Monday 31 December 2012

Vomiting Larry battles "Ferrari of the virus world"

Paramedics dressed in protective attire walk in front of the ship, the Bellriva, in Wiesbaden December 8, 2012. The Bellriva has been quarantined after at least 30 passengers were found to be suffering from diarrhoea and vomiting. Authorities believed it is caused by the Norovirus, a virus that is spread from person-to-person and causes flu-like symptoms. REUTERS/Lisi Niesner

Paramedics dressed in protective attire walk in front of the ship, the Bellriva, in Wiesbaden December 8, 2012. The Bellriva has been quarantined after at least 30 passengers were found to be suffering from diarrhoea and vomiting. Authorities believed it is caused by the Norovirus, a virus that is spread from person-to-person and causes flu-like symptoms.

Credit: Reuters/Lisi Niesner

By Kate Kelland, Health and Science Correspondent

LONDON | Mon Dec 31, 2012 8:53am EST

LONDON (Reuters) - Poor Larry isn't looking too good. He's pale and clammy and he's been projectile vomiting over and over again while his carers just stand by and watch.

Yet their lack of concern for Larry is made up for by their intense interest in how far splashes of his vomit can fly, and how effectively they evade attempts to clean them up.

Larry is a "humanoid simulated vomiting system" designed to help scientists analyze contagion. And like millions around the world right now, he's struggling with norovirus - a disease one British expert describes as "the Ferrari of the virus world".

"Norovirus is one of the most infectious viruses of man," said Ian Goodfellow, a professor of virology at the department of pathology at Britain's University of Cambridge, who has been studying noroviruses for 10 years.

"It takes fewer than 20 virus particles to infect someone. So each droplet of vomit or gram of feces from an infected person can contain enough virus to infect more than 100,000 people."

Norovirus is hitting hard this year - and earlier too.

In Britain so far this season, more than a million people are thought to have suffered the violent vomiting and diarrhea it can bring. The Health Protection Agency (HPA) said this high rate of infection relatively early in the winter mirrors trends seen in Japan and Europe.

"In Australia the norovirus season also peaks during the winter, but this season it has gone on longer than usual and they are seeing cases into their summer," it said in a statement.

In the United States, the Centers for Disease Control and Prevention (CDC) say norovirus causes 21 million illnesses annually. Of those who get the virus, some 70,000 require hospitalization and around 800 die each year.

PROFUSE AND PROJECTILE

Norovirus dates back more than 40 years and takes its name from the U.S. city of Norwalk, Ohio, where there was an outbreak of acute gastroenteritis in school children in November 1968.

Symptoms include a sudden onset of vomiting, which can be projectile, and diarrhea, which may be profuse and watery. Some victims also suffer fevers, headaches and stomach cramps.

John Harris, an expert on the virus at Britain's HPA, puts it simply: "Norovirus is very contagious and very unpleasant."

What makes this such a formidable enemy is its ability to evade death from cleaning and to survive long periods outside a human host. Scientists have found norovirus can remain alive and well for 12 hours on hard surfaces and up to 12 days on contaminated fabrics such as carpets and upholstery. In still water, it can survive for months, maybe even years.

At the Health and Safety Laboratory in Derbyshire, northern England, where researcher Catherine Makison developed the humanoid simulated vomiting system and nicknamed him "Vomiting Larry", scientists analyzing his reach found that small droplets of sick can spread over three meters.

"The dramatic nature of the vomiting episodes produces a lot of aerosolized vomit, much of which is invisible to the naked eye," Goodfellow told Reuters.

Larry's projections were easy to spot because he had been primed with a "vomitus substitute", scientists explain, which included a fluorescent marker to help distinguish even small splashes - but they would not be at all easily visible under standard white hospital lighting.

Add the fact that norovirus is particularly resistant to normal household disinfectants and even alcohol hand gels, and it's little wonder the sickness wreaks such havoc in hospitals, schools, nursing homes, cruise ships and hotels.

During the two weeks up to December 23, there were 70 hospital outbreaks of norovirus reported in Britain, and last week a cruise ship that sails between New York and Britain's Southampton docked in the Caribbean with about 200 people on board suffering suspected norovirus.

MOVING TARGET

The good news, for some, is that not everyone appears to be equally susceptible to norovirus infection. According to Goodfellow, around 20 percent of Europeans have a mutation in a gene called FUT2 that makes them resistant.

For the rest the only likely good news will have to wait for the results of trials of a potential norovirus vaccine developed by U.S. drugmaker LigoCyte Pharmaceuticals Inc, or from one of several research teams around the world working on possible new antiviral drugs to treat the infection.

Early tests in 2011 indicated that around half of people vaccinated with the experimental shot, now owned by Japan's Takeda Pharmaceutical Co, were protected from symptomatic norovirus infection.

The bad news, virologists say, is that the virus changes constantly, making it a moving target for drug developers. There is also evidence that humans' immune response to infection is short-lived, so people can become re-infected by the same virus within just a year or two.

"There are many strains, and the virus changes very rapidly - it undergoes something virologists call genetic drift," Harris said in a telephone interview. "When it makes copies of itself, it makes mistakes in those copies - so each time you encounter the virus you may be encountering a slightly different one."

This means that even if a vaccine were to be fully developed - still a big 'if' - it would probably need to be tweaked and repeated in a slightly different formula each year to prevent people getting sick.

Until any effective drugs or vaccines are developed, experts reckon that like the common cold, norovirus will be an unwelcome guest for many winters to come. Their advice is to stay away from anyone with the virus, and use soap and water liberally.

"One of the reasons norovirus spreads so fast is that the majority of people don't wash their hands for long enough," said Goodfellow. "We'd suggest people count to 15 while washing their hands and ensure their hands are dried completely."

(Reporting by Kate Kelland; Editing by Will Waterman)


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Kim Kardashian pregnant with Kanye's baby

Reality TV star Kim Kardashian (L) and U.S. rapper Kanye West watch the Los Angeles Lakers play the Denver Nuggets during Game 7 of their NBA Western Conference basketball playoff series in Los Angeles, California in this May 12, 2012 file photo. REUTERS/Lucy Nicholson/Files

Reality TV star Kim Kardashian (L) and U.S. rapper Kanye West watch the Los Angeles Lakers play the Denver Nuggets during Game 7 of their NBA Western Conference basketball playoff series in Los Angeles, California in this May 12, 2012 file photo.

Credit: Reuters/Lucy Nicholson/Files

LOS ANGELES | Mon Dec 31, 2012 1:38pm EST

LOS ANGELES (Reuters) - Rapper Kanye West and reality TV star Kim Kardashian are expecting a child, Kardashian said on Monday shortly after West announced the pregnancy to fans at a concert.

"It's true!! Kanye and I are expecting a baby," Kardashian, 32, wrote on her personal blog.

"Looking forward to great new beginnings in 2013 and to starting a family," she added.

Kardashian began dating West in April, some six months after filing for divorce from basketball player Kris Humphries. The two were married for 72 days following a lavish, made-for-TV wedding. Their divorce has yet to be finalized.

Kardashian is about 12 weeks pregnant, according to U.S. media reports.

Fans and family took to Twitter to congratulate the celebrity power couple, and to speculate whether the new baby's name would begin with a K, in line with Kardashian family tradition.

"Been wanting to shout from the rooftops with joy and now I can!" wrote Kardashian's sister Kourtney. "Another angel to welcome to our family. Overwhelmed with excitement!"

Kardashian's brother-in-law, basketball player Lamar Odom, who has been open about struggling to have a baby with wife and "The X Factor" host Khloe Kardashian also tweeted his congratulations.

"I'm excited for Kanye and my sister!" said Odom. "There's nothing like bringing life into this world! Let's keep God's blessings coming!"

West, 35, was first to announce the news from the stage at a concert in Atlantic City on Sunday, singing, "God brought us a whole new plan, baby. 'Cause now you're having my baby."

Kardashian, who rose to fame five years ago for her appearances in reality TV show "Keeping Up with the Kardashians," was the most-searched person on the Yahoo! website in 2012.

(Reporting by Eric Kelsey; Editing by Jill Serjeant and Cynthia Osterman)


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Market rallies on emerging "fiscal cliff" deal

Traders work the floor at the New York Stock Exchange in New York, December 26, 2012. REUTERS/Eduardo Munoz

Traders work the floor at the New York Stock Exchange in New York, December 26, 2012.

Credit: Reuters/Eduardo Munoz

By Chuck Mikolajczak

NEW YORK | Mon Dec 31, 2012 3:10pm EST

NEW YORK (Reuters) - U.S. stocks advanced on Monday in a choppy session after comments from President Barack Obama suggesting a deal on the "fiscal cliff" was drawing closer.

The S&P 500 jumped above 1 percent after Obama said it appeared a deal was within sight, but quickly cut some gains when the president noted an agreement was not complete yet. With just an hour left in the final session of 2012, though, the S&P 500 resumed its climb and shot above 1 percent.

A source familiar with the matter said an emerging deal, if adopted by Congress and President Barack Obama, would raise $600 billion in revenue over the next 10 years by increasing tax rates for individuals making more than $400,000 and households earning above $450,000 annually.

A plan is needed in order to avert a combination of tax hikes and spending cuts that many believe could push the U.S. economy into recession.

"There is positive momentum in the market, and we are building up to a deal - markets are definitely starting to price in a deal sometime before tomorrow," said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.

"This sounds counterintuitive, but if that doesn't happen, even if we don't get a bridge deal done, that is just going to increase the pressure on a deal getting done."

The gains put the S&P 500 on track to snap a five-day losing skid, its longest losing streak since September.

The Dow Jones industrial average .DJI gained 136.08 points, or 1.05 percent, to 13,074.19. The Standard & Poor's 500 Index .SPX rose 19.82 points, or 1.41 percent, to 1,422.25. The Nasdaq Composite Index .IXIC climbed 59.89 points, or 2.02 percent, to 3,020.20.

The S&P 500 is now up 13.1 percent for the year, compared with a flat performance in 2011. The Dow is up 7 percent and the Nasdaq is up 15.9 percent.

Gains in Apple Inc (AAPL.O), the most valuable U.S. company, helped lift the Nasdaq. The stock rose 4.4 percent to $531.85, lifting the S&P information technology sector index .GSPT up 1.9 percent. For the year so far, Apple is up 31.3 percent.

The Dow was bolstered by Caterpillar Inc (CAT.N) and Home Depot (HD.N) , both up more than 1 percent. In late afternoon trading, Caterpillar shot up nearly 3 percent to $86.35.

While a deal on the cliff is not yet official, investors may be ready to take on more risk next year in hopes of a greater reward.

Bank stocks rose after a New York Times report that U.S. regulators are nearing a $10 billion settlement with several banks that would end the government's efforts to hold lenders responsible for faulty foreclosure practices.

Bank of America Corp (BAC.N) was up 2.1 percent at $11.59.

Financial stocks were among the strongest of the year, with the S&P financial index .GSPF surging 25.2 percent for 2012 so far. Bank of America is the top-performing Dow component, with its stock price more than doubling over the past 12 months.

(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)


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Secretary of State Clinton hospitalized with blood clot

U.S. Secretary of State Hillary Clinton answers questions from the audience at the 2012 Saban Forum on U.S.-Israel relations gala dinner in Washington, in this file photo from November 30, 2012. Clinton was sent to the hospital December 30, 2012 with a blood clot stemming from a concussion she suffered earlier this month and was being assessed by doctors, a State Department spokesman said. REUTERS/Mary F. Calvert/Files

1 of 4. U.S. Secretary of State Hillary Clinton answers questions from the audience at the 2012 Saban Forum on U.S.-Israel relations gala dinner in Washington, in this file photo from November 30, 2012. Clinton was sent to the hospital December 30, 2012 with a blood clot stemming from a concussion she suffered earlier this month and was being assessed by doctors, a State Department spokesman said.

Credit: Reuters/Mary F. Calvert/Files

By Andrew Quinn

WASHINGTON | Sun Dec 30, 2012 11:04pm EST

WASHINGTON (Reuters) - U.S. Secretary of State Hillary Clinton was admitted to a New York hospital on Sunday with a blood clot linked to a concussion she suffered earlier this month, the State Department said in an announcement that looked sure to fuel speculation over the health of one of America's best-known political figures.

Clinton, 65, has been out of the public spotlight since mid-December, when officials said she suffered a concussion after fainting due to a stomach virus contracted during a trip to Europe.

"In the course of a follow-up exam today, Secretary Clinton's doctors discovered a blood clot had formed, stemming from the concussion she sustained several weeks ago," State Department spokesman Philippe Reines said in a statement.

"She is being treated with anti-coagulants and is at New York-Presbyterian Hospital so that they can monitor the medication over the next 48 hours," Reines said. "They will determine if any further action is required."

U.S. officials said on December 15 that Clinton, who canceled an overseas trip because of the stomach virus, suffered a concussion after fainting due to dehydration.

They have since described her condition as improving and played down suggestions that it was more serious. She had been expected to return to work this week.

Clinton's illness, already the subject of widespread political speculation, forced her to cancel planned testimony to Congress on December 20 in connection with a report on the deadly attack on the U.S. diplomatic post in Benghazi, Libya.

The attack became the subject of heated political debate in the run-up to the U.S. presidential election in November, and Republican lawmakers have repeatedly demanded that Clinton appear to answer questions directly.

Clinton's two top deputies testified in her place on the September 11 attack in Benghazi, which killed the U.S. ambassador and three other Americans and raised questions about security at far-flung diplomatic posts.

Some Republican commentators have implied that Clinton was seeking to avoid questioning on the subject, suggestions that have been strongly rebutted by State Department officials.

Clinton has stressed that she remains ready to testify and was expected to appear before lawmakers this month before she steps down, as planned, around the time of Obama's inauguration for his second term in late January.

After narrowly losing the Democratic presidential nomination to Obama in 2008, Clinton has been consistently rated as the most popular member of his Cabinet and is often mentioned as a potential presidential candidate in 2016.

Any serious medical concern could throw a fresh question mark over her future plans, although she has frequently alluded to her general good health.

BLOOD THINNERS

Dr. Edward Ellerbeck, a professor at the University of Kansas School of Medicine, said clots are more common in people who are sedentary, genetically predisposed, or on certain types of medicines such as the contraceptive pill or Estrogen replacements.

Ellerbeck, who is not treating Clinton, said clots are usually treated with blood thinners, typically for three to six months, and generally carry a low risk of further complications

Clinton is not known to have any of the risk factors that increase the risk of abnormal clotting, such as atherosclerosis or autoimmune disorders.

Head injuries such as the one she sustained earlier this month are associated more with bleeding than with clotting.

In one well-known case of bleeding following a head injury, actress Natasha Richardson hit her head skiing in 2009 and seemed fine, but died two days later of a hematoma, or bleeding between the outer membrane of the brain and the skull.

Clinton has said she wants to take a break from public life and has laughed off suggestions that she may mount another bid to become the first woman president of the United States - a goal she came close to reaching in 2008.

Her stint as secretary of state has further burnished the credentials she earned as a political partner to her husband, former President Bill Clinton, and later as a Democratic senator from New York.

In the four years since she became Obama's surprise choice as the top U.S. diplomat, Clinton has broken travel records as she dealt with immediate crises, including Libya and Syria, and sought to manage longer-term challenges, including U.S. relations with China and Russia.

She has maintained a punishing travel schedule, and was diagnosed with the virus after a December trip that took her to the Czech Republic, NATO headquarters in Brussels, Dublin and Belfast - where she had her last public appearance on December 7.

Officials announced on December 9 that she was ill with the stomach virus, forcing her to cancel a trip to North Africa and the Gulf that was to include a stop in Morocco for a meeting on the Syria crisis.

READY TO STEP DOWN

Clinton has repeatedly said that she only intended to serve one term, and aides said she was on track to leave office within the next few weeks, once a successor is confirmed by the Senate.

Her last months in office have been overshadowed by the Benghazi attack, the first to kill a U.S. ambassador in the line of duty since 1979, which brought sharp criticism of the State Department.

An independent inquiry this month found widespread failures in both security planning and internal management in the department.

It did not find Clinton personally responsible for any security failures, although she publicly took overall responsibility for Benghazi and the safety and security of U.S. diplomats overseas.

The State Department's top security officer resigned from his post under pressure and three other mid-level employees were relieved of their duties after the inquiry released its report.

The controversy also cost U.S. Ambassador to the United Nations Susan Rice her chance to succeed Clinton as secretary of state.

Rice drew heavy Republican criticism for comments on several television talk shows in which she said the attack appeared to be the result of a spontaneous demonstration rather than a planned assault. She ultimately withdrew her name for consideration for the top diplomatic job.

Obama on December 21 nominated Senator John Kerry, the Massachusetts Democrat who heads the Senate Foreign Relations Committee, to fill the position of secretary of state.

(Additional reporting by Jilian Mincer and Sharon Begley.; Editing by Eric Walsh and Christopher Wilson)


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Nine killed, more than 25 hurt in Oregon bus crash: state police

Rescue personnel respond to the scene of a charter bus crash on I-84, east of Pendleton, Oregon in this December 30, 2012 handout photo. Five people were killed and at least 20 injured in the incident. Police said the bus may have gone out of control on the highway before crashing through a guardrail and down an embankment. REUTERS/Oregon State Police/Handout

Rescue personnel respond to the scene of a charter bus crash on I-84, east of Pendleton, Oregon in this December 30, 2012 handout photo. Five people were killed and at least 20 injured in the incident. Police said the bus may have gone out of control on the highway before crashing through a guardrail and down an embankment.

Credit: Reuters/Oregon State Police/Handout

By Teresa Carson

PORTLAND, Oregon | Sun Dec 30, 2012 10:54pm EST

PORTLAND, Oregon (Reuters) - Nine people were killed and at least 26 others injured on Sunday when a charter bus headed to Canada from Las Vegas skidded off an icy mountain highway and crashed down an embankment in northeastern Oregon.

The Oregon State Police said a preliminary investigation showed the charter bus, carrying about 40 people through the Blue Mountains en route to Vancouver, British Columbia, "lost control on the snow/ice covered westbound lanes of Interstate 84" near Pendleton.

The bus crashed through a guardrail alongside the road and went down an embankment of around 200 feet. Crews trained in rope rescue were needed to bring victims back up to the highway, police said.

State Police spokesman Lt. Gregg Hastings said nine people had been confirmed killed in the crash.

"We are continuing to try and confirm the total number of passengers and number of injured persons transported to area hospital or secondary locations due to severity of injuries." the state police said in a written statement.

The bus driver survived the crash but investigators said he had not yet been interviewed because of the severity of his injuries.

St. Anthony Hospital in Pendleton initially received 26 of the injured, spokesman Larry Blanc said. Five of those patients were stabilized and transported to a secondary hospital by air for further treatment.

"About 10:30 this morning we got the call and declared a Code D, which means we bring in extra staff and supplies," he said, adding that D stands for "disaster."

"There are various types of injuries. Some of the injured were able to walk in on their own," Blanc said. "We are taking a lot of CT scans and assessing the injuries

Blanc said that of the 21 patients who remained at St. Anthony, some had been treated and released and were being provided food and shelter by the Red Cross. Some of them were children, he said.

Brycie Jones, spokeswoman for Oregon Health and Science University said that hospital had received four patients from the bus crash.

Jones said she could not disclose their identities or condition and it was not immediately clear if the patients had come from another hospital.

Authorities identified the charter company as Mi Joo Tour & Travel, based in Vancouver, British Columbia and said the bus was headed there as part of a round-trip from Las Vegas, Nevada.

Representatives for Mi Joo could not be reached for comment on Sunday evening.

Police said the names of the dead and wounded would not be released until next of kin were notified, which could take several days because many were believed to be from out of the country.

Pendleton is in northeast Oregon near the border with Washington state, about 200 miles east of Portland.

(Reporting by Teresa Carson; Writing by Dan Whitcomb; Editing by Cynthia Osterman and Todd Eastham)


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In Indian student's gang rape, murder, two worlds collide

Policemen stand guard outside the cremation ground during the funeral of a rape victim after her body arrived from Singapore, in New Delhi December 30, 2012. REUTERS/Adnan Abidi

Policemen stand guard outside the cremation ground during the funeral of a rape victim after her body arrived from Singapore, in New Delhi December 30, 2012.

Credit: Reuters/Adnan Abidi

By Annie Banerji

NEW DELHI | Mon Dec 31, 2012 5:53am EST

NEW DELHI (Reuters) - One of hundreds of attacks reported in New Delhi each year, the gang rape and murder of a medical student caught Indian authorities and political parties flat-footed, slow to see that the assault on a private bus had come to symbolize an epidemic of crime against women.

In the moments before the December 16 attack, the 23-year-old woman from India's urban middle class, who had recently qualified as a trainee physiotherapist in a private Delhi hospital, and her male friend, a software engineer, were walking home from a cinema at a shopping mall in south Delhi, according to a police reconstruction of events.

A bus, part of a fleet of privately owned vehicles used as public transport across the city of 16 million, and known as India's "rape capital", was at the same time heading toward them. Earlier that day, it had ferried school students but was now empty except for five men and a teenage boy, including its crew, police said. Most of the men were from the city's slums.

One of the six - all now charged with murder - lured the couple onto the bus, promising to drop the woman home, police have said, quoting from an initial statement that she gave from her hospital bed before her condition deteriorated rapidly.

A few minutes into the ride, her friend, 28, grew suspicious when the bus deviated from the supposed route and the men locked the door, according to her statement. They then taunted her for being out with a man late at night, prompting the friend to intervene and provoking an initial scuffle.

The attackers then beat him with a metal rod, knocking him unconscious, before turning on the woman who had tried to come to his defense. Police say the men admitted after their arrest to torturing and raping the student "to teach her a lesson".

At one point, the bus driver gave the wheel to another of the accused and dragged the woman by the neck to the back of the vehicle and forced himself upon her. The other five then took turns raping her and also driving the bus, keeping it circling through the busy streets of India's capital city, police said.

The woman was raped for nearly an hour before the men pushed a metal rod inside her, severely damaging her internal organs, and then dumped both her and her friend on the roadside, 8 km (5 miles) from where they had boarded it, police said.

Robbed of their clothes and belongings, they were found half naked, bleeding and unconscious later that night by a passerby, who alerted the police.

Last year, a rape was reported on average every 20 minutes in India. Just 26 percent of the cases resulted in convictions, according to the National Crime Records Bureau, which registered 24,206 rapes in 2011, up from 22,141 the previous year.

At first, authorities treated the assault on the medical student as one crime among many, and they were not prepared for the furious public reaction that led to running battles between protesters and police near the heart of government in New Delhi.

FAMILY ROLE MODEL

The woman, whose identity has been withheld by police, gave her statement to a sub-divisional magistrate on December 21 in the intensive care unit of Delhi's Safdarjung Hospital, according to media reports. She was undergoing multiple surgical procedures and her condition later began to rapidly worsen.

Ten days after the attack and still in a critical condition, she was flown to Singapore for specialist treatment. She died in Singapore's Mount Elizabeth Hospital two days later. Her body was flown back to Delhi and cremated there on Sunday in a private ceremony.

Family members who had accompanied her to Singapore declined to speak to reporters, but relatives told the Times of India newspaper she had been a role model to her two younger brothers.

Unlike most traditional Indian families who only send their sons to fee-paying colleges or universities, her parents pinned their hopes on the daughter and took loans to fund her studies.

She was born and brought up in a middle class Delhi neighborhood after her family moved to the city more than 20 years ago from the northern state of Uttar Pradesh.

Her male friend recorded his statement to a court days after the attack and helped police identify the six accused. He left for his hometown in Uttar Pradesh late on Saturday, missing the woman's funeral, media reported.

SHAME, ANGER IN SLUM

Four of the accused, all in custody, live in the narrow by-lanes of Ravi Das Camp, a slum about 17 km (11 miles) from the woman's home in southwest Delhi. Inside the slum - home to some 1,200 people who eke out a meager living as rickshaw pullers and tea hawkers - many demanded the death penalty for the accused.

"The incident has really shocked all of us. I don't know how I will get my children admitted to a school. The incident has earned a bad name to this place," said Pooja Kumari, a neighbor of one of the accused.

Girija Shankar, a student, said: "Our heads hang in shame because of the brutal act of these men. They must reap what they have sown."

The house of one of the accused was locked, with neighbors saying his family had left the city to escape the shame and anger. Meena, a 45-year-old neighbor, said she had wanted to join the protests that followed the rape, but was too scared.

"You never know when a mob may attack this slum and attack our houses. But we want to say we're as angry as the entire nation. We want them to be hanged," she said.

Two of the six alleged assailants come from outside Delhi, according to police. One is married with children and was arrested in his native village in Bihar state and the other, a juvenile, is a runaway from a broken home in Uttar Pradesh.

In India, murder is punishable by death by hanging, except in the case of offenders aged below 18.

(Additional reporting by Suchitra Mohanty and Nita Bhalla; Editing by Mark Bendeich and Ian Geoghegan)


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Chinese fishing boat detained in Japan: Xinhua

A Chinese fishing boat, which is detained by Japan's coastguard, is seen in this handout photo taken December 29, 2012. Japan's coastguard detained a Chinese fishing boat within Japanese waters on Sunday evening, China's Xinhua news agency said, citing the Chinese consulate general in Fukuoka, a city in southwestern Japan. Picture taken December 29, 2012.

Credit: Reuters/Kagoshima Coast Guard Office/Handout


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Al Qaeda in Yemen offers bounty for U.S. ambassador

U.S. ambassador to Yemen Gerald Feierstein speaks during an interview in New York, in this file picture taken October 18, 2012. REUTERS/Brendan McDermid/Files

U.S. ambassador to Yemen Gerald Feierstein speaks during an interview in New York, in this file picture taken October 18, 2012.

Credit: Reuters/Brendan McDermid/Files

DUBAI | Mon Dec 31, 2012 5:51am EST

DUBAI (Reuters) - The Yemen-based branch of al Qaeda has offered a bounty for anyone who kills the U.S. ambassador to Yemen or an American soldier in the impoverished Arab state, a group that monitors Islamist websites said.

Al Qaeda in the Arabian Peninsula (AQAP) said it was offering three kilograms of gold for the killing of the U.S. ambassador in Sanaa, Gerald Feierstein, the U.S.-based SITE Intelligence Group said, citing an audio released by militants.

AQAP will also pay 5 million rials ($23,350) to whoever kills any American soldier in Yemen, it said.

The offer, valid for six months, was made "to encourage our Muslim Ummah (nation), and to expand the circle of the jihad (holy war) by the masses," SITE said, citing the audio.

AQAP, mostly militants from Yemen and Saudi Arabia, is regarded by the United States as the most dangerous branch of the network founded by Osama bin Laden.

In September, AQAP urged Muslims to step up protests and kill U.S. diplomats in Muslim countries over a film denigrating the Prophet Mohammad, which it said was another chapter in the "crusader wars" against Islam.

The film provoked an outcry among Muslims, who deem any depiction of the Prophet as blasphemous and triggered violent attacks on embassies in countries in Asia and the Middle East.

Four U.S. officials including the ambassador to Libya were killed in the aftermath. The Pentagon said it had sent a platoon of Marines to Yemen after demonstrators stormed the U.S. Embassy in Sanaa.

A U.S. ally, Yemen is struggling against challenges on many fronts since mass protests forced veteran leader Ali Abdullah Saleh to step down in February after decades in power.

President Abd-Rabbu Mansour Hadi's government is trying to re-establish order and unify the army.

Washington, which has pursued a campaign of assassination by drone and missile against suspected al Qaeda members, backed a military offensive in May to recapture areas of Abyan province. But militants have struck back with a series of bombings and killings.

(Reporting by Rania El Gamal; editing by Todd Eastham)


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Hours from "fiscal cliff," Washington still awaits deal

A man walks past the U.S. Capitol Building in Washington December 17, 2012. REUTERS/Joshua Roberts

1 of 15. A man walks past the U.S. Capitol Building in Washington December 17, 2012.

Credit: Reuters/Joshua Roberts

By Fred Barbash

WASHINGTON | Mon Dec 31, 2012 1:27am EST

WASHINGTON (Reuters) - The U.S. Congress comes back on Monday without a deal to avert the "fiscal cliff" and only a few hours of actual legislative time scheduled in which to act if an agreement materializes.

Negotiations involving Vice President Joe Biden and Senate Republican leader Mitch McConnell appeared to offer the last hope for avoiding the across-the-board tax increases and draconian cuts in the federal budget that will be triggered at the start of the New Year because of a deficit-reduction law enacted in August, 2011.

A jolt from the financial markets could also prod the parties, as it has occasionally in the past.

"I believe investors will show their displeasure" at the lack of progress in Washington, said Mohannad Aama, managing director at Beam Capital Management, an investment advisory firm in New York.

Democratic and Republican leaders in the Senate had hoped to clear the way for swift action on Sunday. But with the two sides still at loggerheads in talks, Senate Democratic leader Harry Reid postponed any possible votes and the Senate adjourned until Monday.

The main sticking point between Republicans and Democrats remained whether to extend existing tax rates for everyone, as Republicans want, or just for those earning below $250,000 to $400,000, as Democrats have proposed.

Also at issue were Republican demands for larger cuts in spending than those offered by President Barack Obama.

Hopes for a "grand bargain" of deficit-reduction measures vanished weeks ago as talks stalled.

While Congress has the capacity to move swiftly when motivated, the leaders of the U.S. House of Representatives and the Senate have left themselves little time for what could be a complicated day of procedural maneuvering in the event of an agreement.

House Speaker John Boehner has insisted that the Senate act first, but that chamber does not begin legislative business until about noon Monday.

OTHER BUSINESS ALSO ON AGENDA

And the cliff is not the only business on the House agenda. Farm-state lawmakers are seeking a one-year extension of the expiring U.S. farm law to head off a possible doubling of retail milk prices to $7 or more a gallon in early 2013.

Relief for victims of Superstorm Sandy is waiting in line in the House as well, though it could still consider a Senate bill on assistance for the storm until January 2, the last day of the Congress that was elected in November 2010.

Expiring along with low tax rates at midnight Monday are a raft of other tax measures effecting tens of millions of Americans.

A payroll tax holiday Americans have enjoyed for two years looks like the most certain casualty as neither Republicans or Democrats have shown much interest in continuing it, in part because the tax funds the Social Security retirement program.

The current 4.2 percent payroll tax rate paid by about 160 million workers will revert to the previous 6.2 percent rate after December 31, and will be the most immediate hit to taxpayers.

A "patch" for the Alternative Minimum Tax that would prevent millions of middle-class Americans from being taxed as if they were rich, could go over the cliff as well. Both Republicans and Democrats support doing another patch, but have not approved one.

At best, the Internal Revenue Service has warned that as many as 100 million taxpayers could face refund delays without an AMT fix. At worst, they could face higher taxes unless Congress comes back with a retroactive fix.

After Tuesday, Congress could move for retroactive relief on any or all of the tax and spending issues. But that would require compromises that Republicans and Democrats have been unwilling to make so far.

Obama said on Sunday he plans on pushing legislation as soon as January 4 to reverse the tax hikes for all but the wealthy.

(Editing by Christopher Wilson)


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Euro shares dip as fiscal cliff deadline nears

An employee of a foreign exchange trading company looks at monitors as a television set shows Japan's incoming Prime Minister and the leader of Liberal Democratic Party (LDP) Shinzo Abe speaking in Tokyo December 26, 2012. The yen fell to a 20-month low against the dollar on Wednesday, buoying the benchmark Nikkei stock average, as Japan ushers in a new prime minister eager to pursue drastic stimulus steps to drive the country's economy out of deflation. REUTERS/Yuriko Nakao

1 of 4. An employee of a foreign exchange trading company looks at monitors as a television set shows Japan's incoming Prime Minister and the leader of Liberal Democratic Party (LDP) Shinzo Abe speaking in Tokyo December 26, 2012. The yen fell to a 20-month low against the dollar on Wednesday, buoying the benchmark Nikkei stock average, as Japan ushers in a new prime minister eager to pursue drastic stimulus steps to drive the country's economy out of deflation.

Credit: Reuters/Yuriko Nakao

By Marc Jones

LONDON | Mon Dec 31, 2012 5:35am EST

LONDON (Reuters) - World stocks were set to end the year up 15 percent but dipped on Monday as U.S. politicians prepared for last-minute talks to avoid a fiscal crunch of spending cuts and tax hikes that could drag down the world economy.

In Washington, the two political parties are set to hold further talks to try and find a way to avoid the $600 billion "fiscal cliff" due to kick in from the start of January.

Senate Majority Leader Harry Reid said the Senate would resume sitting at 11 a.m. Washington time on Monday (1600 GMT), to continue discussions, but there were still significant differences between the two sides.

After a subdued day in Asia, where Japan's Nikkei as well as a number of other indexes had already shut for the year, European stock markets opened fractionally lower.

The pan-European FTSEurofirst 300, which has risen roughly 16 percent this year, was down 0.1 percent as London's FTSE and the Paris CAC 40 both started a shortened trading day in negative territory. German markets were closed.

"Volumes are very depressed and we're going to see a lot of cash off the table and investors are probably going to take profit on cyclical shares," Ishaq Siddiqi, a market strategist at ETX Capital, said.

Siddiqi said a failure to avert the "fiscal cliff" may push the FTSE back to a late November low of 5,800 in the coming sessions.

Midnight on Monday marks the deadline for a U.S. budget deal, though the government can pass legislation in 2013 that retroactively prevents going over the cliff, an option that is viewed as politically easier.

In currency markets, the U.S. dollar last stood at 85.78 yen, having retreated from Friday's high of 86.64 yen, which was the greenback's strongest level versus the Japanese currency since August 2010.

As the year draws to a close, the dollar is up about 11.9 percent against the yen, putting it on track for its biggest percentage gain versus the Japanese currency since 2005.

The euro was down 0.16 percent to $1.3192 on Monday. An agreement on the U.S. budget would be viewed as positive for riskier currencies such as the euro and Australian dollar, while a deadlock is deemed positive for the haven and highly liquid dollar.

Gold was $1,664.10 an ounce by 0810 GMT, up around 6 percent for the year and is on track for a 12th consecutive year of gains on rock-bottom interest rates, concerns over the financial stability of the euro zone, and diversification into bullion by central banks.

Oil prices slipped on Monday for a third consecutive session on the U.S. budget crisis, with failure to reach a solution seen likely to cause a large drop in fuel consumption.

Brent crude slipped 23 cents to $110.39 a barrel, but is set to post a 2.8 percent year-on-year increase in 2012, up for a fourth consecutive year.

(Additional reporting by Francesco Canepa; Editing by Giles Elgood)


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Chavez suffers new post-surgery complications

A still image taken from Venezuelan government TV broadcast shows Venezuela's Vice President Nicolas Maduro (C) talking to the media during a news conference next to Venezuelan President Hugo Chavez' daughter Rosa Virginia (L), Technology Minister Jorge Arreaza (2nd L) and Attorney General Cilia Flores (R) in Havana December 30, 2012. Chavez has suffered more complications following complex cancer surgery in Cuba and remains in a ''delicate'' condition, Maduro said on Sunday. REUTERS/Venezuelan Government TV/Handout

1 of 4. A still image taken from Venezuelan government TV broadcast shows Venezuela's Vice President Nicolas Maduro (C) talking to the media during a news conference next to Venezuelan President Hugo Chavez' daughter Rosa Virginia (L), Technology Minister Jorge Arreaza (2nd L) and Attorney General Cilia Flores (R) in Havana December 30, 2012. Chavez has suffered more complications following complex cancer surgery in Cuba and remains in a ''delicate'' condition, Maduro said on Sunday.

Credit: Reuters/Venezuelan Government TV/Handout

By Daniel Wallis

CARACAS | Sun Dec 30, 2012 10:03pm EST

CARACAS (Reuters) - Venezuelan President Hugo Chavez is suffering more complications linked to a respiratory infection that hit him after his fourth cancer operation in Cuba, his vice president said in a somber broadcast on Sunday.

Vice President Nicolas Maduro flew to Cuba to visit Chavez in the hospital as supporters' fears grew for the ailing 58-year-old socialist leader, who has not been seen in public nor heard from in three weeks.

Chavez had already suffered unexpected bleeding caused by the six-hour operation on December 11 for an undisclosed form of cancer in his pelvic area. Officials said doctors then had to fight a respiratory infection.

"Just a few minutes ago we were with President Chavez. He greeted us and he himself talked about these complications," Maduro said in the broadcast, adding that the third set of complications arose because of the respiratory infection.

"Thanks to his physical and spiritual strength, Comandante Chavez is confronting this difficult situation."

Maduro, flanked by his wife Attorney-General Cilia Flores, Chavez's daughter Rosa Virginia and her husband, Science Minister Jorge Arreaza, said he would remain in Havana while Chavez's condition evolved.

He said Chavez's condition remained "delicate" - a term he has used since the day after the surgery, when he warned Venezuelans to prepare for difficult times and urged them to keep the president in their prayers.

"We trust that the avalanche of love and solidarity with Comandante Chavez, together with his immense will to live and the care of the best medical specialists, will help our president win this new battle," Maduro said.

A senior government official in Caracas said the New Year's Eve party in the capital's central Plaza Bolivar had been canceled. "Everyone pray for strength for our comandante to overcome this difficult moment," the official, Jacqueline Faria, added on Twitter after making the announcement.

OIL-FINANCED SOCIALISM

Chavez's resignation for health reasons, or his death, would upend politics in the OPEC nation where his personalized brand of oil-financed socialism has made him a hero to the poor but a pariah to critics who call him a dictator.

His condition is being closely watched around Latin America, especially in other nations run by leftist governments, from Cuba to Bolivia, which depend on subsidized fuel shipments and other aid from Venezuela for their fragile economies.

Chavez has not provided details of the cancer that was first diagnosed in June 2011, leading to speculation among Venezuela's 29 million people and criticism from opposition leaders.

Chavez's allies have openly discussed the possibility that he may not be able to return to Venezuela to be inaugurated for his third six-year term as president on the constitutionally mandated date of January 10.

Senior "Chavista" officials have said the people's wishes were made clear when the president was re-elected in October, and that the constitution makes no provision for what happens if a president-elect cannot take office on January 10.

Opposition leaders say any postponement would be just the latest sign that Chavez is not in a fit state to govern and that new elections should be called to choose his replacement. If Chavez had to step down, new elections would be called within 30 days.

Opposition figures believe they have a better shot against Maduro, who was named earlier this month by Chavez as his heir apparent, than against the charismatic president who for 14 years has been nearly invincible at the ballot box.

Any constitutional dispute over succession could lead to a messy transition toward a post-Chavez era in the country that boasts the biggest oil reserves in the world.

Maduro has become the face of the government in Chavez's absence, imitating the president's bombastic style and sharp criticism of the United States and its "imperialist" policies.

In Sunday's broadcast, Maduro said Chavez sent New Year greetings to all Venezuelans, "especially the children, whom he carries in his heart always."

(Additional reporting by Deisy Buitrago and Mario Naranjo; Editng by Kieran Murray and Christopher Wilson)


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Sunday 30 December 2012

Obama says failure to reach fiscal deal would hurt markets

President Barack Obama delivers remarks at the White House in Washington November 28, 2012. REUTERS/Kevin Lamarque

President Barack Obama delivers remarks at the White House in Washington November 28, 2012.

Credit: Reuters/Kevin Lamarque

By Jeff Mason

WASHINGTON | Sun Dec 30, 2012 11:49am EST

WASHINGTON (Reuters) - Financial markets would be affected adversely if U.S. lawmakers fail to agree on a "fiscal cliff" deal before Tuesday, President Barack Obama said in an interview broadcast on Sunday, while urging Congress to act quickly to extend tax cuts for middle-class Americans.

Lawmakers are seeking a last-minute deal that would set aside $600 billion in tax increases and across-the-board government spending cuts that are set to start within days. If Congress does not make that happen, the first bill brought up in the new year would be to reduce taxes for middle-income families, Obama told NBC's "Meet the Press."

"Now I think that over the next 48 hours, my hope is that people recognize that, regardless of partisan differences, our top priority has to be to make sure that taxes on middle-class families do not go up. That would hurt our economy badly," Obama said in the interview taped on Saturday.

"We can get that done. Democrats and Republicans both say they don't want taxes to go up on middle-class families. That's something we all agree on. If we can get that done, that takes a big bite out of the 'fiscal cliff.' It avoids the worst outcomes," Obama added.

Low income tax rates first put in place under Republican former President George W. Bush are due to expire at the end of the day on Monday - the last day of 2012.

Obama said that failing to reach a deal would have a negative impact on financial markets.

"If people start seeing that on January 1st this problem still hasn't been solved, that we haven't seen the kind of deficit reduction that we could have had had the Republicans been willing to take the deal that I gave them ... then obviously that's going to have an adverse reaction in the markets," he said.

RARE SENATE SESSION ON SUNDAY

Obama met with congressional leaders at the White House on Friday and declared himself cautiously optimistic about the chances of an agreement, but he noted in the interview that nothing had materialized since then.

"I was modestly optimistic yesterday, but we don't yet see an agreement. And now the pressure's on Congress to produce," he said.

The Senate is scheduled to hold a rare Sunday session beginning at 1 p.m. EST (1800 GMT), but it was not clear whether the chamber would have fiscal-cliff legislation to act upon.

Obama sketched out what he believed to be the most likely scenarios the end the back-and-forth between both sides. Either the congressional leaders would come up with a deal, or Democrats in the Senate would bring a bill to the floor seeking an up-or-down vote to extend tax cuts for middle income earners.

"And if all else fails, if Republicans do in fact decide to block it, so that taxes on middle class families do in fact go up on January 1st, then we'll come back with a new Congress on January 4th and the first bill that will be introduced on the floor will be to cut taxes on middle class families," he said.

Obama chided Republicans for resisting his call for tax rates to go up for the top two percent of U.S. earners despite what he viewed as significant compromises on his part to cut spending and reform expensive social programs for the poor and elderly.

"They say that their biggest priority is making sure that we deal with the deficit in a serious way, but the way they're behaving is that their only priority is making sure that tax breaks for the wealthiest Americans are protected. That seems to be their only overriding, unifying theme," Obama said.

"The offers that I've made to them have been so fair that a lot of Democrats get mad at me. I mean I offered to make some significant changes to our entitlement programs in order to reduce the deficit," he said.

(Reporting by Jeff Mason; Editing by David Brunnstrom)


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Approaching comet may outshine the moon

* Comet ISON discovered in September

* Could be brightest comet in decades

By Irene Klotz

Dec 28 (Reuters) - A comet blazing toward Earth could outshine the full moon when it passes by at the end of next year - if it survives its close encounter with the sun.

The recently discovered object, known as comet ISON, is due to fly within 1.2 million miles (1.9 million km) from the center of the sun on Nov. 28, 2013 said astronomer Donald Yeomans, head of NASA's Near Earth Object Program at the Jet Propulsion Laboratory in Pasadena, Calif.

As the comet approaches, heat from the sun will vaporize ices in its body, creating what could be a spectacular tail that is visible in Earth's night sky without telescopes or even binoculars from about October 2013 through January 2014.

If the comet survives, that is.

Comet ISON could break apart as it nears the sun, or it could fail to produce a tail of ice particles visible from Earth.

Celestial visitors like Comet ISON hail from the Oort Cloud, a cluster of frozen rocks and ices that circle the sun about 50,000 times farther away than Earth's orbit. Every so often, one will be gravitationally bumped out from the cloud and begin a long solo orbit around the sun.

On Sept. 21, two amateur astronomers from Russia spotted what appeared to be a comet in images taken by a 16-inch (0.4-meter) telescope that is part of the worldwide International Scientific Optical Network, or ISON, from which the object draws its name.

"The object was slow and had a unique movement. But we could not be certain that it was a comet because the scale of our images are quite small and the object was very compact," astronomer Artyom Novichonok, one of the discoverers, wrote in a comets email list hosted by Yahoo.

Novichonok and co-discoverer Vitali Nevski followed up the next night with a bigger telescope at the Maidanak Observatory in Uzbekistan. Other astronomers did likewise, confirming the object, located beyond Jupiter's orbit in the constellation Cancer, was indeed a comet.

"It's really rare, exciting," Novichonok wrote.

Comet ISON's path is very similar to a comet that passed by Earth in 1680, one which was so bright its tail reportedly could be seen in daylight.

The projected orbit of comet ISON is so similar to the 1680 comet that some scientists are wondering if they are fragments from a common parent body.

"Comet ISONcould be the brightest comet seen in many generations - brighter even than the full moon," wrote British astronomer David Whitehouse in The Independent.

In 2013, Earth has two shots at a comet show. Comet Pan-STARRS is due to pass by the planet in March, eight months before ISON's arrival.

NASA's Mars Curiosity rover may be able to provide a preview.

Comet ISON is due to pass by the red planet in September and could be a target for the rover from its vantage point inside Gale Crater.

The last comet to dazzle Earth's night-time skies was Comet Hale-Bopp, which visited in 1997. Comet 17P/Holmes made a brief appearance in 2007. (Editing by Kevin Gray and Leslie Gevirtz)


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Michigan hospital blazes trail in fight against fungal meningitis

Bonita Robbins (L ), a patient suffering with arachnoiditis due to a contaminated steroid injection, sits on her hospital bed as she and her husband Ed (C ) listen to Infectious Diseases doctor Anurag Malani at St. Joseph Mercy Ann Arbor hospital in Ypsilanti, Michigan December 21, 2012. St. Joseph Mercy -- a 537-bed Catholic hospital located on the doorstep of the University of Michigan -- has played an outsized role in the fight against one of the largest fungal meningitis outbreaks in US history, treating 169 of the state's 223 cases, including 7 people who died. REUTERS/Rebecca Cook

1 of 8. Bonita Robbins (L ), a patient suffering with arachnoiditis due to a contaminated steroid injection, sits on her hospital bed as she and her husband Ed (C ) listen to Infectious Diseases doctor Anurag Malani at St. Joseph Mercy Ann Arbor hospital in Ypsilanti, Michigan December 21, 2012. St. Joseph Mercy -- a 537-bed Catholic hospital located on the doorstep of the University of Michigan -- has played an outsized role in the fight against one of the largest fungal meningitis outbreaks in US history, treating 169 of the state's 223 cases, including 7 people who died.

Credit: Reuters/Rebecca Cook

By Julie Steenhuysen

CHICAGO | Sun Dec 30, 2012 7:04am EST

CHICAGO (Reuters) - After his first day working at St Joseph Mercy Ann Arbor hospital's newly created Fungal Outbreak Clinic, Dr David Vandenberg struggled to describe to his boss the enormity of what lay ahead. He settled on a line from the movie Jaws.

"We're going to need a bigger boat," Vandenberg told Dr Lakshmi Halasyamani, chief medical officer of the Michigan hospital, echoing the film's local police chief after he first eyes a 25-foot (7.5-metre) killer shark.

The St Joseph Mercy clinic has been at the front line of the fight against one of the biggest ever U.S. outbreaks of fungal meningitis, a killer infection that has been traced to tainted steroid shots from a Massachusetts pharmacy.

So far, 620 Americans have developed serious infections related to the outbreak, including 367 cases of deadly meningitis, and 39 people have died. Of the 19 U.S. states affected, Michigan has been worst hit, handling more than one third of the total cases in the outbreak.

St Joseph Mercy - a 537-bed Catholic hospital located in Ypsilanti, on the doorstep of the University of Michigan - has treated 169 of the state's 223 cases of infections that can cause meningitis, including 7 people who died.

At one point it was so overrun that 87 of its 537 beds, which are usually occupied by patients with cancer or heart ailments and the like, were occupied by patients with fungal meningitis and related infections.

Dr Tom Chiller, the fungal disease expert at the U.S. Centers for Disease Control and Prevention, who has been overseeing the outbreak, praised the work of the hospital in helping to limit deaths from the outbreak.

"They have been incredibly creative in dealing with these complicated patients," he said.

In all, almost 14,000 people seeking relief from back and joint pain received injections from moldy steroid shots made at the now-bankrupt New England Compounding Center in Massachusetts before they were recalled in late September.

CDC experts initially feared death rates in the 40 to 50 percent range; instead, only about 6 percent of those infected have died, and the CDC credits the creative and dogged efforts of state and local health officials for keeping the death rates so low.

The first wave of the outbreak involved the most severe cases of meningitis - an inflammation of the membranes that cover the brain and spinal cord. But starting in mid-October, patients who had been recovering from meningitis were developing potentially fatal localized infections near the site where contaminated drug was injected to treat back or neck pain.

As they started seeing more cases of these local, secondary infections, the staff at St Joseph's devised a bold plan to screen all patients in their database looking for potential new infections that might have been missed in the first wave.

On December 20, the CDC issued an alert to doctors incorporating some of lessons learned by the efforts of doctors at St Joseph's and other hospitals, calling for increased screening of patients who may be harboring localized infections.

A BEWILDERING FUNGI

Among the patients who developed secondary infections was Bonita Robbins, a 72-year-old retired nurse from Pinckney, Michigan, who received doses of the tainted drug at the Michigan Pain Specialists clinic in the nearby town of Brighton while seeking relief for lower-back pain.

The first shot brought some relief, the second did little to ease her aches, and the third was contaminated. In October, Robbins went to St Joseph's with a severe headache, back pain and pain in her thighs.

She spent 37 days in the hospital taking two kinds of antifungal drugs.

Dr Anurag Malani, an infectious disease specialist treating Robbins, said the challenge with the outbreak was that there was no medical literature to fall back on.

"No one has ever seen anything of this magnitude related to fungal infections, ever," he said.

Chiller said U.S. doctors had never treated meningitis caused by Exserohilum rostratum, the environmental mold causing most of the infections.

"It's just a rare, rare cause of infection." Seeing that mold in the meninges - membranes covering the brain and spinal cord - is "completely new."

Initially, St Joseph's Fungal Outbreak Clinic was started in order to coordinate the care of patients after their discharge, which included overseeing the administration of a complex regime of anti-fungal drugs.

It morphed into something bigger when some of its 53 patients with meningitis started returning with infections near the site in their back or neck where the contaminated drug was injected.

Then came a wave of patients like Robbins, who had been ruled out for meningitis with a spinal tap, but were still complaining of pain near their injection site.

GETTING THE 'BIGGER BOAT'

"When it became obvious that the number of patients would be a much higher percentage than anticipated by the CDC, we expanded our clinic and started enlisting the help of several other hospitals," Vandenberg said.

Many of the patients had spinal abscesses, an infection in the space between the outside covering of the spinal cord and the bones of the spine. Others developed arachnoiditis, an infection of nerves within the spinal canal.

The decision to screen all patients in the hospital database who might have received tainted injections was not taken at the recommendation of the CDC.

"That was our own decision," said Vandenberg, a specialist in internal medicine overseeing the screening effort.

He admitted that the strategy was aggressive, but said that, especially early on, doctors feared the local infections might be precursors to meningitis, making catching them early a potentially life-saving move.

Excluding patients who had already been screened and those who had injections in areas other than the spine, the hospital targeted about 500 patients for MRI scans.

Most so far have had private insurance that covers the screening. For the uninsured, the hospital's Patient Financial Services department has been helping them to apply for financial support.

"We did over 400 MRIs in about a 4-week period," Vandenberg said. The hospital screened so many patients, in fact, that the state of Michigan sent in an emergency mobile MRI unit to help.

Vandenberg got the task of reading stacks of MRI reports, sometimes as many as 30 a day.

So far, about 20 percent of the MRIs have shown up as abnormal, meaning that patients have to come back for surgery and treatment.

Vandenberg makes all of those calls personally. Not all of them go smoothly. He likens the gravity of the conversation - learning you have a potentially deadly new disease that requires months of treatment with risky drugs - to telling someone they have cancer.

After one especially tough call, in which a heart patient feared he would not survive the surgery he would need to clear his infection, Vandenberg cracked.

"I started crying. I probably haven't cried for 15 years."

SIGNS OUTBREAK IS EASING

But at last, after months of onslaught, there are signs the outbreak is easing.

Attendance at the hospital's daily support group has begun to taper off. And since the beginning of December, more than 50 patients with fungal infections have been discharged, while only 20 have been admitted, bringing the total number of fungus-related inpatient to 30.

Vandenberg nevertheless cautions that the outbreak is still far from over.

"Every single day of this screening program, we're finding one or two cases that are abnormal and need to be admitted," he said.

Vandenberg gave the CDC access to the clinic's database so the agency could see how the effort turned out, and this month, the CDC issued the alert to doctors incorporating some of the results of the MRI screening program.

The alert warned that some patients who got tainted injections but did not develop meningitis may still be at risk of localized infections.

And it urged doctors to consider ordering an MRI for all patients who still have pain, even if the pain is similar to what sent them in for treatment in the first place.

Chiller said the United States had not yet reached the end of the outbreak.

"Unfortunately, with fungi, the incubation periods are so long and they can remain indolent. I'm definitely concerned that we're going to continue to see more cases."

(Reporting by Julie Steenhuysen; Editing by Jilian Mincer, Mary Milliken and David Brunnstrom)


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U.S. plane stuck in Iran for repairs after emergency landing

DUBAI | Sun Dec 30, 2012 3:46am EST

DUBAI (Reuters) - A small U.S. commercial plane has been stuck in Iran for nearly three weeks after making an emergency landing near the city of Ahvaz, the country's airports director said on Sunday.

The plane was forced to land because of technical problems, Mahmoud Rasoulinejad said, quoted by the Mehr news agency.

"After landing, the crew traveled on to countries around the Persian Gulf and the plane is currently being repaired," he said.

Rasoulinejad did not specify who owned the aircraft, where it was headed or the nationality of the crew members. It would soon be ready to return to the skies, he said.

Ahvaz lies near Iran's border with Iraq in the southwest of Iran, an important area for the country's oil industry.

Earlier this month Iran trumpeted the capture of a compact U.S. intelligence ScanEagle drone in its airspace, which U.S. officials have denied.

In December 2011 Iranian forces announced they had captured a U.S. RQ-170 reconnaissance drone in eastern Iran which had been reported lost by U.S. forces in neighboring Afghanistan.

(Reporting By Marcus George; Editing by Angus MacSwan)


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Wall Street ends sour week with fifth straight decline

Traders work the floor at the New York Stock Exchange in New York, December 26, 2012. REUTERS/Eduardo Munoz

Traders work the floor at the New York Stock Exchange in New York, December 26, 2012.

Credit: Reuters/Eduardo Munoz

By Ryan Vlastelica

NEW YORK | Fri Dec 28, 2012 10:14pm EST

NEW YORK (Reuters) - Stocks fell for a fifth straight day on Friday, dropping 1 percent and marking the S&P 500's longest losing streak in three months as the federal government edged closer to the "fiscal cliff" with no solution in sight.

President Barack Obama and top congressional leaders met at the White House to work on a solution for the draconian debt-reduction measures set to take effect beginning next week. Stocks, which have been influenced by little else than the flood of fiscal cliff headlines from Washington in recent days, extended losses going into the close with the Dow Jones industrial average and the S&P 500 each losing 1 percent, after reports that Obama would not offer a new plan to Republicans. The Dow closed below 13,000 for the first time since December 4.

"I was stunned Obama didn't have another plan, and that's absolutely why we sold off," said Mike Shea, managing partner at Direct Access Partners LLC in New York. "He's going to force the House to come to him with something different. I think that's a surprise. The entire market is disappointed in a lack of leadership in Washington."

In a sign of investor anxiety, the CBOE Volatility Index .VIX, known as the VIX, jumped 16.69 percent to 22.72, closing at its highest level since June. Wall Street's favorite fear barometer has risen for five straight weeks, surging more than 40 percent over that time.

The Dow Jones industrial average .DJI dropped 158.20 points, or 1.21 percent, to 12,938.11 at the close. The Standard & Poor's 500 Index .SPX lost 15.67 points, or 1.11 percent, to 1,402.43. The Nasdaq Composite Index .IXIC fell 25.59 points, or 0.86 percent, to end at 2,960.31.

For the week, the Dow fell 1.9 percent. The S&P 500 also lost 1.9 percent for the week, marking its worst weekly performance since mid-November. The Nasdaq finished the week down 2 percent. In contrast, the VIX jumped 22 percent for the week.

Pessimism continued after the market closed, with stock futures indicating even steeper losses. S&P 500 futures dropped 26.7 points, or 1.9 percent, eclipsing the decline seen in the regular session.

All 10 S&P 500 sectors fell during Friday's regular trading, with most posting declines of 1 percent, but energy and material shares were among the weakest of the day, with both groups closely tied to the pace of growth.

An S&P energy sector index .GSPE slid 1.8 percent, with Exxon Mobil (XOM.N) down 2 percent at $85.10, and Chevron Corp (CVX.N) off 1.9 percent at $106.45. The S&P material sector index .GSPM fell 1.3 percent, with U.S. Steel Corp (X.N) down 2.6 percent at $23.03.

Decliners outnumbered advancers by a ratio of slightly more than 2 to 1 on the New York Stock Exchange, while on the Nasdaq, two stocks fell for every one that rose.

"We've been whipsawing around on low volume and rumors that come out on the cliff," said Eric Green, senior portfolio manager at Penn Capital Management in Philadelphia, who helps oversee $7 billion in assets.

With time running short, lawmakers may opt to allow the higher taxes and across-the-board federal spending cuts to go into effect and attempt to pass a retroactive fix soon after the new year. Standard & Poor's said an impasse on the cliff wouldn't affect the sovereign credit rating of the United States.

"We're not as concerned with January 1 as the market seems to be," said Richard Weiss, senior money manager at American Century Investments, in Mountain View, California. "Things will be resolved, just maybe not on a good timetable, and any deal can easily be retroactive."

Trading volume was light throughout the holiday-shortened week, with just 4.46 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT on Friday, below the daily average so far this year of about 6.48 billion shares. On Monday, the U.S. stock market closed early for Christmas Eve, and the market was shut on Tuesday for Christmas. Many senior traders were absent this week for the holidays.

Highlighting Wall Street's sensitivity to developments in Washington, stocks tumbled more than 1 percent on Thursday after Senate Majority Leader Harry Reid warned that a deal was unlikely before the deadline. But late in the day, stocks nearly bounced back when the House said it would hold an unusual Sunday session to work on a fiscal solution.

Positive economic data failed to alter the market's mood.

The National Association of Realtors said contracts to buy previously owned U.S. homes rose in November to their highest level in 2-1/2 years, while a report from the Institute for Supply Management-Chicago showed business activity in the U.S. Midwest expanded in December.

"Economic reports have been very favorable, and once Congress comes to a resolution, the market should resume an upward trend, based on the data," said Weiss, who helps oversee about $125 billion in assets. "All else being equal, we see any further decline as a buying opportunity."

Barnes & Noble Inc (BKS.N) rose 4.3 percent to $14.97 after the top U.S. bookstore chain said British publisher Pearson Plc (PSON.L)(PSO.N) had agreed to make a strategic investment in its Nook Media subsidiary. But Barnes & Noble also said its Nook business will not meet its previous projection for fiscal year 2013.

Shares of magicJack VocalTec Ltd (CALL.O) jumped 10.3 percent to $17.95 after the company gave a strong fourth-quarter outlook and named Gerald Vento president and chief executive, effective January 1.

The U.S.-listed shares of Canadian drugmaker Aeterna Zentaris Inc (AEZ.TO)(AEZS.O) surged 13.8 percent to $2.47 after the company said it had reached an agreement with the U.S. Food and Drug Administration on a special protocol assessment by the FDA for a Phase 3 registration trial in endometrial cancer with AEZS-108 treatment.

(Reporting by Ryan Vlastelica; Editing by Jan Paschal)


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Senate leaders work to avoid New Year's "fiscal cliff"

Senate Majority Leader Harry Reid (D-NV) (2nd L) walks with unidentified aides and security to his office at the U.S. Capitol after returning from a meeting with President Barack Obama at the White House in Washington December 28, 2012. REUTERS/Mary Calvert

1 of 12. Senate Majority Leader Harry Reid (D-NV) (2nd L) walks with unidentified aides and security to his office at the U.S. Capitol after returning from a meeting with President Barack Obama at the White House in Washington December 28, 2012.

Credit: Reuters/Mary Calvert

By Richard Cowan and Rachelle Younglai

WASHINGTON | Sat Dec 29, 2012 7:22pm EST

WASHINGTON (Reuters) - Congressional negotiators burrowed into their offices on Saturday to see if they could stop the U.S. economy from falling off of a "fiscal cliff" in just three days when the biggest tax increases ever to hit Americans in one shot are scheduled to begin.

Aides to Senate Majority Leader Harry Reid, a Democrat, and Senate Republican leader Mitch McConnell worked through the day on a possible compromise that would set aside $600 billion in tax increases and across-the-board government spending cuts that are set to kick in next week.

A variety of lower taxes are scheduled to expire at the end of Monday, the last day of the year. If allowed to rise, the approximately $500 billion value of the revenue increases would represent a historic hike when taken together.

The combined punch of the tax increases and spending cuts could push the U.S. economy back into recession.

"We're now at the point where, in just a couple days, the law says that every American's tax rates are going up. Every American's paycheck will get a lot smaller. And that would be the wrong thing to do for our economy," President Barack Obama said in his weekly radio and Internet address, which was broadcast on Saturday.

McConnell left the U.S. Capitol after spending seven hours in his office. "We've been trading paper all day and talks continue into the evening," he told reporters on his way out.

A source with knowledge of the talks, speaking on condition of anonymity, said: "We are still very far apart with almost no time left on the clock."

TEMPORARY PATCHES

One congressional aide close to the talks said that most of what was being discussed late on Saturday would provide temporary patches to the "fiscal cliff" dilemma. The negotiations, the aide said, likely could extend into Sunday.

"They continue to go round and round," the aide said of the negotiations, with ideas constantly in flux.

The aide, who asked not to be identified, said negotiators were discussing the possibility of putting off for a few months the $109 billion in automatic spending cuts due to start on Wednesday. Those cuts would be divided equally between military and non-military programs. It is feared that they could cause severe disruptions inside federal agencies if allowed to occur.

Earlier this week, talk of a temporary delay in the spending cuts was met with derision by some congressional aides.

The extension of the low income tax rates first put in place under Republican former President George W. Bush would also be on a temporary basis, probably one year, the aide said.

No deal had been reached on the most difficult question: Democrats' demand that upper-income earners - families making more than $250,000 a year - see their tax rates go up.

Republicans had been opposed to any rate increase, but lately have signaled a willingness to go along with a higher threshold - and a $400,000 figure has been floating around for days.

Under proposals being discussed, top earners could see their income tax rate rise to 39.6 percent, from the current 35 percent, in order to help tame budget deficits.

The aide added that Republicans still had not agreed to Obama's call for extending long-term unemployment benefits, but that they were demanding some spending cuts to be included in a stop-gap deal.

Disagreements over what to do about low estate taxes that are expiring also had not been worked out, the aide said.

Unless Congress acts, the tax is set to jump on Tuesday - the first day of 2013 - to 55 percent with the first $1 million exempted for individuals. Currently, there is a 35 percent tax and a $5 million exemption.

A Senate Republican leadership aide said that it might not be known until sometime on Sunday whether these talks bear fruit. That is when the leaders are expected to brief their rank-and-file members.

The Senate is scheduled to hold a rare Sunday session beginning at 1 p.m. EST (1800 GMT), but it was not clear whether the chamber would have "fiscal cliff" legislation to act upon.

One Democratic aide was pessimistic that McConnell would come up with a counteroffer that Reid would find acceptable. Such a counteroffer would have to be calibrated in a way that also could attract votes from conservative House of Representatives Republicans, many of whom have balked at tax rate increases on anyone.

'HARD TO SEE'

A senior House Republican aide on Saturday voiced pessimism about prospects for a deal.

"It's hard to see Reid agreeing to anything that can get the votes of the majority of the (Republican) majority in the House, thereby allowing a bipartisan accomplishment," the aide said. A "majority of the majority" refers to the 241 Republicans who are in the 435-member House.

The Republican aide placed the blame squarely on Democrats, as many Republican members have done publicly, saying that going off the "fiscal cliff" is a "policy upside" for them. "Higher taxes, devastating defense cuts. The polls tell them they can win the PR (publican relations) war in January. From their perspective, why stop the cliff dive?"

Democrats, in turn, have publicly accused House Speaker John Boehner, the top Republican in Congress, of preferring to put off any tough "fiscal cliff" votes until after a January 3 House election in which he is expected to win another two-year term as speaker.

If McConnell and Reid can manage to reach a deal on inheritance taxes and raising income tax rates on the wealthiest Americans, they likely would throw into the compromise some other "fiscal cliff" solutions.

Those could include extending an array of other expiring tax breaks such as one that encourages companies to conduct research and development. Also, Congress wants to prevent a steep pay-cut in January for doctors who treat elderly patients under the Medicare health insurance program.

Lawmakers also want to prevent middle-class taxpayers from inadvertently creeping into a higher tax bracket, known as the alternative minimum tax, intended for the wealthiest.

If the Reid-McConnell effort fails, Obama has asked the Senate to hold a vote on Monday on a "basic package" that would stop taxes from going up on the middle class and would extend long-term unemployment benefits that are about to expire. If it passes the Senate, its fate would be in the hands of the Republican-controlled House.

(Additional reporting by Thomas Ferraro and Jeff Mason; Editing by Will Dunham)


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Western movie character actor Harry Carey Jr. dies at 91

By Alex Dobuzinskis

LOS ANGELES | Fri Dec 28, 2012 10:56pm EST

LOS ANGELES (Reuters) - Veteran character actor Harry Carey Jr., who appeared in scores of television shows and films including nine of famed movie director John Ford's classic Hollywood Westerns, has died at age 91, his family said on Friday.

Carey, a frequent supporting player in films starring John Wayne, died peacefully of natural causes on Thursday morning in the seaside town of Santa Barbara, California, surrounded by family members, said his daughter, Melinda Carey.

"No cancer or nothing, he just got old," she said of her father, who is survived by his wife of 68 years, Marilyn, and three adult children.

Carey's more notable big-screen credits included a co-starring role with John Wayne in Ford's 1948 outlaw film "3 Godfathers," the role of a young cavalry officer in Ford's 1949 western "She Wore a Yellow Ribbon," also with Wayne, and a turn decades later in a saloon scene in the 1990 sci-fi comedy "Back to the Future Part III."

In all, he made 11 movie appearances with Wayne.

Among other Ford-directed films in which Carey appeared were "The Searchers" (1956), "Wagon Master" (1950) and "Rio Grande" (1950).

In addition to a prodigious movie career that encompassed more than 90 films, Carey was a fixture on television during an era when westerns proliferated on the small screen, popping up in various character roles on such prime-time hits as "Bonanza," "Gunsmoke" and "Wagon Train" in the 1960s and 1970s.

In the 1950s, he had a recurring role in "The Adventures of Spin and Marty," a series of TV shorts that aired as part of "The Mickey Mouse Club."

Carey was born in 1921, the son of silent film star Harry Carey and his wife, Olive, who also was an actress.

The young Carey was raised among cattle and horses on his parents' 1,000-acre ranch in California's Santa Clarita Valley, north of Los Angeles, and he earned the nickname "Dobe" because his hair color was the hue of the ranch's reddish adobe clay. Even late in life, he went by that nickname.

THE JOHN FORD STOCK COMPANY

The family's affiliation with Ford dated back to the director's earliest westerns, with Carey's father appearing in some of Ford's silent films in 1917.

During World War Two, the younger Carey worked with Ford on training and propaganda films for the U.S. military. He went on to become a regular performer, along with his father, in the John Ford Stock Company - actors and crew members who Ford used repeatedly in his films. Carey Jr. was reported to be the last surviving member of Ford's stock company.

Carey's first feature collaboration with Ford in "3 Godfathers," playing the Abilene Kid, saw Carey, Wayne and Mexican-born actor Pedro Armendariz co-star as cattle rustlers and bank robbers who care for an orphaned baby boy while dodging the law. Carey's father starred in the original 1919 version, also directed by Ford.

Carey began his association with Wayne in another 1948 release, the classic Howard Hawks Western movie "Red River," which also starred the elder Carey, though father and son had no scenes together.

Among Carey's last screen appearances were his turn as a U.S. marshal in the 1993 film "Tombstone," which starred Val Kilmer and Kurt Russell, and a supporting role in the 1997 TV movie "Last Stand at Saber River," which starred Tom Selleck.

The Carey family ranch, which was visited over the years by Wayne and fellow actors William S. Hart and Gary Cooper, has been turned into a Los Angeles County historic park called Tesoro Adobe.

Laurene Weste, city councilwoman in Santa Clarita, said Carey Jr. remains a beloved figure in the area where the family ranch was once so prominent. "He was just a wonderful, loving, kind, down-to-Earth man," she said.

(Additional reporting by Steve Gorman; Editing by Will Dunham)


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Body of India rape victim arrives home in New Delhi

Vehicles carrying mourners and officials leave a cremation ground after attending the funeral of a rape victim in New Delhi December 30, 2012. REUTERS/Danish Siddiqui

1 of 25. Vehicles carrying mourners and officials leave a cremation ground after attending the funeral of a rape victim in New Delhi December 30, 2012.

Credit: Reuters/Danish Siddiqui

By Adnan Abidi and Devidutta Tripathy

NEW DELHI | Sun Dec 30, 2012 3:19am EST

NEW DELHI (Reuters) - The body of a woman whose gang rape provoked protests and rare national debate about violence against women in India arrived back in New Delhi early on Sunday and was quickly cremated at a private ceremony.

The unidentified 23-year-old medical student died from her injuries on Saturday, prompting promises of action from a government that has struggled to respond to public outrage.

She had suffered brain injuries and massive internal injuries in the attack on December 16, and died in hospital in Singapore where she had been taken for treatment.

She and a male friend had been returning home from the cinema, media reports say, when six men on a bus beat them with metal rods and repeatedly raped the woman. The friend survived.

Six suspects were charged with murder after her death.

A Reuters correspondent saw family members who had been with her in Singapore take her body from the airport to their Delhi home in an ambulance with a police escort.

Ruling party leader Sonia Gandhi was seen arriving at the airport when the plane landed and Prime Minister Mannmohan Singh's convoy was also there, the witness said.

The body was then taken to a crematorium and cremated. Media were kept away but a Reuters witness saw the woman's family, New Delhi's chief minister, Sheila Dikshit, and the junior home minister, R P N Singh, coming out of the crematorium.

Security in the capital remained tight after authorities, worried about the reaction to the news of her death, had on Saturday deployed thousands of policemen and closed some roads and metro stations.

Protesters still gathered, in New Delhi and other cities, to keep the pressure on Singh's government to get tougher on crime against women. Last weekend, protesters fought pitched battles with police.

On Sunday, lines of policemen in riot gear and armed with heavy wooden sticks stood in front of metal barricades closing off roads in New Delhi. Morning traffic was light.

DOUBTS

The outcry over the attack caught the government off-guard. It took a week for Singh to make a statement, infuriating many protesters.

Issues such as rape, dowry-related deaths and female infanticide rarely enter mainstream political discourse in India.

Analysts say the death of the woman dubbed "Amanat", an Urdu word meaning "treasure", by some Indian media could change that, although it is too early to say whether the protesters calling for government action to better safeguard women can sustain their momentum through to national elections due in 2014.

Newspapers raised doubts about the commitment of both male politicians and the police to protecting women.

"Would the Indian political system and class have been so indifferent to the problem of sexual violence if half or even one-third of all legislators were women?" the Hindu newspaper asked.

The Indian Express acknowledged the police force was understaffed and poorly paid, but there was more to it than that.

"It is geared towards dominating citizens rather than working for them, not to mention being open to influential interests," the newspaper said. "It reflects the misogyny around us, rather than actively fighting for the rights of citizens who happen to be female."

Most sex crimes in India go unreported, many offenders go unpunished, and the wheels of justice turn slowly, according to social activists, who say that successive governments have done little to ensure the safety of women.

Commentators and sociologists say the rape has tapped into a deep well of frustration many Indians feel over what they see as weak governance and poor leadership on social issues.

New Delhi has the highest number of sex crimes among India's major cities, with a rape reported on average every 18 hours, according to police figures. Government data show the number of reported rape cases in India rose by nearly 17 percent between 2007 and 2011.

For a link to the poll, click here

(Additional reporting by Ross Colvin and Diksha Madhok; Writing by Louise Ireland; Editing by Kevin Liffey and Robert Birsel)


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French court rejects 75 percent millionaires' tax

France's President Francois Hollande speaks at a news conference at the end of the first session of a two-day European Union (EU) leaders summit in Brussels October 19, 2012. REUTERS/Christian Hartmann

France's President Francois Hollande speaks at a news conference at the end of the first session of a two-day European Union (EU) leaders summit in Brussels October 19, 2012.

Credit: Reuters/Christian Hartmann

By Emile Picy and Catherine Bremer

PARIS | Sat Dec 29, 2012 11:25am EST

PARIS (Reuters) - France's Constitutional Council on Saturday rejected a 75 percent upper income tax rate to be introduced in 2013 in a setback to Socialist President Francois Hollande's push to make the rich contribute more to cutting the public deficit.

The Council ruled that the planned 75 percent tax on annual income above 1 million euros ($1.32 million) - a flagship measure of Hollande's election campaign - was unfair in the way it would be applied to different households.

Prime Minister Jean-Marc Ayrault said the government would redraft the upper tax rate proposal to answer the Council's concerns and resubmit it in a new budget law, meaning Saturday's decision could only amount to a temporary political blow.

While the tax plan was largely symbolic and would only have affected a few thousand people, it has infuriated high earners in France, prompting some such as actor Gerard Depardieu to flee abroad. The message it sent also shocked entrepreneurs and foreign investors, who accuse Hollande of being anti-business.

Finance Minister Pierre Moscovici said the rejection of the 75 percent tax and other minor measures could cut up to 500 million euros in forecast tax revenues but would not hurt efforts to slash the public deficit to below a European Union ceiling of 3 percent of economic output next year.

"The rejected measures represent 300 to 500 million euros. Our deficit-cutting path will not be affected," Moscovici told BFM television. He too said the government would resubmit a proposal to raise taxes on high incomes in 2013 and 2014.

The Council, made up of nine judges and three former presidents, is concerned the tax would hit a married couple where one partner earned above a million euros but it would not affect a couple where each earned just under a million euros.

UMP member Gilles Carrez, chairman of the National Assembly's finance commission, told BFM television, however, that the Council's so-called wise men also felt the 75 percent tax was excessive and too much based on ideology.

FRANCE UNDER SCRUTINY

Hollande shocked many by announcing his 75 percent tax proposal out of the blue several weeks into a campaign that some felt was flagging. Left-wing voters were cheered by it but business leaders warned that talent would flee the country.

Set to be a temporary measure until France is out of economic crisis, the few hundred million euros a year the tax was set to raise is a not insignificant sum as the government strives to boost public finances in the face of stalled growth.

Hollande's 2013 budget calls for the biggest belt-tightening effort France has seen in decades and is based on a growth target of 0.8 percent, a level analysts view as over-optimistic.

Fitch Ratings this month affirmed its triple-A rating on France but said there was no room for slippage. Standard & Poor's and Moody's have both stripped Europe's No. 2 economy of its AAA badge due to concern over strained public finances and stalled growth.

The International Monetary Fund recently forecast that France will miss its 3 percent deficit target next year and signs are growing that Paris could negotiate some leeway on the timing of that goal with its EU partners.

The INSEE national statistics institute this week scaled back its reading of a return to growth in the third quarter to 0.1 percent from 0.2 percent, and the government said it could review its 2013 outlook in the next few months.

Saturday's decision was in response to a motion by the opposition conservative UMP party, whose weight in fighting Hollande's policies has been reduced by a leadership crisis that has split it in two seven months after it lost power.

The Constitutional Council is a politically independent body that rules on whether laws, elections and referenda are constitutional.

($1 = 0.7564 euros)

(Reporting by Emile Picy; Writing by Catherine Bremer; Editing by Alison Williams)


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Passengers on Queen Mary 2 sickened by unidentified pathogen

By Sharon Begley

NEW YORK | Fri Dec 28, 2012 6:05pm EST

NEW YORK (Reuters) - An unknown illness, suspected of being a norovirus, has sickened 194 passengers and 11 crew members aboard the luxury cruise ship Queen Mary 2, causing vomiting and diarrhea, federal health officials said on Friday.

Earlier in the week, 189 passengers and 31 crew members on the Emerald Princess came down with the same symptoms.

The symptoms are those of norovirus, a contagious microorganism that can be acquired from an infected person, contaminated food or water, or by touching contaminated surfaces, according to the U.S. Centers for Disease Control and Prevention.

Norovirus causes an inflammation of the stomach or intestines called acute gastroenteritis, producing stomach pain, nausea and diarrhea, and is the most common cause of acute gastroenteritis in the United States.

Each year, norovirus causes some 21 million illnesses, of which 70,000 require hospitalization. It kills about 800 people a year, the CDC says.

The Queen Mary 2, with 2,613 passengers and 1,255 crew members, is now docked in Saint Lucia in the Caribbean, according to ship owner Cunard Line, which is owned by Carnival Corp. The cruise left Brooklyn, New York, last Saturday and is due to return there next Thursday.

The CDC learned of the illnesses on the QM2 on Christmas Day on Tuesday, and of those on the Emerald Princess last Saturday. Vessels are required to notify the agency when 2 percent of those on board develop a gastrointestinal illness.

Although the microbial culprit remains unclear In both cases, another reason to suspect norovirus is that the pathogen "has affected a number of schools, hospitals, nursing homes and children's day care centers this winter" in the United Kingdom, Cunard said in a statement.

The UK's Health Protection Agency reports that norovirus activity in the country is 83 per cent higher than last year.

The QM2 sails regularly scheduled crossings between New York and Southampton, England, between April and late November, Cunard spokeswoman Jackie Chase said in an email. "In addition, many of our guests come from the UK."

The QM2's captain is advising passengers with gastrointestinal symptoms to report to the medical center, Chase said. Those sickened are asked to "isolate themselves in their cabin until non-contagious. They are also asked not to proceed ashore, and any shore excursion costs will be refunded. Room service is provided to affected passengers and every effort is made to make them as comfortable as possible."

Of the 194 QM2 passengers who had fallen sick, said Chase, all but 12 had recovered as of Friday.

'NOROVIRUS ACTIVE ON BOARD'

In a post on the message board cruisecritic.com on Wednesday, a woman who said her daughter was on the QM2 said she "just received a message from her indicating that the Norovirus is active on board."

On Thursday, someone reporting being on the ship posted that "the restaurants are still full. The Captain last night recommended that people take all of their meals in the full-service restaurants rather than the buffet, but the buffet remains open as of this morning. We've been kept informed daily of the persistent cases."

Another post said: "The crew are working like crazy to service all the guests. At lunch today I noticed the hand rails on the promenade deck were wiped three times in about 1 hour."

In response to the outbreak, the QM2 crew has increased cleaning and disinfection procedures, the CDC said, and is asking passengers and crew to report cases of illness and "encourage hand hygiene."

Medical personnel are also collecting stool specimens from ill passengers and crew, which a CDC lab will analyze to make a definitive diagnosis.

When the QM2 docks in Brooklyn, an officer from the CDC's Vessel Sanitation Program and an epidemiologist will board, conduct an environmental health assessment "and evaluate the outbreak and response activities," the CDC said.

Two officers boarded the Emerald Princess, also owned by Carnival, when it arrived in Fort Lauderdale, Florida, on Thursday and are conducting an environmental assessment.

The Vessel Sanitation Program has authority to inspect cruise ships that carry 13 or more passengers and call at U.S. ports. It gave the Queen Mary 2 a perfect 100 on its most recent inspection this past summer, but found a few minor infractions, including a lack of serving utensils with breakfast pastries at a buffet.

(Reporting by Sharon Begley; Editing by Peter Cooney)


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