French forces take action against Mali Islamists

BAMAKO, Mali (AP) — France launched airstrikes Friday to help the government of Mali defeat al-Qaida-linked militants who captured more ground this week, dramatically raising the stakes in the battle for this vast desert nation.
French President Francois Hollande said the "terrorist groups, drug traffickers and extremists" in northern Mali "show a brutality that threatens us all." He vowed that the operation would last "as long as necessary."
France said it was taking the action in Mali at the request of President Dioncounda Traore, who declared a state of emergency because of the militants' advance.
The arrival of the French troops in their former colony came a day after the Islamists moved the closest yet toward territory still under government control and fought the Malian military for the first time in months, seizing the strategic city of Konna.
Sanda Abou Moahmed, a spokesman for the Ansar Dine group, condemned Mali's president for seeking military help from its former colonizer.
"While Dioncounda Traore asked for help from France, we ask for guidance from Allah and from other Muslims in our sub-region because this war has become a war against the crusaders," he said by telephone from Timbuktu.
For the past nine months, the Islamic militants have controlled a large swath of northern Mali, a lawless desert region where kidnapping has flourished.
"French armed forces supported Malian units this afternoon to fight against terrorist elements," Hollande said in Paris.
He did not give any details of the operation, other than to say that it was aimed in part at protecting the 6,000 French citizens in Mali, where seven of them already are being held captive.
French Foreign Minister Laurent Fabius, when asked whether France had launched airstrikes, said, "To the question of whether there was an air intervention, the response is yes." He refused to give any other details for security reasons.
France is operating helicopter gunships in Mali, two diplomats told The Associated Press. They spoke on condition of anonymity because they were not authorized to discuss the operation publicly. French special forces, who have been operating in the region recently, are also believed to be taking part in the military operation, one diplomat said.
U.N. Secretary-General Ban Ki-moon told the AP that Senegal and Nigeria also responded to an appeal from Mali's president for help to counter the militants.
Residents in central Mali said they had seen Western military personnel arriving in the area, with planes landing at a nearby airport throughout the night.
Col. Abdrahmane Baby, a military operations adviser for the foreign affairs ministry, confirmed in the Malian capital of Bamako that French forces had arrived in the country but gave no details.
"They are here to assist the Malian army," he told reporters.
Traore went on national television Friday night to declare the state of emergency, saying it would remain in effect for 10 days and could be renewed.
"The situation on the front is over all under control," he said.
Traore called on mining companies and nongovernment organizations to turn their trucks over to Malian military, raising questions about the army's ability.
State Department spokeswoman Victoria Nuland said the U.S. was "deeply concerned" by events in Mali, and that Washington was closely consulting with Paris. She said neither France nor Mali has asked for U.S. military assistance.
France has led a diplomatic push for international action in northern Mali but efforts to get an African-led force together, or to train the weak Malian army, have dragged.
The French quickly mobilized after the Islamists seized the city of Konna on Thursday, pushing closer to the army's major base in central Mali. Late Friday, Malian Lt. Col. Diarran Kone said the government had not been able to recapture the town.
The United Nations Security Council has condemned the capture of Konna and urged U.N. member states to assist Mali "in order to reduce the threat posed by terrorist organizations and associated groups."
Late last year, the 15 nations in West Africa, including Mali, agreed on a proposal for the military to take back the north, and sought backing from the U.N.
The Security Council authorized the intervention but imposed certain conditions. Those include the training of Mali's military, which has been accused of serious human rights abuses since a military coup last year sent the nation into disarray.
The fighting Wednesday and Thursday for Konna represents the first clashes between Malian government forces and the Islamists in nearly a year, since the militants seized the northern cities of Gao, Kidal and Timbuktu.
The Islamists seized the town of Douentza four months ago after brief standoff with a local militia, but pushed no farther until clashes broke out late Wednesday in Konna, a city of 50,000 people, where fearful residents cowered inside their homes. Konna is just 45 miles (70 kilometers) north of the government-held town of Mopti, a strategic port city along the Niger River.
A soldier, who spoke on condition of anonymity because he was not authorized to speak to journalists, acknowledged that the army had retreated from Konna. He said several soldiers were killed and wounded, though he did not have precise casualty figures.
Al-Qaida's affiliate in Africa has been a shadowy presence for years in the forests and deserts of Mali, a country hobbled by poverty and a relentless cycle of hunger. Most Malians adhere to a moderate form of Islam.
In recent months, however, the terrorist group and its allies have taken advantage of political instability, taking territory they are using to stock weapons and train forces.
Turbaned fighters control major towns in the north, carrying out amputations in public squares just as the Taliban did. And like in Afghanistan, they are flogging women for not covering up. Since taking control of Timbuktu, they have destroyed seven of the 16 mausoleums listed as world heritage sites.
French Foreign Minister Laurent Fabius said his government was taking action because "in recent days, the situation unfortunately deteriorated very seriously."
The delay by the international community in taking action allowed "the terrorist and criminal groups of northern Mali ... to move toward the south with the goal of ... installing a terrorist state."
The Islamists insist they want to impose Shariah only in northern Mali, though there long have been fears they could push farther south. Bamako, the capital, is 435 miles (700 kilometers) from Islamist-held territory.
Hollande said the French government will address parliament on Monday about the operation.
The intervention earned quick, widespread support from leading voices inside France across the political spectrum. Even far right leader Marine Le Pen — one of the many critics of the unpopular Hollande — called the Socialist leader's action "legitimate."
France has hundreds of troops across western Africa, with bases or sites in places such as Senegal, Ivory Coast, Chad and Gabon. However, Hollande has said that he wants to create a new relationship with former colonies in Africa.
The operation in Mali is the first military intervention under his leadership, and comes just weeks after he pulled out France's last combat troops out of Afghanistan, ending an increasingly unpopular 11-year presence there.
France was a leading force in the NATO operation against Libyan dictator Moammar Gadhafi's forces in 2011. Also that year, France played a driving role in an international military intervention to oust Ivory Coast's Laurent Gbagbo, who refused to leave power after disputed elections. Both of those operations were under Hollande's predecessor, Nicolas Sarkozy.

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Somalia: French forces attack militant base

MOGADISHU, Somalia (AP) — French commandoes on Saturday attacked a base of Islamist militants in Somalia in a hostage rescue attempt, a Somali intelligence official said. Residents of the town said they heard explosions and gunfire.
The attack occurred in the town of Bulomarer, and comes on the heels of French military intervention in Mali, another African country. The intelligence official, who insisted on anonymity because he was not allowed to discuss the case with the press, said the French commandos were trying to rescue a kidnapped military advisor who they were tipped off was being held there. A French security adviser was kidnapped by the militant Islamist group al-Shabab in Mogadishu, the capital, in 2009.
The intelligence official said the raid caused casualties but that he had no information on the hostage.
"We are aware of the deaths of several al-Shabab fighters during the operation," he said. "Helicopters dropped off soldiers to rescue the man. We don't have confirmations that the man has been rescued."
The office of Col. Thierry Burkhard, the French military's main spokesman for overseas operations, said it had no information about any Somalia action.
An al-Shabab official confirmed that fighting began after helicopters dropped off soldiers.
"Five helicopters attacked a house in the town. They dropped soldiers off the ground, so that they could reach their destination... but fighting has broken out," he said on condition of anonymity because he was not authorized to speak to the press.
The al-Shabab official said that some soldiers were killed, but the group held only one dead French soldier.
"We had Mujahideen fighters already deployed there who fought back the French soldiers. We killed some of their soldiers but only one dead soldier in a French military uniform is in our hands now," he said.
With France having acted Friday to help Mali against al-Qaida-linked militants who hold more than half of that country and are encroaching further on government-held territory, the raid in Somalia could have been aimed at preventing al-Shabab fighters from harming the French hostage in reprisal. The attack was swift and loud, local residents said.
"We heard a series of explosions followed by gunfire just seconds after a helicopter flew over the town," Mohamed Ali, a resident of Bulomarer, told The Associated Press by phone. "We don't know exactly what happened but the place was an al-Shabab base and checkpoint.

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Mali war escalates with French intervention

BAMAKO, Mali (AP) — With Islamist militants controlling more than half of the northwest African nation of Mali and threatening the rest of government-held territory, France launched airstrikes in a dramatic escalation of the conflict that some observers have called the next Afghanistan. French commandoes also reportedly attacked an Islamist base in Somalia to try to rescue a French hostage.
The raid early Saturday in Somalia could have been aimed at preventing al-Shabab fighters from harming the kidnapped French security official in reprisal for the French military intervention in Mali. A Somali intelligence official, who insisted on anonymity because he was not allowed to discuss the case with the news media, said the raid in Bulomarer killed "several" al-Shabab fighters but he had no information on the hostage.
An al-Shabab official confirmed the fighting and said the group held one dead French soldier. He spoke on condition of anonymity because he was not authorized to speak to the press.
However, the office of Col. Thierry Burkhard, the French military's main spokesman for overseas operations, said it had no information about any Somalia action.
French President Francois Hollande said the "terrorist groups, drug traffickers and extremists" in northern Mali "show a brutality that threatens us all." He vowed that the operation would last "as long as necessary."
France said it was taking the action in Mali at the request of President Dioncounda Traore, who declared a state of emergency because of the militants' advance.
The arrival of the French troops in their former colony came a day after the Islamists moved the closest yet toward territory still under government control and fought the Malian military for the first time in months, seizing the strategic city of Konna.
Sanda Abou Moahmed, a spokesman for the Ansar Dine group, condemned Mali's president for seeking military help from its former colonizer.
"While Dioncounda Traore asked for help from France, we ask for guidance from Allah and from other Muslims in our sub-region because this war has become a war against the crusaders," he said by telephone from Timbuktu.
For the past nine months, the Islamic militants have controlled a large swath of northern Mali, a lawless desert region where kidnapping has flourished.
"French armed forces supported Malian units this afternoon to fight against terrorist elements," Hollande said in Paris.
He did not give any details of the operation, other than to say that it was aimed in part at protecting the 6,000 French citizens in Mali, where seven of them already are being held captive.
Saturday's raid in Somalia was swift and loud, local residents said. The Somali intelligence official said the French commandos were trying to rescue a kidnapped military adviser who they were tipped off was being held there. A French security adviser was kidnapped by the militant Islamist group al-Shabab in Mogadishu, the capital, in 2009.
"We heard a series of explosions followed by gunfire just seconds after a helicopter flew over the town," Mohamed Ali, a resident of Bulomarer, told The Associated Press by phone. "We don't know exactly what happened but the place was an al-Shabab base and checkpoint."
French Foreign Minister Laurent Fabius confirmed that in Mali, France had carried out airstrikes. He refused to give details for security reasons.
France is operating helicopter gunships in Mali, two diplomats told The Associated Press. They spoke on condition of anonymity because they were not authorized to discuss the operation publicly. French special forces, who have been operating in the region recently, are also believed to be taking part in the military operation, one diplomat said.
U.N. Secretary-General Ban Ki-moon told the AP that Senegal and Nigeria also responded to an appeal from Mali's president for help to counter the militants.
Residents in central Mali said they had seen Western military personnel arriving in the area, with planes landing at a nearby airport throughout the night.
Col. Abdrahmane Baby, a military operations adviser for the foreign affairs ministry, confirmed in the Malian capital of Bamako that French forces had arrived in the country but gave no details.
"They are here to assist the Malian army," he told reporters.
Traore went on national television Friday night to declare the state of emergency, saying it would remain in effect for 10 days and could be renewed.
"The situation on the front is over all under control," he said.
Traore called on mining companies and nongovernment organizations to turn their trucks over to Malian military, raising questions about the army's ability.
State Department spokeswoman Victoria Nuland said the U.S. was "deeply concerned" by events in Mali, and that Washington was closely consulting with Paris. She said neither France nor Mali has asked for U.S. military assistance.
France has led a diplomatic push for international action in northern Mali but efforts to get an African-led force together, or to train the weak Malian army, have dragged.
The French quickly mobilized after the Islamists seized the city of Konna on Thursday, pushing closer to the army's major base in central Mali. Late Friday, Malian Lt. Col. Diarran Kone said the government had not been able to recapture the town.
The United Nations Security Council has condemned the capture of Konna and urged U.N. member states to assist Mali "in order to reduce the threat posed by terrorist organizations and associated groups."
Late last year, the 15 nations in West Africa, including Mali, agreed on a proposal for the military to take back the north, and sought backing from the U.N.
The Security Council authorized the intervention but imposed certain conditions. Those include the training of Mali's military, which has been accused of serious human rights abuses since a military coup last year sent the nation into disarray.
The fighting Wednesday and Thursday for Konna represents the first clashes between Malian government forces and the Islamists in nearly a year, since the militants seized the northern cities of Gao, Kidal and Timbuktu.
The Islamists seized the town of Douentza four months ago after brief standoff with a local militia, but pushed no farther until clashes broke out late Wednesday in Konna, a city of 50,000 people, where fearful residents cowered inside their homes. Konna is just 45 miles (70 kilometers) north of the government-held town of Mopti, a strategic port city along the Niger River.
A soldier, who spoke on condition of anonymity because he was not authorized to speak to journalists, acknowledged that the army had retreated from Konna. He said several soldiers were killed and wounded, though he did not have precise casualty figures.
Al-Qaida's affiliate in Africa has been a shadowy presence for years in the forests and deserts of Mali, a country hobbled by poverty and a relentless cycle of hunger. Most Malians adhere to a moderate form of Islam.
In recent months, however, the terrorist group and its allies have taken advantage of political instability, taking territory they are using to stock weapons and train forces.
Turbaned fighters control major towns in the north, carrying out amputations in public squares just as the Taliban did. And like in Afghanistan, they are flogging women for not covering up. Since taking control of Timbuktu, they have destroyed seven of the 16 mausoleums listed as world heritage sites.
French Foreign Minister Laurent Fabius said his government was taking action because "in recent days, the situation unfortunately deteriorated very seriously."
The delay by the international community in taking action allowed "the terrorist and criminal groups of northern Mali ... to move toward the south with the goal of ... installing a terrorist state."
The Islamists insist they want to impose Shariah only in northern Mali, though there long have been fears they could push farther south. Bamako, the capital, is 435 miles (700 kilometers) from Islamist-held territory.
Hollande said the French government will address parliament on Monday about the operation.
The intervention earned quick, widespread support from leading voices inside France across the political spectrum. Even far right leader Marine Le Pen — one of the many critics of the unpopular Hollande — called the Socialist leader's action "legitimate."
France has hundreds of troops across western Africa, with bases or sites in places such as Senegal, Ivory Coast, Chad and Gabon. However, Hollande has said that he wants to create a new relationship with former colonies in Africa.
The operation in Mali is the first military intervention under his leadership, and comes just weeks after he pulled out France's last combat troops out of Afghanistan, ending an increasingly unpopular 11-year presence there.
France was a leading force in the NATO operation against Libyan dictator Moammar Gadhafi's forces in 2011. Also that year, France played a driving role in an international military intervention to oust Ivory Coast's Laurent Gbagbo, who refused to leave power after disputed elections. Both of those operations were under Hollande's predecessor, Nicolas Sarkozy.

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Nats bolster pitching staff with deal for Haren

(Reuters) - The Washington Nationals bolstered their already strong pitching rotation by agreeing to a one-year, $13 million contract with right-hander Dan Haren, Major League Baseball's (MLB) website reported on Tuesday.
Haren, pending a physical, will join a rotation that boasts Stephen Strasburg, Jordan Zimmermann and Gio Gonzalez, effectively replacing Edwin Jackson from a staff that helped the Nats to an MLB-best 98-64 record last season.
Three-time All-Star Haren played the last two-plus seasons with the Los Angeles Angels. Haren, 32, missed time because of back and hip injuries but still made 30 starts and won 12 games for Los Angeles last season.
Haren, who has a career 119-97 record, began his career with the St. Louis Cardinals in 2003 before playing three seasons with the Oakland Athletics and two and a half seasons with the Arizona Diamondbacks.

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Giants agree deal to keep playoff hero Scutaro

(Reuters) - National League Championship Series MVP Marco Scutaro has agreed a $20 million three-year deal to stay with the San Francisco Giants, the World Series winners said on Tuesday.
The 37-year-old second baseman was acquired by San Francisco in a mid-season trade with Colorado and he paid great dividends down the stretch as the Giants claimed their second World Series in three years.
Scutaro batted .362 with 44 RBIs in his 61 regular season games with the Giants, then he raised his game when it mattered most during the post-season.
Scutaro is the third free agent retained by San Francisco as they keep their championship core intact.
The team also agreed to contracts with pitcher Jeremy Affeldt and outfielder Angel Pagan.
(Writing by Jahmal Corner in Los Angeles.

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Reds land Korean Choo in trade with Indians, D-Backs

(Reuters) - The Cincinnati Reds acquired South Korean outfielder Choo Shin-soo from the Cleveland Indians on Tuesday in a three-team trade that involved nine players.
The 30-year-old Choo, entering the final year of his contract, declined to sign an extension with the Indians and will now give the Reds a potential lead-off hitter who batted .283 with 16 home runs last season.
"He fills the one big void that we had and that was a lead-off hitter and someone with the ability to get on base," Reds General Manager Walt Jocketty told MLB.com.
The Reds also picked up infielder Jason Donald and $3.5 million from Cleveland.
In exchange, the Indians receive outfielder Drew Stubbs and 21-year-old pitching prospect Trevor Bauer from the Reds along with pitchers Matt Albers and Bryan Shaw from the Arizona Diamondbacks.
The Diamondbacks get shortstop Didi Gregorius from Cincinnati along with pitcher Tony Sipp and infielder Lars Anderson from the Indians.

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An iPhone priced below $200 would devastate RIM and Nokia – and Apple’s margins

Both Bloomberg and the Wall Street Journal now believe Apple (AAPL) is seriously considering launching a cheap iPhone. Speculation about this has been going on for years. But the probable price range mentioned by Bloomberg is a huge shock: The rumored retail price range of $100 to $150 is far below what had earlier been assumed. The iPhone 5 tends to sell for more than $700 in emerging markets. The 2-year old iPhone still costs more than $500. That is the reason why iPhone market share is fading below 5% in major markets like Brazil. But industry experts had widely assumed that the retail price of a low-end iPhone would be somewhere around $250 to $300. Even this would trigger radical changes in the handset markets around the globe.
[More from BGR: iPhone 5 now available with unlimited service, no contract on Walmart’s $45 Straight Talk plan]
Anything under $200 would be an earthquake. Smartphones with capacitive touch screens and 1 GHz processors selling under $150 at retail cannot have operating margins above 15%. Nokia (NOK) has 70 million unit quarterly feature phone volumes and a lot of experience in tight cost control. Yet even Nokia cannot get the operating margins of its latest and most desirable Asha models costing less than $150 much above 10%. You can only lower touch screen quality or processing power of a low-end iPhone so far. Moving to a resistive touch screen or a 600 MHz processor would splinter the iOS app market.
[More from BGR: CES has sadly become a complete waste of time]
If Apple truly is willing to dive into the sub-$200 gutter, the impact on vendors from RIM (RIMM) and Nokia to HTC (2498) and LG (066570) would be devastating. The best-selling prepaid smartphone in the United Kingdom right now may be the Huawei Ascend G300, a device with 4-inch display, 5 megapixel camera and 2.5 GB of internal memory that sells for about $160. This is the sweet spot of the budget smartphone market from Europe to Asia. It is quite possible to do a cheap iPhone with these specs, priced at $150 in the fourth quarter of 2013 and shoot for maybe a 10% operating margin.
That device would sell a hundred million units in a year with no marketing, if the production can be ramped up fast enough. It would reverse the market share losses Apple has recently suffered from Brazil to Germany literally in a quarter or two. But would Apple really be willing to tolerate the massive margin hit such a product would trigger? Being the champion of the mobile software market is worth a lot. But a sub-$150 iPhone would carry the obvious risk of cannibalizing the $650 iPhone sales deeply and permanently. The performance requirements created by the iOS app market prevent Apple from constraining the budget iPhone with truly low-end components.
Of course, the strategic impact of a bargain basement iPhone would be momentous. Apple would get to play Attila the Hun and literally wipe out smaller rivals who couldn’t possibly undercut a $150 iPhone on price. It is worth noting that one of the best-selling Nokia feature phones, the Asha 311, costs about $140 in retail. If Bloomberg is right, Apple is preparing to attack with a smartphone priced to the level of a feature phone that was created specifically for Africa and India.
It is clear that Apple is being forced into a corner. Google (GOOG) Play app revenue growth is now far faster than iOS app revenue growth. Instat claims that the page views of Android smartphones have started soaring above page views of iPhones across various markets. Apple cannot allow Google to gain hegemony in mobile content consumption in Asia, Latin America and Africa. Something has to be done. But the plunge into deep budget territory that Bloomberg is describing is very difficult to believe.

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Samsung sets sights on RIM’s corporate users

Now that Samsung (005930) has bested Apple in the consumer smartphone market, at least where shipment volume is concerned, the company is setting its sights on Research in Motion’s (RIMM) corporate user base. The company is investing heavily in enterprise devices that incorporate a higher level of security and reliability than consumers require. Various government agencies and corporations aren’t fully sold on RIM’s upcoming BlackBerry 10 operating system and are still unsure if will satisfy their needs. As a result, they have begun to explore alternatives for their employees.
[More from BGR: iPhone 5 now available with unlimited service, no contract on Walmart’s $45 Straight Talk plan]
“The enterprise space has suddenly become wide open,” Kevin Packingham, chief product officer for Samsung Mobile USA, said in an interview with Reuters. “The RIM problems certainly fueled a lot of what the CIOs are going through, which is they want to get away from a lot of the proprietary solutions.”
[More from BGR: CES has sadly become a complete waste of time]
The executive revealed that Samsung’s corporate market ambitions advanced after its flagship Galaxy S III smartphone gained various security certifications. He noted that companies “want something that integrates what they are doing with their IT systems,” and that “Samsung is investing in that area.” Packingham said that enterprise has been a focus of the company for a long time and its products have finally evolved enough to “really take advantage” of the market.
“We knew we had to build more tech devices to successfully enter the enterprise market,” he said. “What really turned that needle was that we had the power of the GS3.

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Three top U.S. wireless carriers to embrace BlackBerry 10

LAS VEGAS (Reuters) - Three of the top U.S. cellphone carriers signaled this week that they would support Research In Motion's BlackBerry 10 products, the first of which are due to be unveiled Jan 30, offering a hopeful sign for RIM's comeback effort.
Executives at Verizon Communications , AT&T Inc and T-Mobile USA all said they are looking forward to the devices, which will be crucial for RIM's chances of regaining lost ground from rivals such as Apple Inc and Samsung Electronics .
"We're hopeful its going to be a good device," Lowell McAdam, chief executive of Verizon Communications, majority owner of the biggest U.S. mobile service Verizon Wireless.
"We'll carry it," McAdam said in an interview at the Consumer Electronics Show in Las Vegas.
BlackBerry 10 is RIM's next-generation mobile operating platform and it is preparing to launch new smartphones later this month. Word that major carriers will offer the devices is good news for RIM.
RIM, which once commanded the lead in the smartphone market, has rapidly lost ground to Apple's iPhone and Samsung's line of Galaxy products, especially in North American and European markets, as customers abandon its aging BlackBerry devices.
It has been testing the new BlackBerry 10 devices with carriers so they can assess their compatibility with networks.
No. 4 U.S. mobile provider T-Mobile USA, a unit of Deutsche Telekom , also plans to carry the new BlackBerry 10.
"We're extremely optimistic that it's going to be a successful product and our business customers are extremely interested in it," Chief Executive John Legere said.
AT&T has promised to support the BlackBerry 10 platform, according to Chief Marketing Officer David Christopher, but he would not discuss specific devices.
However, AT&T handset executive Jeff Bradley made it clear that the No. 2 U.S. mobile operator would carry the phone.
"It's logical to expect our current (BlackBerry) customers will have the best BlackBerry devices to choose from in the future," Bradley said.

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Rate on 30-year mortgage ticks up to 4 percent

WASHINGTON (AP) — The average rate on the 30-year mortgage hovered above the record low for a third straight week. But cheap mortgage rates have done little to boost home sales or refinancing.
Freddie Mac said Thursday that the rate on the 30-year loan ticked up to 4 percent from 3.99 percent. Six weeks ago, it dropped to a record low of 3.94 percent, according to the National Bureau of Economic Research.
The average rate on the 15-year fixed mortgage rose to 3.31 percent from 3.30 percent. Six weeks ago, it hit a record low of 3.26 percent.
Rates have been below 5 percent for all but two weeks this year. Yet this year could be the worst for home sales in 14 years.
Mortgage applications fell 10 percent this week from the previous week, according to the Mortgage Bankers Association.
High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many Americans don't want to sink money into a home that could lose value over the next three to four years. And most homeowners who can afford to refinance already have.
The low rates have caused a modest boom in refinancing, but that benefit might be wearing off. Most people who can afford to refinance have already locked in rates below 5 percent. Refinancing fell 12.2 percent last week, according to the mortgage bankers group.
The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fees for the 30-year and 15-year fixed mortgages were unchanged at 0.7.
The average rate on the five-year adjustable loan fell to 2.97 percent from 2.98 percent. The average rate on the one-year adjustable loan increased to 2.98 percent from 2.95 percent.
The average fees on the five-year and one-year adjustable loans were both unchanged at 0.6.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.

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Rate on 30-year fixed mortgage falls to 3.98 pct.

WASHINGTON (AP) — The average rate on the 30-year fixed mortgage hovered above its record low for a fourth straight week. But cheap mortgage rates have done little to boost home sales or refinancing.
Freddie Mac says the rate on the 30-year fixed loan fell to 3.98 percent from 4 percent the previous week. Seven weeks ago, it dropped to a record low of 3.94 percent, according to the National Bureau of Economic Research.
The average rate on the 15-year fixed mortgage edged down to 3.3 percent from 3.31 percent. Seven weeks ago, it too hit a record low of 3.26 percent.
Rates have been below 5 percent for all but two weeks this year. Yet this year could be the worst for home sales in 14 years.

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U.S. Housing Market Still On Life Support; Prices At 2003 Levels

With each passing year, the former Oracle of the Fed, Alan Greenspan, is reminded that there really was a housing bubble and lowering interest rates to record lows just made matters worse.  Nearly four years after the housing market peak in 2007, record low mortgage rates are no match for falling incomes and 9% unemployment.
The Case-Shiller Home Price Index, released on Tuesday, showed that nation wide home prices did not register a significant change in the third quarter of 2011, with the U.S. National Home Price Index up by only 0.1% from its second quarter level. Home prices are down 3.9% across the board and are now back to their first quarter of 2003 levels. The market consensus was for a 3% decline year over year.
From August to September, housing prices have fallen the most in Atlanta, with a 5.9% decline, followed by Tampa Bay and San Francisco, both with a 1.5% drop in housing prices.
Boston, New York, Washington and Los Angeles remain the most expensive cities in the lower 48 states.
"The plunging collapse of prices seen in 2007-2009 seems to be behind us," says David M. Blitzer, Chairman of the Index Committee at S&P Indices. "Any chance for a sustained recovery will probably need a stronger economy."

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Angels land slugger Hamilton in $125 million deal: report

(Reuters) - Free agent slugger Josh Hamilton has agreed to a five-year, $125 million deal to join the Los Angeles Angels, Major League Baseball's (MLB) website reported on Thursday.
The five-time All-Star, who overcame drug and alcohol addictions to become one of MLB's most feared hitters, helped power the Texas Rangers to consecutive World Series appearances in 2010 and 2011.
The 31-year-old hard-hitting outfielder broke into the major leagues in 2007 with the Cincinnati Reds but spent the next five years with the Rangers and took home American League Most Valuable Player (MVP) honors in 2010.
Hamilton has a career .304 batting average, 553 runs batted in and 161 home runs, including a career-high 43 last season.
He joins an Angels team that already boasts three-time National League MVP Albert Pujols, a 32-year-old slugger who signed with the team last offseason.

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Angels land slugger Hamilton in $125 million deal

(Reuters) - The Los Angeles Angels grabbed Major League Baseball's prized free agent for a second consecutive year on Thursday by signing slugger Josh Hamilton to a five-year, $125 million contract.
Hamilton, a five-time All-Star who overcame drug and alcohol addictions to become one of Major League Baseball's most feared hitters, powered the Texas Rangers to consecutive World Series appearances in 2010 and 2011.
He joins a high-powered Angels lineup that includes three-time National League Most Valuable Player (MVP) Albert Pujols, a 32-year-old slugger who signed a 10-year $240 million deal with the team last year.
The Rangers had been hopeful of resigning the 2010 American League MVP and admitted they were caught off guard by Hamilton's jump to their American League West division rivals.
"Our full expectation was that the phone call was going to be before he signed, certainly not after," Texas General Manager Jon Daniels said on the team's website.
"Josh had indicated recently, last week, he told us he felt it might be time to move on but that we were still talking ... I'm a little disappointed in how it was handled, but he had a decision to make and he made it."
The 31-year-old hard-hitting outfielder broke into the major leagues in 2007 with the Cincinnati Reds but was traded to the Rangers the following year.
Hamilton has a career .304 batting average, 553 runs batted in and 161 home runs, including a career-high 43 last season.
The Rangers stood by Hamilton as he battled to control is addictions, including a relapse before the start of last season.
But the slugger got the campaign off to a sizzling start and looked to be a Triple Crown threat after slamming 18 homers in the Rangers' opening 34 games.
Hamilton, however, saw his production fall off in the second half of the season finishing with a .285 batting average and 128 runs batted in.
"Josh has done a lot for the organization, the organization has done a lot for Josh -- a lot of things that aren't public and things of that nature," said Daniels.

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Yankees sign former rival Youkilis to one-year deal

NEW YORK (Reuters) - Former Red Sox rival Kevin Youkilis officially joined the New York Yankees on Friday when he signed a one-year contract to fill a void left by the absence of Alex Rodriguez, the American League team said.
The three-time All-Star, 33, will serve as the starting third baseman with slugger Rodriguez expected to be sidelined until midseason after having surgery on his left hip.
The deal for Youkilis, a career .283 hitter, will pay the infielder $12 million, according to media reports.
Youkilis, who has played all but 80 games of his nine-year major league career for Boston, batted a combined .235 last season with 19 home runs and 60 runs batted in 122 games for Boston and the Chicago White Sox, to whom he was traded in late June.
Rodriguez told reporters at a recent charity event in Miami that Youkilis would be a good addition to the Yankees' lineup.
"Youk has always been a tough out," he said. "He's a tough player, a guy that's a winning player."
With Youkilis's deal finalized, the Yankees were working to finalize a two-year contract with Japanese outfielder Ichiro Suzuki.
Acquired by the Yankees in July from the Mariners, Ichiro thrived in New York, batting .322 with five homers, 27 RBIs and 14 stolen bases in 67 games and provided a late-season spark that helped the club win the American League East title.
Overall last season, Ichiro batted .283 with nine homers, 55 RBIs and 29 stolen bases.
It was believed New York was nearing agreement on a two-year deal that would present Ichiro a chance to reach the 3,000-hit mark with the Yankees.
Ichiro, a career .322 hitter, has amassed 2,606 hits in the major leagues since coming to the Mariners from Japan in 2001.

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Fixed mortgage rates rise above record lows

WASHINGTON (AP) — Fixed mortgage rates rose slightly this week off their record lows. The year ends much like it began, with few people able to take advantage of the best rates in history.
Freddie Mac says the average on the 30-year home loan increased to 3.95 percent from 3.91 percent. Last week's rate was the lowest average on records dating to the 1950s.
The average on the 15-year fixed mortgage rose to 3.24 percent. That's up from 3.21 percent, also a record low.
Rates have been below 5 percent for all but two weeks in 2011. Even so, this year is shaping up to be one of the worst ever for home sales.

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Fixed mortgage rates end year above record lows

WASHINGTON (AP) — Fixed mortgage rates rose slightly this week off their record lows. The year ends much like it began, with few people able to take advantage of the best rates in history.
Freddie Mac said Thursday that the average on the 30-year home loan increased to 3.95 percent from 3.91 percent. Last week's rate was the lowest average on records dating to the 1950s.
The average on the 15-year fixed mortgage rose to 3.24 percent. That's up from 3.21 percent, also a record low.
Rates have been below 5 percent for all but two weeks in 2011. Even so, this year is shaping up to be one of the worst ever for home sales.
Previously occupied homes are selling just slightly ahead of last year's dismal pace. And new-home sales appear headed for their worst year on records going back half a century.
Next year could be better. More than 5 percent of households said this month they plan to purchase a home within the next six months, according to the Conference Board.
Builders are also hopeful that the low rates could boost sales next year. Low mortgage rates were cited as a key reason the National Association of Home Builders survey of builder sentiment rose in December to its highest level in more than a year.
But so far, rates are having no major impact. Mortgage applications have fallen slightly in recent weeks, according to the Mortgage Bankers Association.
High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many Americans don't want to sink money into a home that they fear could lose value over the next few years.
To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week. The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for the 30-year loan was unchanged at 0.7; the average on the 15-year fixed mortgage was unchanged at 0.8.
For the five-year adjustable loan, the average rate rose to 2.88 percent from 2.85 percent. The average on the one-year adjustable loan ticked up to 2.78 percent from 2.77 percent.
The average fees on the five- and one-year adjustable-rate loans were unchanged at 0.6.

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Credit score focus of new celeb-backed debit card

NEW YORK (AP) — Personal finance media personality Suze Orman is thinking big. She's the   first out of the gate in the fast-growing prepaid debit card market with a card that aims to help its users build a credit score. It's a gamble that could pay off, if it can help create a way measure the creditworthiness of millions who function outside the traditional financial system.
The latest in a string of celebrities to put their stamp on a prepaid card, Orman will likely avoid the criticism about high fees lobbed at earlier offerings, such as those of hip-hop mogul Russell Simmons and reality show stars the Kardashians. Orman's card costs $3 to obtain, and then just $3 a month, rivaling the hugely popular Walmart MoneyCard.
Although some will question how Orman will recoup the more than $1 million she has invested in the card when charging that little, the real twist isn't the low fee structure. Orman is working with credit reporting agency TransUnion to create a new kind of credit score for users of "The Approved" prepaid MasterCard, one that's based on their spending habits.
Right now, using debit cards — both the prepaid kind and those tied to bank accounts — does not influence an individual's credit score, which is calculated with data related to borrowing. If Orman's experiment is successful, this new type of score could be a game-changer for the estimated 60 million Americans who do most or all of their personal business in cash or with cash alternatives like prepaid cards.
The TV adviser said she approached several companies, urging them to agree to develop such a score, and TransUnion ultimately agreed to gather spending data for 18 to 24 months. It will use that data to try to come up with a formula that works as a way to predict whether the user is a good risk for lenders.
"This is truthfully a work in progress," said Orman.
Banks and other lenders are interested in creating ways to measure how prepaid cards are used, because of the huge market they represent. Consumers loaded an estimated $70.7 billion onto prepaid cards in 2011, up from $2.7 billion in 2005, according to consultancy Mercator Advisory Group.
Mercator projects the market will top $120 billion this year if adoption continues at the same pace.
In general, users can be divided into three groups. The first subset is those caught up in the economy — people who had good credit until it was damaged by events like unemployment or foreclosure. Second are those who have not yet built credit histories, mainly the young and recent immigrants. The third group avoids banks, often because of negative experiences, such as racking up high overdraft fees.
"Wouldn't it be fabulous if, for the first time in history, people are literally rewarded for spending cash, versus penalized, in my opinion, for doing so?" Orman said.
The problem with traditional credit scores from FICO Inc. and its competitors is that they measure how well individuals keep up with their payments, but don't pay any attention to their overall financial health, she said. "Scoring doesn't question where the money is coming from to make payments."
Prepaid cards have already filled some of the void for those who don't use banks, especially because they can be used to receive paychecks via direct deposit. But because they don't contribute to credit scores, the cards can't help users get a mortgage, a car loan or a credit card.
Not having a credit score, or having a low one, also drives up the cost of living in other ways. Lower scores can mean higher car insurance rates, higher rent, difficulty getting a job and paying higher interest rates for any credit available. People with little credit history — known as a "thin file" in the industry — are also the most likely to use alternative services like payday lenders, check cashing stores and bill pay services. These are expensive options when compared with credit cards and banks.
FICO Inc. and other companies use data tied to borrowing to determine a score meant to measure the likelihood an individual will pay back future loans. FICO's 300-to-850 scale is based on an individual's history making payments on loans, the percentage of available credit that is being used and how long the individual has used credit, among other data.
Those with thin credit files have a better chance of having their creditworthiness reflected by FICO's "expansion score," which factors in data like utility bill payments and rent payments. FICO CEO Mark Greene said the expansion scores have shown that the population without traditional scores mirrors to the larger population in terms of credit risk. Other credit score providers are beginning to provide measures based on utility payments and other nontraditional data.
One big difference for developing a prepaid score, however, is that these alternatives still measure how well individuals meet obligations, not how they spend the rest of their income.
"Spending is not actually a great indicator of the thing that we're trying to measure, which is the likelihood you're going to pay your bill," Greene said. "We need to be careful about how we approach that issue."
Another issue a prepaid-linked score must address is the fact that the typical reloadable card is used for just three to four months, said Brian Riley, who analyzes the card market for the consultant The Tower Group.
That timeframe is likely to expand, however, because more users are beginning to have their paychecks deposited to reload prepaid cards. Adding rewards and services, and cutting fees, may also increase customer loyalty.
Orman is adamant that her card will carry only a $3-per-month fee for users who load at least $20 per month onto it. Fees will rise only if the user uses ATMs outside the network it is linked to when withdrawing cash. Consumers who use The Approved Card will also get daily text messages updating their balance, along with one after each purchase, and other free services like ID theft monitoring, credit monitoring and free credit reports from TransUnion.
The media star, whose new show on the Oprah Winfrey Network premieres Monday, said she knows creating the score will be an uphill battle, but believes that if successful, it will help both lenders and borrowers. "You've got to start it somewhere, and this is the beginning of that process."

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Venezuelans take in shifting news on Chavez health

CARACAS, Venezuela (AP) — Venezuelans began 2013 with a respite from shifting news about the health of President Hugo Chavez, who hasn't been seen in public since his fourth cancer-related surgery three weeks ago.
The country was largely peaceful Tuesday after a New Year's Eve that saw a main government-organized celebration canceled due to Chavez's illness.
Jorge Rodriguez, a Chavez ally and mayor of a Caracas district, reiterated that the president is going through a "complex post-operative process."
He told reporters Tuesday that Venezuelans have shown an outpouring of compassion and support for a leader who has "been planted in the hearts of millions." Rodriguez urged Venezuelans to keep Chavez in their prayers and expressed hope the president would recover.
Chavez's son-in-law Jorge Arreaza, who is the government's science minister and has been with the president in Cuba, urged Venezuelans in a Twitter message Monday night not to believe "bad-intentioned rumors" circulating online. "President Chavez has spent the day calm and stable, accompanied by his children," Arreaza said in the message.
That followed a grim announcement from Vice President Nicolas Maduro on Sunday that the president had suffered new complications due to a respiratory infection that appeared after the surgery.
Bolivian President Evo Morales issued a New Year Eve greeting to Chavez lamenting the health problems plaguing his "anti-imperialist comrade."
Morales said he was sending wishes for "strength, energy, and for him to be able to recover soon." Morales made a visit to Havana last week to visit Chavez, but didn't refer to that trip.
In Bolivar Plaza in downtown Caracas, Chavez's supporters strummed guitars and read poetry in his honor on Monday night, singing along with a recording of the president belting out the national anthem.
About 300 people also filled a Caracas church for a Mass to pray for Chavez.
"This country would be terrible without Chavez. He's the president of the poor," said Josefa Carvajal, a 75-year-old former maid who sat in the pews. "They say the president is very sick. I believe he's going to get better."
Chavez's aides held a Mass as well, at the presidential palace, while government officials urged Venezuelans to keep their leader in their prayers.
Venezuelans rang in the New Year as usual with fireworks raining down all over the capital of Caracas. But some of Chavez's supporters had long faces as they gathered in Bolivar Plaza on Monday night holding pictures of the president. A government-sponsored celebration there had been called off.
Speaking to the crowd, lawmaker Earle Herrera said Chavez "is continuing to fight the battle he has to fight."
"He's an undefeated president, and he'll continue to be undefeated," Herrera said.
Political analyst Ricardo Sucre said the outlook for Chavez appeared dark. Sucre noted that Maduro appeared weary during a solemn televised appearance Sunday to announce the latest setback for Chavez.
"Everything suggests Chavez's health situation hasn't evolved as hoped," Sucre said. He said Maduro likely remained in Havana to keep close watch on how Chavez's condition develops.
"These hours should be key to having a more definitive prognosis of Chavez's health, and as a consequence to making the corresponding political decisions according to the constitution," Sucre said.
Sucre and other Venezuelans said it seems increasingly unlikely that Chavez would be able to be sworn in as scheduled Jan. 10 for his new term. The Venezuelan leader has not been seen or heard from since undergoing the Dec. 11 operation.
If Chavez dies or is unable to continue in office, the Venezuelan Constitution says a new election should be held within 30 days.
Before his operation, Chavez acknowledged he faced risks and designated Maduro as his successor, telling supporters they should vote for the vice president if a new presidential election was necessary.
Chavez said at the time that his cancer had come back despite previous surgeries, chemotherapy and radiation treatment. He has been fighting an undisclosed type of pelvic cancer since June 2011.
Medical experts say it's common for patients who have undergone major surgeries to suffer respiratory infections and that how a patient fares can vary widely from a quick recovery in a couple of days to a fight for life on a respirator.
On the streets of Caracas, images of Chavez smiling and saluting were emblazoned on campaign signs and murals. One newly painted mural read: "Be strong, Chavez."
State television played video of Chavez campaigning for re-election, including one of the president shouting: "I am a nation!"
A new government sign atop a high-rise apartment complex reads: "YOU ALSO ARE CHAVEZ."
Norelys Araque, who was selling holiday cakes on a sidewalk Monday, said she has been praying for Chavez. But, she added, "I don't think he will last long."
Araque said her family has benefited from state-run subsidized food markets and education programs started by Chavez, and that she hopes the government carries on with the president's programs if he doesn't survive.
Chavez has been in office since 1999 and was re-elected in October, three months after he had announced that his latest tests showed he was cancer-free.

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Venezuelan VP says he has visited Chavez twice

CARACAS, Venezuela (AP) — Venezuela's vice president says he has visited ailing President Hugo Chavez twice in Cuba and plans to return home to Caracas.
Vice President Nicolas Maduro says he spoke with Chavez during their visits. Maduro says the president has "the same strength as always," despite a health situation that he described as complex three weeks after his cancer surgery.
Maduro says he will return to Venezuela on Wednesday.
He made the comments in an interview broadcast Tuesday night by the Caracas-based television network Telesur.

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Venezuelans on edge amid shifting news on Chavez

CARACAS, Venezuela (AP) — Supporters and opponents of President Hugo Chavez alike nervously welcomed the new year Tuesday, left on edge by shifting signals from the government about the Venezuelan leader's condition three weeks after cancer surgery in Cuba.
With rumors swirling that Chavez had taken a turn for the worse, Vice President Nicolas Maduro said in a televised interview in Cuba that he had met with the president twice, spoken with him and planned to return to Venezuela on Wednesday.
Maduro said Chavez faces "a complex and delicate situation." But Maduro also said that when he talked with the president and looked at his face, he seemed to have "the same strength as always."
"All the time we've been hoping for his positive evolution. Sometimes he has had light improvements, sometimes stationary situations," Maduro said in the prerecorded interview, which was broadcast Tuesday night by the Caracas-based television network Telesur.
"I was able to see him twice, converse with him. He's totally conscious of the complexity of his post-operative state and he expressly asked us ... to keep the nation informed always, always with the truth, as hard as it may be in certain circumstances," Maduro said.
Chavez has not been seen or heard from since the Dec. 11 operation, and officials have reported a series of ups and downs in his recovery — the most recent, on Sunday, announcing that new complications from a respiratory infection had put the president in a "delicate" state.
Speculation has grown since Maduro announced those latest troubles, which were a sharp shift from his remark nearly a week earlier that the president had been up and walking.
In Tuesday's interview, Maduro did not provide any new details about Chavez's complications. But he joined other Chavez allies in urging Venezuelans to ignore gossip, saying rumors are being spread due to "the hatred of the enemies of Venezuela."
He didn't refer to any rumors in particular, though one of them circulating online had described Chavez as being in a coma.
Political opponents of Chavez have complained that the government hasn't told the country nearly enough about his health.
Maduro's remarks about the president came at the end of an interview in which he praised his government's programs at length, recalled the history of the Cuban revolution and touched on what he called the long-term strength of Chavez's socialist Bolivian Revolution movement.
He mentioned that former Cuban President Fidel Castro had been in the hospital, and praised Cuba's government effusively. "Today we're together on a single path," Maduro said.
Critics in Venezuela sounded off on Twitter while the interview was aired, some saying Maduro sounded like a mouthpiece for the Cuban government. In their online messages, many Chavez opponents criticized a dearth of information provided by Maduro, accusing him of withholding key details about Chavez's condition. Opposition politicians have demanded that the government provide the country with a full medical report.
Even some of his supporters said on Tuesday that they wished they knew more.
"We're distressed by El Comandante's health," said Francisca Fuentes, who was walking through a downtown square with her grandchildren. "I think they aren't telling us the whole truth. It's time for them to speak clearly. It's like when you have a sick relative and the doctor lies to you every once in a while."
Chavez has been fighting an undisclosed type of pelvic cancer since June 2011. He has declined to reveal the precise location of the tumors that have been surgically removed. The president announced on Dec. 8, two month after winning re-election, that his cancer had come back despite previous surgeries, chemotherapy and radiation treatment.
"There's nothing we can do except wait for the government to deign to say how he is really," said Daniel Jimenez, an opposition supporter who was in a square in an affluent Caracas neighborhood.
Jimenez and many other Venezuelans say it seems increasingly unlikely that Chavez can be sworn in as scheduled Jan. 10 for his new term.
Venezuelans rang in 2013 as usual with fireworks raining down all over the capital of Caracas. But some of Chavez's supporters had long faces as they gathered in Bolivar Plaza on Monday night holding pictures of the president. A government-sponsored New Year's Eve celebration there had been called off, and instead his supporters strummed guitars and read poetry in Chavez's honor.
Maduro didn't discuss the upcoming inauguration plans, saying only that he's hopeful Chavez will improve.
Chavez has been in office since 1999 and was re-elected in October, three months after he announced that his latest tests showed him to be cancer-free. If he dies or is unable to continue in office, the Venezuelan Constitution says a new election should be held within 30 days.
Before his operation, Chavez acknowledged he faced risks and designated Maduro as his successor, telling supporters they should vote for the vice president if a new presidential election was necessary.
The vice president said that Chavez "has faced an illness with courage and dignity, and he's there fighting, fighting."
"Someone asked me yesterday by text message: How is the president? And I said, 'With giant strength,'" Maduro said. He recalled taking Chavez by the hand, saying "he squeezed me with gigantic strength as we talked.

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Employer wins relief from U.S. contraceptives mandate

(Reuters) - A divided federal appeals court has temporarily barred the U.S. government from requiring an Illinois company to obtain insurance coverage for contraceptives, as mandated under the 2010 healthcare overhaul, after the owners objected on religious grounds.
More than 40 lawsuits are challenging a requirement in the Patient Protection and Affordable Care Act that requires most for-profit companies to offer workers insurance coverage for contraceptive drugs and devices and other birth control methods.
Friday's 2-1 order by a panel of the 7th U.S. Circuit Court of Appeals in Chicago in favor of Cyril and Jane Korte was the second by a federal appeals court to temporarily halt enforcement against people who said it violated their faith, said Edward White, a lawyer for the Roman Catholic couple.
The 7th Circuit suggested that the couple's legal challenge might eventually prevail.
Its order came two days after U.S. Supreme Court Justice Sonia Sotomayor declined to block the provision's enforcement against companies controlled by the family of Oklahoma City billionaire David Green.
The U.S. Department of Justice, which had defended the contraceptives provision, did not immediately respond on Saturday to a request for comment.
The Kortes, who own the construction firm Korte & Luitjohan Contractors, had sought to drop a health insurance plan for 20 non-unionized workers that included coverage for contraception, and substitute a different plan consistent with their faith.
But the Obama administration's healthcare law did not allow the change, and the Kortes said that violated the First Amendment to the U.S. Constitution and the federal Religious Freedom Restoration Act, or RFRA.
In issuing an injunction, the 7th Circuit majority said the Kortes had established a reasonable likelihood of success on the merits of their RFRA claim, and that the government had not yet justified the apparent "substantial burden" on their religious exercise.
The court also said the couple had established irreparable harm, because absent an injunction they would have to choose between maintaining insurance coverage they considered inappropriate or facing substantial financial penalties.
"Business owners who are objecting to the mandate are not objecting to people using contraceptives, but that they have to arrange for and pay for it," White, a lawyer with the American Center for Law and Justice, said in a phone interview. "The federal government shouldn't tell business owners they have to contract to buy what they see as immoral services and goods."
Judges Joel Flaum and Diane Sykes comprised the 7th Circuit majority.
Judge Ilana Rovner dissented. She said the Kortes were "multiple steps" removed from the contraceptives services because it was their company paying for the coverage, and because it would be a worker, her doctor and the insurer involved in the decisions about the services and their funding.
The Kortes' case is expected to continue in the 7th Circuit.
Neither the 7th Circuit nor Sotomayor ruled on the merits of their respective cases. The legal standard for obtaining an injunction from the Supreme Court is much higher.
The case is Korte et al v. Sebelius, 7th U.S. Circuit Court of Appeals, No. 12-3841.

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FDA approves Salix's diarrhea drug for HIV/AIDS patients

(Reuters) - U.S. health regulators approved Salix Pharmaceuticals Ltd's drug to treat diarrhea in HIV/AIDS patients on antiretroviral therapy, a combination of medicines used to treat HIV infection.
Diarrhea is a common reason why HIV/AIDS patients discontinue or switch their antiretroviral therapies.
The drug, called Fulyzaq, is intended to be used in HIV/AIDS patients whose diarrhea is not caused by an infection from a virus, bacteria, or parasite.
Until now, there have been no therapies for HIV-associated diarrhea approved by the U.S. Food and Drug Administration.

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Texas judge OKs ban on Planned Parenthood funding

AUSTIN, Texas (AP) — Texas can cut off funding to Planned Parenthood's family planning programs for poor women, a state judge ruled Monday, requiring thousands to find new state-approved doctors for their annual exams, cancer screenings and birth control.
Judge Gary Harger said that Texas may exclude otherwise qualified doctors and clinics from receiving state funding if they advocate for abortion rights.
Texas has long banned the use of state funds for abortion, but had continued to reimburse Planned Parenthood clinics for providing basic health care to poor women through the state's Women's Health Program. The program provides preventive care to 110,000 poor women a year, and Planned Parenthood clinics were treating 48,000 of them.
Planned Parenthood's lawsuit to stop the rule will still go forward, but the judge decided Monday that the ban may go into effect for now. In seeking a temporary restraining order, Planned Parenthood wanted its patients to be able to see their current doctors until a final decision was made.
"We are pleased the court rejected Planned Parenthood's latest attempt to skirt state law," attorney general spokeswoman Lauren Bean said. "The Texas Attorney General's office will continue to defend the Texas Legislature's decision to prohibit abortion providers and their affiliates from receiving taxpayer dollars through the Women's Health Program."
Ken Lambrecht, president and CEO of Planned Parenthood of Greater Texas, said he brought the lawsuit on behalf of poor women who depend on its clinics.
"It is shocking that once again Texas officials are letting politics jeopardize health care access for women," Lambrecht said. "Our doors remain open today and always to Texas women in need. We only wish Texas politicians shared this commitment to Texas women, their health, and their well-being."
Planned Parenthood has brought three lawsuits over Texas' so-called "affiliate rule," claiming it violates the constitutional rights of doctors and patients while also contradicting existing state law.
Republican lawmakers who passed the affiliate rule last year have argued that Texas is an anti-abortion state, and therefore should cut off funds to groups that support abortion rights. Gov. Rick Perry, who vehemently opposes abortion, has pledged to do everything legally possible to shut down Planned Parenthood in Texas and welcomed the court's ruling.
"Today's ruling finally clears the way for thousands of low-income Texas women to access much-needed care, while at the same time respecting the values and laws of our state," Perry said. "I applaud all those who stand ready to help these women live healthy lives without sending taxpayer money to abortion providers and their affiliates."
The Texas Health and Human Services Commission has spent the last nine months preparing to implement the affiliate rule. But federal officials warned it violated the Social Security Act and cut off federal funds for the Women's Health Program, prompting the commission to start a new program using only state money.
State officials have also scrambled to sign up new doctors and clinics to replace Planned Parenthood. Women who previously went to Planned Parenthood clinics will now have to use the agency's web site to find a new state-approved doctor. HHSC officials acknowledged Monday they are unsure whether the new doctors can pick up Planned Parenthood's caseload in all parts of the state.
Any capacity issues will become clear in the next few weeks as women try to make appointments with new clinics and doctors, with problems anticipated in South Texas and other impoverished areas. Texas already suffers from a shortage of primary care physicians willing to take on new patients who rely on state-funded health care.
Linda Edwards Gockel, a spokesman for the Texas Health and Human Services Commission, said Monday that the new state program will launch as planned on Tuesday.
"We have more than 3,500 doctors, clinics and other providers in the program and will be able to continue to provide women with family planning services while fully complying with state law," she said. "We welcome Planned Parenthood's help in referring patients to providers in the new program."
Democratic lawmakers continued to question whether women will have to wait longer for appointments and services.
"I vehemently disagree with the state's efforts to blacklist a qualified provider and, thereby, interfere with a woman's right to choose her own provider," said state Rep. Donna Howard, D-Austin. "I will be submitting a letter to the Texas Health and Human Services Commission, requesting a list of approved providers to gauge the outreach of the new program, and ensure that all qualified women throughout the state have access to its services."
Another hearing is scheduled with a different judge for Jan. 11, where Planned Parenthood will again ask for an injunction to receive state funding.

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Ivory Coast New Year's death toll rises to 64

ABIDJAN, Ivory Coast (AP) — Ivory Coast's health minister says the death toll in the New Year's stampede has risen to 64.
Health Minister Raymonde Goudou, speaking to the press, said three more people died in addition to the 61 who were killed from being trampled when thousands left a New Year's fireworks display. She said 26 people who had been missing after the chaos of the stampede were located in various hospitals in Abidjan.
Goudou said Thursday afternoon that the government will close its investigation into the tragic stampede on Friday and will issue a report later.
The Front Populaire Ivorien, the opposition party of former President Laurent Gbagbo, issued a statement criticizing Interior Minister Hamed Eakayoko for not taking adequate security measures for the fireworks display in central Abidjan on New Year's Eve.

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Mali's Ansar Dine: Islamists to resume hostilities

BAMAKO, Mali (AP) — An Islamist group in northern Mali says it's suspending its pledge to halt hostilities less than a month after it agreed to do so.
The group Ansar Dine said negotiations with the Malian government are ultimately aimed at a military intervention to oust the Islamists, and are not true peace talks. Still, the group said that it remains committed to a dialogue with the Malian government in Bamako even though it is withdrawing its pledge to halt hostilities.
The original offer had drawn skepticism from some observers, who noted the group's links to al-Qaida's North Africa branch.
Ansar Dine also has been behind public executions, amputations and whippings in northern Mali. The group on its website says it seeks autonomy for northern Mali.

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Nigeria police: Hyundai paid $187K to free workers

LAGOS, Nigeria (AP) — Hyundai Heavy Industries Co. paid about $187,000 to free four abducted South Korean workers and their local colleague, a lucrative ransom showing the continuing allure of kidnapping in Nigeria's oil-rich southern delta, police said Friday.
South Korean officials declined to say whether they paid a ransom when announcing the hostages' release on Dec. 22, following the pattern of other foreign governments and companies operating in the Niger Delta when dealing with abductions. However, cash payments often represent the only safe way of getting back expatriate workers in the region since militants began attacks there in 2006.
Police learned of the kidnapping payment after arresting one of three suspected kidnappers, Bayelsa state police spokesman Fidelis Odunna told The Associated Press on Friday. The man claimed that several gangs involved in the kidnapping received 30 million naira ($187,500), Odunna said.
"The real reason for the kidnapping is for financial interest," the spokesman said. "The company didn't want to endanger the lives of the workers and paid secretly."
While the workers were safely released, Odunna said the cash payment likely would further embolden the criminal gangs and militant groups — some often one in the same — that operate in the delta, a region of mangroves and swamps about the size of Portugal.
On Dec. 17, gunmen ambushed workers for the Korea-based company at a construction site in the Brass region of Bayelsa state. Six people were initially taken, though kidnappers let one Nigerian go an hour after the attack, likely because he came from the area, authorities had said.
Foreign companies have pumped oil out of the Niger Delta for more than 50 years, making Nigeria one of the top crude suppliers to the U.S. Despite the billions of dollars flowing into Nigeria's government, many in the delta remain desperately poor, living amid polluted waters without access to proper medical care, education or jobs. The poor conditions sparked an uprising in 2006 by militants and opportunistic criminals who blew up oil pipelines and kidnapped foreign workers.
That violence ebbed in 2009 with a government-sponsored amnesty program that offered ex-fighters monthly payments and job training. However, few in the delta have seen the promised benefits and sporadic kidnappings and attacks continue. Pirates operating in the region also routinely kidnap foreign sailors off vessels in the Gulf of Guinea.
Middle- and upper-class Nigerians now routinely find themselves and their family members targeted by kidnap gangs. The end of the year in Nigeria usually sees an uptick in criminal activity as well, as criminal gangs target the wealthy returning to the country to celebrate the holidays.
Most workers taken hostages are released after a few weeks when their employers pay a ransom, typically around a $100,000 or higher, depending on negotiations, experts say

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BAMAKO, Mali (AP) — An Islamist group in northern Mali says it's suspending its pledge to halt hostilities less than a month after it agreed to do so. The group Ansar Dine said negotiations with the Malian government are ultimately aimed at a military intervention to oust the Islamists from the West African nation and are not true peace talks. Still, the group said it remains committed to a dialogue with the Malian government in Bamako even though it is keeping its military options open. The original offer had drawn skepticism from some observers, who noted the group's links to al-Qaida's North Africa branch. Ansar Dine, which says it seeks autonomy for northern Mali, has been behind public executions, amputations and whippings in the aDifferent challenges in Central African Rep., Mali rea that it seized last year.

BANGUI, Central African Republic (AP) — Two land-locked, desperately poor African countries are gripped by rebellions in the north that have left huge chunks of both nations outside of government control. Neighboring countries are rushing troops into Central African Republic only a few weeks after rebels started taking towns but Mali's government is still awaiting foreign military help nearly one year after the situation there began unraveling. Here's a look at why there's been quick action in one country, and not in the other.
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THE INSURGENTS
The simple answer lies in the vastly different challenges faced by intervention forces. Northern Mali is home to al-Qaida-linked militants who are stocking weapons and possess stores of Russian-made arms from former Malian army bases as well as from the arsenal of toppled Libyan leader Moammar Gadhafi. The local and foreign jihadists there are digging in and training forces in preparation for jihad and to repel an invasion. Central African Republic, by contrast, is dealing with home-grown rebels who are far less organized and have less sophisticated weapons.
The numbers of troops being sent to Central African Republic are relatively small — Republic of Congo, Cameroon and Gabon are each sending about 120 soldiers. The rebels stopped their advances toward the capital on Dec. 29, perhaps at least in part because of the presence of the foreign troops who have threatened to counterattack if the rebels move closer to Bangui, the capital. In Mali, it will take far more than the 3,000 African troops initially proposed for a military operation to be successful in ousting the militants, analysts say.
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THE MISSION
The military objectives are also a stark contrast. In Central African Republic, neighboring nations have a mandate to help stabilize the region between rebel-held towns and the part of the country that is under government control. The intervention force will fire back if fired upon, but so far are not being asked to retake the towns already in rebel hands.
The mission in Mali that foreign forces are slowly gearing up for is far more ambitious. It involves trying to take back a piece of land larger than Texas or France where militants are imposing strict Islamic law, or Shariah. Making things even more complicated there: A military coup last year that created chaos and enabled the rebels to more easily take territory has left the country with a weak federal government and the country's military with a broken command-and-control structure, and with its leaders reluctant to give real power to the civilians.
"In Mali you have a very undefined mission. What does it mean to retake the country and give it back to government forces that were not able to hold it in the first place?" noted Jennifer Cooke, director of the Africa program at the Washington-based Center for Strategic and International Studies.
Central African Republic's situation "is a more limited, defined and frankly somewhat easier mission in the military sense," she said.
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THE TERRAIN
Northern Mali is a scorching desert that is unfamiliar to many of the troops who would be coming from the West African regional bloc of countries known as ECOWAS. By contrast, Central African Republic's neighbors already have been pulled into past rebellions in the country.
Chadian forces helped propel President Francois Bozize into power in 2003 and they have assisted him in putting down past rebellions here.
"These forces — particularly the Chadians — have been there before," Cooke said. "They know the players, they have an interlocutor in Bozize however fragile he is. This is familiar territory to them."
The Economic Community of Central African States, or ECCAS, also already had established a peacekeeping force in Central African Republic known as MICOPAX.
"From the beginning, they knew that they needed to have troops on the ground. MICOPAX was already there, had already been deployed there. There was already a structure in place," said Thierry Vircoulon, project director for Central Africa at the International Crisis Group.
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DIFFERING MOTIVATIONS
The rebels in Central African Republic are made up of four separate groups all known by their French acronyms — UFDR, CPJP, FDPC and CPSK. They are collectively known as Seleka, which means alliance in the local Sango language, but have previously fought one another. For instance, in September 2011 fighting between the CPJP and the UFDR left at least 50 people dead and more than 700 homes destroyed. Insurgent leaders say a 2007 peace accord allowing them to join the regular army wasn't fully implemented and are demanding payments to former combatants among other things. Rebel groups also feel the government has neglected their home areas in the north and particularly the northeast, said Filip Hilgert, a researcher with Belgium-based International Peace Information Service.
In northern Mali, the Islamist rebels are motivated in large part by religion. Al-Qaida fighters chant Quranic verses under the Sahara sun , displaying deep, ideological commitment. They consider north Mali as "Islamic territory" and say they will fight to the death to defend it. They also want to use the territory to expand the reach of al-Qaida-linked groups to other countries. This would seem to make other countries more motivated to intervene in Mali than in Central African Republic, but the challenges are so steep and convoluted that an intervention mission is still on the drawing board.

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Mali's Islamists withdraw cease-fire pledge

BAMAKO, Mali (AP) — An Islamist group in northern Mali says it's suspending its pledge to halt hostilities less than a month after it agreed to do so.
The group Ansar Dine said negotiations with the Malian government are ultimately aimed at a military intervention to oust the Islamists from the West African nation and are not true peace talks. Still, the group said it remains committed to a dialogue with the Malian government in Bamako even though it is keeping its military options open.
The original offer had drawn skepticism from some observers, who noted the group's links to al-Qaida's North Africa branch.
Ansar Dine, which says it seeks autonomy for northern Mali, has been behind public executions, amputations and whippings in the area that it seized last year.

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Low prices boost SF home sales to 5-year Jan. high

Home sales in the San Francisco Bay area reached a five-year high for January, as prices and mortgage rates plunged, a real estate tracking firm reported Thursday.
However, many of those purchases involved properties that were subject to foreclosures or short sales, indicating the housing market is far from recovered.
The survey by San Diego-based DataQuick also showed the median sales price in the region fell nearly 3 percent last month from December to $326,000 — less than half the peak price of $665,000 reached in 2007 but up from the low of $290,000 recorded in 2009.
A total of 5,479 new and existing homes were sold in the nine-county area, according to DataQuick. The figure was down nearly 27 percent from December but marked a 10.3-percent improvement over January 2011.
The December-to-January drop was normal for the season, while the January-to-January jump showed real improvement, DataQuick said.
The year-over-year increase in January marked the seventh annual jump in a row, the firm said.
Home sales were buoyed by "lower prices, ultra-low mortgage rates, a modestly improved economy and a record level of investor purchases," DataQuick said in a statement.
The lower median price in January was "a reflection of how skewed the market has become toward distressed, lower-cost properties," DataQuick President John Walsh said in the statement. "The higher-end sales have slowed in recent months as many struggle to qualify for loans and others just sit tight."
Distressed property sales — the combination of foreclosure and short sales — made up more than half of all sales of existing homes. Absentee buyers, who mostly are investors, bought more than a quarter of all homes sold, DataQuick reported

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Why the Slowest Investors Win the Race

Anyone who attended kindergarten remembers Aesop's fable about the tortoise and the hare. The story's moral has implications for investors: Slow but steady wins the race.
Hare investors try to sprint to the finish line of a comfortable retirement without girding their portfolios against the perils of volatility — frequent ups and downs in asset value. So they tend to lag far behind tortoise investors, who take these precautions, which I'll explain in a moment.
Volatility reflects uncertainty, and markets tend to punish uncertainty with lower prices. Yet just because an investment is volatile doesn't mean it has no place in your portfolio. Because they may be less likely to go down with other assets in the portfolio, volatile investments may add highly beneficial variety, known as diversification.
Let's say you own tech stocks like Apple and IBM. Adding more tech stocks to your portfolio doesn't decrease overall risk, so you add a gold-mining stock instead. Though highly volatile in itself, the gold-mining stock is less likely to go up or down with tech stocks, so it increases the portfolio's diversification.
Because there's little correlation between gold-mining stocks' price movements with those of tech stocks, these categories are said to have a low correlation. That sounds complicated, but you can easily look up the differences in price movements between different types of investments to see whether they're correlated, and if so, how closely.
Aware of the downsides of volatility, tortoises avoid it by assembling highly diversified portfolios. That means traditional investments such as U.S. stocks and bonds, mixed with a dash of non-traditional (alternative) assets. These may include emerging market stocks, Treasury bonds and real estate securities. The price movements of these investments have a history of not being highly correlated with U.S. stocks or bonds.
Tortoises are like a savvy retailer on a tropical resort island who wisely sells umbrellas as well as sunscreen to help cover losses during rainy periods. Every once in while, the rain falls on everything -- which is what happened in late 2008, much to the dismay of investors. In the financial meltdown, stocks, bonds and real estate both in the US and abroad swooned, leaving little quarter for investors.
Tortoise-style investors add a touch of alternative investments, knowing this may cut their overall returns some years, but they'll sleep more peacefully with the knowledge that it can counter-balance heavy losses in traditional investments.
Hares aren't focused on this balanced approach. Instead, they assemble highly aggressive portfolios of assets that tend to rise or fall in lockstep. They're not concerned with cutting their losses because, compelled by greed, they're not planning to have any losses ior they believe they can defy gravity. This was not unlike the employees who loaded up on their company's shares before the recession, only to see their investment go south along with their job.
Like the Aesop's hare, hare investors are overconfident and turn a blind eye to the ravages of volatility, which take a long time to recover from. Tortoises, having sustained less damage, continue their slow but steady progress.
The math of recovering from hits may astonish you. Let's say your portfolio loses 33 percent of its value, leaving you with two thirds of what you had. Many believe they'd be back where they started if they gain 33 percent. But this gain wouldn't restore their losses. They would actually need to make a 50 percent gain to get back to where they started. The reason is that the gain is based on a lower value than what you started with.
Heavy gains followed by just a large losses from volatile investments is comparable to the hare in Aesop's fable sprinting for periods and then, winded, lying down to take a nap. Like the tortoise, investors with adequately diversified portfolios don't tend to need as much recovery time.
Such losses are even more damaging than they appear at first blush. Not only do hare portfolios lose time that could be used to make progress toward the goal, but they also miss out on the benefits of compounding from reinvested gains . Though tortoises' gains may be far lower than those made by hares during their sprints, they're more likely to enjoy the benefits of compounding.
These awkward reptiles plod steadily toward the finish line while the halting progress of hares leaves them far behind.

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US rate on 30-year mortgage hits record 3.83 pct.

WASHINGTON (AP) — Average U.S. rates for 30-year and 15-year fixed mortgages fell to fresh record lows this week. Cheap mortgage rates have made home-buying and refinancing more affordable than ever for those who can qualify.
Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan ticked down to 3.83 percent. That's the lowest since long-term mortgages began in the 1950s. And it's below the previous record rate of 3.84 percent reached last week.
The 15-year mortgage, a popular option for refinancing, dropped to 3.05 percent, also a record. That's down from last week's previous record of 3.07 percent.
Low mortgage rates haven't done much to boost home sales. Rates have been below 4 percent for all but one week since early December. Yet sales of both previously occupied homes and new homes fell in March.
There have been some positive signs in recent months. January and February made up the best winter for sales of previously occupied homes in five years. And builders are laying plans to construct more homes in 2012 than at any other point in past 3 1/2 years. That suggests some see the housing market slowly starting to turn around.
Still, many would-be buyers can't qualify for loans or afford higher down payments required by banks. Home prices in many cities continue to fall. That has made those who can afford to buy uneasy about entering the market. And for those who are willing to brave the troubled market, many have already taken advantage of lower rates — mortgage rates have been below 5 percent for more than a year now.
Mortgage rates are lower because they tend to track the yield on the 10-year Treasury note. Slower U.S. job growth and uncertainty about how Europe will resolve its debt crisis have led investors to buy more Treasurys, which are considered safe investments. As demand for Treasurys increases, the yield falls.
To calculate the average rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week.
The average rage does not include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for 30-year loans was 0.7 last week, down from 0.8 the previous week. The fee on 15-year loans also was 0.7, unchanged from the previous week.
The average on one-year adjustable rate was 2.73 percent last week, down from 2.7 percent the previous week. The fee on one-year adjustable rate mortgages was 0.5, down from 0.6.

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Governor sues NCAA over Penn State sex scandal

 Pennsylvania Governor Tom Corbett filed a lawsuit on Wednesday demanding that sanctions imposed on Penn State University over the Jerry Sandusky sex scandal be thrown out, saying they threatened to devastate the state's economy.
Corbett called the sanctions imposed by the National Collegiate Athletic Association, or NCAA, which include an unprecedented $60 million fine, "overreaching and unlawful."
"I cannot and will not stand by and let it happen without a fight," the Republican governor, who was accused of dragging his feet on the Penn State scandal when he was state attorney general, told a news conference.
A lawsuit Corbett filed with U.S. District Court in Harrisburg called for all Sandusky-related sanctions imposed on Penn State to be thrown out.
Sandusky, Penn State's former defensive coordinator, was convicted in June of 45 counts of sexually abusing 10 boys over 15 years, some in the football team's showers. The scandal implicated top university officials in a cover-up, including the late Joe Paterno, its longtime head football coach.
The NCAA, the governing body of U.S. collegiate sports, fined Penn State $60 million for failing to stop abuse by Sandusky. It also voided its football victories for the past 14 seasons and banned its football team from bowl games for four years.
Corbett's suit charged the NCAA and "competing colleges and universities represented on its governing boards" had "cynically and hypocritically exploited" the case "to impose crippling and unprecedented sanctions on an already weakened competitor."
The suit said stigma from the case would diminish recruitment of students and student athletes and the value of a Penn State education for decades.
According to Corbett's office, Penn State football was the second most profitable collegiate athletic program in the United States in 2010-11, when it brought in $50 million, generating more than $5 million in tax revenue.
Corbett, who spoke at State College, where Penn State University is located, said the NCAA had overstepped its bounds and the case was "a criminal matter, not a violation of NCAA rules."
Penn State University released a statement saying it was not party to Corbett's lawsuit and reiterated its commitment to comply with the NCAA sanctions. The university recently made the first payment of $12 million of the fine to a national fund to support victims of child abuse.
'WEAK CASE'
A Philadelphia-based attorney who has followed the case closely questioned its chances of success and said it was unclear if Corbett had the legal authority to file such a suit.
"It's not a frivolous lawsuit - there are real arguments to make - but, boy is it weak," said Max Kennerly, adding that courts had generally sided with the NCAA on sanctions issues.
James Schultz, general counsel for the Commonwealth of Pennsylvania, said the governor had a legal right to sue, as he was acting on behalf of residents and businesses "collaterally damaged" by the NCAA sanctions.
He said the sanctions harmed the state's tax revenue base and those relying on revenue from Penn State's football program.
NCAA General Counsel Donald Remy said the lawsuit appeared to be without merit and was "an affront to all of the victims" whose lives were destroyed by Sandusky.
The Survivors Network of those Abused by Priests, a group that takes aim at sex abuse in the Catholic Church, but has also been vocal in other cases, criticized Corbett's action.
"At best, his lawsuit is frivolous," the group said in a statement. "At worst, it threatens to delay or derail millions of dollars that would otherwise be devoted to protecting children."
The Sandusky scandal was revealed by a grand jury Corbett convened in 2009 when he was Pennsylvania's attorney general.
State Attorney General-elect Kathleen Kane, a Democrat, has pledged to probe Corbett's handling of the case. She said last year that by convening the grand jury, Corbett failed to protect children by delaying prosecution for more than two years.
Corbett has said he would welcome an investigation.
Pennsylvania voters have also expressed dissatisfaction with Corbett's handling of the case. A Franklin & Marshall College survey of registered voters in September found that nearly two-thirds thought he had done a fair or poor job.
But Terry Madonna, a professor of public affairs at Franklin & Marshall and director of the poll, said the lawsuit would be popular among Pennsylvanians, even though Corbett might be accused of trying to further his own political ends.
The Franklin & Marshall poll found more than half of the Pennsylvania residents surveyed considered the sanctions unfair.
On Wednesday, Corbett denied any political motivation.
Kathy Punt, manager of a State College motel used by football fans, said her business had dropped 30 to 40 percent this past autumn as fewer people attended games. "We didn't get the Penn State fans who usually come in," she said.

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India may suspend lawmakers accused of sex crimes

NEW DELHI (AP) — Indian lawmakers facing sexual assault charges could be suspended from office if the country's top court rules in favor of a petition submitted after a gang-rape and murder that shocked the country.
Six state lawmakers are facing rape prosecutions and two national parliamentarians are facing charges of crimes against women that fall short of rape, said Jagdeep S. Chhokar, an official with the Association for Democratic Reforms, which tracks political candidate's criminal records.
The petition will be heard Thursday, the same day police plan to formally charge six suspects in the attack on a 23-year-old university student in New Delhi two weeks ago.
The rape triggered outrage and sparked demands for stronger laws, tougher police action against sexual assault suspect and a sustained campaign to change society's views on women.
As part of that campaign, Chief Justice Altamas Kabir agreed to hear a petition from retired government administrator Promilla Shanker asking the Supreme Court to suspend all national and state lawmakers who are facing prosecution for crimes against women.
She also asked the court to force the national government to fast-track thousands of rape cases languishing in India's notoriously sluggish court system.
In the past five years, political parties across India nominated 260 candidates awaiting trial on charges of crimes against women, Chhokar said. Parties ran six candidates for the national parliamentary elections facing such charges, he said.
"We need to decriminalize politics and surely a serious effort has to be made to stop people who have serious charges of sexual assault against them from contesting elections," said Zoya Hasan, a political analyst.
On Wednesday morning, several thousand women held a silent march to Gandhi's memorial in the capital in memory of the victim, holding placards demanding "Respect" and "Justice." Delhi Chief Minister Sheila Dikshit joined the women for a prayer session for the victim. The Gandhi memorial is a common protest site.
On Tuesday, the government set up a task force to monitor women's safety in New Delhi and to review whether police were properly protecting women. Two task forces already are examining the handling of the rape case and possible changes in rape laws.
The rape of the unidentified woman on a bus in the capital has horrified many and brought unprecedented attention to the daily suffering of women here, who face everything from catcalls and groping to rapes.
Six men arrested in the case were to be formally charged Thursday with kidnapping, rape and murder, said Rajan Bhagat, the New Delhi police spokesman. Police have said they would push for the death penalty. Another suspect underwent medical testing to determine his age since juveniles cannot be charged with murder in India.
The Bar Association of lawyers last week decided against defending the six suspects because of the nature of the crime, although the court is expected to appoint attorneys to defend them.
Media reports say 30 witnesses have been gathered, and the charges have been detailed in a document running more than 1,000 pages. Police also have detained the owner of the bus used in the crime on accusation he used false documents to obtain permits to run the private bus service.
The family of the victim — who died Saturday at a hospital in Singapore — is struggling to come to grips with the tragedy.
"She was a very, very, very cheerful little girl and she was peace loving and she was never embroiled in any controversies like this. I don't know why this happened to her," her uncle, Suresh Singh, told The Associated Press on Wednesday.
The family of the victim, whose name was not revealed, called for stronger rape laws to prevent such attacks from happening again and demanded swift — and harsh — justice for woman's assailants, Singh said.
"If the government can't punish them, give the rapists to the people. The people will settle the scores with them," he said.

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After ‘fiscal cliff’ drama, Republicans take it easy at closed-door meeting

WASHINGTON--Finally, a night of calm on Capitol Hill.
Beleaguered House Republicans held a closed-door meeting on the Hill Wednesday for what turned out to be a mundane gathering that followed weeks of battles over how to avoid the so-called fiscal cliff. The members, many who just seemed relieved that the fiscal cliff ordeal was, for now, finished, discussed amendments to a series of procedural rules for the 113th Congress.
"It was kinda dull," said Georgia Rep. Phil Gingrey as he left the meeting after it was over. (Some members, who just seemed bored and tired by the process, had left early.)
For more than two hours, caucus members discussed 32 proposals that hardly a soul outside of Washington will ever hear about, or would likely care to hear about.
One discussion addressed the current House rule that bars lawmakers' children older than the age of 12 from joining their parent on the House floor. The proposal would allow "all children of Members of the House of Representatives, no matter what age, to accompany Members on the House floor." It failed. But the prospect that House Speaker John Boehner would publicly expel a 13-year-old from the House floor seems unlikely.
After so many emotional weeks of work on the fiscal cliff package, a dull gathering may well have been just what these lawmakers needed.
At least half a dozen members arrived at the meeting wearing open-collared shirts tucked into blue jeans, a sort of sartorial rebellion against the late nights of fierce and serious debate. Call it post-fiscal cliff chic.  Even South Carolina Sen. Lindsey Graham, who had traversed the Capitol to the House side, sported an orange baseball cap on his head and a casual green wind breaker.
The caucus-wide meeting--the first such gathering since Boehner angered many conservatives by supporting a bill that allowed taxes to increase--could have gone much differently given the intense events of the past 48 hours.  Boehner, for one, could have addressed New Jersey Gov. Chris Christie's very public rant against him for not holding a vote to offer federal relief aid to victims of Superstorm Sandy.
Instead, the discussion focused on the amendments, and Boehner did not bring up the fiscal cliff drama, several lawmakers said.
But while members harboring ill feelings toward party leadership remained silent, not all wounds are healed. For instance, unconfirmed rumors prior to the meeting had hinted at a battle to unseat Boehner as speaker. And while most members said they hadn't heard anything of the sort and the speaker's office officially denies any such efforts, Michigan Rep. Justin Amash, who voted against the fiscal cliff deal, did leave the meeting saying he didn't plan to support Boehner for the position.
"I haven't made a decision on what to do yet, but as of now, I still haven't seen the changes I want to see," Amash told reporters when he left the meeting. "He's got until tomorrow."
The body will vote Thursday on Boehner's future.

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