Global shares, oil slip on Fed stimulus nerves

LONDON (Reuters) - World shares edged lower and the dollar rose before U.S. jobs data on Friday which investors will watch even more closely than usual after Fed officials raised concerns about possible side effects of its stimulus program.

Minutes from the Federal Reserve's December policy meeting unsettled financial markets on Thursday after they showed some policymakers were worried about the program's longer-term impact.

Fed bond-buying has underpinned appetite for risk and the comments reopened debate on how much longer the central bank will keep stimulating the U.S. economy, unnerving investors before the U.S. employment figures.

European shares echoed their Asian peers to edge lower. But following a sharp jump on Wednesday after the United States edged back from the "fiscal cliff" budget crisis, they were on track for weekly gains of almost 2.7 percent.

Tentative signs that the euro zone economy may have passed the worst of its downturn also helped to restrict the moves.

Markit's Euro zone Composite PMI, which gauges business activity across thousands of the region's companies, rose in December to 47.2 from 46.5 in November - below the 50 line which divides growth from contraction but at its highest level since March last year.

"The surveys at least bring some substance to the belief that the worst is over and that a return to growth is in sight for the region in 2013," said Chris Williamson, chief economist at Markit.

London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> were down 0.1-0.5 percent by mid-morning, while the MSCI index of world shares was just over 0.2 percent lower at 345.85.

Wall Street was expected to open slightly higher though, with S&P 500 futures up 0.1 percent and contracts for the Dow Jones and the Nasdaq 100 up 0.2 percent.

U.S. stocks will largely depend on the non-farm payrolls report due at 8:30 a.m. ET and any clues it gives on the health of the U.S. and global economies.

Analysts polled by Reuters expect a 150,000 rise in jobs, with unemployment holding steady at 7.7 percent. However, after a better-than-expected ADP employment report on Thursday, many may now be betting on an above-consensus jobs number.

"The Fed has made it clear that it will keep policy loose until unemployment drops to 6.5 percent or below, so strong jobs data will undoubtedly raise expectations of a more hawkish Fed," analysts at Tradition brokerage said in a note.

CORE WEAKNESS

The Fed's concerns about the longer-term impact of its policies gave fresh momentum to the recent slide by low-risk bonds including U.S. and German debt.

Bund futures slipped almost half a point to 143.12, having already fallen steeply from last week's close of 145.64.

Benchmark U.S. Treasury yields continued their climb, hitting an eight-month high of 1.96 percent, while in Asia, 10-year Japanese government bond yields touched a 3-1/2-month high of 0.83 percent.

In the currency market, the dollar hit its highest level against the yen since July 2010 at 87.835 while the euro fell to a three-week low of $1.3006. The dollar <.dxy> also touched a six-week high against a basket of currencies.

"We have seen quite a broad-based dollar rally after the minutes which has ignited a fresh debate about how much liquidity the Fed is going to pump into the economy," said Daragh Maher, FX strategist at HSBC.

The yen has fallen in recent weeks as investors bet the new government will push the Bank of Japan to weaken the currency by implementing aggressive economic stimulus.

"Breaking through 88 in dollar/yen is a significant move. It was a target for a number of people in the market and the question is now whether we have a mindset of taking profit or we look to extend," added Maher.

The dollar's recent climb makes dollar-based assets more expensive for non-dollar investors and this hit precious metals and oil.

Brent crude shed 0.6 percent to $111.47 a barrel while gold fell 1 percent to $1,645, dragging silver down more than 2 percent to $29.48.

(Additional reporting by William James and Anooja Debnath; editing by David Stamp)

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Microsoft acquires start-up id8: source

SAN FRANCISCO (Reuters) – Microsoft Corp bought start-up id8 Group R2 Studios Inc as it looks to expand further in technology focused on the home and entertainment, a person familiar with the situation said on Wednesday.

id8 Group R2 Studios was started in 2011 by Silicon Valley entrepreneur and investor Blake Krikorian. It recently launched a Google Android application to allow users to control home heating and lighting systems from smartphones.

Krikorian’s Sling Media – which was sold to EchoStar Communications in 2007 – made the “Slingbox” for watching TV on computers.

Krikorian will join Microsoft with a small team, according to the Wall Street Journal, which reported the acquisition earlier on Wednesday. Microsoft also purchased some patents owned by the start-up related to controlling electronic devices, the newspaper added.

Krikorian and a Microsoft spokesman declined to comment.

Krikorian resigned from Amazon.com Inc’s board in late December after about a year and a half as a director at the company, the Internet’s largest retailer.

(Reporting By Alistair Barr; Editing by Steve Orlofsky)

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Depardieu, in Tax Fight, Gets Russian Citizenship

MOSCOW (AP) — Gerard Depardieu, the French actor who has waged a battle against a proposed super-tax on millionaires in his native country, has been granted Russian citizenship.

A brief announcement on the Kremlin website revealed that President Vladimir Putin signed the citizenship grant on Thursday.

A representative for the former Oscar nominee declined to say whether he had accepted the offer and refused all comment. Thursday was a holiday in Russia and officials from the Federal Tax Service and Federal Migration Service could not be reached for comment on whether the decision would require Depardieu to have a residence in Russia.

Depardieu has been vocal in his opposition to French President Francois Hollande's plans to raise the tax on earned income above €1 million ($1.33 million) to 75 percent from the current high of 41 percent. France's debt burden is around 90 percent of national income — not far off levels that have caused problems elsewhere in the 17-country eurozone. In contrast to the proposed top French rate, Russia has a flat 13 percent tax on income.

"I have never killed anyone, I don't think I've been unworthy, I've paid €145 million in taxes over 45 years," Depardieu wrote in an open letter to Prime Minister Jean-Marc Ayrault, who then called the actor "pathetic."

"I will neither complain nor brag, but I refuse to be called 'pathetic," Depardieu subsequently said.

Depardieu said in his letter that he would surrender his passport and French social security card. In October, the mayor of a small Belgian border town announced that Depardieu had bought a house and set up legal residence there, a move that was slammed by the newly-elected Socialist government.

Though the two-year tax was struck down by France's highest court Dec. 29, the government has promised to resubmit the law in a slightly different form soon. On Wednesday it estimated that the court decision to overturn the tax would cost it €210 million in 2013.

Depardieu has made more than 150 films, among them the 1991 comedy "Green Card" about a man who enters into a marriage of convenience in order to get U.S. residency. Most famously, Depardieu was nominated for an Academy Award for his role as Cyrano de Bergerac in the 1990 film by the same name.

The Kremlin statement gave no information on why Putin made the citizenship grant, but the Russian president did express sympathy with the actor in December, days after Depardieu reportedly said he was considering Russian citizenship.

"As we say, artists are easily offended and therefore I understand the feelings of Mr. Depardieu," Putin said.

Although France and Russia disagree sharply about how to resolve the civil war in Syria, the two countries have strong commercial relations. In 2011, Russia signed a contract worth more than €1 billion ($1.33 billion) Friday to buy two French warships — the largest military deal between a NATO country and Moscow.

Depardieu is well known in Russia, where he appears in an ad for Sovietsky Bank's credit card and is prominently featured on the bank's home page.

Depardieu is not the only high-profile Frenchman to object to the super-tax. Bernard Arnault — chief of the luxury goods and fashion giant LVMH and worth an estimated $41 billion — has also said he would leave for Belgium.

France's Civil Code says one must have another nationality in order to give up French citizenship because it is forbidden to be stateless. Thursday's decision by the Kremlin appears to fulfill that requirement.

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Hinnant contributed from Paris.

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Hillary Clinton Recuperating at Home

By Stephen M. Silverman

01/03/2013 at 06:30 AM EST

The state of the Secretary of State has improved.

Hillary Rodham Clinton was discharged from New York Presbyterian/Columbia Hospital in Manhattan on Wednesday after checking in on Sunday for treatment of a blood clot in a vein in her head.

News photos showed the secretary, 65, leaving the facility with her husband, former President Bill Clinton, and daughter Chelsea. It is reported that she is now resting at the Clinton home in Chappaqua, N.Y.

"Her medical team advised her that she is making good progress on all fronts, and they are confident she will make a full recovery," Philippe Reines, a senior adviser to the secretary, said in a statement.

On Wednesday, Chelsea Clinton Tweeted, "Thank you to the doctors, nurses & staff at NewYork Presbyterian Hospital Columbia University Medical Center for taking great care of my Mom."

The New York Times quotes Dr. David J. Langer, a brain surgeon and associate professor at Hofstra North Shore-LIJ School of Medicine – and who is not involved in Clinton's treatment – as saying she will require close monitoring in the coming months to ensure she is on the proper doses of blood thinners and that the clot is not growing.

The blood clot was found in the space between her brain and skull behind the right ear during an exam related to a concussion Clinton sustained during a fall earlier last month in her Washington, D.C., home.

The series of health setbacks prevented Clinton from appearing at a Congress probe about the State Department's handling of the fatal attack on an American mission in Libya or attending President Obama's announcement that Senator John Kerry is his pick to serve as her successor when she soon steps down from her cabinet post.

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Flu? Malaria? Disease forecasters look to the sky

NEW YORK (AP) — Only a 10 percent chance of showers today, but a 70 percent chance of flu next month.

That's the kind of forecasting health scientists are trying to move toward, as they increasingly include weather data in their attempts to predict disease outbreaks.

In one recent study, two scientists reported they could predict — more than seven weeks in advance — when flu season was going to peak in New York City. Theirs was just the latest in a growing wave of computer models that factor in rainfall, temperature or other weather conditions to forecast disease.

Health officials are excited by this kind of work and the idea that it could be used to fine-tune vaccination campaigns or other disease prevention efforts.

At the same time, experts note that outbreaks are influenced as much, or more, by human behavior and other factors as by the weather. Some argue weather-based outbreak predictions still have a long way to go. And when government health officials warned in early December that flu season seemed to be off to an early start, they said there was no evidence it was driven by the weather.

This disease-forecasting concept is not new: Scientists have been working on mathematical models to predict outbreaks for decades and have long factored in the weather. They have known, for example, that temperature and rainfall affect the breeding of mosquitoes that carry malaria, West Nile virus and other dangerous diseases.

Recent improvements in weather-tracking have helped, including satellite technology and more sophisticated computer data processing.

As a result, "in the last five years or so, there's been quite an improvement and acceleration" in weather-focused disease modeling, said Ira Longini, a University of Florida biostatistician who's worked on outbreak prediction projects.

Some models have been labeled successes.

In the United States, researchers at Johns Hopkins University and the University of New Mexico tried to predict outbreaks of hantavirus in the late 1990s. They used rain and snow data and other information to study patterns of plant growth that attract rodents. People catch the disease from the droppings of infected rodents.

"We predicted what would happen later that year," said Gregory Glass, a Johns Hopkins researcher who worked on the project.

More recently, in east Africa, satellites have been used to predict rainfall by measuring sea-surface temperatures and cloud density. That's been used to generate "risk maps" for Rift Valley fever — a virus that spreads from animals to people and in severe cases can cause blindness or death. Researchers have said the system in some cases has given two to six weeks advance warning.

Last year, other researchers using satellite data in east Africa said they found that a small change in average temperature was a warning sign cholera cases would double within four months.

"We are getting very close to developing a viable forecasting system" against cholera that can help health officials in African countries ramp up emergency vaccinations and other efforts, said a statement by one of the authors, Rita Reyburn of the International Vaccine Institute in Seoul, South Korea.

Some diseases are hard to forecast, such as West Nile virus. Last year, the U.S. suffered one of its worst years since the virus arrived in 1999. There were more than 2,600 serious illnesses and nearly 240 deaths.

Officials said the mild winter, early spring and very hot summer helped spur mosquito breeding and the spread of the virus. But the danger wasn't spread uniformly. In Texas, the Dallas area was particularly hard-hit, while other places, including some with similar weather patterns and the same type of mosquitoes, were not as affected.

"Why Dallas, and not areas with similar ecological conditions? We don't really know," said Roger Nasci of the Centers for Disease Control and Prevention. He is chief of the CDC branch that tracks insect-borne viruses.

Some think flu lends itself to outbreak forecasting — there's already a predictability to the annual winter flu season. But that's been tricky, too.

Seasonal flu reports come from doctors' offices, but those show the disease when it's already spreading. Some researchers have studied tweets on Twitter and searches on Google, but their work has offered a jump of only a week or two on traditional methods.

In the study of New York City flu cases published last month in the Proceedings of the National Academy of Sciences, the authors said they could forecast, by up to seven weeks, the peak of flu season.

They designed a model based on weather and flu data from past years, 2003-09. In part, their design was based on earlier studies that found flu virus spreads better when the air is dry and turns colder. They made calculations based on humidity readings and on Google Flu Trends, which tracks how many people are searching each day for information on flu-related topics (often because they're beginning to feel ill).

Using that model, they hope to try real-time predictions as early as next year, said Jeffrey Shaman of Columbia University, who led the work.

"It's certainly exciting," said Lyn Finelli, the CDC's flu surveillance chief. She said the CDC supports Shaman's work, but agency officials are eager to see follow-up studies showing the model can predict flu trends in places different from New York, like Miami.

Despite the optimism by some, Dr. Edward Ryan, a Harvard University professor of immunology and infectious diseases, is cautious about weather-based prediction models. "I'm not sure any of them are ready for prime time," he said.

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Global share rally stalls as more U.S. budget battles loom

LONDON (Reuters) - A global share market rally petered out on Thursday as investors focused on U.S. political battles ahead over spending cuts, halting the gains that followed a deal to avoid sharp tax hikes.

The MSCI world equity index <.miwd00000pus> dipped from an 18-month high to be down 0.1 percent at 346.7 points while other riskier assets such as oil and the euro also eased.

The main share indexes in Germany <.gdaxi>, Britain <.ftse> and France <.fchi> were down 0.1 to 0.4 percent, having hit multi-month highs on Wednesday when relief swept the markets after U.S. lawmakers reached a deal to prevent a fiscal crunch.

But President Barack Obama and congressional Republicans face two more months of tough talks on spending cuts and an increase in the nation's debt limit as the hard-fought deal to avert the so called "fiscal cliff" covered only taxes and delayed decisions on expenditure until March 1.

"Of the three key issues - tax increases, spending cuts and the debt ceiling - policymakers have tackled just one," said Mouhammed Choukeir, chief investment officer at Kleinwort Benson.

"The fiscal cliff issue is unresolved. This is likely to increase market volatility, supporting safe-haven assets such as gold and some commodities," he said. "Paradoxically, as the U.S. debt and deficit issues continue to make investors jittery, the dollar can be expected to remain a safe-haven asset."

The dollar was up 0.3 percent <.dxy> against a basket of major currencies at a three-week high on Thursday, although it slipped 0.2 percent against the yen to 87.14.

The euro, which had touched an 8-1/2 month high against the dollar on Wednesday, was down was down 0.2 percent at $1.3162,.

"The reality is that budget talks will continue for the next two months and could get sour," said Jane Foley, senior currency strategist at Rabobank. "We see the dollar index reclaiming some ground."

The dollar's strength and profit-taking pushed oil prices lower, with Brent crude slipping 0.4 percent to $112 a barrel and U.S. crude futures down 45 cents to $92.67.

"After the initial excitement, reality sets in," said Victor Shum, oil consultant at IHS Purvin & Gertz. "There will be other negotiations and the (U.S.) deal is a compromise."

Gold was firm, holding near its highest level in two weeks hit on Wednesday in the wake of the initial U.S. fiscal deal. Spot gold was trading at $1,687.70 an ounce, up $1.35.

The precious metal ended 2012 with gains of around 7 percent - the 12th straight annual rise, and marking one of the longest bull runs for a commodity.

GROWTH OUTLOOK BRIGHTENS

Thursday's retreat across riskier asset markets might have been sharper but for data showing activity in China's services sector and at U.S. factories had expanded in December, brightening the outlook for global growth.

China's official purchasing managers' index (PMI) for the non-manufacturing sector rose to a four-month high in December, adding to signs of a revival in the world's second-largest economy.

Investors will now turn their attention to the December U.S. employment report on Friday. This is expected to show modest job growth of around 150,000 compared with 146,000 in November.

(Additional reporting by Anooja Debnath.; editing by David Stamp)

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Barack Obama’s AMA is Reddit’s Top Post of 2012

Do you remember that Barack Obama AMA on Reddit this past August? The one that started with “Hi, I’m Barack Obama, President of the United States. Ask me anything.”

That was Reddit’s top post of 2012 with 5,598,171 page views. Reddit compiled a list of it’s top posts of the year we just said farewell to.

[More from Mashable: This Is 2012 Summed Up in One Image]

The site also handed out some “best of” awards along with a few other tidbits of info. To see if your favorite post ranked, check out the video above.

BONUS: 20 Silliest Questions Posed to Obama in reddit AMA

1. Star Trek vs Star Wars

[More from Mashable: Dying Trekkie Gets Private ‘Into Darkness’ Screening]

Click here to view this gallery.

This story originally published on Mashable here.

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Letter from India: City Setting, but Village Mentalities

NEW DELHI — India is essentially a village, and because it is a village it is a woman’s ancient foe. Even the country’s apparent cities are overwhelmed by deep and enduring infestations of rural tradition and the fellowships of the conservatives who hold women in low esteem. The Parliament and legislative assemblies are largely confederations of village headmen.

The most ardent fan of the Indian village was Mohandas K. Gandhi, who said, probably with joy, “The soul of India lives in its villages.”

That is true even now, but the village is also at the heart of most of India’s social problems. The most factual analysis of the Indian village was from a man who could not stand Gandhi — the primary author of the Indian Constitution and arguably the nation’s most underrated writer, B.R. Ambedkar, who wrote more than 60 years ago, “The love of the intellectual Indian for the village community is of course infinite, if not pathetic. … What is a village but a sink of localism, a den of ignorance, narrow mindedness and communalism?”

His view holds even today.

The Indian village is the most formidable preserve of caste hierarchies, and at the very bottom of its many social rungs is the woman. The city, for its part, attempts to dissolve everything that the village holds dear, especially its hierarchies, its “narrow mindedness” and its close scrutiny of women. All of India’s struggles for modernity have been about this — the battle of the idea of the city against the idea of the village. The latest uprising in India is a part of this tired war, even though at first glance it appears to be a society’s outrage at the rape and murder of a young woman in Delhi.

On the night of Dec. 16, a 23-year-old student was raped and brutalized for nearly an hour in a moving bus in Delhi by six drunken men, and thrown out of the vehicle. She battled for her life for nearly two weeks before succumbing to complications arising from severe injuries. India reacted to the rape and eventually to her death in a profound way. How it reacted became an accidental survey of the many psychological states of urban India, which included, inexorably, the city’s contempt for the village.

What happened to this young woman could have happened anywhere in the world, and such crimes have indeed occurred even in some of the most affluent nations. But nowhere else in the world did such an event set off an urban middle-class movement across several cities against the government. The protesters slammed the government for its failure to make Delhi and other Indian cities safe for women.

But, largely, the demonstrations were a lament of the city against a nation that has, going by the statements of politicians and policemen in the past, blamed attacks on women on the women’s own modernity.

The placards, which were mostly in English, of the women who marched in Delhi in protest, carried statements like these: “Just because I show my legs, it does not mean I will spread them for you,” “Don’t tell me how to dress, tell them not to rape,” and “My body, my right. My city, my right.”

In numerous television chat shows and articles, women accused the very core of India for their daily humiliations. The phrase “feudal structure” was used several times to describe a rural Indian society where men perceive rape as a way of showing a woman her place and how such men carry that perception with them when they migrate to the cities.

If the idea of a city, as evident in the world’s greatest cities, is the very opposite of the reality of an Indian village, if a city is supposed to be a liberal, broad-minded place that is a young woman’s best friend, then does India truly have even a single city?

Mumbai alone appears to come close, but it is today a decaying city run by rustics. Politicians and policemen whose morality seems chiefly to concern the sexual and drinking habits of unmarried women express their alarm now and then. In Mumbai’s bars, under an old law that until the past year was largely unenforced, you actually need a permit to consume alcohol. And a portion of the city’s beautiful southern tip by the Arabian Sea has become an almost exclusive peninsula for fundamentalist vegetarians who have somehow ensured that it is hard for anyone to find meat or even eggs in their neighborhood.

Eight years ago, the hotelier Sanjay Narang told me that when he defied them and opened a nonvegetarian restaurant in the area, in the ground floor of a residential building, angry residents of the building stood in their balconies and spat on the patrons. He soon had to shut down.

As for the city’s reputation as being safe for women, according to several of its women, this is an exaggeration, or at best a relative virtue.

Why does India not have real cities? Because cities require a critical mass of liberal people, or at least its elite, to be somewhat independent — free of their cultural, familial and communal roots, whereas it is the nature of the average Indian to be dependent on a network of his own kind, to deepen his roots and marinate in too many value judgments about other people.

Manu Joseph is editor of the Indian newsweekly Open and author of the novel “The Illicit Happiness of Other People.”

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Jessica Simpson and Kendall & Kylie Jenner Make Readers Smile - and Frown

01/01/2013 at 07:00 PM EST

Splash News Online; Michael Simon/Startraks

What's on the minds of PEOPLE readers this week? We love getting your feedback, and as always, you weighed in – even while celebrating during the holidays – with plenty of reactions to all of our stories.

From Kelly Osbourne's dramatic weight loss to Jessica Simpson's happy baby news to the tragic death of hero surfer Dylan Smith in Puerto Rico, readers responded to what made them happy, what made them laugh out loud and what made them sad this week.

Check out the articles with the top reactions on the site this week, and keep clicking on the emoticons at the bottom of every story to tell us what you think!

Kelly Osbourne says loving herself was the key to her 60-lb. weight loss. She had to get to a place where she respected herself enough to take care of her health – and she emerged a fierce style star who is not afraid to rock a bikini.

Jessica Simpson became a new mom just 8 months ago – so the news that she's expecting baby No. 2 with fiancé Eric Johnson made readers say, "Wow!"

Reality stars Kendall and Kylie Jenner showed off expensive Christmas gifts on Instagram, and their pricey public display turned many readers off. From a pair of Louboutin spike heels to Balenciaga boots with a more than $1,000 price tag, the teens cleaned up with lavish presents that most could only dream about.

Dylan Smith captured our hearts with his heroic efforts during Superstorm Sandy, saving six people on his surfboard. But the Queens, N.Y., lifeguard, 23, who was named one of PEOPLE's Heroes of the Year, drowned on Dec. 24 in a surfing accident off Puerto Rico.

Does the idea of Tom Cruise dating a new woman make you laugh? Maybe. A story that falsely linked the actor romantically to a 26-year-old restaurant manager, had readers clicking LOL. Or maybe the funny part was this quote from a source, who told told PEOPLE: "He's single and will be talking to women – all of whom he won't be instantly dating."

Check back next week for another must-read roundup, and see what readers are reacting to every day here.

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Brain image study: Fructose may spur overeating

This is your brain on sugar — for real. Scientists have used imaging tests to show for the first time that fructose, a sugar that saturates the American diet, can trigger brain changes that may lead to overeating.

After drinking a fructose beverage, the brain doesn't register the feeling of being full as it does when simple glucose is consumed, researchers found.

It's a small study and does not prove that fructose or its relative, high-fructose corn syrup, can cause obesity, but experts say it adds evidence they may play a role. These sugars often are added to processed foods and beverages, and consumption has risen dramatically since the 1970s along with obesity. A third of U.S. children and teens and more than two-thirds of adults are obese or overweight.

All sugars are not equal — even though they contain the same amount of calories — because they are metabolized differently in the body. Table sugar is sucrose, which is half fructose, half glucose. High-fructose corn syrup is 55 percent fructose and 45 percent glucose. Some nutrition experts say this sweetener may pose special risks, but others and the industry reject that claim. And doctors say we eat too much sugar in all forms.

For the study, scientists used magnetic resonance imaging, or MRI, scans to track blood flow in the brain in 20 young, normal-weight people before and after they had drinks containing glucose or fructose in two sessions several weeks apart.

Scans showed that drinking glucose "turns off or suppresses the activity of areas of the brain that are critical for reward and desire for food," said one study leader, Yale University endocrinologist Dr. Robert Sherwin. With fructose, "we don't see those changes," he said. "As a result, the desire to eat continues — it isn't turned off."

What's convincing, said Dr. Jonathan Purnell, an endocrinologist at Oregon Health & Science University, is that the imaging results mirrored how hungry the people said they felt, as well as what earlier studies found in animals.

"It implies that fructose, at least with regards to promoting food intake and weight gain, is a bad actor compared to glucose," said Purnell. He wrote a commentary that appears with the federally funded study in Wednesday's Journal of the American Medical Association.

Researchers now are testing obese people to see if they react the same way to fructose and glucose as the normal-weight people in this study did.

What to do? Cook more at home and limit processed foods containing fructose and high-fructose corn syrup, Purnell suggested. "Try to avoid the sugar-sweetened beverages. It doesn't mean you can't ever have them," but control their size and how often they are consumed, he said.

A second study in the journal suggests that only severe obesity carries a high death risk — and that a few extra pounds might even provide a survival advantage. However, independent experts say the methods are too flawed to make those claims.

The study comes from a federal researcher who drew controversy in 2005 with a report that found thin and normal-weight people had a slightly higher risk of death than those who were overweight. Many experts criticized that work, saying the researcher — Katherine Flegal of the Centers for Disease Control and Prevention — painted a misleading picture by including smokers and people with health problems ranging from cancer to heart disease. Those people tend to weigh less and therefore make pudgy people look healthy by comparison.

Flegal's new analysis bolsters her original one, by assessing nearly 100 other studies covering almost 2.9 million people around the world. She again concludes that very obese people had the highest risk of death but that overweight people had a 6 percent lower mortality rate than thinner people. She also concludes that mildly obese people had a death risk similar to that of normal-weight people.

Critics again have focused on her methods. This time, she included people too thin to fit what some consider to be normal weight, which could have taken in people emaciated by cancer or other diseases, as well as smokers with elevated risks of heart disease and cancer.

"Some portion of those thin people are actually sick, and sick people tend to die sooner," said Donald Berry, a biostatistician at the University of Texas MD Anderson Cancer Center in Houston.

The problems created by the study's inclusion of smokers and people with pre-existing illness "cannot be ignored," said Susan Gapstur, vice president of epidemiology for the American Cancer Society.

A third critic, Dr. Walter Willett of the Harvard School of Public Health, was blunter: "This is an even greater pile of rubbish" than the 2005 study, he said. Willett and others have done research since the 2005 study that found higher death risks from being overweight or obese.

Flegal defended her work. She noted that she used standard categories for weight classes. She said statistical adjustments were made for smokers, who were included to give a more real-world sample. She also said study participants were not in hospitals or hospices, making it unlikely that large numbers of sick people skewed the results.

"We still have to learn about obesity, including how best to measure it," Flegal's boss, CDC Director Dr. Thomas Frieden, said in a written statement. "However, it's clear that being obese is not healthy - it increases the risk of diabetes, heart disease, cancer, and many other health problems. Small, sustainable increases in physical activity and improvements in nutrition can lead to significant health improvements."

___

Online:

Obesity info: http://www.cdc.gov/obesity/data/trends.html

___

Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

Mike Stobbe can be followed at http://twitter.com/MikeStobbe

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