiatives around the country. "There's people who say, 'OK, I get it — you don't want your server coughing on your food,'" she said.

Advocates have cast paid sick time as both a workforce issue akin to parental leave and "living wage" laws, and a public health priority.

But to some business owners, paid sick leave is an impractical and unfair burden for small operations. Critics also say the timing is bad, given the choppy economy and the hardships inflicted by Superstorm Sandy.

Michael Sinensky, an owner of seven bars and restaurants around the city, was against the sick time proposal before Sandy. And after the storm shut down four of his restaurants for days or weeks, costing hundreds of thousands of dollars that his insurers have yet to pay, "we're in survival mode."

"We're at the point, right now, where we cannot afford additional social initiatives," said Sinensky, whose roughly 500 employees switch shifts if they can't work, an arrangement that some restaurateurs say benefits workers because paid sick time wouldn't include tips.

Employees without sick days are more likely to go to work with a contagious illness, send an ill child to school or day care and use hospital emergency rooms for care, according to a 2010 survey by the University of Chicago's National Opinion Research Center. A 2011 study in the American Journal of Public Health estimated that a lack of sick time helped spread 5 million cases of flu-like illness during the 2009 swine flu outbreak.

To be sure, many employees entitled to sick time go to work ill anyway, out of dedication or at least a desire to project it. But the work-through-it ethic is shifting somewhat amid growing awareness about spreading sickness.

"Right now, where companies' incentives lie is butting right up against this concern over people coming into the workplace, infecting others and bringing productivity of a whole company down," said John A. Challenger, CEO of employer consulting firm Challenger, Gray & Christmas.

Paid sick day requirements are often popular in polls, but only four places have them: San Francisco, Seattle, Washington, D.C., and the state of Connecticut. The specific provisions vary.

Milwaukee voters approved a sick time requirement in 2008, but the state Legislature passed a law blocking it. Philadelphia's mayor vetoed a sick leave measure in 2011; lawmakers have since instituted a sick time requirement for businesses with city contracts. Voters rejected a paid sick day measure in Denver in 2011.

In New York, City Councilwoman Gale Brewer's proposal would require up to five paid sick days a year at businesses with at least five employees. It wouldn't include independent contractors, such as Zavala, who supports the idea nonetheless.

The idea boasts such supporters as feminist Gloria Steinem and "Sex and the City" actress Cynthia Nixon, as well as a majority of City Council members and a coalition of unions, women's groups and public health advocates. But it also faces influential opponents, including business groups, Mayor Michael Bloomberg and City Council Speaker Christine Quinn, who has virtually complete control over what matters come to a vote.

Quinn, who is expected to run for mayor, said she considers paid sick leave a worthy goal but doesn't think it would be wise to implement it in a sluggish economy. Two of her likely opponents, Public Advocate Bill de Blasio and Comptroller John Liu, have reiterated calls for paid sick leave in light of the flu season.

While the debate plays out, Emilio Palaguachi is recovering from the flu and looking for a job. The father of four was abruptly fired without explanation earlier this month from his job at a deli after taking a day off to go to a doctor, he said. His former employer couldn't be reached by telephone.

"I needed work," Palaguachi said after Friday's City Hall rally, but "I needed to see the doctor because I'm sick."

___

Associated Press writer Susan Haigh in Hartford, Conn., contributed to this report.

___

Follow Jennifer Peltz at http://twitter.com/jennpeltz

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Inauguration: 7.5 Things You Should Have Seen

A presidential inauguration is a big, long event that lasts all day and into the night–and who has time to really watch it? People have jobs, ones that don’t let you off for a federal holiday.

Everyone (or, at least, some) will be talking about it, which means potential embarrassment for anyone who doesn’t know what happened. Thankfully, ABC employs  news professionals stationed in Washington, D.C., to pay attention to these kinds of things and boil off some of the less noteworthy or interesting stuff, presenting you with short videos of everything that really mattered. Or at least the things a lot of people were talking about.

A full day of paying attention to President Obama’s second Inauguration leads one of those professionals to offer these 7 1/2 things:

1. Beyonce Sang the National Anthem

Boy, howdy! Did she ever? Beyonce has essentially become the Obama’s go-to female performer: She recorded a music video for Michelle Obama’s “Let’s Move” initiative in 2011, and she performed at the president’s last inauguration in 2009. Her velvety, soulful “Star Spangled Banner” is getting good reviews.

2. Kelly Clarkson Also Sang

Kelly Clarkson is not as “in” with the First Couple as Beyonce seems to be, but they let her sing “My Country ‘Tis of Thee,” and she did a pretty good job with it. This was kind of weird, though, because at one point she said she loved Ron Paul, although she later said she would vote for Obama.

3.  Obama Talked About Gay Rights

This may not seem shocking since more than half the country, including President Obama, supports gay marriage. But the president made a point of mentioning gay rights during his speech, equating the struggles of the LGBT community with those of  past civil rights movements, and in doing so made history.

He name-checked Stonewall, the New York City bar that was raided by police in 1969 sparking riots to protest the anti-gay crackdown. And he actually used the word “gay”: “Our journey is not complete until our gay brothers and sisters are treated like anyone else under the law – for if we are truly created equal, then surely the love we commit to one another must be equal as well,” Obama said in his address.

Plenty of inaugural addresses have been chock full of rhetoric about freedom and equality, but in the last four years, the political culture surrounding gay rights has changed significantly, as more states legalized same-sex marriage and as broad swaths of the country got more comfortable with homosexuality in general. Obama’s “evolution” on gay marriage, and now his inaugural address, have helped signify that change.

4. Joe Biden Made Jokes and Shook Hands With People

Could we expect anything less?

Here’s how the Vice President toasting Sen. Chuck Schumer instead of President Obama at the big luncheon:  ”I raise my glass to a man who never, never, never operates out of fear, only operates out of confidence, and a guy–I’m toasting you, Chuck.” Watch it:

And here he is, scurrying around and jovially shaking hands with people along the parade route:

5. Richard Blanco Read a Poem That Was Sort of Whitman-esque, But Not Entirely

Cuban-born Richard Blanco became America’s first openly gay, Latino Inauguration poet. He read a nine-stanza poem entitled “One Today,” which set a kind of unifying American tableau scene.

6. Obama and Michelle Walked Around Outside The Limo

President Obama walked part of the parade route, from the Capitol to the White House, with Michelle. They waved to people. It is not entirely abnormal for a president to do this at an inaugural parade. But they walked quite a ways.

7. John Boehner: ‘Godspeed’

The speaker of the House presented American flags to Obama and Biden, telling them: “To you gentlemen, I say congratulations and Godspeed.”

7 1/2. Sasha and Malia Were There. 

Obama’s daughters, Sasha and Malia, were there. They didn’t really do much, but they did wear coats of different shades of purple that got a lot of  attention on Twitter.

Reports of the daughters looking at smartphones and applying lip gloss highlighted their day. As did this .gif of Sasha yawning.

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Algeria hostage toll rises with report of Japanese deaths

ALGIERS, Algeria (Reuters) - The hostage death toll from a four-day siege at an Algerian gas plant deep in the Sahara has risen to almost 60, with at least nine Japanese nationals also reported killed in an attack claimed by a veteran Islamist fighter on behalf of al Qaeda.

Algerian Prime Minister Abdelmalek Sellal is expected to give details at a Monday news conference about one of the worst international hostage crises in decades, which left American, British, French, Japanese, Norwegian and Romanian workers dead or missing.

A security source said on Sunday Algerian troops had found the bodies of 25 hostages, raising the total number of hostages killed to 48 and the total number of deaths to at least 80. He said six militants were captured alive and troops were still searching for others.

That number climbed further on Monday when a Japanese government source said the Algerian government had informed Tokyo that nine Japanese had been killed, the biggest toll so far among foreigners at the plant.

One-eyed veteran Islamist fighter Mokhtar Belmokhtar claimed responsibility for the attack on behalf of al Qaeda.

"We in al Qaeda announce this blessed operation," he said in a video, according to Sahara Media, a regional website. He said about 40 attackers participated in the raid, roughly matching the government's figures for fighters killed and captured.

The fighters swooped out of the desert and seized the base on Wednesday, capturing a plant that produces 10 percent of Algeria's natural gas exports, and residential barracks nearby.

They demanded an end to French air strikes against Islamist fighters in neighboring Mali that had begun five days earlier. However, U.S. and European officials doubt such a complex raid could have been organized quickly enough to have been conceived as a direct response to the French military intervention.

The siege turned bloody on Thursday when the Algerian army opened fire saying fighters were trying to escape with their prisoners. Survivors said Algerian forces blasted several trucks in a convoy carrying both hostages and their captors.

Nearly 700 Algerian workers and more than 100 foreigners escaped, mainly on Thursday when the fighters were driven from the residential barracks. Some captors remained holed up in the industrial complex until Saturday when they were overrun.

The bloodshed has strained Algeria's relations with its Western allies, some of whom have complained about being left in the dark while the decision to storm the compound was being taken. Nevertheless, Britain and France both defended the Algerian military action.

"It's easy to say that this or that should have been done. The Algerian authorities took a decision and the toll is very high but I am a bit bothered ... when the impression is given that the Algerians are open to question," said French Foreign Minister Laurent Fabius. "They had to deal with terrorists."

British Prime Minister David Cameron said in a televised statement: "Of course people will ask questions about the Algerian response to these events, but I would just say that the responsibility for these deaths lies squarely with the terrorists who launched this vicious and cowardly attack.

"We should recognize all that the Algerians have done to work with us and to help and coordinate with us. I'd like to thank them for that. We should also recognize that the Algerians too have seen lives lost among their soldiers."

Algeria had given a preliminary death toll of 55 - 23 hostages and 32 militants - on Saturday and said it would rise as more bodies were found.

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The security source said that toll did not include the bodies of 25 hostages found on Sunday. The search was not over, and more could yet be found, he said.

Before Monday, the Japanese government and engineering firm JGC Corp, which had several dozen employees working at the plant, had said only that 10 Japanese were unaccounted for.

JGC is due to give an update regarding its staff in Algeria later on Monday.

Among other foreigners confirmed dead by their home countries were three Britons, one American and two Romanians. The missing include five Norwegians, three Britons and a British resident. The security source said at least one Frenchman was also among the dead.

Algeria is determined to press on with its energy industry. Oil Minister Youcef Yousfi visited the site and said physical damage was minor, state news service APS reported. The plant would start up again in two days, he said.

The Islamists' assault has tested Algeria's relations with the outside world and exposed the vulnerability of multinational oil operations in the Sahara.

Algeria, scarred by the civil war with Islamist insurgents in the 1990s which claimed 200,000 lives, insisted from the start of the crisis there would be no negotiation in the face of terrorism.

France especially needs close cooperation from Algeria to crush Islamist rebels in northern Mali.

(Additional reporting by Anton Slodkowski in Tokyo, Balazs Koranyi in Oslo, Estelle Shirbon and David Alexander in London, Brian Love in Paris and Daniel Flynn in Dakar; Writing by Peter Graff; Editing by Paul Tait and Nick Macfie)

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Japan, US team probes Dreamliner battery maker

TOKYO: Japanese and American safety inspectors were on Monday probing the company that makes batteries for Boeing's Dreamliner after the aircraft's worldwide fleet was grounded over safety fears.

Aviation regulators were focusing on the lithium-ion batteries as the cause of a glitch that forced an All Nippon Airways (ANA) flight into an emergency landing last week.

Despite the investigation shares in GS Yuasa, which manufactures the batteries for the Dreamliner's advanced electronics systems, were up 0.95 percent to 318 yen in afternoon Tokyo trade.

The Japanese firm is just one of many contractors in a complex global chain that led to three years of delays before Boeing delivered its first 787 to ANA in 2011.

"Engineers from the FAA (US Federal Aviation Administration), Boeing and our aviation bureau started a probe this morning that is mainly focusing on GS Yuasa's production line," said Yasuo Ishii, a transport ministry safety official.

"They are checking on whether there have been any issues in the production process. We still don't know what caused the battery problem and so we are looking into all possibilities."

Ishii said the inspection does not mean authorities think GS Yuasa, headquartered in the western city of Kyoto, was to blame for the problems.

Investigators on Friday released a picture showing the blackened remains of the battery in the ANA plane. They are also inspecting the aircraft's black box which contains data from the flight that may help to assess how the battery was affected.

Boeing's cutting-edge new planes suffered a series of glitches earlier this month, prompting a global alert from the FAA that led to the worldwide grounding of all 50 operational 787s.

The risk of fire from overheating power packs emerged as a major concern after pilots were forced to land a domestic ANA flight on January 16 due to smoke apparently linked to the lithium-ion battery.

US investigators probing a fire on a Japan Airlines 787 after it landed in Boston on January 7 ruled out an overcharged battery as the cause, although the power packs were undergoing further tests.

On Monday, ANA said the Dreamliner's grounding forced it to cancel 335 flights up to next Sunday, affecting nearly 48,000 passengers.

Cancellations on domestic routes from January 16 to January 27 amount to 292 flights for 44,074 passengers, while 43 international flights have been cut, affecting 3,778 passengers, the airline said.

Flights affected include those from Tokyo to San Jose, Seattle and Beijing.

ANA also said it would not receive a Dreamliner that was on order due to the grounding, but declined to say if it would cancel any purchases it has made to date.

"We were supposed to receive our 18th plane from Boeing later this month," a company spokesman said.

"But as the suspension continues, it may be difficult for us to receive it as scheduled. So far, we have no plans to review anything related to our 787 contracts," he added.

ANA and its domestic rival JAL are key Dreamliner customers with Japan's two biggest airlines having ordered a combined 111 aircraft so far.

- AFP/al

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IAF chief Browne in Israel to deepen defence ties

JERUSALEM: Amid deepening ties between India and Israel, Chief of Air Staff NAK Browne has held strategic talks with his Israeli counterpart and will meet defence top brass, furthering the ongoing bilateral military cooperation.

"This is a part of routine reciprocal visits between chiefs of various wings of the defence forces of the two countries", a defence source here said.

However, "the visit underlines a very strong strategic relationship between the two countries where cooperation with India would probably rank only second to the United States", the source said.

Browne was India's first defence attache to Israel and is credited with setting up the defence wing at the Indian mission in 1997.

The visit started on Sunday with the presentation of a combined guard of honour at the Kirya (Israel's defence establishment base in Tel Aviv). Browne also met and discussed about ongoing cooperation with his host, Israel Air Force chief Amir Eshel.

The Chief of Air staff, who is also the current chairman of the chiefs of staff committee, is scheduled to call on Israeli defence minister Ehud Barak and Israel defence forces (IDF) chief, Benny Gantz, during his four-day visit.

At present, the two main projects between India and Israel are the upgrade of all its unmanned aerial vehicles (UAVs) with the three services and the medium range-surface to air missile system being co-developed by the DRDO and Israeli firms, officials said.

India has emerged as the largest buyer of Israeli arms and equipments. Israel's total defence exports to India is said to have touched $9 billion since 1997.

Israel has supplied a wide range of defence equipments to India, including the much talked about Phalcon AWACS (Airborne Warning and Control Aircraft) fitted on board Russian Ilyushin 76 four-engine jets.

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Flu season fuels debate over paid sick time laws

NEW YORK (AP) — Sniffling, groggy and afraid she had caught the flu, Diana Zavala dragged herself in to work anyway for a day she felt she couldn't afford to miss.

A school speech therapist who works as an independent contractor, she doesn't have paid sick days. So the mother of two reported to work and hoped for the best — and was aching, shivering and coughing by the end of the day. She stayed home the next day, then loaded up on medicine and returned to work.

"It's a balancing act" between physical health and financial well-being, she said.

An unusually early and vigorous flu season is drawing attention to a cause that has scored victories but also hit roadblocks in recent years: mandatory paid sick leave for a third of civilian workers — more than 40 million people — who don't have it.

Supporters and opponents are particularly watching New York City, where lawmakers are weighing a sick leave proposal amid a competitive mayoral race.

Pointing to a flu outbreak that the governor has called a public health emergency, dozens of doctors, nurses, lawmakers and activists — some in surgical masks — rallied Friday on the City Hall steps to call for passage of the measure, which has awaited a City Council vote for nearly three years. Two likely mayoral contenders have also pressed the point.

The flu spike is making people more aware of the argument for sick pay, said Ellen Bravo, executive director of Family Values at Work, which promotes paid sick time initiatives around the country. "There's people who say, 'OK, I get it — you don't want your server coughing on your food,'" she said.

Advocates have cast paid sick time as both a workforce issue akin to parental leave and "living wage" laws, and a public health priority.

But to some business owners, paid sick leave is an impractical and unfair burden for small operations. Critics also say the timing is bad, given the choppy economy and the hardships inflicted by Superstorm Sandy.

Michael Sinensky, an owner of seven bars and restaurants around the city, was against the sick time proposal before Sandy. And after the storm shut down four of his restaurants for days or weeks, costing hundreds of thousands of dollars that his insurers have yet to pay, "we're in survival mode."

"We're at the point, right now, where we cannot afford additional social initiatives," said Sinensky, whose roughly 500 employees switch shifts if they can't work, an arrangement that some restaurateurs say benefits workers because paid sick time wouldn't include tips.

Employees without sick days are more likely to go to work with a contagious illness, send an ill child to school or day care and use hospital emergency rooms for care, according to a 2010 survey by the University of Chicago's National Opinion Research Center. A 2011 study in the American Journal of Public Health estimated that a lack of sick time helped spread 5 million cases of flu-like illness during the 2009 swine flu outbreak.

To be sure, many employees entitled to sick time go to work ill anyway, out of dedication or at least a desire to project it. But the work-through-it ethic is shifting somewhat amid growing awareness about spreading sickness.

"Right now, where companies' incentives lie is butting right up against this concern over people coming into the workplace, infecting others and bringing productivity of a whole company down," said John A. Challenger, CEO of employer consulting firm Challenger, Gray & Christmas.

Paid sick day requirements are often popular in polls, but only four places have them: San Francisco, Seattle, Washington, D.C., and the state of Connecticut. The specific provisions vary.

Milwaukee voters approved a sick time requirement in 2008, but the state Legislature passed a law blocking it. Philadelphia's mayor vetoed a sick leave measure in 2011; lawmakers have since instituted a sick time requirement for businesses with city contracts. Voters rejected a paid sick day measure in Denver in 2011.

In New York, City Councilwoman Gale Brewer's proposal would require up to five paid sick days a year at businesses with at least five employees. It wouldn't include independent contractors, such as Zavala, who supports the idea nonetheless.

The idea boasts such supporters as feminist Gloria Steinem and "Sex and the City" actress Cynthia Nixon, as well as a majority of City Council members and a coalition of unions, women's groups and public health advocates. But it also faces influential opponents, including business groups, Mayor Michael Bloomberg and City Council Speaker Christine Quinn, who has virtually complete control over what matters come to a vote.

Quinn, who is expected to run for mayor, said she considers paid sick leave a worthy goal but doesn't think it would be wise to implement it in a sluggish economy. Two of her likely opponents, Public Advocate Bill de Blasio and Comptroller John Liu, have reiterated calls for paid sick leave in light of the flu season.

While the debate plays out, Emilio Palaguachi is recovering from the flu and looking for a job. The father of four was abruptly fired without explanation earlier this month from his job at a deli after taking a day off to go to a doctor, he said. His former employer couldn't be reached by telephone.

"I needed work," Palaguachi said after Friday's City Hall rally, but "I needed to see the doctor because I'm sick."

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Associated Press writer Susan Haigh in Hartford, Conn., contributed to this report.

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Follow Jennifer Peltz at http://twitter.com/jennpeltz

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