Bolivia Makes Inroads Toward Reducing Coca Production
Label: World
Tajikistan blocks scores of websites as election looms
Label: TechnologyDUSHANBE (Reuters) – Tajikistan blocked access to more than 100 websites on Tuesday, in what a government source said was a dress rehearsal for a crackdown on online dissent before next year’s election when President Imomali Rakhmon will again run for office.
Rakhmon, a 60-year-old former head of a Soviet cotton farm, has ruled the impoverished Central Asian nation of 7.5 million for 20 years. He has overseen constitutional amendments that allow him to seek a new seven-year term in November 2013.
The Internet remains the main platform where Tajiks can air grievances and criticize government policies at a time when the circulation of local newspapers is tiny and television is tightly controlled by the state.
Tajikistan’s state communications service blocked 131 local and foreign Internet sites “for technical and maintenance works”.
“Most probably, these works will be over in a week,” Tatyana Kholmurodova, deputy head of the service, told Reuters. She declined to give the reason for the work, which cover even some sites with servers located abroad.
The blocked resources included Russia‘s popular social networking sites www.my.mail.ru and VKontakte (www.vk.com), as well as Tajik news site TJKnews.com and several local blogs.
“The government has ordered the communications service to test their ability to block dozens of sites at once, should such a need arise,” a senior government official told Reuters on condition of anonymity.
“It is all about November 2013,” he said, in a clear reference to the presidential election.
Other blocked websites included a Ukrainian soccer site, a Tajik rap music site, several local video-sharing sites and a pornography site.
VOLATILE NATION
Predominantly Muslim Tajikistan, which lies on a major transit route for Afghan drugs to Europe and Russia, remains volatile after a 1992-97 civil war in which Rakhmon’s Moscow-backed secular government clashed with Islamist guerrillas.
Rakhmon justifies his authoritarian methods by saying he wants to oppose radical Islam. But some of his critics argue repression and poverty push many young Tajiks to embrace it.
Tighter Internet controls echo measures taken by other former Soviet republics of Central Asia, where authoritarian rulers are wary of the role social media played in revolutions in the Arab world and mass protests in Russia.
The government this year set up a volunteer-run body to monitor Internet use and reprimand those who openly criticize Rakhmon and other officials.
In November, Tajikistan blocked access to Facebook, saying it was spreading “mud and slander” about its veteran leader.
The authorities unblocked Facebook after concern was expressed by the United States and European Union, the main providers of humanitarian aid for Tajikistan, where almost a half of the population lives in abject poverty.
Asomiddin Asoyev, head of Tajikistan’s association of Internet providers, said authorities were trying to create an illusion that there were no problems in Tajik society by silencing online criticism.
“This is self-deception,” he told Reuters. “The best way of resolving a problem is its open discussion with civil society.”
Moscow-based Central Asia expert Arkady Dubnov told Reuters that Rakhmon’s authoritarian measures could lead to a backlash against the president in the election. “Trying to position itself as the main guarantor of stability through repression against Islamist activists, the Dushanbe government is actually achieving the reverse – people’s trust in it is falling,” he said.
(Writing by Dmitry Solovyov; Editing by Pravin Char)
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Predicting who's at risk for violence isn't easy
Label: HealthCHICAGO (AP) — It happened after Columbine, Virginia Tech, Aurora, Colo., and now Sandy Hook: People figure there surely were signs of impending violence. But experts say predicting who will be the next mass shooter is virtually impossible — partly because as commonplace as these calamities seem, they are relatively rare crimes.
Still, a combination of risk factors in troubled kids or adults including drug use and easy access to guns can increase the likelihood of violence, experts say.
But warning signs "only become crystal clear in the aftermath, said James Alan Fox, a Northeastern University criminology professor who has studied and written about mass killings.
"They're yellow flags. They only become red flags once the blood is spilled," he said.
Whether 20-year-old Adam Lanza, who used his mother's guns to kill her and then 20 children and six adults at their Connecticut school, made any hints about his plans isn't publicly known.
Fox said that sometimes, in the days, weeks or months preceding their crimes, mass murderers voice threats, or hints, either verbally or in writing, things like "'don't come to school tomorrow,'" or "'they're going to be sorry for mistreating me.'" Some prepare by target practicing, and plan their clothing "as well as their arsenal." (Police said Lanza went to shooting ranges with his mother in the past but not in the last six months.)
Although words might indicate a grudge, they don't necessarily mean violence will follow. And, of course, most who threaten never act, Fox said.
Even so, experts say threats of violence from troubled teens and young adults should be taken seriously and parents should attempt to get them a mental health evaluation and treatment if needed.
"In general, the police are unlikely to be able to do anything unless and until a crime has been committed," said Dr. Paul Appelbaum, a Columbia University professor of psychiatry, medicine and law. "Calling the police to confront a troubled teen has often led to tragedy."
The American Academy of Child & Adolescent Psychiatry says violent behavior should not be dismissed as "just a phase they're going through."
In a guidelines for families, the academy lists several risk factors for violence, including:
—Previous violent or aggressive behavior
—Being a victim of physical or sexual abuse
—Guns in the home
—Use of drugs or alcohol
—Brain damage from a head injury
Those with several of these risk factors should be evaluated by a mental health expert if they also show certain behaviors, including intense anger, frequent temper outbursts, extreme irritability or impulsiveness, the academy says. They may be more likely than others to become violent, although that doesn't mean they're at risk for the kind of violence that happened in Newtown, Conn.
Lanza, the Connecticut shooter, was socially withdrawn and awkward, and has been said to have had Asperger's disorder, a mild form of autism that has no clear connection with violence.
Autism experts and advocacy groups have complained that Asperger's is being unfairly blamed for the shootings, and say people with the disorder are much more likely to be victims of bullying and violence by others.
According to a research review published this year in Annals of General Psychiatry, most people with Asperger's who commit violent crimes have serious, often undiagnosed mental problems. That includes bipolar disorder, depression and personality disorders. It's not publicly known if Lanza had any of these, which in severe cases can include delusions and other psychotic symptoms.
Young adulthood is when psychotic illnesses typically emerge, and Appelbaum said there are several signs that a troubled teen or young adult might be heading in that direction: isolating themselves from friends and peers, spending long periods alone in their rooms, plummeting grades if they're still in school and expressing disturbing thoughts or fears that others are trying to hurt them.
Appelbaum said the most agonizing calls he gets are from parents whose children are descending into severe mental illness but who deny they are sick and refuse to go for treatment.
And in the case of adults, forcing them into treatment is difficult and dependent on laws that vary by state.
All states have laws that allow some form of court-ordered treatment, typically in a hospital for people considered a danger to themselves or others. Connecticut is among a handful with no option for court-ordered treatment in a less restrictive community setting, said Kristina Ragosta, an attorney with the Treatment Advocacy Center, a national group that advocates better access to mental health treatment.
Lanza's medical records haven't been publicly disclosed and authorities haven't said if it is known what type of treatment his family may have sought for him. Lanza killed himself at the school.
Jennifer Hoff of Mission Viejo, Calif. has a 19-year-old bipolar son who has had hallucinations, delusions and violent behavior for years. When he was younger and threatened to harm himself, she'd call 911 and leave the door unlocked for paramedics, who'd take him to a hospital for inpatient mental care.
Now that he's an adult, she said he has refused medication, left home, and authorities have indicated he can't be forced into treatment unless he harms himself — or commits a violent crime and is imprisoned. Hoff thinks prison is where he's headed — he's in jail, charged in an unarmed bank robbery.
___
Online:
American Academy of Child & Adolescent Psychiatry: http://www.aacap.org
___
AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner
Yen on defensive on U.S. fiscal worry, helps Nikkei
Label: BusinessTOKYO (Reuters) - Uncertainty over whether U.S. lawmakers will strike a deal by an end-of-year deadline to avert a severe fiscal retrenchment undermined the yen and bolstered Japanese shares on Tuesday in low volume, with many participants away on Christmas holiday.
The dollar rose to a 20-month high of 84.965 yen early on Tuesday in Asia, as Japanese markets caught up with global investors who had reacted overnight to incoming Japanese Prime Minister Shinzo Abe's weekend comments that raised the pressure on the Bank of Japan.
During a meeting on Tuesday with officials from Japan's major business lobby, Keidanren, Abe reiterated calls on the BOJ to conduct bold monetary easing to beat deflation by setting an inflation target of 2 percent.
The head of Abe's coalition partner said on Tuesday the coalition party and Abe had agreed to set a 2 percent inflation target and compile a large stimulus budget to help the economy return to growth and overcome deflation.
The yen has come under pressure as a result of expectations that the BOJ will be compelled to adopt more drastic monetary stimulus measures next year.
The dollar was expected to stay firm this week as investors repatriate dollars, and as the U.S. fiscal impasse is likely to continue to sap investor appetite for risky assets and raise the dollar's safe-haven appeal.
"The dollar is seen relatively well bid, with all focus on the fiscal cliff," said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo.
"Negotiations may be carried over the weekend, but markets still expect a deal to be struck by December 31. It is unthinkable that the U.S. will risk driving its economic growth sharply lower by not agreeing to avoid it."
U.S. lawmakers and President Barack Obama were on Christmas holiday and talks were unlikely to resume until later in the week.
House of Representatives Speaker John Boehner failed to gain support for a tax plan at the end of last week, raising fears that the United States may face the "fiscal cliff" of some $600 billion in automatic spending cuts and tax increases set to start on January 1.
Japan's Nikkei stock average <.n225> resumed trading after a three-day weekend with a 1.1 percent gain, recapturing the key 10,000 mark it ceded on Friday after Boehner's failure sparked a broad market sell-off and the Tokyo benchmark closed down 1 percent. The Nikkei was likely to be supported as long as the yen stayed weak. <.t/>
"Ongoing optimism about the weak yen is lifting hopes that exporters' earnings will be better than expected," said Hiroichi Nishi, general manager at SMBC Nikko Securities.
Analysts say a near-term correction may be possible as the index is now in "overbought" territory after gaining 16.2 percent over the last six weeks, hitting a nine-month high last Friday. Its 14-day relative strength index was at 72.34, above the 70 level that signals an overbought condition.
MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> nudged up 0.1 percent, driven higher by surging Shanghai shares, as most Asian bourses were shut for Christmas.
The Shanghai Composite Index <.ssec> soared over 2 percent to five-month highs as investors bought property stocks on mounting optimism about the sector. Taiwan shares <.twii> jumped 1.3 percent on gains in technology and financial shares.
Asset performance in 2012: http://link.reuters.com/muc46s
2012 commodities returns: http://link.reuters.com/faz36s
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U.S. HOLDS 2013 KEY
Goro Ohwada, president and CEO at Japan-based fund of hedge funds Aino Investment Corp, said investors were likely to focus on economic fundamentals and the United States for cues on investment direction in 2013.
"There is a feeling that an investment strategy based on economic fundamentals may finally work next year, with asset prices more closely reflecting fair value. The problem is, we don't know yet which asset is a better bet than others," Ohwada said, adding that oil and gold appeared to be near their highs.
Naohiro Niimura, a partner at research and consulting firm Market Risk Advisory, said commodities and energy prices will likely move in tight ranges in 2013, with investors eyeing political events, including the U.S. fiscal cliff outlook, Italian parliamentary election set for February 24-25, and Germany's elections in September.
"The macroeconomic policies taken this year around the world to support growth are expected to result in a moderate recovery in 2013 to reduce an excessive downside risk to prices. This will likely keep commodities, gold and energy prices near their highs," Niimura said.
(Additional reporting by Ayai Tomisawa in Tokyo; Editing by Edmund Klamann and Daniel Magnowski)
Israel to Review Curbs on Women’s Prayer at Western Wall
Label: World
JERUSALEM — Amid outrage across the Jewish diaspora over a flurry of recent arrests of women seeking to pray at the Western Wall with ritual garments in defiance of Israeli law, Prime Minister Benjamin Netanyahu has asked Natan Sharansky, the chairman of the Jewish Agency, to study the issue and suggest ways to make the site more accommodating to all Jews.
The move comes after more than two decades of civil disobedience by a group called Women of the Wall against regulations, legislation and a 2003 Israeli Supreme Court ruling that allow for gender division at the wall, one of Judaism’s holiest sites, and prohibit women from carrying a Torah or wearing prayer shawls there.
Although the movement has struggled to gain traction in Israel, where the ultra-Orthodox retain great sway over public life, the issue has deepened a divide between the Jewish state and Jews around the world at a time when Israel is battling international isolation over its settlement policy. Critics, particularly leaders of the Reform and Conservative movements in the United States, complain that the government’s recent aggressive enforcement of restrictions at the wall has turned a national monument into an ultra-Orthodox synagogue.
“The prime minister thinks the Western Wall has to be a site that expresses the unity of the Jewish people, both inside Israel and outside the state of Israel,” Ron Dermer, Mr. Netanyahu’s senior adviser, said in an interview on Tuesday. “He wants to preserve the unity of world Jewry. This is an important component of Israel’s strength.”
Mr. Sharansky, whose quasi-governmental nonprofit organization handles immigration for the state and is a bridge between Israel and Jews around the world, said that Mr. Netanyahu asked him on Monday to take up the matter, and that he expected to have recommendations within a few months. He and Mr. Dermer said the agenda would include improvements for Robinson’s Arch, a discreet area of the wall designated for coed prayer under the court ruling, and the easing of restrictions in the larger area known as the Western Wall plaza, along with the more sensitive questions regarding prayer at the main site.
Mr. Sharansky said the Jewish Agency itself stopped having ceremonies for new immigrants in the plaza about two years ago after the Western Wall Heritage Foundation, which controls the site, said that men and women could not sit together. Under pressure from the international groups that provide its financing, the agency passed a resolution on Oct. 30 calling for a “satisfactory approach to the issue of prayer at the Western Wall.”
Asked whether he could imagine a day when women could wear prayer shawls and read Torah at the wall itself, Mr. Sharansky said, “I imagine very easily a situation where everybody will have their opportunity to express their solidarity with Judaism and the Jewish people and the state of Israel in a way he or she wants, without undermining the other.”
“That’s as much as I want to say at this moment,” he added. “Now I have to share this vision with the appropriate bodies.”
Mr. Sharansky, a former Soviet dissident and widely respected figure, has been called upon before to broker peace with the diaspora over questions of religious pluralism, most recently during a harsh fight over conversion. Anat Hoffman, the chairwoman of Women of the Wall, reacted with cautious optimism to Mr. Netanyahu’s initiative, but said it would not stop the Israel Religious Action Center, of which she is executive director, from filing a Supreme Court petition as soon as next week challenging the makeup of the heritage foundation’s board.
“It’s a good thing that after 24 years the highest echelons in Israel are actually paying attention to this rift that is breaking diaspora Jews from Israel,” she said. “The table that should run the Western Wall should have everyone who has an interest in the wall sitting around it.”
Rabbi Shmuel Rabinowitz, the head of the heritage foundation, said in an e-mailed statement that he was unaware of the Sharansky initiative and therefore “does not have an opinion about it.”
While Ms. Hoffman said the women’s group would be satisfied if it were allowed to pray at the wall once a month with full regalia, her religious action center wants hours each day, between scheduled prayer times, when the gender partition is removed and people can freely enjoy the site as a cultural monument.
“If in the end what happens is that the Robinson’s Arch area will be run by the Jewish Agency instead of the antiquities department, then we’re talking about who’s going to take care of the air-conditioning in the back of the bus,” she said. “I don’t care about that. I don’t want to sit in the back of the bus. I want to dismantle the Western Wall Heritage Foundation.”
Abraham H. Foxman, the director of the Anti-Defamation League, said he discussed the wall and other questions of religious pluralism with Mr. Netanyahu in Jerusalem on Monday.
“This is a wise initiative, but it’s only a beginning,” Mr. Foxman said.
Irit Pazner Garshowitz contributed reporting.
Find room for God in fast-paced world, pope says on Christmas eve
Label: TechnologyVATICAN CITY (Reuters) – Pope Benedict, leading the world’s Roman Catholics into Christmas, on Monday urged people to find room for God in their fast-paced lives filled with the latest technological gadgets.
The 85-year-old pope, marking the eighth Christmas season of his pontificate, celebrated a solemn Christmas Eve mass in St Peter’s Basilica, during which he appealed for a solution to the Arab-Israeli conflict and an end to the civil war in Syria.
At the mass for some 10,000 people in the basilica and broadcast to millions of others on television, the pope wove his homily around the theme of God’s place in today’s modern world.
“Do we have time and space for him? Do we not actually turn away God himself? We begin to do so when we have no time for him,” said the pope, wearing gold and white vestments.
“The faster we can move, the more efficient our time-saving appliances become, the less time we have. And God? The question of God never seems urgent. Our time is already completely full,” he said.
The leader of the world’s some 1.2 billion Roman Catholics said societies had reached the point where many people’s thinking processes did not leave any room even for the existence of God.
“Even if he seems to knock at the door of our thinking, he has to be explained away. If thinking is to be taken seriously, it must be structured in such a way that the ‘God hypothesis’ becomes superfluous,” he said.
“There is no room for him. Not even in our feelings and desires is there any room for him. We want ourselves. We want what we can seize hold of, we want happiness that is within our reach, we want our plans and purposes to succeed. We are so ‘full’ of ourselves that there is no room left for God.”
PEACE CANDLE
Bells inside and outside the basilica chimed when the pope said “Glory to God in the Highest,” the words the gospels say the angels sang at the moment of Jesus’ birth.
Earlier on Monday the pope appeared at the window of his apartments in the apostolic palace and lit a peace candle, as a larger-than-life nativity scene was unveiled in St Peter’s Square below.
Reflecting on the gospel account of Jesus born in a stable because there was no room for Mary and Joseph in the inn, he said when people find no room for God in their lives, they will soon find no room for others.
“Let us ask the Lord that we may become vigilant for his presence, that we may hear how softly yet insistently he knocks at the door of our being and willing.
“Let us ask that we may make room for him within ourselves, that we may recognise him also in those through whom he speaks to us: children, the suffering, the abandoned, those who are excluded and the poor of this world,” he said.
He asked for prayers for the people who “live and suffer” in the Holy Land today.
The pope called for peace among Israelis and Palestinians and for the people of Syria, Lebanon and Iraq and prayed that “Christians in those lands where our faith was born may be able to continue living there, that Christians and Muslims may build up their countries side-by-side in God’s peace.”
The Vatican is concerned about the exodus from the Middle East of Christians, many of whom leave because they fear for their safety. Christians now comprise five percent of the population of the region, down from 20 percent a century ago.
According to some estimates, the current population of 12 million Christians in the Middle East could halve by 2020 if security and birth rates continue to decline.
At noon (1100 GMT/6 AM ET) the pope will deliver his twice-yearly “Urbi et Orbi” (to the city and the world) blessing and message from the central balcony of St Peter’s Basilica.
(Reporting By Philip Pullella; Editing by Myra MacDonald)
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Queen Elizabeth Goes 3D for Her Holiday Message
Label: LifestyleBy Simon Perry
12/24/2012 at 03:05 PM EST
Queen Elizabeth, in her 3D glasses
John Stillwell/AFP/Getty
As if her Diamond Jubilee, her Summer Olympics' James Bond stunt and the anticipation of her great-grandchild from William and Kate weren't enough, Queen Elizabeth has capped this very special year by donning some funky glasses to view a new 3D version of her annual seasonal broadcast – the first time her traditional speech has been filmed in the format.
Complete with a blinged-out "Q" in Swarovski crystals decorating the temples of the frames, the specs – which she also once wore for a 3D movie in Canada a couple years ago – are an unlikely addition to the Queen's jewels.
"We wanted to do something a bit different and special in this Jubilee year, so doing it for the first time in 3D seemed a good thing, technology-wise, to do," a spokeswoman says.
The Queen's message will air at 3 p.m. U.K. time on Christmas Day. Looking back on the highlights of the year, she is expected to include her praise of the British Olympians and Paralympians who excelled at the London 2012 games.
Meanwhile, the 86-year-old monarch was absent from a pre-Christmas church service at Sandringham Sunday. It was said by Buckingham Palace that she is nursing a cold.
Predicting who's at risk for violence isn't easy
Label: HealthCHICAGO (AP) — It happened after Columbine, Virginia Tech, Aurora, Colo., and now Sandy Hook: People figure there surely were signs of impending violence. But experts say predicting who will be the next mass shooter is virtually impossible — partly because as commonplace as these calamities seem, they are relatively rare crimes.
Still, a combination of risk factors in troubled kids or adults including drug use and easy access to guns can increase the likelihood of violence, experts say.
But warning signs "only become crystal clear in the aftermath, said James Alan Fox, a Northeastern University criminology professor who has studied and written about mass killings.
"They're yellow flags. They only become red flags once the blood is spilled," he said.
Whether 20-year-old Adam Lanza, who used his mother's guns to kill her and then 20 children and six adults at their Connecticut school, made any hints about his plans isn't publicly known.
Fox said that sometimes, in the days, weeks or months preceding their crimes, mass murderers voice threats, or hints, either verbally or in writing, things like "'don't come to school tomorrow,'" or "'they're going to be sorry for mistreating me.'" Some prepare by target practicing, and plan their clothing "as well as their arsenal." (Police said Lanza went to shooting ranges with his mother in the past but not in the last six months.)
Although words might indicate a grudge, they don't necessarily mean violence will follow. And, of course, most who threaten never act, Fox said.
Even so, experts say threats of violence from troubled teens and young adults should be taken seriously and parents should attempt to get them a mental health evaluation and treatment if needed.
"In general, the police are unlikely to be able to do anything unless and until a crime has been committed," said Dr. Paul Appelbaum, a Columbia University professor of psychiatry, medicine and law. "Calling the police to confront a troubled teen has often led to tragedy."
The American Academy of Child & Adolescent Psychiatry says violent behavior should not be dismissed as "just a phase they're going through."
In a guidelines for families, the academy lists several risk factors for violence, including:
—Previous violent or aggressive behavior
—Being a victim of physical or sexual abuse
—Guns in the home
—Use of drugs or alcohol
—Brain damage from a head injury
Those with several of these risk factors should be evaluated by a mental health expert if they also show certain behaviors, including intense anger, frequent temper outbursts, extreme irritability or impulsiveness, the academy says. They may be more likely than others to become violent, although that doesn't mean they're at risk for the kind of violence that happened in Newtown, Conn.
Lanza, the Connecticut shooter, was socially withdrawn and awkward, and has been said to have had Asperger's disorder, a mild form of autism that has no clear connection with violence.
Autism experts and advocacy groups have complained that Asperger's is being unfairly blamed for the shootings, and say people with the disorder are much more likely to be victims of bullying and violence by others.
According to a research review published this year in Annals of General Psychiatry, most people with Asperger's who commit violent crimes have serious, often undiagnosed mental problems. That includes bipolar disorder, depression and personality disorders. It's not publicly known if Lanza had any of these, which in severe cases can include delusions and other psychotic symptoms.
Young adulthood is when psychotic illnesses typically emerge, and Appelbaum said there are several signs that a troubled teen or young adult might be heading in that direction: isolating themselves from friends and peers, spending long periods alone in their rooms, plummeting grades if they're still in school and expressing disturbing thoughts or fears that others are trying to hurt them.
Appelbaum said the most agonizing calls he gets are from parents whose children are descending into severe mental illness but who deny they are sick and refuse to go for treatment.
And in the case of adults, forcing them into treatment is difficult and dependent on laws that vary by state.
All states have laws that allow some form of court-ordered treatment, typically in a hospital for people considered a danger to themselves or others. Connecticut is among a handful with no option for court-ordered treatment in a less restrictive community setting, said Kristina Ragosta, an attorney with the Treatment Advocacy Center, a national group that advocates better access to mental health treatment.
Lanza's medical records haven't been publicly disclosed and authorities haven't said if it is known what type of treatment his family may have sought for him. Lanza killed himself at the school.
Jennifer Hoff of Mission Viejo, Calif. has a 19-year-old bipolar son who has had hallucinations, delusions and violent behavior for years. When he was younger and threatened to harm himself, she'd call 911 and leave the door unlocked for paramedics, who'd take him to a hospital for inpatient mental care.
Now that he's an adult, she said he has refused medication, left home, and authorities have indicated he can't be forced into treatment unless he harms himself — or commits a violent crime and is imprisoned. Hoff thinks prison is where he's headed — he's in jail, charged in an unarmed bank robbery.
___
Online:
American Academy of Child & Adolescent Psychiatry: http://www.aacap.org
___
AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner
Start of "Santa Claus rally" dampened by "cliff' worries
Label: BusinessNEW YORK (Reuters) - U.S. stocks edged lower on Monday as caution over the potential for volatility driven by worries about the U.S. "fiscal cliff" dampened enthusiasm at the start of a seasonally strong period for equities.
Investors are betting Congress will reach a deal to avert most of the austerity measures due to come into force at the start of next year. That has led to the best year for stocks since the post-financial crisis rebound. But those gains may be quickly reversed if a deal is not reached soon.
The S&P 500 index posted its biggest drop in more than a month on Friday as a Republican plan to avoid the cliff - $600 billion in tax hikes and spending cuts that could tip the U.S. economy into recession - failed to gain traction on Thursday night.
Sharp moves like that highlight how headlines from Washington can whipsaw markets, especially during the thinly traded period over the Christmas holiday.
Still, with the S&P 500 up 0.7 percent in December and on course for its strongest month since September, some analysts are predicting that stocks will find their footing during a market seasonality known as the "Santa Claus rally."
"Right now we've seen some very constructive action in the market so I think that bodes well for this being a positive seasonal 'Santa' period over the coming seven days," said Ari Wald, a technical analyst at The PrinceRidge Group.
He noted an all-time high in the NYSE advance-decline line, which compares advancing and declining stocks, as indication of strong participation in the rally off November lows.
"Pull-backs are buying opportunities," said Wald. "There has been really great participation on this move, a lot of small- and mid-cap stocks behaving well, pushing out to the upside; we're seeing some good leadership from offensive sectors of the market as well."
A high ratio of advancing stocks to declining issues shows there is broad participation across the equity market.
The Santa seasonality covers the last five trading days of the year and the first two of the new year. Since 1928, the S&P 500 has averaged a gain of 1.8 percent during this period and risen 79 percent of the time, according to data from PrinceRidge.
The Dow Jones industrial average <.dji> dropped 51.76 points, or 0.39 percent, to 13,139.08. The Standard & Poor's 500 Index <.spx> fell 3.49 points, or 0.24 percent, to 1,426.66. The Nasdaq Composite Index <.ixic> lost 8.41 points, or 0.28 percent, to 3,012.60.
The S&P 500 is up more than 13 percent for the year, having recovered nearly all the losses suffered in the wake of the U.S. election. The yearly gain would be the best since 2009.
Some U.S. lawmakers expressed concern on Sunday the country would go over the cliff, as some Republicans charged that was President Barack Obama's goal. Talks are stalled with Obama and House of Representatives Speaker John Boehner out of Washington for the holidays.
"It does seem like we are continuing through the same drift of the same thing we've had the past couple of weeks - 'cliff' talk," said Nick Scheumann, wealth partner at Hefty Wealth Partners in Auburn, Indiana.
"You can't trade on what you don't know and we truly don't know what they are going to do," he said.
Congress is expected to return to Washington next Thursday as President Barack Obama returns from a trip to Hawaii. As the deadline draws closer, a 'stop-gap' deal appears to be the most likely outcome of any talks.
Trading volume was muted, with U.S. equity markets closing at 1 p.m. (1800 GMT) ahead of the Christmas Day holiday on Tuesday.
In addition, a number of European markets operated on a shortened session, with other markets closed.
U.S. retailers may not see a sales surge from this weekend as ho-hum discounts and fears about imminent tax hikes and cuts in government spending give Americans fewer reasons to open their wallets in the last few days before Christmas.
Aegerion Pharmaceuticals Inc said the U.S. Food and Drug Administration approved Juxtapid capsules in patients with homozygous familial hypercholesterolemia, but will conduct a post-approval study to test long-term safety and efficacy. Shares fell 1.8 percent to $25.25.
Herbalife Ltd
Yum Brands Inc
(Reporting By Edward Krudy; Editing by Chizu Nomiyama and Dan Grebler)
As Envoy Meets Syria’s Assad, Russia Signals New Pessimism
Label: World
BEIRUT, Lebanon — Lakhdar Brahimi, the special envoy seeking an end to the Syria crisis, held an urgent meeting with President Bashar al-Assad in Damascus on Monday as new signs emerged that Mr. Assad’s grip on power was weakening and that Russia, his most important foreign backer, was moving forward with efforts to evacuate Russian diplomats and other expatriates from the country.
Mr. Brahimi, the Algerian statesman who has been the special Syria representative for the United Nations and Arab League for the past three months, did not specify the substance or tone of his discussion with Mr. Assad, describing it only in general terms in brief remarks afterward.
“The president expressed his view regarding the current situation and I briefed him on the meetings I had in several capitals with officials from different countries inside and outside the region,” Mr. Brahimi told reporters, according to an account posted on the United Nations’s Web site. “I also told him about the steps that in my view need to be taken to help the Syrian people find a way out of this crisis.”
But one member of Syria’s political opposition who said he had spoken with Mr. Brahimi’s aides said the envoy had advocated a plan for a negotiated solution first proposed in June. The opposition member, Mohamed Sarmini, said the proposal would temporarily leave Mr. Assad in power but curb his authority and create a transitional government that would theoretically remove Mr. Assad from power later — an arrangement that some members of the opposition had previously rejected as inadequate.
Another prominent opposition member, who requested anonymity because of the delicacy of the talks, said he understood that Mr. Brahimi had been intending to deliver a “final warning” to Mr. Assad. “This is a final proposal for Bashar to leave with his team, especially his military and intelligence officials,” said the opposition member, who was not in Syria.
The official Syrian state news agency, SANA, said nothing about the specifics of what was discussed at the meeting, but that Mr. Assad had “stressed the Syrian government’s keenness” to pursue efforts that “preserve the sovereignty and independence of the homeland.”
Mr. Brahimi was scheduled to meet with opposition members in Damascus on Tuesday, according to Hassan Abdel Azim, a longtime domestic dissident who took a favorable view of the envoy’s visit, reflecting the splits within the opposition movement and especially between exile and domestic opponents.
“We are going to listen first to his proposals. We support the Brahimi initiative, and we don’t say it has failed at all," he said. "Our priority for the time being is breaking the circle of violence, and transforming the solution to the crisis from military to political.”
Mr. Brahimi arrived in Damascus on Sunday as new mayhem gripped the country. His entourage was forced to drive in from Lebanon instead of flying because of insurgent threats to attack commercial traffic at the Damascus airport.
Some of the worst violence appeared to be in the town of Halfaya, in west-central Syria, where activists reported that dozens of people had been killed when a Syrian warplane dropped bombs on a bakery.
The attack, and the number of casualties, could not be immediately confirmed. A local activist said he ran to the bakery soon after he heard a warplane followed by explosions and the sound of ambulances. “There were bodies everywhere,” said the activist, who gave his name as Samer.
Photographs he took after the attack showed bodies in a heap on a bloody sidewalk outside a low-slung, heavily damaged building.
The Syrian Observatory for Human Rights, a Britain-based anti-Assad group with a network of contacts inside Syria, said Monday that it had collected the names of 43 victims, and that 15 more were unidentified. All but three of the victims were men, the group said.
The reasons for the attack were unclear, but activists speculated that it was a government response to the arrival of rebel fighters in Halfaya. The rebels occupied the town last week after embarking on a broad offensive to seize territory around the city of Hama, where the government has kept tight control after suppressing protests in the city last year. In several days of fighting, civilians have been caught between the warring sides, a volatile development in a part of the country where members of Syria’s many sects live among one another in neighboring villages.
Human rights groups have accused the government of indiscriminate attacks on or near bakeries in the past, especially in the northern city of Aleppo. In a three-week period in the summer, Human Rights Watch documented 10 separate bombings on bakeries in the city.
Top Russian diplomats said that Mr. Brahimi, perhaps trying to broker a deal that would help ease Mr. Assad out, may visit Russia as soon as this week. Russian officials have sought to distance themselves from Mr. Assad in recent weeks as the nearly two-year-old conflict in Syria has worsened, although they still strongly oppose military intervention in favor of a negotiated transition. Some Russian expatriates working in Syria were abducted earlier this month.
Russian security officials were quoted in Monday’s edition of Kommersant, a Russian daily newspaper, as saying that diplomats in Damascus would be evacuated with the help of special forces, if necessary. Authorities are also prepared to dispatch 100 officers from a special armed unit of Russia’s foreign intelligence service, called “Screen,” which was last used to evacuate Russian diplomats from Baghdad in 2003. The newspaper quoted an intelligence source saying the officers were “ready for a transfer to Damascus, however the order from above has not been given.”
Ruslan R. Aliyev, an analyst with the Center for the Analysis of Strategy and Technologies, a defense research group based in Moscow, said renewed discussion of evacuations by Russia’s Foreign Ministry reflected what he described as Moscow’s deeply pessimistic prognosis for the region.
Russia’s foreign minister, Sergey V. Lavrov, said on Saturday that several countries in the region had offered Mr. Assad asylum, but he added that Moscow would not mediate on their behalf.
It was the third visit to Syria by Mr. Brahimi since he assumed his post in August, and it occurred as fighting grew worse in the eastern and southern suburbs of Damascus, where rebel commanders say they are trying to establish staging grounds for attacks on the capital.
West-central Syria has become the latest front in the war, with the rebels attacking government checkpoints and other positions in an effort to disrupt the military’s supply lines and to push south from opposition strongholds in northern Syria. The offensive has led to growing fears for civilians in the area.
On Friday, a group of rebel fighters posted a video in which they threatened to shell Christian villages unless residents forced government loyalists to leave. Local church leaders have pleaded for peace and an end to sectarian strife.
Kareem Fahim reported from Beirut, and Ellen Barry from Moscow. Reporting was contributed by Hwaida Saad from Beirut, Hala Droubi from Jidda, Saudi Arabia, and Rick Gladstone from New York.
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