Monday, 31 December 2012

UN expert condemns move to oust Sri Lanka's chief justice

Chief Justice Shirani Bandaranayake (2nd R) gestures as she leaves the Supreme Court for the Parliament to appear before the Parliamentary Select Committee (PSC) appointed to look into impeachment charges against her, in Colombo December 4, 2012. REUTERS/Stringer

Chief Justice Shirani Bandaranayake (2nd R) gestures as she leaves the Supreme Court for the Parliament to appear before the Parliamentary Select Committee (PSC) appointed to look into impeachment charges against her, in Colombo December 4, 2012.

Credit: Reuters/Stringer

GENEVA | Mon Dec 31, 2012 9:07pm IST

GENEVA (Reuters) - A United Nations expert on Monday criticised Sri Lanka's move to impeach its chief justice, saying it was part of a pattern of attacks on lawyers and a bid to stop judges carrying out their work independently of politicians.

Parliament could vote next month to impeach Shirani Bandaranayake, the first woman to head Sri Lanka's Supreme Court, after she was found guilty by a parliamentary panel of financial irregularities and a failure to declare assets.

The case risks a destabilising clash between President Mahinda Rajapaksa's government and the judiciary. Opposition parties have withdrawn from the process, saying it was unfair.

Gabriela Knaul, U.N. Special Rapporteur on the independence of judges and lawyers, said the case against Bandaranayake was part of a pattern of attacks and threats against members of the judiciary and lawyers and interference in their work.

"The recent steps taken by the executive and legislative towards impeaching the chief justice appear to be the culminating point of a series of attacks against the judiciary for asserting its independence," Knaul said in a statement.

"It is of high concern to me that the procedure for the removal of the Chief Justice of the Supreme Court is extremely politicized and characterized by lack of transparency, lack of clarity in the proceedings, as well as lack of respect for the fundamental guarantees of due process and fair trial," she said.

A parliamentary impeachment panel found Bandaranayake guilty on three counts earlier this month. She has appealed against the decision and the United States, the United Nations and Commonwealth have all raised concerns about the process.

Knaul said article 107 of the Sri Lankan constitution, read together with Standing Orders of Parliament, contravened international human rights law and needed amending so that disciplinary proceedings against judges were conducted by independent commissions.

(Reporting by Tom Miles; Editing by Janet Lawrence)


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Obama says fiscal cliff deal in sight, not done yet

U.S. President Barack Obama speaks about the negotiations with Capitol Hill on the looming fiscal cliff in front of middle class Americans while in the Eisenhower Executive Office Building on the White House complex in Washington, December 31, 2012. REUTERS/Larry Downing

U.S. President Barack Obama speaks about the negotiations with Capitol Hill on the looming fiscal cliff in front of middle class Americans while in the Eisenhower Executive Office Building on the White House complex in Washington, December 31, 2012.

Credit: Reuters/Larry Downing

WASHINGTON | Tue Jan 1, 2013 1:04am IST

WASHINGTON (Reuters) - President Barack Obama said on Monday that a deal with Congress to avoid the U.S. "fiscal cliff," with its tax increases looming at midnight, was close, but he warned that it was not yet complete.

"Today it appears that an agreement to prevent this New Year's tax hike is within sight, but it is not done," Obama said during remarks at the White House complex.

"There are still issues left to resolve, but we're hopeful that Congress can get it done, but it's not done."

The president made his remarks surrounded by cheering supporters identified as "middle class Americans."

Obama, who won re-election in November partially on a promise to raise tax rates for the top two percent of U.S. earners, said the deal would ensure that taxes do not go up for middle income families.

He stressed that it would include an extension of unemployment benefits for the long-term jobless and extension of popular tax credits.

Obama said the agreement being worked out with Republican leaders in Congress would not include a long-term solution to the government's debt problem.

"My preference would have been to solve all these problems in the context of a larger agreement, a bigger deal, a grand bargain, whatever you want to call it that solves our deficit problems in a balanced and responsible way," he said.

"But with this Congress that was obviously a little too much to hope for at this time. Maybe we can do it in stages. We're going to solve this problem instead in several steps."

The outlines of a deal in the U.S. Senate include raising income tax rates for individuals making more than $400,000 a year and households making more than $450,000 a year, but a sticking point remains on how long to delay automatic spending cuts to defense and domestic programs, known as a "sequester."

Obama stressed that a deal over those spending cuts had to include revenue.

"Any agreement we have to deal with these automatic spending cuts that are being threatened for next month, those also have to be balanced," he said.

"That means that revenues have to be part of the equation in turning off the sequester, in eliminating these automatic spending cuts, as well as spending cuts."

The same would be true for any future deficit-cutting agreement, he said.

As he often stresses, Obama said deficit reduction would have to follow the principle of not hurting senior citizens, students, or middle class families.

"If we're going to be serious about deficit reduction and debt reduction, then it's going to have to be a matter of shared sacrifice, at least as long as I'm president, and I'm going to be president for the next four years," he said. (Reporting by Jeff Mason, Mark Felsenthal, Tabassum Zakaria, Roberta Rampton, David Morgan)


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Muted New Year's Eve as India mourns rape victim

A student prays during a vigil for a gang rape victim, who was assaulted in New Delhi, in Ahmedabad December 31, 2012. REUTERS/Amit Dave

A student prays during a vigil for a gang rape victim, who was assaulted in New Delhi, in Ahmedabad December 31, 2012.

Credit: Reuters/Amit Dave

NEW DELHI | Mon Dec 31, 2012 11:14pm IST

NEW DELHI (Reuters) - The armed forces cancelled New Year's Eve parties on Monday, reflecting the sombre mood across India after the gang rape and murder of a student that triggered an international outcry.

High-end clubs, politicians and ordinary Indians also called off celebrations as a mark of respect for the 23-year-old woman who died on Saturday two weeks after her brutal assault.

The attack prompted protests and a national debate that revealed deep fissures in Indian society, where staunchly patriarchal views about women clash with a fast-modernising urban culture.

Authorities clamped down on demonstrations in the heart of the city before Christmas, but hundreds of people gathered for vigils on Monday night and more events were planned across the city.

The army, navy and air force were ordered to cancel any parties, said a defence ministry spokesman.

"There is no New Year celebration ... There will be a candlelight tribute at 6 pm. After that the club will be closed," said Rajiv Hora, secretary of the Delhi Golf Club in the centre of the capital.

The Press Club of India and the ruling Congress Party also cancelled parties as did the Gymkhana Club, a private members' organisation known for its lavish end-of-year celebrations.

The December 16 attack highlighted an epidemic of violence against women in India, where one rape is reported on average every 20 minutes.

"We are extremely concerned about the number of rape cases throughout India and the widespread pattern of violence against women," said Lise Grande, U.N. Resident Coordinator in India.

"It is alarming that too many of these cases are children. One in three of the rape victims is a child," she added.

The protests over the attack caught authorities by surprise and forced them to promise tough new laws and swift action to punish attackers and protect women.

The government has set up two panels headed by retired judges to recommend measures to ensure women's safety.

"In the New Year, there should be a revision of all laws related to crimes against women," Sushma Swaraj, a senior leader from the main Bharatiya Janata Party (BJP), told a gathering of supporters in the capital who met to express solidarity with the victim.

"We have asked the government to convene a special session of parliament where we can discuss the issue," Swaraj added.

A senior Congress party official told Reuters the government and main opposition parties had agreed there was a need for more severe punishments for sex offenders.

The Congress party was also discussing the option of including chemical castration as a penalty in future legislation, added the official, who asked not to be named.

Police detained five men and one teenager in connection with the crime, and are likely to press murder charges later this week. Prosecutors are expected to seek a death sentence for the adults.

India only executes criminals in extreme cases, most recently Ajmal Kasab, the only gunmen to survive a 2008 commando-style onslaught in Mumbai, who was hanged in November.

(Reporting by Aditya Kalra, Satarupa Bhattacharjya, Arup Roychoudhury, Suchitra Mohanty and Rajesh Kumar Singh; Writing by Frank Jack Daniel)


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U.S. Secretary of State Clinton hospitalised with blood clot

U.S. Secretary of State Hillary Clinton delivers a speech ''Frontlines and Frontiers: Making Human Rights a Human Reality'' at Dublin City University in Ireland December 6, 2012. REUTERS/Kevin Lamarque/Files

U.S. Secretary of State Hillary Clinton delivers a speech ''Frontlines and Frontiers: Making Human Rights a Human Reality'' at Dublin City University in Ireland December 6, 2012.

Credit: Reuters/Kevin Lamarque/Files

By Andrew Quinn

WASHINGTON | Mon Dec 31, 2012 9:30am IST

WASHINGTON (Reuters) - U.S. Secretary of State Hillary Clinton was admitted to a New York hospital on Sunday with a blood clot linked to a concussion she suffered earlier this month, the State Department said in an announcement that looked sure to fuel speculation over the health of one of America's best-known political figures.

Clinton, 65, has been out of the public spotlight since mid-December, when officials said she suffered a concussion after fainting due to a stomach virus contracted during a trip to Europe.

"In the course of a follow-up exam today, Secretary Clinton's doctors discovered a blood clot had formed, stemming from the concussion she sustained several weeks ago," State Department spokesman Philippe Reines said in a statement.

"She is being treated with anti-coagulants and is at New York-Presbyterian Hospital so that they can monitor the medication over the next 48 hours," Reines said. "They will determine if any further action is required."

U.S. officials said on December 15 that Clinton, who canceled an overseas trip because of the stomach virus, suffered a concussion after fainting due to dehydration.

They have since described her condition as improving and played down suggestions that it was more serious. She had been expected to return to work this week.

Clinton's illness, already the subject of widespread political speculation, forced her to cancel planned testimony to Congress on December 20 in connection with a report on the deadly attack on the U.S. diplomatic post in Benghazi, Libya.

The attack became the subject of heated political debate in the run-up to the U.S. presidential election in November, and Republican lawmakers have repeatedly demanded that Clinton appear to answer questions directly.

Clinton's two top deputies testified in her place on the September 11 attack in Benghazi, which killed the U.S. ambassador and three other Americans and raised questions about security at far-flung diplomatic posts.

Some Republican commentators have implied that Clinton was seeking to avoid questioning on the subject, suggestions that have been strongly rebutted by State Department officials.

Clinton has stressed that she remains ready to testify and was expected to appear before lawmakers this month before she steps down, as planned, around the time of Obama's inauguration for his second term in late January.

After narrowly losing the Democratic presidential nomination to Obama in 2008, Clinton has been consistently rated as the most popular member of his Cabinet and is often mentioned as a potential presidential candidate in 2016.

Any serious medical concern could throw a fresh question mark over her future plans, although she has frequently alluded to her general good health.

BLOOD THINNERS

Dr. Edward Ellerbeck, a professor at the University of Kansas School of Medicine, said clots are more common in people who are sedentary, genetically predisposed, or on certain types of medicines such as the contraceptive pill or Estrogen replacements.

Ellerbeck, who is not treating Clinton, said clots are usually treated with blood thinners, typically for three to six months, and generally carry a low risk of further complications

Clinton is not known to have any of the risk factors that increase the risk of abnormal clotting, such as atherosclerosis or autoimmune disorders.

Head injuries such as the one she sustained earlier this month are associated more with bleeding than with clotting.

In one well-known case of bleeding following a head injury, actress Natasha Richardson hit her head skiing in 2009 and seemed fine, but died two days later of a hematoma, or bleeding between the outer membrane of the brain and the skull.

Clinton has said she wants to take a break from public life and has laughed off suggestions that she may mount another bid to become the first woman president of the United States - a goal she came close to reaching in 2008.

Her stint as secretary of state has further burnished the credentials she earned as a political partner to her husband, former President Bill Clinton, and later as a Democratic senator from New York.

In the four years since she became Obama's surprise choice as the top U.S. diplomat, Clinton has broken travel records as she dealt with immediate crises, including Libya and Syria, and sought to manage longer-term challenges, including U.S. relations with China and Russia.

She has maintained a punishing travel schedule, and was diagnosed with the virus after a December trip that took her to the Czech Republic, NATO headquarters in Brussels, Dublin and Belfast - where she had her last public appearance on December 7.

Officials announced on December 9 that she was ill with the stomach virus, forcing her to cancel a trip to North Africa and the Gulf that was to include a stop in Morocco for a meeting on the Syria crisis.

READY TO STEP DOWN

Clinton has repeatedly said that she only intended to serve one term, and aides said she was on track to leave office within the next few weeks, once a successor is confirmed by the Senate.

Her last months in office have been overshadowed by the Benghazi attack, the first to kill a U.S. ambassador in the line of duty since 1979, which brought sharp criticism of the State Department.

An independent inquiry this month found widespread failures in both security planning and internal management in the department.

It did not find Clinton personally responsible for any security failures, although she publicly took overall responsibility for Benghazi and the safety and security of U.S. diplomats overseas.

The State Department's top security officer resigned from his post under pressure and three other mid-level employees were relieved of their duties after the inquiry released its report.

The controversy also cost U.S. Ambassador to the United Nations Susan Rice her chance to succeed Clinton as secretary of state.

Rice drew heavy Republican criticism for comments on several television talk shows in which she said the attack appeared to be the result of a spontaneous demonstration rather than a planned assault. She ultimately withdrew her name for consideration for the top diplomatic job.

Obama on December 21 nominated Senator John Kerry, the Massachusetts Democrat who heads the Senate Foreign Relations Committee, to fill the position of secretary of state.

(Additional reporting by Jilian Mincer and Sharon Begley.; Editing by Eric Walsh and Christopher Wilson)


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In Delhi student's gang rape & murder, two worlds collide

Schoolgirls pray to pay homage to a rape victim who was assaulted in New Delhi, at a school in Ahmedabad December 29, 2012. REUTERS/Amit Dave

1 of 3. Schoolgirls pray to pay homage to a rape victim who was assaulted in New Delhi, at a school in Ahmedabad December 29, 2012.

Credit: Reuters/Amit Dave

By Annie Banerji

NEW DELHI | Mon Dec 31, 2012 4:21pm IST

NEW DELHI (Reuters) - One of hundreds of attacks reported in New Delhi each year, the gang rape and murder of a medical student caught authorities and political parties flat-footed, slow to see that the assault on a private bus had come to symbolize an epidemic of crime against women.

In the moments before the December 16 attack, the 23-year-old woman from India's urban middle class, who had recently qualified as a trainee physiotherapist in a private Delhi hospital, and her male friend, a software engineer, were walking home from a cinema at a shopping mall in south Delhi, according to a police reconstruction of events.

A bus, part of a fleet of privately owned vehicles used as public transport across the city of 16 million, and known as India's "rape capital", was at the same time heading toward them. Earlier that day, it had ferried school students but was now empty except for five men and a teenage boy, including its crew, police said. Most of the men were from the city's slums.

One of the six - all now charged with murder - lured the couple onto the bus, promising to drop the woman home, police have said, quoting from an initial statement that she gave from her hospital bed before her condition deteriorated rapidly.

A few minutes into the ride, her friend, 28, grew suspicious when the bus deviated from the supposed route and the men locked the door, according to her statement. They then taunted her for being out with a man late at night, prompting the friend to intervene and provoking an initial scuffle.

The attackers then beat him with a metal rod, knocking him unconscious, before turning on the woman who had tried to come to his defence. Police say the men admitted after their arrest to torturing and raping the student "to teach her a lesson".

At one point, the bus driver gave the wheel to another of the accused and dragged the woman by the neck to the back of the vehicle and forced himself upon her. The other five then took turns raping her and also driving the bus, keeping it circling through the busy streets of India's capital city, police said.

The woman was raped for nearly an hour before the men pushed a metal rod inside her, severely damaging her internal organs, and then dumped both her and her friend on the roadside, 8 km (5 miles) from where they had boarded it, police said.

Robbed of their clothes and belongings, they were found half naked, bleeding and unconscious later that night by a passerby, who alerted the police.

Last year, a rape was reported on average every 20 minutes in India. Just 26 percent of the cases resulted in convictions, according to the National Crime Records Bureau, which registered 24,206 rapes in 2011, up from 22,141 the previous year.

At first, authorities treated the assault on the medical student as one crime among many, and they were not prepared for the furious public reaction that led to running battles between protesters and police near the heart of government in New Delhi.

FAMILY ROLE MODEL

The woman, whose identity has been withheld by police, gave her statement to a sub-divisional magistrate on December 21 in the intensive care unit of Delhi's Safdarjung Hospital, according to media reports. She was undergoing multiple surgical procedures and her condition later began to rapidly worsen.

Ten days after the attack and still in a critical condition, she was flown to Singapore for specialist treatment. She died in Singapore's Mount Elizabeth Hospital two days later. Her body was flown back to Delhi and cremated there on Sunday in a private ceremony.

Family members who had accompanied her to Singapore declined to speak to reporters, but relatives told the Times of India newspaper she had been a role model to her two younger brothers.

Unlike most traditional Indian families who only send their sons to fee-paying colleges or universities, her parents pinned their hopes on the daughter and took loans to fund her studies.

She was born and brought up in a middle class Delhi neighbourhood after her family moved to the city more than 20 years ago from Uttar Pradesh.

Her male friend recorded his statement to a court days after the attack and helped police identify the six accused. He left for his hometown in Uttar Pradesh late on Saturday, missing the woman's funeral, media reported.

SHAME, ANGER IN SLUM

Four of the accused, all in custody, live in the narrow by-lanes of Ravi Das Camp, a slum about 17 km (11 miles) from the woman's home in southwest Delhi. Inside the slum - home to some 1,200 people who eke out a meagre living as rickshaw pullers and tea hawkers - many demanded the death penalty for the accused.

"The incident has really shocked all of us. I don't know how I will get my children admitted to a school. The incident has earned a bad name to this place," said Pooja Kumari, a neighbour of one of the accused.

Girija Shankar, a student, said: "Our heads hang in shame because of the brutal act of these men. They must reap what they have sown."

The house of one of the accused was locked, with neighbours saying his family had left the city to escape the shame and anger. Meena, a 45-year-old neighbour, said she had wanted to join the protests that followed the rape, but was too scared.

"You never know when a mob may attack this slum and attack our houses. But we want to say we're as angry as the entire nation. We want them to be hanged," she said.

Two of the six alleged assailants come from outside Delhi, according to police. One is married with children and was arrested in his native village in Bihar and the other, a juvenile, is a runaway from a broken home in Uttar Pradesh.

In India, murder is punishable by death by hanging, except in the case of offenders aged below 18.

(Additional reporting by Suchitra Mohanty and Nita Bhalla; Editing by Mark Bendeich and Ian Geoghegan)


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BSE Sensex edges lower; posts strong gains in 2012

People walk pass the Bombay Stock Exchange (BSE) building displaying India's benchmark share index on its facade, in Mumbai September 30, 2009.

Credit: Reuters/Punit Paranjpe/Files


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Gold demand drops ahead of New Year celebration

A customer selects one-carat gold bangles during an exhibition in Jammu April 13, 2008. REUTERS/Amit Gupta/Files

A customer selects one-carat gold bangles during an exhibition in Jammu April 13, 2008.

Credit: Reuters/Amit Gupta/Files

MUMBAI | Mon Dec 31, 2012 3:43pm IST

MUMBAI (Reuters) - Gold demand in India, the world's biggest buyer of the metal, was weak on Monday due to year-end, and as prices nudged higher following gains in the world market.

* The actively traded gold contract for February delivery on the Multi Commodity Exchange (MCX) was 0.17 percent higher at 30,748 rupees per 10 grams as of 3:25 p.m.

* "Buying is very thin. People are busy with New Year celebration plans. Jewellers are also not active in the market," said a Mumbai-based dealer with a state-run bank.

"For the last few days prices are moving in a narrow-range. Breakout is needed on either side to attract buyers."

* The rupee, which rose on Monday, plays an important role in determining the landed cost of the dollar-quoted yellow metal.

* Overseas gold ticked up to around $1,663 an ounce and was on track for a twelfth straight annual gain, although wary investors stayed on the sidelines as last-ditch attempts to resolve a U.S. fiscal crisis seemed to be getting nowhere.

* The March silver contract on the MCX rose 0.24 percent to 57,801 rupees per kg.

(Reporting by Rajendra Jadhav; Editing by G.Ram Mohan)


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Al Qaeda in Yemen offers bounty for U.S. ambassador

U.S. Ambassador to Yemen Gerald Feierstein speaks during an interview in New York October 18, 2012. REUTERS/Brendan McDermid/Files

U.S. Ambassador to Yemen Gerald Feierstein speaks during an interview in New York October 18, 2012.

Credit: Reuters/Brendan McDermid/Files

DUBAI | Mon Dec 31, 2012 12:32pm IST

DUBAI (Reuters) - The Yemen-based branch of al Qaeda has offered a bounty for anyone who kills the U.S. ambassador to Yemen or an American soldier in the impoverished Arab state, a group that monitors Islamist websites said.

Al Qaeda in the Arabian Peninsula (AQAP) said it was offering three kilograms of gold for the killing of the U.S. ambassador in Sanaa, Gerald Feierstein, the U.S.-based SITE Intelligence Group said, citing an audio released by militants.

AQAP will also pay 5 million rials to whoever kills any American soldier in Yemen, it said.

The offer, valid for six months, was made "to encourage our Muslim Ummah (nation), and to expand the circle of the jihad (holy war) by the masses," SITE said, citing the audio.

AQAP, mostly militants from Yemen and Saudi Arabia, is regarded by the United States as the most dangerous branch of the network founded by Osama bin Laden.

In September, AQAP urged Muslims to step up protests and kill U.S. diplomats in Muslim countries over a film denigrating the Prophet Mohammad, which it said was another chapter in the "crusader wars" against Islam.

The film provoked an outcry among Muslims, who deem any depiction of the Prophet as blasphemous and triggered violent attacks on embassies in countries in Asia and the Middle East.

Four U.S. officials including the ambassador to Libya were killed in the aftermath. The Pentagon said it had sent a platoon of Marines to Yemen after demonstrators stormed the U.S. Embassy in Sanaa.

A U.S. ally, Yemen is struggling against challenges on many fronts since mass protests forced veteran leader Ali Abdullah Saleh to step down in February after decades in power.

President Abd-Rabbu Mansour Hadi's government is trying to re-establish order and unify the army.

Washington, which has pursued a campaign of assassination by drone and missile against suspected al Qaeda members, backed a military offensive in May to recapture areas of Abyan province. But militants have struck back with a series of bombings and killings.

(Reporting by Rania El Gamal; editing by Todd Eastham)


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Hours from 'fiscal cliff', Washington still awaits deal

The U.S. Capitol building is pictured behind a fence as lawmakers return from the Christmas recess in Washington December 27, 2012. REUTERS/Mary F. Calvert

The U.S. Capitol building is pictured behind a fence as lawmakers return from the Christmas recess in Washington December 27, 2012.

Credit: Reuters/Mary F. Calvert

By Fred Barbash

WASHINGTON | Mon Dec 31, 2012 12:09pm IST

WASHINGTON (Reuters) - The U.S. Congress comes back on Monday without a deal to avert the "fiscal cliff" and only a few hours of actual legislative time scheduled in which to act if an agreement materializes.

Negotiations involving Vice President Joe Biden and Senate Republican leader Mitch McConnell appeared to offer the last hope for avoiding the across-the-board tax increases and draconian cuts in the federal budget that will be triggered at the start of the New Year because of a deficit-reduction law enacted in August, 2011.

A jolt from the financial markets could also prod the parties, as it has occasionally in the past.

"I believe investors will show their displeasure" at the lack of progress in Washington, said Mohannad Aama, managing director at Beam Capital Management, an investment advisory firm in New York.

Democratic and Republican leaders in the Senate had hoped to clear the way for swift action on Sunday. But with the two sides still at loggerheads in talks, Senate Democratic leader Harry Reid postponed any possible votes and the Senate adjourned until Monday.

The main sticking point between Republicans and Democrats remained whether to extend existing tax rates for everyone, as Republicans want, or just for those earning below $250,000 to $400,000, as Democrats have proposed.

Also at issue were Republican demands for larger cuts in spending than those offered by President Barack Obama.

Hopes for a "grand bargain" of deficit-reduction measures vanished weeks ago as talks stalled.

While Congress has the capacity to move swiftly when motivated, the leaders of the U.S. House of Representatives and the Senate have left themselves little time for what could be a complicated day of procedural maneuvering in the event of an agreement.

House Speaker John Boehner has insisted that the Senate act first, but that chamber does not begin legislative business until about noon Monday.

OTHER BUSINESS ALSO ON AGENDA

And the cliff is not the only business on the House agenda. Farm-state lawmakers are seeking a one-year extension of the expiring U.S. farm law to head off a possible doubling of retail milk prices to $7 or more a gallon in early 2013.

Relief for victims of Superstorm Sandy is waiting in line in the House as well, though it could still consider a Senate bill on assistance for the storm until January 2, the last day of the Congress that was elected in November 2010.

Expiring along with low tax rates at midnight Monday are a raft of other tax measures effecting tens of millions of Americans.

A payroll tax holiday Americans have enjoyed for two years looks like the most certain casualty as neither Republicans or Democrats have shown much interest in continuing it, in part because the tax funds the Social Security retirement program.

The current 4.2 percent payroll tax rate paid by about 160 million workers will revert to the previous 6.2 percent rate after December 31, and will be the most immediate hit to taxpayers.

A "patch" for the Alternative Minimum Tax that would prevent millions of middle-class Americans from being taxed as if they were rich, could go over the cliff as well. Both Republicans and Democrats support doing another patch, but have not approved one.

At best, the Internal Revenue Service has warned that as many as 100 million taxpayers could face refund delays without an AMT fix. At worst, they could face higher taxes unless Congress comes back with a retroactive fix.

After Tuesday, Congress could move for retroactive relief on any or all of the tax and spending issues. But that would require compromises that Republicans and Democrats have been unwilling to make so far.

Obama said on Sunday he plans on pushing legislation as soon as January 4 to reverse the tax hikes for all but the wealthy.

(Editing by Christopher Wilson)


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Kingfisher Airlines set to lose flying licence

A lone Kingfisher Airlines customer waits in a check-in queue at Mumbai's domestic airport February 21, 2012. REUTERS/Vivek Prakash/Files

A lone Kingfisher Airlines customer waits in a check-in queue at Mumbai's domestic airport February 21, 2012.

Credit: Reuters/Vivek Prakash/Files

NEW DELHI | Mon Dec 31, 2012 2:31pm IST

NEW DELHI (Reuters) - Debt-laden Kingfisher Airlines is set to lose its licence to fly after it failed to convince regulators about how it plans to fund operations under a proposal to get it flying again, a senior government source said.

Kingfisher's licence is due to expire on December 31, and a request to extend that will not be granted unless the suspended carrier can come up with a revival plan. This will effectively remove one scheduled carrier from Indian skies, at least for now.

Kingfisher has two years from now to get its license renewed , but it has to convince banks, airports, tax authorities and its staff about its viability , the source, who has direct knowledge of the matter, said.

Kingfisher, which has not flown since October, owes money to all of them.

The airline submitted a revival plan to the Directorate General of Civil Aviation (DGCA) last week, but that did not provide details of how it will fund operations, aviation minister Ajit Singh said on Wednesday.

Last month, Diageo Plc (DGE.L) bought a majority stake in United Spirits (UNSP.NS), also a UB Group company, for $2.1 billion. UB did not specify if part of that money would be injected into Kingfisher.

The airline, owned by liquor tycoon Vijay Mallya, has been trying unsuccessfully to raise fresh cash for more than a year, and is hoping to tap Abu-Dhabi's Etihad Airways as an investor.

Kingfisher officials have not sought an appointment with DGCA yet, the source said.

The airline's shares fell as much as 4.3 percent in early trade, but were trading 0.6 percent lower at 2:29 p.m.

(Reporting by Anurag Kotoky)


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Sunday, 30 December 2012

Distracted Williams sounds ominous warning in season opener

Serena Williams of the U.S. reacts after missing a point against compatriot Varvara Lepchenko during their women's singles match at the Brisbane International tennis tournament December 30, 2012. REUTERS/Daniel Munoz

Serena Williams of the U.S. reacts after missing a point against compatriot Varvara Lepchenko during their women's singles match at the Brisbane International tennis tournament December 30, 2012.

Credit: Reuters/Daniel Munoz

By Will Swanton

BRISBANE | Sun Dec 30, 2012 6:40pm IST

BRISBANE (Reuters) - An angry and impatient Serena Williams overcame blustery conditions at the Brisbane International on Sunday in an ominous beginning to her only tournament before her charge at a 16th major title at the Australian Open next month.

The American threw her hands in the air, shook her head, gesticulated towards her coach and stomped her feet in petulant protest - but that did little to help compatriot Varvara Lepchenko who suffered a 6-2 6-1 first round defeat.

Howling with frustration in her first match since winning the WTA Championships at Istanbul in October, lacking rhythm in swirling winds on Pat Rafter Arena, Williams still delivered enough booming serves and punishing groundstrokes to prevail in a formidable if cantankerous display.

The reigning Wimbledon, Olympic and U.S. Open champion told reporters a calendar-year grand slam was very much on her mind at the start of the season.

Williams held all four major titles in the so-called Serena Slam of 2002-2003 but the holy grail of professional tennis is to win the Australian Open, French Open, Wimbledon and U.S. Open tournaments in the same calendar year.

The American claimed world number one Victoria Azarenka and number two Maria Sharapova, and perhaps a few fringe-dwellers, were eyeing off a near-impossible feat not achieved since Steffi Graf's unbeaten run through 1988.

"I think whoever wins the Australian Open will have that same thought," Williams said.

"I think there is no way that Victoria or Maria or maybe some other players don't have that same thought. I think I definitely feel that way."

Both Azarenka and Sharapova are in a red-hot Brisbane field with Williams. Of the world's top 10, only Agnieszka Radwanska and Li Na are missing.

The predictability of her defeat of Lepchenko was matched by the level of emotion surrounding Australian wildcard Jarmila Gajdosova's victory on the opening day.

HIGH EMOTION

Playing her first tournament since the passing in September of her mother, also named Jarmila, and with her world ranking having plummeted from a career high of 25 to 183 in the last 18 months, Gajdosova roared home from a one-set deficit to stun Italy's world number 16 Roberta Vinci.

Gajdosova wept after a 4-6 6-1 6-3 triumph that set up a second-round showdown against French Open champion Sharapova.

"There have been a lot of things happening in my life," Gajdosova said.

"As you all know, my mom passed away in September. It's been a difficult time. First Christmas, as well, without her. My dad is here. My brother and his wife and son. It was my first match in front of them and my first match in Australia, after a long time, without my mum."

Sixth-seeded Czech Petra Kvitova recovered from a pre-tournament asthma scare to defeat Spain's Carla Suarez-Navarro 6-3 6-4.

Kvitova has been gasping and wheezing in Brisbane's humid weather and revealed one of her recent attacks had been her worst in three years.

The 2011 Wimbledon champion was unaware she was asthmatic until she nearly collapsed during an event in New York in 2009.

"I was playing a tournament in the Bronx and after about five minutes I had to sit down and relax and have a drink because I just couldn't move and I couldn't play," she wrote in a column for the Courier-Mail newspaper.

"I still feel really uncomfortable when I'm in this sort of hot and humid weather and it was at practise on Friday that I started to feel a bit similar to what I did in The Bronx." (Editing by Justin Palmer)


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Old Aleppo, frontline ghost town of ruined treasures

A Free Syrian Army fighter carries his weapon as he stands on a street in Aleppo December 29, 2012. REUTERS/Muzaffar Salman

A Free Syrian Army fighter carries his weapon as he stands on a street in Aleppo December 29, 2012.

Credit: Reuters/Muzaffar Salman

By Yara Bayoumy

ALEPPO, Syria | Sun Dec 30, 2012 3:28pm IST

ALEPPO, Syria (Reuters) - A 13th century mosque is shuttered, its tottering minaret struck at the base by a shell. Snipers fire from nests atop the immense stone walls of the citadel, where ancient Greek, Roman, Byzantine, Arab and Turkish warriors once perched.

Until a few months ago, Old Aleppo was both a living museum and a breathing city, where souk shoppers haggled over spices, books and olive-oil soap beneath wrought-iron filigree balconies and wooden lattice screens.

Aleppo is Syria's largest city and economic hub. Its old district, with towering fortifications built by the medieval dynasty of Saladin after his 12th century victory over the crusaders, is also a UNESCO heritage site, its architecture declared a marvel of human achievement by the United Nations cultural body.

Today it is a war zone and a ruin. Corrugated iron sheets pocked with bullet holes cover alleyways housing shuttered, burnt or demolished market stalls. Rebel fighters zigzag around in cars blasting revolutionary music.

"Old Aleppo was the foundation of this world," said Haj Amer, who owns a printing press in the old bazaar. "What really upset us are the mosques that were destroyed."

"This area is my roots, my life since 1975," he added. "I'll always stay."

Syria's civil war has killed an estimated 44,000 people and driven half a million from their homes. It reached Aleppo with full wrath six months ago, and though rebels now control much of the city, parts of it remain a battleground.

U.N. officials who declared Old Aleppo a heritage site have catalogued some of the wonders to be found here.

"The 13th century royal palace, with its fine stalactite and honeycomb entrance porch, is inlaid with white marble," they wrote. "The throne room, dating from the Mameluke period (15th-16th centuries) has been tastefully restored: Syrian artists and craftsmen have recreated the luxurious setting of the court - the ceiling with its decorated beams and caissons, lighting, windows, polychrome columns - all are a tribute to their skill. There are around 200 minarets, some squat like defensive towers, others slender as needles."

"ASSAD'S REVENGE"

During a walk through the old town, residents show the damage and describe their own heartbreak.

At the al-Uthmaniya mosque, a gaping hole has been blown through a dome dating to 1728. Concrete floors bear the marks of a shell, and the glass that decorated the tall arches at the entrance to the prayer hall has gone, shattered.

"There were no gunmen in this mosque," said 70-year-old Abu Mohammed, a local man dressed in traditional robes, who often prays here.

"Two weeks ago, we were leaving afternoon prayers, and sitting in the shade when a shell blasted into the courtyard."

Further on, at an Ottoman-era bathhouse that bustled before the war, the dank stench of an abandoned swimming pool fills the domed stone underground rooms.

A shell has blasted through the atrium dome, and bits of broken coloured glass lie scattered around a fountain. Iron-lattice lanterns lie on the floor. An empty vending machine stands near white marble basins and coloured ceramic mosaics.

People have slowly begun to return to the ruins of the old city.

"We came back because there was nowhere else for us to go," said 12-year-old Riham, accompanying her grandmother down a cobbled alley to a clinic. "We don't even recognise the alleyways any more."

In the bazaar, a few surviving stalls are open selling sweets and sodas. Men drink tea outside workshops.

"Bashar al-Assad destroyed the mosques and old souks, one of the oldest souks in the world," said Abu Othman, a fighter in the rebel Free Syria Army's al-Tawheed Brigade, wearing the group's green fatigues.

"We haven't seen water and electricity in two months," he said. "It's as if this man has enmity between himself and the ruins: the souks and the mosques. And even with the sellers. Because they did not hail his oppressiveness, he got his revenge by burning all their property." (Editing by Peter Graff and Will Waterman)


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With hours remaining, hopes rise for stopgap U.S. fiscal deal

The dome of the U.S. Capitol is seen through the ceiling of the Capitol Visitor Center in Washington, December 29, 2012. REUTERS/Mary Calvert

The dome of the U.S. Capitol is seen through the ceiling of the Capitol Visitor Center in Washington, December 29, 2012.

Credit: Reuters/Mary Calvert

By Jeff Mason

WASHINGTON | Mon Dec 31, 2012 12:04am IST

WASHINGTON (Reuters) - Hopes rose on Sunday that U.S. lawmakers could reach at least a limited deal to prevent the still-recovering economy from tumbling off a "fiscal cliff" at the New Year, sending the country into another recession.

Aides to Senate Majority Leader Harry Reid, a Democrat, and Senate Republican leader Mitch McConnell worked on a compromise over the weekend to stop automatic tax hikes for most Americans on January 1. Any agreement needs to be rushed through both chambers of Congress before midnight on Monday.

The main focus of negotiations was tax hikes on the wealthy, an increase sought by President Barack Obama but opposed by Republicans, particularly fiscal conservatives in the House of Representatives.

"Well, there are certainly no breakthroughs yet between Senator McConnell and Senator Reid, but there's a real possibility of a deal," Senator Charles Schumer, a Democrat from New York, said on the ABC program "This Week."

"I don't disagree with Chuck," said Senator Jon Kyl, a Republican from Arizona.

Another Republican senator, Lindsey Graham, conceded that an agreement would end up raising income taxes on the wealthy, thus sparing the rest of the country from the looming income tax hikes.

"President Obama is going to get tax rate increases. The president won," Graham tweeted, echoing earlier comments he made on "Fox News Sunday." He told the show that the chances of a bipartisan deal before the New Year's deadline were "exceedingly good."

Obama has alternatively offered Republicans a deal to increase income taxes for households earning over $250,000 a year, and over $400,000 a year.

Any deal on taxes in the Senate might meet resistance in the House from conservative Republicans.

If the politicians cannot agree, then tax increases and across-the-board government spending cuts will begin on January 1. That would take $600 billion out of the economy, push unemployment up and curb federal spending.

"I think people don't want to go over the cliff if we can avoid it," said Graham, a conservative.

Putting pressure on Congress, Obama made a rare appearance on a Sunday television talk show where he warned of the fallout on financial markets if the two sides did not reach an agreement.

"If people start seeing that on January 1st this problem still hasn't been solved, that we haven't seen the kind of deficit reduction that we could have, had the Republicans been willing to take the deal that I gave them ... then obviously that's going to have an adverse reaction in the markets," Obama said on NBC's "Meet the Press."

He said he would avoid tax increases for most Americans, even if the talks fall apart.

"And if all else fails, if Republicans do in fact decide to block it, so that taxes on middle class families do in fact go up on January 1st, then we'll come back with a new Congress on January 4th and the first bill that will be introduced on the floor will be to cut taxes on middle class families," Obama said.

The Senate - where the Democrats hold sway - was scheduled to hold a rare Sunday session beginning at 1 p.m. EST (1800 GMT), but it was not clear whether the chamber would have fiscal-cliff legislation to act upon.

The Republican-controlled House also returns on Sunday and can vote on any deal in the evening if need be.

(Additional reporting by Tabassum Zakaria, Fred Barbash and Richard Cowan. Writing by Alistair Bell)


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No end to Syria war if sides refuse to talk: envoy

A general view shows Aleppo's historical citadel controlled by forces loyal to Syria's President Bashar al-Assad December 30, 2012. REUTERS/Muzaffar Salman

1 of 3. A general view shows Aleppo's historical citadel controlled by forces loyal to Syria's President Bashar al-Assad December 30, 2012.

Credit: Reuters/Muzaffar Salman

By Yara Bayoumy and Maria Golovnina

AZAZ, Syria/CAIRO | Sun Dec 30, 2012 11:57pm IST

AZAZ, Syria/CAIRO (Reuters) - The international peace negotiator for Syria pleaded with outside countries on Sunday to push the warring parties to the table for talks, warning that the country would become a failed state ruled by warlords unless diplomacy is given a chance.

Lakhdar Brahimi, who inherited the seemingly impossible task of bringing an end to the war after his predecessor Kofi Annan resigned in frustration in July, has launched an intensified diplomatic campaign to win backing for a peace plan.

He spent five days this week in Damascus, where he met President Bashar al-Assad. On Saturday he visited Assad's main international backers in Moscow, and on Sunday he travelled to Cairo, where President Mohamed Mursi has emerged as one of Assad's most vocal Arab opponents.

"The problem is that both sides aren't speaking to one another," he said. "This is where help is needed from outside."

Brahimi's peace plan - inherited from Annan and agreed to in principle in Geneva in June by countries that both oppose and support Assad - has the seemingly fatal flaw of making no mention of whether Assad would leave power.

The Syrian leader's opponents - who have seized much of the north and east of the country in the past six months - say they will not cease fire or join any talks unless Assad goes and have largely dismissed Brahimi's initiative.

But Brahimi says the plan is the only one on the table, and predicts "hell" if countries do not push both sides to talk.

"The situation in Syria is bad, very, very bad, and it is getting worse, and the pace of deterioration is increasing," Brahimi told reporters.

"People are talking about Syria being split into a number of small states ... This is not what will happen. What will happen is Somalisation: warlords." Somalia has been without effective central government since civil war broke out there in 1991.

More than 45,000 people have been killed in Syria's 21-month war, the longest and deadliest of the revolts that began sweeping the Arab world two years ago.

The rebels are mainly from the Sunni Muslim majority, fighting against Assad, a member of the Shi'ite-derived Alawite minority sect, giving the war a dangerous sectarian dimension.

The rebels increasingly believe that their military successes of the past half year are bringing victory within reach. But Assad's forces still hold the densely-populated southwest of the country, the main north-south highway and the Mediterranean coast in the northwest.

The government also holds airbases scattered throughout the country, and has an arsenal including jets, helicopters, missiles and artillery that the fighters cannot match.

ASSAD FORCES SEIZE HOMS DISTRICT

Government troops scored a victory on Saturday after several days of fighting, seizing a Sunni district in Homs, a central town that controls the vital road linking Damascus to the coast.

Opposition activists said on Sunday that many people had been killed in the Deir Baalbeh district after it was captured, although it was not immediately possible to verify claims that a "massacre" had taken place. The opposition Syrian Network for Human Rights said it documented the summary execution of 17 men.

"They were young and old, mostly refugees who had fled to Deir Baalbeh from central parts of Homs," it said in a statement. Footage taken by activists showed the bodies of eight men with what appeared to be bullet wounds in the face and head.

With severe restrictions by Syrian authorities on independent media in place since the revolt broke out in March last year, the footage could not be confirmed.

Najati Tayyara, a veteran opposition campaigner from Homs in contact with the city, told Reuters residents believed the death toll was as high as 260, although the area was sealed off by government forces and allied militia.

"I am afraid that we have seen a massacre in Deir Baalbeh and a military setback for the rebels because of their lack of organisation. They have been in need of ammunition for a long time and it finally ran out," he said.

"Communications are difficult and we are trying to piece together what happened in Deir Baalbeh. We so far know that regime forces went in after the rebels retreated and summarily executed dozens of people, including civilians."

Tayyara said the fall of Deir Baalbeh undermined supply lines to rebel held areas inside the city.

Bilal al-Homsi, an opposition activist in Old Homs, said MiG warplanes bombarded the area overnight and medium range rockets and hit the area of al-Khalidiya, a rebel-held Sunni district.

In the north, opposition activists said fighters had surrounded an air defence base near Aleppo airport, south of the contested city. Fighting raged in the area and warplanes bombed rebel positions near the base to try and break the siege.

In the northern city of Azaz, where activists said 11 people were killed when air strikes destroyed six homes, gravediggers were already digging graves for whichever victims will be next.

"We know the plane is coming to hit us, so we're being prepared," said Abu Sulaiman, one of a few men digging at the Sheikh Saad cemetery.

"Massacres are happening. We're putting every two or three bodies together. We've been working and digging since 6 in the morning. We're going to dig 10 new graves today," he said.

"We're preparing them. Maybe we'll be buried in them."

Fida, a 15-year-old girl in a green scarf and purple coat looked on as her father shovelled dirt from the gravesite. The dead from the previous day's attacks included friends she recognised when their shrouds were pulled back.

"Yesterday was the first time I uncovered blankets to discover that my friends had died," she said, as young children near the cemetery played hopscotch on the streets and kicked stones about.

"I was just about to go visit them about a half hour before the strike hit," she said. "In the end I visited them when they were dead." (Adiditional reporting by Khaled Yacoub Oweis in Amman, Ayman Samir and Tom Perry in Cairo and Peter Graff in Beirut; Writing by Peter Graff; Editing by Rosalind Russell)


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Former England captain Greig dies - reports

File picture of former England cricket player Tony Greig (L) with South African rugby union team member Chiliboy Ralapele in Sydney August 4, 2006. Australian media reported that Greig died on Saturday at age 66. REUTERS/David Gray/Files

File picture of former England cricket player Tony Greig (L) with South African rugby union team member Chiliboy Ralapele in Sydney August 4, 2006. Australian media reported that Greig died on Saturday at age 66.

Credit: Reuters/David Gray/Files

REUTERS - Former England captain and prominent cricket pundit Tony Greig has died at the age of 66, Australian media reported on Saturday.

"In sad news, beloved Tony Greig, former England Cricket Captain has passed away today at the age of 66. To his family and friends we pass on our best wishes," broadcaster Channel Nine, which employed Greig as a cricket commentator, said on Twitter.

Greig, who played 58 tests for England, was diagnosed with lung cancer in October.

The South Africa-born Greig made his test debut for England against Australia in Manchester in 1972 and amassed 3,599 runs for an average of 40.43 until his last match at the Oval against the same opponents in 1977.

An imposing figure standing at 6ft-6in, Greig was also a successful bowler with 141 test wickets at an average of 32.20.

Greig's captaincy ended in controversy when he was stripped of the post for his role in helping late Australian businessman Kerry Packer set up World Series Cricket in the 1970s.

Greig, a long-time resident Down Under, became a summer fixture in Australian lounge-rooms as a commentator for Channel Nine's international cricket coverage, among a number of roles in the media.

(Reporting by Ian Ransom; Editing by Greg Stutchbury)


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PM pledges action after gang rape victim's death

Prime Minister Manmohan Singh speaks during the meeting of the 57th National Development Council (NDC) in New Delhi December 27, 2012.

Credit: Reuters/B Mathur


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Pakistani Taliban execute 21 captured paramilitary men

By Jibran Ahmad

PESHAWAR Pakistan | Sun Dec 30, 2012 12:05pm IST

PESHAWAR Pakistan (Reuters) - Pakistani Taliban militants have executed 21 paramilitary force men who were captured in attacks on their posts late last week, government officials said on Sunday.

The men, who were kidnapped on Friday in attacks on three checkpoints near the city of Peshawar, were lined up before being shot one-by-one, officials said.

"They were tied up and blindfolded," Naveed Anwar, a senior administration official in the Khyber region, said by telephone.

One man was badly wounded but survived, Anwar said, adding that the 21 bodies had been found after local tribesmen notified security services.

"They were lined up and shot in the head," said Habibullah Arif, another local official. He said the wounded man and another man had managed to escape.

A Taliban spokesman claimed responsibility and pledged to carry out further attacks on Pakistani security forces.

"We killed all the kidnapped men after a council of senior clerics gave a verdict for their execution. We didn't make any demand for their release because we don't spare any prisoners who are caught during fighting," said Ihsanullah Ihsan.

The men were from a paramilitary force recruited from members of ethnic Pashtun tribes in northwestern Pakistan. The militias support the government in its efforts against Islamist militants battling the state.

The killing of the men followed two high-profile attacks in Peshawar this month. Suicide bombers attacked Peshawar's airport on December 15 and a bomb killed a senior Pashtun nationalist politician and eight other people at a rally on December 22.

The violence underscores the Taliban's ability to carry out high-profile attacks in major cities even as the amount of territory they control has shrunk over the past three years. (Additional reporting by Saud Mehsud in Dera Ismail Khan.; Writing by Katharine Houreld; Editing by Robert Birsel and Ron Popeski)


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Six held over rape of woman in Delhi charged with murder: police

A girl holds a placard as she takes part in a protest rally in Hyderabad December 29, 2012.

Credit: Reuters/Krishnendu Halder


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Blast in Pakistan's Karachi kills six on bus, 48 hurt

By Imtiaz Shah

KARACHI, Pakistan | Sat Dec 29, 2012 6:23pm IST

KARACHI, Pakistan (Reuters) - A bomb went off on a bus in the southern Pakistani city of Karachi on Saturday killing six people and wounding 48, police and a hospital official said.

Pakistan's commercial capital and biggest city has seen numerous militant attacks over the past 10 years and is also plagued by violence between rival ethnic-based factions.

The bus sustained serious damage in the explosion and a subsequent fire. While police said the bomb had been planted on the bus, provincial official Sharfud Din Memon said it was left on a motor-bike and went off as the bus passed.

Eight of the wounded were in critical condition, said Seemi Jamali, a doctor at Jinnah Hospital.

(Writing By Katharine Houreld; Editing by Robert Birsel)


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Mohun Bagan, India's oldest soccer club, hit with two-year ban

Soccer fans watch Bayern Munich team captain and goalkeeper Oliver Kahn's felicitation ceremony during an exhibition match against Mohun Bagan at Salt Lake Stadium, in Kolkata, May 27, 2008. REUTERS/Jayanta Shaw/Files

Soccer fans watch Bayern Munich team captain and goalkeeper Oliver Kahn's felicitation ceremony during an exhibition match against Mohun Bagan at Salt Lake Stadium, in Kolkata, May 27, 2008.

Credit: Reuters/Jayanta Shaw/Files

NEW DELHI | Sat Dec 29, 2012 2:52pm IST

NEW DELHI (Reuters) - India's oldest soccer club, Mohun Bagan, have been kicked out of the league and banned for a further two years after refusing to take the field for the second half of their crowd trouble-hit derby against East Bengal earlier this month.

Mohun Bagan were trailing their arch-rivals 1-0 on December 9 in Kolkata when one of their players was hit by a stone hurled from the stands.

The match resumed after a near 15-minute interruption but Mohun Bagan, founded in 1889, did not return to the field.

The All India Football Federation (AIFF) appointed a retired judge to look into the case and his finding got the approval of an I-League Core Committee on Saturday.

An AIFF statement said Mohun Bagan had been thrown out of the ongoing I-League competition, their matches had been declared null and void, and they would be disqualified from the next two editions of the league.

The club would also have to "return to the I-League any financial stipends that had been paid to it by I-League throughout the competition 2012-2013 or forfeit the right to the same," the AIFF said in a statement.

A revised fixture and points table would soon be issued, the AIFF added.

The I-League committee will decide on any possible additional sanction or fine in a January 9 meeting where the club would be asked to present its case. (Reporting by Amlan Chakraborty in New Delhi; editing by Peter Rutherford)


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Woman charged with 'murder as a hate crime' in fatal subway pushing

New York City police officers escort 31-year-old Erika Menendez to an awaiting car as she screams, at New York City Police department 112th Precinct in the Queens Borough of New York, December 29, 2012. REUTERS/Joshua Lott

New York City police officers escort 31-year-old Erika Menendez to an awaiting car as she screams, at New York City Police department 112th Precinct in the Queens Borough of New York, December 29, 2012.

Credit: Reuters/Joshua Lott

NEW YORK | Sun Dec 30, 2012 9:19am IST

NEW YORK (Reuters) - A woman suspected of shoving a man to his death in front of an oncoming New York subway train was arrested on Saturday and charged with "second-degree murder as a hate crime" in the second such fatality this month for one of the world's busiest transit systems.

The district attorney for the New York City borough of Queens said Erika Menendez, 31, who was seen pacing the subway platform and muttering to herself before the attack, had told investigators that she pushed the victim, Sunando Sen, 46, on Thursday because "I hate Hindus and Muslims."

Menendez was taken into custody in Brooklyn by authorities acting on a tip from someone who recognized the suspect from video of the incident that was aired on television, a spokeswoman for the district attorney told Reuters.

"The defendant is accused of committing what is every subway commuter's worst nightmare - being suddenly and senselessly pushed into the path of an oncoming train," District Attorney Richard Brown said in a statement.

"Beyond that, the hateful remarks allegedly made by the defendant and which precipitated the defendant's actions can never be tolerated in a civilized society," he said.

The prosecutor's statement quoted Menendez as telling investigators: "I pushed a Muslim off the train tracks because I hate Hindus and Muslims ever since 2001 when they put down the twin towers I've been beating them up."

Her alleged admission was an apparent reference to the September 11, 2001, attack on Manhattan's World Trade Center by Muslim extremists who flew two hijacked jetliners into the twin towers.

Brown's statement gave no indication of the victim's ethnicity or religion or Menendez might have taken Sen to be a Muslim.

The spokeswoman for the prosecutor's office, Meris Campbell, said she did not believe the victim was wearing any clothing that would have led someone to identify him as being a Muslim.

Menendez is awaiting arraignment in Queens Criminal Court on a criminal complaint charging her with second-degree murder as a hate crime, an offense that carries a minimum sentence of 20 years to life in prison. The minimum penalty for second-degree murder alone is 15 years to life, Campbell said.

If convicted, Menendez could face a maximum penalty of 25 years to life.

Witnesses told police a woman appeared to be mumbling and pacing Thursday evening before she approached an unsuspecting man from behind on the platform of an elevated station in the borough of Queens.

She then shoved him onto the subway track as the train pulled into the station, witnesses said. Brown said Sen died of multiple blunt-force trauma.

After shoving Sen on Thursday, the suspect ran from the station to the street in a scene caught on surveillance video footage that police released on Friday as they searched for her.

Sen's death was the second this month of a New York subway rider pushed onto the tracks of the city's more than 100-year-old subway system.

On December 3, Ki-Suck Han was killed after being shoved onto subway tracks in Manhattan as a train entered a station near Times Square. A suspect, Naeem Davis, has been charged with second-degree murder. Authorities have disclosed a possible motive.

Including Thursday's incident, 139 people have been struck by New York City subway trains so far in 2012, and 54 of them died, a Metropolitan Transportation Authority spokesman said on Friday. He said the tally was preliminary and subject to change. (Reporting by Colleen Jenkins, Brendan O'Brien and Dan Burns; Writing by Steve Gorman; Editing by Peter Cooney and Bill Trott)


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Body of rape victim cremated in New Delhi

Vehicles carrying mourners and officials leave a cremation ground after attending the funeral of a rape victim in New Delhi December 30, 2012. REUTERS/Danish Siddiqui

1 of 7. Vehicles carrying mourners and officials leave a cremation ground after attending the funeral of a rape victim in New Delhi December 30, 2012.

Credit: Reuters/Danish Siddiqui

By Adnan Abidi and Devidutta Tripathy

NEW DELHI | Sun Dec 30, 2012 1:05pm IST

NEW DELHI (Reuters) - The body of a woman whose gang rape provoked protests and rare national debate about violence against women in India arrived back in New Delhi early on Sunday and was quickly cremated at a private ceremony.

The unidentified 23-year-old medical student died from her injuries on Saturday, prompting promises of action from a government that has struggled to respond to public outrage.

She had suffered brain injuries and massive internal injuries in the attack on December 16, and died in hospital in Singapore where she had been taken for treatment.

She and a male friend had been returning home from the cinema, media reports say, when six men on a bus beat them with metal rods and repeatedly raped the woman. The friend survived.

Six suspects were charged with murder after her death.

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A Reuters correspondent saw family members who had been with her in Singapore take her body from the airport to their Delhi home in an ambulance with a police escort.

Ruling party leader Sonia Gandhi was seen arriving at the airport when the plane landed and Prime Minister Mannmohan Singh's convoy was also there, the witness said.

The body was then taken to a crematorium and cremated. Media were kept away but a Reuters witness saw the woman's family, New Delhi's chief minister, Sheila Dikshit, and the junior home minister, R P N Singh, coming out of the crematorium.

Security in the capital remained tight after authorities, worried about the reaction to the news of her death, had on Saturday deployed thousands of policemen and closed some roads and metro stations.

Protesters still gathered, in New Delhi and other cities, to keep the pressure on Singh's government to get tougher on crime against women. Last weekend, protesters fought pitched battles with police.

On Sunday, lines of policemen in riot gear and armed with heavy wooden sticks stood in front of metal barricades closing off roads in New Delhi. Morning traffic was light.

DOUBTS

The outcry over the attack caught the government off-guard. It took a week for Singh to make a statement, infuriating many protesters.

Issues such as rape, dowry-related deaths and female infanticide rarely enter mainstream political discourse in India.

Analysts say the death of the woman dubbed "Amanat", an Urdu word meaning "treasure", by some Indian media could change that, although it is too early to say whether the protesters calling for government action to better safeguard women can sustain their momentum through to national elections due in 2014.

Newspapers raised doubts about the commitment of both male politicians and the police to protecting women.

"Would the Indian political system and class have been so indifferent to the problem of sexual violence if half or even one-third of all legislators were women?" the Hindu newspaper asked.

The Indian Express acknowledged the police force was understaffed and poorly paid, but there was more to it than that.

"It is geared towards dominating citizens rather than working for them, not to mention being open to influential interests," the newspaper said. "It reflects the misogyny around us, rather than actively fighting for the rights of citizens who happen to be female."

Most sex crimes in India go unreported, many offenders go unpunished, and the wheels of justice turn slowly, according to social activists, who say that successive governments have done little to ensure the safety of women.

Commentators and sociologists say the rape has tapped into a deep well of frustration many Indians feel over what they see as weak governance and poor leadership on social issues.

New Delhi has the highest number of sex crimes among India's major cities, with a rape reported on average every 18 hours, according to police figures. Government data show the number of reported rape cases in India rose by nearly 17 percent between 2007 and 2011. (Additional reporting by Ross Colvin and Diksha Madhok; Writing by Louise Ireland; Editing by Kevin Liffey and Robert Birsel)


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Victorious Australia dogged by injuries, selection queries

Sri Lanka's Kumar Sangakkara (R) looks at his injured finger as he walks off the ground with a team trainer retired hurt during the third day of the second cricket test against Australia at the Melbourne Cricket Ground December 28, 2012. REUTERS/David Gray

Sri Lanka's Kumar Sangakkara (R) looks at his injured finger as he walks off the ground with a team trainer retired hurt during the third day of the second cricket test against Australia at the Melbourne Cricket Ground December 28, 2012.

Credit: Reuters/David Gray

By Ian Ransom

MELBOURNE | Sat Dec 29, 2012 10:44am IST

MELBOURNE (Reuters) - Australia's second test thrashing of an injury-ravaged Sri Lanka provided some consolation after a stinging 1-0 loss in the home series to South Africa, but has left the team with much to ponder ahead of the dead rubber test in Sydney next week.

Australia head into the final match of the series with an unassailable 2-0 lead, but the innings victory in Melbourne was soured with ongoing injury clouds over skipper Michael Clarke and vice-captain Shane Watson.

The fitness concerns have added further ammunition to critics of the team's player management, with selectors and fitness staff already under fire for a controversial rotation policy that saw injury-free seamer Mitchell Starc rested for Melbourne for fear he might break down.

Both Watson and Clarke played despite bringing injuries into the Melbourne test, leaving selectors open to accusations of double standards.

While Clarke scored a glittering 106 and Watson a solid 83 to help set up victory, the wash-out from Melbourne will do little to quell the grumbling.

All-rounder Watson broke down with a calf strain after bowling on day one and will miss the Sydney test, while Clarke remains in doubt as he continues his battle to recover from a hamstring strain.

When asked why selectors had not rested the injury-prone Watson, who was forced to shoulder a big bowling workload in the first test victory in Hobart when seamer Ben Hilfenhaus broke down with a side strain, Cricket Australia's high performance chief Pat Howard told reporters: "There was some consideration of it."

"But it was looked at as a collective. He's multi-skilled and can bring more than a couple of attributes to the game.

"When we talk about players missing a game or managing their workload, a lot of this is around young fast bowlers and looking after them is a pretty core principle of what we're trying to do."

BREAKING DOWN

The support staff's best intentions have not stopped young pacemen James Pattinson and Pat Cummins from breaking down among a raft of injuries, while 22-year-old Starc's Melbourne omission left the bowler tweeting that he was "shattered" by the decision.

Selectors have also backed themselves into a corner by promising Starc would play at the Sydney Cricket Ground, meaning either one of Mitchell Johnson, Peter Siddle or Jackson Bird must miss out on a wicket traditionally conducive to spin.

Man-of-the-match Johnson, had a brilliant return to form in Melbourne after being dumped for the Hobart test, capturing six wickets and bashing an unbeaten 92 in a performance that would virtually guarantee selection.

Bird also had an excellent test debut with four wickets in place of the injured Hilfenhaus, while pace attack leader Siddle might not take kindly to being left out after being controversially rested for Australia's third test loss to South Africa in Perth.

Cricket Australia can scarcely clutch at fatigue as an excuse in their selection deliberations, with the three quicks hardly breaking a sweat in the two and a half day test in Melbourne.

Watson's injury has opened the door for uncapped Glenn Maxwell, but re-opened a can of worms as to what to do with the barrel-chested vice captain.

Debate has long raged as to Watson's relative value as a batsman or bowler, and the risk of him being both.

Watson, himself, said he was having doubts about carrying on in both roles.

"I am certainly doing some thinking about what my prospects are moving forward, with my bowling especially," Watson, who will have played only three of the six home tests this summer, told Australia's Channel Nine.

Clarke, on Australia's five-man selection panel, emphatically backed Watson to continue as an all-rounder after the Melbourne test.

But another injury could test Clarke's support, with the need for a settled lineup to tackle India on tour in February and March ahead of the first Ashes campaign in July.

"We want to keep getting better every day. And we aren't good enough to play players at 70 or 80 percent," Clarke said.

"You need to be able to be at your best."

(Editing by Greg Stutchbury)


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Sex, drugs and rock and roll: Australia's other boom

A sex worker sporting a tattoo on her foot in central Sydney December 13, 2007. REUTERS/Tim Wimborne/Files

A sex worker sporting a tattoo on her foot in central Sydney December 13, 2007.

Credit: Reuters/Tim Wimborne/Files

CANBERRA | Sun Dec 30, 2012 9:11am IST

CANBERRA (Reuters) - Forget Australia's mining boom. The nation's strong economy, high currency and wages have made it a magnet for sex, drugs and rock and roll.

Foreign sex workers, drug smugglers and global rock acts are all targeting Australia to cash in on an economy growing at 3.1 percent when other developed nations are struggling to expand at all.

The alternative boom has emerged as Australian average full-time wages hit $72,500 a year, and with the Australian dollar trading stubbornly above parity with the U.S. dollar for the past two years.

That has made Australia even more profitable for fly-in and fly-out rock acts and prostitutes, and especially for drug traffickers who are taking bigger risks with the hope of windfall profits.

"Offshore organised crime syndicates perceive Australia to have a robust economy and to have been less affected by the global financial crisis than other jurisdictions," said Paul Jevtovic, the Australian Crime Commission's executive director of intervention and prevention.

DRUG PROFITS

Australian police made 69,500 illicit drug busts in the year to June 30, 2012, the highest in a decade, and have made record arrests in the first six months of this financial year.

In recent months, police have intercepted drugs hidden in a 20-tonne steamroller and heavy machinery, in a large wooden altar, and they have broken up a drug ring involving smugglers in Australia, Japan and Vietnam.

One of the biggest smuggling operations was a failed bid to bring in more than 200 kg (440 lb) of cocaine across the Pacific Ocean from Ecuador on a 13-metre (40-foot) yacht, found grounded on a small atoll in Tonga with a dead crewman aboard.

Australian police, who work closely with the U.S. Drug Enforcement Administration and authorities throughout Asia and the South Pacific, said the high prices paid in Australia and the strong dollar all helped make the country attractive for smugglers.

Crime statistics show why some are willing to risk up to 20 years in prison.

The Australian Crime Commission, which examines trends and works closely with police agencies, said heroin and MDMA, also known as ecstasy, sell for about eight times more in Australia than in Britain and the United States, though Australia is a much smaller market.

Crime Commission data given to Reuters shows a kilogram of cocaine is worth about $2,400 in Colombia, $12,500 in Mexico, and $33,000 in the United States.

The same kilogram of cocaine is worth $220,000 in Australia.

ROCK REVIVAL

Once a remote destination for big rock acts, Australia has been flooded with talent over the past year and faces a steady stream of musicians, including heritage acts, in 2013.

The strong dollar has made Australia the ideal place to perform for musicians wanting to make money at a time when touring rather than album sales is the main driver of income, with many acts charging a premium in a cashed-up economy.

In the first half of 2013, Australia will see tours by Bruce Springsteen, Pink, Guns N'Roses, Ringo Starr, ZZ Top, Thin Lizzy, the Steve Miller Band, Deep Purple, Santana, Status Quo, Robert Plant, Neil Young, Carole King, Paul Simon and Kiss.

The high ticket prices have upset some fans, who question why an artist like Springsteen charges $220 for a premium ticket in Australia, when the same ticket to the same show in Connecticut in October cost $90.

"You can't tell me it costs more than double per head to stage a concert here in Australia," said music fan Robin Pash, who has just returned from the United States, where he saw Springsteen and a series of acts for what would be considered bargain prices.

Entertainment journalist Jonathon Moran, however, said the higher prices reflected the higher cost in Australia, although Australia's strong dollar did make it more attractive to perform downunder.

"More people want to come here, and Australian audiences are comparatively well off and can afford the tickets," Moran, from Sydney's Sunday Telegraph, told Reuters.

SEX AND THE BOOM

Sex workers are also cashing in on the boom, particularly in remote mining towns, where the world's oldest profession is the latest to adopt fly-in, fly-out work practices. And more overseas sex workers are heading for Australia.

A 2012 report for the government in the most populous state, New South Wales, found a marked rise in the number of female sex workers from Thailand, Korea and China since 2006, with 53 percent of sex workers from Asia and a further 13.5 percent from other non-English-speaking countries.

The report, by the University of New South Wales, found a median hourly rate of A$150 for sex services in Australia's largest city of Sydney, although sex workers can charge double that in remote mining towns full of cashed up men.

In the gold mining town of Kalgoorlie in the Western Australia state, the Red House brothel, which has operated since 1934, advertises services starting at A$300 an hour.

Proprietor Bruna Meyers said women in her establishment earned up to A$4,000 a week at a busy time, or about three times the average full-time Australian wage.

"The girls who come here are mainly from over east (eastern Australian states). They come in, sometimes for two or three weeks at a time. Some are just girls who are travelling around the world," Meyers told Reuters. (Editing by Ron Popeski)


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Gang rape victim dies; New Delhi braces for protests

Undertakers and hospital staff carry the body of the Delhi rape victim into a van as they leave Mount Elizabeth Hospital for the morgue in Singapore December 29, 2012. REUTERS/Edgar Su

1 of 4. Undertakers and hospital staff carry the body of the Delhi rape victim into a van as they leave Mount Elizabeth Hospital for the morgue in Singapore December 29, 2012.

Credit: Reuters/Edgar Su

By Devidutta Tripathy and Eveline Danubrata

NEW DELHI/SINGAPORE | Sat Dec 29, 2012 1:03pm IST

NEW DELHI/SINGAPORE (Reuters) - The 23-year-old woman whose gang rape in New Delhi triggered violent protests died of her injuries on Saturday in a Singapore hospital, bringing a security lockdown in Delhi and recognition from the prime minister that social change is needed.

Bracing for a new wave of protests, the authorities closed 10 metro stations and banned vehicles from some main roads in the heart of New Delhi, where demonstrators have converged since the attack to demand improved women's rights. About 100 people staged a peaceful protest on Saturday morning.

The young medical student, severely beaten, raped and thrown out of a moving bus in New Delhi two weeks ago, had been flown to Singapore in a critical condition by the government on Thursday for specialist treatment.

The attack has sparked an intense national debate for the first time about the treatment of women and attitudes towards sex crimes in a country where most rapes go unreported, many offenders go unpunished, and the wheels of justice turn slowly, according to social activists.

"We are very sad to report that the patient passed away peacefully at 4:45 a.m. on Dec 29, 2012 (2045 GMT Friday). Her family and officials from the High Commission (embassy) of India were by her side," Mount Elizabeth Hospital Chief Executive Officer Kelvin Loh said in a statement.

LIVE BLOG: Delhi gang rape victim dies - link.reuters.com/zev84t

For video package - link.reuters.com/xev84t

Prime Minister Manmohan Singh said he was deeply saddened by the death and described the emotions associated with her case as "perfectly understandable reactions from a young India and an India that genuinely desires change.

"It would be a true homage to her memory if we are able to channelize these emotions and energies into a constructive course of action," Singh said in a statement.

Delhi's chief minister, Sheila Dikshit, said the woman's death was a "shameful moment for me not just as a chief minister but also as a citizen of this country".

The woman, who has not been identified, and a male friend were returning home from the cinema by bus on the evening of December 16 when, media reports say, six men on the bus beat them with metal rods and repeatedly raped the woman. Media said a rod was used in the rape, causing internal injuries. Both were thrown from the bus. The male friend survived the attack.

The public outcry over the attack has caught the government off-guard. It took a week for Singh to make a public statement on the attack, infuriating many protesters who saw it as a sign of a government insensitive to the plight of women.

The prime minister, a stiff 80-year-old technocrat who speaks in a low monotone, has struggled to channel the popular outrage in his public statements and convince critics that his eight-year-old government would now take concrete steps to improve the safety of women.

Protesters, mostly young middle class students, fought pitched battles with police around the capital last weekend. Police used batons, water cannon and teargas to quell the protests, and sealed off the main protest sites.

BODY TO BE RETURNED HOME

T.C.A. Raghavan, the Indian high commissioner to Singapore, told reporters hours after the woman's death that a chartered aircraft would fly her body back to India on Saturday, along with members of her family. The woman's body had earlier been put into a van at the hospital and driven away.

The media had also accused the government of sending her to Singapore to minimise any backlash in the event of her death but Raghavan said it had been a medical decision intended to ensure she got the best treatment.

"She was unconscious throughout," Raghavan said of her time in Singapore. "She died because of the severe nature of the injuries."

Some Indian medical experts had questioned the decision to fly the woman to Singapore, calling it a risky manoeuvre given the severity of her injuries. They had said she was already receiving the best possible care in India.

On Friday, the Singapore hospital had said the woman's condition had taken a turn for the worse and she had suffered "significant brain injury". She had already undergone three abdominal operations before arriving in Singapore.

The suspects in the rape - five men aged between 20 and 40, and a juvenile - were arrested within hours of the attack and are in custody. Media reports say they are likely to be formally charged with murder next week.

Many Indians have called for the death penalty for those responsible.

Home Minister Sushilkumar Shinde told Times Now television on Saturday the government was committed to ensuring "the severest possible punishment to all the accused at the earliest".

"It will not go in vain. We will give maximum punishment to the culprits. Not only to this, but in future also. This one incident has given a greater lesson" Shinde said.

He said earlier the government was considering the death penalty for rape in very rare cases. Murder carries the death penalty.

The case has received blanket coverage on cable television news channels. Some Indian media have called the woman "Amanat", an Urdu word meaning "treasure".

Commentators and sociologists say the rape tapped into a deep well of frustration many Indians feel over what they see as weak governance and poor leadership.

Many protesters have complained that Singh's government has done little to curb the abuse of women in the country of 1.2 billion. A global poll by the Thomson Reuters Foundation in June found that India was the worst place to be a woman because of high rates of infanticide, child marriage and slavery.

New Delhi has the highest number of sex crimes among India's major cities, with a rape reported on average every 18 hours, according to police figures. Government data show the number of reported rape cases in the country rose by nearly 17 percent between 2007 and 2011.

(Additional reporting by Ross Colvin, Diksha Madhok and Shashank Chouhan in New Delhi; Kevin Lim, Saeed Azhar, Edgar Su and Sanjeev Miglani in Singapore; Editing by Ron Popeski, Mark Bendeich and Robert Birsel)


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After US 'fiscal cliff' dive, more battles, new cliffs

U.S. President Barack Obama delivers remarks to reporters after meeting with congressional leaders at the White House in Washington December 28, 2012. REUTERS/Jonathan Ernst

U.S. President Barack Obama delivers remarks to reporters after meeting with congressional leaders at the White House in Washington December 28, 2012.

Credit: Reuters/Jonathan Ernst

By David Lawder and Fred Barbash

WASHINGTON | Sun Dec 30, 2012 9:33am IST

WASHINGTON (Reuters) - Whether or not the U.S. "fiscal cliff" impasse is broken before the New Year's Eve deadline, there will be no post-cliff peace in Washington.

With the political climate toxic in Congress as the cliff's steep tax hikes and spending cuts approach, other partisan fights loom, all over the issue that has paralyzed the capital for the past two years: federal spending.

The first will come in late February when the Treasury Department runs out of borrowing authority and has to come to Congress to get the debt ceiling raised.

The next is likely in late March, when a temporary bill to fund the government runs out, confronting Congress with a deadline to act or face a government shutdown. The third will possibly be whenever the temporary bill replacing the temporary bill expires.

While Congress is supposed to pass annual spending bills before the start of each fiscal year, it has failed to complete that process since 1996, resorting to stopgap funding ever since.

Influential anti-tax activist Grover Norquist predicted in an interview with Reuters that conservatives would wage repeated battles with President Barack Obama to demand budget savings every time the government needs a temporary funding bill or more borrowing capacity.

The so-called "continuing resolutions" to which a divided Congress has increasingly resorted to keep the government operating, provide a "very powerful tool" to pry out spending cuts, said Norquist, president of Americans for Tax Reform.

Republican Senator Bob Corker of Tennessee said he will not be satisfied until there are substantial cuts to federal retirement and healthcare benefits known as entitlements, producing savings in the $4.5 trillion to $5 trillion range.

"Unfortunately for America," said Corker, "the next line in the sand will be the debt ceiling."

Most observers see the $16.4 trillion debt limit as the true fiscal cliff in the new year because if not increased, it would eventually lead to a default on U.S. Treasury debt, an event that could prove cataclysmic for financial markets.

The Treasury Department said on Wednesday it would start taking extraordinary measures by December 31 to extend its borrowing capacity for about two more months.

'POISONOUS CLIMATE'

It was a deadlock over raising the debt ceiling in August 2011 that prompted a deficit reduction deal that led to a key fiscal cliff component, the $109 billion in automatic spending cuts on military and domestic programs.

If the fiscal cliff's spending cuts or tax increases are left even partly unresolved on December 31, the political combat over them will carry over into the new Congress, possibly simultaneously with the debt ceiling debate.

"We would be pessimistic of a quick fix" if the deadline is missed, Sean West, head U.S. analyst at Eurasia Group, a political risk consultancy, said in a note to clients. "The political climate will be poisoned. The new Congress will need time to settle in."

"We are concluding one of the most unsuccessful Congresses in history," Democratic Representative John Dingell of Michigan declared in a statement on Saturday, "noteworthy not only for its failure to accomplish anything of importance, but also for the poisonous climate of the institution."

Dingell, 86, is the longest serving member of the House, elected first in 1955.

Historically, bitter struggles in Congress like that over the fiscal cliff lead to further resentment and strife in a cycle of cumulative grudges that now spans nearly 30 years.

Many analysts and lobbyists in Washington believe the strife could get even worse because the new Congress convening on January 3 will include fewer members from moderate or swing districts and more from districts tilted heavily to the left or the right.

Republicans in particular are likely to face their most serious re-election challenges in 2014 not from Democrats but from conservative Republicans challenging them in primary elections.

"Ironically," said a post-election analysis published by the law firm Patton Boggs, "the voters have elected a 113th Congress that may be even more partisan than the 112th."

(Reporting By David Lawder and Fred Barbash; Editing by Eric Beech)


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Facebook Instagram use dived after photo fiasco - AppData

A woman takes a picture with her phone in Times Square in New York, December 18, 2012. REUTERS/Andrew Burton

A woman takes a picture with her phone in Times Square in New York, December 18, 2012.

Credit: Reuters/Andrew Burton

SAN FRANCISCO | Sat Dec 29, 2012 5:18am IST

SAN FRANCISCO (Reuters) - Facebook Inc's (FB.O) Instagram lost almost a quarter of its daily users a week after it rolled out and then withdrew policy changes that incensed users who feared the photo-sharing service would use their pictures without compensation.

Instagram, which Facebook bought for $715 million this year, saw the number of daily active users who accessed the service via Facebook bottom out at 12.4 million as of Friday, versus a peak of 16.4 million last week, according to data compiled by online tracker AppData.

The popular app, which allows people to add filters and effects to photos and share them over the Internet or smartphones, experienced the drop over the brief, often-volatile holiday period.

Other popular apps also saw slippage in usage, and some were more pronounced. Yelp (YELP.N), for instance, saw daily active users -- again via Facebook -- slide to a weekly low of half a million on Thursday, from a high of 820,000 one week ago.

Instagram disputed the AppData survey, which was compiled from users that have linked the photo service to their own Facebook accounts, historically between 20 and 30 percent of Instagram members.

"This data is inaccurate. We continue to see strong and steady growth in both registered and active users of Instagram," a spokeswoman said in an emailed statement on Friday.

Looking out over a broader timeframe, Instagram's monthly active users edged up to 43.6 million as of Friday, an increase of 1.7 million over the past seven days, according to AppData.

"We'll have to monitor the data over the coming weeks to gain perspective on trends in Instagram's performance," AppData marketing manager Ashley Taylor Anderson said in an email.

ATTENTION-SEEKING

The sharp slide in activity highlighted by AppData was bound to draw attention on the heels of the controversial revision to Instagram's terms of service that, among other things, allowed an advertiser to pay Instagram "to display your username, likeness, photos (along with any associated metadata)" without compensation.

The subsequent public outrage prompted an apology from Instagram founder Kevin Systrom. Last week, a California Instagram user sued the company for breach of contract and other claims, in what may have been the first civil lawsuit to stem from the controversial change.

Instagram subsequently reverted to some of its original language.

The move renewed debate about how much control over personal data users must give up to live and participate in a world steeped in social media.

Analysts say Facebook, the world's largest social network, was laying the groundwork to begin generating advertising revenue, by giving marketers the right to display profile pictures and other personal information, such as who users follow in advertisements.

Its shares closed down 13 cents or 0.5 percent at $25.91 on the Nasdaq, in line with the broader market.

(Reporting By Edwin Chan; Editing by Leslie Adler and Andrew Hay)


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