Russia says Syrian rebels might win; car bomb kills 16

BEIRUT (Reuters) - Syrian rebels are gaining ground and might win, Russia's deputy foreign minister said on Thursday, in the starkest such admission from a major ally of President Bashar al-Assad.

"One must look the facts in the face," Russia's state-run RIA quoted Mikhail Bogdanov as saying. "Unfortunately, the victory of the Syrian opposition cannot be ruled out."

Bogdanov, who is Kremlin's special envoy for Middle East affairs, said the Syrian government was "losing control of more and more territory" and that Moscow was preparing plans to evacuate Russian citizens if necessary.

Advancing rebels now hold an almost continuous arc of territory from the east to the southeast of Damascus, despite fierce army bombardments designed to drive them back.

A car bomb killed at least 16 men, women and children in Qatana, a town about 25 km (15 miles) southwest of Damascus where many soldiers live, activists and state media said.

The explosion occurred in a residential area for soldiers in Qatana, which is near several army bases, said Rami Abdelrahman, head of the pro-opposition Syrian Observatory for Human Rights.

He put the death toll as 17, including seven children and two women. State news agency SANA said 16 people had died.

State television blamed the blast on "terrorists" - its term for rebels - and showed footage of soldiers walking by a partly collapsed building, with rubble and twisted metal on the road.

The attack follows three bombs at the Interior Ministry on Wednesday evening, in which state news agency SANA said five people were killed, including Abdullah Kayrouz, a member of parliament from the Syrian Social Nationalist Party.

Apart from gaining territory in the outskirts of Damascus in recent weeks, rebels have also made hit-and-run attacks or set off bombs within the capital, often targeting state security buildings or areas seen as loyal to Assad, such as Jaramana, where twin bombs killed 34 people in November.

BACK TO THE WALL

Insurgents launched an offensive on Damascus after a July 18 bombing that killed four of Assad's closest aides, including his feared brother-in-law Assef Shawkat, but were later pushed back.

With his back to the wall, Assad is reported to be turning ever deadlier weapons on his adversaries.

U.S. NATO officials said on Wednesday that the Syrian military had fired Scud-style ballistic missiles, which are powerful but not very accurate, against rebels in recent days.

Human Rights Watch said some populated areas had been hit by incendiary bombs, containing flammable materials such as napalm, thermite or white phosphorous, which can set fire to buildings or cause severe burns and respiratory damage.

The British-based Syrian Observatory said war planes were bombing rebel-held eastern suburbs of Damascus on Thursday and artillery was hitting Daraya and Moadamiyeh, southwestern areas near the centre where rebels have been fighting for a foothold.

At least 40,000 people have been killed in Syria's uprising, which started in March 2011 with street protests which were met with gunfire by Assad's security forces, and which spiraled into the most enduring and destructive of the Arab revolts.

The United States, European powers and Arab states bestowed their official blessing on Syria's newly-formed opposition coalition on Wednesday, despite increasing signs of Western unease at the rise of militant Islamists in the rebel ranks.

Western nations at "Friends of Syria" talks in Marrakech, Morocco rallied around a new opposition National Coalition formed last month under moderate Islamist cleric Mouaz Alkhatib.

Russia, which along with China has blocked any U.N. Security Council measures against Assad, criticized Washington's decision to grant the coalition formal recognition, saying it appeared to have abandoned any effort to reach a political solution.

Bogdanov's remarks were the clearest sign yet that Russia is preparing for the possible defeat of Assad's government.

"We are dealing with issues of preparations for an evacuation. We have mobilization plans and are clarifying where our citizens are located," Bogdanov said.

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Cricket: Clarke vows no complacency against Sri Lanka

HOBART, Australia: Skipper Michael Clarke has vowed there will be no complacency in the Test series with Sri Lanka, insisting Australia will improve on their recent performances against South Africa.

The Australians had the better of the opening two Tests against the world number one Proteas only to be crushed by 309 runs in the series decider in Perth last week.

Sri Lanka are ranked sixth in the world, have not won in 10 Tests in Australia over 25 years and are rated outsiders to upset Clarke's team in the three-Test series, beginning in Hobart on Friday.

Former Australian quick Rodney Hogg has rubbished the Sri Lankan attack as the "worst ever" to come to Australia, with Nuwan Kulasekara, Shaminda Eranga and Chanaka Welegedara only having 38 Tests and 99 wickets between them.

Clarke said the third-ranked Australia were focused only on beating Sri Lanka in the first Test since 168-Test great Ricky Ponting's retirement.

"The opposition is irrelevant to how you judge yourself as players," he said.

"Our goal is not to come out and play the same way against Sri Lanka as we did against South Africa.

"We have to learn from that series, take the positives - and I thought there were a lot of positives - and the areas where we need to get better, we need to make sure we do that.

"I'm sure that if we improve on the series against South Africa, we'll continue to have success."

Mitchell Johnson has been left out for the Hobart Test with Australia opting for the pace attack of Ben Hilfenhaus, Peter Siddle and left-armer Mitchell Starc, supplemented by swing bowler Shane Watson and spinner Nathan Lyon.

Recalled Phil Hughes will bat at number three with Watson at four while Clarke and veteran Mike Hussey stay at five and six in the Australian line-up now missing Ponting.

"The strength and advantage we now have in our top four is that all four have opened the batting for Australia," Clarke said.

"So against the new ball they will be very well suited and if we lose early wickets we're still very capable against the new ball which is a real positive."

Clarke also defended the daredevil batting style of opener David Warner, whose second innings dismissal for 29 against South Africa in Perth triggered criticism.

"The one thing we have to understand about Davey, is that the same ball that got him out in Perth, we were all applauding in Adelaide when it went over slips for four. That's the way he plays," he said.

"The only thing I continue to say to Davey is to make sure his intent is there. When the intent is there, his defence is better, his shot selection is better.

"Sometimes it's not going to look great when he gets out, but on the other hand he has the X-factor. He takes the game away from the opposition in the first session of a Test match ... there's not many players in the world that have that talent."

Clarke rated Warner's unbeaten 123 in last year's Hobart Test against New Zealand as among the dashing left-hander's finest.

"I think one of Davey's greatest innings was the hundred he scored here against New Zealand in really tough batting conditions. He still had that intent, even though the wicket was doing a lot. His shot selection was perfect. "In a perfect world, you'd love to bottle that, but you have to have a bit of give and take with Davey."

- AFP/de

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5-year-old girl dies after consuming expired noodles

SRINAGAR: A five-year-old girl died while other family members were taken seriously ill after they consumed a packet of expired noodles in south Kashmir's Kulgam district, police said.

Abroo, daughter of Nisar Ahmad Chak of Manzgam village, along with her parents and three siblings, fell unconscious after consuming the noodles, which had expired in the year 2007, on Tuesday evening, superintendent of police, Kulgam, Muhammad Shafi Mir told PTI.

The pack of noodles had been brought from the family's own shop owned by Chak and his brother Gulzar Ahmad Chak, Shafi said.

The entire family was immediately rushed to a hospital in Kulgam where they were given a 'gastric lavage' (stomach wash), afterwards which they were referred to Srinagar for further treatment, he said.

Abroo died on the way to Srinagar, he said, adding that the other members of the family are being treated in two different hospitals of Srinagar.

The parents are under treatment at SMHS hospital, while the children were admitted to G B Pant hospital here.

The SP said the noodle wrapper and other samples have been taken by the police for evidence and a detailed report is awaited.

Police has registered a case under section 174 of CRPC and investigations are on, Shafi said.

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Dozens sue pharmacy, but compensation uncertain

NASHVILLE, Tenn. (AP) — Dennis O'Brien rubs his head as he details ailments triggered by the fungal meningitis he developed after a series of steroid shots in his neck: nausea, vomiting, dizziness, drowsiness, blurred vision, exhaustion and trouble with his speech and attention.

He estimates the disease has cost him and his wife thousands of dollars in out-of-pocket expenses and her lost wages, including time spent on 6-hour round trip weekly visits to the hospital. They've filed a lawsuit seeking $4 million in damages from the Massachusetts pharmacy that supplied the steroid injections, but it could take years for them to get any money back and they may never get enough to cover their expenses. The same is true for dozens of others who have sued the New England Compounding Center.

"I don't have a life anymore. My life is a meningitis life," the 59-year-old former school teacher said, adding that he's grateful he survived.

His is one of at least 50 federal lawsuits in nine states that have been filed against NECC, and more are being filed in state courts every day. More than 500 people have gotten sick after receiving injections prepared by the pharmacy.

The lawsuits allege that NECC negligently produced a defective and dangerous product and seek millions to repay families for the death of spouses, physically painful recoveries, lost wages and mental and emotional suffering. Thirty-seven people have died in the outbreak.

"The truth is the chance of recovering damages from NECC is extremely low," said John Day, a Nashville attorney who represents several patients who have been sickened by fungal meningitis.

To streamline the process, attorneys on both sides are asking to have a single judge preside over the pretrial and discovery phases for all of the federal lawsuits.

This approach, called multidistrict litigation, would prevent inconsistent pretrial rulings and conserve resources of all parties. But unlike a class-action case, those lawsuits would eventually be returned to judges in their original district for trial, according to Brian Fitzpatrick, a law professor at Vanderbilt University Law School in Nashville.

Even with this approach, Fitzpatrick noted that federal litigation is very slow, and gathering all the evidence, records and depositions during the discovery phase could take months or years.

"Most of the time what happens is once they are consolidated for pretrial proceedings, there is a settlement, a global settlement between all the lawyers and the defendants before anything is shipped back for trial," he said.

A lawyer representing NECC, Frederick H. Fern, described the consolidation process as an important step.

"A Boston venue is probably the best scenario," Fern said in an email. "That's where the parties, witnesses and documents are located, and where the acts subject to these complaints occurred."

Complicating efforts to recover damages, attorneys for the patients said, NECC is a small private company that has now recalled all its products and laid off its workers. The company's pharmacy licenses have been surrendered, and it's unclear whether NECC had adequate liability insurance.

Fern said NECC has insurance, but they were still determining what the policy covers.

But Day says, "It's clear to me that at the end of the day, NECC is not going to have sufficient assets to compensate any of these people, not even 1 percent."

As a result, many attorneys are seeking compensation from other parties. Among the additional defendants named in lawsuits are NECC pharmacist and co-founder Barry Cadden; co-founder Greg Conigliaro; sister company Ameridose and its marketing and support arm, Medical Sales Management.

Founded in 2006 by Cadden and Conigliaro, Ameridose would eventually report annual revenue of $100 million. An NECC spokesman didn't respond to a request for the pharmacy's revenue.

While Federal Drug Administration regulators have also found contamination issues at Westborough, Mass.-based Ameridose, the FDA has said it has not connected Ameridose drugs to infection or illness.

Under tort law, a lawsuit has to prove a defendant has a potential liability, which in this case could be anyone involved in the medical procedure. However, any such suit could take years and ultimately may not be successful.

"I would not be surprised if doctors, hospitals, people that actually injected the drugs, the people that bought the drugs from the compounding company, many of those people will also be sued," said Fitzpatrick.

Plaintiffs' attorneys said they're considering that option but want more information on the relationships between the compounding pharmacy and the hundreds of hospitals and clinics that received its products.

Day, the attorney in Tennessee, said the clinics and doctors that purchase their drugs from compounding pharmacies or manufacturers could be held liable for negligence because they are in a better position to determine the safety of the medicine than the patients.

"Did they use due care in determining from whom to buy these drugs?" Day said.

Terry Dawes, a Michigan attorney who has filed at least 10 federal lawsuits in the case, said in traditional product liability cases, a pharmaceutical distributor could be liable.

"We are looking at any conceivable sources of recovery for our clients including pharmaceutical supply places that may have dealt with this company in the past," he said.

Ten years ago, seven fungal meningitis illnesses and deaths were linked to injectable steroid from a South Carolina compounding pharmacy. That resulted in fewer than a dozen lawsuits, a scale much smaller than the litigations mounting up against NECC.

Two companies that insured the South Carolina pharmacy and its operators tried unsuccessfully to deny payouts. An appellate court ruled against their argument that the pharmacy willfully violated state regulations by making multiple vials of the drug without specific prescriptions, but the opinion was unpublished and doesn't set a precedent for the current litigation.

The lawsuits represent a way for patients and their families recover expenses, but also to hold the pharmacy and others accountable for the incalculable emotional and physical toll of the disease.

A binder of snapshots shows what life is like in the O'Briens' rural Fentress County, Tenn., home: Dennis hooked up to an IV, Dennis in an antibiotics stupor, bruises on his body from injections and blood tests. He's had three spinal taps. His 11-day stay in the hospital cost over $100,000, which was covered by health insurance.

His wife said she sometimes quietly checks at night to see whether her husband of 35 years is still breathing.

"In my mind, I thought we were going to fight this and get over it. But we are not ever going to get over it," said Kaye O'Brien.

Marjorie Norwood, a 59-year-old grandmother of three who lives in Ethridge, Tenn., has spent just shy of two months total in the hospital in Nashville battling fungal meningitis after receiving a steroid injection in her back. She was allowed to come home for almost a week around Thanksgiving, but was readmitted after her symptoms worsened.

Family members are still dealing with much uncertainty about her recovery, but they have not filed a lawsuit, said their attorney Mark Chalos. He said Norwood will likely be sent to a rehabilitation facility after her second stay in the hospital rather than return home again.

Marjorie Norwood's husband, an autoworker, has taken time off work to care for her and they depend on his income and insurance.

"It doesn't just change her life, it changes everyone else's life around her because we care about her and want her to be happy and well and have everything that she needs," said her daughter, Melanie Norwood.

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McAfee Returns to US, Admits Playing 'Crazy Card'

John McAfee's month-long international run from police through two Central American nations ended with a flight to Miami, where the businessman who says he abandoned his fortune admitted to playing the "crazy card."

As a gaggle of media waited near several exit doors at the airport Wednesday night, federal authorities whisked the founder of McAfee anti-virus software off the plane and into a van.

"They said, 'Mr. McAfee, please step forward,'" McAfee, 67, later told ABC News exclusively overnight at a Miami Beach hotel. "I was met by a dozen or maybe fewer officers. I said, 'Am I arrested?' They said, 'No, sir, I am here to help you.' That felt the best of all."

He eventually snuck out of the airport in a cab and headed to South Beach. After walking down famed Ocean Drive to the bewilderment of tourists and eating sushi, his first meal in three days, he sat down with ABC News and admitted to playing the "crazy card" and says he is broke.

"I have nothing now," McAfee said. He claims he left everything behind in Belize, including $20 million in investments and about 15 properties. "I've got a pair of clothes and shoes, my friend dropped off some cash."

Just hours earlier, the self-made millionaire was deported by Guatemalan police who forced him aboard his U.S.-bound flight away from the home and the two women he said he loves. After he arrived on South Beach, he said, a mysterious "Canadian friend" ordered another man he'd never met to drop off a wad of fresh $5 bills that McAfee later displayed to ABC News, pulling them from his coat pocket.

John McAfee Arrested in Guatemala Overnight Watch Video

Software Founder Breaks Silence: McAfee Speaks on Murder Allegations Watch Video

He says he left his fortune, including a beachfront compound, behind after his neighbor Greg Faull was found shot to death in Belize on Nov. 10.

Belize officials said he isn't a suspect, but when they asked to question him, McAfee disguised himself and ran.

After three weeks ducking authorities in Belize, by hiding in attics, in the jungle and in dingy hotels, he turned up in Guatemala Dec. 3.

Barely a day later he was detained for entering the country illegally. As Guatemala officials grappled with how to handle his request for asylum and the Belize government's demand for his deportation, McAfee fell ill. The mysterious illness, described by his attorney alternately as a heart ailment or a nervous breakdown, led to a scene with reporters chasing his ambulance down the narrow streets of Guatemala City and right into the emergency room, where McAfee appeared unresponsive.

He now says it was all a ruse:
"It was a deception but who did it hurt? I look pretty healthy, don't I?"

He says he faked the illness in order to buy some time for a judge to hear his case and stay his deportation to Belize, a government he believes wants him dead. When asked whether he believes Belize officials where inept, he didn't mince words.

"I was on the run with a 20-year-old girl for three and a half weeks inside their borders and everyone was looking for me, and they did not catch me," he said. "I escaped, was captured and they tried to send me back. Now I'm sitting in Miami. There had to be some ineptness."

The man who many believe only wants attention answered critics who called his month-long odyssey and blog posts a publicity stunt by simply saying, "What's a better story, millionaire mad man on the run. You [the media] saved my ass. Because you paid attention to the story. As long as you are reporting, it is hard to whack somebody that the world is watching."

He denies any involvement in his neighbor's death but adds that he is not particularly concerned about clearing his name. He is focused on getting his 20-year-old and 17-year-old girlfriends out of Belize and says he has no idea what he'll do next, where he'll live or how he'll support himself.

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North Korea's new leader burnishes credentials with rocket

SEOUL/TOKYO (Reuters) - North Korea successfully launched a rocket on Wednesday, boosting the credentials of its new leader and stepping up the threat the isolated and impoverished state poses to opponents.

The rocket, which North Korea says put a weather satellite into orbit, has been labeled by the United States, South Korea and Japan as a test of technology that could one day deliver a nuclear warhead capable of hitting targets as far away as the continental United States.

"The satellite has entered the planned orbit," a North Korean television news reader clad in traditional Korean garb announced, after which the station played patriotic songs with the lyrics "Chosun (Korea) does what it says".

The rocket was launched just before 10 a.m. (0100 GMT), according to defense officials in South Korea and Japan, and was more successful than a rocket launched in April that flew for less than two minutes.

The North American Aerospace Defense Command (NORAD) said that it "deployed an object that appeared to achieve orbit", the first time an independent body has verified North Korean claims.

North Korea followed what it said was a similar successful launch in 2009 with a nuclear test that prompted the U.N. Security Council to stiffen sanctions that it originally imposed in 2006 after the North's first nuclear test.

North Korea is banned from developing nuclear and missile-related technology under U.N. resolutions, although Kim Jong-un, the youthful head of state who took power a year ago, is believed to have continued the state's "military first" programs put in place by his late father, Kim Jong-Il.

North Korea hailed the launch as celebrating the prowess of all three members of the Kim family to rule since it was founded in 1948.

"At a time when great yearnings and reverence for Kim Jong-il pervade the whole country, its scientists and technicians brilliantly carried out his behests to launch a scientific and technological satellite in 2012, the year marking the 100th birth anniversary of President Kim Il Sung," its KCNA news agency said. Kim Il Sung, the current leader's grandfather, was North Korea's first leader.

The United States condemned the launch as "provocative" and a breach of U.N. rules, while Japan's U.N. envoy called for a Security Council meeting. However, diplomats say further tough sanctions are unlikely from the Security Council as China, the North's only major ally, will oppose them.

"The international community must work in a concerted fashion to send North Korea a clear message that its violations of United Nations Security Council resolutions have consequences," the White House said in a statement.

U.S. intelligence has linked North Korea with missile shipments to Iran. Newspapers in Japan and South Korea have reported that Iranian observers were in the North for the launch, something Iran has denied.

Japan's likely next prime minister, Shinzo Abe, who is leading in opinion polls ahead of an election on Sunday and who is known as a hawk on North Korea, called on the United Nations to adopt a resolution "strongly criticizing" Pyongyang.

A North Korean Foreign Ministry spokesman reiterated that the rocket was a "peaceful project".

"The attempt to see our satellite launch as a long-range missile launch for military purposes comes from hostile perception that tries to designate us a cause for security tension," KCNA cited the spokesman as saying.

"STUMBLING BLOCK"

China had expressed "deep concern" prior to the launch which was announced a day after a top politburo member, representing new Chinese leader Xi Jinping, met Kim Jong-un in Pyongyang.

On Wednesday, its tone was measured, regretting the launch but calling for restraint on any counter-measures, in line with a policy of effectively vetoing tougher sanctions.

"China believes the Security Council's response should be cautious and moderate, protect the overall peaceful and stable situation on the Korean peninsula, and avoid an escalation," Chinese Foreign Ministry spokesman Hong Lei told journalists.

Bruce Klingner, a Korea expert at the Heritage Foundation, said: "China has been the stumbling block to firmer U.N. action and we'll have to see if the new leadership is any different than its predecessors."

A senior adviser to South Korea's president said last week it was unlikely there would be action from the United Nations and Seoul would expect its allies to tighten sanctions unilaterally.

Kim Jong-un, believed to be 29 years old, took power when his father died on December 17 last year and experts believe the launch was intended to commemorate the first anniversary of his death. The April launch was timed for the centennial of the birth of Kim Il Sung.

Wednesday's success puts the North ahead of the South which has not managed to get a rocket off the ground.

"This is a considerable boost in establishing the rule of Kim Jong-un," said Cho Min, an expert at the Korea Institute of National Unification.

There have been few indications the secretive and impoverished state, where the United Nations estimates a third of people are malnourished, has made any advances in opening up economically over the past year.

North Korea remains reliant on minerals exports to China and remittances from tens of thousands of its workers overseas.

Many of its 22 million people need handouts from defectors, who have escaped to South Korea, for basic medicines.

Given the puny size of its economy - per capita income is less than $2,000 a year - one of the few ways the North can attract world attention is by emphasizing its military threat.

It wants the United States to resume aid and to recognize it diplomatically, although the April launch scuppered a planned food deal.

The North is believed to be some years away from developing a functioning nuclear warhead although it may have enough plutonium for about half a dozen nuclear bombs, according to nuclear experts.

It has also been enriching uranium, which would give it a second path to nuclear weapons as it sits on big natural uranium reserves.

"A successful launch puts North Korea closer to the capability to deploy a weaponized missile," said Denny Roy, a senior fellow at the East-West Center in Hawaii.

"But this would still require fitting a weapon to the missile and ensuring a reasonable degree of accuracy. The North Koreans probably do not yet have a nuclear weapon small enough for a missile to carry."

The North says its work is part of a civil nuclear program although it has also boasted of it being a "nuclear weapons power".

(Additional reporting by Jumin Park and Yoo Choonsik in SEOUL; David Alexander, Matt Spetalnick and Paul Eckert in WASHINGTON; Linda Sieg in TOKYO, Sui-Lee Wee and Michael Martina in BEIJING,; Rosmarie Francisco in MANILA; Writing by David Chance; Editing by Raju Gopalakrishnan and Robert Birsel)

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Asia shares gain, unmoved by North Korea rocket launch

HONG KONG: Asian markets rose on Wednesday as dealers welcomed signs of progress in US fiscal cliff talks and upbeat data from Germany and Spain, while shrugging off news of North Korea's rocket launch.

With investors becoming more confident the safe-haven yen came back under pressure ahead of a general election in Japan on Sunday and expectations of more monetary easing by the country's central bank.

Tokyo rose 0.59 percent, adding 56.14 points to 9,581.46, Seoul was up 0.55 percent, gaining 10.82 points to 1,975,44, and Sydney climbed 0.17 percent to a 17-month high, adding 7.8 points to 4,583.8.

Hong Kong ended up 0.80 percent, adding 179.41 points to close at 22,503.35, while Shanghai was 0.39 percent, or 8.03 points, higher at 2,082.73

US President Barack Obama and Republican House Speaker John Boehner have swapped new offers to avoid the fiscal cliff of huge tax hikes and spending cuts due to come into effect on January 1, according to sources on both sides.

It fuelled hopes that the two, who have been at loggerheads over plans to increase taxes on the rich and slashing aid to Medicare, could come to an agreement.

If a deal is not reached by the New Year, the package currently in place is widely expected to send the economy into recession.

Markets are also eyeing a meeting of the Federal Reserve policy committee, which is to decide on what action to take as the end approaches of its "Operation Twist" -- selling short-term debt to buy longer-term debt.

There are expectations that policymakers will replace it with more outright bond purchases, or "quantitative easing", aimed at lowering interest rates to encourage businesses to invest and hire.

Buying support was also provided by positive numbers from Germany, where investor sentiment in Europe's key economic machine hit a seven-month high on hopes it will dodge recession.

The confidence index from the ZEW economic institute surged to 6.9 points in December from minus 15.7 in November. Forecasts had been for a reading of minus 11.3.

It was the highest reading since May and the first time since then that the index has been in positive territory.

Spain also enjoyed a successful Treasury bond auction, easing fears over its ability to raise cash to pay its bills.

Traders on Wall Street ended on a positive note. The Dow rose 0.60 percent, a fifth straight day of gains, while the S&P 500 added 0.65 percent and the Nasdaq climbed 1.18 percent.

Confidence in "riskier" assets hit the yen, usually the go-to unit in times of uncertainty, in US trade on Tuesday and it remained under pressure in Asia Wednesday.

The dollar rose to 82.77 yen, compared with 82.51 yen in New York, while the euro was at 107.70 yen from 107.28 yen. That compares with 82.36 yen and 106.68 yen in Asia Tuesday.

The euro bought $1.3010 Wednesday, from $1.3003 in New York.

The yen has come under pressure in recent weeks ahead of Sunday's polls widely expected to see Prime Minister Yoshihiko Noda's Democratic Party of Japan beaten by the Liberal Democratic Party, which is headed by Shinzo Abe.

Abe, a former prime minister, has promised to push a more aggressive monetary easing policy to jumpstart the economy.

Investors shrugged off news that North Korea had fired its rocket, which critics insist was being used as a disguised ballistic missile test.

Previous launches and nuclear tests have led to an initial asset sell-off owing to geopolitical fears, but regional markets remained up in early trade.

"Frankly, it was almost a non-event," Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities, told Dow Jones Newswires.

On oil markets New York's main contract, West Texas Intermediate for delivery in January, edged up 23 cents to $86.02, and Brent North Sea crude for January added 44 cents at $108.45.

Gold was at $1,713.23 at 0805 GMT compared with $1,709.35 late on Tuesday.

In other markets:

-- Taipei rose 1.0 percent, or 76.5 points, to 7,690.19.

HTC rose 4.05 percent to Tw$282.5 while TSMC was 0.1 percent higher at Tw$98.4.

-- Manila closed 0.20 percent lower, dipping 11.71 points to 5,819.79.

Ayala Corp. fell 3.22 percent to 510 pesos while Philippine Long Distance Telephone slipped 1.29 percent to 2,596 pesos.

-- Wellington ended 0.77 percent, or 30.92 points, lower at 3,995.26.

Telecom fell 2.0 percent to NZ$2.19, Fletcher Building also lost 2.0 percent to NZ$8.28 and Contact Energy was down 2.1 percent at NZ$5.10.

- AFP/lp

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DA investigating Texas' troubled $3B cancer agency

AUSTIN, Texas (AP) — Turmoil surrounding an unprecedented $3 billion cancer-fighting effort in Texas worsened Tuesday when its executive director offered his resignation and the state's chief public corruption prosecutor announced an investigation into the beleaguered agency.

No specific criminal allegations are driving the latest probe into the Cancer Prevention and Research Institute of Texas, said Gregg Cox, director of the Travis County district attorney's public integrity unit. But his influential office opened a case only weeks after the embattled agency disclosed that an $11 million grant to a private company bypassed review.

That award is the latest trouble in a tumultuous year for CPRIT, which controls the nation's second-largest pot of cancer research dollars. Amid the mounting problems, the agency announced Tuesday that Executive Director Bill Gimson had submitted his letter of resignation.

"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote in a letter dated Monday.

Gimson said the troubles have resulted in "wasted efforts expended in low value activities" at the agency, instead of a focused fight against cancer. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.

His departure would complete a remarkable house-cleaning at CPRIT in a span of just eight months. It began in May, when Dr. Alfred Gilman resigned as chief science officer in protest over a different grant that the Nobel laureate wanted approved by a panel of scientists. He warned it would be "the bomb that destroys CPRIT."

Gilman was followed by Chief Commercialization Officer Jerry Cobbs, whose resignation in November came after an internal audit showed Cobbs included an $11 million proposal in a funding slate without a required outside review of the project's merits. The lucrative grant was given to Dallas-based Peloton Therapeutics, a biomedical startup.

Gimson chalked up Peloton's award to an honest mistake and has said that, to his knowledge, no one associated with CPRIT stood to benefit financially from the company receiving the taxpayer funds. That hasn't satisfied some members of the agency's governing board, who called last week for more assurances that no one personally profited.

Cox said he has been following the agency's problems and his office received a number of concerned phone calls. His department in Austin is charged with prosecuting crimes related to government officials; his most famous cases include winning a conviction against former U.S. House Majority Leader Tom DeLay in 2010 on money laundering charges.

"We have to gather the facts and figure what, if any, crime occurred so that (the investigation) can be focused more," Cox said.

Gimson's resignation letter was dated the same day the Texas attorney general's office also announced its investigation of the agency. Cox said his department would work cooperatively with state investigators, but he made clear the probes would be separate.

Peloton's award marks the second time this year that a lucrative taxpayer-funded grant authorized by CPRIT instigated backlash and raised questions about oversight. The first involved the $20 million grant to M.D. Anderson Cancer Center in Houston that Gilman described as a thin proposal that should have first been scrutinized by an outside panel of scientific peer-reviewers, even though none was required under the agency's rules.

Dozens of the nation's top scientists agreed. They resigned en masse from the agency's peer-review panels along with Gilman. Some accused the agency of "hucksterism" and charting a politically-driven path that was putting commercial product-development above science.

The latest shake-up at CPRIT caught Gilman's successor off-guard. Dr. Margaret Kripke, who was introduced to reporters Tuesday, acknowledged that she wasn't even sure who she would be answering to now that Gimson was stepping down. She said that although she wasn't with the agency when her predecessor announced his resignation, she was aware of the concerns and allegations.

"I don't think people would resign frivolously, so there must be some substance to those concerns," Kripke said.

Kripke also acknowledged the challenge of restocking the peer-review panels after the agency's credibility was so publicly smeared by some of the country's top scientists. She said she took the job because she felt the agency's mission and potential was too important to lose.

Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far.

Gov. Rick Perry told reporters in Houston on Tuesday that he wasn't previously aware of the resignation but said Gimson's decision to step down was his own.

Joining the mounting criticism of CPRIT is the woman credited with brainstorming the idea for the agency in the first place. Cathy Bonner, who served under former Texas Gov. Ann Richards, teamed with cancer survivor Lance Armstrong in selling Texas voters in 2007 on a constitutional amendment to create an unprecedented state-run effort to finance a war on disease.

Now Bonner says politics have sullied an agency that she said was built to fund research, not subsidize private companies.

"There appears to be a cover-up going on," Bonner said.

Peloton has declined comment about its award and has referred questions to CPRIT. The agency has said the company wasn't aware that its application was never scrutinized by an outside panel, as required under agency rules.

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Cops Have Identity of Gunman in Oregon Shooting

A masked gunman who opened fire in the crowded Clackamas Town Center mall in suburban Portland, Ore., killing two individuals and seriously injuring a third before killing himself, has been identified by police, though they have not yet released his name.

The shooter, wearing a white hockey mask, black clothing, and a bullet proof vest, tore through the mall around 3:30 p.m. Tuesday, entering through a Macy's store and proceeding to the food court and public areas spraying bullets, according to witness reports.

"We have been able to identify the shooter over last night," Sheriff Craig Roberts told "Good Morning America" today.
"At this point in time, because of the investigation, we're actually doing supplemental search warrants, we're not able to release the name of the individual at point in time for the reason being that we don't want to jeopardize the investigation."

Police have not released the names of the two deceased. Clackamas County Sheriff's Department Lt. James Rhodes said authorities are in the process of notifying victims' families.

The injured victim has been transported to a local hospital, according to Clackamas County Sheriff Craig Roberts.

PHOTOS: Oregon Mall Shooting

Nadia Telguz, who said she was a friend of the injured victim, told ABC News affiliate KATU-TV in Portland that the woman was expected to recover.

"My friend's sister got shot," Teleguz told KATU. "She's on her way to (Oregon Health and Science University hospital). They're saying she got shot in her side and so it's not life-threatening, so she'll be OK."

Christopher Onstott/Pamplen Media Group/Portland Tribune

911 Calls From New Jersey Supermarket Shooting Watch Video

Witnesses from the shooting rampage said that a young man who appeared to be a teenager ran through the upper level of Macy's to the mall food court, firing multiple shots, one right after the other, with what is believed to be a black, semi-automatic rifle.

More than 10,000 shoppers were at the mall during the day, police said. Roberts said that officers responded to the scene of the shooting within minutes, and four SWAT teams swept the 1.4 million-square-foot building searching for the shooter. He was eventually found dead, an apparent suicide.

"I can confirm the shooter is dead of an apparent self-inflicted gunshot wound," Rhodes said. "By all accounts there were no rounds fired by law enforcement today in the mall."

Roberts said more than 100 law enforcement officers responded to the shooting, and at least four local agencies were working on the investigation, including the FBI and Bureau of Alcohol, Tobacco and Firearms, which is working to trace the shooter's weapon.

READ: Guns in America: A Statistical Look

"For all of us, the mall is supposed to be a place where we can take our families, especially during the holiday season," Roberts said. "Things like this are not supposed to happen."

Roberts also said that shoppers, including two emergency room nurses and one physician who happened to be at the mall, provided medical assistance to victims who had been shot. Other shoppers helped escort individuals out of the mall and out of harm's way, he said.

"There were a huge amount of people running in different directions, and it was chaos for a lot of citizens, but true heroes were stepping up in this time of high stress," Roberts said. "E.R. nurses on the scene were providing medical care to those injured, a physician on the scene was helping provide care to the wounded."

Mall shopper Daniel Martinez told KATU that he had just sat down at a Jamba Juice inside the mall when he heard rapid gunfire. He turned and saw the masked gunman, dressed in all black, about 10 feet away from him.

"I just saw him (the gunman) and thought, 'I need to go somewhere,'" Martinez said. "It was so fast, and at that time, everyone was moving around."

Martinez said he ran to the nearest clothing store. As he ran, he motioned for another woman to follow; several others ran to the store as well, hiding in a fitting room. They stayed there for an hour and a half until SWAT teams told them it was safe to leave the mall.

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Nine hurt as gunmen fire at Cairo protesters

CAIRO (Reuters) - Nine people were hurt when gunmen fired at protesters camping in Cairo's Tahrir Square on Tuesday, according to witnesses and Egyptian media, as the opposition called for a major demonstration it hopes will force President Mohamed Mursi to postpone a referendum on a new constitution.

Supporters of the Islamist leader, who want the vote to go ahead as planned on Saturday, were also gathering in the capital, setting the stage for further street confrontations in a political crisis that has divided the Arab world's most populous nation.

Police cars surrounded Tahrir Square in central Cairo, the first time they had appeared in the area since November 23, shortly after a decree by Mursi awarding himself sweeping temporary powers that touched off widespread protests.

The upheaval following the fall of Hosni Mubarak last year is causing concern in the West, in particular the United States, which has given Cairo billions of dollars in military and other aid since Egypt made peace with Israel in 1979.

The Tahrir Square attackers, some masked, also threw petrol bombs which started a small fire, witnesses said.

"The masked men came suddenly and attacked the protesters in Tahrir. The attack was meant to deter us and prevent us from protesting today. We oppose these terror tactics and will stage the biggest protest possible today," said John Gerges, a Christian Egyptian who described himself as a socialist.

The latest bout of unrest has so far claimed seven lives in clashes between the Islamist Muslim Brotherhood and opponents who are also besieging Mursi's presidential palace.

POLICE POWERS

The elite Republican Guard which protects the palace has yet to use force to keep protesters away from the graffiti-daubed building, now ringed with tanks, barbed wire and concrete barricades.

The army has told all sides to resolve their differences through dialogue, saying it would not allow Egypt to enter a "dark tunnel". For the period of the referendum, the army has been granted police powers by Mursi, allowing it to arrest civilians.

The army has portrayed itself as the guarantor of the nation's security but so far it has shown no appetite for a return to the bruising front-line political role it played after the fall of Mubarak, which severely damaged its standing.

Leftists, liberals and other opposition groups have called for marches to the presidential palace later on Tuesday to protest against the hastily arranged constitutional referendum planned for Dec 15, which they say is polarising the country and could put it in a religious straightjacket.

Mohamed ElBaradei, a prominent opposition leader and Nobel prize winner, called for dialogue with Mursi and said the referendum should be postponed for a couple of months due to the chaotic situation.

"This revolution was not staged to replace one dictator with another," he said in an interview with CNN.

Outside the presidential palace, anti-Mursi protesters huddled together in front of their tents, warming themselves beside a bonfire in the winter air.

"The referendum must not take place. The constitution came after blood was spilt. This is not how a country should be run," said Ali Hassan, a man in his 20s.

Opposition leaders want the referendum to be delayed and hope they can get sufficiently large numbers of protesters on the streets to change Mursi's mind.

Islamists, who dominated the body that drew up the constitution, have urged their followers to turn out "in millions" in a show of support for the president and for a referendum they feel sure of winning.

OPPONENTS ANGERED

Leftist politician Hamdeen Sabahy, one of the most prominent members of the National Salvation Front opposition coalition, said Mursi was driving a wedge between Egyptians and destroying prospects for consensus.

As well as pushing the early referendum, Mursi has angered opponents by taking extra powers he said were necessary to secure the transition to stability after the uprising that overthrew Mubarak 22 months ago.

"The road Mohamed Mursi is taking now does not create the possibility for national consensus," said Sabahy. He forecast polarisation if constitution were passed.

The National Salvation Front also includes ElBaradei and former Arab League chief Amr Moussa.

The opposition says the draft constitution fails to embrace the diversity of 83 million Egyptians, a tenth of whom are Christians, and invites Muslim clerics to influence lawmaking.

But debate over the details has largely given way to street protests and megaphone politics, keeping Egypt off balance and ill equipped to deal with a looming economic crisis.

Mahmoud Ghozlan, the Muslim Brotherhood's spokesman, said the opposition could stage protests, but should keep the peace.

"They are free to boycott, participate or say no; they can do what they want. The important thing is that it remains in a peaceful context to preserve the country's safety and security."

The disruption is also casting doubts on the government's ability to push through economic reforms that form part of a proposed $4.8 billion IMF loan agreement.

(Writing by Edmund Blair and Giles Elgood; Editing by Peter Graff and Janet McBride)

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