Father saw 'horrifying' accident injure son during opera rehearsal









A day after he was burned while playing a fire-breathing stilt walker at the Lyric Opera of Chicago, actor Wesley Daniel was doing well and sending out photos of himself at the hospital, according to friends and relatives.

"He’s all bandaged up but he’s got this funny look in his eyes like, ‘Look at the mess I’ve got myself into,' " said David Kersnar, who directed Daniel in Lookingglass and Next Theatre productions last year.

Daniel was performing in a dress rehearsal of the opera "Die Meistersinger von Nurnberg" Monday afternoon when the mishap occurred. Daniel picked up a torch and a little jar of fluid and blew two fire balls, according to his father, Clifton Daniel, who was in the audience.

Then suddenly his son’s mask appeared to be on fire and he started patting his neck and chest before walking across the stage toward stagehands who were carrying fire extinguishers, Daniel's father said.

Clifton Daniel said he ran to his son backstage, where he was being treated with compresses. Paramedics had already been called and his son was upbeat, even giving a thumbs-up, the father said.

“It’s horrifying,” said Clifton Daniel, 55. “You don’t believe it. At first, everything’s fine. You’re proud of him. You’re amazed at what he’s learned to do, and suddenly he’s in trouble.”

The 24-year-old actor was taken in serious-to-critical condition to Northwestern Memorial Hospital suffering burns to his throat and second-degree burns to his face, fire officials said. He was transferred to Loyola University Medical Center, where doctors inserted a breathing tube, officials said.

Clifton Daniel said there was no damage to his son's lungs or airway and the tube was removed Monday night. "Doctors likened them to a severe sunburn and he will heal,” his father said of the burns. “He shouldn’t have any scarring.”

The hospital told him his son should be released Thursday.

Clifton Daniel said his son graduated from Roosevelt University and has been acting for about three years. He was hired as a back-up for the opera in case someone called in sick or didn’t show up. Wesley Daniel stepped in when an actor was involved in a mishap last week, his father said.

Drew Landmesser, the Lyric’s deputy general director who focuses on backstage activities, said the company is still trying to determine the accident’s cause.

“We don’t exactly know the cause of the accident, just that it was a terrible accident and he seems to be doing well,” Landmesser said.

He stressed that Daniel was experienced with such a fire-spitting stunt, which he characterized as routine in the entertainment world.

“You’ve seen this a thousand times: at carnivals, at Renaissance fairs, at kids parties,” Landmesser said. “It’s a common routine for a performer like this.”

That said, Daniel was the replacement  for a previous performer who was removed after a mishap involving the same stunt. “He had a handlebar mustache, and handlebar mustaches and fire-spitting don’t go well together,” Landmesser said, noting that the mustache “got singed, but there was no injury.”

Landmesser said Daniel’s mask never caught fire, nor did his costume.

“The fuel he was spitting was the only thing that was on fire,” he said, adding that the stunt has been removed from the production mostly so audience members won’t become distracted during one of the opera’s climatic scenes. “I think that frankly the press made something hysterical that was a rather calm event, but why upset people, let anyone misunderstand what happened or how safe it is?”

Tribune photographer Jason Wambsgans, who was at the rehearsal, said it resumed after a 30-minute break but was finally cut short, ending about 6 p.m.

The Occupational Safety and Health Administration opened up an investigation into the incident after hearing about Wesley’s accident through the media, said agency spokesman Scott Allen. A compliance officer went to the Lyric Opera House this morning and talked to witnesses and employees to find out what may have caused the accident and if the opera house violated any OSHA regulations, he added.

Kersnar, who worked with Daniel at Roosevelt University, described the young actor as an experienced physical performer with circus training.

“It was the first time he was on the Lyric stage, but this is what he does,” said Kersnar, a Roosevelt adjunct professor. “He’s very funny, very strong, very skilled and smart. He doesn’t do stupid stuff. I was very surprised to hear this went wrong.”

Kersnar said Daniel performed various stunts for him, such as dressing as an ingenue and lifting the title character of “Pulcinella,” at the Lookingglass performance with the Chicago Symphony Orchestra. “This is the actor life. They do a lot of different things. He’s a jack of all trades.”

Clifton Daniel said he is the grandson of former President Harry S. Truman and Wesley Daniel is the president's great-grandson.


jdelgado@tribune.com


lford@tribune.com








ehirst@tribune.com



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Iran's Ahmadinejad kissed and scolded in Egypt


CAIRO (Reuters) - Mahmoud Ahmadinejad was both kissed and scolded on Tuesday when he began the first visit to Egypt by an Iranian president since Tehran's 1979 Islamic revolution.


The trip was meant to underline a thaw in relations since Egyptians elected an Islamist head of state, President Mohamed Mursi, last June. But it also highlighted deep theological and geopolitical differences.


Mursi, a member of the Sunni Muslim Brotherhood, kissed Ahmadinejad after he landed at Cairo airport and gave him a red carpet reception with military honors. Ahmadinejad beamed as he shook hands with waiting dignitaries.


But the Shi'ite Iranian leader received a stiff rebuke when he met Egypt's leading Sunni Muslim scholar later at Cairo's historic al-Azhar mosque and university.


Sheikh Ahmed al-Tayeb, head of the 1,000-year-old seat of religious learning, urged Iran to refrain from interfering in Gulf Arab states, to recognize Bahrain as a "sisterly Arab nation" and rejected the extension of Shi'ite Muslim influence in Sunni countries, a statement from al-Azhar said.


Visiting Cairo to attend an Islamic summit that begins on Wednesday, Ahmadinejad told a news conference he hoped his trip would be "a new starting point in relations between us".


However, a senior cleric from the Egyptian seminary, Hassan al-Shafai, who appeared alongside him, said the meeting had degenerated into an exchange of theological differences.


"There ensued some misunderstandings on certain issues that could have an effect on the cultural, political and social climate of both countries," Shafai said.


"The issues were such that the grand sheikh saw that the meeting ... did not serve the desired purpose."


The visit would have been unthinkable during the rule of Hosni Mubarak, the military-backed autocrat who preserved Egypt's peace treaty with Israel during his 30 years in power and deepened ties between Cairo and the West.


"The political geography of the region will change if Iran and Egypt take a unified position on the Palestinian question," Ahmadinejad said in an interview with Al Mayadeen, a Beirut-based TV station, on the eve of his trip.


He said he wanted to visit the Gaza Strip, the Palestinian territory which neighbors Egypt to the east and is run by the Islamist movement Hamas. "If they allow it, I would go to Gaza to visit the people," Ahmadinejad said.


Analysts doubt that the historic changes that brought Mursi to power will result in a full restoration of diplomatic ties between states whose relations were broken off after the conclusion of Egypt's peace treaty with Israel in 1979.


OBSTACLES TO FULL TIES


At the airport the two leaders discussed ways of improving relations and resolving the Syrian crisis "without resorting to military intervention", Egyptian state media reported.


Egypt is concerned by Iran's support for Syrian President Bashar al-Assad, who is trying to crush an uprising inspired by the revolt that swept Mubarak from power two years ago. Egypt's overwhelmingly Sunni Muslim population is broadly supportive of the uprising against Assad's Alawite-led administration.


Egyptian Foreign Minister Mohamed Kamel Amr sought to reassure Gulf Arab allies - that are supporting Cairo's battered state finances and are deeply suspicious of Iran - that Egypt would not jeopardize their security.


"The security of the Gulf states is the security of Egypt," he said in remarks reported by the official MENA news agency.


Mursi wants to preserve ties with the United States, the source of $1.3 billion in aid each year to the influential Egyptian military.


"The restoration of full relations with Iran in this period is difficult, despite the warmth in ties ... because of many problems including the Syrian crisis and Cairo's links with the Gulf states, Israel and the United States," said one former Egyptian diplomat.


Iranian Foreign Minister Ali Akbar Salehi said he was optimistic that ties could grow closer.


"We are gradually improving. We have to be a little bit patient. I'm very hopeful about the expansion of the bilateral relationship," he told Reuters. Asked where he saw room for closer ties, he said: "Trade and economics."


Egypt and Iran have taken opposite courses since the late 1970s. Egypt, under Mubarak's predecessor Anwar Sadat, concluded a peace treaty with Israel in 1979 and became a close ally of the United States and Europe. Iran from 1979 turned into a center of opposition to Western influence in the Middle East.


Symbolically, Iran named a street in Tehran after the Islamist who led the 1981 assassination of Sadat.


Egypt gave asylum and a state funeral to Iran's exiled Shah Reza Pahlavi, who was overthrown in the 1979 Iranian revolution. He is buried in a mosque beside Cairo's mediaeval Citadel alongside his ex-brother-in-law, Egypt's last king, Farouk.


(Additional reporting by Ayman Samir, Marwa Awad and Alexander Diadosz; Writing by Paul Taylor and Tom Perry; Editing by Andrew Roche and Robin Pomeroy)



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S&P 500 posts worst day since November; McGraw-Hill shares sink

NEW YORK (Reuters) - Stocks slid on Monday, giving the S&P 500 its worst day since November, as renewed worries about the euro zone crisis caused the market to pull back from recent gains.


Shares of McGraw-Hill shed 13.8 percent to $50.30, their worst daily percentage decline since the October 1987 market crash, after news the U.S. Justice Department plans to sue Standard & Poor's, a unit of McGraw-Hill, over its mortgage bond ratings. It would be the first such federal action against a credit rating agency related to the recent financial crisis.


Chevron and Wal-Mart were among the biggest drags on the Dow after analyst downgrades, and all 10 S&P 500 sectors were lower. The losses follow Friday's market climb that left the S&P 500 at a five-year high and the Dow above 14,000.


"The market is extended and due for a pullback. I think people are looking for an excuse to make sales, and there (is) the concern coming from Europe," said Michael James, senior trader at Wedbush Morgan in Los Angeles.


Spanish and Italian bond yields rose, renewing worries about the euro zone's sovereign debt crisis. Spain's prime minister faced calls to resign over a corruption scandal, while a probe of alleged misconduct involving an Italian bank was expected to widen three weeks before a national election.


Adding to market pressure, data from the U.S. Commerce Department showed overall factory orders for December were below economists' expectations.


The Dow Jones industrial average <.dji> was down 129.71 points, or 0.93 percent, at 13,880.08. The Standard & Poor's 500 Index <.spx> was down 17.46 points, or 1.15 percent, at 1,495.71. The Nasdaq Composite Index <.ixic> was down 47.93 points, or 1.51 percent, at 3,131.17.


With 18.7 billion shares traded, it was the busiest day on record for McGraw-Hill shares. Shares of ratings agency Moody's Corp fell 10.7 percent at $49.45, their worst one-day drop since August 2011.


The benchmark S&P 500 rose on Friday, leaving it roughly 60 points away from its all-time intraday high of 1,576.09, while the Dow's march above 14,000 was the highest for the index since October 2007.


The S&P index remains up about 5 percent for the year, with nearly half of the gains coming after U.S. legislators temporarily sidestepped the "fiscal cliff" of automatic tax increases and spending cuts.


The CBOE Volatility index VIX <.vix>, Wall Street's so-called fear gauge, jumped 13.7 percent.


Chevron dipped 1.1 percent to $115.20 after UBS cut its rating to neutral, while Wal-Mart Stores Inc shed 1.2 percent to $69.63 after JP Morgan lowered its rating on the world's largest retailer and reduced its price target.


Shares of household products company Clorox rose 0.7 percent to $79.72 after quarterly profit beat analysts' estimates as a severe flu season boosted sales of disinfecting wipes.


According to Thomson Reuters data, of the 256 companies in the S&P 500 that have reported earnings through Monday morning, 68.4 percent have reported earnings above analyst expectations, compared with the 62 percent average since 1994 and the 65 percent average over the past four quarters.


S&P 500 fourth-quarter earnings are expected to rise 4.4 percent, according to the data. That estimate is above the 1.9 percent forecast at the start of earnings season, but well below the 9.9 percent forecast on October 1.


In deal news, software maker Oracle Corp agreed to buy network equipment company Acme Packet Inc for $1.7 billion net of cash. Shares of Oracle were down 3 percent at $35.13 while Acme Packet shot up 23.7 percent to $29.59.


Shares of Herbalife Ltd ended up 1.3 percent at $35.54, recovering its losses ahead of the close. The New York Post reported the seller of weight loss products is facing a probe by the Federal Trade Commission.


Volume was roughly 6.3 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.


Decliners outpaced advancers on the NYSE by nearly 4 to 1 and on the Nasdaq also by about 4 to 1.


(Editing by Kenneth Barry and Nick Zieminski)



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Cause of Super Bowl power outage remains unclear


NEW ORLEANS (AP) — Who turned out the lights?


The day after the 34-minute blackout at the Super Bowl, the exact cause — and who's to blame — were unclear, though a couple of potential culprits had been ruled out.


It wasn't Beyonce's electrifying halftime performance, according to Doug Thornton, manager of the state-owned Superdome, since the singer had her own generator. And it apparently wasn't a case of too much demand for power. Meters showed the 76,000-seat stadium was drawing no more electricity than it does during a typical New Orleans Saints game, Thornton said.


The lights-out game Sunday proved an embarrassment for the Big Easy just when it was hoping to show the rest of the world how far it has come since Hurricane Katrina in 2005. But many fans and residents were forgiving, and officials expressed confidence that the episode wouldn't hurt the city's hopes of hosting the championship again.


To New Orleans' great relief, NFL Commissioner Roger Goodell said the city did a "terrific" job hosting its first pro football championship in the post-Katrina era, and added: "I fully expect that we will be back here for Super Bowls."


Fans watching from their living rooms weren't deterred, either. An estimated 108.4 million people saw the Baltimore Ravens beat the San Francisco 49ers 34-31, making it the third most-viewed program in television history. Both the 2010 and 2011 games hit the 111 million mark.


The problem that caused the outage was believed to have happened around the spot where a line that feeds current from the local power company, Entergy New Orleans, connects with the Superdome's electrical system, officials said. But whether the fault lay with the utility or with the Superdome was not clear.


Determining the cause will probably take days, according to Dennis Dawsey, a vice president for distribution and transmission for Entergy. He said the makers of some of the switching gear have been brought in to help figure out what happened.


An attorney for the state board that oversees the Superdome said the blackout did not appear to be related to the replacement in December of electrical equipment connecting the stadium to Entergy. Officials with the utility and the Superdome noted that an NFL game, the Sugar Bowl and another bowl game were played there in recent weeks with no apparent problems.


The blackout came after a nearly flawless week of activity for football fans in New Orleans leading up to the big game.


"I hope that's not what they'll remember about this Super Bowl," French Quarter artist Gloria Wallis said. "I hope that what they'll remember is they had a great time here and that they were welcomed here."


Ravens fan Antonio Prezioso, a Baltimore native who went to the game with his 11-year-old son, said the outage just extended the experience.


"The more time we could spend at the game was a good thing, as long as it ended the way it did," he said, laughing.


The city last hosted the Super Bowl in 2002, and officials were hoping this would serve as the ultimate showcase for the city's recovery. The storm tore holes in the roof of the Superdome and caused water damage to its electrical systems, and more than $330 million was spent repairing and upgrading the stadium.


Sunday's Super Bowl was New Orleans' 10th as host, and officials plan to make a bid for an 11th in 2018.


Mayor Mitch Landrieu told WWL-AM on Monday that the outage won't hurt the city's chances, and he joked that the game got better after the blackout: "People were leaving and the game was getting boring, so we had to do a little something to spice it up."


Jarvis DeBerry, a columnist for nola.com and The Times-Picayune, wrote that the power outage gave the media "an opportunity to laugh at the apparent ineptitude or suggest that the ghosts of Hurricane Katrina were haunting the Superdome."


"That's not the kind of attention the city was looking for, obviously," he wrote, "but it's certainly too soon to say if people will remember the power shortage over San Francisco's furious comeback attempt against Baltimore or if this will harm the city's future opportunities to host the Super Bowl."


Bjorn Hanson, dean of New York University's Center for Hospitality and Sports Management, said the episode shouldn't hurt the city's reputation as a big convention destination. "I think people view it for what it was: an unusual event with a near-record power draw," he said. "It was the equivalent of a circuit breaker flipping."


The American Association of Neurological Surgeons will meet in New Orleans from April 27 to May 1. Patty Anderson, director of meetings for the group, said of the blackout: "I never even gave it a second thought. To me, the city is bigger, stronger and more vibrant than it's ever been."


___


Associated Press writers Beth Harpaz, Brett Martel, Stacey Plaisance and Barry Wilner contributed to this report.


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How close is N. Korea to nuclear arms?


























Kim Jong Un and his military


Kim Jong Un and his military


Kim Jong Un and his military


Kim Jong Un and his military


Kim Jong Un and his military


Kim Jong Un and his military


Kim Jong Un and his military


Kim Jong Un and his military


Kim Jong Un and his military


Kim Jong Un and his military


Kim Jong Un and his military


Kim Jong Un and his military


Kim Jong Un and his military


Kim Jong Un and his military


Kim Jong Un and his military


Kim Jong Un and his military


Kim Jong Un and his military


Kim Jong Un and his military


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STORY HIGHLIGHTS


  • North Korea has warned that it plans to carry out underground nuclear tests

  • Would be the third nuclear test Pyongyang has carried out since 2006

  • Comes after new U.N. sanctions for North Korea's December satellite launch

  • Experts say its unknown how close the North is to being able to launch a nuclear warhead




(CNN) -- North Korea's intention to carry out a new nuclear test, coming on the heels of December's successful satellite launch, suggests that Pyongyang is moving forward toward developing a nuclear warhead and a deliverable missile system, experts say. The question remains: How close are they?


The answer, like the cloistered "hermit kingdom," remains largely a mystery as does much of its nuclear program.


"It's a question over the delivery system and the reliability of those systems," said Daniel Pinkston, senior analyst for the International Crisis Group covering Northeast Asia. "That is essentially unknown, or known by a few people inside North Korea."


South Korean rocket successfully puts satellite in orbit


A 2009 report by International Crisis Group suspects that North Korea "probably has somewhere between six and twelve nuclear weapons, or at least explosive devices," but notes that experts are divided whether any of these to be now useable as warheads -- small enough to be mounted on missiles and durable enough to withstand the hazards of flight.










"It's pretty clear that these are advanced technologies and the systems present a number of engineering challenges -- and to master these technologies requires a number of tests," Pinkston said.


North Korea on Google Maps: Monuments, nuclear complex, gulags


Last month, on the first anniversary of Kim Jong Il's death, North Korea successfully launched a three-stage rocket that put the satellite, Shining Star-3, into orbit. The launch also signaled that the North's long-range missile program now puts the United States within reach.


Last week, the United Nations Security Council unanimously passed a resolution that strengthened sanctions against the north in response to the December rocket launch. Declaring sanctions to be tantamount to "a declaration of war," North Korea is threatening further missile and nuclear tests which it said are a new phase of confrontation with the United States.


For the U.N. and North Korea: Game on


A new underground nuclear test would be the third, following tests in 2009 and 2006. While seismographs will be able to confirm if North Korea has an underground test, the size of the nuclear blast will be difficult to determine, Pinkston said.


"From what I understand it is virtually impossible to mask a nuclear event in terms of concealing it due to seismographs," Pinkston said. "But as far as the accuracy of the assessment of the yield, that's where the difficulty lies."


Koreas in 2013: Watch the generational politics


Estimates of the size, or "yield," of the 2009 nuclear test range from 2.5 kilotons to 6 kilotons, Pinkston said. By comparison, the atomic bomb dropped on Hiroshima had a yield of 16 kilotons.


While the specter of a North Korea able to send nuclear-tipped missiles is worrisome, equally troublesome to the international community is Pyongyang's atomic technology fuelling the black market for weapons.


"If its clandestine uranium-enrichment program has made strides, Pyongyang could demonstrate that it will gain access to a far larger pool of fissile material than simply its limited supply of weapons-grade plutonium," wrote Patrick M. Cronin, an Asian expert at the Center for New American Security, in a CNN op-ed. "A larger pool of fissile material is a dual threat: As a vital part of an expanded nuclear weapon program and as a commodity to be sold on the black market."


Timeline: North Korea's rocket-fueled obsession







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Super Bowl ratings down from a year ago









NEW ORLEANS—





Sunday's close Super Bowl contest between the Baltimore Ravens and the San Francisco 49ers failed to beat last year's game in total viewers, CBS Corp said on Monday.


An average of 108.41 million viewers tuned in, compared with 111.3 million a year ago when the New York Giants defeated the New England Patriots on NBC. CBS said it was the third-most-watched program in television history, behind last year's Super Bowl and 2011's match-up between thePittsburgh Steelers and the Green Bay Packers, which garnered 111 million viewers.








CBS did not immediately respond to a request for comment on whether a 35-minute partial electrical blackout in the third quarter of the game affected ratings. Advertisers paid $4 million on average for a 30-second spot during the game.


Late Sunday, CBS said in a statement that "all commercial commitments during the broadcast are being honored."


 Commissioner Roger Goodell told reporters on Monday an investigation was under way to determine the cause of the disruption. He said there was no indication that Beyonce's halftime show had anything to do with the outage.


CBS said earlier on Monday that the telecast earned an average overnight household rating of 48.1 in Nielsen's metered markets, up 1 percent compared with last year's Super Bowl. CBS said the rating excludes the blackout, which occurred just after the start of the second half, between 8:45 p.m. and 9:15 p.m. Nielsen's "metered markets" represent the top 56 U.S. TV markets.


The highest-rated period during Sunday's Super Bowl occurred from 10:30 p.m. to 10:47 p.m., when the game came down to the wire and the Ravens were able to hold off a furious second-half comeback by the 49ers to win 34-31. CBS said that over those 17 minutes, an average of 113.92 million viewers were tuned in.


The Super Bowl, which determines the NFL champion for the 2012 season, is broadcast live in more than 180 countries and in more than 30 different languages. The commercials during the game regularly net a record amount of ad revenue for the network that broadcasts the game in a given year.


Analysts said stand-out commercials included Chrysler's Jeep ad featuring a patriotic salute to U.S. troops and narration by Oprah Winfrey, an Oreo ad asking viewers to vote cookie or creme, and a scantily clad male Calvin Klein model.


Bluefin labs, a firm that tracks social media activity, said viewers produced 30.6 million social media comments, up from 12.5 million last year. The most talked about ad on social media was the Dodge Ram Trucks "Farmer" commercial, followed by Taco Bell's "Viva Young" spot featuring senior citizens behaving badly, Bluefin said.


The Super Bowl also gives the network that airs it an unprecedented promotional platform for its other programming, with the time slot immediately after the game among the most coveted in television. This year CBS chose to showcase its new crime drama "Elementary," a post-modern take on "Sherlock Holmes," in that time slot.


Just under 21 million viewers stuck around after the game to watch "Elementary," making it the lowest-rated post Super Bowl show in 10 years. Part of the blame for the weak rating can be cast on the game's 35-minutes blackout, which pushed "Elementary's" start time to after 11 p.m. on the East Coast.


Last year, NBC's "The Voice" scored 37.6 million viewers in the post-Super Bowl slot. ABC's airing of "Alias" in 2003 garnered only 17.3 million viewers.


"Elementary" averages around 10 million viewers during its normal airings.





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Syrian opposition chief says offers Assad peaceful exit


BEIRUT (Reuters) - Syrian opposition leader Moaz Alkhatib urged Syrian President Bashar al-Assad's government on Monday to start talks for its departure from power and save the country from greater ruin after almost two years of bloodshed.


Seeking to step up pressure on Assad to respond to his offer of talks - which dismayed some in his own opposition coalition, Alkhatib said he would be ready to meet the president's deputy.


"I ask the regime to send Farouq al-Shara - if it accepts the idea - and we can sit with him," he said, referring to Syria's vice president who has implicitly distanced himself from Assad's crackdown on mass unrest that became an armed revolt.


Speaking after meeting senior Russian, U.S. and Iranian officials, Alkhatib said none of them had an answer to the 22-month-old crisis and Syrians must solve it themselves.


"The issue is now in the state's court...to accept negotiations for departure, with fewer losses," the Syrian National Coalition leader told Al Arabiya television.


The moderate Islamist preacher announced last week he was prepared to talk to Assad's representatives. Although he set several conditions, the move broke a taboo on opposition contacts with Damascus and angered many in its ranks who insist on Assad's departure as a precondition for negotiation.


Alkhatib said it was not "treachery" to seek dialogue to end a conflict in which more than 60,000 people have been killed, 700,000 have been driven from their country and millions more are homeless and hungry.


"The regime must take a clear stand (on dialogue) and we say we will extend our hand for the interest of people and to help the regime leave peacefully," he said in separate comments to Al Jazeera television.


Assad announced last month what he said were plans for reconciliation talks to end the violence but - in a speech described by U.N. Syria envoy Lakhdar Brahimi as narrow and uncompromising - he said there would be no dialogue with people he called traitors or "puppets made by the West".


Syria's defense minister said the army had proved it would not be defeated in its confrontation with rebels but declined to say whether it would respond to an Israeli air strike last week.


Security sources said the Israelis bombed a convoy of arms destined for Assad's ally Hezbollah, a sworn enemy of Israel, in neighboring Lebanon. Syria said the attack struck vehicles and buildings at a military research center near Lebanon's border.


Syria's uprising erupted in March 2011 with largely peaceful protests, escalating into a civil war pitting mainly Sunni Muslim rebels against Assad, who is from Syria's Alawite minority. His family has ruled Syria for 42 years.


ANGER AT IRAN


The violence has divided major powers, with Russia and China blocking U.N. Security Council draft resolutions backed by the United States, European Union and Sunni Muslim Gulf Arab states that could have led to U.N. sanctions isolating Assad. Shi'ite Iran has remained his strongest regional supporter.


Alkhatib met Iranian Foreign Minister Ali Akbar Salehi, Russian Foreign Minister Sergei Lavrov and U.S. Vice President Joe Biden at a security conference in Germany at the weekend.


"Iran's stance is unacceptable and I mentioned to the foreign minister that we are very angry with Iran's support for the regime," Alkhatib said.


He said he asked Salehi to pass on his offer of negotiations - based on the acceptance of the Assad government's departure - to Damascus. The two men also discussed the need to prevent Syria's crisis spreading into a regional conflict between Sunni and Shi'ite Muslims, he said.


"We will find a solution, there are many keys. If the regime wants to solve (the crisis), it can take part in it. If it wants to get out and get the people out of this crisis, we will all work together for the interest of the people and the departure of the regime."


One proposal under discussion was the formation of a transitional government, Alkhatib said, without specifying how he thought that could come about. World powers agreed a similar formula seven months ago but then disagreed over whether that could allow Assad to stay on as head of state.


Activists reported clashes between the army and rebel fighters to the east of Damascus on Monday and heavy shelling of rebel-held areas of the central city of Homs. The Jobar neighborhood, on the southwestern edge of Homs, was hit by more than 100 rockets on Monday morning, an opposition activist said.


The Syrian Observatory for Human Rights said at least 90 people were killed by dusk on Monday.


It said 180 people were killed across the country on Sunday, including 114 rebel fighters and soldiers. Sunday's death toll included 28 people killed in the bombardment of a building in the Ansari district of the northern city of Aleppo.


Assad has described the rebels as foreign-backed Islamist terrorists and said a precondition for any solution is that Turkey and Sunni-ruled Gulf Arab states stop funding, sheltering and arming his foes.


The majority of the insurgents are Islamists but those affiliated with al Qaeda are smaller in number, although their influence is growing. For that reason, Western states have been loath to arm the rebels despite their calls for Assad's ouster.


Rebels and activists say that Iran and the Lebanese Shi'ite militant movement Hezbollah have sent fighters to reinforce Assad's army - an accusation that both deny.


ECONOMIC SUPPORT


"The army of Syria is big enough, they do not need fighters from outside," Iran's Salehi said in Berlin on Monday.


"We are giving them economic support, we are sending gasoline, we are sending wheat. We are trying to send electricity to them through Iraq; we have not been successful."


Iranian President Mahmoud Ahmadinejad said later on Monday that Syria's crisis could not be solved by military means and he called for a national accord leading to elections.


"War is not the solution...A government that rules through war - its work will be very difficult. A sectarian war should not be launched in Syria," he told Al Mayadeen television.


"We believe that (deciding) whoever stays or goes is the right of the Syrian people. How can we interfere in that? We must strive to achieve national understanding, and free elections."


Another Iranian official, speaking in Damascus after talks with Assad, said Israel would regret an air strike against Syria last week, without spelling out whether Iran or its ally planned a military response.


Salehi, Russian Foreign Minister Sergei Lavrov and U.S. Vice President Joe Biden all met Alkhatib in Munich at the weekend and portrayed his willingness to talk with Syrian authorities as a major step towards resolving the war.


But Alkhatib is under pressure from other members of the exiled leadership in Cairo for saying he would be willing to talk to Assad. Walid al-Bunni, a member of the Coalition's 12-member politburo, dismissed Alkhatib's meeting with Salehi.


"It was unsuccessful. The Iranians are unprepared to do anything that could help the causes of the Syrian Revolution," Bunni, a former political prisoner, told Reuters from Budapest.


(Additional reporting by Yeganeh Torbati in Dubai and Stephen Brown in Berlin; Editing by Mark Heinrich)



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"Great Rotation"- A Wall Street fairy tale?

NEW YORK (Reuters) - Wall Street's current jubilant narrative is that a rush into stocks by small investors has sparked a "great rotation" out of bonds and into equities that will power the bull market to new heights.


That sounds good, but there's a snag: The evidence for this is a few weeks of bullish fund flows that are hardly unusual for January.


Late-stage bull markets are typically marked by an influx of small investors coming late to the party - such as when your waiter starts giving you stock tips. For that to happen you need a good story. The "great rotation," with its monumental tone, is the perfect narrative to make you feel like you're missing out.


Even if something approaching a "great rotation" has begun, it is not necessarily bullish for markets. Those who think they are coming early to the party may actually be arriving late.


Investors pumped $20.7 billion into stocks in the first four weeks of the year, the strongest four-week run since April 2000, according to Lipper. But that pales in comparison with the $410 billion yanked from those funds since the start of 2008.


"I'm not sure you want to take a couple of weeks and extrapolate it into whatever trend you want," said Tobias Levkovich, chief U.S. equity strategist at Citigroup. "We have had instances where equity flows have picked up in the last two, three, four years when markets have picked up. They've generally not been signals of a continuation of that trend."


The S&P 500 rose 5 percent in January, its best month since October 2011 and its best January since 1997, driving speculation that retail investors were flooding back into the stock market.


Heading into another busy week of earnings, the equity market is knocking on the door of all-time highs due to positive sentiment in stocks, and that can't be ignored entirely. The Standard & Poor's 500 Index <.spx> ended the week about 4 percent from an all-time high touched in October 2007.


Next week will bring results from insurers Allstate and The Hartford , as well as from Walt Disney , Coca-Cola Enterprises and Visa .


But a comparison of flows in January, a seasonal strong month for the stock market, shows that this January, while strong, is not that unusual. In January 2011 investors moved $23.9 billion into stock funds and $28.6 billion in 2006, but neither foreshadowed massive inflows the rest of that year. Furthermore, in 2006 the market gained more than 13 percent while in 2011 it was flat.


Strong inflows in January can happen for a number of reasons. There were a lot of special dividends issued in December that need reinvesting, and some of the funds raised in December tax-selling also find their way back into the market.


During the height of the tech bubble in 2000, when retail investors were really embracing stocks, a staggering $42.7 billion flowed into equities in January of that year, double the amount that flowed in this January. That didn't end well, as stocks peaked in March of that year before dropping over the next two-plus years.


MOM AND POP STILL WARY


Arguing against a 'great rotation' is not necessarily a bearish argument against stocks. The stock market has done well since the crisis. Despite the huge outflows, the S&P 500 has risen more than 120 percent since March 2009 on a slowly improving economy and corporate earnings.


This earnings season, a majority of S&P 500 companies are beating earnings forecast. That's also the case for revenue, which is a departure from the previous two reporting periods where less than 50 percent of companies beat revenue expectations, according to Thomson Reuters data.


Meanwhile, those on the front lines say mom and pop investors are still wary of equities after the financial crisis.


"A lot of people I talk to are very reluctant to make an emotional commitment to the stock market and regardless of income activity in January, I think that's still the case," said David Joy, chief market strategist at Columbia Management Advisors in Boston, where he helps oversee $571 billion.


Joy, speaking from a conference in Phoenix, says most of the people asking him about the "great rotation" are fund management industry insiders who are interested in the extra business a flood of stock investors would bring.


He also pointed out that flows into bond funds were positive in the month of January, hardly an indication of a rotation.


Citi's Levkovich also argues that bond investors are unlikely to give up a 30-year rally in bonds so quickly. He said stocks only began to see consistent outflows 26 months after the tech bubble burst in March 2000. By that reading it could be another year before a serious rotation begins.


On top of that, substantial flows continue to make their way into bonds, even if it isn't low-yielding government debt. January 2013 was the second best January on record for the issuance of U.S. high-grade debt, with $111.725 billion issued during the month, according to International Finance Review.


Bill Gross, who runs the $285 billion Pimco Total Return Fund, the world's largest bond fund, commented on Twitter on Thursday that "January flows at Pimco show few signs of bond/stock rotation," adding that cash and money markets may be the source of inflows into stocks.


Indeed, the evidence suggests some of the money that went into stock funds in January came from money markets after a period in December when investors, worried about the budget uncertainty in Washington, started parking money in late 2012.


Data from iMoneyNet shows investors placed $123 billion in money market funds in the last two months of the year. In two weeks in January investors withdrew $31.45 billion of that, the most since March 2012. But later in the month money actually started flowing back.


(Additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)



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What comes now for NFL after tumultuous season?


NEW ORLEANS (AP) — The Super Bowl closes a tumultuous year for the NFL.


Suicides by former NFL players. Thousands of others filing concussion lawsuits. New studies linking football to brain disease. Still no testing for human growth hormone. The specter of other purported performance-enhancing products — deer-antler spray, anyone? — being peddled to players.


A pay-for-pain bounty scandal. A lockout of officials resolved only after a ludicrous game-ending call. Zero minority hires for 15 coach or general manager openings.


And yet the league is as popular as ever.


Advertisers paid nearly $4 million per 30-second television commercial for the right to reach the 100 million or so Americans expected to tune in to Sunday's Super Bowl between the AFC champion Baltimore Ravens and NFC champion San Francisco 49ers. Eleven of the 12 most-watched TV programs during the last 2½ years were NFL postseason games, according to the league.


Uncertain, though, is what the future holds for an NFL still coming to grips with the dangers of a brutal sport that makes it tremendously wealthy.


"The game has changed and keeps changing. ... It is such a violent game, and such a collision game, that careers are going to be kind of like not long at all. Because you take those licks — you've only got so many in your body, and at some point that's going to wear it out," said Ravens running backs coach Wilbert Montgomery, who played that position for the Philadelphia Eagles and Detroit Lions from 1977-85.


Montgomery said he got six concussions in one season alone, and others along the way, including one that knocked him out cold a few days before playing for the Eagles in the NFC title game at the end of the 1980 season.


"I know one thing: Back then, it didn't make any difference. They gave you smelling salts and then, after that, you went back in," Montgomery said. "I have headaches all the time. That's why I say my wife is always messing with me when I have outbursts, saying, 'You've been hit too many times upside the head.'"


Montgomery laughed for a moment. Then he rubbed his forehead and continued talking, mentioning former teammate and friend Andre Waters and opponent Dave Duerson. Both committed suicide; researchers studied their brain tissue and found signs of chronic traumatic encephalopathy, or CTE, a degenerative disease also found in boxers and often linked with repeated blows to the head. Former star linebacker Junior Seau, who shot himself in May, also was found to have CTE. Baltimore's starting center on Sunday, Matt Birk, has pledged to donate his brain for study when he dies.


"It's a serious thing," Montgomery said. "It's scary."


When the President of the United States refers to fans perhaps having a guilty conscience when watching a game and parents thinking twice before allowing a child to play — as Barack Obama did in a recent interview with The New Republic — it sends a strong signal about what confronts the NFL today.


"If I was worried about my health," 49ers quarterback Colin Kaepernick said, "I wouldn't be playing football."


So the league must figure out how to deal with "walking a fine line," as 49ers CEO Jed York described it: The two-sided task of making the game safer, which Commissioner Roger Goodell acknowledges is imperative, while not making it "too safe," thereby diminishing the popularity of an enterprise that is violent by its very nature.


"There's no question that that is a bit of a conundrum. But to me, we've got to place more weight on player safety," New York Giants co-owner John Mara said. "The rules changes that we've implemented over the past five or six years have not made the game any less exciting. If anything, the game is as exciting as ever, and I strongly believe that we can make additional improvements in the rules and we're not going to lose anything in terms of excitement on the field."


Ravens owner Steve Bisciotti is convinced the NFL will strike the proper balance.


"What did they do for boxing when they made them go from 6-ounce, to 8-ounce to 12-ounce gloves or whatever? Did it change boxing? Not really," Bisciotti said. "I believe that with every change, there will be a correction. ... And I believe that we as a league and the (players' union) will agree on things that don't take football out of football."


In a series of moves that began shortly after Goodell was grilled at a congressional hearing, the league has changed concussion return-to-play guidelines, adjusted rules for kickoffs — and floated the idea of eliminating them altogether — stepped up punishment of illegal hits, and stopped arguing against the players' wish for independent neurology specialists on the sidelines during games.


Even if there are some players who in one breath worry about whether their health is imperiled, and in the next say, "We're basically going to be playing two-hand touch in a while" — Baltimore nose tackle Terrence Cody's words this week — the head of their union points out that prudence and popularity do not have to be mutually exclusive.


"The reality of it is, 'football as we know it' has evolved over decades. ... Our job is to have an unqualified commitment to the health and safety of the people who play the game, and then to make those changes where we see necessary," NFL Players Association executive director DeMaurice Smith said.


"I don't think there is this thing of 'football as we know it.' What we have is football that has constantly developed," Smith said. "And even with all of the (recent) rule changes ... my guess is this Super Bowl will be the highest-rated of all time."


Indeed, while the concussion lawsuits mount — a U.S. District Court judge in Philadelphia will hear oral arguments in April on the NFL's effort to dismiss a group of cases — and questions arise about what insurers will charge the league moving forward, the money does keep rolling in. Revenues already topped $9 billion at the time of the last labor deal in 2011, and new TV contracts will only help increase it.


"At $10-to-$12 billion? It ain't going nowhere," said Warren Sapp, a retired defensive tackle elected Saturday to the Pro Football Hall of Fame and who now works for the NFL Network, another piece of the league's marketing machine. "We play a beautiful game. We hit each other. (Players) have to take care of each other better. Then it will be fine."


Meantime, the NFL continues to look for new ways to increase its cash flow.


During his state of the league address two days before the Super Bowl, Goodell did not rule out increasing the regular season from 16 to 18 games, and he reiterated the possibility of expanding the postseason, too. He announced that two 2013 games in London already are sold out, and there could be three in future seasons — down a path that, eventually, could lead to a franchise based in Britain.


"For you to be adding games to the season, are you looking out for player safety? Or are you trying to generate more player revenue?" 49ers receiver Randy Moss said. "If you're trying to look and protect the players, and keep it healthier and better every year, I don't think it's a good idea."


Several players in this year's Super Bowl were incredulous that the league would even consider more games. A handful voiced concern over a disconnect between players and owners.


The president of the NFLPA, former Ravens cornerback Domonique Foxworth, said he wonders how truthful Goodell and other NFL officials are being when they say — as they often do — that players' well-being is a priority.


"The league, their No. 1 focus — at least they say their No. 1 focus — is health and safety. And we say our No. 1 focus is health and safety. How come we have such a hard time moving the ball on some health and safety issues?" Foxworth said. "I believe health and safety is on their list of top five things, but it comes in well behind increasing the bottom line."


___


Follow Howard Fendrich on Twitter at http://twitter.com/HowardFendrich


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Energy industry develops nontoxic fracking fluids






PITTSBURGH (AP) — The oil and gas industry is trying to ease environmental concerns by developing nontoxic fluids for the drilling process known as fracking, but it’s not clear whether the new product will be widely embraced by drilling companies.


Houston-based energy giant Halliburton Inc. has developed a product called CleanStim, which uses only food-industry ingredients. Other companies have developed nontoxic fluids as well.






Halliburton is in the business to provide solutions to our customers,” said production manager Nicholas Gardiner. “Those solutions have to include ways to reduce the safety or environmental concerns that the public might have.”


Environmental groups say they welcome the development but still have questions.


The chemicals in fracking fluids aren’t the only environmental concern, said George Jugovic, president of PennFuture. He said there is also concern about the large volumes of naturally occurring but exceptionally salty wastewater and air pollution.


It’s premature to say whether it will ever be feasible to have fluids for fracking that are totally nontoxic, said Scott Anderson, a senior adviser for the Environmental Defense Fund.


“But we are encouraged to some extent by recent industry efforts to at least reduce the toxicity,” Anderson said.


Fracking, short for hydraulic fracturing, has made it possible to tap into energy reserves across the nation but also has raised concerns about pollution, since large volumes of water, along with sand and hazardous chemicals, are injected deep into the ground to free the oil and gas from rock.


Regulators contend that overall, water and air pollution problems are rare, but environmental groups and some scientists say there hasn’t been enough research on those issues. The industry and many federal and state officials say the practice is safe when done properly, but faulty wells and accidents have caused problems.


Halliburton says CleanStim will provide “an extra margin of safety to people, animals and the environment in the unlikely occurrence of an incident” at a drilling site.


Gardiner said Halliburton has developed a chemistry-scoring system for the fluids, with lower scores being better. CleanStim has a zero score, he said, and is “relatively more expensive” than many traditional fracking fluids.


Both Jugovic and Anderson noted that one of the most highly publicized concerns about toxic fracking fluids hasn’t really been an issue: the suggestion that they might migrate from thousands of feet underground, up to drinking water aquifers.


“Most people agree there are no confirmed cases so far” of fracking chemicals migrating up to drinking water, Anderson said. But he added that simple spills of fluid on the surface can cause problems.


“The most likely of exposure is not from the fracking itself. It is from spills before the fracking fluid is injected,” Anderson said.


There also may be technical and cost issues that limit the acceptance of products such as CleanStim. There is tremendous variation in the type of shale rock in different parts of the country. For example, drillers use different fluids even within the same state, and the specific mix can play a large role in determining how productive a well is.


Gardiner wouldn’t say how widely used CleanStim is. “The customers who do use it certainly like the material,” he added.


Terry Engelder, a geologist at Penn State University, said he visited a well in that state last year that used just water, sand and three additives in the fracking fluid.


But Engelder added that “green” and “toxic” can be “soft words without real meaning.” He noted that consumers, businesses and farms use vast quantities of chemicals that can contribute to pollution, from cleaners and soaps to fertilizers and pesticides. Yet all those compounds are routinely flushed down the drain, ending up in nearby rivers and streams.


“Eventually industry would like to end up with a mix of just water, sand, and food-grade additives,” Engelder said of fracking. “Companies are learning to deal with fewer and fewer additives.”


Energy News Headlines – Yahoo! News





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