Obama Receives Warm Welcome in Myanmar







YANGON, MYANMAR — The generals predicted that the Americans would come — but not like this.




In the paranoid decades of military rule, members of Myanmar’s junta told diplomats that they feared an American invasion and regime change.


On Monday, there was a large American deployment to Myanmar, but of an entirely different kind. Two jumbo jets carrying President Barack Obama, Secretary of State Hillary Rodham Clinton and their substantial entourage arrived for a six-hour visit. They were greeted by hundreds of people along Yangon’s streets, many of them waving U.S. flags.


“I saw Obama and nearly fainted,” said U Sein Hla Maung, an accounting teacher, who was perched on a hill overlooking the airport. “I’m very excited.”


Across the city there were symbols of how much mistrust has dissolved between the two governments and how much Myanmar has changed over the past two years as it moves from a dictatorship and toward a democracy. There were graffiti tributes to Mr. Obama, and shops sold T-shirts with his image.


“You are the legend hero of our world,” read a large sign in English held by a group of women standing along the road where Mr. Obama’s motorcade passed.


The warm greeting that Mr. Obama received here was partly government pomp and protocol. Hundreds of students in uniform were bused to the airport to line the roads and chanted in unison a rehearsed greeting: “President Obama is warmly welcomed to Myanmar!”


But the hundreds of others who came to greet the president’s motorcade on their own said they were deeply moved by Mr. Obama’s presence.


“We’ve been waiting 50 years for this visit,” said Kyaw Soe Moe, a restaurateur who had stood along the road with two large American flags. “There is justice and law in the United States. I want our country to be like that.”


During Myanmar’s military rule, American flags were taboo and symbols of defiance. On Monday, well-wishers said it was a measure of new freedoms in the country that they could greet Mr. Obama holding the Stars and Stripes.


“America always meant support for democracy for us,” Win Min, a former student activist who was one of two interpreters of a speech Mr. Obama delivered during his visit. “It was the country that had the strongest criticism of the military regime. We looked up to America.”


In 1988, when students and striking workers rose up against military rule, they marched almost daily to the U.S. Embassy. The military put down the uprising in a crackdown that killed many. It has only been 20 months since the junta in Myanmar ceded power to the civilian government of President Thein Sein. Therefore, American flags strewn across the capital, and Air Force One parked at the airport in Yangon, were a novel and somewhat jarring sight.


“There were people in the old regime and there are probably some people in the new government who still fear America,” said U Thant Myint-U, a historian who was in the audience for Mr. Obama’s speech. “They are afraid of what American influence could unleash here.”


Mr. Obama’s visit suggests that the Myanmar government “now has gained a level of confidence,” Mr. Thant Myint-U said.


Some members of the governing party, which is led by former generals of the junta, sought to play down the visit.


“I want to say that America is not the only friend of our nation — China and India are our friends too,” said U Khin Maung Htoo, a member of Parliament with the Union Solidarity and Development Party.


Mr. Khin Maung Htoo also said it was inappropriate for Mr. Obama to have met Myanmar’s president in Yangon instead of Naypyidaw, the capital built and conceived by the military.


The timing of the visit was awkward for Mr. Thein Sein, who flew from a regional meeting of the Association of Southeast Asian Nations in Cambodia to meet Mr. Obama and then flew back to Cambodia immediately afterward.


In his speech at the University of Yangon, Mr. Obama spoke about the changes to the country and offered a “hand of friendship” between two countries that had become “strangers.” The speech was carried live on Myanmar television, but without explanation the announcers stopped simultaneous interpretation in Burmese after several minutes.


Mr. Obama spoke about Myanmar’s continuing ethnic strife and said the country should harness the “power of diversity.” He said that people with his skin color were once denied the right to vote in the United States.


“And so that should give you some sense that if our country can transcend its differences,” Mr. Obama said, “then yours can too.”


On the street outside the university was U Ko Ni, a former political prisoner, who held up a sign: “Welcome Americans. No other nation has full human rights and democracy. We need and want democracy. Do help.”


Wai Moe contributed reporting from Yangon.


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Dancing with the Stars: Couples Perform Crazy Combinations in Semi-Finals






Dancing With the Stars










11/19/2012 at 11:05 PM EST







Shawn Johnson and Derek Hough


Craig Sjodin/ABC


It's the semi-finals!

The remaining five couples on Dancing with the Stars faced two rounds of competition on Monday. First, the pairs performed mixed-up routines, blending uncommon styles with unusual themes. Then, they celebrated the 25th anniversary of Michael Jackson's hit album Bad with more traditional ballroom numbers.

Keep reading for all the details and scores ...

Melissa Rycroft & Tony Dovolani
Last week's top scorers kicked off the night with a caveman hustle. "Fred and Wilma have never danced so well," Len Goodman said, while Bruno Tonioli said they lost footing during the turns. They scored a 27.5. But their red-hot Argentine tango to "Dirty Diana" was a perfect 30. "That was beyond anything I could have imagined for you," a thrilled Carrie Ann Inaba said. "I would be really disappointed if you're not here next week," Len added.

Shawn Johnson & Derek Hough
Hough said he would rather put mustard on ice cream than combine their Knight Rider theme with the Bhangra style. But the judges ate up the routine – and awarded the pair a perfect 30. In round two, their Argentine tango sparked disagreement on the panel. Bruno and Len held up 10s but Carrie Ann knocked off a point. "Every line was perfect, but dance is sometimes more than just movement and I thought that you lacked the real passion of the Argentine tango," she said.

Apolo Ohno & Karina Smirnoff
Their big top jazz routine was another sticking point for Carrie Ann and Bruno. She found the mime-themed dance "very disjointed," "out of sync" and "quite sloppy." He found it "edgy, surreal" and a "great mixture of jazz movement." They earned 27 points. But there was no arguing over their rumba to "Man in the Mirror," which earned a perfect 30. "It was like the sea," Len said. "There was wave after wave of effortless motion. There was a subtlety to it, there was a calmness. It captivated. It was fabulous."

Emmitt Smith & Cheryl Burke
The goal of their espionage lindy hop was to be cartoonish. Though that was tough for the former Dallas Cowboy, the judges were pleased and awarded the pair 27 points. "It was like a Looney Tunes version of James Bond," Bruno said. "It was the most fun performance I've seen you do." Their tango to "Leave Me Alone" was more of a challenge, but Len still gave Smith credit: "You've coped marvelously well with two dances that didn't really suit you," he said.

Kelly Monaco & Val Chmerkovskiy
Their surfer flamenco was super sexy – Val ended up in nothing but Speedo! – but the judges had issues with their technique, and handed out only 25.5 points. "It had a lot of aggression and a lot of fire. But the flamenco has very, very exact placement and it wasn't there," Bruno said. Carrie Ann called it "robotic." But they added 28.5 points with a romantic rumba to "I Just Can't Stop Loving You." "That was smoldering, driven by desire, consumed by lust," Bruno said. "The chemistry between you two is literally singeing."

Two couples are heading home Tuesday night, leaving just three to compete in next week's finale. Who deserves a chance at the mirror-ball trophy? Discuss in the comments below.

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New push for most in US to get at least 1 HIV test

WASHINGTON (AP) — There's a new push to make testing for the AIDS virus as common as cholesterol checks.

Americans ages 15 to 64 should get an HIV test at least once — not just people considered at high risk for the virus, an independent panel that sets screening guidelines proposed Monday.

The draft guidelines from the U.S. Preventive Services Task Force are the latest recommendations that aim to make HIV screening simply a routine part of a check-up, something a doctor can order with as little fuss as a cholesterol test or a mammogram. Since 2006, the Centers for Disease Control and Prevention also has pushed for widespread, routine HIV screening.

Yet not nearly enough people have heeded that call: Of the more than 1.1 million Americans living with HIV, nearly 1 in 5 — almost 240,000 people — don't know it. Not only is their own health at risk without treatment, they could unwittingly be spreading the virus to others.

The updated guidelines will bring this long-simmering issue before doctors and their patients again — emphasizing that public health experts agree on how important it is to test even people who don't think they're at risk, because they could be.

"It allows you to say, 'This is a recommended test that we believe everybody should have. We're not singling you out in any way,'" said task force member Dr. Douglas Owens, of Stanford University and the Veterans Affairs Palo Alto Health Care System.

And if finalized, the task force guidelines could extend the number of people eligible for an HIV screening without a copay in their doctor's office, as part of free preventive care under the Obama administration's health care law. Under the task force's previous guidelines, only people at increased risk for HIV — which includes gay and bisexual men and injecting drug users — were eligible for that no-copay screening.

There are a number of ways to get tested. If you're having blood drawn for other exams, the doctor can merely add HIV to the list, no extra pokes or swabs needed. Today's rapid tests can cost less than $20 and require just rubbing a swab over the gums, with results ready in as little as 20 minutes. Last summer, the government approved a do-it-yourself at-home version that's selling for about $40.

Free testing is available through various community programs around the country, including a CDC pilot program in drugstores in 24 cities and rural sites.

Monday's proposal also recommends:

—Testing people older and younger than 15-64 if they are at increased risk of HIV infection,

—People at very high risk for HIV infection should be tested at least annually.

—It's not clear how often to retest people at somewhat increased risk, but perhaps every three to five years.

—Women should be tested during each pregnancy, something the task force has long recommended.

The draft guidelines are open for public comment through Dec. 17.

Most of the 50,000 new HIV infections in the U.S. every year are among gay and bisexual men, followed by heterosexual black women.

"We are not doing as well in America with HIV testing as we would like," Dr. Jonathan Mermin, CDC's HIV prevention chief, said Monday.

The CDC recommends at least one routine test for everyone ages 13 to 64, starting two years younger than the task force recommended. That small difference aside, CDC data suggests fewer than half of adults under 65 have been tested.

"It can sometimes be awkward to ask your doctor for an HIV test," Mermin said — the reason making it routine during any health care encounter could help.

But even though nearly three-fourths of gay and bisexual men with undiagnosed HIV had visited some sort of health provider in the previous year, 48 percent weren't tested for HIV, a recent CDC survey found. Emergency rooms are considered a good spot to catch the undiagnosed, after their illnesses and injuries have been treated, but Mermin said only about 2 percent of ER patients known to be at increased risk were tested while there.

Mermin calls that "a tragedy. It's a missed opportunity."

___

Online:

Task force recommendation: http://www.uspreventiveservicestaskforce.org

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Asian shares rise on hopes for U.S. fiscal deal

TOKYO (Reuters) - Asian shares rose on Tuesday on hopes of a compromise in the U.S. fiscal crisis, while the euro fell after Moody's Investors Service scrapped France's top-notch credit rating, reminding investors of the downside risk from the euro zone debt woes.


With risk assets from stocks to commodities rallying over the past two sessions, recovering some of last week's sharp losses, markets were prone to profit taking as trading will likely slow ahead of Thanksgiving holiday weekend.


The dollar steadied against a basket of key currencies <.dxy> after Monday's 0.5 percent drop, capping commodities and gold. Oil also retreated from a near 3 percent jump on Monday.


U.S. stock futures eased 0.1 percent to hint at a weak Wall Street open. Financial spreadbetters predict London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> will open down as much as 0.3 percent. <.l><.eu><.n/>


MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> added 0.7 percent, led by the materials and technology sectors <.miapjmt00pus><.miappjit00pus>.


Wall street climbed nearly 2 percent on Monday thanks to expectations that U.S. Congress reach a compromise to avoid $600 billion in tax increases and spending cuts due to start in January - the "fiscal cliff" that threatens to derail the U.S. economy.


"There's some optimism at the moment about the Americans doing something constructive about their fiscal cliff problem," said Damien Boey, equity strategist at Credit Suisse.


Tech stocks lifted Korean shares <.ks11> up 0.6 percent and Hong Kong <.hsi> stocks added 0.8 percent to a one-week high.


Shanghai shares <.ssec> fell 0.5 percent, nearing their lowest since early 2009 hit on Monday, after data showed China's foreign direct investment inflows fell 3.45 percent in the first 10 months of 2012 from a year ago.


Japan's Nikkei average <.n225> inched down 0.1 percent, after reaching a fresh two-month high earlier in the day. <.t/>


As expected, the Bank of Japan took no fresh steps after a two-day policy meeting on Tuesday, reiterating that it would pursue powerful monetary easing as Japan's economy is weakening.


The dollar fell 0.2 percent to 81.23 yen, but held near its highest since April 25 of 81.59 yen touched on Monday.


David Baran, co-founder of Tokyo-based hedge fund Symphony Financial Partners, said Japanese equities and the yen were attractive in comparison to other Asian assets. Nikkei has stayed at the lower end of ranges through 2012 and there are expectations that next month's election will result in a government that wants the BOJ to take stronger stimulus steps.


"Just from a risk-reward standpoint, you are seeing investors looking at Japan, looking at the yen and natural extrapolation of maybe we've seen the end of the bottom range of the dollar/yen," he said. "If you are trying to trade big moves, turning points, then you are getting into low risk, high reward possibility in yen and subsequently Japanese equities."


TAIL RISKS REMAIN


Euro zone finance ministers are expected to give a tentative go-ahead for the disbursement of 44 billion euros in emergency loans to Greece at a meeting later on Tuesday and discuss how to reduce Greek debt and provide two extra years of external financing to help Athens meet its fiscal target.


Ratings agency Fitch on Monday warned that failure to reach a deal on the "fiscal cliff" could trigger a recession and push the U.S. jobless rate above 10 percent. Given such "far-reaching effects," Fitch said it did not expect Congress to allow it to happen, echoing recent market optimism.


But Richard Franulovich, senior currency strategist at Westpac Securities in New York, said in a note that the positive conciliatory rhetoric over the "fiscal cliff" could easily come unstuck, while anything that is produced at the euro zone finance ministers' meeting is likely to be piecemeal.


"Given our read of the fiscal cliff and Greek risks we remain comfortable fading strength in risk assets," he said.


The euro zone's debt crisis saw Moody's cut France's government bond rating to Aa1 and keep its negative outlook, citing the country's uncertain fiscal outlook and deteriorating economic prospects.


France's downgrade sent the euro down 0.3 percent to $1.2777 from $1.2810, before it steadied to $1.2797, and also weighed on the euro against the yen.


Hiroshi Maeba, head of FX trading Japan for UBS in Tokyo, said the reaction to the downgrade was limited, as trading was getting lighter ahead of Thanksgiving weekend.


"Given the recent market rally, the rest of the week is likely to be spent on adjusting positions before the long weekend, with any uptick giving way to profit taking," he said.


Brent crude held steady above $111 a barrel on Tuesday, less than a dollar away from a one-month top hit in the previous session, on hopes over the U.S. budget crisis and supply worries triggered by tensions in the Middle East.


U.S. crude futures eased 0.3 percent to $89.06.


Spot gold was nearly flat at $1,732.05 an ounce.


With risk appetite recovering, credit market spreads on the iTraxx Asia ex-Japan investment-grade index tightened by 4 basis points.


(Additional reporting by Clement Tan in Hong Kong and Thuy On in Sydney; Editing by Simon Cameron-Moore)


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Gaza Clash Escalates With Deadliest Israeli Strike


Bernat Armangue/Associated Press


Smoke rose over Gaza City on Sunday, as Israel widened its range of targets to include buildings used by the news media.







CAIRO — Emboldened by the rising power of Islamists around the region, the Palestinian militant group Hamas demanded new Israeli concessions to its security and autonomy before it halts its rocket attacks on Israel, even as the conflict took an increasing toll on Sunday.




After five days of punishing Israeli airstrikes on the Hamas-controlled Gaza Strip and no letup in the rocket fire in return, representatives of Israel and Hamas met separately with Egyptian officials in Cairo on Sunday for indirect talks about a truce.


The talks came as an Israeli bomb struck a house in Gaza on Sunday afternoon, killing 11 people, in the deadliest single strike since the conflict between Israel and Hamas escalated on Wednesday. The strike, along with several others that killed civilians across the Gaza Strip, signaled that Israel was broadening its range of targets on the fifth day of the campaign.


By the end of the day, Gaza health officials reported that 70 Palestinians had been killed in airstrikes since Wednesday, including 20 children, and that 600 had been wounded. Three Israelis have been killed and at least 79 wounded by unrelenting rocket fire out of Gaza into southern Israel and as far north as Tel Aviv.


Hamas, badly outgunned on the battlefield, appeared to be trying to exploit its increased political clout with its ideological allies in Egypt’s new Islamist-led government. The group’s leaders, rejecting Israel’s call for an immediate end to the rocket attacks, have instead laid down sweeping demands that would put Hamas in a stronger position than when the conflict began: an end to Israel’s five-year-old embargo of the Gaza Strip, a pledge by Israel not to attack again and multinational guarantees that Israel would abide by its commitments.


Prime Minister Benjamin Netanyahu of Israel stuck to his demand that all rocket fire cease before the air campaign lets up, and Israeli tanks and troops remained lined up outside Gaza on Sunday. Tens of thousands of reserve troops had been called up. “The army is prepared to significantly expand the operation,” Mr. Netanyahu said at the start of a cabinet meeting.


Reda Fahmy, a member of Egypt’s upper house of Parliament and of the nation’s dominant Islamist party, who is following the talks, said Hamas’s position was just as unequivocal. “Hamas has one clear and specific demand: for the siege to be completely lifted from Gaza,” he said. “It’s not reasonable that every now and then Israel decides to level Gaza to the ground, and then we decide to sit down and talk about it after it is done. On the Israeli part, they want to stop the missiles from one side. How is that?”


He added: “If they stop the aircraft from shooting, Hamas will then stop its missiles. But violence couldn’t be stopped from one side.”


Hamas’s aggressive stance in the cease-fire talks is the first test of the group’s belief that the Arab Spring and the rise in Islamist influence around the region have strengthened its political hand, both against Israel and against Hamas’s Palestinian rivals, who now control the West Bank with Western backing.


It also puts intense new pressure on President Mohamed Morsi of Egypt, a former leader of the Muslim Brotherhood who was known for his fiery speeches defending Hamas and denouncing Israel. Mr. Morsi must now balance the conflicting demands of an Egyptian public that is deeply sympathetic to Hamas and the Palestinian cause against Western pleadings to help broker a peace and Egypt’s need for regional stability to help revive its moribund economy.


Indeed, the Egyptian-led cease-fire talks illustrate the diverging paths of the Muslim Brotherhood and Hamas, a Palestinian offshoot of the original Egyptian Islamist group. Hamas has evolved into a more militant insurgency and is labeled a terrorist organization by the United States and Israel, while the Brotherhood has effectively become Egypt’s ruling party. Mr. Fahmy said in an interview in March that the Brotherhood’s new responsibilities required a step back from its ideological cousins in Hamas, and even a new push to persuade the group to compromise.


Reporting was contributed by Ethan Bronner, Irit Pazner Garshowitz and Isabel Kershner from Jerusalem, and Peter Baker from Bangkok.



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Cisco to buy cloud-networking start-up Meraki for $1.2 billion
















(Reuters) – Networking equipment company Cisco Systems Inc said it will buy privately held cloud networking company Meraki for $ 1.2 billion in cash as part of its cloud and networking strategy.


Cisco said the acquisition of Meraki, which was founded in 2006 by members of MIT’s Laboratory for Computer Science, is expected to close in the second quarter of Cisco’s 2013 fiscal year and is subject to regulatory approval.













Cisco’s second quarter runs until the end of January.


Meraki – funded by Sequoia Capital and Google Inc – offers Wi-Fi technology, switching, security and mobile device management from the cloud with a focus on mid-sized businesses.


“This is a very logical move for Cisco,” said ZK research analyst Zeus Kerravala.


He said the deal will allow Cisco to offer alternative solutions to traditional Wi-Fi deployment models like smaller competitors, such as Aruba Networks and Ruckus Wireless, which debuted on Friday.


“Cisco didn’t really have anything to counter that before,” Kerravala noted.


Meraki’s Chief Executive Sanjit Biswas said in a letter to employees posted on the company website that Cisco had approached the company several weeks ago.


The company’s founders had at first rejected the offer in favor of continuing Meraki’s strategy aimed at an initial public listing.


“After several weeks of consideration, we decided late last week that joining Cisco was the right path for Meraki,” Biswas said.


He also said that Meraki had achieved a $ 100 million bookings run rate, grown to 330 employees and had a positive cash flow.


(Reporting by Nicola Leske, editing by Gary Crosse)


Tech News Headlines – Yahoo! News



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Justin Bieber Brings His Mom to the American Music Awards















11/18/2012 at 09:35 PM EST







Pattie Mallette and Justin Bieber


Jonathan Alcorn/Reuters/Landov


Mother knows best!

Despite his recent split from Selena Gomez, Justin Bieber still had a date for the 40th American Music Awards on Sunday: his mother, Pattie Mallette.

Malette – who recently penned Nowhere But Up: The Story of Justin Bieber's Mom – looked thrilled to pose for photographs with her son.

When Bieber won the first award of the night, for favorite pop/rock male artist, his proud mother, 38, beamed.

"I want to say this is for all the haters who thought I was just here for one or two years. I feel like I'm going to be here for a very long time," the singer said as he accepted the award.

The award was a highlight during a rocky week for Bieber, who on Friday reunited with Gomez, 20, for dinner at a Japanese restaurant in Los Angeles. But just five minutes after entering the restaurant, the couple emerged with Gomez looking visibly "mad," says a source.

Later that night, Bieber Tweeted "Things aren't always easy. there is a lot of pressure. im figuring it all out. im trying. but i care, i notice, i still hear u. #Beliebers."

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EU drug regulator OKs Novartis' meningitis B shot

LONDON (AP) — Europe's top drug regulator has recommended approval for the first vaccine against meningitis B, made by Novartis AG.

There are five types of bacterial meningitis. While vaccines exist to protect against the other four, none has previously been licensed for type B meningitis. In Europe, type B is the most common, causing 3,000 to 5,000 cases every year.

Meningitis mainly affects infants and children. It kills about 8 percent of patients and leaves others with lifelong consequences such as brain damage.

In a statement on Friday, Andrin Oswald of Novartis said he is "proud of the major advance" the company has made in developing its vaccine Bexsero. It is aimed at children over two months of age, and Novartis is hoping countries will include the shot among the routine ones for childhood diseases such as measles.

Novartis said the immunization has had side effects such as fever and redness at the injection site.

Recommendations from the European Medicines Agency are usually adopted by the European Commission. Novartis also is seeking to test the vaccine in the U.S.

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Asian shares rise on US fiscal hopes

TOKYO (Reuters) - Asian shares rose on Monday, supported by hopes U.S. politicians can overcome an imminent fiscal crunch while the yen fell to a near seven-month low against the dollar on expectations a new government chosen in next month's election could pump large amounts of stimulus cash into the economy.


A 0.2 percent gain in U.S. stock futures point to a firm Wall Street open, and financial spreadbetters predict London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> will open as much as 0.9 percent higher. <.l><.eu><.n/>


MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> rose 0.5 percent, recovering from Friday's nine-week low.


Its energy sector <.miapjen00pus> outperformed as mounting supply concerns on escalating tension from Israeli air strikes on the Gaza Strip and Hamas rocket attacks on Israel underpinned oil prices.


The materials sector <.miapjmt00pus> was among top gainers as London copper rallied 1 percent to $7,684 a tonne on a renewed growth outlook for China and hopes for a solution to the U.S. fiscal cliff.


Australian shares <.axjo> climbed 0.6 percent but Shanghai shares <.ssec> underperformed with a 0.5 percent drop, having earlier touched levels not seen since early 2009.


"We had some positive leads from the U.S. on Friday. Our market had been underperforming last week," Peter Esho, chief market analyst at City Index, said of Australian equities. "There's some hope that the negotiations in the U.S. around the fiscal situation may somewhat improve - the prospects around that may improve this week."


Japan's Nikkei average <.n225>, which bucked the broad Asian downtrend on Friday and surged 2.2 percent, extended gains with a 1.4 percent climb to close at a two-month high. <.t/>


Speculation that the leader of the opposition Liberal Democratic Party, which is expected to win the December 16 elections, will call for more stimulus including further aggressive easing by the Bank of Japan also undermined the yen.


The BOJ begins a two-day policy meeting on Monday, and is expected to refrain from taking fresh policy steps.


The dollar hit a near seven-month high against the yen at 81.59 yen on Monday. A weaker yen helps support the economy and boosts sentiment for Japanese equities investors.


A senior trader at a foreign bank said investors had been underweight Japanese equities and the rally could have further to go as they start to put their money into Japan, advising investors to cover their positions in very heavily short-sold sectors such as electronics.


FISCAL CLIFF, GREECE EYED


Aside from Japanese politics, market players closely watched negotiations among U.S. Congressional leaders to avoid a budget crisis, and prepared for European officials' meeting on Tuesday to discuss aid for debt-stricken Greece.


Hope that U.S. politicians would find a way to steer clear of the "fiscal cliff" boosted U.S. stocks on Friday. European shares sank to a 3-1/2-month closing low, for their worst week since the end of May, on persistent concerns over U.S. fiscal policy and the euro zone debt crisis.


Top lawmakers from both major U.S. political parties on Friday hinted at the possibility of a budget compromise that involves spending cuts and additional revenue, although they were short on details.


"The good news is the tone of Friday's White House meeting but the prospect of no agreement until at least mid-December fits our view that the two sides are starting negotiations from rather distant points," Sean Callow, senior currency strategist at Westpac bank in Sydney, said in a note.


"As such, there will be plenty of negative headlines in coming weeks that weigh on Treasury yields and boost USD, which is yet again trading like a safe haven even when the bad news is generated by the US."


The dollar fell 0.2 percent, retreating from the two-month high of 81.455 hit on Friday against a basket of key currencies <.dxy>. The drop in the dollar supported gold, which added 0.5 percent to $1,721.60 an ounce.


The euro rose 0.1 percent to $1.2760, with traders waiting to know whether euro zone finance ministers and International Monetary Fund Managing Director Christine Lagarde would agree a way to make Greece's debt manageable.


"As the EU prepares a bundled aid package to avert a Greek default, headlines coming out of the meeting may fuel a relief rally in the euro, but we will maintain our bearish forecast for the single currency as the region faces a deepening recession," said David Song, currency analyst at DailyFX.


U.S. crude futures jumped 1 percent to 87.81 a barrel and Brent rose 0.7 percent to $109.70.


Asian credit market spreads on the iTraxx Asia ex-Japan investment-grade index were little changed.


(Additional reporting by Thuy Ong and; Ian Chua in Sydney, Dominic Lau in Tokyo; Editing by Eric Meijer)


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Israel Broadens Its Bombing in Gaza to Include Government Sites


Tyler Hicks/The New York Times


A man injured by bombing in the Zaitoun neighborhood of Gaza City on Saturday that also killed one person.







GAZA CITY — Israel pressed its assault on the Gaza Strip early Sunday, deploying warplanes and naval vessels to pummel the coastal enclave a day after Israeli forces widened the onslaught from mostly military targets to centers of government infrastructure including the four-story headquarters of the Hamas prime minister.




The crash of explosions pierced the Gaza City quiet several times throughout the early morning, with one attack injuring several journalists at a communications building, witnesses said. A rocket fired from Gaza ploughed through the roof of an apartment building in the southern Israeli city of Ashkelon but there were no immediate reports of casualties there.


Palestinian news agencies reported that two children were killed in a predawn strike on Sunday in Beit Lahiya in northern Gaza. The Israeli military said it had “targeted dozens of underground launchers” overnight and also hit what it called a Hamas training base and command center. The Israeli Navy “targeted terror sites on the northern Gaza shore line,” the statement said, in repeated rounds of multiple missiles that could be easily heard.


The attacks continued despite talks in Cairo that Egyptian President Mohammed Morsi said Saturday night he thought could soon result in a ceasefire. Prime Minister Benjamin Netanyahu said he would consider a comprehensive ceasefire if the launches from Gaza stop.


The attack on office of Prime Minister Ismail Haniya, one of several on government installations, came a day after he hosted his Egyptian counterpart in that very building on Friday, a sign of Hamas’s new legitimacy in a radically redrawn Arab world. That stature was underscored Saturday by a visit to Gaza from the Tunisian foreign minister and the rapid convergence in Cairo of two Hamas allies, the prime minister of Turkey and the crown prince of Qatar, for talks with the Egyptian president and the chairman of Hamas on a possible cease-fire.


But as the fighting entered its fifth day, with Israel continuing preparations for a ground invasion, the conflict showed no sign of abating.


On Saturday, Gaza militants again fired long-range missiles at Tel Aviv, among nearly 60 that soared into Israel during the course of the say. Israel said it hit more than 200 targets overnight Friday to Saturday in Gaza, and continued with afternoon strikes on the home of a Hamas commander and on a motorcycle-riding militant.


The White House reiterated its strong support for Israel. Ben Rhodes, the deputy national security adviser, described rocket fire from Gaza as “the precipitating factor for the conflict.”


“We believe Israel has a right to defend itself, and they’ll make their own decisions about the tactics that they use in that regard,” Mr. Rhodes told reporters on Air Force One en route to Asia.


Hamas health officials said Saturday that 45 Palestinians had been killed and 385 wounded since Wednesday’s escalation in the cross-border battle. In Israel, 3 Israeli civilians have died and 63 have been injured. Four soldiers were also wounded on Saturday.


Two rockets were fired at Tel Aviv on Saturday. One landed harmlessly, probably at sea. The other was intercepted by the Iron Dome defense system in the sky above the city. An Iron Dome antimissile battery had been hastily deployed near the city on Saturday in response to the threat of longer-range rockets.


Since Wednesday, Iron Dome has knocked 245 rockets out of the sky, the military said, while 500 have struck Israel. The American-financed system is designed to intercept only rockets streaking toward towns and cities and to ignore those likely to strike open ground.


There have been failures — on Saturday a rocket crashed into an apartment block in the southern port city of Ashdod, injuring five people — but officials have put its success rate at 90 percent.


Analysts said there is no clear end to the conflict in sight, since Israel neither wants to re-engage in Gaza nor to eliminate Hamas and leave the territory to the chaos of more militant factions.


“Ultimately,” said Efraim Halevy, a former chief of Israel’s intelligence service, “both sides want Hamas to remain in control, strange as it sounds.”


But Mkhaimar Abusada, a political science professor at Al Azhar University here, cautioned that “there is no military solution to the Gaza problem.”


“There has to be a political settlement at the end of this,” he said. “Without that, this conflict is just going to go on and on.”


Jodi Rudoren reported from Gaza City, and Isabel Kershner from Jerusalem. Reporting was contributed by Fares Akram and Tyler Hicks from the Gaza Strip, Carol Sutherland and Iritz Pazner Garshowitz from Jerusalem, and David D. Kirkpatrick and Mayy El Sheikh from Cairo.



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