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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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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News Corp set to take 49 percent stake in Yankee channel: source

(Reuters) - Rupert Murdoch's News Corp is expected to announce this week that it will acquire a 49 stake in the YES Network from the New York Yankees baseball team and its partners, in a deal that would value the sports channel at $3 billion, a person with knowledge of the talks told Reuters.


The deal is structured to allow News Corp to eventually acquire control of the channel, which broadcasts Yankees baseball and Brooklyn Nets basketball games to 15 million subscribers, said the person, who spoke on condition of anonymity because the deal has not been announced.


News Corp will share in the profits, according to the New York Times, which first reported details of the agreement. News Corp will have an option to increase its stake to 80 percent in three to five years, the newspaper said, citing unidentified sources.


Yankee Global Enterprises, the parent company of the Yankees, owns 34 percent of YES. Another 40 percent is owned by Goldman Sachs and Providence Equity, with the remainder owned by former owners of the Nets.


A News Corp spokeswoman declined to comment. YES representatives were not immediately available for comment.


The deal would allow YES to raise the $2.99 monthly fee per subscriber it currently charges cable and satellite operators to carry the channel, said the person. News Corp would negotiate on its behalf with the operators as part of a larger package of sports channels.


News Corp, the media company that owns Fox Broadcasting and The Wall Street Journal, owns or holds stakes in 20 regional sports networks, providing sports programming to more than 67 million subscribers.


Initially, the Fox sports channels are not expected to provide local or national sports programming to YES, or to manage the channel, the person said. (Reporting By Ronald Grover and Liana Baker; Editing by Chris Gallagher)


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Girls, guns and yoga: John McAfee’s odd life in “pirate haven”
















SAN PEDRO, Belize (Reuters) – To the many people who crossed his path on a tropical island in Belize, it was apparent John McAfee’s life had taken some bizarre turns in the past few years.


The anti-virus software guru, who started McAfee Associates in 1989, has been in hiding since police said they wanted to question him about the weekend murder of his neighbor, fellow American Gregory Faull, with whom McAfee had quarreled.













Despite his disappearance, McAfee, 67, has remained in contact with the media, providing a stream of colorful bulletins over his predicament, state of mind and his claim that Belize’s authorities want to kill him.


Residents of the Caribbean island of Ambergris Caye and others who know him paint the picture of an eccentric, impulsive man who gave up a career as a successful entrepreneur in the United States for a life of semi-seclusion in the former pirate haven of Belize, surrounded by bodyguards and young women.


“Never mind the dog, beware of owner,” counsels a small sign, embellished with a sketched hand gripping a large pistol, tacked to the fence separating McAfee’s beachfront swimming pool from the pier that cuts into the azure sea.


McAfee, a yoga fan who has lived on the island for about four years, often moves around with bodyguards, wearing pistols in his belt. Since going into hiding, he has compared his lot to that of WikiLeaks founder Julian Assange, who is battling extradition from Britain from inside the Ecuadorean Embassy.


Officials suspect McAfee used designer drugs, and neighbors say he tried to chase them off the public beach in front of his house. Inside his home, a blue-roofed cottage complex, he kept a small arsenal of shotguns and scope-fitted rifles.


There were also complaints about the millionaire’s numerous and noisy dogs. Officials say the poisoning of four of the dogs may be linked to the murder of Faull, a 52-year-old Florida building contractor who was shot dead at his salmon-hued two-story villa about 100 yards (meters) down the beach from McAfee.


Faull was one of the locals who had complained about McAfee’s attitude and his dogs.


McAfee told Wired magazine, with whom he first kept up a running conversation, that he was disguised and holed up in what he describes as a lice-infested refuge. In comments to the magazine, McAfee denied he shot Faull and said he fears that the police will kill or torture him. Police, who believe he is still in Belize, say they just want to talk to him about the killing.


McAfee, who has not responded to requests for comment by Reuters, blamed Belize’s “pirate culture” for his troubles in an essay Wired said he had sent to the magazine.


“Belize is still a pirate haven and is run more or less along the lines established centuries ago by the likes of Captain Morgan, Blackbeard and Captain Barrow,” McAfee said.


Belize Prime Minister Dean Barrow has urged McAfee to help police with their inquiries, calling him “bonkers.”


In an interview with CNBC television by phone on Friday, McAfee said he would not seek refuge in the U.S. Embassy.


“What would happen? They will offer me either sanctuary where I will spend my days living in the embassy like poor Julian Assange or when I leave … I will be nabbed by the police. My ultimate goal is they’ll figure out who killed the man, it will have nothing to do with me and they will leave me alone. Or if enough international pressure is applied,” he said.


‘PARANOID’


Many locals in San Pedro describe the tattooed McAfee, who made a fortune developing the Internet anti-virus software that bears his name, as a generous but unstable man.


“He’s a good guy, he helped a lot of people. The problem was when he wanted something he wanted it right now. And when he didn’t get it, he’d get paranoid,” said one islander, a former McAfee employee, who like many people here spoke on condition their name not be used for fear of retribution.


“He’s a complex man, very impulsive,” the islander added.


Doug Singh, Belize’s former police minister, told Reuters he was at a loss to explain McAfee’s recent comments.


“Mr. McAfee seems to have a bit of a divorce from reality and it seems to be consistent in his behavior and some of the things he has said recently. He’s way out of line and out of proportion. Nobody has anything against Mr. McAfee,” Singh said.


After making millions with his anti-virus product, McAfee decided to abandon the United States for Belize, a languid coastal paradise. It is a path that has been taken by a number of rich Americans over the years.


He took a beachfront compound on the island’s isolated and exclusive north side, 6 miles from the town of San Pedro by boat or by driving over badly cratered asphalt and dirt track. It is a world away from California’s Silicon Valley, which he once called home.


He took the company public in 1992 and left two years later following accusations that he had hyped the arrival of a virus known as Michelangelo, which turned out to be a dud, to scare computer users into buying his company’s products.


Officials at the company he created and its parent, Intel, have declined to comment on the controversy.


But one long-time McAfee manager who recently left said company executives were likely monitoring the news closely. He said they have tracked reports of John McAfee’s activities over the years out of concern they might need to do damage control.


A case is already pending in Belize against McAfee for possession of illegal firearms, and police previously suspected him of running a lab to make illicit synthetic drugs.


But McAfee said this week he was opposed to drugs.


“My life is f—-d up enough without drugs, and always has been,” McAfee told Wired magazine.


BENEFACTOR


For all his trouble with authorities, McAfee has worked hard to be the island’s benefactor. Upon arriving in Belize he bought a $ 1 million boat for the country’s new coast guard, and donated equipment to the local police force, according to local reports.


He tipped generously everywhere he went, and hired a steady stream of taxis for frequent female guests on the $ 150 round trip from the small airstrip in San Pedro out to his house.


“Not two or three, a lot of women,” said Artemio Awayo, 24, a local waiter. “Every time I saw him it was a different woman.”


Those who knew him said he didn’t drink and never hung out at the island’s many bars. But employees at a restaurant near the pier where McAfee’s water taxi company is based said his actions grew more bizarre following a police raid last April on his mainland hacienda outside the town of Orange Walk.


Even for casual lunches, McAfee began regularly coming to town with at least two bodyguards, clad in camouflage and each packing pistols, they said.


“Generally, you don’t need a bodyguard in Belize,” said Jorge Alana, a San Pedro Sun reporter who interviewed McAfee several times, noting top elected officials don’t have them. “It does call attention when you move with so many guards.”


McAfee’s home is in a stretch of Ambergris where the wealthiest foreigners hole up. Raw lots of land 100 feet by 200 feet can cost up to $ 500,000 here. Even modest-looking houses reflect multimillion-dollar investments.


On Thursday afternoon, a 23-year-old calling herself Tiffany used a key to enter McAfee’s home with another young woman and said he had spent Saturday night with them – around the time police said Faull’s murder took place.


They had not spoken to McAfee since Sunday, she said.


On Friday, an outside light was still on at his beachfront complex, and a dog roamed freely around the grounds.


Like McAfee, many of his north shore neighbors tend to favor being left alone, rarely coming to town and loath to mix with tourists.


“That’s why they come to San Pedro,” said Daniel Guerrero, the tour guide and real estate broker now serving as the town’s mayor. “They like the quietness. They like the isolation.”


But even fishing, scuba diving and sunset daiquiris can get tiresome. Accustomed to hard work and achievement, newcomers established and kept up the island’s charities, locals say. Quite a few foreigners, like McAfee, started local businesses. And some fall out of synch with local culture.


“It’s one thing to vacation here and another thing living here,” said Wyoming native Tamara Sniffin, owner and editor of the San Pedro Sun, the local newspaper.


Immortalized in song by Madonna as La Isla Bonita, Ambergris Caye stretches 27 miles along the blue Caribbean below the Mexican border, flanking the world’s second-largest barrier reef and some of its finest sport fishing waters.


Those attributes have attracted well-heeled foreign retirees and celebrities such as actor Leonardo DiCaprio, who owns a small island nearby.


“Here it’s just party, party, work, party,” said Iris Mavel, 27, a waitress at a restaurant favored by McAfee. “A lot of couples who come here leave divorced. That’s why they call it Temptation Island.”


The island also has a darker side. Dumped at sea and carried ashore by the tides, bundles of Colombian cocaine flow through the island not far from McAfee’s house and on, many say, toward the Mexican border. Cocaine not recovered by the smugglers is collected by islanders, supplying a thriving local drug market that has sparked low-level gang feuds and occasional killings.


International fugitives have taken refuge here. In the summer, a Slovak man accused of murdering a woman, her 10-year-old son and a gangster in his home country was arrested on an international warrant, processed for extradition but then released by a Belizean judge.


Some townsfolk suspect McAfee is hiding on a yacht off of San Pedro. Others note that Mexico is only an hour away by the sort of fast boat McAfee owns and that passports are never checked for people landing in the oceanfront villages there.


San Pedro’s mayor believes he will surface.


“I have the feeling that this guy will turn up,” Guerrero said. “But he’ll turn up with his attorneys. He’s a big guy.”


(Additional reporting by Jose Sanchez in Belize, Jim Finkle in Boston, Noel Randewich in San Francisco and Mike McDonald in Guatemala; Editing by Dave Graham, Kieran Murray and Bill Trott)


Internet News Headlines – Yahoo! News



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Israel Bombs Gaza Media and Government Sites, Warning of ‘Expansion’


Mohammed Saber/European Pressphoto Agency


Two children look through the rubble of their house after an airstrike in Beit Lahiya, Gaza, on Sunday.







GAZA CITY — Israel pressed its assault on the Gaza Strip for a fifth straight day on Sunday, deploying warplanes and naval vessels to pummel the coastal enclave and striking at two media offices here as Prime Minister Benjamin Netanyahu warned of a possible “significant” expansion in the onslaught.




His words came as militants in Gaza aimed at least one rocket at the Israeli heartland in Tel Aviv, one day after after Israeli forces broadened the attack beyond military targets, bombing centers of government infrastructure including the four-story headquarters of the Hamas prime minister.


“We are exacting a heavy price from Hamas and the terrorist organizations and the Israel Defense Forces are prepared for a significant expansion of the operation,” Mr. Netanyahu told his cabinet at its routine Sunday meeting, referring directly to the call-up of thousands of reservists that, coupled with a massing of armor on the Gaza border, many analysts have interpreted as preparations for a possible invasion.


“I appreciate the rapid and impressive mobilization of the reservists who have come from all over the country and turned out for the mission at hand,” he said. “Reservist and conscript soldiers are ready for any order they might receive.”


Mr. Netanyahu’s remarks were reported shortly after a battery of Israel’s “Iron Dome” defense shield, hastily deployed near the city on Saturday in response to the threat of longer-range rockets, intercepted at least one projectile aimed at Tel Aviv on Sunday, Israeli officials said. The episode was the latest of several salvoes that have illustrated Hamas’s ability to extend the range of its rocket attacks.


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.


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


The attack on the office of the Hamas 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 Mark Regev, a spokesman for Mr. Netanyahu, denied reports that a truce was imminent.


It was unclear whether the deal under discussion in Cairo would solely suspend the fighting or include other issues. Hamas — which won elections in Gaza in 2006 and took full control in 2007 but is considered a terrorist organization by Israel and the United States — wants to turn its Rafah crossing with Egypt into a free-trade zone and seeks Israel’s withdrawal from the 1,000-foot buffer it patrols on Gaza’s northern and eastern borders.


For his part, Mr. Netanyahu spoke with the leaders of Britain, Germany, Italy, Greece, Poland, Portugal, Bulgaria and the Czech Republic, according to a statement from his office. On Sunday, he said he appreciated the “understanding they are displaying for Israel’s right to defend itself.”


But some European leaders seemed to be counseling restraint as much as offering support.


As French media reported that the French foreign minister, Laurent Fabius, was heading for Israel to seek a ceasefire, William Hague, his British counterpart, cautioned that an Israeli invasion of Gaza “would lose Israel a lot of the international support and sympathy they have” and make it “much more difficult to restrict and avoid civilian casualties.”


As the fighting entered its fifth day, the conflict showed no sign of abating.


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.


Jodi Rudoren reported from Gaza City, Isabel Kershner from Jerusalem and Alan Cowell from London. 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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Taylor Swift and One Direction's Harry Styles: Are They Dating?















11/17/2012 at 10:40 PM EST







Taylor Swift and Harry Styles


Janet Mayer/Splash News Online; Don Arnold/Wireimage


Taylor Swift appears to be taking her love life in a new direction.

The "Never Ever Getting Back Together" singer is seemingly taking her lyrics to heart as she moves on from recent ex, Conor Kennedy, and enjoys the company of One Direction hottie Harry Styles.

"I had to literally do a double-take," an onlooker tells PEOPLE of finding Styles, 18, with Swift, 22, on the set of The X Factor Thursday morning.

Styles was on hand to watch Swift rehearse the debut of "State of Grace," which she performed later that night on the Fox reality show.

"He was smiling at her while she rehearsed. When she was done he jumped up on stage, picked her up, put her over his shoulder and carried her off stage," the onlooker says. "The whole crew was really surprised."

The young singers were also spotted by X Factor host Mario Lopez, who says he was slapped on the back by Styles during Swift's rehearsal.

"I said, 'What are you doing here,' " Lopez said on his 104.3 MY FM radio show Friday. "And he sort of [pointed] toward Taylor."

Lopez went on to say he later saw the two "hand-in-hand."

A telling sign of the budding relationship may have been a look Styles shared with his bandmate Niall Horan a week earlier after Horan told PEOPLE his favorite song of 2012 was Swift's "Never Ever Getting Back Together."

When asked if he would ever date Swift, Horan gave a small laugh, looked at Styles and answered with a succinct, "no."

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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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Wall Street Week Ahead: Going off "cliff" with a bungee cord

NEW YORK (Reuters) - The 1987 crash. The Y2K bug. The debt ceiling debacle of 2011.


All these events, in the end, turned out to be buying opportunities for stocks. So will the "fiscal cliff," some investors say as they watch favorite stocks tumble during the political give-and-take happening in Washington.


The first round of talks aimed at avoiding the "fiscal cliff" caused a temporary rise in equities on Friday, signaling Wall Street's recent declines could be a buying opportunity. The gains were small and sentiment remains weak, but it suggests hope for market bulls.


Though shares ended moderately higher on Friday, it was not enough to offset losses for the week. The S&P was down 1.5 percent, while both the Dow and the Nasdaq fell 1.8 percent.


The S&P 500 is down more than 5 percent in the seven sessions that followed President Barack Obama's re-election. Uncertainty arose as attention turned to Washington's task of dealing with mandated tax hikes and spending cuts that could take the U.S. economy back into recession.


Some see the market's move as an overreaction to hyperbolic headlines about policy gridlock in Washington, believing stocks may start to rebound in what should be a quiet few days ahead of the Thanksgiving holiday next Thursday.


"It just doesn't seem to make any sense that you suddenly wake up the day after the election and realize we've got a fiscal cliff," said Krishna Kumar, partner at New York hedge fund Goose Hollow Alpha Advisors.


Not long ago the S&P was on target for its second-best year in the last 10, riding a 17 percent advance in 2012. That's been halved to about 8 percent, which isn't bad but disappointing compared with just a month ago.


Investors have been selling the year's winners. Apple is down 25 percent from its peak above $700. General Electric is down 14 percent; Google has lost 16 percent. Overall, the stocks that make up the top 10 percent of performers in the month prior to Election Day have been the worst performers since, according to Bespoke Investment Group of Harrison, New York.


"I think it's a good opportunity to be long stocks at these levels," said Kumar.


Hikes on capital gains and dividend taxes are on the line, and Obama has dug in his heels on what he sees as a mandate to make the tax code more progressive.


He seems to have the upper hand in dealings with Congress because Republican lawmakers don't want to see tax rates increase, which is what will happen if no solution is found by the beginning of 2013. Republicans don't want to take the blame for driving the economy over the cliff.


The current crisis is similar to last year's fight to raise the U.S. debt ceiling, which led to the downgrade of the United States' top credit rating in early August 2011.


During the dealings, the S&P 500 lost 18.8 percent between its peak in July 2011 and its bottom in August. As the market slid, the political standoff badly hurt investors' confidence in Washington, setting off a spike in volatility.


In the end a deal was announced that raised the ceiling and put off longer-term fiscal decisions until January 1, 2013, setting the stage for today's "fiscal cliff" crisis.


After staying flat through September 2011, the S&P 500 jumped 31 percent between its October low and the end of March.


BUY THE DIP?


Gridlock in Washington and all that could possibly go wrong with the economy if a deal is not reached have grabbed the headlines, but the negotiations leave room for stock market gains. Congressional leaders said Friday they will work through the Thanksgiving holiday recess to find a solution.


"The debate over how to solve (the fiscal cliff) may be more productive than is commonly recognized," said Brad Lipsig, senior portfolio manager at UBS Financial Services in New York.


"The U.S. is facing a major debt overhang, and serious steps toward addressing it might ultimately be viewed as a positive for future growth," he said. "The market may recognize this and, after a time of hand wringing, recover from the concerns with a renewed sense of optimism."


The recent selling took the S&P 500's relative strength index - a technical measure of internal strength - below 30 this week, indicating the benchmark is oversold and due for a rebound.


The RSI in four of the 10 S&P sectors - utilities, telecoms, consumer staples and technology - is below 30 and the highest RSI reading, for the consumer discretionary sector, is below 40, suggesting a bounce is in store.


"What I want to do is what we did during the decline following the budget negotiations in the summer of 2011: The lower the stock market goes, the more I want to own stock," said Brian Reynolds, chief market strategist at New York-based Rosenblatt Securities.


"If we go off the cliff it will be with a bungee cord attached," he said.


KEEP CALM AND HEDGE


Volatility is expected to rise through the end of November and to spike in late December if no agreement on the fiscal cliff is reached in Congress. Alongside comes opportunity for those with high risk tolerance.


"Recently, volatility has increased in the market overall. You can't really pick it up in the VIX yet, but I think as we get through November, I think you're likely to see the VIX be at a relatively higher level," said Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston.


In 2011, the VIX averaged 19.2 in July and 35 in August. So far this month the average is 17.8 and it is expected to spike if negotiations on the cliff drag into late next month.


"Looking at the range of possibilities, I would say any of them would be better than sitting here waiting. I would even put going off the fiscal cliff in that category," said Jill Cuniff, president of Seattle-based Edge Asset Management Inc, which manages about $20 billion.


"But we don't believe Congress will let that happen; there's going to be some middle ground here."


(Reporting by Rodrigo Campos and Jonathan Spincer, additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)


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In Gaza, new arsenals include “weaponized” social media
















SAN FRANCISCO (Reuters) – There have long been the tools of warfare associated with the Israeli-Palestinian conflict: warplanes, mortars, Qassam rockets. Now that list includes Twitter, Facebook, YouTube.


This week the worldwide audience got a vivid look at conflict in the social media era as the Israeli military unfurled an extensive campaign across several Internet channels after conducting an air strike that killed a top Hamas military commander in the Gaza Strip on Wednesday.













The air strike, which came after several days of rocket attacks launched from Gaza toward targets in Israel, was confirmed by the Israel Defense Force’s Twitter account before the military held a press conference.


The public relations tug-of-war has long been understood as a central element of the Israeli-Palestinian conflict. Palestinian leaders like Yasser Arafat were credited with skillfully courting international media during the first Intifada to highlight the Palestinian struggle and help sway public opinion.


But the newest technologies, including Twitter and YouTube, have been embraced particularly by the Israeli government, which has perhaps waged an unprecedented social media PR campaign as the conflict escalated this week.


The Israel Defense Force (IDF) has established a presence on nearly every platform available. It launched a Tumblr account Wednesday, posting infographics touting how Israeli forces minimize collateral damage to Palestinian civilians. It prepared Facebook pages in several languages, and even has a bare-bones Pinterest page with photos of troops deployed in humanitarian missions.


On Twitter, the @IDFspokesperson account issued a torrent of tweets that carried hashtags like #IsraelUnderFire and what it said were videos of rockets fired at Israel from Gaza, as well as pictures of wounded Israeli children.


“They are very conscious how things are going to be viewed, perhaps more so because they sense that they are more and more isolated in world opinion, and they are less shouldered by U.S. public opinion,” said James Noyes, a research fellow at the Hoover Institution.


The IDF also posted on Twitter a picture of Ahmed Al-Jaabari, the Hamas commander who was killed, with the word “eliminated” stamped over his face.


Meanwhile, the Al-Qassam Brigades, the military group formerly led by Al-Jaabari, also took to Twitter to offer blow-by-blow updates of its fighters shelling Israeli military targets. It publicized deaths of Palestinian children due to Israeli attacks, and used hashtags like “#terrorism.”


HIGH STAKES


At certain points, the two sides clashed head-on.


“We recommend that no Hamas operatives, whether low level or senior leaders, show their faces above ground in the days ahead,” tweeted @IDFspokesperson after Al-Jaabari was killed.


Al-Qassam (@AlqassamBrigade) shot back at @IDFSpokesperson, warning in a public tweet that the group’s “blessed hands will reach your leaders and soldiers wherever they are,” and that “You Opened Hell Gates on Yourselves” as a result of the air strike.


The exchange raised questions for the new media companies that have vowed to stand behind free speech but perhaps have never before played host to such high-stakes discourse.


Although Twitter regulates against “direct, specific threats of violence,” the two sides tweeted unchecked. The company did not respond to requests for comment.


But on Wednesday, YouTube briefly blocked a grainy IDF video that showed a missile striking Al-Jaabari’s car. The footage, uploaded shortly after the air strike, had drawn hundreds of thousands of views and was flagged by some users as objectionable.


YouTube’s parent Google Inc later reinstated the video and Google Chairman Eric Schmidt said there was a lot of “back and forth” among senior executives at Google, including himself and Google Chief Executive Larry Page, over whether to block the footage.


In YouTube’s case, the general rule is that films that “encourage violence and depict violence are not allowed,” said Schmidt, speaking at a conference sponsored by the RAND corporation and Thomson Reuters entitled “Politics Aside,” in Los Angeles.


“The problem is, if we don’t host it, somebody else will. How do we get all of it down?” he added.


‘WEAPONIZED’ SOCIAL MEDIA


Observers say the Israeli military’s social media efforts are a far cry from the 2008 Gaza War, when the IDF launched a YouTube channel for the first time with videos that sought to justify sending troops into Palestinian territory.


“Operation Cast Lead marked the first time they weaponized social media,” said Rebecca Stein, a professor of anthropology at Duke University who has researched how Israeli military officials use social media. “But back then it was very improvisational,” she said.


In 2010, the government seemed to be caught off guard when activists on a humanitarian convoy bound for the Gaza Strip stirred up sympathy by tweeting and webcasting from their boats after they were boarded by Israeli troops.


That year, the Israeli foreign ministry invested more than $ 15 million to better grasp how the government could use social media in a broader campaign to burnish the nation’s image.


Last year, Israeli officials sent a letter to Facebook Inc asking the social network to remove a page calling for a third Palestinian uprising.


On Thursday, as Israel mobilized troops for a potential ground assault reminiscent of 2008, the PR machine that rolled out seemed nothing like the halting efforts of four years prior, Stein said.


“They’ve had to do a lot of learning between then and now and have invested a lot of resources and exponential manpower specifically for an event like this,” Stein said. “In some sense, they’ve been pioneers of social media statecraft.”


(Additional reporting by Tim Reid in Los Angeles; Editing by Lisa Shumaker)


Social Media News Headlines – Yahoo! News



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