Yen on defensive on U.S. fiscal worry, helps Nikkei

TOKYO (Reuters) - Uncertainty over whether U.S. lawmakers will strike a deal by an end-of-year deadline to avert a severe fiscal retrenchment undermined the yen and bolstered Japanese shares on Tuesday in low volume, with many participants away on Christmas holiday.


The dollar rose to a 20-month high of 84.965 yen early on Tuesday in Asia, as Japanese markets caught up with global investors who had reacted overnight to incoming Japanese Prime Minister Shinzo Abe's weekend comments that raised the pressure on the Bank of Japan.


During a meeting on Tuesday with officials from Japan's major business lobby, Keidanren, Abe reiterated calls on the BOJ to conduct bold monetary easing to beat deflation by setting an inflation target of 2 percent.


The head of Abe's coalition partner said on Tuesday the coalition party and Abe had agreed to set a 2 percent inflation target and compile a large stimulus budget to help the economy return to growth and overcome deflation.


The yen has come under pressure as a result of expectations that the BOJ will be compelled to adopt more drastic monetary stimulus measures next year.


The dollar was expected to stay firm this week as investors repatriate dollars, and as the U.S. fiscal impasse is likely to continue to sap investor appetite for risky assets and raise the dollar's safe-haven appeal.


"The dollar is seen relatively well bid, with all focus on the fiscal cliff," said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo.


"Negotiations may be carried over the weekend, but markets still expect a deal to be struck by December 31. It is unthinkable that the U.S. will risk driving its economic growth sharply lower by not agreeing to avoid it."


U.S. lawmakers and President Barack Obama were on Christmas holiday and talks were unlikely to resume until later in the week.


House of Representatives Speaker John Boehner failed to gain support for a tax plan at the end of last week, raising fears that the United States may face the "fiscal cliff" of some $600 billion in automatic spending cuts and tax increases set to start on January 1.


Japan's Nikkei stock average <.n225> resumed trading after a three-day weekend with a 1.1 percent gain, recapturing the key 10,000 mark it ceded on Friday after Boehner's failure sparked a broad market sell-off and the Tokyo benchmark closed down 1 percent. The Nikkei was likely to be supported as long as the yen stayed weak. <.t/>


"Ongoing optimism about the weak yen is lifting hopes that exporters' earnings will be better than expected," said Hiroichi Nishi, general manager at SMBC Nikko Securities.


Analysts say a near-term correction may be possible as the index is now in "overbought" territory after gaining 16.2 percent over the last six weeks, hitting a nine-month high last Friday. Its 14-day relative strength index was at 72.34, above the 70 level that signals an overbought condition.


MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> nudged up 0.1 percent, driven higher by surging Shanghai shares, as most Asian bourses were shut for Christmas.


The Shanghai Composite Index <.ssec> soared over 2 percent to five-month highs as investors bought property stocks on mounting optimism about the sector. Taiwan shares <.twii> jumped 1.3 percent on gains in technology and financial shares.



Asset performance in 2012: http://link.reuters.com/muc46s


2012 commodities returns: http://link.reuters.com/faz36s


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U.S. HOLDS 2013 KEY


Goro Ohwada, president and CEO at Japan-based fund of hedge funds Aino Investment Corp, said investors were likely to focus on economic fundamentals and the United States for cues on investment direction in 2013.


"There is a feeling that an investment strategy based on economic fundamentals may finally work next year, with asset prices more closely reflecting fair value. The problem is, we don't know yet which asset is a better bet than others," Ohwada said, adding that oil and gold appeared to be near their highs.


Naohiro Niimura, a partner at research and consulting firm Market Risk Advisory, said commodities and energy prices will likely move in tight ranges in 2013, with investors eyeing political events, including the U.S. fiscal cliff outlook, Italian parliamentary election set for February 24-25, and Germany's elections in September.


"The macroeconomic policies taken this year around the world to support growth are expected to result in a moderate recovery in 2013 to reduce an excessive downside risk to prices. This will likely keep commodities, gold and energy prices near their highs," Niimura said.


(Additional reporting by Ayai Tomisawa in Tokyo; Editing by Edmund Klamann and Daniel Magnowski)



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Rondo leads Celtics past Nets 93-76


NEW YORK (AP) — Rajon Rondo lost his cool, and any chance at history, in the second quarter when Boston last met Brooklyn.


This time, the second period featured some of the best basketball the Celtics have played this season.


Rondo scored 19 points in his first full game against the Nets this season, and the Celtics won 93-76 on Tuesday in another game with some heated moments between the division rivals.


Rondo, sidelined in the first meeting and thrown out of the second after shoving Nets forward Kris Humphries into the courtside seats, outplayed counterpart Deron Williams and helped the Celtics take control early.


"We moved the ball; we rebounded the ball," Rondo said. "They beat us pretty bad on the glass, so tonight we did an exceptional job on the glass, taking care of the defensive rebounds, and we got stops."


A month after the teams scuffled in Boston, there was another skirmish in the fourth quarter that resulted in four technical fouls. But that was the most fight the Nets put up in a disappointing performance on the national stage of the Christmas opener. They were never in the game after the first 20 minutes, and their fans headed to the exits with under 2 minutes left as a "Let's go Celtics!" chant broke out.


"It was a big game for us. It was a division rival. We were ready for a big game. It just didn't happen," Williams said.


Rookie Jared Sullinger tied a career high with 16 points and Jeff Green had 15 for the Celtics (14-13), who avoided falling under .500 with just their second victory in six games.


The Celtics took control with a 23-5 run in the second quarter of the opener of their four-game road trip. They had 11 assists on 13 baskets and outscored the Nets 34-18 in the period after dropping the previous two meetings.


"It was good to get off to this start. It was good to finally play from start to finish, especially with the way we've been playing against Brooklyn," said Paul Pierce, who had just eight points on 3-of-10 shooting. "So it was a well-balanced game, but I'm happy with the start of the trip."


Gerald Wallace and Brook Lopez each scored 15 for the Nets, who have lost four of five. Struggling to find anything that worked, they played Lopez and fellow center Andray Blatche together with three guards at one point, but Brooklyn shot just 41 percent and committed 20 turnovers that led to 25 points.


Williams had only 10 points on 3-of-7 shooting and Joe Johnson, his partner in a high-priced backcourt, shot 4 of 14 for his 12 points.


"This one hurts. We didn't play our game. They beat us from the opening tip," Wallace said. "We didn't make shots. We turned the ball over too easy. Our defense just wasn't there tonight. We were not ourselves tonight."


Boston's Kevin Garnett had eight points and 10 rebounds on the day he tied Charles Oakley for 15th place on the NBA's career list with his 1,282nd game. He was also front and center when things got testy.


Wallace was fouled with 9:31 remaining and appeared to hold onto Garnett's uniform to balance himself and not fall. Garnett was fine with that but then objected to how long Wallace hung on to his shorts, and they said something to each other as they tried to push themselves free. That led to technical fouls on the two, along with Blatche and Courtney Lee.


Garnett said he asked Wallace what he was doing but got no response.


"I don't know where in America you can (yank) somebody's pants off, or shorts off. I don't know what the hell was going on," Garnett said.


Sullinger delivered a flagrant foul on Wallace a few minutes later, but there was nothing further.


In the Nets' Nov. 28 victory in Boston, Rondo, Humphries and Wallace were ejected.


It was the second quarter of that game where things got away from the Celtics, and Rondo's frustrations soon followed when he shoved Humphries after the Nets forward fouled Garnett. That ruined the point guard's chance to extend what was then a 37-game streak with double-digit assists, tied for second-longest ever, by finishing with three. He had five assists and six rebounds Tuesday.


This time, the second period belonged to the guys in green.


With the Celtics down three, Green had six points in a 10-0 run that made it 36-29. After Johnson's basket, Boston answered with a 13-3 spurt. Jason Terry made a 3-pointer before Rondo converted a three-point play to push the Celtics' lead to 49-34 with 3:56 to go.


The Celtics opened a 21-point lead early in the third quarter and cruised from there. Terry finished with 11 points.


Notes: As with everyone playing on Christmas, players, coaches and referees wore green ribbons in tribute to the families of Sandy Hook Elementary School. ... Humphries was out with an abdominal strain and will be re-evaluated after the Nets return from Milwaukee. He had mostly been a starter but then didn't play at all Sunday against Philadelphia. ... Feeling Avery Bradley isn't ready yet, Celtics coach Doc Rivers decided not to bring the guard on the road trip so he can continue working his way back from shoulder surgery in Boston. Rivers said the shoulder is strong but that Bradley has had only 2½ practices.


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Whale Whodunit: How Investigators Solve Marine Deaths






Sometimes the bodies show up floating in the ocean, other times they wash ashore. Then it’s up to investigators to figure out what happened.


Whales, like humans, can meet unnatural ends. The bodies they leave behind can tell a story about what killed them, sometimes revealing evidence of a prolonged, painful death.






Michael Moore, director of the Woods Hole Oceanographic Institution‘s Marine Mammal Center, is among those who lead examinations, known as necropsies, on dead whales.


Whales, because of their enormous size and weight, present a unique challenge when they wash up on a beach or appear floating at sea. [In Photos: The World's Biggest Animals]


A plan & tools


“I don’t get involved unless I have a plan, because as soon as I am involved, I am committed to disposing of it,” Moore said of a dead whale’s body. “So essentially you work backwards from the end stage, whether it be digging a hole in the beach, or trucking it off or towing it back out to sea or whatever.”


Moore’s tools include a camera, knives (kept in a box marked with a note for airport security), chest waders, rubber gloves, hooks, chains and heavy machinery with trained operators. The heavy machinery ideally includes an excavator, for pulling the animal apart and digging a hole, and a front-end loader, for moving the animal and parts of it around, as well as filling the hole. 


“If you don’t have the machinery it can take days and days, you may never finish,” the necropsy and bury the whale, he said.


Overall, his crew typically includes eight or nine people.


The suspects


The deaths that most concern Moore are those caused by humans, specifically, by collisions with boats or fishing gear that entangles the whale.


Sometimes the cause is obvious. A ship’s propeller can leave slices on a whale’s body. In one case, a whale found floating near Jacksonville, Fla., had obvious propeller cuts down one side of its body, including into its chest.


“When the animal was pulled up the beach, you could hear gas coming out of the chest,” Moore said.


The blunt trauma of a collision with a boat can be less obvious, while entanglement in fishing gear can be more obvious, or not.


Information about why whales die matters because many whale populations are small and vulnerable.


Right whales, a species of particular interest to Moore, were estimated in 2007 to number at least 396 in the western North Atlantic; they are one of the most endangered large whales in the world. Ship strikes and entanglements with fishing gear are believed to be holding back the right whale population’s growth and recovery, according to the U.S. National Oceanic and Atmospheric Administration’s 2011 stock assessment. 


The necropsy


After inspecting the whale externally and taking measurements, Moore and his crew measure the thickness of its insulating fat, or blubber, which they strip off by hooking the blubber to a chain attached to the bucket of an excavator, to “unpeel it like a banana,” he said.


Once the blubber is off, the team peels away the now-exposed muscle, getting down to the chest and abdomen, where they remove ribs and examine the animal’s organs — if they haven’t already decomposed.


Moore can’t explain what a decaying whale smells like; he lost his sense of smell in veterinary school, because of exposure to formalin, a preservative made with formaldehyde. But rather than an advantage, this is a problem, he said: “I think a good sense of smell is a valuable diagnostic tool, so I regret not having my sense of smell.” [The 10 Weirdest Animal Discoveries of 2012]


During this process, the investigators are looking for abnormalities, such as bruising, often accompanied by fractured bones. These are common signs of a boat collision.


Evidence of a fishing gear entanglement may be obvious — for instance rope, net or other gear still attached to the animal — but sometimes these are gone.


The whale may have lost the gear over time or fishermen may have removed it in the hopes of salvaging the gear, Moore said.


One humpback whale he examined had obviously been in a trawl net, yet only a small knot of twine in its mouth remained.


A slow death


Particularly agonizing stories can show up in the entanglement deaths.


Right whales that pick up gear meant for lobsters or humpbacks that catch herring trawl nets can survive for months. The gear — depending on where it has become attached — can kill in a variety of ways, Moore and colleagues describe in a review article published in the Journal of Marine Biology earlier this year. It can drown a whale; if caught in the whale’s mouth, the gear can starve the animal; it can exhaust them by creating drag; it can cause injuries that can lead to infection and loss of blood.


In the review, Moore and graduate student Julie van der Hoop label these long-lasting whale entanglements “cruel” in their article.


“I think any animal on this planet, especially the more cognitive, higher sentient beings have a right to be as pain-free as possible, and when human activities cause wild animals to be in pain I object to that,” Moore said.


Follow LiveScience on Twitter @livescience. We’re also on Facebook & Google+.


Copyright 2012 LiveScience, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Hollywood movies can (mis)educate us


















Movies for adults


Movies for adults


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Movies for adults


Movies for adults


Movies for adults


Movies for adults


Movies for adults


Movies for adults


Movies for adults


Movies for adults








STORY HIGHLIGHTS


  • Dean Obeidallah: A movie or TV show can educate or (mis)educate you

  • Obeidallah: Two new films about hot issues are firing up both the left and right

  • Senators slammed "Zero Dark Thirty," and energy industry attacked "Promised Land"

  • Obeidallah: What does Hollywood want? To make money, of course




Editor's note: Dean Obeidallah, a former attorney, is a political comedian and frequent commentator on various TV networks including CNN. He is the editor of the politics blog "The Dean's Report" and co-director of the upcoming documentary "The Muslims Are Coming!" Follow him on Twitter: @deanofcomedy


(CNN) -- Can a movie actually convince you to support torture? Can a movie really persuade you that "fracking" -- a process used to drill for natural gas -- is a danger to the environment? Can a movie truly cause you to view certain minority groups in a negative light?


Some scoff at the notion that movies do anything more than entertain. They are wrong. Sure, it's unlikely that one movie alone will change your views on issues of magnitude. But a movie (or TV show) can begin your "education" or "miseducation" on a topic. And for those already agreeing with the film's thesis, it can further entrench your views.


Anyone who doubts the potential influence that movies can have on public opinion need to look no further than two films that are causing an uproar even before they have opened nationwide. They present hot button issues that manage to fire up people from the left and right.



Dean Obeidallah

Dean Obeidallah



The first, "Zero Dark Thirty," is about the pursuit and killing of Osama bin Laden, which features scenes of torture. The second, "Promised Land," stars Matt Damon and explores how the use of fracking to drill for natural gas can pose health and environmental dangers.



Critics of "Zero Dark Thirty" fear that audiences will accept as true the film's story line that torture was effective in eliciting information to locate bin Laden. They are rightfully concerned that the film will sway some to become more receptive or even supportive of the idea of torturing prisoners.


Peter Bergen: Did torture really net bin Laden?


Opposition to the film escalated last week as three senior U.S. senators -- John McCain, Carl Levin and Dianne Feinstein -- sent a letter to the film's distributor, Sony Pictures, characterizing the film's use of torture as "grossly inaccurate and misleading." The senators bluntly informed Sony Pictures that it has "an obligation to state that the role of torture in the hunt for Osama bin Laden is not based on the facts, but rather part of the film's fictional narrative."


Is this just more liberal whining?








Well, the hostility toward "Promised Land" shows us that it's not just liberals who complain about movie messages. Big business -- namely, the gas industry -- is aggressively objecting to the allegation in "Promised Land" that fracking poses environmental and health risks.


How concerned is the gas industry?


It has set up a rapid response team to counter publicity for the film by using two Washington-based groups that lobby for gas and oil companies: the Independent Petroleum Association of America and Energy in Depth. These groups have scrutinized appearances by the films stars on talk shows, questioned who the financiers of the film are, published parts of the script and mocked the film on social media.


Energy in Depth went as far as to "fact check" a recent appearance by the films co-star and co-writer, John Krasinski, on "Late Night With David Letterman." Within hours of Krasinski's appearance, Energy in Depth posted a blog on its website pointing out what it perceived as factual errors made by Krasinski about fracking.


Regardless of whether "Zero Dark Thirty" and "Promised Land" intended to promote any message, people who watch them will be "educated" in some way on torture and fracking -- even if very subtly.


This is the same reason that minority groups continue to object being represented in a negative light in movies and TV. They understand that accurate representations matter because studies have shown that biases can form based on stereotypes or inaccurate representations. (Being of Italian and Arab descent, I'm acutely aware of this issue as my respective heritages have been represented by a parade of mobsters and terrorists.)


What's Hollywood's role in all of this? The same as it has always been -- to make money.


In fact, there's no doubt that the studios behind these movies are overjoyed at the controversy that has erupted and the resulting free press. Indeed, the response of Sony Pictures to the uproar over "Zero Dark Thirty" tells you about what they really hope we will all do: "We encourage people to see the film before characterizing it."


So go ahead, enjoy these films and ones like them that are based on actual events or current hot issues. But while you are watching them, be aware you might be getting more than the price of ticket. You might also be getting a (mis)education.


Follow us on Twitter @CNNOpinion


Join us on Facebook/CNNOpinion


The opinions expressed in this commentary are solely those of Dean Obeidallah.






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NY man who shot firefighters: Killing 'what I like doing best'










NEW YORK (Reuters) - A gunman who killed two volunteer firefighters and wounded two others in a Christmas Eve ambush in upstate New York left a typewritten note saying he planned to burn down his neighborhood and start "killing people," authorities said on Tuesday.

The gunman, William Spengler, 62, opened fire on volunteer firefighters who responded to a house fire he deliberately set early on Monday morning in Webster, New York, a suburb of Rochester, authorities said.






Spengler shot and killed himself in an ensuing gunfight with police. He had spent 17 years in prison for beating his 92-year-old grandmother to death with a hammer in 1981, authorities said.

Police said Spengler set the fire, laying a trap for the firefighters, and began shooting when they arrived.

He left a typewritten note describing his intent, Webster Police Chief Gerald Pickering said at a televised news conference.

"I still have to get ready to see how much of the neighborhood I can burn down and do what I like doing best, killing people," Pickering read from the gunman's statement.

Investigators had found human remains in Spengler's burned-out house, where he lived with his sister, Cheryl Spengler, 67, Pickering said. The remains are assumed to be the sister's and a medical examiner will determine the cause of death.

"A CLEAR AMBUSH"

Spengler started shooting at the arriving firefighters before they got out of their fire truck, Pickering said. He shot out the truck's windshield as they tried to drive away, he said.

"This was a clear ambush on first responders," Pickering said. Police fired back at the gunman, he said. "It was a combat condition. They were shooting at muzzle flash," Pickering said.

Spengler was in a natural depression in an embankment near a tree when he opened fire, he said.

His motive for attacking firefighters remained unknown, Pickering said. It may have been related to contributions his mother had made to the local fire department, he said.

Pickering said he was not sure what the victims were shot with, but said Spengler had an "arsenal of ammunition" and three weapons - a Smith & Wesson .38 caliber revolver, a pump-action Mossberg shotgun, and a .223 Bushmaster rifle with a flash suppressor.

The same model Bushmaster rifle was used in the killing of 20 students and six teachers in Newtown, Connecticut, on December 14.

Authorities with the Bureau of Alcohol, Tobacco, Firearms and Explosives were checking on the origin of the weapons, he said.

As a convicted felon, Spengler could not legally own guns. Pickering said authorities were examining potential links between the weapons and thefts of guns in the county.

The firefighters killed in the attack were Lieutenant Michael Chiapperini and Tomasz Kaczowka, authorities said.

The injured firefighters were identified as Joseph Hofsetter and Theodore Scardino. Both men were listed in guarded condition at Strong Memorial Hospital in Rochester.

An off-duty police officer was wounded by shrapnel as he drove past the scene. The officer was treated at a hospital and released.

Seven homes in the neighborhood were destroyed by the fire, and two were uninhabitable, Pickering said.

(Reporting by Ian Simpson; Editing by Ellen Wulfhorst, Dan Grebler, Steve Orlofsky and Leslie Gevirtz)

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Egypt approves new constitution drafted by Mursi allies


CAIRO (Reuters) - Egyptian voters overwhelmingly approved a constitution drafted by President Mohamed Mursi's allies, results announced on Tuesday showed, proving that liberals, leftists and Christians have been powerless to halt the march of Islamists in power.


Final elections commission figures showed the constitution adopted with 63.8 percent of the vote in the referendum held over two days this month, giving Mursi's Islamists their third straight electoral victory since veteran autocrat Hosni Mubarak was toppled in a 2011 revolution.


Opposition groups had taken to the streets to block what they see as a move to ram through a charter that mixes politics and religion dangerously and ignores the rights of minorities.


Mursi says the text - Egypt's first constitution since Mubarak's fall - offers enough protection for minorities, and adopting it quickly is necessary to end two years of turmoil and political uncertainty that has wrecked the economy.


"I hope all national powers will now start working together now to build a new Egypt," Murad Ali, a senior official in the Muslim Brotherhood's Freedom and Justice Party, told Reuters.


"I see this as the best constitution in Egypt's history."


In a sign that weeks of unrest have taken a further toll on the economy, the government ordered new restrictions on foreign currency apparently designed to prevent capital flight. Leaving or entering with more than $10,000 cash is now banned.


Two years since waves of unrest broke out across the Middle East and North Africa - sweeping away long-entrenched rulers in Tunisia, Libya and Yemen as well as Egypt - well-organized Islamist parties have emerged as the main beneficiaries.


Urban secularists and liberals who were behind the revolts complain that their success has been hijacked.


"We need a better constitution," said Khaled Dawood, an opposition spokesman. "It does not represent all Egyptians."


Mursi's opponents say the new constitution could allow clerics to intervene in lawmaking, while offering scant protections to minorities and women. Mursi dismisses those criticisms, and many Egyptians are fed up with street protest movements that have prevented a return to normality.


Immediately after the announcement, a small group of protesters set tires on fire and blocked traffic near the central Tahrir square, the cradle of Egypt's uprising, but there were no immediate signs of violence or major demonstrations.


Washington, which provides billions of dollars a year in military and other support for Egypt and regards it as a pillar of security in the Middle East, called on Egyptian politicians to bridge divisions and on all sides to reject violence.


"President Mursi, as the democratically elected leader of Egypt, has a special responsibility to move forward in a way that recognizes the urgent need to bridge divisions," State Department spokesman Patrick Ventrell said. He noted that many Egyptians had voiced "significant concerns" over the constitutional process.


WORSENING ECONOMY


The government says its opponents are worsening the economic crisis by prolonging political upheaval. It has pledged to impose unpopular tax increases and spending cuts to win a loan package from the International Monetary Fund.


The ban on travelling with more than $10,000 in cash followed a pledge by the central bank to take unspecified measures to protect Egyptian banks. Some Egyptians have begun withdrawing their savings in fear of more restrictions.


"I am not going to put any more money in the bank and neither will many of the people I know," said Ayman Osama, father of two young children.


He said he had taken out the equivalent of about $16,000 from his account this week and planned to withdraw more, adding that he had also told his wife to buy more gold jewellery.


The "yes" vote paves the way for a parliamentary election in about two months, setting the stage for another battle between surging Islamists and their fractious opponents.


The final result, announced by the election commission, matched - to the last decimal place - an earlier unofficial tally announced by Mursi's Muslim Brotherhood.


But the opposition said it was disappointed - it had appealed for the result to be amended to reflect what it described as major vote violations during the two-round vote.


Officials said there were no violations serious enough to change the result significantly. "We have seriously investigated all the complaints," said judge Samir Abu el-Matti of the Supreme Election Committee. The final turnout was 32.9 percent.


SENSE OF CRISIS


The referendum has sharpened painful divisions in the Arab world's most populous nation and a growing atmosphere of crisis has gripped Egypt's polarized society.


Anxiety about the economy deepened this week when Standard and Poor's cut Egypt's long-term credit rating. Prime Minister Hisham Kandil told the nation of 83 million on Tuesday the government was committed to fixing the economy.


"The main goals that the government is working towards now is plugging the budget deficit, and working on increasing growth to boost employment rates, curb inflation, and increase the competitiveness of Egyptian exports," he said.


The referendum follows Islamist victories in parliamentary and presidential elections, representing a decisive shift in a country at the heart of the Arab world where Mursi's Muslim Brotherhood was suppressed for generations by military rulers.


However, secularist and liberal opposition members hope they can organize better in time for the next parliamentary vote.


Hossam El-Din Ali, a 35-year-old newspaper vendor in central Cairo, said he agreed the new constitution would help bring some political stability but like many others he feared the possible economic austerity measures lying ahead.


"People don't want higher prices. People are upset about this," he said. "There is recession, things are not moving. But I am wishing for the best, God willing."


(Additional reporting by Patrick Werr, Tamim Elyan, Ahmed Tolba and Marwa Awad; Writing by Maria Golovnina)



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Start of "Santa Claus rally" dampened by "cliff' worries

NEW YORK (Reuters) - U.S. stocks edged lower on Monday as caution over the potential for volatility driven by worries about the U.S. "fiscal cliff" dampened enthusiasm at the start of a seasonally strong period for equities.


Investors are betting Congress will reach a deal to avert most of the austerity measures due to come into force at the start of next year. That has led to the best year for stocks since the post-financial crisis rebound. But those gains may be quickly reversed if a deal is not reached soon.


The S&P 500 index posted its biggest drop in more than a month on Friday as a Republican plan to avoid the cliff - $600 billion in tax hikes and spending cuts that could tip the U.S. economy into recession - failed to gain traction on Thursday night.


Sharp moves like that highlight how headlines from Washington can whipsaw markets, especially during the thinly traded period over the Christmas holiday.


Still, with the S&P 500 up 0.7 percent in December and on course for its strongest month since September, some analysts are predicting that stocks will find their footing during a market seasonality known as the "Santa Claus rally."


"Right now we've seen some very constructive action in the market so I think that bodes well for this being a positive seasonal 'Santa' period over the coming seven days," said Ari Wald, a technical analyst at The PrinceRidge Group.


He noted an all-time high in the NYSE advance-decline line, which compares advancing and declining stocks, as indication of strong participation in the rally off November lows.


"Pull-backs are buying opportunities," said Wald. "There has been really great participation on this move, a lot of small- and mid-cap stocks behaving well, pushing out to the upside; we're seeing some good leadership from offensive sectors of the market as well."


A high ratio of advancing stocks to declining issues shows there is broad participation across the equity market.


The Santa seasonality covers the last five trading days of the year and the first two of the new year. Since 1928, the S&P 500 has averaged a gain of 1.8 percent during this period and risen 79 percent of the time, according to data from PrinceRidge.


The Dow Jones industrial average <.dji> dropped 51.76 points, or 0.39 percent, to 13,139.08. The Standard & Poor's 500 Index <.spx> fell 3.49 points, or 0.24 percent, to 1,426.66. The Nasdaq Composite Index <.ixic> lost 8.41 points, or 0.28 percent, to 3,012.60.


The S&P 500 is up more than 13 percent for the year, having recovered nearly all the losses suffered in the wake of the U.S. election. The yearly gain would be the best since 2009.


Some U.S. lawmakers expressed concern on Sunday the country would go over the cliff, as some Republicans charged that was President Barack Obama's goal. Talks are stalled with Obama and House of Representatives Speaker John Boehner out of Washington for the holidays.


"It does seem like we are continuing through the same drift of the same thing we've had the past couple of weeks - 'cliff' talk," said Nick Scheumann, wealth partner at Hefty Wealth Partners in Auburn, Indiana.


"You can't trade on what you don't know and we truly don't know what they are going to do," he said.


Congress is expected to return to Washington next Thursday as President Barack Obama returns from a trip to Hawaii. As the deadline draws closer, a 'stop-gap' deal appears to be the most likely outcome of any talks.


Trading volume was muted, with U.S. equity markets closing at 1 p.m. (1800 GMT) ahead of the Christmas Day holiday on Tuesday.


In addition, a number of European markets operated on a shortened session, with other markets closed.


U.S. retailers may not see a sales surge from this weekend as ho-hum discounts and fears about imminent tax hikes and cuts in government spending give Americans fewer reasons to open their wallets in the last few days before Christmas.


Aegerion Pharmaceuticals Inc said the U.S. Food and Drug Administration approved Juxtapid capsules in patients with homozygous familial hypercholesterolemia, but will conduct a post-approval study to test long-term safety and efficacy. Shares fell 1.8 percent to $25.25.


Herbalife Ltd dipped 4.4 percent to $26.06 after the company said it expects to exceed its previously announced repurchase authorization guidance and has retained Moelis & Company as its strategic adviser. The declines put the stock on track for a ninth straight decline.


Yum Brands Inc advanced 1.8 percent to $65.01 after Shanghai's food safety authority said the level of antibiotics and steroids in the company's KFC chicken was within official limits.


(Reporting By Edward Krudy; Editing by Chizu Nomiyama and Dan Grebler)



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Pagano back to coach Colts after cancer treatment


INDIANAPOLIS (AP) — Chuck Pagano stepped to the podium Monday, hugged his team owner, thanked his family for its support and wiped a tear from his eye.


He might, finally, turn out the lights in his office, too.


Nearly three months to the day after being diagnosed with leukemia, the Colts' first-year coach returned to a team eager to reunite with a boss healthy enough to go back to work.


"I told you my best day of my life was July 1, 1989," Pagano said, referring to his wedding date. "Today was No. 2. Getting to pull up, drive in, get out of my car, the key fob still worked. I was beginning to question whether it would or not. When I asked for Bruce to take over, I asked for him to kick some you-know-what and to do great. Damn Bruce, you had to go and win nine games? Tough act to follow. Tough act to follow. Best in the history of the NFL. That's what I have to come back to."


The comment turned tears into the laughter everyone expected on such a festive occasion.


For Pagano and the Colts, Monday morning was as precious as anyone could have imagined when Pagano took an indefinite leave to face the biggest opponent of his life, cancer.


In his absence, all the Colts was win nine of 12 games, make a historic turnaround and clinch a playoff spot all before Sunday's regular-season finale against Houston, which they pegged as the day they hoped to have Pagano back. If all goes well at practice this week, Pagano will be on the sideline for the first time since a Week 3 loss to Jacksonville.


Pagano endured three rounds of chemotherapy to put his cancer in remission.


That Pagano's return came less than 24 hours after Indy (10-5) locked up the No. 5 seed in the AFC and the day before Christmas seemed fitting, too.


"I know Chuck is ready for this challenge. In speaking to his doctor multiple times, I know that the time is right for him to grab the reins, get the head coaching cap on and begin the journey," owner Jim Irsay said. "It's been a miraculous story. It really is a book. It's a fairytale. It's a Hollywood script. It's all those things but it's real."


The reality is that he's returning to a vastly different team than the one he turned over to Arians, his long-time friend and first assistant coaching hire.


Back then, the Colts were 1-2 and most of the so-called experts had written them off as one of the league's worst teams. Now, they're ready to show the football world that they can be just as successful under Pagano as they were under Arians, who tied the NFL record for wins after a midseason coaching change.


Pagano also has changed.


The neatly-trimmed salt-and-pepper hair and trademark goatee that were missing in November have slowly returned, and the thinner man who appeared to be catching his breath during a postgame speech in early November, looked and sounded as good as ever Monday.


He repeatedly thanked fans for their prayers and letters, the organization and his family for their unwavering help and promised to provide comfort and support to other people who are facing similar fights. During one poignant moment that nearly brought out tears again, Pagano even recounted a letter sent to him by a 9-year-old child who suggested he suck on ice chips and strawberry Popsicles in the hospital and advised him to be nice to the nurses regardless of how he felt — and he never even paused.


"I feel great, my weight is back, my energy is back and again, it's just a blessing to be back here," Pagano said.


In the minds of Colts players and coaches, Pagano never really left.


He continually watched practice tape and game film on his computer, used phone calls and text messages to regularly communicate with players and occasionally delivered a pregame or postgame speech to his team.


"He texted me and called me so much, it was like he was standing there in my face every day," said receiver Reggie Wayne, who has been friends with Pagano since the two were working together at the University of Miami.


But the Colts found plenty of other ways to keep Pagano's battle in the forefront.


They began a fundraising campaign for leukemia research, calling it Chuckstrong. Players had stickers with the initials CP on their locker room nameplates, and Arians wore an orange ribbon on his baseball cap during games. Orange is the symbolic color for leukemia. At one point, nearly three dozen players shaved their heads to show their ailing coach they were with him.


That's not all.


Arians and first-year general manager Ryan Grigson decided to leave the lights on in Pagano's office until he returned. Pagano noted the team even installed plastic clips to make sure those lights were not mistakenly turned off while he was gone. Those clips were removed when Pagano arrived Monday morning.


And Arians said nobody sat in the front seat of the team bus.


"He's always been our head coach," Arians said.


So after getting medical clearance from his oncologist, Dr. Larry Cripe, to return with no restrictions, Pagano couldn't wait to get to the office Monday morning.


Arians arrived at 7 a.m., three hours early for the scheduled team meeting. By then, Pagano had already driven past the inflatable Colts player with the words "Welcome Back Chuck" printed on its chest and was back in his office preparing for the Texans.


Players showed up a couple of hours later, and when the torch was passed from Arians back to Pagano, players gave their returning coach a standing ovation that Wayne said was well-deserved.


All Pagano wants to do now is emulate the success Arians and his players have had this season.


"I asked him (Arians) if he would lead this team and this ballclub and this organization and take over the reins," Pagano said. "What a masterful, masterful job you did Bruce. You carried the torch and all you went out and did was win nine ballgames. You got us our 10th win yesterday and you got us into the playoffs. You did it with dignity and you did it with class. You're everything that I always knew you were and more."


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Shootings: Suicide risk gives clues




A sign near a cemetery of a victim in the school shooting in Newtown, Connecticut.




STORY HIGHLIGHTS


  • Daniel Flannery: Studies show there is no distinct profile of school shooters

  • Flannery: We can take lessons from what we know about risk for suicide

  • He says we can do better to assess a person's risk for violent action toward others

  • Flannery: Communities and schools should pay more attention to kids' mental health




Editor's note: Daniel J. Flannery is the Dr. Semi J. and Ruth Begun professor and director of the Begun Center for Violence Prevention, Research and Education at the Mandel School of Applied Social Sciences at Case Western Reserve University.


(CNN) -- It is hard not to feel a sense of despair, loss and anxiety over the shooting in Newtown, Connecticut. We want answers. We may not know for a very long time, if ever, what really motivated the shooter.


Previous studies of school shooters show us that some common mental health symptoms characterize many of the perpetrators, including poor anger management ability, narcissism, low self-esteem and lack of empathy. However, there are still many more differences across shooters than similarities, so to date there is no distinct profile of school shooters.


What can we do, aside from the psychological autopsying of recent incidents, to try and prevent more homicide school shootings? There is no simple answer. But we can take some lessons from what we know about risk for suicide.



Daniel J. Flannery

Daniel J. Flannery



For many years, we have done a pretty good job of getting people to take threats of suicide seriously. If a young person walks into a counselor's office and says something like, "I think I'm going to kill myself," that counselor has been professionally trained and socialized to not underestimate the threat of self-injury.


Certainly, not every young adult who says such a thing goes on to commit suicide. Evidence shows that many of them have at least thought about hurting or killing themselves at some point, but few actually make a real attempt and fewer still carry it out.








Developing a good model for assessing the risk of suicide can provide a framework for how to assess the seriousness of threats to commit acts of violence toward others.


For example, one of the best predictors of suicide is previous suicide attempts. We try to determine whether a person has access to lethal methods of self-harm (drugs, firearms) and how detailed are the plans to carry out the act. We look for signs of anger and whether the person has experienced a recent crisis or loss. We try to figure out if a person's sense of rejection or disenfranchisement leads to a sense of hopelessness about the future, and a conviction that suicide is the only way out of a desperate situation. Moreover, if a person knows someone close who has committed suicide, we have to be vigilant since there tends to be an increase (clustering) of suicides among friends or acquaintances.


Each of these signposts can help us do a better job of assessing a person's risk for carrying out acts of violence toward others like in the school shootings.


We can look for any history of violence -- whether the person has written about or told others of his or her intent. We can try to find out whether the person has access to firearms or has thought out a plan to carry out an attack. We can try to evaluate levels of anger, feelings of rejection, or expressions of hopelessness about the future.


Most adolescent school shooters have said something to peers prior to taking any action, but not always to the direct target of an attack, and rarely to an adult. (In contrast, in rampage shootings carried out by adults, we don't have as much information and they don't usually give verbal warnings or threats beforehand.)


Ideally, assessing the risk would be carried out using a validated set of reliable indicators, with detailed semi-structured interviews performed by trained mental health professionals. In schools, social workers, counselors or school psychologists can screen young people for risk of potential violence perpetration and refer them to other mental health professionals who could do a more thorough assessment if necessary. Of course, adequate screenings depend largely on adequate time, resources and staff training.


Not every young person who makes a threat to hurt others will end up committing an act of violence toward others, and very few will ever commit a multiple mass shooting. But just as we take threats of suicide seriously, we should pay equal attention to those who say they might harm others.


We have to do all we can to make sure our children are safe, and that they all come home at the end of the school day. We can take steps as a community to pay attention to mental health and violence as it occurs every day, not just when horrible acts of great magnitude occur.


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The opinions expressed in this commentary are solely those of Daniel J. Flannery.






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Police: NY gunman set 'trap' for firefighters












An ex-con gunned down two firefighters after luring them to his neighborhood by setting a car and a house ablaze early Monday, then took shots at police and committed suicide while several homes burned.


Authorities used an armored vehicle to help residents flee dozens of homes on the shore of Lake Ontario a day before Christmas. Police restricted access to the neighborhood, and officials said it was not clear whether there were other bodies in the seven houses left to burn.











The sister of the gunman, who lived with him, was unaccounted for. The gunman's motive was unknown.


The gunman fired at the four firefighters when they arrived shortly after 5:30 a.m. at the blaze in Webster, a suburb of Rochester, town Police Chief Gerald Pickering said. The first police officer who arrived chased the suspect and exchanged gunfire.


He lay in wait outdoors for the firefighters' arrival, then opened fire probably with a rifle and from atop an earthen berm, Pickering said.


"It does appear it was a trap," he said.


The gunman, William Spengler, had served more than 17 years in prison for beating his 92-year-old grandmother to death with a hammer in 1980 at the house next to where Monday's attack happened, Pickering said at afternoon news conference. Spengler, 62, was paroled in 1998 and had led a quiet life since, authorities said. Convicted felons are not allowed to possess weapons.


Two firefighters, one of whom was also a town police lieutenant, died at the scene, and two others were hospitalized. An off-duty officer who was passing by was also injured.


Another police officer, the one who exchanged gunfire with Spengler, "in all likelihood saved many lives," Pickering said.


Emergency radio communications capture someone saying he "could see the muzzle flash coming at me" as Spengler carried out his ambush. The audio posted on the website RadioReference.com has someone reporting "firefighters are down" and saying "got to be rifle or shotgun — high powered ... semi or fully auto."


Spengler lived in the house with his sister and mother, Arline, who died in October. He had originally been charged with second-degree murder in connection with grandmother Rose Spengler's death but pleaded guilty to a reduced charge of manslaughter.


The West Webster Fire District learned of the fire early Monday after a report of a car and house on fire on Lake Road, on a narrow peninsula where Irondequoit Bay meets Lake Ontario, Monroe County Sheriff Patrick O'Flynn said.


The fire appeared from a distance as a pulsating ball of flame glowing against the early morning sky, flames licking into treetops and reflecting on the water, with huge bursts of smoke billowing away in a brisk wind.


Two of the firefighters arrived on a fire engine and two in their own vehicles, Pickering said. After Spengler fired, one of the wounded men managed to flee, but the other three couldn't because of flying gunfire.


A police armored vehicle was used to recover two men, and eventually it evacuated 33 people from nearby homes, the police chief said. The gunfire initially kept firefighters from battling the blazes.


The dead men were identified as Police Lt. Michael Chiapperini, 43, the Webster Police Department's public information officer; and Tomasz Kaczowka, also a 911 dispatcher, whose age was not released.


Pickering described Chiapperini as a "lifetime firefighter" with nearly 20 years in the department, and called Kaczowka a "tremendous young man."


The two wounded firefighters, Joseph Hofstetter and Theodore Scardino, were in guarded condition in the intensive care unit at Strong Memorial Hospital, authorities said. Both were awake and alert and are expected to recover.


Hofstetter, also a full-timer with the Rochester Fire Department, was hit once in the pelvis, and the bullet lodged in his spine, authorities said. Scardino was hit in the chest and knee.


At West Webster Fire Station 1, there were at least 20 bouquets on a bench in front and a bouquet of roses with three gold-and-white ribbons saying, "May they rest in peace," ''In the line of duty" and "In memory of our fallen brothers."





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