Sunday, 30 December 2012

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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