Showing posts with label World. Show all posts
Showing posts with label World. Show all posts

Wall Street edges off five-year high, awaits earnings

NEW YORK (Reuters) - Stocks lost ground on Monday, as investors drew back from recent gains that lifted the S&P 500 to a five-year high, in anticipation of sluggish growth in corporate profits.


Shares of financial companies dipped after a group of major U.S. banks agreed to pay a total of $8.5 billion to end a government inquiry into faulty mortgage foreclosures. The KBW bank index <.bkx>, a gauge of U.S. bank stocks, was down 0.3 percent.


Other sectors were hit as well, most notably energy and utilities. The S&P 500 energy sector index <.gspe> fell 0.8 percent and the utilities sector <.gspu> was off 1.1 percent.


The day's decline came a session after the S&P 500 finished at a five-year high, boosted by a budget deal and strong economic data. The S&P 500 rose 4.6 percent last week, the best weekly gain in more than a year.


"It's a little bit of taking some risk off the table ahead of profit season, you're not going to see anything all that great" on earnings, said Larry Peruzzi, senior equity trader at Cabrera Capital Markets Inc in Boston.


Earnings are expected to be only slightly better than the third-quarter's lackluster results, and analysts' current estimates are down sharply from where they were in October. Fourth-quarter earnings growth is expected to come in at 2.8 percent, according to Thomson Reuters data.


Aluminum company Alcoa Inc begins the reporting season by announcing its results after Tuesday's market close. Alcoa shares fell 1.7 percent at $9.10.


The Dow Jones industrial average <.dji> dropped 50.92 points, or 0.38 percent, to 13,384.29. The Standard & Poor's 500 Index <.spx> fell 4.58 points, or 0.31 percent, to 1,461.89. The Nasdaq Composite Index <.ixic> lost 2.84 points, or 0.09 percent, to 3,098.81.


Ten mortgage servicers - including Bank of America , Citigroup , JPMorgan , and Wells Fargo - agreed on Monday to pay $8.5 billion to end a case-by-case review of foreclosures required by U.S. regulators.


In a separate case, Bank of America also announced roughly $11.6 billion of settlements with mortgage finance company Fannie Mae and a $1.8 billion sale of collection rights on home loans.


The bank also entered into agreements with Nationstar Mortgage Holdings and Walter Investment Management to sell about $306 billion of residential mortgage servicing rights.


Bank of America shares lost 0.2 percent at $12.09 while Nationstar Mortgage Holdings jumped 16.8 percent to $38.83.


Citigroup shares were up 0.09 percent to $42.47, and Wells Fargo shares fell 0.5 percent to $34.77.


"The financials probably have the wind behind them now with a lot of the regulations coming out ... the market has to absorb a lot of the gains, and for that reason there's a pullback from this level," said Warren West, principal at Greentree Brokerage Services in Philadelphia.


Shares of U.S. jet maker Boeing Co dropped 2 percent after a Boeing 787 Dreamliner aircraft with no passengers on board caught fire at Boston's Logan International Airport on Monday morning.


Amazon.com shares hit their highest price ever at $269.22 after Morgan Stanley raised is rating on the stock. Shares were up 3.6 percent at $268.46.


Video-streaming service Netflix Inc shares gained 3.4 percent to $99.20 after it said it will carry previous seasons of some popular shows produced by Time Warner's Warner Bros Television.


Walt Disney Co stock fell 2.3 percent to $50.97. The company started an internal cost-cutting review several weeks ago that may include layoffs at its studio and other units, three people with knowledge of the effort told Reuters.


Volume was lower than average, as 4.78 billion shares were traded on the New York Stock Exchange, NYSE MKT and Nasdaq. This is well below the 2012 average of 6.42 billion per session.


Declining stocks outnumbered advancing ones on the NYSE by 1,629 to 1,363, while on the Nasdaq decliners beat advancers 1,438 to 1,066.


(Reporting By Gabriel Debenedetti; Editing by Kenneth Barry and Nick Zieminski)



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Earth’s Forecast Looks Warm and Full of Volcano Eruptions






Discovered: Global warming could cause more lava flow; humans started popping pills ages ago; babies begin acquiring language in womb; Mars astronauts would be very sleepy.


RELATED: Gay Marriage, Beach Volleyball, and Disney






Cloudy with a chance of lava. We know about the rising sea levels and increased incidence of superstorms associated with global warming. But here’s another nasty side-effect of unrestrained climate change: more volcano eruptions. A new study from Germany’s GEOMAR Helmholtz Center for Ocean Research Kiel finds that global warming could exacerbate Earth‘s igneous activity. By sifting through layers of volcanic ash at the bottom of Central American seabeds, the scientists reconstructed the timeline of eruptions stretching back over 460,000 years. “In times of global warming, the glaciers are melting on the continents relatively quickly,” says GEOMAR geophysicist Marion Jegen. “At the same time, the sea level rises. The weight on the continents decreases, while the weight on the oceanic tectonic plates increases. Thus, the stress changes within the Earth to open more routes for ascending magma.” [Scientific American]


RELATED: Earth Could Be 11 Degrees Warmer by 2100; Never-Before-Seen Whales Wash Ashore


Ancient pills treated sore eyes. Lest we think that self-medicating is something thoroughly modern, University of Pisa researchers have found that humans were popping pills as early as 140 BC. The place: ancient Rome. The affliction: sore eyes. The remedy: zinc carbonates hydrozincite and smithsonite, the same materials used in 21st century skin and eye treatments. “To our knowledge, these are the oldest medical tablets ever analysed,” says lead researcher Erika Ribechini about the sampling of pills found on a wrecked cargo ship off the coast of Italy. “Findings of such ancient medicines are extremely rare, so preservation of the Pozzino tablets is a very lucky case.” [New Scientist]


RELATED: Should Marijuana Dealers Unionize?


Language acquisition begins in the womb. Researchers have noticed that babies respond with familiarity to their parents’ native tongues from the moment they’re born, but seem to perceive other languages as unfamiliar. Pacific Lutheran University psychologist Christine Moon says that this suggests language acquisition begins while babies are still gestating. “It seems that there is some prenatal learning of speech sounds, but we do not yet know how much,” Moon says. She and her colleagues reached this conclusion by studying 80 newborns, half in the United States and the other 40 in Sweden. They piped vowels associated with each country’s respective language through headphones, observing how long the babies would suck their pacifiers (when they stopped, a new syllable would be triggered). They observed longer stretches of pacifier sucking when babies heard foreign syllables, suggesting that they were more interested in these strange sounds and more familiar with their native syllables. [Science News]


RELATED: Science Has a New Drug to Erase Your Painful Memories


A trip to Mars would make astronauts very sleepy. Inspring as a manned trip to Mars would surely be, astronaut walking on the red planet might not be as spunky as the Apollo crew that hopped so energetically around the moon. Simulations done by the Mars500 team in Moscow suggest that astronauts undertaking the trip from Earth to Mars would get sleepy and sedentary during the long journey. Six volunteers between the ages of 27 to 38 who participated in Mars500 committed to a 520 mission simulation. At the end of the study, they tended to sleep more and favor leisure activities like playing video games or reading books. Commenting on these findings, Gloria Leon of the University of Minnesota says, “What they’re showing is that NASA and other organizations need to pay close attention to developing some measures that will prevent hypokinesis.”  [Science Now]


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Asian shares slip, Basel ruling supports banks

SINGAPORE (Reuters) - Asian stocks drifted down on Monday as investors booked profits from a New Year rally that had pushed markets to multi-month highs, although financial stocks gained after global regulators decided to relax draft plans for tough new bank liquidity rules.


Commodity prices mostly held steady, supported by data showing the U.S. economy continuing on a path of slow but steady recovery that propelled Wall Street stocks to a five-year high.


Financial bookmakers called Europe's main share indexes to open flat or slightly lower, while S&P 500 index futures traded in Asia eased 0.2 percent, pointing to a weaker start in New York.


"It just seems like markets are entering a consolidation phase after recent gains and with most markets trading at fresh 12-month highs," said Stan Shamu, market strategist at financial spreadbetting firm IG in Melbourne.


The dollar fell against the yen, coming off a two-and-a-half year peak it had logged against the Japanese currency as investors adjusted to the possibility of more monetary stimulus in 2013 from the Bank of Japan and less from the U.S. Federal Reserve.


MSCI's broadest index of Asia Pacific shares outside Japan <.miapj0000pus>, which had reached its highest level since August 2011 on Thursday, eased 0.1 percent, while Tokyo's Nikkei share average <.n225> retreated after touching a 23-month high in early trade to close down 0.8 percent. <.t/>


CASH BUFFERS


The MSCI benchmark's financial sector sub-index <.miapjfn00pus> firmed after the Basel Committee of banking supervisors agreed on Sunday to give banks four more years and greater flexibility to build up cash buffers so they can use some of their reserves to help struggling economies.


HSBC Holdings Hong Kong shares rose 1 percent, while Australia and New Zealand Banking Group Ltd gained 0.6 percent. <.hk><.ax/>


Shares in Japanese exporters were supported by the trend of a weakening yen, which traded around 87.85 to the dollar, up 0.3 percent on the day, after the U.S. currency rose as far as 88.40 yen, its highest in nearly two-and-a-half years, on Friday.


The dollar posted a gain of around 2.7 percent against the yen last week, its biggest weekly rise in more than a year. Its gains had accelerated after minutes from the Federal Reserve's December meeting showed some policymakers had considered ending the Fed's bond-buying program as early as this year.


By contrast, many investors are now betting that Japan's new government, led by Prime Minister Shinzo Abe, will push to weaken the yen and drive through aggressive fiscal stimulus, and pressure the Bank of Japan to do the same on the monetary side.


Although the dollar may pull back against the yen given the speed of its rise over the past month, its uptrend seems likely to remain intact, said Hiroshi Maeba, head of FX trading Japan for UBS in Tokyo.


"My sense is that the market could still head much higher," Maeba said. "I think 90 yen might be reached pretty soon."


The dollar firmed against the euro, which traded around $1.3035.


The U.S. stock benchmark S&P 500 index <.spx> closed at its highest level since December 2007 on Friday after data showed a steady pace of jobs growth and brisk expansion of the services sector in the world's biggest economy.


That offered support to growth-sensitive commodities, with copper little changed just below $8,100 a tonne, while Brent crude oil eased a little to around $111.20.


Spot gold firmed 0.3 percent to around $1,660 an ounce.


(Additional reporting by Masayuki Kitano; Editing by Eric Meijer)



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Fussy Infants Exposed to More TV






Although doctors say babies should not watch television, some mothers may use the tube as a way to calm fussy infants, a new study suggests.


The results show that infants who were perceived as more active — for example, they squirmed a lot — or fussier by their mothers were exposed to more TV each day compared with infants who were seen as less active or less fussy.






Infants were especially likely to watch more TV if their mothers were obese or did not graduate from high school. Both factors are associated with more TV viewing.


Previous studies have found that infants with tempers are at greater risk for obesity later in childhood, and the new study offers a possible reason why. “Mothers use the TV to soothe and/or entertain them,” the researchers wrote in the Jan. 7 issue of the journal Pediatrics.


Excess TV viewing early in life is a concern because the habit has been linked to weight problems and developmental delays in preschool kids, the researchers said. In addition, the TV viewing habits of young children appear to continue into later childhood and the teen years.


The study included only low-income black mothers, and their infants watched more TV on average than infants enrolled in previous studies, so the results may not be true of the population as a whole, the researchers said.


The findings suggest that one way to reduce TV exposure early in life is to give parents alternative strategies to help them calm fussy infants, said the researchers, from the University of North Carolina at Chapel Hill.


The American Academy of Pediatrics discourages TV watching in children younger than 2, citing evidence that it does not provide an educational benefit, and may have adverse health effects.


The new study included 217 black mothers and their infants living in North Carolina. The mothers were visited in their homes when their children were 3 months old, and both the moms and babies were followed until the children were 18 months of age.


Mothers were asked how many hours their child spent in front of the TV when it was turned on. They also answered a questionnaire  that gauged each baby’s level of fussiness, activity level and duration of crying.


Infants as young as 3 months watched an average of 2.6 hours of TV a day. By age 1, nearly 40 percent of the babies were watching more than three hours of television a day, the researchers said.


Three-month-olds who watched more than three hours of TV daily had higher fussiness scores compared with those who watched less than one hour a day.


Among fussy infants with obese mothers, 37 percent watched more than three hours of TV a day, compared with 19 percent of infants who weren’t as fussy and had normal weight mothers.


It’s important to note the study only found an association between TV viewing and fussiness. Because many infants in the study were already watching more than two hours of TV at age 3 months, more research is needed to tease out whether parents really do use TV to calm fussy infants, or whether infants fuss because they watch too much TV, the researchers said. 


Pass it on:Fussy infants may be at an increased risk for watching too much TV.


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"Cliff" concerns give way to earnings focus

NEW YORK (Reuters) - Investors' "fiscal cliff" worries are likely to give way to more fundamental concerns, like earnings, as fourth-quarter reports get under way next week.


Financial results, which begin after the market closes on Tuesday with aluminum company Alcoa , are expected to be only slightly better than the third-quarter's lackluster results. As a warning sign, analyst current estimates are down sharply from what they were in October.


That could set stocks up for more volatility following a week of sharp gains that put the Standard & Poor's 500 index <.spx> on Friday at the highest close since December 31, 2007. The index also registered its biggest weekly percentage gain in more than a year.


Based on a Reuters analysis, Europe ranks among the chief concerns cited by companies that warned on fourth-quarter results. Uncertainty about the region and its weak economic outlook were cited by more than half of the 25 largest S&P 500 companies that issued warnings.


In the most recent earnings conference calls, macroeconomic worries were cited by 10 companies while the U.S. "fiscal cliff" was cited by at least nine as reasons for their earnings warnings.


"The number of things that could go wrong isn't so high, but the magnitude of how wrong they could go is what's worrisome," said Kurt Winters, senior portfolio manager for Whitebox Mutual Funds in Minneapolis.


Negative-to-positive guidance by S&P 500 companies for the fourth quarter was 3.6 to 1, the second worst since the third quarter of 2001, according to Thomson Reuters data.


U.S. lawmakers narrowly averted the "fiscal cliff" by coming to a last-minute agreement on a bill to avoid steep tax hikes this weeks -- driving the rally in stocks -- but the battle over further spending cuts is expected to resume in two months.


Investors also have seen a revival of worries about Europe's sovereign debt problems, with Moody's in November downgrading France's credit rating and debt crises looming for Spain and other countries.


"You have a recession in Europe as a base case. Europe is still the biggest trading partner with a lot of U.S. companies, and it's still a big chunk of global capital spending," said Adam Parker, chief U.S. equity strategist at Morgan Stanley in New York.


Among companies citing worries about Europe was eBay , whose chief financial officer, Bob Swan, spoke of "macro pressures from Europe" in the company's October earnings conference call.


REVENUE WORRIES


One of the biggest worries voiced about earnings has been whether companies will be able to continue to boost profit growth despite relatively weak revenue growth.


S&P 500 revenue fell 0.8 percent in the third quarter for the first decline since the third quarter of 2009, Thomson Reuters data showed. Earnings growth for the quarter was a paltry 0.1 percent after briefly dipping into negative territory.


On top of that, just 40 percent of S&P 500 companies beat revenue expectations in the third quarter, while 64.2 percent beat earnings estimates, the Thomson Reuters data showed.


For the fourth quarter, estimates are slightly better but are well off estimates for the quarter from just a few months earlier. S&P 500 earnings are expected to have risen 2.8 percent while revenue is expected to have gone up 1.9 percent.


Back in October, earnings growth for the fourth quarter was forecast up 9.9 percent.


In spite of the cautious outlooks, some analysts still see a good chance for earnings beats this reporting period.


"The thinking is you need top line growth for earnings to continue to expand, and we've seen the market defy that," said Mike Jackson, founder of Denver-based investment firm T3 Equity Labs.


Based on his analysis, energy, industrials and consumer discretionary are the S&P sectors most likely to beat earnings expectations in the upcoming season, while consumer staples, materials and utilities are the least likely to beat, Jackson said.


Sounding a positive note on Friday, drugmaker Eli Lilly and Co said it expects profit in 2013 to increase by more than Wall Street had been forecasting, primarily due to cost controls and improved productivity.


(Reporting By Caroline Valetkevitch; Editing by Kenneth Barry)



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Here, Bella! Top Pet Names for 2012






Move over, Rover, there’s a new top dog in town, and her name is Bella. For 2012, the “Twilight Saga”-inspired moniker was the most popular for dogs and second-most popular for cats, according to a survey by one veterinary organization. For dogs, Max took second place.


The survey gathered names of 2.5 million dogs and cats at the Banfield Pet Hospital, a veterinary network in Portland, Ore.






The top names resemble those from years past, said Laura Wattenberg, a baby-name expert and the creator of babynamewizard.com


“Max in particular has been the top name for male dogs for a number of years now,” Wattenberg told LiveScience. 


Cuddly fur babies


In general, pets have been given much more humanlike names over the past generation, Wattenberg said. That reflects a change in society, in which owners see their fur babies more as family members than animals, she said. [What Your Dog's Breed Says About You]


The names people choose for their pets also reflect a sweet, nostalgic innocence.


“There’s a particular slice of human names that have risen for baby names as well, but they’re particularly popular for pets. That’s the cute, cuddly names of the early 20th century.”


These names, such as Max and Lucy, tend to crop up frequently as heroes or heroines in kids’ picture books, Wattenberg said. For instance, the hero in “Where the Wild Things Are” was named Max. These names may reflect how people see their pets.


“They’re like children who never have to grow up,” she said.


Old and new


Pop-culture trends also influenced the popularity of pet names found in the survey. Aside from the top-ranked Bella, Katniss also saw wide use, becoming 18 times more popular for dogs and 14 times more popular for cats, compared with 2011, following the release of the “Hunger Games” in March.  Reality TV stars also got their due, with Honey Boo Boo (a 6-year-old beauty pageant star of “Here Comes Honey Boo Boo“) and Purrfect (the name of Cee Lo Green’s cat on “The Voice”) rising in the ranks.


Still, for dog and cat names alike, familiar can still win out over hip. Perennial favorites like Max and Buddy took the second and third slots for dogs, while the perhaps unimaginative Kitty was the most popular name for cats.


Cats vs. dogs


Interestingly, more humanlike names, such as Charlie or Lucy, were popular for dogs, while unisex monikers like Smokey, Shadow and Tigger describing physical traits like color ranked high for felines in 2012.


That may reflect how much people project a human role onto their pets. For instance, one study showed that animals kept in the house are more likely to get human names, Wattenberg said.


“You could infer from this that people feel a little bit more attached or feel like they have a more personal relationship with their dogs,” she said. “Obviously cat lovers will howl at that, but that’s what the names say.”


In general, pet names overlapped very little with baby names. While the trend toward nostalgic, 20th century names carried over from baby naming trends, formal names ruled for human tots. But cuddly, affectionate nicknames took precedence for pets. From the list of pet names, only Chloe made the list of most popular girl names in 2011.


For instance, pet names like Coco or Rocky are more intensely retro than Ava or Jacob (which are more likely to be given to babies). That suggests, as a society, “we’re more willing to push the style to the extreme with pets and maybe even live out the naming fantasies that we wouldn’t quite be able to give to our children,” Wattenberg said.


Here are the top ten names for dogs and cats in order of more to less popular:


Top Dog Names:


  1. Bella

  2. Max

  3. Buddy

  4. Daisy

  5. Bailey

  6. Coco

  7. Lucy

  8. Charlie

  9. Molly

  10. Rocky

Top Cat Names:


  1. Kitty

  2. Bella

  3. Tiger

  4. Max

  5. Smokey

  6. Shadow

  7. Tigger

  8. Lucy

  9. Chloe

  10. Charlie

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


Copyright 2013 LiveScience, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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S&P 500 finishes at 5-year high on economic data

NEW YORK (Reuters) - The benchmark Standard & Poor's 500 index ended at a five-year high on Friday, lifted by reports showing employers kept up a steady pace of hiring workers and the vast services sector expanded at a brisk rate.


The gains on the S&P 500 pushed the index to its highest close since December 2007 and its biggest weekly gain since December 2011.


Most of the gains came early in the holiday-shortened week, including the largest one-day rise for the index in more than a year on Wednesday after politicians struck a deal to avert the "fiscal cliff."


The Dow Jones industrial average <.dji> gained 43.85 points, or 0.33 percent, to 13,435.21. The Standard & Poor's 500 Index <.spx> rose 7.10 points, or 0.49 percent, to 1,466.47. The Nasdaq Composite Index <.ixic> edged up 1.09 points, or 0.04 percent, to 3,101.66.


For the week, the S&P gained 4.6 percent, the Dow rose 3.8 percent and the Nasdaq jumped 4.8 percent to post their largest weekly percentage gains in more than a year.


The CBOE Volatility index <.vix>, a measure of investor anxiety, dropped for a fourth straight session, giving the index a weekly decline of nearly 40 percent, its biggest weekly fall ever. The close of 13.83 on the VIX marks its lowest level since August.


In Friday's economic reports, the Labor Department said non-farm payrolls grew by 155,000 jobs last month, slightly below November's level. Gains were distributed broadly throughout the economy, from manufacturing and construction to healthcare.


Also serving to boost equities was data from the Institute for Supply Management showing U.S. service sector activity expanding the most in 10 months.


With the S&P 500 index at a five-year closing high, analysts said any gains above the index's intraday high near 1,475 in September may be harder to come by.


"We are getting to a point where we need a strong catalyst, which could be earnings, it could be three months of good economic data, it could be a variety of things," said Adam Thurgood, managing director at HighTower Advisors in Las Vegas, Nevada.


"What is going on right now is this conflicting view of fundamentals look pretty good and improving, and then you've got these negative tail risks that could blow everything up," Thurgood said.


He referred to "a fiscal superstorm brewing" of issues still left unresolved in Washington, including tough federal budget cuts and the need to raise the government's debt ceiling all within a couple of months.


The rise in payrolls shown by the jobs data did not make a dent in the U.S. unemployment rate still at 7.8 percent.


A Reuters poll on Friday of economists at Wall Street's top financial institutions showed that most expect the Fed in 2013 to end the program with which it bought Treasury debt in an effort to stimulate the economy.


A drop in Apple Inc shares of 2.6 percent to $528.36 kept pressure on the Nasdaq.


Adding to concerns about Apple's ability to produce more innovative products, rival Samsung Electronics Co Ltd is expected to widen its lead over Apple in global smartphone sales this year with growth of 35 percent. Market researcher Strategy Analytics said Samsung had a broad product lineup.


Eli Lilly and Co was among the biggest boost's to the S&P, up 3.7 percent to $51.56 after the pharmaceuticals maker said it expects its 2013 earnings to increase to $3.75 to $3.90 per share, excluding items, from $3.30 to $3.40 per share in 2012.


Fellow drugmaker Johnson & Johnson rose 1.2 percent to $71.55 after Deutsche Bank upgraded the Dow component to a "Buy" from a "Hold" rating. The NYSEArca pharmaceutical index <.drg> climbed 0.6 percent.


Shares of Mosaic Co gained 3.3 percent to $58.62. Excluding items, the fertilizer producer's quarterly earnings beat analysts' expectations, according to Thomson Reuters I/B/E/S.


Volume was modest with about 6.07 billion shares traded on the New York Stock Exchange, NYSE MKT and Nasdaq, slightly below the 2012 daily average of 6.42 billion.


Advancing stocks outnumbered declining ones on the NYSE by 2,287 to 701, while on the Nasdaq, advancers beat decliners 1,599 to 866.


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



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Appeals court faults EPA for soot regulation






WASHINGTON (AP) — An appeals court is siding with environmental groups that had challenged Environmental Protection Agency regulations on soot as too weak.


The three-judge panel ruled Friday that the EPA regulated soot of a certain size under weaker cleanup requirements than it should have.






The environmental groups, including the Natural Resources Defense Council, had challenged two rules dating back to the George W. Bush administration. The court sent the rules back to the EPA with instructions to strengthen them.


Soot, or fine particulate matter, is microscopic pollution released from smokestacks, diesel trucks and other sources. Breathing it can cause lung and heart problems, contributing to heart attacks, strokes and asthma attacks.


Two of the three judges were appointed by Republican presidents, the third by a Democrat.


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Asian shares drop on Fed minutes, dollar extends gains

TOKYO (Reuters) - Asian shares fell on Friday, as investors booked profits from a recent sharp climb after senior Federal Reserve officials expressed concerns about continuing to expand stimulative bond buying, but the dollar extended gains as U.S. debt yields rose.


European shares were seen tracking Asian peers lower, with financial spreadbetters predicting London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> would open down as much as 0.3 percent. A 0.1 percent drop in U.S. stock futures suggested a soft Wall Street start. <.l><.eu><.n/>


Minutes from the Fed's December policy meeting released on Thursday showed concerns among some members of the Federal Open Markets Committee about the potential risks of the Fed's asset purchases on financial markets, even if it looked set to continue an open-ended stimulus program for now.


The Fed's asset-buying policy has been pivotal in underpinning investor risk appetite, so the more hawkish Fed minutes unnerved financial markets.


Benchmark U.S. Treasury yields continued their climb, hitting an eight-month high around 1.93 percent in Asia on Friday, while key 10-year Japanese government bond yields touched a 3-1/2-month high of 0.83 percent.


The dollar also rose on data showing U.S. private-sector hiring improved in December, raising hopes for a strong monthly payrolls report due later in the day, a key gauge to the U.S. economy and the Fed's future policy course.


The dollar's rise makes dollar-based assets more expensive for non-dollar investors, hitting precious metals and oil.


The Fed's minutes spurred consolidation from broad-based buying which took place after U.S. lawmakers earlier this week narrowly avoided falling off the "fiscal cliff" of automatic taxes rises and spending cuts, which risked derailing the economy.


"Market moves largely reflect positioning after the recent rallies and before the nonfarm payrolls, which could tip the markets either way," said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo, adding that markets may be dictated by interest rates this year, rather than risk-on, risk-off sentiment as was last year.


MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> slid 0.7 percent, after scaling its highest since August 2011 on Thursday. But the pan-Asian index was set to end the first week of 2013 up 1.8 percent, thanks to the New Year's rally.


"After the big relief rally we had on the fiscal cliff decision and compromise, I would expect the market to consolidate a little bit," Martin Lakos division director at Macquarie Private Wealth, said of Australian shares <.axjo> which slipped 0.4 percent, retreating from Thursday's 19-month highs. Hong Kong shares <.hsi> eased from a 19-month highs, falling 0.6 percent, but Shanghai <.ssec> rose 0.5 percent.


The dollar hit its highest since July 2010 against the yen at 87.835 while the euro fell to a three-week low of $1.3019. The U.S. dollar <.dxy> also touched a six-week high against a basket of major currencies on Friday.


"Dollar-positive momentum is solid as the fiscal cliff was averted, the overnight data was good and yields were rising. I won't be surprised to see the dollar rise to 90 yen soon," said Hiroshi Maeba, head of FX trading Japan for UBS in Tokyo.


"Despite repeated Japanese intervention, the dollar had refused to strengthen in the past, but now, it's advancing without any action, suggesting the direction has completely changed to support continued dollar buying," Maeba said.


The yen's tumble pushed Japan's benchmark Nikkei stock average <.n225> briefly up more than 3 percent to its highest since March 2011, outshining the Asian regional bourses. The Nikkei closed up 2.8 percent. <.t/>



ADP vs US gov't jobs data: http://link.reuters.com/fex44t


Global services activity: http://link.reuters.com/dyh85s


Video on fiscal cliff: http://link.reuters.com/zaf94t


SE Asia valuations: http://link.reuters.com/cuj64t


^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>


FISCAL CLIFF VS DATA


U.S. President Barack Obama and congressional Republicans face tough talks on spending cuts and an increase in the nation's debt limit as the hard-fought fiscal deal delayed decisions on expenditures until March 1.


Investor sentiment was supported by recent solid data from the world's two largest economies, the United States and China.


China's services sector saw its slowest rate of expansion in nearly a year and a half in December, a private sector survey showed on Friday, but underlying growth revival remained intact, even if it were modest.


"We are coming off overbought levels today. This cyclical-led rally in offshore Chinese shares should continue in the next few weeks, China's improving economic data will help," said Wang Ao-chao, UOB-Kay Hian's Shanghai-based head of China research.


The U.S. economy likely added 150,000 jobs in December, according to a Reuters survey, up from 146,000 in November. The unemployment rate is expected to hold steady at 7.7 percent.


Resolution of the U.S. fiscal cliff crisis could weigh on some Asian assets as investors could start to shift some money out of overpriced Asian investments in favor of the U.S. on brightening prospects for American stocks.


U.S. crude fell 0.7 percent to $92.26 a barrel while Brent shed 0.6 percent to $111.47.


Spot gold fell 1 percent to around $1,645, dragging silver down more than 2 percent to $29.48.


Despite the decline in equities markets, sentiment in Asian credit markets remained upbeat, with the spread on the iTraxx Asia ex-Japan investment-grade index narrowing by two basis points.


(Additional reporting by Maggie Lu Yueyang in Sydney and Clement Tan in Hong Kong; Editing by Eric Meijer)



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Why Women Gain Weight After Menopause






Many women find they pack on the pounds more easily than men do as they get older, and a new study on mice may help explain why.


After menopause, the activity of a particular enzyme involved in fat production —called Aldh1a1 — increases, the researchers said.






The enzyme is found in mice as well as people. During the study, female mice that ate a high-fat diet had more Aldh1a1 activity and made and stored more visceral fat (fat around the abdomen) than did male mice who ate a high-fat diet.


By contrast, female mice remained lean on a high-fat diet if they had been genetically engineered to lack the enzyme.


The female hormone estrogen appears to suppress Aldh1a1 activity. This might mean that younger women, who have high levels of estrogen, are protected against the enzyme’s undesirable effects. But after menopause, levels of estrogen decrease, causing Aldh1a1 activity to increase and making females vulnerable to weight gain.


By targeting Aldh1a1, researchers may be able to develop an obesity treatment specifically for women, said study researcher Ouliana Ziouzenkova, an assistant professor of human nutrition at Ohio State University.


However, such a treatment is unlikely in the near future. Because the study was conducted using mice, researchers first would have to show that the findings apply to people as well. Also, Aldh1a1 is important for other functions in the body besides fat formation, so researchers would not be able to create a therapy that eliminates the enzyme completely, Ziouzenkova said.


The study is published in the January issue of the journal Diabetes.


Pass it on: Anincrease in the activity of a particular enzyme after menopause may make older women more vulnerable to weight gain.


Follow Rachael Rettner on Twitter @RachaelRettneror MyHealthNewsDaily @MyHealth_MHND. We’re also on Facebook & Google+.


Copyright 2013 MyHealthNewsDaily, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Asia stocks eke out gains on China hopes, oil eases

HONG KONG (Reuters) - Most Asian stock markets edged higher on Thursday on hopes of a steady economic revival in China, although oil gave back part of the previous session's strong gains as investors took some money off the table and braced for more U.S. budget battles.


The MSCI Asia Pacific ex-Japan index of stocks <.miapj0000pus> rose 0.2 percent following Wednesday's 2 percent jump on relief that U.S. politicians had averted the "fiscal cliff".


Data from China showing the services sector expanded in December continued to underpin expectations of an economic recovery that has helped spur a strong rally in Hong Kong-listed Chinese shares <.hsce> over the past month.


The China Enterprises index <.hsce> which rallied more than 4 percent in the previous session eased 0.2 percent. Onshore Chinese markets will resume trading on Friday.


"China looks like it's improving at the margin and the market has momentum that could last for at least a few months," said Christian Keilland, head of trading at BTIG in Hong Kong.


"Investors seem to have accepted that reforms are underway but they're going to happen at a slower pace."


Australian stocks <.axjo> rose 0.7 percent to their highest in more than 19 months, with mining giants Rio Tinto up 2.4 percent and BHP Billiton up 0.8 percent, among the top gainers on the benchmark S&P ASX/200 index. <.axjo/>


South Korea's Kospi <.ks11> underperformed the region, falling 0.4 percent as automakers and other exporters slumped on a stronger Korean won, which hit a 16-month high against the dollar overnight.


In other currency markets, the Japanese yen bounced after hitting a 29-month low versus the dollar earlier in the day but analysts warned that any strength is likely to be short-lived.


"Technically dollar/yen looks somewhat overbought here. It's gone a long way in a very short time," said Callum Henderson, global head of FX research for Standard Chartered Bank in Singapore, adding that the dollar could see some consolidation in the near term before heading higher.


The euro which in overnight trading was close to a 8-1/2 month high against the dollar, slipped 0.1 percent.


The U.S. dollar rose 0.2 percent <.dxy> against a basket of major currencies.


President Barack Obama and congressional Republicans face even bigger budget battles in the next two months after a hard-fought deal averted the fiscal cliff of automatic tightening that threatened to push the U.S. into recession.


Strength in the dollar and profit-taking pushed oil prices lower with Brent crude slipping 0.3 percent and U.S. crude futures down 19 cents to $92.93.


"After the initial excitement, reality sets in," said Victor Shum, oil consultant at IHS Purvin & Gertz. "There will be other negotiations and the deal is a compromise."


(Reporting by Vikram Subhedar; Editing by Kim Coghill and Eric Meijer)



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Mississippi River nears historic lows, shipping at risk






(Reuters) – The drought-drained Mississippi River will rise slightly later this week between St. Louis and Cairo, Illinois, but later continue its decline toward historic lows, according to a National Weather Service forecast.


Low water, due to the worst U.S. drought since 1956, has already impeded the flow of billions of dollars worth of grain, coal, fertilizer and other commodities between the central United States and shipping terminals at the Gulf of Mexico.






A further drop in river levels could halt commercial shipping traffic entirely by this weekend, the American Waterways Operators and the Waterways Council Inc said in a statement on Wednesday.


Last week, the council said the river along the Cairo-St. Louis stretch would be too low for navigation by January 7 but on Wednesday it said shipping may come to a halt between January 5 and 15.


A shutdown could affect more than 8,000 jobs, cost $ 54 million in wages and benefits, and halt the movement of 7.2 million tons of commodities valued at $ 2.8 billion, the two industry groups said.


The Army Corps of Engineers, which is spearheading a project to remove river-bottom rock that could impede shipping if the river becomes too shallow, remains optimistic that the nine-foot-deep channel, which most commercial vessels need, can be maintained.


Forecasts for warmer weather, which would limit river-choking ice from forming, and the potential for rain next week bolstered that outlook.


The Corps is removing the most threatening rock pinnacles near the Illinois towns of Grand Tower and Thebes first, hoping to deepen the shipping channel by about two feet by mid-January, just before the river was forecast to hit critically low levels.


“The Corps rock removal contractors are making excellent progress in removing the rock obstructions from the primary area of concern,” said Major General John Peabody, the Corps’ Mississippi Valley Division Commander.


“We believe we will deepen the channel ahead of the worst-case river stage scenario, and I remain confident that navigation will continue,” he said.


The Corps has also been dredging various soft-bottom sections of the river nearly round-the-clock for months to maintain a deep enough shipping channel. The vast majority of commercial vessels need a depth of at least nine feet so shippers are closely monitoring river gauges and forecasts.


The Mississippi River gauge at Thebes fell from a reading of 4.45 feet late last week to four feet late on Wednesday. It was forecast to rise to 4.2 feet on Friday morning before slipping to 3.2 feet by next Wednesday, the lowest level at Thebes since 1988 and the second lowest on record.


Gauge readings do not reflect the actual depth of the river at a certain location because the gauges are fixed and the river’s bottom is steadily changing with the current. But they do aid navigation as a shorter term reference point.


The Army Corps has said once the Thebes gauge reads 2 feet, boats with a nine-foot draft, or distance between the water’s surface and the lowest point of the vessel, would be at risk of hitting rock pinnacles there.


“We lose 9 feet of depth for the navigation at about 2 feet on the Thebes gauge,” said Army Corps spokesman Mike Petersen. “That’s when those rocks become an issue.”


(Reporting by Karl Plume in Chicago; Editing by Steve Orlofsky and Bob Burgdorfer)


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Asia stocks take off as U.S. fiscal cliff crisis ends

HONG KONG (Reuters) - Asian stocks rose nearly two percent to hit a five-month high and the dollar fell as both houses of Congress passed a bill to end the "fiscal cliff" crisis that threatened a U.S. recession and roiled world financial markets.


European markets were set to rally on the news, with spreadbetters expecting London's FTSE <.ftse> to rise about 1 percent and Frankfurt's DAX <.gdaxi> to open up 0.5 percent.


The Congress approved extending lower Bush-era tax rates to all but the nation's wealthiest households in a budget deal that stopped automatic implementation of $600 billion in spending cuts and tax increases.


The bill's passage in Congress allayed earlier concerns over complaints from a number of Republicans that spending cuts were still not adequately addressed.


The temporary reprieve that the deal offers the U.S. economy also sets up Wall Street for a strong start to trading which resumes later in the day.


Asian stock markets cheered the developments as a major risk for investors, namely a slump in the global economy, appeared to have receded for now.


"This is great news for global growth and explains why shares and other growth-related assets such as the Australian dollar are up strongly today," said Shane Oliver, strategist at AMP Capital.


Australian shares <.axjo> rose to a 19-month high while the Aussie dollar jumped to 1.4082.


The MSCI Asia Pacific ex-Japan index of stocks <.miapj0000pus> rose 1.9 percent. Chinese shares in Hong Kong <.hsce> jumped 3 percent as last month's rally spilled over into the new year with stocks closely linked to China's economy such as steel and cement posting the biggest gains.


In South Korea, where data showed manufacturing activity rose for the first time in seven months in December, the KOSPI index <.ks11> was up 1.6 percent led by a 3.6 percent jump in smartphone giant Samsung Electronics .


"The index is riding high on the U.S. fiscal deal. This upward momentum will last a couple of weeks, after which there will be a reality check due to the unresolved issue of the spending cuts and debt ceiling," said Cho Tae-hoon, an analyst at Samsung Securities.


Singapore <.ftsti> was the best-performing market in South East Asia rising 1.2 percent after data showed the city-state dodged an expected economic recession in the last three months of 2012.


RISK ON


Asian stocks outside Japan rose nearly 20 percent last year as a combination of improving economic data from China, easing worries about a euro zone blow-up, and global central bank easing that encouraged investors back into equity markets.


Sakthi Siva, Asia strategist for Credit Suisse, said in a note to clients that 2013 could see similar returns for Asian equities, given a solution to the fiscal crisis.


"As we move into 2013 we retain our bullish bias, and our theme is whether markets could catch up with earnings," said Siva, adding that markets in China and India could offer the most upside given the mismatch between index levels and earnings expectations.


Risky assets across the board got a lift with crude oil futures up 1.1 percent and copper futures in London jumping 1.7 percent.


The euro rose to $1.3261 against the U.S. dollar.


The safe-haven U.S. dollar edged lower, falling 0.4 percent against a basket of major currencies <.dxy>.


The Japanese yen continued its slide as investors wagered the Bank of Japan would have to take ever-more aggressive easing steps to support the economy and satisfy the new government.


The yen fell to 87.17 against the dollar to its weakest level since July 2010.


The Japanese currency also dropped to depths not seen in more than four years against the Australian and New Zealand dollars.


(Additional reporting by Wayne Cole in SYDNEY, Masayuki Kitano in SINGAPORE and Somang Yang in SEOUL; Editing by Eric Meijer)



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Europe Tackling Big Space Projects in 2013






LONDON — The European Space Agency has some ambitious resolutions for the New Year. The year 2013 will include the agency’s first spaceflight for its newest class of astronauts, the launch of its latest robot cargo ship Albert Einstein, and the development of new rockets and spacecraft, including a reusable space plane and work on NASA’s new Orion spacecraft.


January and February should see agreements and contracts signed for the new rockets, Ariane 5 Mid-Life Evolution (ME) and Ariane 6, and for ESA’s participation in NASA’sOrion space capsule. ESA is providing the service module for the Orion capsule, which NASA plans to use to fly astronauts on future deep-space missions.  






With deadlines in 2014 for the rocket work, and 2017 for an unmanned Orion test flight, ESA officials know 2013 will see lots of activity right from the start.


“The Orion service module funding has been approved, so now the usual work process starts. I think [the NASA-ESA agreement signing] is in January. It should be rather early from what I’ve heard, it is something to be done towards the beginning of the year,” Franco Bonacina, spokesman for ESA’s director-general, Jean-Jacques Dordain, told SPACE.com. [Meet the European Space Agency (Video)]


Powerhouse for NASA’s Orion


ESA will provide one service module for Orion’s 2017 test launch. The module’s preliminary design review, or PDR, is planned for July 2013. The PDR is a major milestone for spaceflight projects, allowing managers to check a spacecraft’s design progress.


The ESA service module’s previous review, the system design review, occurred in September 2012, and the next major design review is not until 2015. The service module will provide propulsion, avionics, heat control and energy from solar arrays. It will also store water, oxygen and nitrogen for life support.


ESA’s Orion module is being delivered as an in-kind contribution for International Space Station (ISS) operations, for the period 2017 to 2020. The module is expected to cost ESA several hundred million dollars.


Europe’s new rockets


Before the Orion work shifts into gear, a pair of two-year studies is due to begin at the start of 2013 for the agency’s Ariane 5ME and Ariane 6 rockets. This is so ESA can make a decision about the future of its launchers in late 2014.


Operated by the company Arianespace, the workhorse Ariane 5 rocket launches ESA missions and commercial satellites. The rocket launches from the South American territory of French Guiana and is able to launch two spacecraft at a time. It first flew in 1997 and can launch up to 22,000 pounds (10,000 kilograms) into orbit.


The new Ariane 5 version, the Ariane 5ME, has already been in development for many years and it had been planned to be operational from 2016. It will be the same height, excluding the nose cone, and weight as its predecessor, but will be able launch an additional 2,540 pounds (1152 kg) of payload, with a maximum payload of 24,640 pounds (11,176 kg) for geostationary orbits.


The Ariane 5ME will use a new upper stage and rocket engine, the Vinci, and has a larger nose cone. If approved in 2014, the Ariane 5ME could be operational towards the end of this decade.


However, ESA has concluded that it needs a simpler rocket that can launch more frequently with only one payload onboard. This is the planned Ariane 6, which was originally called Next Generation Launcher (NGL).


The Ariane 6 rocket has been the subject of numerous studies that have evaluated NGL versions that either only have solid rocket motors or only liquid fuel engines. According to Bonacina, for Ariane 6, the two year studies will determine, “what shape and configuration it will have and what kind of money will be needed over what timeframe”. Neither Ariane 5ME nor Ariane 6 will launch astronauts.


A decision on Ariane 6 was supposed to take place in 2012, but disagreement between France and Germany, the largest ESA budget contributors, saw a compromise. France was in favor of Ariane 6, while Germany wanted Ariane 5ME to go ahead.


“It was a heavy compromise between Germany and France. They all had their interesting points of view and a solution has been found,” Bonacina said. “The good thing is that Ariane 6 has started and Ariane 5ME continues in parallel.”


In April of this year, ESA expects to hit two rocket milestones. They include second launch of its latest rocket, Vega, which uses solid rocket motors for its first, second and upper stages. The Vega rocket will launch the Earth observation satellite, Proba-V. The V in Proba-V stands for vegetation because the satellite will monitor the Earth’s plant life. [Europe’s Vega Rocket 1st Launch (Photos)]


Then in mid or late April, the latest version of the Ariane 5 — the Ariane 5 ES — is due make its next launch. The Ariane 5 ES has an upper stage whose engine can reignite. This allows it to launch ESA’s robotic Automated Transfer Vehicle cargo ships.


Europe’s ATV spacecraft deliver supplies to the International Space Station and propellant to raise the station’s orbit when needed. The ATV to be launched in April, called Albert Einstein, will be the fourth ESA’s five planned ATV missions to the space station.


Satellites galore


Europe’s other launches in the second half of 2013 include satellites for the European Union’s space-based navigation system, Galileo. The Galileo satellites will be launched by a Russian Soyuz 2 rocket from the Soyuz launch site in French Guiana.


Also launched in the latter half of 2013 by Soyuz rockets will be ESA’s Gaia mission and the Sentinel-1A satellite. The Gaia spacecraft will operate beyond the Moon, over 600,000 miles (965,606 kilometers) from Earth, and its goal is to create the largest and most precise three-dimensional map of the galaxy.


The Sentinel-1A is a polar orbit satellite that uses synthetic aperture radar. It is the first dedicated satellite for the Global Monitoring for Environment and Security constellation, a joint venture between ESA and the European Union. A constellation of two satellites, GMES’ Sentinel-1B is expected to launch in 2015.


An Ariane 5 will also launch Alphasat this year. This high bandwidth telecommunications satellite will provide commercial services and test various communications technologies including lasers.


Europe’s astronauts and robot arm


In May, a Russian Soyuz spacecraft will launch ESA’s Italian born astronaut Luca Parmitano from Baikonur Cosmodrome in Kazakhstan. Parmitano is launching on a six-month mission to the International Space Station and is slated to return to Earth in November.


Parmitano was selected to join ESA’s astronaut corps in May 2009 as one of six candidates. The five others hailed from France, Germany, Italy, Denmark and the United Kingdom. Of those, Parmitano is the first bound for the space station.


The 35-year old former Italian Air Force test pilot will be a flight engineer on the station crew. While Albert Einstein and Parmitano are headed to the orbiting laboratory in 2013, a new robotic arm for the orbiting laboratory will likely slip to 2014.


The station’s new European Robotic Arm, or ERA, will launch on a Proton rocket from Baikonur Cosmodrome, ESA’s ERA will be attached to Russia’s multipurpose laboratory module.


The robotic arm consists of two end-effectors, two wrists, two limbs and one elbow joint, together with electronics and cameras. Both end-effectors act as either a hand or the base from which it can operate. ERA will be used in the assembly and servicing of the Russian segment of the station, and its infrared cameras will allow it to carry out inspections of the station’s exterior.


The arm will also be able to transport astronauts, like a cherry picker crane, from one external location to another. This saves time and effort during spacewalk activities. ERA is also compatible with the new Russian airlock, so it can transfer small payloads between the station’s interior and the vacuum of space quickly. This will also reduce the crew’s space walk set-up time and allow ERA to work with astronauts outside the station.


Space plane under development


Like ERA, ESA’s space plane prototype, the Intermediate Experimental Vehicle (IXV), was to have been launched in 2013. It will now fly on ESA’s Vega rocket in 2014. The IXV vehicle is designed to test re-entry technologies during a suborbital flight launching from French Guiana and splashing down in the Pacific Ocean using parachutes.


ESA has now approved funds for IXV’s possible follow-on, Innovative Space Vehicle (ISV), under the Program for Reusable In-orbit Demonstrator in Europe.


The ISV would be Europe’s civilian equivalent of the U.S. Air Force’s unmanned X-37B Orbital Test Vehicle, a robotic miniature space shuttle that has flown on three missions since 2010. The unmanned European space plane would be much smaller than the Air Force vehicle, however.


Giorgio Tumino, IXV program manager told SPACE.com: “We did not get all what we asked, but enough to go ahead and keep the planning.”


Follow SPACE.com @Spacedotcom. We’re also on Facebook and Google+.


Copyright 2013 SPACE.com, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Senate vote likely on U.S. "fiscal cliff" deal


WASHINGTON (Reuters) - The White House and Senate leaders struck a bipartisan deal on Monday to try to avoid a "fiscal cliff" budget crisis, although the agreement was likely to face stiff challenges in the House of Representatives.


Senators were due to vote on the accord overnight and independent Senator Joe Lieberman said it had strong support from the Democrats who control the chamber.


The agreement came too late for Congress to meet its own deadline of New Year's Eve to pass laws halting $600 billion in tax hikes and spending cuts due to come into force on January 1.


But with Tuesday a holiday, Congress still had time to draw up legislation, approve it and backdate it to avoid the harsh fiscal measures coming into force.


That will need the backing of the House where many of the Republicans who control the chamber complain that President Barack Obama has shown little interest in cutting government spending to try to reduce the U.S. budget deficit.


House Republicans are also likely to balk at planned tax hikes on household incomes over $450,000 a year that was part of the agreement struck between Vice President Joe Biden and Senate Republican Minority Leader Mitch McConnell. The House has convened a session for Tuesday at noon (1700 GMT).


House Speaker John Boehner said the House would consider the deal if it were passed by the Senate.


"The House will honor its commitment to consider the Senate agreement if it is passed. Decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members ... have been able to review the legislation," Boehner and other House Republican leaders said in a statement.


The deal would make permanent the alternative minimum tax "patch" that was set to expire, protecting middle-income Americans from being taxed as if they were rich.


Indiscriminate spending cuts for defense and non-defense spending were simply postponed for two months.


As New Year's Day approached, members were thankful that financial markets were closed, giving them a second chance to return on Tuesday to try to blunt the worst effects of the fiscal mess.


There is no major difference whether a law is passed on Monday night, Tuesday or Wednesday. Legislation can be backdated to January 1, for instance, said law firm K&L Gates partner Mary Burke Baker, who spent decades at the Internal Revenue Service.


"This is sort of like twins and one being born before midnight and one being born after. I think the date that matters is the day president signs the legislation," she said.


Republicans are pushing for savings in the Medicare and Social Security healthcare and retirement programs and threatening to block a increase in the debt limit - which caps how much debt the federal government can hold - in February unless they get their way.


(Additional reporting by Richard Cowan, Mark Felsenthal, Rachelle Younglai and David Lawder; Writing by Alistair Bell, Editing by Peter Cooney)



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Maine gas prices on the way up






AUGUSTA, Maine (AP) — Gas prices in Maine are up nearly three cents per gallon in the past week.


Price-monitoring website MaineGasPrices.com reports Monday that the average retail cost of a gallon of gasoline jumped to $ 3.51.






The national average also rose about three cents in the past week, but remains well below the Maine average at $ 3.27 per gallon.


Current Maine prices are a nickel lower than a month ago and still 17 cents higher than at this time last year.


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Strong Asian gains overshadowed by U.S. fiscal cliff

SYDNEY (Reuters) - Several major Asian stock indexes closed on Monday with the strongest annual gains in years, but these were overshadowed by the lack of progress in talks to avert the looming U.S. "fiscal cliff".


Australian shares ended up 14.6 percent in 2012, the best yearly gain since the recovery of 2009. On Monday the benchmark S&P/ASX 200 index <.axjo> fell 22.4 points to 4,648.9, according to the latest data. It rose 0.5 percent to 4,671.3 on Friday, its highest close since June 2, 2011.


Hong Kong shares ended their best year since 2009 hovering near 18-month closing highs on Monday. The Hang Seng Index <.hsi> closed flat at 22,656.9 on the day, ending the session up 22.9 percent on the year, near its highest close since early July 2011.


The Straits Times Index (STI) <.ftsti> ended down 0.8 percent at 3,167.78 points, but it has gained 20.6 percent since the start of the year, its best yearly gain since 2009, when it surged 64 percent.


Monday's strong closes came during New Year market holidays in Japan, South Korea, Taiwan, Indonesia, Thailand, the Philippines and Vietnam, with half-day trading in Australia, New Zealand, Hong Kong and Singapore.


Japan's Nikkei 225 <.n225> ended 2012 trading on Friday up 23 percent, Seoul's KOSPI 200 <.ks11> closed up 9.4 percent on the year, and Taiwan was up 9 percent.


The gains drove the MSCI Asia Pacific ex-Japan's <.miwd00000pus> to a 12.6 percent rise this year.


Investors fear these gains may be short-lived as the U.S. Congress and the White House struggle to find compromises that could avert the fiscal cliff - harsh tax rises and spending cuts that take effect from New Year's Day.


S&P 500 futures were up 3.7 points, or 0.3 percent, to 1,387.70 in electronic trading at 0500GMT, but traders said the rise in the futures market did not necessarily bode well for a Wall Street rally on Monday after the cash market and futures markets closed far apart on Friday.


"Hard to predict how or when there will be a deal, but I believe investors will show their displeasure tomorrow by selling stocks if there is no deal," said Mohannad Aama, managing director at Beam Capital Management, an investment advisory firm in New York.


In Washington, Senate Majority Leader Harry Reid said the Senate would resume sitting at 11 a.m. Washington time on Monday (1600 GMT), to continue discussions, but there were still significant differences between the two sides.


The U.S. dollar last stood at 85.78 yen, having retreated from Friday's high of 86.64 yen, which was the greenback's strongest level versus the Japanese currency since August 2010.


As the year draws to a close, the dollar is up about 11.9 percent against the yen, putting it on track for its biggest percentage gain versus the Japanese currency since 2005.


The euro inched up 0.14 percent to 1.323 on Monday. An agreement on the U.S. budget would be viewed as positive for riskier currencies such as the euro and Australian dollar, while a deadlock is deemed positive for the haven and highly liquid dollar.


The Australian dollar was around $1.0383, from $1.0375 in late New York on Friday. It touched a one-month low of $1.0345 last week, but is on track to finish up 1.4 percent this year.


The Aussie dollar was supported by a bounce in iron ore prices <.io62-cni>, which hit eight-month highs at $139.40. Prices are now up 61 percent from the lows hit in September.


Gold was $1661.34 an ounce by 0525 GMT, up around 6 percent for the year and is on track for a 12th consecutive year of gains on rock-bottom interest rates, concerns over the financial stability of the euro zone, and diversification into bullion by central banks.


U.S. crude futures slipped on Monday for a third consecutive session on the budget crisis, with failure to reach a solution seen likely to cause a large drop in fuel consumption.


U.S. crude for February delivery was $90.83 a barrel by 0525 GMT. Front-month prices are on track to post an 8 percent fall in 2012, after three consecutive annual gains. Brent crude slipped 23 cents to $110.39 a barrel, but is set to post a 2.8 percent year-on-year increase in 2012, up for a fourth consecutive year.


(Reporting By Reuters Markets Team; Writing by Eric Meijer; Editing by Matt Driskill)



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Nobel scientist Levi-Montalcini dies in Rome, 103






ROME (AP) — Rome‘s mayor says biologist Rita Levi-Montalcini, who conducted underground research in defiance of Fascist persecution, and went on to win a Nobel Prize for helping unlock the mysteries of the cell, has died at her home in the city. She was 103.


Italy’s so-called “Lady of the Cells,” who died on Sunday, lived through anti-Semitic discrimination and Nazi invasion, becoming one of her country’s leading scientists and sharing the medicine prize for her groundbreaking research in the United States.






Her research increased the understanding of many conditions, including tumors, developmental malformations, and senile dementia.


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Wall Street Week Ahead: Cliff may be a fear, but debt ceiling much scarier


(Reuters) - Investors fearing a stock market plunge - if the United States tumbles off the "fiscal cliff" next week - may want to relax.


But they should be scared if a few weeks later, Washington fails to reach a deal to increase the nation's debt ceiling because that raises the threat of a default, another credit downgrade and a panic in the financial markets.


Market strategists say that while falling off the cliff for any lengthy period - which would lead to automatic tax hikes and stiff cuts in government spending - would badly hurt both consumer and business confidence, it would take some time for the U.S. economy to slide into recession. In the meantime, there would be plenty of chances for lawmakers to make amends by reversing some of the effects.


That has been reflected in a U.S. stock market that has still not shown signs of melting down. Instead, it has drifted lower and become more volatile.


In some ways, that has let Washington off the hook. In the past, a plunge in stock prices forced the hand of Congress, such as in the middle of the financial crisis in 2008.


"If this thing continues for a bit longer and the result is you get a U.S. debt downgrade ... the risk is not that you lose two-and-a-half percent, the risk is that you lose ten and a half," said Jonathan Golub, chief U.S. equity strategist at UBS Equity Research, in New York.


U.S. Treasury Secretary Tim Geithner said this week that the United States will technically reach its debt limit at the end of the year.


INVESTORS WARY OF JANUARY


The White House has said it will not negotiate the debt ceiling as in 2011, when the fight over what was once a procedural matter preceded the first-ever downgrade of the U.S. credit rating. But it may be forced into such a battle again. A repeat of that war is most worrisome for markets.


Markets posted several days of sharp losses in the period surrounding the debt ceiling fight in 2011. Even after a bill to increase the ceiling passed, stocks plunged in what was seen as a vote of "no confidence" in Washington's ability to function, considering how close lawmakers came to a default.


Credit ratings agency Standard & Poor's lowered the U.S. sovereign rating to double-A-plus, citing Washington's legislative problems as one reason for the downgrade from triple-A status. The benchmark S&P 500 dropped 16 percent in a four-week period ending August 21, 2011.


"I think there will be a tremendous fight between Democrats and Republicans about the debt ceiling," said Jon Najarian, a co-founder of online brokerage TradeMonster.com, in Chicago.


"I think that is the biggest risk to the downside in January for the market and the U.S. economy."


There are some signs in the options market that investors are starting to eye the January period with more wariness. The CBOE Volatility Index, or the VIX, the market's preferred indicator of anxiety, has remained at relatively low levels throughout this process, though on Thursday it edged above 20 for the first time since July.


More notable is the action in VIX futures markets, which shows a sharper increase in expected volatility in January than in later-dated contracts. January VIX futures are up nearly 23 percent in the last seven trading days, compared with a 13 percent increase in March futures and an 8 percent increase in May futures. That's a sign of increasing near-term worry among market participants.


The CBOE Volatility Index closed on Friday at 22.72, gaining nearly 17 percent to end at its highest level since June as details emerged of a meeting on Friday afternoon of President Barack Obama with Senate and House leaders from both parties where the president offered proposals similar to those already rejected by Republicans. Stocks slid in late trading and equity futures continued that slide after cash markets closed.


"I was stunned Obama didn't have another plan, and that's absolutely why we sold off," said Mike Shea, a managing partner and trader at Direct Access Partners LLC, in New York.


Obama offered hope for a last-minute agreement to avoid the fiscal cliff after a meeting with congressional leaders, although he scolded Congress for leaving the problem unresolved until the 11th hour.


"The hour for immediate action is here," he told reporters at a White House briefing. "I'm modestly optimistic that an agreement can be achieved."


The U.S. House of Representatives is set to convene on Sunday and continue working through the New Year's Day holiday. Obama has proposed maintaining current tax rates for all but the highest earners.


Consumers don't appear at all traumatized by the fiscal cliff talks, as yet. Helping to bolster consumer confidence has been a continued recovery in the housing market and growth in the labor market, albeit slow.


The latest take on employment will be out next Friday, when the U.S. Labor Department's non-farm payrolls report is expected to show jobs growth of 145,000 for December, in line with recent growth.


Consumers will see their paychecks affected if lawmakers cannot broker a deal and tax rates rise, but the effect on spending is likely to be gradual.


PLAYING DEFENSE


Options strategists have noted an increase in positions to guard against weakness in defense stocks such as General Dynamics because those stocks would be affected by spending cuts set for that sector. Notably, though, the PHLX Defense Index is less than 1 percent away from an all-time high reached on December 20.


This underscores the view taken by most investors and strategists: One way or another, Washington will come to an agreement to offset some effects of the cliff. The result will not be entirely satisfying, but it will be enough to satisfy investors.


"Expectations are pretty low at this point, and yet the equity market hasn't reacted," said Carmine Grigoli, chief U.S. investment strategist at Mizuho Securities USA, in New York. "You're not going to see the markets react to anything with more than a 5 (percent) to 7 percent correction."


Save for a brief 3.6 percent drop in equity futures late on Thursday evening last week after House Speaker John Boehner had to cancel a scheduled vote on a tax-hike bill due to lack of Republican support, markets have not shown the same kind of volatility as in 2008 or 2011.


A gradual decline remains possible, Golub said, if business and consumer confidence continues to take a hit on the back of fiscal cliff worries. The Conference Board's measure of consumer confidence fell sharply in December, a drop blamed in part on the fiscal issues.


"If Congress came out and said that everything is off the table, yeah, that would be a short-term shock to the market, but that's not likely," said Richard Weiss, a Mountain View, California-based senior money manager at American Century Investments.


"Things will be resolved, just maybe not on a good time table. All else being equal, we see any further decline as a buying opportunity."


(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: david.gaffen(at)thomsonreuters.com)


(Reporting by Edward Krudy and Ryan Vlastelica in New York and Doris Frankel in Chicago; Writing by David Gaffen; Editing by Martin Howell, Steve Orlofsky and Jan Paschal)



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Dealer Pleads Guilty to Smuggling in Largest International Dino Case Ever






A fossil dealer’s guilty plea has set the stage for what is most likely the largest dinosaur fossil repatriation in history, according to an attorney representing the President of Mongolia, the country that will receive most of the fossils that federal officials are seizing from fossil dealer and preparer Eric Prokopi.


On Thursday (Dec. 27) Prokopi pleaded guilty to criminal charges related to smuggling fossils and agreed to forfeit a small menagerie of dinosaurs to federal officials. All but one of the dinosaurs in question came from Mongolia, where law makes fossils state property, and among them is a high-profile skeleton that received a $ 1.05 million bid at auction.






“We have looked into this, and we can’t find any instance anywhere when one country has returned to another a lot of dinosaurs this large and this significant that have been looted or smuggled,” said Robert Painter, attorney for Mongolian President Elbegdorj Tsakhia.


The outcome has set precedent in other ways, according to observers and others who are involved in the case. In particular, some believe it will send a message to those involved in the black market for fossils, particularly those taken from Mongolia, which have been widely available for sale.


A long list of dinosaurs


In May, Prokopi put his 8-foot-tall and 24-foot-long (2.4 meters by 7.3 meters) Tarbosaurus bataar specimen up for auction. President Elbegdorj and several paleontologists objected, saying the dinosaur was almost certainly pilfered from Mongolia. The Manhattan U.S. Attorney became involved and sought legal possession of the dinosaur with the intent of returning it to Mongolia and later arresting Prokopi. [See Images of the Smuggled Tarbosaurus Skeleton]


In a plea deal, Prokopi pleaded guilty to three felony counts and agreed to give up his claim on this dinosaur, plus fossils from two other Tarbosaurus bataars, which are Asian relatives of the infamous T. rex; one Saurolophus or duck-billed dinosaur; and two birdlike Oviraptors. In September, federal officials seized another Saurolophus that Prokopi had sold to California-based gallery and auction houseI.M. Chait. A small four-winged Microraptor from China was taken by federal officials before this case began. One of the Tarbosaurus fossils is believed to be in Great Britain.


“We are pleased that we can now begin the process of returning these prehistoric fossils to their countries of origin,” Preet Bharara, the U.S. Attorney for the Southern District of New York, said in a statement.


Prokopi’s prospects


After pleading guilty to charges of smuggling, making false statements on customs forms and dealing in fossils he knew to be illegal, Prokopi faces a maximum of 17 years in prison and a substantial fine. However, his defense attorney Georges Lederman said he believes it is highly unlikely Prokopi will receive anything close to the maximum sentence.


“We are confident that the sentence imposed will be a fair and reasonable one and will take into account all the proactive measures my client has made,” Lederman said, noting that Prokopi has cooperated with investigators and, as part of his plea deal, will continue to do so.


The outcome of the case disappointed David Herskowitz, an independent natural history consultant. While employed by auction house Heritage Auctions, Herskowitz arranged for the sale of Prokopi’s Tarbosaurus.


“I know Eric, and I know he is not a criminal,” Herskowitz said. “I don’t believe he knowingly broke any laws, and I believe the only reason why he had to cop a plea was financial and the pressures [of being involved in a court case].”


Prokopi spent a year preparing the Tarbosaurus fossils, which were once rough fossils that made up about 75 percent of a skeleton, to create a complete, mounted specimen with the intent of selling it at auction, Herskowitz said. But the $ 1 million sale was never completed.


Since releasing a statement in June, in which he described himself as “just a guy in Gainesville, Florida trying to support my family, not some international bone smuggler,” Prokopi has been silent.


At roughly the same time federal officials seized the Tarbosaurus bataar, fossils of probable Mongolian origin were easily found in auction catalogs and on eBay. Herskowitz noted that he has seen Mongolian fossils for sale during the 20 years he has been working in the field.


“Mongolia never stepped forward to do anything about the buying and selling of Mongolian fossils, and that was the reason why everyone felt it was legal and OK,” Herskowitz said.


A legal question


With the deal still fresh, not everyone agrees about its legal implications. An important issue in the case was the relationship between Mongolian law — which Prokopi’s civil attorneys said did not clearly make fossils state property — and U.S. law. This is important because prosecutors were basing the claim that the fossils were stolen on Mongolian law, however, Prokopi was being prosecuted under U.S. law.


From Herskowitz’s perspective, the plea deal doesn’t resolve this issue, but the ambiguity will likely change the market.


 “I would believe that no one should be selling Mongolian fossils until this whole thing is resolved,” he said.


Ricardo St. Hilaire, an attorney who practices cultural law, disagreed, saying that the deal created a foundation for using Mongolian law on cultural property to invoke U.S. law on stolen property.


“This conviction should signal to those of us in the legal community and to anybody in the collecting community that Mongolian law has served as the basis to trigger the National Stolen Property Act,” St. Hilaire said. Prokopi pleaded guilty to one count of violating this law. [Faux Real: A Gallery of Art Forgeries]


The case and its outcome signal the willingness of the Manhattan U.S. Attorney to pursue cultural property cases, said St. Hilaire, who has been following the case and writing about it on his blog.


Robert Painter, attorney for the Mongolian President, put the significance in more blunt terms: “Smugglers like Eric Prokopi used to think they could do this with impunity. Now they realize this is very serious.”


The Mongolian reaction


Mongolian officials have announced plans to establish a temporary facility in the central square of the capital Ulaanbataar to display the dinosaurs once they return, Painter said.


“President Elbegdorj and Mongolians are so grateful for what the U.S. government has done, there is just a tremendous amount of excitement,” he said.


The dinosaur’s saga from auction block to courtroom has captured Mongolians’ attention: A Mongolian media company, shuud.mn, named the dinosaur’s story the top event of the year, said Bolorsetseg Minjin, a Mongolian paleontologist who has advocated for the return the dinosaur.


“It is not only on the news, just talking to the people in Mongolia, they really want to know what is going on with the whole case,” Minjin said.


Mongolian officials are investigating the illicit trade within their own borders as well, Painter said.


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