Mali Tuaregs seize two Islamist leaders fleeing French strikes


KIDAL, Mali (Reuters) - Tuareg rebels in northern Mali said on Monday they had captured two senior Islamist insurgents fleeing French air strikes toward the Algerian border, and France pressed ahead with its bombing campaign against al Qaeda's Saharan desert camps.


Pro-autonomy Tuareg MNLA rebels said they had seized Mohamed Moussa Ag Mohamed, an Islamist leader who imposed harsh sharia law in the desert town of Timbuktu, and Oumeini Ould Baba Akhmed, believed to be responsible for the kidnapping of a French hostage by the al Qaeda splinter group MUJWA.


"We chased an Islamist convoy close to the frontier and arrested the two men the day before yesterday," Ibrahim Ag Assaleh, spokesman for the MNLA, told Reuters from Ouagadougou in Burkina Faso. "They have been questioned and sent to Kidal."


France has deployed 3,500 ground troops, and warplanes and armored vehicles in its three-week-old Operation Serval (Wildcat) in Mali which has broken the Islamists' 10-month grip on northern towns, where they imposed sharia law.


Paris and its international partners want to prevent the Islamists from using Mali's vast desert north as a base to launch attacks on neighboring African countries and the West.


The MNLA, which seized control of northern Mali last year only to be pushed aside by better-armed Islamist groups, regained control of its northern stronghold of Kidal last week when Islamist fighters fled French airstrikes into the nearby desert and rugged Adrar des Ifoghas mountains.


The Tuareg group says it is willing to help the French-led mission by hunting down Islamists. It has offered to hold peace talks with the government in a bid to heal wounds between Mali's restive Saharan north and the black African-dominated south.


"Until there is a peace deal, we cannot hold national elections," Ag Assaleh said, referring to interim Malian President Dioncounda Traore's plan to hold polls on July 31.


Many in the southern capital Bamako - including army leaders who blame the MNLA for executing some of their troops at the Saharan town of Aguelhoc last year - strongly reject any talks.


French special forces took the airport in Kidal on Tuesday, reaching the most northern city previously held by the Islamist alliance. Though the MNLA says it controls Kidal, a Reuters reporter in the town saw a contingent of Chadian troops - part of a U.N.-backed African mission being deployed to help retake northern Mali - backing up French special forces there.


TARGETING REBEL BASES, DEPOTS


French Foreign Minister Laurent Fabius said warplanes were continuing bombing raids on Islamists in Mali's far north to destroy their supply lines and flush them out of remote areas.


"The objective is to destroy their support bases, their depots because they have taken refuge in the north and north-east of the country and can only stay there in the long-term if they have the means to sustain themselves," Fabius said.


"The army is working to stop that," he told French radio.


Jets attacked rebel camps on Sunday targeting logistics bases and training camps used by the al Qaeda-linked rebels near Tessalit, close to the Algerian border.


French President Francois Hollande made a one-day trip to Mali on Saturday, promising to keep troops in the country until the job of restoring government control in the Sahel state was finished. He was welcomed as a savior by cheering Malians.


The rebels' retreat to hideouts in the remote Adrar des Ifoghas mountains - where Paris believes they are holding seven French hostages - heralds a potentially more complicated new phase of France's intervention in its former colony.


"We are still in the same war, but we're entering a new battle," said Vincent Desportes, a French former general and now associate professor at Science-Po university in Paris.


"We will look to gradually wear out and destroy the terrorists that are sheltering in the Ifoghas. It's now a war of intelligence (services), strikes and probably action by special forces in the background."


Hollande said on Saturday that Paris would withdraw its troops from Mali once the landlocked West African nation had restored sovereignty over its territory and a U.N.-backed African military force could take over from the French soldiers.


Drawn mostly from Mali's West African neighbours, this force is expected to number more than 8,000. But its deployment has been badly hampered by shortages of kit and airlift capacity and questions about who will fund the estimated $1 billion cost.


Fabius said French soldiers may soon pull back from Timbuktu. Its residents had celebrated their liberation from the Islamists, who had handed down punishments including whipping and amputation for breaking sharia law.


The rebels also smashed sacred Sufi mausoleums and destroyed or stole some 2,000 ancient manuscripts at the South African-sponsored Baba Ahmed Institute, causing international outcry.


"A withdrawal could happen very quickly," Fabius said. "We're working towards it because we have no desire to stay there for the long-term.


(Additional reporting by John Irish in Paris, Daniel Flynn in Dakar and David Lewis in Timbuktu; Writing by Daniel Flynn; Editing by Pascal Fletcher and Jon Boyle)



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"Great Rotation"- A Wall Street fairy tale?

NEW YORK (Reuters) - Wall Street's current jubilant narrative is that a rush into stocks by small investors has sparked a "great rotation" out of bonds and into equities that will power the bull market to new heights.


That sounds good, but there's a snag: The evidence for this is a few weeks of bullish fund flows that are hardly unusual for January.


Late-stage bull markets are typically marked by an influx of small investors coming late to the party - such as when your waiter starts giving you stock tips. For that to happen you need a good story. The "great rotation," with its monumental tone, is the perfect narrative to make you feel like you're missing out.


Even if something approaching a "great rotation" has begun, it is not necessarily bullish for markets. Those who think they are coming early to the party may actually be arriving late.


Investors pumped $20.7 billion into stocks in the first four weeks of the year, the strongest four-week run since April 2000, according to Lipper. But that pales in comparison with the $410 billion yanked from those funds since the start of 2008.


"I'm not sure you want to take a couple of weeks and extrapolate it into whatever trend you want," said Tobias Levkovich, chief U.S. equity strategist at Citigroup. "We have had instances where equity flows have picked up in the last two, three, four years when markets have picked up. They've generally not been signals of a continuation of that trend."


The S&P 500 rose 5 percent in January, its best month since October 2011 and its best January since 1997, driving speculation that retail investors were flooding back into the stock market.


Heading into another busy week of earnings, the equity market is knocking on the door of all-time highs due to positive sentiment in stocks, and that can't be ignored entirely. The Standard & Poor's 500 Index <.spx> ended the week about 4 percent from an all-time high touched in October 2007.


Next week will bring results from insurers Allstate and The Hartford , as well as from Walt Disney , Coca-Cola Enterprises and Visa .


But a comparison of flows in January, a seasonal strong month for the stock market, shows that this January, while strong, is not that unusual. In January 2011 investors moved $23.9 billion into stock funds and $28.6 billion in 2006, but neither foreshadowed massive inflows the rest of that year. Furthermore, in 2006 the market gained more than 13 percent while in 2011 it was flat.


Strong inflows in January can happen for a number of reasons. There were a lot of special dividends issued in December that need reinvesting, and some of the funds raised in December tax-selling also find their way back into the market.


During the height of the tech bubble in 2000, when retail investors were really embracing stocks, a staggering $42.7 billion flowed into equities in January of that year, double the amount that flowed in this January. That didn't end well, as stocks peaked in March of that year before dropping over the next two-plus years.


MOM AND POP STILL WARY


Arguing against a 'great rotation' is not necessarily a bearish argument against stocks. The stock market has done well since the crisis. Despite the huge outflows, the S&P 500 has risen more than 120 percent since March 2009 on a slowly improving economy and corporate earnings.


This earnings season, a majority of S&P 500 companies are beating earnings forecast. That's also the case for revenue, which is a departure from the previous two reporting periods where less than 50 percent of companies beat revenue expectations, according to Thomson Reuters data.


Meanwhile, those on the front lines say mom and pop investors are still wary of equities after the financial crisis.


"A lot of people I talk to are very reluctant to make an emotional commitment to the stock market and regardless of income activity in January, I think that's still the case," said David Joy, chief market strategist at Columbia Management Advisors in Boston, where he helps oversee $571 billion.


Joy, speaking from a conference in Phoenix, says most of the people asking him about the "great rotation" are fund management industry insiders who are interested in the extra business a flood of stock investors would bring.


He also pointed out that flows into bond funds were positive in the month of January, hardly an indication of a rotation.


Citi's Levkovich also argues that bond investors are unlikely to give up a 30-year rally in bonds so quickly. He said stocks only began to see consistent outflows 26 months after the tech bubble burst in March 2000. By that reading it could be another year before a serious rotation begins.


On top of that, substantial flows continue to make their way into bonds, even if it isn't low-yielding government debt. January 2013 was the second best January on record for the issuance of U.S. high-grade debt, with $111.725 billion issued during the month, according to International Finance Review.


Bill Gross, who runs the $285 billion Pimco Total Return Fund, the world's largest bond fund, commented on Twitter on Thursday that "January flows at Pimco show few signs of bond/stock rotation," adding that cash and money markets may be the source of inflows into stocks.


Indeed, the evidence suggests some of the money that went into stock funds in January came from money markets after a period in December when investors, worried about the budget uncertainty in Washington, started parking money in late 2012.


Data from iMoneyNet shows investors placed $123 billion in money market funds in the last two months of the year. In two weeks in January investors withdrew $31.45 billion of that, the most since March 2012. But later in the month money actually started flowing back.


(Additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)



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Super Bowl of firsts, lasts, bests


NEW ORLEANS (AP) — The journey to this Super Bowl wound through bounties and replacement refs, eventually bringing the big game back to the Big Easy — with a replacement quarterback, a sibling rivalry and a grand exit for one of the NFL's greatest players, clouded by the obscure healing powers of deer-antler spray.


It is a Super Bowl of comebacks, of firsts and lasts, and — if San Francisco wins — the best.


A win over the Baltimore Ravens on Sunday gives the 49ers six championships, matching Pittsburgh's titles in the Super Bowl era. Unlike the Steelers, the Niners have never lost one.


Of course, they haven't won one in 18 years, either.


"There's a tradition with the San Francisco 49ers, but I think these guys are paving their own way," said Hall of Fame receiver and three-time champion Jerry Rice. "They're playing with a lot of swagger."


Or as owner Denise DeBartolo York said, "We've come full circle and the dynasty will prevail."


New Orleans has come full circle, too. Ravaged by Hurricane Katrina in August 2005, losing a quarter of its population, abandoned by the Saints for an entire season, the city couldn't imagine hosting another Super Bowl. But as New Orleans recovered and rebuilt, it envisioned staging what Patriots owner Robert Kraft calls "the pre-eminent sporting event."


The NFL agreed it was time to return. And even if Commissioner Roger Goodell is despised here after slapping the Saints with suspensions and fines in the bounty scandal, the vibes from the French Quarter and Warehouse District this week have been supportive, even uplifting.


"It's also terrific for us to be back here in New Orleans," Goodell said, joking about voodoo dolls in his likeness. "Our 10th Super Bowl here, the first since Katrina, and it's clear this city is back bigger and better than ever."


There's the tale of the head coaching brothers, Baltimore's John and San Francisco's Jim, the first siblings to face off in a Super Bowl. And Ray Lewis, the pre-eminent linebacker of his generation on his self-proclaimed last ride. (His farewell party was somewhat sidetracked for two days this week when Lewis waved off a report that he tried to get unusual products like deer-antler spray to speed his recovery from an arm injury that sidelined him for 10 games.)


"There are so many storylines to this game that make it bigger than just the Super Bowl," 49ers CEO Jed York said.


Such as the Harbaughs plot about sons of a lifetime coach who took different paths to the top of the NFL.


John, older by 15 months, has made his career standing on the sideline with a headset. He's the only head coach to win playoff games in his first five seasons; his quarterback, Joe Flacco, has the same distinction as he heads into his first Super Bowl. Jim Harbaugh was a first-round draft pick and quarterbacked four teams in 14 pro seasons before going into coaching. He was an immediate success at San Diego — the Toreros in the college Pioneer League, not the Chargers in the NFL — and Stanford before the 49ers won a bidding war for him in 2011.


This week's family reunion has been light-hearted, though that figures to change Sunday.


"It's probably a little tougher emotionally," John Harbaugh said of facing his brother. "It's a little tougher just from the sense of I don't think you think about it when you're coaching against somebody else; it's more about the scheme and the strategy. There's a little bit of a relationship element that's more strong than maybe coaching against someone else.


"I'll have a better answer for you after the game. I've never been through this before. This is all new."


And oh-so-new for the QBs, Flacco and Colin Kaepernick.


Flacco is no fluke, holding the career record for road playoff wins with six. But until outplaying Peyton Manning and Tom Brady this year, he hadn't gotten the Ravens to the Super Bowl. He has eight touchdown passes and no interceptions in the postseason, padding a resume that soon will make him one very highly paid quarterback: Flacco's contract expires after this game. Even with a franchise tag applied by Baltimore (13-6), he'll make about $14.6 million next season.


"I think when you talk about winning as quarterbacks in the playoffs," Flacco said, "I would think that all of them have Super Bowl victories. So that's really the only one that matters, and that's what we're trying to get."


Naturally, so are the 49ers (13-4-1), whose midseason adoption of the pistol offense to best use Kaepernick's dynamic versatility added a dimension no one has been able to stop. The Niners might never have taken such a huge step had incumbent Alex Smith, in the midst of his best season, not sustained a concussion on Nov. 11. Kaepernick took over and the offense took off.


Once Smith was healthy, he no longer was the starter. Jim Harbaugh gambled by sticking with the raw second-year quarterback who brought more game-breaking skills to the position.


Difficult decisions like that are sometimes foolhardy, sometimes inspired.


This one worked superbly, and Kaepernick stands one victory from joining Joe Montana and Steve Young as a 49er Super Bowl champion.


"It was tough watching this team do well and not being able to contribute," said Kaepernick, more recognized before his promotion for his collection of tattoos than for his strong arm and sprinter's speed. "For me, what kept me going was the fact that I might get an opportunity to get out there. When I did, I needed to take advantage of it."


The 49ers hope to take advantage in the same Superdome where they were at their most dominant, beating Denver 55-10 in 1990 in the biggest rout the Super Bowl has seen.


The Steelers are recognized as the true powerhouse of the Super Bowl era, which is nearly a half-century old. Four of those titles came in the 1970s, with Mean Joe Greene and the Steel Curtain shutting down opponents while Terry Bradshaw, Franco Harris and Lynn Swann were scoring on them.


But the last two were in 2005 and 2008, and they've been perennial playoff qualifiers, too. That kept them in the football forefront.


For the 49ers the golden years of Montana, Rice, Young and Ronnie Lott ended with the 1994 season. They didn't even make the playoffs from 2003-10, and this is their first trip back to the Super Bowl.


Rice sees Super Bowl win No. 6 coming Sunday.


"I just think we had players who played well in the big game," he said. "My best football that I played, I think, happened in the playoffs and in the Super Bowl. I think it's the same with these players."


None of whom, except for center Jonathan Goodwin and linebacker Clark Haggans, has won a title. That's still one more ring than the Ravens have: Lewis is the sole NFL champion in Baltimore.


Lewis hungers for these teammates to taste their first title — and to do it in his last game.


"I've touched the Lombardi (Trophy), and I know how it feels," the perennial All-Pro said. "For these guys who've made this journey with me to feel that, it would be the perfect ending for my career."


Like Lewis, 49ers receiver Randy Moss also could be suiting up for the final time, although he hopes to play another year.


Grabbed off the scrap heap after his career spiraled into oblivion and no team would touch him in 2011, Moss didn't do much on the field (28 catches, 434 yards) this season. His loudest headlines came this week when he proclaimed himself the greatest receiver ever; maybe he's never seen Rice's numbers.


Teammates say Moss was very influential as a mentor and teacher.


"Randy's like my older brother," said Michael Crabtree, who emerged as a top receiver in his fourth pro season. "An older brother you would have that's been through a lot that you just can learn from just talking to him, watching him.


"He's a legend and I hope he'll be here next year."


Lewis won't be. He'll don the face paint, put on his No. 52 for the final time, and see if he can replicate the championship of a dozen years ago.


"You can never top the first one, because that's an unknown feeling," Lewis said before adding with a chuckle, eyes widening, "but a second one — that might be the only way you really can top it."


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Exxon’s 2012 profit of $44.9B just misses record






Exxon Mobil Corp. nearly set a record for annual profit. The oil giant reported Friday that 2012 net income was $ 44.88 billion, just $ 340 million — less than 1 percent — short of the company’s record set in 2008, when crude oil prices hit an all-time high. Exxon‘s profit for the last 10 years totals $ 343.4 billion.


— $ 44.88 billion in 2012






— $ 41.06 billion in 2011


— $ 30.46 billion in 2010


— $ 19.28 billion in 2009


— $ 45.22 billion in 2008


— $ 40.61 billion in 2007


— $ 39.50 billion in 2006


— $ 36.13 billion in 2005


— $ 25.33 billion in 2004


— $ 20.96 billion in 2003


Source: Exxon Mobil annual reports filed with the U.S. Securities and Exchange Commission


Energy News Headlines – Yahoo! News





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Hillary: Secretary of empowerment




Girls hug U.S. Secretary of State Hillary Clinton during a 2010 tour of a shelter run for sex trafficking victims in Cambodia.




STORY HIGHLIGHTS


  • Donna Brazile: Clinton stepping down as Secretary of State. Maybe she'll run for president

  • She says as secretary she expanded foreign policy to include effect on regular people

  • She says she was first secretary of state to focus on empowering women and girls

  • Brazile: Clinton has fought for education and inclusion in politics for women and girls




Editor's note: Donna Brazile, a CNN contributor and a Democratic strategist, is vice chairwoman for voter registration and participation at the Democratic National Committee. She is a nationally syndicated columnist, an adjunct professor at Georgetown University and author of "Cooking with Grease." She was manager for the Gore-Lieberman presidential campaign in 2000.


(CNN) -- As Secretary of State Hillary Rodham Clinton steps down from her job Friday, many are assuming she will run for president. And she may. In fact, five of the first eight presidents first served their predecessors as secretary of state.


It hasn't happened in more than a century, though that may change should Clinton decide to run. After all, she has been a game changer her entire life.


But before we look ahead, I think we should appreciate what she's done as secretary of state; it's a high profile, high pressure job. You have to deal with the routine as if it is critical and with crisis as if it's routine. You have to manage egos, protocols, customs and Congress. You have to be rhetorical and blunt, diplomatic and direct.



CNN Contributor Donna Brazile

CNN Contributor Donna Brazile



As secretary of state you are dealing with heads of state and with we the people. And the president of the United States has to trust you -- implicitly.


On the road with Hillary Clinton


Of all Clinton's accomplishments -- and I will mention just a few -- this may be the most underappreciated. During the election, pundits were puzzled and amazed not only at how much energy former President Bill Clinton poured into Obama's campaign, but even more at how genuine and close the friendship was.


Obama was given a lot of well-deserved credit for reaching out to the Clintons by appointing then-Sen. Hillary Clinton as his secretary of state in the first place. But trust is a two-way street and has to be earned. We should not underestimate or forget how much Clinton did and how hard she worked. She deserved that trust, as she deserved to be in the war room when Osama bin Laden was killed.


By the way, is there any other leader in the last 50 years whom we routinely refer to by a first name, and do so more out of respect than familiarity? The last person I can think of was Ike -- the elder family member who we revere with affection. Hillary is Hillary.


It's not surprising that we feel we know her. She has been part of our public life for more than 20 years. She's been a model of dignity, diplomacy, empathy and toughness. She also has done something no other secretary of state has done -- including the two women who preceded her in the Cabinet post.


Rothkopf: President Hillary Clinton? If she wants it



Hillary has transformed our understanding -- no, our definition -- of foreign affairs. Diplomacy is no longer just the skill of managing relations with other countries. The big issues -- war and peace, terror, economic stability, etc. -- remain, and she has handled them with firmness and authority, with poise and confidence, and with good will, when appropriate.


But it is not the praise of diplomats or dictators that will be her legacy. She dealt with plenipotentiaries, but her focus was on people. Foreign affairs isn't just about treaties, she taught us, it's about the suffering and aspirations of those affected by the treaties, made or unmade.








Most of all, diplomacy should refocus attention on the powerless.


Of course, Hillary wasn't the first secretary of state to advocate for human rights or use the post to raise awareness of abuses or negotiate humanitarian relief or pressure oppressors. But she was the first to focus on empowerment, particularly of women and girls.


She created the first Office of Global Women's Issues. That office fought to highlight the plight of women around the world. Rape of women has been a weapon of war for centuries. Though civilized countries condemn it, the fight against it has in a sense only really begun.


Ghitis: Hillary Clinton's global legacy on gay rights


The office has worked to hold governments accountable for the systematic oppression of girls and women and fought for their education in emerging countries. As Hillary said when the office was established: "When the Security Council passed Resolution 1325, we tried to make a very clear statement, that women are still largely shut out of the negotiations that seek to end conflicts, even though women and children are the primary victims of 21st century conflict."


Hillary also included the United States in the Trafficking in Person report. Human Trafficking, a form of modern, mainly sexual, slavery, victimizes mostly women and girls. The annual report reviews the state of global efforts to eliminate the practice. "We believe it is important to keep the spotlight on ourselves," she said. "Human trafficking is not someone else's problem. Involuntary servitude is not something we can ignore or hope doesn't exist in our own communities."


She also created the office of Global Partnerships. And there is much more.


She has held her own in palaces and held the hands of hungry children in mud-hut villages, pursuing an agenda that empowers women, children, the poor and helpless.


We shouldn't have been surprised. Her book "It Takes a Village" focused on the impact that those outside the family have, for better or worse, on a child's well-being.


As secretary of state, she did all she could to make sure our impact as a nation would be for the better.


Follow us on Twitter @CNNOpinion


Join us on Facebook/CNNOpinion


The opinions expressed in this commentary are solely those of Donna Brazile.






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1 person dead, 8 to 10 people displaced in apartment fire













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Chicago Tribune illustration
(Nancy Stone / March 21, 2012)



























































A man died and between eight to 10 people were displaced after a fire broke out in a six-unit apartment in Huntley this morning, fire officials said.


Huntley firefighters were called to the two-alarm fire Woodcreek Apartments, 11702 Woodcreek Drive at about 6:15 a.m., said Battalion Chief Tim Flannigan of the Huntley Fire Protection District.


The fire happened at the six unit, wood-frame apartment building, said Flannigan.





He said the fire began in one unit of the apartment where a man was found deceased, he said.


The fire spread to two other units of the building and between eight to 10 people were displaced.


He said the McHenry County coroner was called to the scene, he said.


While the cause of the fire is under investigation, the preliminary indication is that the fire did not appear suspicious and may have been accidentally caused, he said.


A Huntley firefighter sustained a minor injury, he said.


It took firefighters about 10 minutes to put out the main fire in the unit and another hour and 20 minutes before officials had the scene under control.


chicagobreaking@tribune.com


Twitter: @ChicagoBreaking










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Syrian opposition chief under fire for talks with Assad allies


MUNICH (Reuters) - Syria's opposition leader flew back to his Cairo headquarters from Germany on Sunday to explain to skeptical allies his decision to talk with President Bashar al-Assad's main backers Russia and Iran, in hope of a breakthrough in the crisis.


The Russian and Iranian foreign ministers, and U.S. Vice-President Joe Biden, portrayed Syrian National Coalition leader Moaz Alkhatib's new willingness to talk with the Assad regime as a major step towards resolving the two-year-old war.


"If we want to stop the bloodshed we cannot continue putting the blame on one side or the other," Iran's Ali Akbar Salehi said on Sunday, welcoming Alkhatib's overtures and adding that he was ready to keep talking to the opposition. Iran is Assad's main military backer together with Russia.


"This is a very important step. Especially because the coalition was created on the basis of categorical rejection of any talks with the regime," Lavrov was quoted as saying on Sunday by Russia's Itar Tass news agency.


Russia has blocked three U.N. Security Council resolutions aimed at pushing Assad out or pressuring him to end a civil war in which more than 60,000 people have died. But Moscow has also tried to distance itself from Assad by saying it is not trying to prop him up and will not offer him asylum.


Syrian state media said Assad received a senior Iranian official and told him Syria could withstand "threats ... and aggression" like an air attack on a military base last week, which Damascus has blamed on Israel.


"USELESS" TALKING TO IRAN


Politicians from the United States, Europe and the Middle East at the Munich Security Conference praised Alkhatib's "courage". But the moderate Islamist preacher was likely to face sharp criticism from the exiled leadership back in Cairo.


Alkhatib has put his leadership on the line by saying he would be willing to talk to representatives of the Assad regime on condition they release 150,000 prisoners and issue passports to the tens of thousands of displaced people who have fled to neighboring countries but do not have documents.


"He has a created a political firestorm. Meeting the Iranian foreign minister was totally unnecessary because it is useless. Iran backs Assad to the hilt and he might as well have met with the Syrian foreign minister," said one of Alkhatib's colleagues on the 12-member politburo of the Syrian National Coalition.


Alkhatib, whose family are custodians of the Umayyad Mosque in the historic centre of Damascus, is seen as a bulwark against Salafist forces who are a main player in the armed opposition.


He was chosen as the head of the Coalition in Qatar last year, with crucial backing from the Muslim Brotherhood.


The Syrian opposition member, speaking on condition of anonymity, pointed to comments by Salehi and Lavrov on Sunday, a day after their meetings with Alkhatib, as evidence that they had not changed their positions and still backed Assad.


Salehi told the Munich conference where the round of talks took place that the solution was to hold elections in Syria - making no mention of Assad having to leave the country.


FIZZLE OUT?


Firm opposition backers like Qatar's Prime Minister Hamad bin Jassim al-Thani and U.S. Republican Senator John McCain voiced frustration in Munich at the international community's reluctance to intervene in the Syrian conflict.


"We consider the U.N. Security Council directly responsible for the continuing tragedy of the Syrian people, the thousands of lives that were lost, the blood that was spilled and is still flowing at the hands of the regime's forces," said al-Thani.


Moscow played down the significance of the discussions in Munich, with one diplomatic source calling the talks between Lavrov and Alkhatib "simply routine meetings".


"We have presented our views when Minister Lavrov meet Alkhatib, we have noted his comments that there is still a chance for dialogue with Syrian government. That is something we have called for," said the Russian source.


"To what extent is that realistic, that's a different matter and there are doubts about that," said the source.


One source in Khatib's delegation said the offer of dialogue would find an echo among Syrians opposed to Assad who have not taken up arms "and want to get rid of him with the minimum bloodshed".


Fawaz Tello, a veteran Syrian opposition campaigner based in Berlin, said Alkhatib had made "a calculated political manoeuvre to embarrass Assad".


"But it is an incomplete initiative and it will probably fizzle out," Tello told Reuters. "The Assad regime cannot implement any item in the series of initiatives we have seen lately because it would simply fall."


Russia and Iran were already beginning to use Alkhatib's initiative negatively, he said, while "the regime and its allies will only treat Alkhatib's meetings as an additional opportunity to smash the rebellion or weaken it".


Asked about the risk of his strategy being seen as a sign of weakness in the opposition or frustration at the Free Syrian Army's gains, Alkhatib told Reuters in Munich: "The fighters have high morale and they are making daily advances."


(Additional reporting by Alexandra Hudson in Munich and Gabriela Baczynska in Moscow; Writing by Stephen Brown; Editing by Andrew Roche)



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"Great Rotation"- A Wall Street fairy tale?

NEW YORK (Reuters) - Wall Street's current jubilant narrative is that a rush into stocks by small investors has sparked a "great rotation" out of bonds and into equities that will power the bull market to new heights.


That sounds good, but there's a snag: The evidence for this is a few weeks of bullish fund flows that are hardly unusual for January.


Late-stage bull markets are typically marked by an influx of small investors coming late to the party - such as when your waiter starts giving you stock tips. For that to happen you need a good story. The "great rotation," with its monumental tone, is the perfect narrative to make you feel like you're missing out.


Even if something approaching a "great rotation" has begun, it is not necessarily bullish for markets. Those who think they are coming early to the party may actually be arriving late.


Investors pumped $20.7 billion into stocks in the first four weeks of the year, the strongest four-week run since April 2000, according to Lipper. But that pales in comparison with the $410 billion yanked from those funds since the start of 2008.


"I'm not sure you want to take a couple of weeks and extrapolate it into whatever trend you want," said Tobias Levkovich, chief U.S. equity strategist at Citigroup. "We have had instances where equity flows have picked up in the last two, three, four years when markets have picked up. They've generally not been signals of a continuation of that trend."


The S&P 500 rose 5 percent in January, its best month since October 2011 and its best January since 1997, driving speculation that retail investors were flooding back into the stock market.


Heading into another busy week of earnings, the equity market is knocking on the door of all-time highs due to positive sentiment in stocks, and that can't be ignored entirely. The Standard & Poor's 500 Index <.spx> ended the week about 4 percent from an all-time high touched in October 2007.


Next week will bring results from insurers Allstate and The Hartford , as well as from Walt Disney , Coca-Cola Enterprises and Visa .


But a comparison of flows in January, a seasonal strong month for the stock market, shows that this January, while strong, is not that unusual. In January 2011 investors moved $23.9 billion into stock funds and $28.6 billion in 2006, but neither foreshadowed massive inflows the rest of that year. Furthermore, in 2006 the market gained more than 13 percent while in 2011 it was flat.


Strong inflows in January can happen for a number of reasons. There were a lot of special dividends issued in December that need reinvesting, and some of the funds raised in December tax-selling also find their way back into the market.


During the height of the tech bubble in 2000, when retail investors were really embracing stocks, a staggering $42.7 billion flowed into equities in January of that year, double the amount that flowed in this January. That didn't end well, as stocks peaked in March of that year before dropping over the next two-plus years.


MOM AND POP STILL WARY


Arguing against a 'great rotation' is not necessarily a bearish argument against stocks. The stock market has done well since the crisis. Despite the huge outflows, the S&P 500 has risen more than 120 percent since March 2009 on a slowly improving economy and corporate earnings.


This earnings season, a majority of S&P 500 companies are beating earnings forecast. That's also the case for revenue, which is a departure from the previous two reporting periods where less than 50 percent of companies beat revenue expectations, according to Thomson Reuters data.


Meanwhile, those on the front lines say mom and pop investors are still wary of equities after the financial crisis.


"A lot of people I talk to are very reluctant to make an emotional commitment to the stock market and regardless of income activity in January, I think that's still the case," said David Joy, chief market strategist at Columbia Management Advisors in Boston, where he helps oversee $571 billion.


Joy, speaking from a conference in Phoenix, says most of the people asking him about the "great rotation" are fund management industry insiders who are interested in the extra business a flood of stock investors would bring.


He also pointed out that flows into bond funds were positive in the month of January, hardly an indication of a rotation.


Citi's Levkovich also argues that bond investors are unlikely to give up a 30-year rally in bonds so quickly. He said stocks only began to see consistent outflows 26 months after the tech bubble burst in March 2000. By that reading it could be another year before a serious rotation begins.


On top of that, substantial flows continue to make their way into bonds, even if it isn't low-yielding government debt. January 2013 was the second best January on record for the issuance of U.S. high-grade debt, with $111.725 billion issued during the month, according to International Finance Review.


Bill Gross, who runs the $285 billion Pimco Total Return Fund, the world's largest bond fund, commented on Twitter on Thursday that "January flows at Pimco show few signs of bond/stock rotation," adding that cash and money markets may be the source of inflows into stocks.


Indeed, the evidence suggests some of the money that went into stock funds in January came from money markets after a period in December when investors, worried about the budget uncertainty in Washington, started parking money in late 2012.


Data from iMoneyNet shows investors placed $123 billion in money market funds in the last two months of the year. In two weeks in January investors withdrew $31.45 billion of that, the most since March 2012. But later in the month money actually started flowing back.


(Additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)



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NFL's Goodell aims to share blame on player safety


NEW ORLEANS (AP) — NFL Commissioner Roger Goodell wants to share the blame.


"Safety," he said at his annual Super Bowl news conference, "is all of our responsibilities."


Not surprisingly, given that thousands of former players are suing the league about its handling of concussions, the topics of player health and improved safety dominated Goodell's 45-minute session Friday. And he often sounded like someone seeking to point out that players or others are at fault for some of the sport's problems — and need to help fix them.


"I'll stand up. I'll be accountable. It's part of my responsibility. I'll do everything," Goodell said. "But the players have to do it. The coaches have to do it. Our officials have to do it. Our medical professionals have to do it."


Injuries from hits to the head or to the knees, Goodell noted, can result from improper tackling techniques used by players and taught by coaches. The NFL Players Association needs to allow testing for human growth hormone to go forward so it can finally start next season, which Goodell hopes will happen. He said prices for Super Bowl tickets have soared in part because fans re-sell them above face value.


And asked what he most rues about the New Orleans Saints bounty investigation — a particularly sensitive issue around these parts, of course — Goodell replied: "My biggest regret is that we aren't all recognizing that this is a collective responsibility to get (bounties) out of the game, to make the game safer. Clearly the team, the NFL, the coaching staffs, executives and players, we all share that responsibility. That's what I regret, that I wasn't able to make that point clearly enough with the union."


He addressed other subjects, such as a "new generation of the Rooney Rule" after none of 15 recently open coach or general manager jobs went to a minority candidate, meaning "we didn't have the outcomes we wanted"; using next year's Super Bowl in New Jersey as a test for future cold-weather, outdoor championship games; and saying he welcomed President Barack Obama's recent comments expressing concern about football's violence because "we want to make sure that people understand what we're doing to make our game safer."


Also:


— New Orleans will not get back the second-round draft pick Goodell stripped in his bounty ruling;


— Goodell would not give a time frame for when the NFL could hold a game in Mexico;


— next season's games in London — 49ers-Jaguars and Steelers-Vikings — are sellouts.


Goodell mentioned some upcoming changes, including the plan to add independent neurologists to sidelines to help with concussion care during games — something players have asked for and the league opposed until now.


"The No. 1 issue is: Take the head out of the game," Goodell said. "I think we've seen in the last several decades that players are using their head more than they had when you go back several decades."


He said one tool the league can use to cut down on helmet-to-helmet hits is suspending players who keep doing it.


"We're going to have to continue to see discipline escalate, particularly on repeat offenders," Goodell said. "We're going to have to take them off the field. Suspension gets through to them."


The league will add "expanded physicals at the end of each season ... to review players from a physical, mental and life skills standpoint so that we can support them in a more comprehensive fashion," Goodell said.


With question after question about less-than-light matters, one reporter drew a chuckle from Goodell by asking how he's been treated this week in a city filled with supporters of the Saints who are angry about the way the club was punished for the bounty system the NFL said existed from 2009-11.


"My picture, as you point out, is in every restaurant. I had a float in the Mardi Gras parade. We got a voodoo doll," Goodell said.


But he added that he can "appreciate the passion" of the fans and, actually, "couldn't feel more welcome here."


___


Follow Howard Fendrich on Twitter at http://twitter.com/HowardFendrich


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The Untold Story: Columbia Shuttle Disaster and Mysterious ‘Day 2 Object’






A decade has passed since the ill-fated Columbia space shuttle orbiter and its seven-person crew ended their journey in catastrophe. During its Feb. 1, 2003 plunge back to Earth, the vehicle broke apart, with wreckage strewn across east Texas and western Louisiana.


Painstaking work by the Columbia Accident Investigation Board (CAIB) later identified the physical cause of the disaster as damage to Columbia‘s left wing that occurred just 81.9 seconds after launch.






A piece of insulating foam separated from the left “bipod ramp” that connected the shuttle’s fuel tank to the orbiter, gouging a hole in a reinforced carbon-carbon (RCC) panel on the leading edge of Columbia’s left wing.


Now, 10 years later, new information is coming to light on an event early in Columbia’s mission, often termed the “Flight Day 2 Object.”


When added to the wealth of information already known about how the Columbia accident occurred, this story reinforces a picture of technical slip-ups, a lack of effective communications and a failure of early detection and reaction to anomalies, all of which contributed to the disaster. [Video: Astronaut Jerry Ross Remembers Columbia]


Panel 8


About a day after launch on Jan. 16, 2003, with Columbia’s crew settling into its mission, an object roughly the size of a notebook computer drifted away from the orbiter out into space.


According to a source that asked not to be named, “due to a procedural issue” the object was not recognized during Columbia’s 16-day mission by the Air Force Space Command (AFSPC). That AFSPC procedure was later corrected.


The Flight Day 2 object, according to a source then working with the CAIB to help discern the cause of the Columbia calamity, was a fragment of the RCC panel on the orbiter’s wing. A team of experts concluded that the departing piece had been lodged within the left wing by aerodynamic forces on Columbia’s liftoff. It was set adrift after the orbiter reached space.


The CAIB made the final conclusion that the foam-shedding incident on Columbia’s takeoff affected panel 8 of the RCC heat-shielding, which was located on the orbiter’s leading edge. That foam strike punctured a hole in the RCC panel roughly 16 inches (41 centimeters) by 16 inches. Analysts estimated that a hole as small as 10 inches (25 cm) across could have caused the orbiter to be destroyed on re-entry through Earth’s atmosphere.


That left-wing damage permitted the penetration of hot, re-entry gases, which led to the loss of Columbia and its crew. Superheated air entered the leading-edge insulation and progressively melted the aluminum structure of the left wing, until increasing aerodynamic forces led to loss of control, failure of the wing and disintegration of the orbiter.


From a re-entry standpoint, Columbia broke up very late,  at a low altitude, roughly 30 to 35 miles (50 to 55 kilometers) above Earth, where heating had almost ceased. The breakup was primarily mechanical, due to localized heating that occurred earlier in the re-entry process.


Serendipitous observations


A number of experts who studied the loss of Columbia and its crew shared their theories on the cause of the Flight Day 2 incident with SPACE.com.


Early on, experts had thought that perhaps a piece of orbital debris hit the shuttle.


In post-disaster work, an Air Force Space Command Space Analysis Center team worked with the Space Surveillance Network (SSN), a worldwide system of U.S. Army, Navy and Air Force-operated ground-based radars and optical sensors.


That team and SSN operators went back after Columbia’s demise to see if there had been any serendipitous observations taken the orbiter during its mission by accident, among the wealth of photos of the sky during that period.


Indeed, that team did find some observations and noted there was another piece of debris in orbit with Columbia starting on Day 2 of its flight. Aiding in this identification was the fact that Columbia had been in a unique orbit, for not only the shuttle but virtually any other satellite, so there wasn’t much else in the orbit.


After noting the Day 2 object, researchers began an investigation to determine the object’s separation velocity and its time of release from Columbia.


Investigators hoped to see if the object departed the orbiter at high velocity, indicating a possible collision, or if it came off at low velocity, signifying something drifting away, perhaps out of Columbia’s cargo bay.


Radar information


With radar information on hand concerning the object’s size, and measurements of how quickly it decayed in Earth orbit, analysts could tell it was something with the dimensions of a notebook computer. Best estimates are that the Flight Day 2 object decayed from orbit on Jan. 20, disintegrating as it fell down through Earth’s atmosphere. The item was never given a satellite catalogue number since it decayed before its discovery.


The Air Force and SSN analysts worked closely with Air Force Research Laboratory (AFRL) specialists, all focused on understanding the object’s makeup and attempting to tag likely materials that had the right density. A final determination, according to a SPACE.com source, was that it was a piece of Columbia’s carbon-carbon leading edge.


“That determination encouraged NASA to continue their testing of firing foam at the leading edge … finally getting a result that very closely matched our analysis,” the source, who asked not to be named, said.


A post-disaster review of Columbia’s movements on Day 2 showed the detached object appeared to separate after the orbiter undertook a couple of maneuvers to change its orientation.


The Space Analysis Center team believed that aerodynamic forces on ascent had pushed the Day 2 object back into the wing and Columbia’s maneuvers subsequently shook the object loose.


Foam impact


Another view of the situation at the time is offered by a Columbia Accident Investigation Board (CAIB) member, Scott Hubbard, then director of the NASA Ames Research Center and currently professor of aeronautics and astronautics at Stanford University.


Hubbard played an instrumental role in spotlighting the cause of Columbia’s demise. To do so, he relied on computational modeling, reinforced by experimental testing with a large compressed-gas gun done by Southwest Research Institute (SwRI) scientists and engineers in San Antonio, Texas. During the tests, scientists fired a piece of foam at a target at speeds comparable to what a falling piece of debris from the shuttle would have experienced. Researchers then observed the damage.


Hubbard oversaw those tests, which showed that a chunk of falling insulating foam from the large, exterior fuel tank could indeed punch a hole in the leading edge of the orbiter’s left wing — panel 8 of the RCC thermal protection system, to be exact.


“My decision to direct as definitive a test as possible of the foam impact on Columbia was driven by the desire to provide the crew and shuttle program with a clear, physical cause so that ‘return to flight’ could be carried out without hesitation,” Hubbard told SPACE.com.


While there was a significant collection of circumstantial evidence — film of launch, “black box” data and collected debris — Hubbard said he had the strong sense that NASA was not converging on an answer to such basic parameters as the size of the falling foam.


Uncertainty of observations


“During the CAIB deliberations, the radar data and analysis by AFRL was occasionally presented to the board, but the uncertainty of the observations and myriad initial interpretations did little to convince us that the mysterious ‘second day’ object was part of the orbiter,” Hubbard said. [Columbia Shuttle Disaster Explained (Infographic)]


“I can state quite unequivocally that the AFRL examination of the radar profile had no influence on the selection of the SwRI test parameters. Computational fluid dynamics analysis, the 35mm film data and emerging debris information had already convinced my team and me to aim at Panel 8 of the RCC.”


The AFRL did not issue their final summary report until July 20, 2003, nearly two weeks after the definitive SWRI tests, Hubbard said.


“It is worth noting that the SWRI tests did produce a large section of RCC that, had it floated away from the orbiter, may have resembled the 2nd day piece,” Hubbard said. “However, this observation is definitely post hoc and was not a test prediction.”


Air Force Space Command response


According to CAIB report findings, the Day 2 object was discovered after the accident during Air Force processing of space surveillance network data, which yielded 3,180 separate radar or optical observations from Air Force and Navy sensors. It was the post-accident, detailed examination of these observations that revealed the Day 2 object.


After SPACE.com requested help in clarifying why the Day 2 object was not recognized during the mission, and what procedural error had since been fixed, an Air Force Space Command spokesperson responded with a statement.


“The Space Control Center (now Joint Space Operations Center) did change a


space situational awareness process involving space shuttle missions after the space shuttle Columbia accident,” the AFSC statement notes. “Before the Columbia accident, the Space Control Center did conjunction analysis (collision avoidance) during space shuttle missions using NASA positional data which better modeled the predicted position of Columbia for the conjunction screenings since it was more accurate than the data from AF sensors.”


Determined in hindsight


The AFSC statement explains that the NASA positional data came from their sensors, which could more accurately detect and model small orbital adjustments of the shuttle during missions than could other methods. Since NASA provided this positional data, the Space Control Center processed AF sensor data for Columbia using only basic astrodynamic algorithms and models. These, however, failed to provide high enough fidelity to definitely separate potential debris from the space shuttle orbiter.


“After the space shuttle Columbia investigation, the Space Control Center, in conjunction with NASA, decided to add additional analyst time to search for objects in close proximity to the shuttle, using both NASA positional data and Air Force sensor data,” the statement explains.


“It was determined in hindsight that while the previous process of using NASA positional data made space shuttle collision avoidance better, it degraded the possibility of cataloguing debris near the space shuttle during missions. Changing the process to use both NASA positional data and Air Force sensor data improved the ability to possibly detect debris near the space shuttle during missions,” the statement concludes.


Leonard David has been reporting on the space industry for more than five decades. He is former director of research for the National Commission on Space and has written for SPACE.com since 1999. He reported on the Columbia accident in 2003 and subsequent hearings of the Columbia Accident Investigation Board.


Copyright 2013 SPACE.com, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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