To Save Wildlife, and Tourism, Kenyans Take Up Arms





ARCHER’S POST, Kenya — Julius Lokinyi was one of the most notorious poachers in this part of Kenya, accused of single-handedly killing as many as 100 elephants and selling the tusks by the side of the road in the dead of night, pumping vast amounts of ivory into a shadowy global underground trade.




But after being hounded, shamed, browbeaten and finally persuaded by his elders, he recently made a remarkable transformation. Elephants, he has come to believe, are actually worth more alive than dead, because of the tourists they attract. So Mr. Lokinyi stopped poaching and joined a grass-roots squad of rangers — essentially a conservation militia — to protect the wildlife he once slaughtered.


Nowadays he gets up at dawn, slurps down a cup of sugary tea, tightens his combat boots and marches off with other villagers, some who had never picked up a gun before and are little more than volunteers, to fight poachers.


“We got to protect the elephants,” said Mr. Lokinyi, whose hooded eyes now glow with the zeal of a convert.


From Tanzania to Cameroon, tens of thousands of elephants are being poached each year, more than at any time in decades, because of Asia’s soaring demand for ivory. Nothing seems to be stopping it, including deploying national armies, and the bullet-riddled carcasses keep stacking up. Scientists say that at this rate, African elephants could soon go the way of the wild American bison.


But in this stretch of northern Kenya, destitute villagers have seized upon an unconventional solution that, if replicated elsewhere, could be the key to saving thousands of elephants across Africa, conservationists say. In a growing number of communities here, people are so eager, even desperate, to protect their wildlife that civilians with no military experience are banding together, grabbing shotguns and G3 assault rifles and risking their lives to confront heavily armed poaching gangs.


It is essentially a militarized neighborhood watch, with loping, 6-foot-6 former herdsmen acting as the block captains, and the block being miles and miles of zebra-studded bush. These citizen-rangers are not doing this out of altruism or some undying love for pachyderms. They do it because in Kenya, perhaps more than just about anywhere else, wildlife means tourists, and tourists mean dollars — a lot of dollars.


It is not unusual here for a floppy-hatted visitor to drop $700 a night to sleep in a tent and absorb the sights, sounds and musky smells of wondrous game. Much of that money is contractually bound to go directly to impoverished local communities, which use it for everything from pumping water to college scholarships, giving them a clear financial stake in preserving wildlife. The safari business is a pillar of the Kenyan economy, generating more than a billion dollars a year and nearly 500,000 jobs: cooks, cleaners, bead-stringers, safari guides, bush pilots, even accountants to tally the proceeds.


Surprisingly, many jobs in the safari industry can pay as much as poaching. Though the ivory trade may seem lucrative, it is often like the Somali pirate business model, with the entry-level hijacker getting just a minuscule cut of the million-dollar ransoms. While a pound of ivory can fetch $1,000 on the streets of Beijing, Mr. Lokinyi, despite his lengthy poaching résumé, was broke, making it easier to lure him out of the business.


Villagers are also turning against poachers because the illegal wildlife trade fuels crime, corruption, instability and intercommunal fighting. Here in northern Kenya, poachers are diversifying into stealing livestock, printing counterfeit money and sometimes holding up tourists. Some are even buying assault rifles used in ethnic conflicts.


The conservation militias are often the only security forces around, so they have become de facto 911 squads, rushing off to all sorts of emergencies in areas too remote for the police to quickly gain access to and often getting into shootouts with poachers and bandits.


“This isn’t just about animals,” said Paul Elkan, a director at the Wildlife Conservation Society, who is trying to set up community ranger squads in South Sudan modeled on the Kenyan template. “It’s about security, conflict reconciliation, even nation building.”


The rangers tend to be hardened and uneducated, drawn from different ethnic groups and the surplus of unemployed youth. Gabriel Lesoipa was a goat herder; Joseph Lopeiyok, a cattle rustler; John Pameri won his coveted spot because he was fast — at the time he was selected, the first entry requirement was a grueling 11-mile race.


Many are considered warriors in their communities, experts in so-called bushcraft from years of grazing cattle and goats across the thorny savanna — and defending them against armed raiders. They can follow faint footprints across long, thirsty distances and instantly intuit when someone has trespassed on their land.


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Matthew & Camila McConaughey Name Their Son Livingston















12/29/2012 at 09:15 PM EST







Camila and Matthew McConaughey


Gary Miller/FilmMagic


Matthew McConaughey has spilled the beans about his new baby!

"Camila gave birth to our third child yesterday morning. Our son, Livingston Alves McConaughey, was born at 7:43 a.m. on 12.28.12," he wrote on his Whosay page Saturday night.

"He greeted the world at 9 lbs., and 21 inches. Bless up and thank you for your well wishes."

Camila, 29, and her actor husband, 43, welcomed their third child in Austin, Texas, Friday, PEOPLE previously confirmed.

The couple – also parents to Vida, almost 3, and Levi, 4 – announced the pregnancy in July, just one month after they wed in Texas.

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Kenya hospital imprisons new mothers with no money


NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.


Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.


Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.


"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."


"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."


The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.


Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.


"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.


She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.


A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.


"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.


Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.


One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.


Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.


___


Associated Press reporter Tom Odula contributed to this report.


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Wall Street Week Ahead: Cliff may be a fear, but debt ceiling much scarier


(Reuters) - Investors fearing a stock market plunge - if the United States tumbles off the "fiscal cliff" next week - may want to relax.


But they should be scared if a few weeks later, Washington fails to reach a deal to increase the nation's debt ceiling because that raises the threat of a default, another credit downgrade and a panic in the financial markets.


Market strategists say that while falling off the cliff for any lengthy period - which would lead to automatic tax hikes and stiff cuts in government spending - would badly hurt both consumer and business confidence, it would take some time for the U.S. economy to slide into recession. In the meantime, there would be plenty of chances for lawmakers to make amends by reversing some of the effects.


That has been reflected in a U.S. stock market that has still not shown signs of melting down. Instead, it has drifted lower and become more volatile.


In some ways, that has let Washington off the hook. In the past, a plunge in stock prices forced the hand of Congress, such as in the middle of the financial crisis in 2008.


"If this thing continues for a bit longer and the result is you get a U.S. debt downgrade ... the risk is not that you lose two-and-a-half percent, the risk is that you lose ten and a half," said Jonathan Golub, chief U.S. equity strategist at UBS Equity Research, in New York.


U.S. Treasury Secretary Tim Geithner said this week that the United States will technically reach its debt limit at the end of the year.


INVESTORS WARY OF JANUARY


The White House has said it will not negotiate the debt ceiling as in 2011, when the fight over what was once a procedural matter preceded the first-ever downgrade of the U.S. credit rating. But it may be forced into such a battle again. A repeat of that war is most worrisome for markets.


Markets posted several days of sharp losses in the period surrounding the debt ceiling fight in 2011. Even after a bill to increase the ceiling passed, stocks plunged in what was seen as a vote of "no confidence" in Washington's ability to function, considering how close lawmakers came to a default.


Credit ratings agency Standard & Poor's lowered the U.S. sovereign rating to double-A-plus, citing Washington's legislative problems as one reason for the downgrade from triple-A status. The benchmark S&P 500 dropped 16 percent in a four-week period ending August 21, 2011.


"I think there will be a tremendous fight between Democrats and Republicans about the debt ceiling," said Jon Najarian, a co-founder of online brokerage TradeMonster.com, in Chicago.


"I think that is the biggest risk to the downside in January for the market and the U.S. economy."


There are some signs in the options market that investors are starting to eye the January period with more wariness. The CBOE Volatility Index, or the VIX, the market's preferred indicator of anxiety, has remained at relatively low levels throughout this process, though on Thursday it edged above 20 for the first time since July.


More notable is the action in VIX futures markets, which shows a sharper increase in expected volatility in January than in later-dated contracts. January VIX futures are up nearly 23 percent in the last seven trading days, compared with a 13 percent increase in March futures and an 8 percent increase in May futures. That's a sign of increasing near-term worry among market participants.


The CBOE Volatility Index closed on Friday at 22.72, gaining nearly 17 percent to end at its highest level since June as details emerged of a meeting on Friday afternoon of President Barack Obama with Senate and House leaders from both parties where the president offered proposals similar to those already rejected by Republicans. Stocks slid in late trading and equity futures continued that slide after cash markets closed.


"I was stunned Obama didn't have another plan, and that's absolutely why we sold off," said Mike Shea, a managing partner and trader at Direct Access Partners LLC, in New York.


Obama offered hope for a last-minute agreement to avoid the fiscal cliff after a meeting with congressional leaders, although he scolded Congress for leaving the problem unresolved until the 11th hour.


"The hour for immediate action is here," he told reporters at a White House briefing. "I'm modestly optimistic that an agreement can be achieved."


The U.S. House of Representatives is set to convene on Sunday and continue working through the New Year's Day holiday. Obama has proposed maintaining current tax rates for all but the highest earners.


Consumers don't appear at all traumatized by the fiscal cliff talks, as yet. Helping to bolster consumer confidence has been a continued recovery in the housing market and growth in the labor market, albeit slow.


The latest take on employment will be out next Friday, when the U.S. Labor Department's non-farm payrolls report is expected to show jobs growth of 145,000 for December, in line with recent growth.


Consumers will see their paychecks affected if lawmakers cannot broker a deal and tax rates rise, but the effect on spending is likely to be gradual.


PLAYING DEFENSE


Options strategists have noted an increase in positions to guard against weakness in defense stocks such as General Dynamics because those stocks would be affected by spending cuts set for that sector. Notably, though, the PHLX Defense Index is less than 1 percent away from an all-time high reached on December 20.


This underscores the view taken by most investors and strategists: One way or another, Washington will come to an agreement to offset some effects of the cliff. The result will not be entirely satisfying, but it will be enough to satisfy investors.


"Expectations are pretty low at this point, and yet the equity market hasn't reacted," said Carmine Grigoli, chief U.S. investment strategist at Mizuho Securities USA, in New York. "You're not going to see the markets react to anything with more than a 5 (percent) to 7 percent correction."


Save for a brief 3.6 percent drop in equity futures late on Thursday evening last week after House Speaker John Boehner had to cancel a scheduled vote on a tax-hike bill due to lack of Republican support, markets have not shown the same kind of volatility as in 2008 or 2011.


A gradual decline remains possible, Golub said, if business and consumer confidence continues to take a hit on the back of fiscal cliff worries. The Conference Board's measure of consumer confidence fell sharply in December, a drop blamed in part on the fiscal issues.


"If Congress came out and said that everything is off the table, yeah, that would be a short-term shock to the market, but that's not likely," said Richard Weiss, a Mountain View, California-based senior money manager at American Century Investments.


"Things will be resolved, just maybe not on a good time table. All else being equal, we see any further decline as a buying opportunity."


(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: david.gaffen(at)thomsonreuters.com)


(Reporting by Edward Krudy and Ryan Vlastelica in New York and Doris Frankel in Chicago; Writing by David Gaffen; Editing by Martin Howell, Steve Orlofsky and Jan Paschal)



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Barvikha, Russia, Draws Embattled Leaders Like Assad


Olga Kravets for The New York Times


Barvikha, near Moscow, is a magnet for deposed leaders given asylum in Russia. Barvikha Luxury Village, a mall, includes Gucci and Ralph Lauren shops.







BARVIKHA, Russia — A few years back, before he settled in this bucolic town in a pine forest near Moscow, Askar Akayev, then the president of Kyrgyzstan, had a very stressful day.




Outside his presidential palace, an angry mob had gathered. An overturned car was on fire. Protesters had shinned over a wrought-iron fence and were breaking ground-floor windows and prying open doors.


Then came word from a security adviser: The time had come.


“I left in the suit I was standing up in,” Mr. Akayev told a journalist soon after his downfall in March 2005. Within days he was here, staying in a government-owned sanitarium — and in good company.


This improbable small town of villas and luxury boutiques, built around the sanitarium where Mr. Akayev stayed, is home to half a dozen or so deposed leaders and members of their families.


And in its snowy tranquillity, it offers one strange, possible future for the embattled president of Syria, Bashar al-Assad, as Western governments have been pressuring Russia since summer to smooth his departure with an offer of asylum.


For now, even with rebel fighters closing in on Damascus, diplomats in Russia, Mr. Assad’s most important ally, have denied they are considering granting him safe haven as a step toward resolution of the conflict. But the Russians have come through with 11-hour rescues of their allies before.


“The Russians have experience with getting heads of state out in the nick of time,” said Mark N. Katz, a professor of government and politics at George Mason University in Virginia. “They could be trying to signal to Assad there is an offer, but the window of opportunity is not going to remain open for a long time.”


Leaders’ hurried packing and just-in-time flight to this place from angry street crowds or the nearing sound of gunfire brought measures of resolution to conflicts in the former Yugoslavia, Georgia, Kyrgyzstan and elsewhere.


Russia has been inching closer to agreeing to a settlement that would include Mr. Assad’s departure, if that is even possible at this juncture, with rebels occupying parts of the capital and firing mortar rounds at the presidential palace in the Muhajireen neighborhood of Damascus.


On Thursday, the United Nations envoy to Syria, Lakhdar Brahimi, and Russian diplomats agreed to revive a peace initiative that stalled last summer after the Russians insisted it refrain from specifically excluding a role for Mr. Assad in any transition government. It was unclear whether Russia would accede to such a demand in any new agreement, and if so, whether the Syrian leader would land here.


Not all political exiles live in the districts of spacious country homes that lie here, along the Ryublyovsky Highway, but many do.


By many accounts, once here, these people enjoy the quiet and privileged afterlife of former elites of Soviet or Russian client states that have folded. In a snowy shopping center, the Barvikha Luxury Village, Gucci, Ralph Lauren and Dolce & Gabbana shops were open on a recent visit, of possible interest to Mr. Assad’s wife, Asma al-Assad, who is known to dress fashionably.


Borislav Milosevic, the brother of Slobodan Milosevic, the former Serbian leader who was accused of war crimes and who died in 2006, said that family members who had settled in Barvikha had been getting on swimmingly since the Yugoslav conflicts faded from the news.


The former leader’s widow, Mirjana Markovic, and son, Marko Milosevic, live in separate villas here.


“People come from Serbia to visit,” Borislav Milosevic said in a telephone interview about Ms. Markovic’s nine years in exile, a life he described as wholly “ordinary” in its daily routines. “She has friends over all the time. She lives a respectable, normal life.”


Ms. Markovic has been compiling a book of her husband’s interviews, and her son is married to a Russian woman, with whom he has a daughter.


Ms. Markovic’s experience of exile in this town, with children and grandchildren nearby, is not burdensome or isolating, Borislav Milosevic said.


The neighborhood would by no means be seen as going downhill if the Assads came to Barvikha, Mr. Milosevic said. Accepting Asma al-Assad and the children in particular, he said, would be a “humanitarian gesture.”


Ms. Markovic, asked by phone if a reporter could visit her country home for an interview, declined.


Ellen Barry contributed reporting from Moscow.



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Makers of $99 Android-Powered Game Console Ship First 1,200 ‘Ouyas’






Like Nintendo’s Wii U game console, the Ouya (that’s “OOH-yuh”) has an unusual name and even more unusual hardware. The console is roughly the size of a Rubik’s cube, and is powered by Android, Google‘s open-source operating system that’s normally found on smartphones and tablets.


Ouya’s makers, who are preparing the console for its commercial launch, encourage interested gamers to pop the case open and use it in electronics projects … or even to write their own games for it. Especially if they’re among the 1,200 who are about to receive their own clear plastic Ouya developer consoles.






Not exactly a finished product


The limited-edition consoles, which have been shipped out to developers already, are not designed for playing games on. They don’t even come with any.


Rather, the point of these consoles is so that interested Android developers can write games for the Ouya, which will then be released to gamers when the console launches to the public. Fans who pledged at least $ 1,337 to Ouya’s record-breaking Kickstarter project will get one, and while they’re not quite suited for playing games on — “we know the D-pad and triggers on the controller still need work,” Ouya’s makers say — the clear plastic developer consoles serve as a preview of what the finished product will look like, and a reminder of Ouya’s “openness.”


You keep using that word …


In the food and drug industries, terms like “organic” and “all-natural” are regulated so that only products which meet the criteria can have them on their labels. In the tech world, however, anyone can claim that their product is “open,” for whatever definition of “open” they like.


The term was popularized by the world’s rapid adoption of open-source software, like Android itself, where you’re legally entitled to a copy of the programming code and can normally use it in your own projects (like Ouya’s makers did). But when tech companies say that something is “open,” they don’t necessarily mean that the code or the hardware schematics use an open-source license.


How Ouya is “open”


Ouya’s makers have released their ODK, or developer kit, under the same open-source license as Android itself. This allows aspiring game developers to practice their skills even without a developer console, and to improve the kit however they want. The hardware itself is currently a “closed” design, however, despite the clear plastic case. The makers have expressed enthusiasm for the idea of hardware hackers using it in projects, and have said, “We’ll even publish the hardware design if people want it,” but so far they haven’t done so.


What about the games?


The most relevant aspect of “openness” to normal gamers is that Ouya’s makers say “any developer can publish a game.” This model is unusual for the console world, where only select studios are allowed to publish their wares on (for instance) the PlayStation Network, but is more familiar to fans of the anything-goes Google Play store for Android. Several big-name Android developers — including console game titan Square-Enix — have already signed up to have their wares on the Ouya.


Preordered Ouya game consoles (the normal ones, not the developer edition) will ship in April. They will cost $ 99 once sales are opened to the general public.


Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.
Linux/Open Source News Headlines – Yahoo! News





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Matthew McConaughey & Wife Camila Welcome Baby No. 3















12/28/2012 at 06:10 PM EST







Camila and Matthew McConaughey


Gary Miller/FilmMagic


It's a very merry holiday week for Matthew McConaughey and his wife Camila.

The couple welcomed their third child together in Austin, Texas, on Friday, sources confirm to PEOPLE.

The pair, who are also parents to Vida, who turns 3 next month, and Levi, 4, announced the pregnancy just one month after their June nuptials in Texas.

Camila, 29, joked that even as she put on pregnancy pounds, her actor husband, 43, was losing weight – dramatically – for The Dallas Buyers Club, in which he plays the real-life Ron Woodruff, who contracted HIV.

"We have gone the complete opposite direction eating wise, but we're navigating it," she said last summer. "But I don't really have cravings yet."

McConaughey's latest movie, Mud, will be released April. 26,

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Kenya hospital imprisons new mothers with no money


NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.


Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.


Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.


"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."


"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."


The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.


Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.


"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.


She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.


A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.


"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.


Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.


One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.


Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.


___


Associated Press reporter Tom Odula contributed to this report.


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Wall Street ends sour week with fifth straight decline

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 down 2 percent at $85.10, and Chevron Corp off 1.9 percent at $106.45. The S&P material sector index <.gspm> fell 1.3 percent, with U.S. Steel Corp 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 rose 4.3 percent to $14.97 after the top U.S. bookstore chain said British publisher Pearson Plc 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 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 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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Afghan Police, Betrayed in Sleep, Suffer Losses





KABUL, Afghanistan — A wave of betrayal has left at least 17 Afghan policemen dead in the past 10 days — all killed in their sleep, at the hands of those close to them.




Early Thursday morning, an Afghan policeman unlocked the door of the check post where he was stationed in Oruzgan Province and let in his friends from the Taliban, who helped him attack his sleeping colleagues with knives and guns, eventually killing four and wounding eight.


On Sunday, a local police commander in a remote northern province, Jawzjan, shot to death, in their beds, five men under his command and fled to join the Taliban.


And on Dec. 18, a teenager, apparently being kept for sexual purposes by an Afghan border police commander in southern Kandahar Province, drugged the commander and the other 10 policemen at the post to put them to sleep, and then shot them all; eight died.


In the crisis that has risen in the past year over insider killings, in which Afghan security forces turn on their allies, the toll has been even heavier for the Afghans themselves — at least 86 in a count by The New York Times this year, and the full toll is likely to be higher — than it has been for American and other NATO forces, which have lost at least 62 so far, the latest in Kabul on Monday.


Unlike most insider attacks against foreign forces, known as “green on blue” killings, most of the attacks between Afghans, “green on green,” have been clear cases of either infiltration by Taliban insurgents or turncoat attacks. As with the three recent attacks, they have fallen most heavily on police units, and they have followed a familiar pattern: the Taliban either infiltrate someone into a unit, or win over someone already in a unit, who then kills his comrades in their sleep. Frequently, the victims are first poisoned or drugged at dinner.


“I tell my cook not to allow any police officer in the kitchen,” said Taaj Mohammad, a commander of a border police check post near the one in Kandahar that was attacked on Dec. 18. “This kind of incident really creates mistrust among comrades, which is not good. Now we don’t trust anyone, even those who spent years in the post.”


The most recent of the green-on-green betrayals took place on Thursday about 3 a.m., in the town of Tirin Kot, the capital of Oruzgan Province in southern Afghanistan. According to Fareed Ayal, a spokesman for the provincial police chief, a police officer named Hayat Khan, who had been in regular touch with the Taliban for religious guidance, waited until the other officers at his check post fell asleep and then called Taliban fighters by cellphone and let them in. First the attackers stabbed the one officer who was on watch, but he raised the alarm in time to awaken some of the police officers.


In the ensuing firefight, four policemen were killed and eight wounded, while Mr. Khan and his Taliban confederates managed to escape, according to Mr. Ayal’s account.


In the attack on Sunday, in Jawzjan Province, the victims were all part of an Afghan Local Police unit whose commander had previous connections with the Taliban. Such local police units, strongly supported as part of American policy in Afghanistan, undergo training, and community leaders and elders offer guarantees that the units have no further insurgent ties.


Gen. Abdul Aziz Ghairat of the Jawzjan Provincial Police said that the commander who had killed the men in their sleep, Dur Mohammad, had fled but that his relatives and a community elder who vouched for him had been detained and were being interrogated.


In some green-on-green cases, personal grievances may drive the attackers to throw in their lot with the Taliban.


That is apparently what happened in the case of Noor Agha, a young man who the police say killed eight border security police officers in their check post on the border near Spinbaldak, the major crossing point between Kandahar and Pakistan, on Dec. 18.


The police said that Mr. Agha, whose age was unclear but whom police sources described as “still beardless,” had been the involuntary companion of the border police commander at that check post, Agha Amire, for several years. Other police commanders who knew both said there was clearly an “improper relationship” between the two.


While not saying so explicitly, they were suggesting that Mr. Amire was using Mr. Agha in the commonplace practice known as bacha baazi, in which powerful Afghan commanders frequently keep young boys as personal servants, dancers and sex slaves.


The practice was outlawed during Taliban times but has never gone away, and even some provincial governors and other top officials openly keep bacha baazi harems. The practice was noted in the latest United States State Department’s annual human rights report, but the report said “credible statistics were difficult to acquire as the subject was a source of shame.”


The night of the attack, Mr. Agha offered to make a special dinner for the police at the check post and invited two friends to attend. He and his friends put drugs in the food and then shot everyone there, including Mr. Amire, and the three attackers escaped across the border to join Taliban insurgents in Pakistan, according to a police official. Mr. Agha’s family, who lived in Arghandab district, a former Taliban stronghold near Kandahar city, fled their home, leaving behind livestock and personal possessions, according to police officials and relatives of the commander.


Although a police official who spoke on the condition of anonymity put the toll at eight dead and three wounded in that episode, officially, the Kandahar Province police chief, Gen. Abdul Raziq, said only four had been killed and three wounded. General Raziq also denied that there had been a young boy involved in drugging the food.


The wave of killings over the past year has police officers all over Afghanistan watching what they eat, and sleeping uneasily.


“We make sure that nobody gets the chance to poison the food,” said Sharif Agha, 26, a police sergeant who commands a small outpost in Khost city, in eastern Afghanistan. The ten officers there take turns helping the cook and make sure at least two people are in the kitchen at all times. At night, a third guard is assigned to watch the two guards normally on duty.


“I don’t know about the rest of the guys,” Sergeant Agha said, “but I have not slept properly over the past few months.”


Reporting was contributed by Taimoor Shah from Kandahar, Afghanistan; Habib Zahori and Jawad Sukhanyar from Kabul; and Enayat Najafizada from Mazar-i-Sharif, Afghanistan.



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