Wall Street slips as investors seek cliff progress

NEW YORK (Reuters) - Stocks finished slightly lower in a quiet session on Tuesday as the back-and-forth wrangling over the "fiscal cliff" gave investors little reason to act.


Trading volume was light as legislators continue to negotiate a deal to avoid a $600 billion package of tax hikes and federal spending cuts that would begin January 1 and could push the economy into recession.


Just 5.86 billion shares changed hands on the New York Stock Exchange, the Nasdaq and the NYSE MKT, below the year's daily average of 6.48 billion shares.


A key measure of investor anxiety has remained muted. The CBOE Volatility Index or VIX <.vix>, a gauge of market anxiety, was at 17.12, up 2.9 percent. It has not traded above 20 since July.


Optimism for progress was dented after remarks by President Barack Obama, who rejected a Republican proposal to resolve the crisis as "out of balance" and said any deal must include a rise in income tax rates on the wealthiest Americans.


"People don't know if what's going on is political posturing or real negotiations that represent progress," said Bernard Baumohl, managing director and chief global economist at the Economic Outlook Group in Princeton, New Jersey.


Expectations of higher taxes on dividends beginning in 2013 have pushed many companies to pay special dividends this year or advance their next payback to investors. Coach became the latest to move up the date of its next dividend payment, and the news lifted shares of the upscale leather-goods maker earlier in the session. By the close, though, Coach was down 1.2 percent at $57.52.


One of the S&P 500's top sectors for the day was health care <.gspa>, considered a defensive group.


The Dow Jones industrial average <.dji> fell 13.82 points, or 0.11 percent, to 12,951.78 at the close. The Standard & Poor's 500 Index <.spx> dipped 2.41 points, or 0.17 percent, to 1,407.05. The Nasdaq Composite Index <.ixic> shed 5.51 points, or 0.18 percent, to close at 2,996.69.


The market has been sensitive to rhetoric from Washington, as a failure to reach an agreement could send the U.S. economy back into recession. Still, many expect a resolution to be found, which could extend the S&P 500's rally of 12 percent so far this year.


Differences within the Republican Party came to the fore on Tuesday as one senator opposed to raising taxes lashed out at Republican House Speaker John Boehner for proposing to increase revenue by closing some tax loopholes.


Congressional Republicans recently proposed steep spending cuts to bring down the budget deficit, but gave no ground on Obama's call to raise tax rates on the rich. The proposal was quickly dismissed by the White House.


"We're on hold trying to figure it out, but investors are stressed since they have to make decisions soon about how to proceed with their investments if taxes are indeed going up. We could see a real pick-up in volume over the next week or so," Baumohl said.


Netflix Inc was the S&P 500's top percentage gainer, advancing 14 percent to $86.65 after Walt Disney Co agreed to give the company exclusive TV distribution rights to its movies, starting in 2016.


Intel Corp shares rose 2.2 percent to $19.97 after the top chipmaker sold $6 billion in bonds to fund stock buybacks and other business activities.


Darden Restaurants Inc shares plunged 9.6 percent to $47.40 as the S&P 500's worst performer after the company warned that its latest quarter would miss expectations after unsuccessful promotions led to a decline in sales at its Olive Garden, Red Lobster and LongHorn Steakhouse chains.


In contrast, Big Lots Inc surged 11.5 percent to $31.27 after the close-out retailer posted a smaller-than-expected loss and boosted its full-year adjusted earnings forecast.


MetroPCS Communications shares tumbled 7.5 percent to $9.96 after Sprint Nextel appeared unlikely to make a counter-offer for the wireless service provider.


Almost half of the stocks traded on the New York Stock Exchange closed lower, while 50 percent of Nasdaq-listed shares closed in negative territory.


After the closing bell, Pandora Media Inc


shares plunged 23 percent after the company reported its third-quarter results.

(Editing by Jan Paschal)

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Syrian Government Beset by Battles and Diplomatic Setbacks


Narciso Contreras/Associated Press


A kitchen in a residence in Aleppo, Syria, damaged Sunday in fighting between Free Syrian Army fighters and government forces.







BEIRUT, Lebanon — Fierce fighting on the battlefield and setbacks on the diplomatic front increased pressure on the embattled Syrian government on Monday as fresh signs emerged of a worsening battle for control of the capital.




A senior Turkish official said that Russia had agreed on Monday to a new diplomatic approach that would seek ways to persuade President Bashar al-Assad to relinquish power, a possible weakening in Russia’s steadfast support for the government. Fighting raged around Damascus, the Syrian capital, and its airport, disrupting commercial flights for a fourth straight day.


A prominent Foreign Ministry spokesman was said to have left the country amid reports of his defection, and both President Obama and Secretary of State Hillary Rodham Clinton issued warnings that any use of chemical weapons by a desperate government would be met with a strong international response. A Western diplomat confirmed that there were grave concerns in United States intelligence circles that Syrian leaders could resort to the use of the weapons as their position deteriorates.


The Syrian Foreign Ministry, repeating earlier statements, told state television that the government “would not use chemical weapons, if it had them, against its own people under any circumstances.”


The United Nations said it was withdrawing nonessential international staff from Syria, and the European Union said it was reducing activities in Damascus “to a minimum,” as security forces pummeled the suburbs with artillery and airstrikes in a struggle to seal off the city from its restive outskirts and control the airport road. A senior Russian official spoke for the first time in detail about the possibility of evacuating Russian citizens.


Mr. Assad has held on longer than many had predicted at the start of the 21-month uprising. He still has a strong military advantage and undiminished support from his closest ally, Iran. Military analysts doubt the rebels are capable of taking Damascus by force, and one fighter interviewed on Monday said the government counteroffensive was inflicting heavy losses. There were still no firm indications from Russia that it was ready to join Turkey and Western nations in insisting on Mr. Assad’s immediate departure.


But the latest grim developments follow a week of events that suggested the Assad government was being forced to fight harder to keep its grip on power. Rebels threatened its vital control of the skies, using surface-to-air missiles to down a fighter plane and other aircraft. The opposition also gained control of strategic military bases and their arsenals, and forced the government to shut down the Damascus airport periodically. The Internet was off for two days.


A Russian political analyst with contacts at the Foreign Ministry said that “people sent by the Russian leadership” who had contact with Mr. Assad two weeks ago described a man who has lost all hope of victory or escape.


“His mood is that he will be killed anyway,” Fyodor Lukyanov, editor of a Russian foreign affairs journal and the head of an influential policy group, said in an interview in Moscow, adding that only an “extremely bold” diplomatic proposal could possibly convince Mr. Assad that he could leave power and survive.


“If he will try to go, to leave, to exit, he will be killed by his own people,” Mr. Lukyanov said, speculating that security forces dominated by Mr. Assad’s minority Alawite sect would not let him depart and leave them to face revenge. “If he stays, he will be killed by his opponents. He is in a trap. It is not about Russia or anybody else. It is about his physical survival.”


Many observers — United Nations personnel in Syria, Arab diplomats and opposition activists — stress that it is difficult to reliably assess the state of the government. But taken together, the day’s events suggested that the government’s position was declining more sharply than it had in months and that an international scramble to find a solution to the crisis was intensifying.


Nabil al-Araby, the head of the Arab League, said on Monday that the government could fall at “any time,” Agence France-Presse reported.


“I think there will be something soon,” he said. “Facts on the ground indicate very clearly now that the Syrian opposition is gaining, politically and militarily.”


The Arab League has long called for Mr. Assad to step down. But Russia, Mr. Assad’s most powerful ally, has held out the possibility of his staying in power during a transition, so the Russian government’s apparent shift of emphasis carried more weight.


Anne Barnard reported from Beirut, Lebanon, and Ellen Barry from Moscow. Reporting was contributed by Sebnem Arsu in Istanbul, Peter Baker in Washington, Hwaida Saad, Neil MacFarquhar and Hania Mourtada in Beirut and Christine Hauser in New York.



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PHOTO: See Molly Mesnick's Baby Belly

Jason and Molly Mesnick Pregnant: Baby Bump Photo
Noah Graham


Happy holidays! Celebrities gathered to celebrate the season Saturday, attending the Second Annual Santa’s Secret Workshop in West Hollywood, Calif. Presented by Bill Horn and Scout Masterson and held at the Andaz Hotel, the event benefitted L.A. Family Housing.


Among the revelers: Bachelor alums Jason and Molly Mesnick — whose first child together is due in March — attending their first event since announcing the happy news.


“I’m just about six months and feeling really good,” Molly tells PEOPLE.


“I’m at a perfect stage now so I’m trying to get as much done around the house as I possibly can while I have the energy.”

Also in attendance? Tori Spelling, Malin Akerman, Tiffani Thiessen, Ali LandryDavid Boreanaz, Marla Sokoloff, Kaitlin Olson and Rob McElhenney, Angela Bassett, Ian Ziering, Amanda Righetti, Marshall and Jamie Anne Allman, Kimberly Van Der Beek, Spencer Grammer and more.


Guests enjoyed manicures from Mom.me, cookie decorating with Jenny Cookies, photos with Santa from HP, create-a-card with Snapfish.com, and a craft bar from Jo-Ann Fabrics and Crafts.


Styled by Sybarite Designs, the event featured companies such as  SodaStream, Corolle, Stokke, Orbit Baby, Ergo Baby, Teddy Needs a Bath, Funktion, Numi Numi Design, Ju-Ju-Be, Innobaby and Joovy showcasing their latest products — be sure to enter this week’s giveaway for a chance to win them all!


Tori Spelling
Noah Graham


It was a family affair for Tori Spelling, who brought the whole gang for their first public event since 3-month-old Finn‘s birth in August.


Joining the actress, husband Dean McDermott and their newborn are Hattie, 13 months, Stella, 4, and Liam, 5½.


“I’m not going to lie. It’s a little crazy. It’s hard work,” Spelling tells PEOPLE.


“I think three was safe. Four tips you over the edge a little bit. Maybe it’s because they’re 10 months apart — but we’re so blessed. It keeps you on your toes.”


Malin Akerman
Noah Graham


With her first child on the way in April, Malin Akerman was all smiles at the event, posing with her growing belly.


“I’m feeling great,” the actress tells PEOPLE. “I’m closing in on five months now so it’s getting more and more exciting as time goes by.”


Tiffani Thiessen
Noah Graham


White Collar star Tiffani Thiessen gave 2-year-old daughter Harper Renn a leg up at the event.


On the Landry-Monteverde family’s list? Meeting Santa! PEOPLE.com blogger Ali Landry held 13-month-old son Marcelo Alejandro while husband Alejandro Monteverde snuggled in behind 5-year-old daughter Estela Ines.


Ali Landry
Noah Graham


Amanda Righetti
Tiffany Rose/WireImage


Ravishing redhead Amanda Righetti showed off her growing belly at the event — The Mentalist star is due this winter with her first child.


David Boreanaz
Noah Graham


No Bones about it – David Boreanaz‘s children look like him! The actor and wife Jaime Bergman brought kids Jaden, 10, and Bella, 3, to meet Santa.


Always Sunny in Philadelphia stars Kaitlin Olson and Rob McElhenney brought their elder son Axel, 2, to the event, but little Leo, 7 months, sat this one out.


Kaitlin Olson
Tiffany Rose/WireImage


Angela Bassett
Noah Graham


Meeting Santa was twice as nice for Angela Bassett and Courtney B. Vance, who brought along their 6-year-old twins Bronwyn Golden and Slater Josiah (peace out, dude).


Kimberly Van Der Beek
Tiffany Rose/WireImage


Who cares about photos — it’s time for a snack! PEOPLE.com blogger Kimberly Van Der Beek gives 2-year-old daughter Olivia (plus her doll!) a lift.


Picture perfect! Ian Ziering gets daughter Mia, 19 months, in the frame while enjoying the craft table. The actor and wife Erin expect their second child in May.


Ian Ziering
Meagan Reidinger


Marla Sokoloff
Meagan Reidinger


With a baby doll in tow, PEOPLE.com blogger Marla Sokoloff and her little lady, 9-month-old Elliotte, check out the event.


Spencer Grammer arrived with her main men — husband James Hesketh and their son, 13-month-old Emmett.


Spencer Grammer
Tiffany Rose/WireImage


Marshall and Jamie Ann Allman
Tiffany Rose/WireImage


The event was a baby bump debut for Marshall and Jamie Anne Allman as well — the True Blood and Killing stars just announced that they’re expanding their family — by two. Twins are on the way this spring!


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Fossil fuel subsidies in focus at climate talks

DOHA, Qatar (AP) — Hassan al-Kubaisi considers it a gift from above that drivers in oil- and gas-rich Qatar only have to pay $1 per gallon at the pump.

"Thank God that our country is an oil producer and the price of gasoline is one of the lowest," al-Kubaisi said, filling up his Toyota Land Cruiser at a gas station in Doha. "God has given us a blessing."

To those looking for a global response to climate change, it's more like a curse.

Qatar — the host of U.N. climate talks that entered their final week Monday — is among dozens of countries that keep gas prices artificially low through subsidies that exceeded $500 billion globally last year. Renewable energy worldwide received six times less support — an imbalance that is just starting to earn attention in the divisive negotiations on curbing the carbon emissions blamed for heating the planet.

"We need to stop funding the problem, and start funding the solution," said Steve Kretzmann, of Oil Change International, an advocacy group for clean energy.

His group presented research Monday showing that in addition to the fuel subsidies in developing countries, rich nations in 2011 gave more than $58 billion in tax breaks and other production subsidies to the fossil fuel industry. The U.S. figure was $13 billion.

The Paris-based Organization for Economic Cooperation and Development has calculated that removing fossil fuel subsidies could reduce carbon emissions by more than 10 percent by 2050.

Yet the argument is just recently gaining traction in climate negotiations, which in two decades have failed to halt the rising temperatures that are melting Arctic ice, raising sea levels and shifting weather patterns with impacts on droughts and floods.

In Doha, the talks have been slowed by wrangling over financial aid to help poor countries cope with global warming and how to divide carbon emissions rights until 2020 when a new planned climate treaty is supposed to enter force. Calls are now intensifying to include fossil fuel subsidies as a key part of the discussion.

"I think it is manifestly clear ... that this is a massive missing piece of the climate change jigsaw puzzle," said Tim Groser, New Zealand's minister for climate change.

He is spearheading an initiative backed by Scandinavian countries and some developing countries to put fuel subsidies on the agenda in various forums, citing the U.N. talks as a "natural home" for the debate.

The G-20 called for their elimination in 2009, and the issue also came up at the U.N. earth summit in Rio de Janeiro earlier this year. Frustrated that not much has happened since, European Union climate commissioner Connie Hedegaard said Monday she planned to raise the issue with environment ministers on the sidelines of the talks in Doha.

Many developing countries are positive toward phasing out fossil fuel subsidies, not just to protect the climate but to balance budgets. Subsidies introduced as a form of welfare benefit decades ago have become an increasing burden to many countries as oil prices soar.

"We are reviewing the subsidy periodically in the context of the total economy for Qatar," the tiny Persian gulf country's energy minister, Mohammed bin Saleh al-Sada, told reporters Monday.

Qatar's National Development Strategy 2011-2016 states it more bluntly, saying fuel subsides are "at odds with the aspirations" and sustainability objectives of the wealthy emirate.

The problem is that getting rid of them comes with a heavy political price.

When Jordan raised fuel prices last month, angry crowds poured into the streets, torching police cars, government offices and private banks in the most sustained protests to hit the country since the start of the Arab unrest. One person was killed and 75 others were injured in the violence.

Nigeria, Indonesia, India and Sudan have also seen violent protests this year as governments tried to bring fuel prices closer to market rates.

Iran has used a phased approach to lift fuel subsidies over the past several years, but its pump prices remain among the cheapest in the world.

"People perceive it as something that the government is taking away from them," said Kretzmann. "The trick is we need to do it in a way that doesn't harm the poor."

The International Energy Agency found in 2010 that fuel subsidies are not an effective measure against poverty because only 8 percent of such subsidies reached the bottom 20 percent of income earners.

The IEA, which only looked at consumption subsidies, this year said they "remain most prevalent in the Middle East and North Africa, where momentum toward their reform appears to have been lost."

In the U.S., environmental groups say fossil fuel subsidies include tax breaks, the foreign tax credit and the credit for production of nonconventional fuels.

Industry groups, like the Independent Petroleum Association of America, are against removing such support, saying that would harm smaller companies, rather than the big oil giants.

In Doha, Mohammed Adow, a climate activist with Christian Aid, called all fuel subsidies "reckless and dangerous," but described removing subsidies on the production side as "low-hanging fruit" for governments if they are serious about dealing with climate change.

"It's going to oil and coal companies that don't need it in the first place," he said.

___

Associated Press writers Abdullah Rebhy in Doha, Qatar, and Brian Murphy in Dubai, United Arab Emirates, contributed to this report

____

Karl Ritter can be reached at www.twitter.com/karl_ritter

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Wall Street sours on weak domestic factory data

NEW YORK (Reuters) - Stocks struggled to extend the previous week's gains, dropping on Monday as disappointing U.S. factory numbers dampened optimism about China's economic growth.


The declines broke a three-day streak of gains for the S&P 500, keeping it shy of its 50-day moving average of about 1,420, a level that the index has been below since October 22, and now serving as a key resistance point for investors.


Manufacturing activity in the United States surprisingly contracted in November, the Institute for Supply Management said, dropping to its lowest level in more than three years. Economic data has been mixed in recent months, fanning worries about the pace of growth at a time when investors are already concerned about the "fiscal cliff" issue in Washington.


The ISM number "was below expectations that were already conservative, and that puts an exclamation point on the concern many of us have about the cliff's impact on the economy," said Leo Grohowski, chief investment officer at BNY Mellon Wealth Management in New York.


Markets had opened higher as output by China's factories grew in November for the first time in more than a year, data showed. Investors look to strength from China, the world's second-largest economy, to offset weak growth in the United States and Europe.


Still, the fiscal cliff remains investors' primary focus, with political haggling continuing over how to deal with large automatic spending cuts and tax hikes scheduled to kick in next year. The worry is that the combination of reduced spending and higher taxes could tip the U.S. economy back into recession.


While off its highs for the year, the S&P 500 is still up 12.1 percent for 2012.


"This could be the last opportunity for investors to take profits" after an unexpectedly strong year, said Grohowski, who helps oversee about $170 billion in assets.


Materials were the weakest sector on Monday, led lower by Newmont Mining after the company said its CEO resigned. Newmont's stock fell 3 percent to $45.69. Dow component DuPont dropped 1.7 percent to $42.39. An S&P materials index <.gspm> lost 1.8 percent.


The Dow Jones industrial average <.dji> fell 59.98 points, or 0.46 percent, to 12,965.60 at the close. The Standard & Poor's 500 Index <.spx> declined 6.72 points, or 0.47 percent, to 1,409.46. The Nasdaq Composite Index <.ixic> dropped 8.04 points, or 0.27 percent, to end at 3,002.20.


U.S. Treasury Secretary Timothy Geithner pushed Republicans on Sunday to offer specific ideas to cut the deficit. He predicted that they would agree to raise tax rates on the rich to obtain a year-end deal to avoid the fiscal cliff.


Among other factors serving to offset the ISM report on U.S. factories were two developments in the euro zone: Spain formally requested the disbursement of more than $50 billion of European funds to recapitalize its crippled banking sector, while Greece said it would spend 10 billion euros ($13 billion) to buy back bonds in a bid to reduce its ballooning debt.


The PHLX Europe sector index <.xex> added 0.1 percent.


Dell shares gained 4.4 percent to $10.06. The stock was one of the biggest percentage gainers in both the S&P 500 and Nasdaq 100 <.ndx> after Goldman Sachs upgraded the stock to "buy" from "sell.


Advanced Micro Devices was the S&P's top gainer, rising 7.3 percent to $2.36. Options traders appeared to be betting on further gains ahead. Early options order flow was focused on upside April calls, including a sweep of 3,594 April $3.50 strike calls for 16 cents per contract when the market was 14 cents to 16 cents, said WhatsTrading.com options strategist Frederic Ruffy.


Retail stocks were among the weakest of the day, with J.C. Penney Co off 3.2 percent at $17.36 and Staples Inc off 2.3 percent at $11.43. Consumer discretionary names tend to underperform during periods of economic uncertainty as consumers focus on core purchases.


Volume was light, with about 5.58 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, well below last year's daily average of 7.84 billion.


Decliners outnumbered advancers on the NYSE by a ratio of 3 to 2, while on the Nasdaq, about 14 stocks fell for every 11 that rose.


(Additional reporting by Doris Frankel; Editing by Jan Paschal)


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Suspected Gaza Collaborators Face a Grisly Fate





RAFAH, Gaza Strip — When Fadel Shalouf’s family went to pick up his body at the morgue the day after he was executed on a busy Gaza street corner, they found his hands still cuffed behind his back. Hamas, the militant faction that rules Gaza, did not provide a van to carry the body to burial, so they laid him on two men’s laps in the back of a sedan.




It was an undignified end to a short, shrouded life. Mr. Shalouf, his family insisted, was an illiterate fisherman with a knack for designing kites when he was arrested at 19 by Gaza’s internal security service. Yet he was convicted in a Hamas court in January 2011 of providing Israel with information that led to the 2006 assassination of Abu Attaya, commander of the Popular Resistance Committees.


During last month’s intense eight-day battle with Israel, the military wing of the Hamas government brutally and publicly put an end to Mr. Shalouf, 24, and six other suspected collaborators. The vigilante-style killings by masked gunmen — with one body dragged through a Gaza City neighborhood by motorcycle and another left for crowds to gawk over in a traffic circle — highlighted the pathetic plight of collaborators, pawns preyed on by both sides in the long-running Israeli-Palestinian conflict.


“Fadel lived poor and died poor,” said his cousin Ahmed Shalouf, 28. “They left the bodies for a few hours in the streets, people spitting on them, throwing stones. They did not execute only Fadel. They executed all of us.”


For Israel, despite its advanced technology for tracking terrorists, human sources remain an essential intelligence tool that allows for pinpoint strikes like the one that felled Ahmed al-Jabari, operations commander of Hamas’s Al Qassam Brigades, at the start of the recent escalation. To Hamas, they are the enemy within, and vigorous prosecution as well as the occasional high-profile lynching are powerful psychological tools to enforce loyalty and squelch dissent.


Former intelligence officials and experts on the phenomenon said many collaborators are struggling souls who are blackmailed into service by an Israeli government with great leverage over their lives. Some are enlisted when they apply for permits to seek medical treatment in Israel, for example, or in exchange for better conditions or early release from Israeli jails. Others are threatened with having behavior shunned in their religious Islamic communities — alcohol use, perhaps, or adultery — exposed.


“There is no substitute to a human source, because a human source goes into their house, sometimes even into their minds,” said Yaakov Peri, a former head of the Shin Bet, Israel’s domestic intelligence agency. “With all the technology — drones, you name it — you need a background, and you need the assistance from a human source.”


Mr. Peri said Palestinian collaborators might be given money for expenses or a small salary, but “you’ll never be a rich guy.”


Hillel Cohen, a research fellow at the Truman Institute for the Advancement of Peace at the Hebrew University in Jerusalem, who has written two books on the subject, said some Gaza collaborators “do it just for some money” and “some to be part of a big story”; few are actually supportive of Israel, he said, but many have problems with Hamas.


“I interviewed a lot of collaborators, and they have a kind of inferiority complex,” Mr. Cohen explained. “They see the West, Israel, as much better than the Arab. I hear expressions like, ‘We’re worth nothing.’ Sometimes it comes from there, and sometimes it’s part of what the Israeli officers put in their minds.”


Collaboration has underpinned Israeli-Palestinian relations since before there was a modern state of Israel, dating back at least to the Jewish underground that operated during the British Mandate era in the 1930s. The Oslo Accords signed by Israeli and Palestinian negotiators in 1994 even made two villages — one in Gaza, one in the West Bank — safe refuges for about 1,500 Bedouins suspected of spying.


The very definition of collaboration has expanded in recent years. Some in Hamas and more militant groups consider the Palestinian Authority to be aiding the enemy when it coordinates security services in the West Bank with Israel. Since Hamas took control of Gaza in 2007 after winning elections, members of the rival Fatah faction who live here have almost universally been under suspicion. Selling land to Jews can be punishable by death.


Fares Akram contributed reporting from Gaza, and Irit Pazner Garshowitz from Jerusalem.



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Kellan Lutz, Hugh Jackman Take Bites and Swipes &#38; More Casting News















12/02/2012 at 07:00 PM EST







Kellan Lutz (left) and Hugh Jackman


Christopher Polk/Getty, Han Myung-Gu/WireImage


It's comeback time. Whether seeking revenge or reprising beloved roles, a fresh crop of movies shows that the best characters always come back for more.

Twilight's Kellan Lutz feasts on others as a vampire, but this time, he's utilizing his own body for powers, Zimbio reports.

The actor will star in Tatua as a tattooed assassin whose weapons are extracted from the ink on his body. The process is a strain on the hit man, but he must put that aside when his son is kidnapped by a dangerous foe.

Hugh Jackman is set to reprise his role as Wolverine in
X-Men: Days of Future Past, the Hollywood Reporter. Ian McKellen (Magneto) and Patrick Stewart (Professor Xavier), will also be joining Jennifer Lawrence, James McAvoy, Michael Fassbender and Nicholas Hoult.

Charlize Theron will star in an adaptation of the final installment of a South Korean revenge trilogy, the Hollywood Reporter also says. The original movie revolves around a woman wrongfully imprisoned for 13 years who then sets out to seek her long-awaited revenge. Writer William Monahan says the English-language remake will be "very American – and very unexpected."

The made-for-TV Disney channel movie Life-Size is getting a sequel, Variety reports. Tyra Banks will reprise her role as Eve, the doll who comes to life, and also executive produce the movie. No word yet on whether Lindsay Lohan, who played Eve's owner, will be making a return.

Also coming soon:

Beyoncé won't be slowing down after her Super Bowl performance in February. Just a couple weeks later, she'll introduce her still untitled, feature-length documentary on HBO, Deadline reports. The documentary airs Feb. 16.

Bridesmaids' Rose Byrne will be going through the motions as a newlywed in I Give it a Year, Zimbio reports. As if being newly married wasn't tough enough, the "too perfect" ex Anna Faris will be shaking up an already teetering balance.

Cate Blanchett will be stirring up her wicked ways as the evil stepmother in a live-action adaptation of Disney's Cinderella, also according to Zimbio.

And George Clooney is sticking to his winning formula by joining forces with his Argo team to produce an untitled crime drama, Variety reports.

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Asperger's dropped from revised diagnosis manual

CHICAGO (AP) — The now familiar term "Asperger's disorder" is being dropped. And abnormally bad and frequent temper tantrums will be given a scientific-sounding diagnosis called DMDD. But "dyslexia" and other learning disorders remain.

The revisions come in the first major rewrite in nearly 20 years of the diagnostic guide used by the nation's psychiatrists. Changes were approved Saturday.

Full details of all the revisions will come next May when the American Psychiatric Association's new diagnostic manual is published, but the impact will be huge, affecting millions of children and adults worldwide. The manual also is important for the insurance industry in deciding what treatment to pay for, and it helps schools decide how to allot special education.

This diagnostic guide "defines what constellations of symptoms" doctors recognize as mental disorders, said Dr. Mark Olfson, a Columbia University psychiatry professor. More important, he said, it "shapes who will receive what treatment. Even seemingly subtle changes to the criteria can have substantial effects on patterns of care."

Olfson was not involved in the revision process. The changes were approved Saturday in suburban Washington, D.C., by the psychiatric association's board of trustees.

The aim is not to expand the number of people diagnosed with mental illness, but to ensure that affected children and adults are more accurately diagnosed so they can get the most appropriate treatment, said Dr. David Kupfer. He chaired the task force in charge of revising the manual and is a psychiatry professor at the University of Pittsburgh.

One of the most hotly argued changes was how to define the various ranges of autism. Some advocates opposed the idea of dropping the specific diagnosis for Asperger's disorder. People with that disorder often have high intelligence and vast knowledge on narrow subjects but lack social skills. Some who have the condition embrace their quirkiness and vow to continue to use the label.

And some Asperger's families opposed any change, fearing their kids would lose a diagnosis and no longer be eligible for special services.

But the revision will not affect their education services, experts say.

The new manual adds the term "autism spectrum disorder," which already is used by many experts in the field. Asperger's disorder will be dropped and incorporated under that umbrella diagnosis. The new category will include kids with severe autism, who often don't talk or interact, as well as those with milder forms.

Kelli Gibson of Battle Creek, Mich., who has four sons with various forms of autism, said Saturday she welcomes the change. Her boys all had different labels in the old diagnostic manual, including a 14-year-old with Asperger's.

"To give it separate names never made sense to me," Gibson said. "To me, my children all had autism."

Three of her boys receive special education services in public school; the fourth is enrolled in a school for disabled children. The new autism diagnosis won't affect those services, Gibson said. She also has a 3-year-old daughter without autism.

People with dyslexia also were closely watching for the new updated doctors' guide. Many with the reading disorder did not want their diagnosis to be dropped. And it won't be. Instead, the new manual will have a broader learning disorder category to cover several conditions including dyslexia, which causes difficulty understanding letters and recognizing written words.

The trustees on Saturday made the final decision on what proposals made the cut; recommendations came from experts in several work groups assigned to evaluate different mental illnesses.

The revised guidebook "represents a significant step forward for the field. It will improve our ability to accurately diagnose psychiatric disorders," Dr. David Fassler, the group's treasurer and a University of Vermont psychiatry professor, said after the vote.

The shorthand name for the new edition, the organization's fifth revision of the Diagnostic and Statistical Manual, is DSM-5. Group leaders said specifics won't be disclosed until the manual is published but they confirmed some changes. A 2000 edition of the manual made minor changes but the last major edition was published in 1994.

Olfson said the manual "seeks to capture the current state of knowledge of psychiatric disorders. Since 2000 ... there have been important advances in our understanding of the nature of psychiatric disorders."

Catherine Lord, an autism expert at Weill Cornell Medical College in New York who was on the psychiatric group's autism task force, said anyone who met criteria for Asperger's in the old manual would be included in the new diagnosis.

One reason for the change is that some states and school systems don't provide services for children and adults with Asperger's, or provide fewer services than those given an autism diagnosis, she said.

Autism researcher Geraldine Dawson, chief science officer for the advocacy group Autism Speaks, said small studies have suggested the new criteria will be effective. But she said it will be crucial to monitor so that children don't lose services.

Other changes include:

—A new diagnosis for severe recurrent temper tantrums — disruptive mood dysregulation disorder. Critics say it will medicalize kids' who have normal tantrums. Supporters say it will address concerns about too many kids being misdiagnosed with bipolar disorder and treated with powerful psychiatric drugs. Bipolar disorder involves sharp mood swings and affected children are sometimes very irritable or have explosive tantrums.

—Eliminating the term "gender identity disorder." It has been used for children or adults who strongly believe that they were born the wrong gender. But many activists believe the condition isn't a disorder and say calling it one is stigmatizing. The term would be replaced with "gender dysphoria," which means emotional distress over one's gender. Supporters equated the change with removing homosexuality as a mental illness in the diagnostic manual, which happened decades ago.

___

AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner .

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Asian shares, euro rise after firm China data

TOKYO (Reuters) - Asian shares and the euro rose on Monday as further signs of a stabilizing Chinese economy boosted investor risk appetite, offsetting worries that stagnant U.S. budget talks could threaten to derail the world's largest economy.


A firm manufacturing survey from Asia's fourth-largest economy, South Korea, also brightened mood, while data from Australia showing sluggish retail sales and labor demand and tame inflation raised expectations the Reserve Bank of Australia may cut interest rates at its meeting on Tuesday.


India will report its manufacturing data later in the day.


MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> climbed 0.4 percent to a fresh nine-month high, after closing at its highest since February 29 on Friday, and a touch below 2012 highs. Hong Kong shares <.hsi> extended gains, hitting fresh intra-day highs on the year.


The pace of activity in China's vast manufacturing sector quickened for the first time in 13 months in November, with the final reading for the HSBC Purchasing Managers' Survey (PMI) rising to 50.5 in November, further evidence that the economy is reviving after seven quarters of slowing growth.


China's official PMI hit a seven-month high of 50.6 for November, according to a manufacturing survey over the weekend, while an official PMI survey of non-manufacturing sectors ticked up to 55.6 in November, led by construction services.


The euro rose to a six-week high against the dollar at $1.3048, after the upbeat data on Chinese manufacturing helped to trigger stop-loss buying of the common currency.


"There is growing confidence that China's economy bottomed in July-September, with signs of firmer external demand," said Hirokazu Yuihama, a senior strategist at Daiwa Securities.


"Sentiment is supported because the gradual recovery in Asian economies comes against the backdrop of low interest rates environment, which won't be changed anytime soon, so the recovery in risk sentiment is likely to extend into next year," he said.


The favorable Chinese data and hopes of a rate cut saw Australian shares <.axjo> up 0.7 percent to a five-week high.


South Korean shares <.ks11> rose 0.3 percent to their highest in more than six weeks, buoyed by weekend data showing exports posted their first back-to-back growth of the year and a private manufacturing survey on Monday showing a the pace of contraction slowed in November.


Japan's Nikkei stock average <.n225> added 0.7 percent to a fresh seven-month high, extending gains from Friday. <.t/>


"My understanding of the current market move is mainly due to the catch up of high-beta exporting companies due to the global economic trend ... This process of catch up will continue until the Nikkei hit 10,000," said Ryota Sakagami, chief strategist at SMBC Nikko Securities, of Nikkei.


Japanese firms raised spending on plant and equipment in the third quarter for a fourth consecutive quarterly rise, in the latest sign the world's third-largest economy may have seen the worst from the effect of slack global demand.


ANXIETY GAUGE MIXED


Major stock market indexes closed little changed and Treasury yields slipped on safe-haven demand on Friday as the stalemate in U.S. budget talks fuelled concerns about slowing U.S. economic growth.


European stocks ended Friday slightly down but posted solid monthly gains, thanks to growing views that the worst of Europe's debt crisis is over.


The Euro STOXX 50 Volatility Index <.v2tx>, Europe's widely-used measure of investor risk aversion, fell to its lowest level not seen since mid-2007 of 16.26 on Friday.


Data from EPFR Global showed on Friday that worldwide, stock funds took in $14.86 billion in the week ended November 28, the second-largest total since 2008, while investors pumped the most into U.S. stock funds in over a year even as U.S. lawmakers sparred over planned budget cuts.


But the CBOE Volatility Index <.vix>, which reflects anxiety in the Standard & Poor's 500 index <.spx>, jumped 5.4 percent on Friday for its largest daily gain in two weeks.


The euro fell on Friday after Moody's downgraded the credit ratings on the European Stability Mechanism and the European Financial Stability Fund last week, but the drop was limited.


The dollar steadied at 82.34 yen, not far from a 7-1/2-month high of 82.84 yen touched on November 22.


Data from the Commodity Futures Trading Commission released on Friday showed currency speculators in the latest week boosted short yen positions to the highest since the beginning of May, 2007, riding on speculation that a likely change in Japan's government would lead to more aggressive monetary easing.


Both U.S. crude futures and Brent inched up 0.3 percent to $89.16 a barrel and $111.57 respectively, while London copper also gained 0.3 percent to $8,018 a metric ton (1.1023 tons).


Spot gold crawled up 0.3 percent to $1,719.71 an ounce, as a 0.2 percent drop <.dxy> in the dollar against a basket of key currencies made dollar-based commodities less expensive for holders of non-dollar currencies.


(Additional reporting by Dominic Lau in Tokyo; Editing by Michael Perry)


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Effort to Secure Border Crimps Commerce Along It


Samantha Sais for The New York Times


Agua Prieta, Mexico, has a main street directly south of the border fence that is active with people and businesses.







DOUGLAS, Ariz. — When the copper smelters closed, the jobs dried up and the people who used to sustain the small shops along this border city’s commercial strips left to find work elsewhere, the Ortega family looked toward the neighbor to the south, Agua Prieta, Mexico, for a new clientele.




For decades, catering to Mexicans had been a reliable business plan for the Ortegas and many other store owners here, a multigenerational band of believers who have been around too long to give up. But the tight border enforcement prompted by the Sept. 11 attacks — and amplified by the harsh realities and language of drug violence and illegal immigration — gradually made it harder to get across the border legally, then too much of a bother, and finally a discomfiting waste of time.


Like the copper smelter workers, the Mexicans, little by little, also began to disappear.


An unforgiving blow came about two years ago, when the American government stopped issuing visas in Agua Prieta, forcing whoever wanted them to travel 115 miles to Nogales, a costly undertaking for Mexicans relying on lean monthly salaries to survive.


“I understand the need for securing our border,” said Bill Thomas, 64, who runs Thomas Home Furnishings, a store his father founded 59 years ago, 11 blocks from a port of entry now so fortified and congested that the city had to build a road to steer the lines of idling cars waiting to get across away from local streets. “But what we’ve done is, we’ve shut out the honest guy.”


The feeling is the same along much of the Mexican border in Arizona, where an imposing wall of corrugated steel disconnects main streets, shared histories and binational family ties. It has also begun to seep deeper, among business owners and elected officials inside a state known for its iron-fisted approach to illegal immigration.


The Metropolitan Tucson Convention and Visitors Bureau has been running a media campaign in the Mexican border state of Sonora and its neighbor to the south, Sinaloa, to dispel any notions that Arizona is unwelcoming.


(After Arizona passed its strict immigration law in 2010, the Mexican government issued a warning to its citizens, telling them to assume that they could be “harassed and questioned” in Arizona “at any time.”)


On Nov. 16, Tucson’s mayor, Jonathan Rothschild, made his first official trip to Nogales, Mexico, to visit a port of entry that is under expansion and for which he has lobbied for an increase in staffing. At a meeting in October, mayors in the economic development committee at the Maricopa Association of Governments, a regional planning group based in Phoenix, embraced a unifying slogan: “We’re all border communities.”


“Mexicans spend about $2 billion a year in Arizona,” said the committee’s chairman, Thomas L. Schoaf, the mayor of Litchfield Park, a suburb of Phoenix. “They go to the Biltmore” Fashion Park, an upscale mall in Phoenix, and “they go to Flagstaff.”


About 21 million Mexicans cross legally into Arizona every year, Mr. Schoaf said; in Santa Cruz County, which runs along the border, their spending accounts for 40 percent of the sales tax revenue. “A significant part of our economic vitality is related to people who cross the border,” Mr. Schoaf said, “so we need to make the crossing more efficient.”


Erik Lee, the associate director of the North American Center for Transborder Studies at Arizona State University, said old infrastructure and inadequate staffing were largely to blame for the costly and unpredictably long waits at border crossings. While the number of Border Patrol agents has virtually doubled since 2004, to 23,306 from 11,684, the number of customs inspectors, who operate the ports of entry, increased by only 12 percent, to 21,893 from 19,525, according to federal statistics.


On average, it took 66 minutes to cross the border from Nogales, Mexico, to Nogales, Ariz., in 2008, costing the regional economy about $200 million, according to estimates compiled by Mr. Lee and Christopher E. Wilson of the Mexico Institute at the Woodrow Wilson International Center for Scholars.


Projections by the Commerce Department say the average time to get through ports of entry into the United States will rise to 99 minutes by 2017, a delay the department estimates could cost a total of $12 billion for the economies on the two sides.


Looking at his electronic ledger, Josué Lopez, who runs Casa Enrique Uniforms here, a store that his father, who was born in Agua Prieta, bought 39 years ago, said, “There’s a lot of money being lost in the name of security.”


Brenna Rae Goth contributed reporting.



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