Wall Street drops on deficit, Middle East concerns

NEW YORK (Reuters) - Stocks slid on Wednesday with declines accelerating after President Barack Obama set up a drawn-out fight over the fiscal cliff when he stuck to his pledge to raise taxes on the wealthy, and as violence increased in the Middle East.

Obama, in his first press conference since re-election, held to his position that marginal tax rates will have to rise to tackle the nation's deficits.

With talks over solving the U.S. "fiscal cliff" in early stages, investors are reacting to the uncertainty by shedding positions.

"I think we will have a last-minute cliffhanger solution," said Michael Cheah, portfolio manager at SunAmerica Asset Management in Jersey City, New Jersey, about a deal to avoid the so-called cliff.

"In the meantime, the market is going to get punched every day."

Without a deal, a series of mandated tax hikes and spending cuts will start to take effect early next year that could push the U.S. economy into a recession.

Taxes on capital gains and dividends could rise as part of the negotiations, pushing investors to sell this year and pay lower taxes on their gains.

Adding to the selling pressure, Israel launched a major offensive against Palestinian militants in Gaza, killing the military commander of Hamas in an air strike and threatening an invasion of the enclave. Egypt said it recalled its ambassador from Israel in response.

"We know Europe's in trouble, China's slowing down ... and now you've got the Middle East flaring up again. It's all hitting at once, and obviously, the market is taking a 'sell first, ask questions later' approach," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati.

Industrial shares led the decline, dragged lower in part by a 1 percent spike in crude prices after the Israeli offensive on Gaza. The S&P industrial sector index <.gspi> fell 2.5 percent.

Wall Street had opened higher after Dow component Cisco Systems Inc reported first-quarter earnings and revenue late Tuesday that beat expectations, driving its stock up 4.8 percent to $17.66. But the positive momentum was short-lived.

The Dow Jones industrial average <.dji> fell 185.23 points, or 1.45 percent, to 12,570.95 at the close. The S&P 500 <.spx> dropped 19.04 points, or 1.39 percent, to 1,355.49. The Nasdaq Composite <.ixic> lost 37.08 points, or 1.29 percent, to 2,846.81.

Both the Dow industrials and the Nasdaq ended at their lowest levels since late June.

The S&P 500 has fallen 5.1 percent in the six sessions since election night. Wednesday marked the benchmark index's lowest close since July 25.

The Russell 2000 <.rut> tumbled 2 percent. The Dow Jones Transportation average <.djt> slid 2.6 percent. FedEx Corp shares dropped 3.7 percent to $87.12. Bank of America shares lost 3.6 percent to $8.99.

In contrast, Facebook shares jumped 12.6 percent to $22.36 as investors were relieved that expiring trading restrictions on a huge block of shares did not trigger an immediate wave of insider selling.

Teen clothing retailer Abercrombie & Fitch Co jumped 34.4 percent to $41.92 after the company reported unexpectedly improved third-quarter results and a full-year outlook that exceeded Wall Street's forecasts.

About 7.53 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, more than the daily average so far this year of about 6.51 billion shares.

On the NYSE, decliners outnumbered advancers by a ratio of almost 9 to 1. On the Nasdaq, about four stocks fell for every one that rose.

(Reporting by Rodrigo Campos; Additional reporting by Steven C. Johnson and Leah Schnurr; Editing by Jan Paschal)

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France recognizes new Syria opposition

CAIRO/PARIS (Reuters) - France became the first European power to recognize Syria's new opposition coalition as the sole representative of its people and said on Tuesday it would look into arming rebels against President Bashar al-Assad once they form a government.

Twenty months into their bloody uprising against Assad, fragmented Syrian opposition groups struck a deal in Qatar on Sunday to form a broad coalition and their leader immediately appealed for European backing.

"I announce today that France recognizes the Syrian National Council as the sole legitimate representative of the Syrian people and as future government of a democratic Syria making it possible to bring an end to Bashar al-Assad's regime," French President Francois Hollande said, breaking ranks with European allies. Six Gulf Arab states took a similar step on Monday.

The question of arming the rebels would be looked at as soon as the rebel coalition formed a transitional government, Hollande told a news conference in Paris.

Arab League and EU foreign ministers meeting in Cairo on Tuesday welcomed the formation of the coalition as an important step forward, although their communiqué showed they had not reached a unanimous decision to recognize it as Syria's sole authority.

The French announcement came just hours after Syria's newly installed opposition leader urged European states to back the opposition so it could buy weapons.

Paris, one of Assad's harshest critics, had previously ruled out arming rebel forces, concerned that weapons could get into the hands of radical Islamists.

Speaking to Reuters as Arab and European ministers met to discuss Syria at the Arab League in Cairo, Mouaz Alkhatib, the Damascus preacher elected unopposed on Sunday to lead the new group, had asked for diplomatic backing.

"I request European states to grant political recognition to the coalition as the legitimate representative of the Syrian people and to give it financial support," he said.

"When we get political recognition, this will allow the coalition to act as a government and hence acquire weapons and this will solve our problems," added Alkhatib, who has been described by supporters as a moderate noted for his embrace of Syria's religious and ethnic minorities.

So far, concerted action on Syria has been thwarted by divisions within the opposition, as well as by big power rivalries and a regional divide between Sunni Muslim foes of Assad and his Shi'ite allies in Iran and Lebanon.

Russia and China, which have lent Assad diplomatic support since the uprising erupted in March last year, have shown no sign of warming towards his Western- and Arab-backed opponents.

"STEP FORWARD"

Cajoled by Qatar and the United States, the ineffectual Syrian National Council, previously the main opposition body based abroad, agreed to join a wider coalition on Sunday.

Britain's foreign minister, William Hague, said the coalition must show it had support within Syria before London would acknowledge it as the rightful government.

"If they have this, yes, we will then recognize them as the legitimate representative of the Syrian people," he told reporters at the Arab-European meeting in Cairo.

The opposition had hoped its new-found unity would clear the way for outside powers to arm the rebels, but Western nations fear such weapons could reach the hands of Islamist militants.

Western concern has also been heightened by documented reports of atrocities by ill-disciplined insurgents.

"Syria's newly created opposition front should send a clear message to opposition fighters that they must adhere to the laws of war and human rights law, and that violators will be held accountable," New York-based Human Rights Watch said.

BORDER VIOLENCE

Assad, whose family has ruled Syria for 42 years, has vowed to fight to the death in a conflict that has already killed an estimated 38,000 people and risks sucking in other countries.

His warplanes again struck homes in Ras al-Ain, a town on the northern border seized by rebels last week. Civilians fled over the border dividing it from the Turkish town of Ceylanpinar and thick plumes of smoke billowed upwards.

Syrian jets and artillery hit the town of Albu Kamal on the frontier with Iraq, where rebels have seized some areas, according to the mayor of the Iraqi border town of Qaim.

Tension also remained high on the Golan Heights, where Israeli gunners have retaliated against stray Syrian mortar fire landing on the occupied plateau in the previous two days.

Twenty months of conflict have created a vast humanitarian crisis, with more than 408,000 Syrians fleeing to neighboring countries and up to four million expected to need aid by early next year, according to the United Nations.

Fighting has also displaced 2.5 million civilians inside Syria, the Syrian Arab Red Crescent estimates.

"If anything, they believe it could be more; this is a very conservative estimate," Melissa Fleming, chief spokeswoman of the U.N. High Commissioner for Refugees, said in Geneva.

"So people are moving, really on the run, hiding," she told a news briefing. "They are difficult to count and access."

In Cairo, Arab League chief Nabil Elaraby urged opposition factions to join Alkhatib's group, formally known as the Syrian National Coalition for Opposition and Revolutionary Forces.

But although six Gulf Arab nations recognized the coalition as Syria's only legitimate representative on Monday, Iraq, Algeria and Lebanon prevented the League from following suit.

Iraq and Lebanon, with influential Shi'ite populations, have generally maintained better relations with Iran and with Assad, whose minority Alawite sect is an offshoot of Shi'ite Islam.

(Additional reporting by Shaimaa Fayed in Cairo and Jonathon Burch in Ceylanpinar, Turkey; Writing by Giles Elgood; Editing by Peter Graff)

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Zynga CFO David Wehner deflects to Facebook

NEW YORK (AP) — Zynga‘s finance chief is leaving the troubled online game company to join Facebook.

San Francisco-based Zynga Inc. said Tuesday that David Wehner will take a “senior finance position” at the social networking company. His exact title will be vice president of corporate finance and business planning, Facebook said.

Chief accounting officer, Mark Vranesh, is replacing Wehner as chief financial officer, returning to the post he held from 2008 to 2010, while Zynga was still a private company.

Zynga also reshuffled its executive ranks, a move CEO Mark Pincus said puts the company in a position for “long-term growth.” Zynga, whose games include “FarmVille” and “Texas HoldEm Poker,” has seen its stock price fall sharply in recent months amid concerns about its ability to make money from mobile games, off of Facebook.

David Ko, who was previously chief mobile officer, is now chief operations officer. Barry Cottle, who came to Zynga from Electronic Arts Inc., is now chief revenue officer. He was previously executive vice president of business and corporate development.

The appointments seek to fill some of the holes left by executives who’ve left Zynga in recent months. John Schappert, Zynga’s chief operating officer, left in August after less than a year and a half on the job. Schappert’s exit was followed by that of Mike Verdu, the company’s chief creative officer. And in September Jeff Karp, the chief marketing and chief revenue officer, left the company.

Zynga is also reaffirming its guidance. The company still expects adjusted earnings of 2 or 3 cents per share. Analysts polled by FactSet expect 3 cents.

Zynga shares closed up 1 cent at $ 2.11 and added 2 cents in after-hours trading.

Gaming News Headlines – Yahoo! News

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The Voice Sends Two Contestants Home

TV Watch

The Voice

By Julia Haskins

11/13/2012 at 10:20 PM EST

Adam Levine and Christina Aguilera

Christopher Polk/Getty

It was a great night for Teams Cee Lo and Adam on The Voice Tuesday. And though not everyone got good news on elimination night, there were plenty of entertaining performances from the coaches and contestants alike.

To open the night, Christina Aguilera and Green performed the world premiere of "Make the World Move," from her new album Lotus. Guest Jason Aldean also took the stage, and Blake Shelton rocked out with his team to Tom Cochrane's "Life is a Highway."

Green's Trevin Hunte, Nicholas David and Cody Belew came together for a '70s inspired – bell bottoms and all! – performance of the Bee Gee's "Stayin' Alive." But was it a sign of things to come? Keep reading for all the results ...

All of Green's singers as well as Levine's Bryan Keith, Melanie Martinez and Amanda Brown felt the love from viewers at home, and will have another shot at next week's show.

America also saved Aguilera's Sylvia Yacoub and Dez Duron, and Shelton's Cassadee Pope and Terry McDermott.

But without enough votes to keep them in the competition, Team Aguilera's Adriana Louise and Team Blake's Michaela Paige said goodbye.

Aguilera consoled Louise by reminding her that even she didn't win Star Search, but still made it to superstardom. Louise was grateful for all her coach's support. "You believed in me more than I believed in myself," she told Aguilera through tears.

Paige also enjoyed an uplifting experience on The Voice. "If I inspired anyone, that's all I wanted to do," Paige said. "Follow your dreams and believe in your heart." But her coach Shelton isn't too concerned about the aspiring singer's future.

"Her big old mohawk is going to be walking across the stage at the Grammys," he said, "and I can't wait."

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Report: FDA wanted to close Mass pharmacy in 2003

WASHINGTON (AP) — Nearly a decade ago, federal health inspectors wanted to shut down the pharmacy linked to a recent deadly meningitis outbreak until it cleaned up its operations, according to congressional investigators.

About 440 people have been sickened by contaminated steroid shots distributed by New England Compounding Center, and more than 32 deaths have been reported since the outbreak began in September, according to the Centers for Disease Control and Prevention. That has put the Framingham, Mass.-based pharmacy at the center of congressional scrutiny and calls for greater regulation of compounding pharmacies, which make individualized medications for patients and have long operated in a legal gray area between state and federal laws.

The House Energy and Commerce Committee released a detailed history of NECC's regulatory troubles on Monday, ahead of a meeting Wednesday meeting to examine how the outbreak could have been prevented. The 25-page report summarizes and quotes from FDA and state inspection memos, though the committee declined to release the original documents.

The report shows that after several problematic incidents, Food and Drug Administration officials in 2003 suggested that the compounding pharmacy be "prohibited from manufacturing" until it improved its operations. But FDA regulators deferred to their counterparts in Massachusetts, who ultimately reached an agreement with the pharmacy to settle concerns about the quality of its prescription injections.

The congressional report also shows that in 2003 the FDA considered the company a pharmacy. That's significant because in recent weeks public health officials have charged that NECC was operating more as a manufacturer than a pharmacy, shipping thousands of doses of drugs to all 50 states instead of small batches of drugs to individual patients. Manufacturers are regulated by the FDA and are subject to stricter quality standards than pharmacies.

The report offers the most detailed account yet of the numerous regulatory complaints against the pharmacy, which nearly date back to its founding in 1998. Less than a year later, the company was cited by the state pharmacy board for providing doctors with blank prescription pads with NECC's information. Such promotional items are illegal in Massachusetts and the pharmacy's owner and director, Barry Cadden, received an informal reprimand, according to documents summarized by the committee.

Cadden was subject to several other complaints involving unprofessional conduct in coming years, but first came to the FDA's attention in 2002. Here are some key events from the report highlighting the company's early troubles with state and federal authorities:

__ In March of 2002 the FDA began investigating reports that five patients had become dizzy and short of breath after receiving NECC's compounded betamethasone repository injection, a steroid used to treat joint pain and arthritis that's different from the one linked to the current meningitis outbreak.

FDA inspectors visited NECC on April 9 and said Cadden was initially cooperative in turning over records about production of the drug. But during a second day of inspections, Cadden told officials "that he was no longer willing to provide us with any additional records," according to an FDA report cited by congressional investigators. The inspectors ultimately issued a report citing NECC for poor sterility and record-keeping practices but said that "this FDA investigation could not proceed to any definitive resolution," because of "problems/barriers that were encountered throughout the inspection."

__ In October of 2002, the FDA received new reports that two patients at a Rochester, N.Y., hospital came down with symptoms of bacterial meningitis after receiving a different NECC injection. The steroid, methylprednisolone acetate, is the same injectable linked to the current outbreak and is typically is used to treat back pain. Both patients were treated with antibiotics and eventually recovered, according to FDA documents cited by the committee.

When officials from the FDA and Massachusetts Board of Pharmacy visited NECC later in the month, Cadden said vials of the steroid returned by the hospital had tested negative for bacterial contamination. But when FDA scientists tested samples of the drug collected in New York they found bacterial contamination in four out of 14 vials sampled. It is not entirely clear whether FDA tested the same lot shipped to the Rochester hospital.

__ At a February 2003 meeting between state and federal officials, FDA staff emphasized "the potential for serious public consequences if NECC's compounding practices, in particular those relating to sterile products, are not improved." The agency issued a list of problems uncovered in its inspection to NECC, including a failure to verify if sterile drugs met safety standards.

But the agency decided to let Massachusetts officials take the lead in regulating the company, since pharmacies are typically regulated at the state level. It was decided that "the state would be in a better position to gain compliance or take regulatory action against NECC as necessary," according to a summary of the meeting quoted by investigators.

The FDA recommended the state subject NECC to a consent agreement, which would require the company to pass certain quality tests to continue operating. But congressional investigators say Massachusetts Board of Pharmacy did not take any action until "well over a year later."

__ In October 2004, the board sent a proposed consent agreement to Cadden, which would have included a formal reprimand and a three-year probationary period for the company's registration. The case ended without disciplinary action in 2006, when NECC agreed to a less severe consent decree with the state.

Massachusetts officials indicated Tuesday they are still investigating why NECC escaped the more severe penalty.

"I will not be satisfied until we know the full story behind this decision," the state's interim health commissioner Lauren Smith said in a transcript of her prepared testimony released a day ahead of delivery. Smith is one of several witnesses scheduled to testify Wednesday, including FDA Commissioner Margaret Hamburg.

The committee will also hear from the widow of 78-year-old Eddie C. Lovelace, a longtime circuit court judge in southern Kentucky. Autopsy results confirmed Lovelace received fungus-contaminated steroid injections that led to his death Sept. 17.

Joyce Lovelace will urge lawmakers to work together on legislation to stop future outbreaks caused by compounded drugs, according to a draft of her testimony.

"We now know that New England Compounding Pharmacy, Inc. killed Eddie. I have lost my soulmate and life's partner with whom I worked side by side, day after day for more than fifty years," Lovelace states.

Barry Cadden is also scheduled to appear at the hearing, after lawmakers issued a subpoena to compel him to attend.

The NECC has been closed since early last month, and Massachusetts officials have taken steps to permanently revoke its license. The pharmacy has recalled all the products it makes, including 17,700 single-dose vials of a steroid that tested positive for the fungus tied to the outbreak.

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Fed's Yellen backs holding rates near zero to 2016

BERKELEY, California (Reuters) - Federal Reserve Vice Chair Janet Yellen said on Tuesday that U.S. short-term interest rates may need to stay near zero until early 2016, a half year longer than Wall Street dealers expect, to forcefully lift employment.

The central bank's No. 2 official, viewed as a front-runner to succeed Fed Chairman Ben Bernanke when his term expires in January 2014, also said she strongly backed adopting inflation and unemployment thresholds to guide future policy.

That would allow the Fed to move away from shaping financial market expectations with calendar dates. After its last meeting in October, the Fed reiterated that it expected to keep the overnight federal funds rate near zero until at least mid-2015.

Yellen, however, argued an optimal policy would keep rates on hold for longer at the cost of a bit more inflation.

"This highly accommodative policy path generates a faster reduction in unemployment than in the baseline, while inflation overshoots the (Fed policy) committee's 2.0 percent objective for several years," she told students at the Haas School of Business at the University of California, Berkeley.

As a baseline, Yellen used an early September consensus from Wall Street firms, which showed they expected rates to remain near zero only through the first half of 2015.

Yellen is seen as one of the more dovish members of the Fed's policy-setting committee in her willingness to support aggressive efforts to spur job growth, but some other members are more hawkish in their concerns about inflation.

Dallas Federal Reserve Bank President Richard Fisher, asked about the 2016 date, said there was a limit to how much more monetary policy could do to spur growth.

"There is a limit. We'll have to discuss as a committee what that limit is ... we just cannot continue down the road of infinite expansion of monetary policy," he told CNBC television.

But Fisher, who is not a voter this year, also said that inflation and inflation expectations remained under control, and urged U.S. lawmakers to tackle a year-end fiscal cliff of potential tax hikes and spending cuts to remove uncertainty that he saw holding back business hiring.

The Fed cut overnight rates to near zero in December 2008 and it has bought around $2.3 trillion in securities to drive other borrowing costs down and spur a stronger recovery.

While there are signs the economy is gaining a bit of speed, the jobless rate remains stubbornly high at 7.9 percent.

POLICY PATIENCE

In January, the Fed adopted what it termed a "balanced approach" to its mandated goals of full employment and stable prices, suggesting it would temporarily tolerate a bit more inflation to move the jobless rate lower.

On prices, it normally targets 2.0 percent inflation and policymakers' current estimates suggest they view an unemployment rate of between 5.2 percent and 6.0 percent as consistent with maximum employment.

Yellen made clear that she does not view the inflation target as a ceiling and that slightly higher inflation may well be needed for the Fed to fulfill its promise to pursue a "balanced" monetary policy.

"The optimal policy to implement this 'balanced approach' to minimize deviations from the inflation and unemployment goals involves keeping the federal funds rate close to zero until early 2016," she said. She said rates would stay below the path expected by Wall Street dealers through 2018.

COMMUNICATING ON COMMUNICATIONS

Yellen stressed that communicating Fed intentions clearly was vital to the success of its policies, and emphatically endorsed adopting numerical thresholds for unemployment and inflation to guide expectations on when rates would go back up.

"Several of my ... colleagues have advocated such an approach and I am also strongly supportive," she said.

Chicago Federal Reserve Bank President Charles Evans has suggested holding rates steady until unemployment is under 7.0 percent, provided inflation remains below 3.0 percent. Minneapolis Fed chief Narayana Kocherlakota outlined thresholds of 5.5 percent unemployment and 2.25 percent inflation.

"The idea is to define a zone of combinations of the unemployment rate and inflation within which the (Fed) would continue to hold the federal funds rate in its current, near-zero range," Yellen said.

She said that would help shape expectations of the Fed's likely response to incoming data. Even so, she said the thresholds would not trigger a rate hike decision, which would require "further committee deliberation and judgment."

(Writing by Alister Bull; Editing by Lisa Shumaker)

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Syria opposition seeks support; Israel fires from Golan

DOHA/CAIRO (Reuters) - Syria's newly named opposition leader, a soft-spoken cleric backed by Washington and the Gulf Arab states, launched his quest on Monday for international recognition as a government-in-waiting to topple President Bashar al-Assad.

In a sign of the danger that the civil war could spread across Syria's borders, Israeli forces said they fired "direct hits" on Syrian artillery in response to a mortar strike into the Israeli-occupied Golan Heights.

Western and Arab enemies of Assad hope the creation of a new Syrian National Coalition for Opposition and Revolutionary Forces can finally unify a fractious and ineffective opposition.

Mouaz Alkhatib, a former imam of a Damascus mosque, flew to Cairo to seek the Arab League's blessing for the new assembly, the day after he was unanimously elected to lead it. He made a concerted effort to address the sectarian and ethnic acrimony underlying 20 months of civil war that has killed 38,000 people.

"We demand freedom for every Sunni, Alawi, Ismaili, Christian, Druze, Assyrian ... and rights for all parts of the harmonious Syrian people," he said, calling on Syrian soldiers to desert and all sects to unite.

His assembly was recognized by the six Sunni Muslim-ruled kingdoms of the Gulf Cooperation Council as "the legitimate representative of the Syrian people". Washington said it would back it "as it charts a course toward the end of Assad's bloody rule and the start of the peaceful, just, democratic future".

The Arab League welcomed the formation of the new body, called on other opposition groups to join it and described it as "a legitimate representative and a primary negotiator", but fell short of calling it the new authority in Syria.

Shooting across the line that divides Syria from the Israeli-occupied Golan was just the latest spillover of violence that has alarmed neighbors including Turkey and Lebanon.

Israeli military sources said Israel hit Syrian army mobile artillery on Monday, the second straight day it fired back in retaliation for what it said were stray mortars hitting Golan.

"We will not allow our borders to be breached or our citizens to be fired at," Prime Minister Benjamin Netanyahu said. Israel seized the Golan Heights from Syria in 1967. Although the two countries have not fought over the territory since 1973, they are still officially at war.

U.N. Secretary-General Ban Ki-Moon called on Israel and Syria to halt firing.

In the north, where fighting has sent thousands of Syrian refugees fleeing into Turkey, a Reuters correspondent saw Syrian jets and helicopters bomb Ras al-Ain, a border town taken by rebels last week. Bombs landed just meters from the frontier, sending up plumes of black smoke.

Opposition groups said 12-16 people died in the air strikes. Turkey said it did not appear that the planes had entered its air space. It is discussing with NATO allies deploying Patriot air defense missiles on the border.

WRANGLING

Rebels and opposition politicians formed Alkhatib's new opposition coalition after days of wrangling in Qatar under intense U.S. and Qatari pressure.

Backers hope the new body will give rebels inside Syria more clout and reassure religious and ethnic minorities, after a Syrian National Council (SNC) made up mainly of exiled Islamists proved ineffective as the main opposition voice.

Western and Arab opponents of Assad want the coalition to attract support from minority sects which had been alienated from the opposition by the prominence of well-organized Sunnis from the Muslim Brotherhood. They also hope to rein in Islamist fighters, some of whom they believe are linked to al Qaeda.

"Alkhatib is a dynamic, progressive Islamist, popular in Damascus and the rest of Syria," said Mazen Adi, a prominent Syrian human rights defender who worked with Alkhatib before the revolt. "He is not a trigger-happy Jihadist, and he can play a role in containing the extremist groups."

Alkhatib met Arab League chief Nabil Elaraby before Monday's gathering of Arab foreign ministers in Cairo. European foreign ministers are due to join them on Tuesday.

A League official said before the meeting that the League would fall shy of calling the new group the sole legitimate representative of the Syrian people because some Arab states were still reluctant to delegitimize Assad.

"There are still Arab states like Iraq and Lebanon that are not fully supportive of the Syrian revolt," the official said, on condition he not be identified.

Alkhatib, in his early 50s, was jailed several times for criticizing Assad before fleeing into exile this year. He has long promoted a liberal Islam tolerant of Syria's Christian, Alawite and other minorities, activists say.

Hassan Hassan, a Syrian commentator based in the United Arab Emirates, said Alkhatib, as an independent cleric, would be a counterweight to growing influence of the Muslim Brotherhood.

"He's been active for a long time, campaigning against the idea of retribution and extremism. He talks about liberty and freedom for the masses. So he is perceived as a credible figure," Hassan said.

Russia, which with China has foiled U.N. action on Syria and views Assad's opponents as pawns of the West, urged the new body to negotiate and to reject outside meddling.

Asked if China recognized the new coalition, Foreign Ministry spokesman Hong Lei called on all parties to initiate "a political transition process guided by the Syrian people".

It remains to be seen whether the Coalition can succeed where the exiled SNC failed in overcoming mutual suspicion and in-fighting that weakened the opposition.

"This is a significant step forward, because they finally seem to be forging a more broadly-based platform that includes the SNC but without the SNC taking the lion's share," said Salman Shaikh, director of the Doha Brookings Center think tank.

(Additional reporting by Andrew Hammond in Doha, Khaled Yacoub Oweis in Amman, Jonathon Burch in Ceylanpinar, Crispian Balmer in Jerusalem, Arshad Mohammed in Washington, Michael Martina in Beijing, Steve Gutterman in Moscow, Regan Doherty in Doha and Ayman Samir in Cairo; Writing by Peter Graff; Editing by Giles Elgood and Philippa Fletcher)

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Lockheed says cyber attacks up sharply, suppliers targeted

WASHINGTON (Reuters) – The Pentagon‘s No. 1 supplier, Lockheed Martin Corp, on Monday cited dramatic growth in the number and sophistication of international cyber attacks on its networks and said it was contacting suppliers to help them shore up their security.

Chandra McMahon, Lockheed vice president and chief information security officer, said about 20 percent of the threats directed at Lockheed networks were considered “advanced persistent threats,” prolonged and targeted attacks by a nation state or other group trying to steal data or harm operations.

“The number of campaigns has increased dramatically over the last several years,” McMahon told a news conference. “The pace has picked up.”

She said the tactics and techniques were becoming increasingly sophisticated, and attackers were clearly targeting Lockheed suppliers to gain access to information since the company had fortified its own networks.

U.S. officials have stepped up their warnings about cyber attacks on U.S. banks and other institutions in recent months, warning that attackers are developing the ability to strike U.S. power grids and government systems.

Lockheed officials declined to say if any of the attacks they had seen originated in Iran, which has been linked to recent denial-of-service attacks against U.S. financial institutions.

Rohan Amin, Lockheed program director for the Pentagon’s Cyber Crime Center (DC3), said internal analysis showed that the number of campaigns had clearly grown, and multiple campaigns were often linked.

Lockheed recently wrested a $ 450 million contract to run the military cyber center away from long-time holder General Dynamics Corp.

“HUGE PROBLEM”

As the top information technology provider to the U.S. government, Lockheed has long worked to secure data on computer networks run by a range of civilian and military agencies. The company is also trying to expand sales of cybersecurity technology and services to commercial firms, including its suppliers, and foreign governments, Lockheed executives said.

“Suppliers are still a huge problem,” said Charlie Croom, Lockheed’s vice president of cybersecurity solutions, noting the large number of companies that provide products and components for Lockheed, which has annual sales of just under $ 47 billion.

Croom, the former head of the Pentagon’s Defense Information Systems Agency, said cybersecurity was a crucial area for Lockheed, but said it was difficult to pinpoint exactly how much business it generates because network security is part of nearly everything the company sells and does for the government.

He estimated that 5 to 8 percent of Lockheed’s revenues in the information systems sector were related to cybersecurity. Lockheed generated $ 9.4 billion sales in that division in 2011.

McMahon said Lockheed had seen “very successful” attacks against a number of the company’s suppliers, and was focusing heavily on helping those companies improve their security.

She said a well-publicized cyber attack on Lockheed’s networks in May 2011 came after the computer systems of two of its suppliers — RSA, the security division of EMC Corp and another unidentified company — were compromised.

“The adversary was able to get information from RSA and then they were also able to steal information from another supplier of ours, and they were able to put those two pieces of information together and launch an attack on us,” McMahon said.

She said Lockheed had been tracking the adversary for years before that attack, and was able to prevent any loss of data by using its in-house detection and monitoring capabilities.

One of the lessons the company learned was the importance of sharing data with other companies in the defense sector, and suppliers, to avert similar attacks, McMahon said.

“It’s just one example of how the adversary has been very significant and tenacious and has really been targeting the defense industrial base,” she said.

Social media, websites and malware introduced by emails remain major areas of concern, Lockheed executives said.

(Reporting By Andrea Shalal-Esa; Editing by Paul Tait)

Internet News Headlines – Yahoo! News

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Dancing with the Stars: Which Couple Had a Perfect Night?

11/12/2012 at 11:15 PM EST

Tom Bergeron and Brooke Burke Charvet

Adam Larkey/ABC

After performing twice last week, the remaining couples on Dancing with the Stars had double duty again Monday night. Each pair performed a tribute to America's troops as well as a trio dance with an eliminated pro or member of the DWTS troupe.

And it was a night of big scores! But the pressure is on ahead of Tuesday's double elimination.

Keep reading for all the details ...

Melissa Rycroft and Tony Dovolani furthered their lead after a night of perfect dancing. In the first round, they performed a quickstep that earned a standing ovation from the audience and 30 points from the judges. "It was like watching Ann Miller and Gene Kelly," Bruno Tonioli said. "It was as good as the best America has ever produced." Troupe member Henry Byalikov joined them for a trio paso doble in the second round – and another perfect score. "Of all of our celebrities," said Len Goodman, "you impress me the most."

Shawn Johnson and Derek Hough's Viennese waltz at the beginning of the night was well received. "You've turned into a beautiful, rich, in-depth performer," Carrie Ann Inaba said. They earned 29.5 points in the first round. But their trio with former partner Mark Ballas, a samba with tribal elements, caused a controversy in the ballroom. "It was very self-indulgent because there was very little samba content," Len said. "If you go home tomorrow don't blame me, blame those two." The second dance earned 26 points.

Apolo Ohno zip-lined across the ballroom to kick off his tango with partner Karina Smirnoff. "It was like Tom Cruise in Mission Impossible," Len said of the routine, which earned 29.5 points. "I absolutely loved it." For their trio the pair did a jive with troupe member Sasha Farber and earned another 29 points.

Gilles Marini and Peta Murgatroyd's quickstep to "Danger Zone" from Top Gun had a "few wobbles," according to Carrie Ann. Still, they earned 29.5 points. In the second round of competition, the pair performed a super sexy salsa with Chelsie Hightower. "I loved how you came out and you took control of the dance floor," Carrie Ann said of the routine, which earned them 29 more points.

Kelly Monaco proved she's "growing every week," according to Carrie Ann, who praised her 28-point Viennese waltz with Val Chmerkovskiy. Louis Van Amstel joined them for a trio jive in round two. "It had the F-factor," Len said of the 28.5-point routine. "It was fun, it was fast, it was flamboyant and it was fabulous."

Emmitt Smith and Cheryl Burke started off the night with a 28-point salsa that had Len saying, "This man puts the 'ooh' in smooth." Kym Johnson joined them at the end of the night for a salsa that earned a perfect 30 points. "You were in the red-hot, spicy jalapeño zone," Carrie Ann said.

Once again at the bottom are Kirstie Alley and Maksim Chmerkovskiy, who performed a Viennese waltz, which Len called their "very best dance," but earned just 27 points. Tristan MacManus joined them for a trio paso doble that Bruno said was "like watching Valley of the Dolls." "It did lack a bit of finesse," Len agreed. Their second routine scored just 24 points.

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British medical journal slams Roche on Tamiflu

LONDON (AP) — A leading British medical journal is asking the drug maker Roche to release all its data on Tamiflu, claiming there is no evidence the drug can actually stop the flu.

The drug has been stockpiled by dozens of governments worldwide in case of a global flu outbreak and was widely used during the 2009 swine flu pandemic.

On Monday, one of the researchers linked to the BMJ journal called for European governments to sue Roche.

"I suggest we boycott Roche's products until they publish missing Tamiflu data," wrote Peter Gotzsche, leader of the Nordic Cochrane Centre in Copenhagen. He said governments should take legal action against Roche to get the money back that was "needlessly" spent on stockpiling Tamiflu.

Last year, Tamiflu was included in a list of "essential medicines" by the World Health Organization, a list that often prompts governments or donor agencies to buy the drug.

Tamiflu is used to treat both seasonal flu and new flu viruses like bird flu or swine flu. WHO spokesman Gregory Hartl said the agency had enough proof to warrant its use for unusual influenza viruses, like bird flu.

"We do have substantive evidence it can stop or hinder progression to severe disease like pneumonia," he said.

In the U.S., the Centers for Disease Control and Prevention recommends Tamiflu as one of two medications for treating regular flu. The other is GlaxoSmithKline's Relenza. The CDC says such antivirals can shorten the duration of symptoms and reduce the risk of complications and hospitalization.

In 2009, the BMJ and researchers at the Nordic Cochrane Centre asked Roche to make all its Tamiflu data available. At the time, Cochrane Centre scientists were commissioned by Britain to evaluate flu drugs. They found no proof that Tamiflu reduced the number of complications in people with influenza.

"Despite a public promise to release (internal company reports) for each (Tamiflu) trial...Roche has stonewalled," BMJ editor Fiona Godlee wrote in an editorial last month.

In a statement, Roche said it had complied with all legal requirements on publishing data and provided Gotzsche and his colleagues with 3,200 pages of information to answer their questions.

"Roche has made full clinical study data ... available to national health authorities according to their various requirements, so they can conduct their own analyses," the company said.

Roche says it doesn't usually release patient-level data available due to legal or confidentiality constraints. It said it did not provide the requested data to the scientists because they refused to sign a confidentiality agreement.

Roche is also being investigated by the European Medicines Agency for not properly reporting side effects, including possible deaths, for 19 drugs including Tamiflu that were used in about 80,000 patients in the U.S.

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Online:

www.bmj.com.tamiflu/

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