Wall Street set for rally in wake of fiscal pact

NEW YORK (Reuters) - Wall Street was set to rally on the first trading day of 2013, after lawmakers agreed a deal to avoid massive tax hikes and spending cuts that had threatened to hurt economic growth.


The gains would come after stocks ended 2012 with their strongest day in more than a month, which put the S&P 500 up 13.4 percent for the year, after a flat performance in 2011.


Late on Tuesday, the House of Representatives voted for a bill that will raise taxes on wealthy individuals and families and preserve certain benefits.


The vote averted immediate austerity measures, like tax hikes for almost all U.S. households, although it didn't resolve other political showdowns on the budget due in coming months. Spending cuts of $109 billion in military and domestic programs were only delayed for two months.


"We are looking at a sharply higher open on Wall Street," said Peter Cardillo, chief market analyst for Rockwell Global Capital in New York. "The deal certainly brightens the prospects for economic growth, and traditionally speaking, the first week of the year generally sets the stage for the rest of the year for equities - so this is positive."


"There is a lot of euphoria out there and I expect, for the next day or two, the market will continue on the upside. We will see money re-entering the market," Cardillo said.


S&P 500 futures rose 26.8 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 203 points, and Nasdaq 100 futures added 57.25 points.


The long-awaited U.S. fiscal deal lifted global shares at the start of the new year. The pan-European FTSEurofirst 300 <.fteu3> was up 1.6 percent and the MSCI world index <.miwd00000pus> rose 0.8 percent. The MSCI Asia Pacific ex-Japan index of stocks <.miapj0000pus> surged 2.1 percent. Japanese markets were closed Wednesday for a holiday.


On the macroeconomic front, the Institute for Supply Management's manufacturing sector survey will be released at 10:00 a.m. ET (1500 GMT). A Reuters survey forecasts the main index at 50.3 compared with 49.5 in November.


Also at 10:00 a.m., November construction spending data will be released. A Reuters survey forecasts a 0.6 percent rise in construction spending, versus 1.4 percent in the prior month.


On the last day of trading in 2012, the Dow Jones industrial average <.dji> gained 166.03 points, or 1.28 percent, to close at 13,104.14. The Standard & Poor's 500 Index <.spx> gained 23.76 points, or 1.69 percent, to finish at 1,426.19. The Nasdaq Composite Index <.ixic> gained 59.20 points, or 2.00 percent, to close at 3,019.51.


In 2012, the Dow advanced 7.3 percent, while the Nasdaq climbed 15.9 percent.


(Editing by Bernadette Baum)



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Syria starts 2013 with aerial strikes and clashes


BEIRUT (Reuters) - Syrians woke on New Year's Day to countrywide aerial bombardment, while President Bashar al-Assad's forces and rebels fighting to topple him clashed on the outskirts of the capital.


Residents of Damascus entered the new year to the sound of artillery hitting southern and eastern districts that form a rebel-held crescent on the outskirts of the capital, the center of which is still firmly under government control.


In the center, soldiers manning checkpoints fired celebratory gunfire at midnight, causing alarm in a city where streets were largely deserted.


"How can they celebrate? There is no 'Happy New Year'," Moaz al-Shami, an opposition activists who lives in the capital's central Mezzeh district, said over Skype, his voice trembling with anger.


He said rebel fighters attacked one checkpoint in the district of Berzeh early on Tuesday. Opposition groups said mortar bombs hit the southwest suburb of Daraya, where the army launched a military offensive on Monday to retake the battered district.


Assad's air force pounded Damascus's eastern suburbs, as well as rebel-held areas in the second city Aleppo, and several rural towns and villages, opposition activists said.


An estimated 45,000 people have been killed in the revolt, which started in early 2011 with peaceful protests demanding democratic reforms but turned into an armed uprising after months of attacks on protesters by security forces.


A resident of the central city of Homs, who asked to remain anonymous, said shells had landed on the Old City early on Tuesday.


Homs lies on the strategic north-south highway and parts of the ancient city have been leveled during months of clashes. Government forces ousted rebels from the city early last year but militants have slowly crept back in.


"The Old City is under siege. There is shelling from all sides," he said.


The opposition-linked Syrian Observatory for Human Rights, a British-based monitoring group, reported 160 people killed on the final day of 2012, including at least 37 government troops. The group's reports cannot be verified.


BOMBARDMENT


The civil war in Syria has become the longest and deadliest of the conflicts that rose out of the uprisings that swept through the Arab world over the past two years.


Many Sunni Muslims, the majority in Syria, back the rebellion, while Assad, who hails from the Shi'ite-derived Alawite minority sect, is backed by some minorities who fear revenge if he falls. His family has ruled Syria harshly since his father seized power in a coup 42 years ago.


Assad's forces have lately relied more on aerial and artillery bombardment, rather than infantry. Residential areas where rebels base themselves have been targeted, killing civilians unable to flee. Schools and queues of people buying bread have been hit.


Rebels have taken swathes of the north and the east but have struggled to hold cities, complaining that they are defenseless against Assad's Soviet-built air force.


A year ago, many diplomats and analysts predicted Assad would leave power in 2012. But he has proved resilient and none of his inner circle have defected. He still largely retains control of his armed forces.


Diplomatic efforts to end the war have faltered, with the rebels refusing to negotiate unless Assad leaves power and him pledging to fight until death.


Most Western and Arab states have called for him to leave power. He is supported by Russia and Shi'ite Iran.


In the final days of 2012, international mediator Lakhdar Brahimi called on countries to push the sides to talk, saying Syria faced a choice of "hell or the political process".


One Damascus resident, who asked not to be identified for security reasons, said the usual new year's eve crowds were absent from the increasingly isolated capital.


"There was hardly anyone on the streets, no cars, no pedestrians. Most restaurants, cafes and bars were empty," she said. Some young people gathered at three bars in the old city.


"There was music but nobody was dancing. They just sat there with a drink in their hands and smoking. I don't think I saw one person smile," she said. The midnight gunfire caused alarm.


"It was very scary. No one knew what was going on. People got very nervous and started making phone calls. But then I discovered that at least on my street, the gunfire was celebratory."


(Editing by Peter Graff and Alison Williams)



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Olympics, elections and horsing around in odd 2012






LONDON (Reuters) – Presidential preening, golden Olympic gaffes, a royal windfall for a skydiving British queen on her diamond jubilee and the endless end of days marked the odd stories in 2012 which pranced across the news in Gangnam Style.


The year opened with a tale that flocks of magpies and bears had been spotted in mourning for North Korea‘s “Dear Leader”, Kim Jong-il who died in December 2011 and was succeeded by his 20-something son Kim Jong-un.






Winter weather was so cold in Brussels that the Manneken-Pis, a bronze statue of a young boy urinating had to stop peeing because of sub-zero temperatures.


There was slightly warming news about Mondays in Germany, where crematoriums are struggling to adapt to an increasingly obese population and a boom in extra-large coffins.


“We burn particularly large coffins on Monday mornings when the ovens are cold,” one crematorium said.


In March Polish media reported that kite surfer Jan Lisewski fought off repeated shark attacks and overcame thirst and exhaustion in a two-day battle of survival on the Red Sea with just his trusty knife as protection.


“I was stabbing them in the eyes, the nose and gills.”


In other animal news, dairy cows across the world mourned the loss of “Jocko”, the world’s third most-potent breeding bull and Yvonne the German cow who evaded helicopter searches and dodged hunters landed a film deal: “Cow on the Run”.


A Nepali man who was bitten by a cobra snake bit it back and killed the reptile after it attacked him in his rice paddy.


“I could have killed it with a stick but bit it with my teeth instead because I was angry,” Mohamed Salmo Miya said.


A scathing resignation letter of a Goldman Sachs executive published in the New York Times inspired a sheaf of online spoofs, including Star Wars villain Darth Vader.


“The Empire today has become too much about shortcuts and not enough about remote strangulation. It just doesn’t feel right to me anymore,” Vader wrote in a published letter.


Austerity in Europe saw a once-thriving Greek sex industry become the latest victim of the country’s debt crisis with Greeks spending less on erotic toys, pornography and lingerie.


But lust appeared to be in the rudest of health elsewhere.


Turkish emergency workers rescued an inflatable sex doll floating in the Black Sea and a German disc jockey vowed to press charges against a woman who locked him in her apartment and ravaged him for hours until he rang the police.


“She was sex mad and there was no way out of the flat,” Dieter S. told police.


@ROYALFETUS


Britain’s Queen Elizabeth celebrated her 60th year on the throne with Diamond Jubilee celebrations that saw a 1,000-ship rain-sodden flotilla sail down the River Thames, a massive party in front of Buckingham Palace, street parties across the country and a spoof incarnation of her majesty on Twitter.


“OK, fire up the Bentley. Let’s rock,” tweeted “Elizabeth Windsor“, the comic online alter ego of the British monarch in a typical tweet from the spoof Twitter account @Queen_UK, a virtual monarch with a razor-sharp wit and a penchant for gin.


And Twitter positively exploded with spoof royal accounts later in the year when Elizabeth’s grandson William and his wife Kate announced she was pregnant with a future monarch.


“I may not have bones yet, but I’m already more important than everyone reading this,” was the tweet from @RoyalFetus.


Leadership and change was a theme which ran through a year in which socialist Francois Hollande defeated incumbent Nicolas Sarkozy and Mimi the clown to become French president, Vladimir Putin was elected Russian president again and U.S. President Barack Obama won re-election over Republican Mitt Romney.


Amid the tight election race, Obama met a gaffe-prone Romney for an exchange at a charity dinner ahead of the November poll, where America’s first black president poked fun at Hollywood actor Clint Eastwood for lecturing an empty chair as if it were Obama during the Republican convention.


“Please take your seats,” Obama told the crowd, “or else Clint Eastwood will yell at them.”


“THE MODFATHER”


Sporting news was dominated by the London Olympics during the summer, where the opening ceremony included a vignette of Queen Elizabeth being escorted by James Bond before apparently skydiving into the Olympic stadium for her arrival.


“Good evening Mr. Bond,” was her only line.


Olympic embarrassments were few, but they began early with organizers forced into apologies for displaying the South Korean flag on a video screen for North Korea‘s women’s soccer team.


British cycling sensation Bradley “the Modfather” Wiggins became the first Briton to win the Tour de France, sparking a craze among fans for cutout cardboard sideburns modeled on his own and shouting “here Wiggo” as he raced to Olympic gold.


London’s eccentric and loquacious Mayor Boris Johnson fell rather awkwardly silent when he got stuck dangling from a zip wire, waving two Union flags in drizzling rain.


Olympic chiefs urged youthful athletes to drink “sensibly”.


But there was anything but restraint for Jamaican sprinter Usain Bolt, who declared an early night at one point only to be photographed later with three members of the Swedish women’s handball team. Early one Sunday morning Bolt also dazzled dancers at a London night club with a turn in the DJ booth.


“I am a legend,” Bolt shouted out to a packed dance floor from the decks with his arms raised in the air.


Towards the close of the year, tens of thousands of mystics, hippies and tourists celebrated in the shadow of ancient Maya pyramids in southeastern Mexico as the Earth survived a day billed by doomsday theorists as the end of the world.


“It’s pure Hollywood,” said Luis Mis Rodriguez, 45, a Maya selling obsidian figurines and souvenirs.


Finally, a chubby, rapping singer with slicked-back hair and a tacky suit became the latest musical sensation to burst upon the world from South Korea, via a YouTube music video that has been seen more than a billion times.


Decked out in a bow tie and suit jackets varying from pink to baby blue, as well as a towel for one sequence set in a sauna, Psy busts funky moves based on horse-riding in venues ranging from playgrounds to subways.


The video by Psy has been emulated by everyone from Chinese dissident artist Ai Weiwei to students at Britain’s elite Eton College, gurning politicians, spotty teens and embarrassing dads worldwide.


“My goal in this music video was to look uncool until the end. I achieved it,” Psy told Reuters.


(Reporting by Paul Casciato; editing by Mike Collett-White)


Internet News Headlines – Yahoo! News





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Eric Prydz Picks a New Year's Eve Playlist















12/31/2012 at 06:50 PM EST



Unfortunately not everyone can be in Las Vegas when the ball drops this year, but Eric Prydz is bringing the party to PEOPLE.com readers in advance.

The DJ and producer, 36 – best known for his 2004 hit single, "Call on Me" – is playing a three-hour extended set at Surrender Nightclub on Monday, and he's sharing the tracks he's most excited to spin, including songs from his album, Eric Prydz Presents Pryda.

"I love to play on New Year's Eve because it has that special tension in the air," Prydz says. "People are so excited about the new year coming, leaving the old behind and starting fresh. It's also the perfect excuse to blow off some steam after that long Christmas with family. Let's make New Year's Eve 2013 one to remember!"

Recently scoring a Grammy nomination for his remix of M83's "Midnight City," Prydz, who is relocating to Los Angeles, already predicts 2013 "is going to be an amazing year."

As for his evening playlist, he plans to "blend a lot of the highlights from the past year with classics and brand new music set to blow up in 2013."

Check out part of his planned set below:

Jeremy Olander – "Let Me Feel"
"This tune has spring/summer of 2013 written all over it. It's such a feel good track!"
Listen here

Fehrplay – "I Can't Stop It"
"Fehrplay had a great year in 2012 and is set to blow up in 2013. This is his forthcoming single on my Pryda Friends imprint. The first time I heard this record, it took me somewhere really nice."
Listen here

Rone – "Parade (Dominik Eulberg Remix)"
"Every now and then there is a track that comes along and blows your mind. This is one of those tracks. Nine minutes of pure emotion."
Listen here

Eric Prydz – "Every Day"
"This one has been huge for me this summer and fall. Enough said."
Listen here

Pachanga Boys – "Time"
"This was the soundtrack of my summer 2012. And I'm sure I'm not alone on that one."
Listen here

Para One – "When the Night (Breakbot Remix)"
"I've been a fan of Para One's music for many years and this one is no exception. This song has a great retro vibe with a modern touch from Breakbot on this remix."
Listen here

Pig & Dan – "Savage"
"This is a real club stomper. I can't wait to play this one out."
Listen here

Pryda – "The End"
"I had to throw this one in. It's one of the biggest releases on Pryda to date."
Listen here

Green Velvet & Harvard Bass – "Lazer Beams"
"Hit me with those laser beams!"
Listen here.

Deetron feat. Hercules & Love Affair – "Crave (Deetron cRAVE Dub)"
"This song is a dark, big room destroyer."
Listen here

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Clinton receiving blood thinners to dissolve clot


WASHINGTON (AP) — Doctors treating Secretary of State Hillary Rodham Clinton for a blood clot in her head said blood thinners are being used to dissolve the clot and they are confident she will make a full recovery.


Clinton didn't suffer a stroke or neurological damage from the clot that formed after she suffered a concussion during a fainting spell at her home in early December, doctors said in a statement Monday.


Clinton, 65, was admitted to New York-Presbyterian Hospital on Sunday when the clot turned up on a follow-up exam on the concussion, Clinton spokesman Phillipe Reines said.


The clot is located in the vein in the space between the brain and the skull behind the right ear. She will be released once the medication dose for the blood thinners has been established, the doctors said.


In their statement, Dr. Lisa Bardack of the Mount Kisco Medical Group and Dr. Gigi El-Bayoumi of George Washington University said Clinton was making excellent progress and was in good spirits.


Clinton's complication "certainly isn't the most common thing to happen after a concussion" and is one of the few types of blood clots in the skull or head that are treated with blood thinners, said Dr. Larry Goldstein, a neurologist who is director of Duke University's stroke center. He is not involved in Clinton's care.


The area where Clinton's clot developed is "a drainage channel, the equivalent of a big vein inside the skull. It's how the blood gets back to the heart," Goldstein said.


Blood thinners usually are enough to treat the clot and it should have no long-term consequences if her doctors are saying she has suffered no neurological damage from it, Goldstein said.


Clinton returned to the U.S. from a trip to Europe, then fell ill with a stomach virus in early December that left her severely dehydrated and forced her to cancel a trip to North Africa and the Middle East. Until then, she had canceled only two scheduled overseas trips, one to Europe after breaking her elbow in June 2009 and one to Asia after the February 2010 earthquake in Haiti.


Her condition worsened when she fainted, fell and suffered a concussion while at home alone in mid-December as she recovered from the virus. It was announced Dec. 13.


This isn't the first time Clinton has suffered a blood clot. In 1998, midway through her husband's second term as president, Clinton was in New York fundraising for the midterm elections when a swollen right foot led her doctor to diagnose a clot in her knee requiring immediate treatment.


Clinton had planned to step down as secretary of state at the beginning of President Barack Obama's second term. Whether she will return to work before she resigns remained a question.


Democrats are privately if not publicly speculating: How might her illness affect a decision about running for president in 2016?


After decades in politics, Clinton says she plans to spend the next year resting. She has long insisted she had no intention of mounting a second campaign for the White House four years from now. But the door is not entirely closed, and she would almost certainly emerge as the Democrat to beat if she decided to give in to calls by Democratic fans and run again.


Her age — and thereby health — would probably be a factor under consideration, given that Clinton would be 69 when sworn in, if she were elected in 2016. That might become even more of an issue in the early jockeying for 2016 if what started as a bad stomach bug becomes a prolonged, public bout with more serious infirmity.


Not that Democrats are willing to talk openly about the political implications of a long illness, choosing to keep any discussions about her condition behind closed doors. Publicly, Democrats reject the notion that a blood clot could hinder her political prospects.


"Some of those concerns could be borderline sexist," said Basil Smikle, a Democratic strategist who worked for Clinton when she was a senator. "Dick Cheney had significant heart problems when he was vice president, and people joked about it. He took the time he needed to get better, and it wasn't a problem."


It isn't uncommon for presidential candidates' health — and age — to be an issue. Both in 2000 and 2008, Sen. John McCain, R-Ariz., had to rebut concerns he was too old to be commander in chief or that his skin cancer could resurface.


Two decades after Clinton became the first lady, signs of her popularity — and her political strength — are ubiquitous.


Obama had barely declared victory in November when Democrats started zealously plugging Clinton as their strongest White House contender four years from now, should she choose to take that leap.


"Wouldn't that be exciting?" House Democratic leader Nancy Pelosi declared in December. "I hope she goes. Why wouldn't she?"


Even Republicans concede that were she to run, Clinton would be a force to be reckoned with.


"Trying to win that will be truly the Super Bowl," Newt Gingrich, the former House Speaker and 2012 GOP presidential candidate, said in December. "The Republican Party today is incapable of competing at that level."


Americans admire Clinton more than any other woman in the world, according to a Gallup poll released Monday — the 17th time in 20 years that Clinton has claimed that title. And a recent ABC News/Washington Post poll found that 57 percent of Americans would support Clinton as a candidate for president in 2016, with just 37 percent opposed. Websites have already cropped up hawking "Clinton 2016" mugs and tote bags.


Beyond talk of future politics, Clinton's three-week absence from the State Department has raised eyebrows among some conservative commentators who questioned the seriousness of her ailment after she canceled planned Dec. 20 testimony before Congress on the deadly attack on the U.S. diplomatic mission in Benghazi, Libya.


Clinton had been due to discuss with lawmakers a scathing report she had commissioned on the attack. It found serious failures of leadership and management in two State Department bureaus were to blame for insufficient security at the facility. Clinton took responsibility for the incident before the report was released, but she was not blamed. Four officials cited in the report have either resigned or been reassigned.


___


Associated Press writer Ken Thomas in Washington and AP Chief Medical Writer Marilynn Marchione in Milwaukee contributed to this report.


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Senate approves 'fiscal cliff' deal, crisis eased


WASHINGTON (Reuters) - The Senate moved the U.S. economy back from the edge of a "fiscal cliff" on Tuesday, voting to avoid imminent tax hikes and spending cuts in a bipartisan deal that could still face stiff challenges in the House of Representatives.


In a rare New Year's session at around 2 a.m. EST (0700 GMT), senators voted 89-8 to raise some taxes on the wealthy while making permanent low tax rates on the middle class that have been in place for a decade.


But the measure did little to rein in huge annual budget deficits that have helped push the U.S. debt to $16.4 trillion.


The agreement came too late for Congress to meet its own deadline of New Year's Eve for passing laws to halt $600 billion in tax hikes and spending cuts which strictly speaking came into force on Tuesday.


But with the New Year's Day holiday, there was no real world impact and Congress still had time to draw up legislation, approve it and backdate it to avoid the harsh fiscal measures.


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 and is too concerned with raising taxes.


All eyes are now on the House which is to hold a session on Tuesday starting at noon (1700 GMT).


Obama called for the House to act quickly and follow the Senate's lead.


"While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay," he said in a statement.


"There's more work to do to reduce our deficits, and I'm willing to do it. But tonight's agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans," Obama said.


Members were thankful that financial markets were closed, giving them a second chance to return to try to head off the fiscal cliff.


But if lawmakers cannot pass legislation in the coming days, markets are likely to turn sour. The U.S. economy, still recovering from the 2008/2009 downturn, could stall again if Congress fails to fix the budget mess.


"If we do nothing, the threat of a recession is very real. Passing this agreement does not mean negotiations halt, far from it. We can all agree there is more work to be done," Majority Leader Harry Reid, a Democrat, told the Senate floor.


A new, informal deadline for Congress to legislate is now Wednesday when the current body expires and it is replaced by a new Congress chosen at last November's election.


The Senate bill, worked out after long negotiations on New Year's Eve between Vice President Joe Biden and Senate Republican Minority Leader Mitch McConnell, also postpones for two months a $109 billion "sequester" of sweeping spending cuts on military and domestic programs.


It extends unemployment insurance to 2 million people for a year and makes permanent the alternative minimum tax "patch" that was set to expire, protecting middle-income Americans from being taxed as if they were rich.


'IMPERFECT SOLUTION'


The tax hikes do not sit easy with Republicans but conservative senators held their noses and voted to raise rates for the rich because not to do so would have meant increases for almost all working Americans.


"It took an imperfect solution to prevent our constituents from a very real financial pain, but in my view, it was worth the effort," McConnell said.


House Speaker John Boehner - the top Republican in Congress - said the House would consider the Senate deal. But he left open the possibility of the House amending the Senate bill, which would spark another round of legislating.


"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.


Boehner has struggled for two years to get control over a group of several dozen Tea Party fiscal conservatives in his caucus who strongly oppose tax increases and demand that he force Obama to make savings in the Medicare and Social Security healthcare and retirement programs.


A campaign-style event held by Obama in the White House as negotiations with Senate leaders were taking place on Monday may have made it more difficult for Republicans to back the deal. In remarks to a group of supporters that resembled a victory lap, the president noted that his rivals were coming around to his way of seeing things.


"Keep in mind that just last month Republicans in Congress said they would never agree to raise tax rates on the wealthiest Americans. Obviously, the agreement that's currently being discussed would raise those rates and raise them permanently," he said to applause before the Senate deal was sealed.


Obama's words and tone annoyed Republican lawmakers who seemed to feel that the Democrat was gloating.


"That's not the way presidents should lead," said Republican Senator John McCain, Obama's rival in the 2008 election.


A deal with the House on Tuesday, while uncertain, would not mark the end of congressional budget fights. The "sequester" spending cuts will come up again in February as will the contentious "debt ceiling," which caps how much debt the federal government can hold.


Republicans may see those two issues as their best chance to try to rein in government spending and clip Obama's wings at the start of his second term.


(Additional reporting by Richard Cowan, Mark Felsenthal, Rachelle Younglai, Kim Dixon and Jeff Mason; Writing by Alistair Bell; Editing by Eric Walsh)



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Assad's forces push to retake Damascus suburb


AMMAN (Reuters) - Heavy fighting raged on the outskirts of Damascus on Monday as elite troops backed by tanks tried to recapture a strategic suburb from rebels in one of the largest military operations in that district in months, opposition activists said.


Five people, including one child, died from army rocket fire that hit Daraya, the activists said. Daraya is one of a series of interconnected Sunni Muslim suburbs that ring Syria's capital and have been at the forefront of the 21-month-old revolt against President Bashar al-Assad.


"This is the biggest attack on Daraya in two months. An armored column is trying to advance but it being held (back) by the Free Syrian Army," said Abu Kinan, an opposition activist in the area, referring to a rebel group.


He said that tens of thousands of civilians had fled Daraya during weeks of government assault but that 5,000 remained, along with hundreds of rebels. Daraya is located near the main southern highway leading to the Jordanian border 85 kms (50 miles) to the south.


Activists said the military is trying to push back rebels who have been slowly advancing from the outskirts of Damascus to within striking distance of central districts inhabited by Assad's Alawite minority sect.


Assad's forces have mostly relied on aerial and artillery bombardment, rather than infantry. Rebels have been able take several outlying towns and have clashed with government troops near Damascus International Airport, halting flights by foreign airlines.


Another activist in Damascus with connection to rebels, who did not want to be named, said Daraya has been a firing position for rebels using mortars and homemade rockets. From it, they have been able to hit a huge presidential complex located at a hilltop overlooking Damascus and target pro-Assad shabbiha militia in an Alawite enclave nearby known as Mezze 86.


"So far they have missed the palace but they are getting better. I think the regime has realized that it no longer can afford to have such a threat so close by, but it has failed to overrun Daraya before," he said.


(Reporting by Khaled Yacoub Oweis; Editing by Oliver Holmes and Peter Graff)



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Kim Kardashian and Kanye West Expecting a Child















12/31/2012 at 03:45 AM EST







Kim Kardashian and Kanye West


Splash News Online


Talk about onstage pyrotechnics!

Kanye West dropped a bombshell during an Atlantic City concert on Sunday night, revealing that he and girlfriend Kim Kardashian are expecting a child.

The news of the reality starlet's pregnancy was quickly followed by an outpouring of congratulatory Twitter messages from family members.

"Oh BABY BABY BABY!!" shouts Kim's mom Kris Jenner.

Adds sister Kourtney: "Been wanting to shout from the rooftops with joy and now I can! Another angel to welcome to our family. Overwhelmed with excitement!

Kardashian, 32, and West, 35, went public with their relationship last April, about six months after Kardashian filed for divorce from Kris Humphries. The divorce action is still pending.

During Sunday's concert at Revel Resort's Ovation Hall, West revealed his big news by singing, "Now you having my baby" to the roar from the crowd of 5,000, the Associated Press reports.

West asked concertgoers to congratulate his "baby mom" and called the pregnancy the "most amazing thing."

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Kenya hospital imprisons new mothers with no money


NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.


Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.


Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.


"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."


"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."


The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.


Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.


"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.


She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.


A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.


"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.


Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.


One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.


Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.


___


Associated Press reporter Tom Odula contributed to this report.


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Stock futures edge higher hours before "cliff" deadline

NEW YORK (Reuters) - Stock futures edged higher on Monday after a five-session losing streak as political leaders in Washington worked against the clock to keep the United States from going over the "fiscal cliff."


Negotiations continued between top lawmakers and the White House on how to head off $600 billion in automatic tax hikes and spending cuts that kick in January 1 and could drag the economy in recession.


The lack of panic on markets so far suggests investors still expect officials to find a solution to the budget problems early in the New Year. The measures that kick in on January 1 will have only a gradual impact.


The Democrat-controlled Senate reconvenes on Monday with only hours to find a legislative solution, most likely a stop-gap deal, that would also have to be passed by the Republican-majority House of Representatives.


Despite the gains in futures, stocks still could fall on Monday when the cash markets open if there is no sign lawmakers are making progress.


"I expect today's move to be exaggerated considering that it will be a light volume day. The market is hopeful that there will be some kind of temporary fix here, so if we don't see a deal here, not even a mini deal, I suspect the market could sell off," said Peter Cardillo, chief market analyst for Rockwell Global Capital in New York.


While midnight on Monday marks the deadline for a deal, the government can pass legislation in 2013 that retroactively prevents the United States going over the fiscal cliff, an option that is viewed as politically easier.


S&P 500 futures rose 3 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 23 points, while Nasdaq 100 futures dropped 2.5 points.


European markets were slightly down on Monday morning, although trading was muted as markets in Germany, Switzerland, Italy, Denmark, Norway, and Sweden were closed while British, French, Dutch and Spanish markets were only open for half a session. <.eu/>


U.S. stocks dropped on Friday, with significant losses in the last minutes of trading, as prospects for a deal worsened at the beginning of the weekend.


The S&P 500 closed at 1,402.43 at 4 p.m. on Friday, down 1.1 percent, but futures continued to fall before closing 15 minutes later with a loss of 1.9 percent. S&P futures and the S&P cash index do not match point-by-point, but the size of the disparity on Monday points to a weak opening in stocks.


On Sunday, President Barack Obama, appearing on NBC's "Meet the Press," said investors could begin to show greater concerns in the new year.


Investors have remained relatively sanguine about the process, believing it will eventually be solved. In the past two months markets have not shown the kind of volatility that was present during the fight to raise the debt ceiling in 2011.


Rather, equities have largely performed well in the last two months despite constant chatter about the fiscal cliff, though the last few days showed increased worry. The Dow industrials and the S&P 500 each lost 1.9 percent last week after stocks fell for five straight sessions, which marked the S&P 500's longest losing streak in three months.


The CBOE Volatility Index <.vix> rose to its highest level since June on Friday, closing at 22.72.


(Reporting By Angela Moon; Editing by Kenneth Barry)



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