Yen, Asian shares mark time before BOJ decision

TOKYO (Reuters) - The yen and Asian shares marked time on Tuesday as investors awaited the outcome of the Bank of Japan's policy meeting, with expectations running high for bold monetary easing measures aimed at reflating the world's third-largest economy.


The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> was up 0.1 percent. The index was pulled down on Monday after briefly touching 17-1/2-month highs as Malaysian stocks suffered their biggest drop in 16 months on election risks.


European shares rose on Monday near two-year highs, with investors betting on an improving economy in Europe. Wall Street was closed for Martin Luther King Jr. Day.


Australian shares <.axjo> were up 0.5 percent to a fresh 20-month high early on Tuesday while South Korean shares <.ks11> opened almost flat.


Japan's benchmark Nikkei average <.n225> opened up 0.2 percent. The Nikkei has faced choppy trading over the past two sessions as the yen became more volatile ahead of the BOJ meeting. Tokyo shares have been rising in tandem with the yen's slide against major currencies. The Nikkei tumbled 1.5 percent on Monday after investors booked profits from the index's 2.9 percent rally on Friday. <.t/>


Early on Tuesday, the dollar inched down 0.1 percent against the yen at 89.51 yen, after touching a fresh 2-1/2-year high of 90.25 yen on Monday. The euro fell 0.3 percent to 119.11 yen, off its peak since May 2011 of 120.73 hit on Friday.


Markets have priced in the BOJ boosting its asset-buying and lending program by another 10 trillion yen and doubling its inflation target to 2 percent. The BOJ will announce its decision after it ends its two-day meeting later on Tuesday.


Sean Callow, senior currency strategist at Westpac bank in Sydney, noted a bit more uncertainty over the policy decision, given speculation about open-ended easing and removing the 0.1 percent floor on short term interest rates.


"The biggest risk for USD/JPY is a cautious 10 trillion yen increase in asset purchases and not much else new aside from the 2 percent target. The best case for USD/JPY bulls is an open-ended commitment to increase quantitative easing until the inflation target is met," Callow said in a note.


There's a perception in markets that even if investors cut their yen short positions in disappointment over the BOJ result, the yen's rebound was likely to be limited relative to its 13 percent decline against the dollar and a 20 percent drop versus the euro over the past two months, mainly due to expectations for more aggressive BOJ easing to drive Japan out of years of deflation and support the economy.


Overall market sentiment was likely to be supported by signs of a compromise to avert a U.S. fiscal crisis.


Republican leaders in the U.S. House of Representatives have scheduled a vote on Wednesday on a nearly four-month extension of U.S. borrowing capacity, aimed at avoiding a fight over the looming federal debt ceiling and shifting their negotiating leverage for spending cuts to other fiscal deadlines.


The Bundesbank said on Monday Germany's economic slump should be short-lived, adding that the euro zone's largest economy could have already bottomed out.


U.S. crude futures were down 0.2 percent to $95.35 a barrel.


Gold was steady around $1,689.81 an ounce.


(Editing by editing by Shri Navaratnam)



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Jim, John Harbaugh ready for rematch at Super Bowl


SANTA CLARA, Calif. (AP) — Jim and John Harbaugh have exchanged a handful of text messages, and plan to leave it at that. No phone conversations necessary while the season's still going. No time for pleasantries, even for the friendly siblings.


There is work to be done to prepare for the Super Bowl, prepare for each other, prepare for a history-making day already being widely hyped as "Harbowl" or "Superbaugh" depending which nickname you prefer.


"It doesn't matter who the coach is, what relationship you have with the person on the other side," 49ers coach Jim Harbaugh said so matter-of-factly Monday afternoon.


Their parents sure aren't picking sides for the Feb. 3 matchup in New Orleans.


These days, the Harbaughs' longtime coaching father, Jack, stays away from game-planning chatter or strategy sessions with his Super Bowl-bound coaching sons. Baltimore's John Harbaugh and little brother Jim have been doing this long enough now to no longer need dad's input.


Yet, they still regularly seek it. And, their father does offer one basic mantra: "Get ahead, stay ahead."


"Probably the greatest advice that I've ever been given and the only advice that I've ever found to be true in all of coaching, I think we mentioned it to both John and Jim ... the coaching advice is, 'Get ahead, stay ahead,'" Jack Harbaugh said.


"If I'm called upon, I'll repeat that same message."


His boys still call home regularly to check in with the man who turned both on to the coaching profession years ago, and the mother who has handled everything behind the scenes for decades in a highly competitive, sports-crazed family — with all the routine sports clichés to show for it.


The Harbaugh brothers will become the first siblings to square off from opposite sidelines when their teams play for the NFL championship at the Superdome.


Not that they're too keen on playing up the storyline that has no chance of going away as hard as they try.


"Well, I think it's a blessing and a curse," Jim Harbaugh said Monday. "A blessing because that is my brother's team. And, also, personally I played for the Ravens. Great respect for their organization. ... The curse part would be the talk of two brothers playing in the Super Bowl and what that takes away from the players that are in the game. Every moment that you're talking about myself or John, that's less time that the players are going to be talked about."


Both men love history, just not the kind with them making it.


"I like reading a lot of history ... I guess it's pretty neat," John Harbaugh offered Monday. "But is it really going to be written about? It's not exactly like Churchill and Roosevelt or anything. It's pretty cool, but that's as far as it goes."


Nice try, guys.


John watched the end of Jim's game from the field in Foxborough, Mass., as Baltimore warmed up for the AFC championship game. Jim called his sister's family from the team plane before takeoff after a win at Atlanta and asked how his big brother's team was doing against New England.


The improbable Super Bowl features a set of brothers known around the NFL as fierce competitors unafraid to make a bold move during the season. Unafraid to upset anyone who stands in their way.


In fact, each one made a major change midseason to get this far — John fired his offensive coordinator, while Jim boosted his offense with a quarterback switch from Alex Smith to Colin Kaepernick.


Leading up to Sunday's games, parents Jack and Jackie said they would wait to decide whether to travel to New Orleans if both teams advanced or stick to what has been working so well — watching from the comfort of their couch in Mequon, Wis.


"We enjoy it very much. We get down in our basement, turn on the television and just have a fantastic day watching outstanding football," Jack said last week. "We share our misery with no one but ourselves. Not only the misery, but the ups and downs, the ins and outs of an outstanding professional game."


And, no, the Harbaughs weren't looking ahead to a potential big trip to the Big Easy.


Jack insists his wife is quick to pull out that old sports cliche: "It's one game at a time. I think it's very appropriate," he said.


Jim figures they won't possibly miss this history-making game.


"I think they'll be there," he said with a smile.


The brothers, separated in age by 15 months, have taken different paths to football's biggest stage — years after their intense games of knee football at the family home. They tried to beat each other at cards, or whatever other game it was at the time. Sometimes, they tried to beat each other up. Sister, Joani Crean, often got in on the fun, too.


The 49-year-old Jim never reached a Super Bowl, falling a last-gasp pass short during a 15-year NFL career as a quarterback. The 50-year-old John never played in the NFL.


Still, both will tell you, "Who's got it better than us? No-body!" — one catchphrase they got from their dad.


"We can't put into words what it means to see John and Jim achieve this incredible milestone," their brother-in-law, Indiana basketball coach Tom Crean, said on Twitter. "We talked to Jim (before) his team plane left. All he wanted to know was how was John doing? How were they playing? One incredible family who puts the care, well-being and love for each other at the forefront like most families do. Again, we are very proud of them. Going to be exciting to watch it unfold."


John worked his way up from the bottom of the coaching ranks, while Jim was the star college quarterback at Michigan, a first-round draft pick and eventual Pro Bowler who made coaching his career once he retired.


John already has the one-up, while Jim's team is the early favorite. John's Ravens beat the 49ers 16-6 on Thanksgiving night 2011, in Jim's rookie season as an NFL coach — though both know that means nothing now.


"I just want everybody to know, that was a four-day deal and every story has been told," John said. "We're not that interesting. There's nothing more to learn. The tape across the middle of the room story, OK, you got it? It's OK. It was just like any other family, really. I really hope the focus is not so much on that. We get it, it's really cool and it's exciting and all that."


Said Jim, "Completely new business."


In spite of his efforts to avoid the topic, Jim did take the opportunity to express how proud he is of John.


"He's a great football coach, a real grasp of all phases — offense, defense, special teams. I think he could coordinate at least two of those phases and do it as well as anyone in the league," Jim said. "I've got half the amount of coaching experience he does. Again, it's not about us. I keep coming back to that. I'm really proud of my brother. I love him. That's the blessing part, that this is happening to him."


And, fittingly for the big brother, John feels the exact same way.


___


AP Sports Writer Dave Ginsburg in Baltimore contributed to this story.


___


Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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Time to act, Obama declares, taking oath 2nd time






WASHINGTON (AP) — Turning the page on years of war and recession, President Barack Obama summoned a divided nation Monday to act with “passion and dedication” to broaden equality and prosperity at home, nurture democracy around the world and combat global warming as he embarked on a second term before a vast and cheering crowd that spilled down the historic National Mall.


“America’s possibilities are limitless, for we possess all the qualities that this world without boundaries demands,” the 44th president declared in a second inaugural address that broke new ground by assigning gay rights a prominent place in the wider struggle for equality for all.






In a unity plea to politicians and the nation at large, he called for “collective action” to confront challenges and said, “Progress does not compel us to settle centuries-long debates about the role of government for all time — but it does require us to act in our time.”


Elected four years ago as America’s first black president, Obama spoke from specially constructed flag-bedecked stands outside the Capitol after reciting oath of office that all presidents have uttered since the nation’s founding.


The events highlighted a day replete with all the fanfare that a security-minded capital could muster — from white-gloved Marine trumpeters who heralded the arrival of dignitaries on the inaugural stands to the mid-winter orange flowers that graced the tables at a traditional lunch with lawmakers inside the Capitol.


The weather was relatively warm, in the mid-40s, and while the crowd was not as large as on Inauguration Day four years ago, it was estimated at up to 1 million.


Big enough that he turned around as he was leaving the inaugural stands to savor the view one final time.


“I’m not going to see this again,” said the man whose political career has been meteoric — from the Illinois Legislature to the U.S. Senate and the White House before marking his 48th birthday.


On a day of renewal for democracy, everyone seemed to have an opinion, and many seemed eager to share it.


“I’m just thankful that we’ve got another four years of democracy that everyone can grow in,” said Wilbur Cole, 52, a postman from suburban Memphis, Tenn., who spent part of the day visiting the civil rights museum there at the site where the Rev. Martin Luther King Jr. was assassinated in 1968.


The inauguration this year shared the day with King’s birthday holiday, and the president used a Bible that had belonged to the civil rights leader for the swearing-in, along with a second one that been Abraham Lincoln’s. The president also paused inside the Capitol Rotunda to gaze at a dark bronze statue of King.


Others watching at a distance were less upbeat than Cole. Frank Pinto, 62, and an unemployed construction contractor, took in the inaugural events on television at a bar in Hartford, Conn. He said because of the president’s policies, “My grandkids will be in debt and their kids will be in debt.”


The tone was less overtly political in the nation’s capital, where bipartisanship was on the menu in the speechmaking and at the congressional lunch.


“Congratulations and Godspeed,” House Speaker John Boehner, a Republican, said to Obama and Vice President Joe Biden as he presented them with flags that had flown atop the Capitol.


Outside, the Inaugural Parade took shape, a reflection of American musicality and diversity that featured military units, bands, floats, the Chinese American Community Center Folk Dance Troupe from Hockessin, Del., and the Isiserettes Drill & Drum Corps from Des Moines, Iowa.


The crowds were several rows deep along parts of the route, and security was intense. More than a dozen vehicles flanked the president’s limousine as it rolled down Pennsylvania Avenue, and several agents walked alongside on foot.


As recent predecessors have, the president emerged from his car and walked several blocks on foot. His wife, Michelle, was with him, and the two held hands while acknowledging the cheers from well-wishers during two separate strolls along the route.


A short time later, accompanied by their children and the vice president and his family, the first couple settled in to view the parade from a reviewing stand built in front of the White House.


A pair of nighttime inaugural balls completed the official proceedings, with a guest line running into the tens of thousands.


In his brief, 18-minute speech, Obama did not dwell on the most pressing challenges of the past four years. He barely mentioned the struggle to reduce the federal deficit, a fight that has occupied much of his and Congress’ time and promises the same in months to come.


He spoke up for the poor — “Our country cannot succeed when a shrinking few do very well and a growing many barely make it” — and for those on the next-higher rung — “We believe that America’s prosperity must rest upon the broad shoulders of a rising middle class.” The second reference echoed his calls from the presidential campaign that catapulted him to re-election


“A decade of war is now ending. An economic recovery has begun,” said the president who presided over the end to the U.S. combat role in Iraq, set a timetable for doing the same in Afghanistan and took office when the worst recession in decades was still deepening.


“We will support democracy from Asia to Africa, from the Americas to the Middle East, because our interests and our conscience compel us to act on behalf of those who long for freedom,” he said in a relatively brief reference to foreign policy.


The former community organizer made it clear he views government as an engine of progress. While that was far from surprising for a Democrat, his emphasis on the need to combat global climate change was unexpected, as was his firm new declaration of support for full gay rights.


In a jab at climate-change doubters, he said, “Some may still deny the overwhelming judgment of science, but none can avoid the devastating impact of raging fires and crippling drought and more powerful storms.” He said America must lead in the transition to sustainable energy resources.


He likened the struggle for gay rights to earlier crusades for women’s suffrage and racial equality.


“Our journey is not complete until our gay brothers and sisters are treated like anyone else under the law — for if we are truly created equal, then surely the love we commit to one another must be equal as well,” said the president, who waited until his campaign for re-election last year to announce his support for gay marriage.


His speech hinted only barely at issues likely to spark opposition from Republicans who hold power in the House.


He defended Medicare, Medicaid and Social Security as programs that “do not make us a nation of takers; they free is to take the risks that made this country great.”


He referred briefly to making “the hard choices to reduce the cost of health care and the size of our deficit,” a rhetorical bow to a looming debate in which Republicans are seeking spending cuts in health care programs to slow the rise in a $ 16.4 trillion national debt.


He also cited a need for legislation to ease access to voting, an issue of particular concern to minority groups, and to immigration reform and gun-control legislation that he is expected to go into at length in his State of the Union speech on Feb. 12.


But his speech was less a list of legislative proposals than a plea for tackling challenges.


“We must act, knowing that our work will be imperfect,” he said, and today’s “victories will only be partial.”


There was some official business conducted during the day.


Moments after being sworn in, the president signed nomination papers for four new appointees to his Cabinet, Sen. John Kerry for secretary of state, White House chief of staff Jacob Lew to be treasury secretary, former Nebraska Sen. Chuck Hagel for defense secretary and White House adviser John Brennan to head the CIA.


___


Associated Press writers Larry Margasak, Darlene Superville, Donna Cassata, Alan Fram, Andrew Taylor, Stephen Ohlemacher, Jim Kuhnhenn, Julie Pace, Tom Ritchie and Tracy Brown, in Washington; Adrian Santz in Memphis, Tenn., and Stephen Singer in Hartford, Conn., contributed to this story.


Weather News Headlines – Yahoo! News





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How Obama made opportunity real






STORY HIGHLIGHTS


  • LZ Granderson: Specifics of Obama's first term may not be remembered

  • He says his ability to win presidency twice is unforgettable

  • Granderson: Obama, the first black president, makes opportunity real for many

  • He says it makes presidency a possibility for people of all backgrounds




Editor's note: LZ Granderson, who writes a weekly column for CNN.com, was named journalist of the year by the National Lesbian and Gay Journalists Association and is a 2011 Online Journalism Award finalist for commentary. He is a senior writer and columnist for ESPN the Magazine and ESPN.com. Follow him on Twitter: @locs_n_laughs.


(CNN) -- In his first term, President Barack Obama signed 654 bills into law, the Dow Jones Industrial Average increased by about 70% and the national debt by $5.8 trillion.


And in 10 years -- maybe less -- few outside of the Beltway will remember any of that. That's not to suggest those details are not important. But even if all of his actions are forgotten, Obama's legacy as the first black president will endure.


And even though this is his second term and fewer people are expected to travel to Washington this time to witness the inauguration, know that this moment is not any less important.



LZ Granderson

LZ Granderson



Obama's address: Full text


For had Obama not been re-elected, his barrier-breaking election in 2008 could have easily been characterized as a charismatic politician capturing lightning in a bottle. But by becoming the first president since Dwight Eisenhower to win at least 51% of the vote twice, Obama proved his administration was successful.


And not by chance, but by change.


A change, to paraphrase Martin Luther King Jr., that was not inevitable but a result of our collective and continuous struggle to be that shining city on a hill of which President Ronald Reagan spoke so often.



For much of this country's history, being a white male was a legal prerequisite to being president. Then it was accepted as a cultural norm. Because of that, we could not be the country we set out to be.


But today, somewhere in the Midwest, there is a little Asian-American girl with the crazy idea she could be president one day, and because of Obama, she knows that idea is not very crazy at all.


That's power -- the kind of power that can fade urgent numbers and debates of the day into the background of history.


Gergen: Obama 2.0 version is smarter, tougher


Few remember the number of steps Neil Armstrong took when he landed on the moon, but they remember he was the first human being who stepped on the moon. Few can tell you how many hits Jackie Robinson had in his first Major League Baseball game, but they know he broke baseball's color barrier. Paying homage to a person being first at something significant does not diminish his or her other accomplishments. It adds texture to the arc of their story.








I understand the desire not to talk about race as a way of looking progressive.


But progress isn't pretending to be color blind, it's not being blinded by the person's color.


Or gender.


Or religion.


Or sexual orientation.


Somewhere in the South, there is an openly gay high schooler who loves student government and wants to be president someday. And because of Obama, he knows if he does run, he won't have to hide.


That does not represent a shift in demographics, but a shift in thought inspired by a new reality. A reality in which the president who follows Obama could be a white woman from Arkansas by way of Illinois; a Cuban-American from Florida; or a tough white guy from Jersey. Or someone from an entirely different background. We don't know. Four years is a long time away, and no one knows how any of this will play out -- which I think is a good thing.


'Obama: We are made for this moment'


For a long time, we've conceived of America as the land of opportunity. Eight years ago, when it came to the presidency, that notion was rhetoric. Four years ago, it became a once in a lifetime moment. Today, it is simply a fact of life.


Ten years from now, we may not remember what the unemployment rate was when Obama was sworn in a second time, but we'll never forget how he forever changed the limits of possibility for generations to come.


Somewhere out West, there is an 80-year-old black woman who never thought she'd see the day when a black man would be elected president. Somehow I doubt Obama's second inauguration is less important to her.


Follow us on Twitter @CNNOpinion.


Join us on Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of LZ Granderson.






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Obama lays out 2nd-term agenda

President Barack Obama exited his limousine for the traditional presidential walk in the inaugural parade from Capitol Hill to the White House. (Jan. 21)









A confident President Barack Obama kicked off his second term on Monday with an impassioned call for a more inclusive America that rejects partisan rancor and embraces immigration reform, gay rights and the fight against climate change.

Obama's ceremonial swearing-in at the U.S. Capitol was filled with traditional pomp and pageantry, but it was a scaled-back inauguration compared to the historic start of his presidency in 2009 when he swept into office on a mantle of hope and change as America's first black president.






Despite expectations tempered by lingering economic weakness and a politically divided Washington, Obama delivered a preview of the priorities he intends to pursue - essentially a reaffirmation of core liberal Democratic causes - declaring Americans “are made for this moment” and must “seize it together.”

His hair visibly gray after four years in office, Obama called for an end to the partisanship that marked much of his first term in the White House in bitter fights over the economy with Republicans.

“We cannot mistake absolutism for principle, or substitute spectacle for politics, or treat name-calling as reasoned debate,” Obama said from atop the Capitol steps overlooking the National Mall.

Looking out on a sea of flags, Obama addressed a crowd of hundreds of thousands of people, considerably smaller than the record 1.8 million who assembled on the mall four years ago.

Speaking in more specific terms than is customary in an inaugural address, he promised “hard choices” to reduce the federal deficit without shredding the social safety net and called for a revamping of the tax code and a remaking of government.

The Democrat arrived at his second inauguration on solid footing, with his poll numbers up, Republicans on the defensive and his first-term record boasting accomplishments such as a U.S. healthcare overhaul, financial regulatory reforms, the end of the war in Iraq and the killing of Osama bin Laden.

But fights are looming over budgets, gun control and immigration. Obama, however, has sounded more emboldened because he never again needs to run for election.

SECOND TIME TAKING OATH

When Obama raised his right hand and was sworn in by Chief Justice John Roberts, it was his second time taking the oath in 24 hours - but this time with tens of millions of people watching on television. As he spoke, the president beamed as chants of “Obama, Obama!” rang out from the crowd.

Obama had a formal swearing-in on Sunday at the White House because of a constitutional requirement that the president take the oath on Jan. 20. Rather than stage the full inauguration on a Sunday, the main public events were put off until Monday.

It was another political milestone for Obama, the Hawaiian-born son of a black father from Kenya and a white mother from Kansas.

During a triumphant parade down Pennsylvania Avenue to the White House, the president and first lady Michelle Obama thrilled wildly cheering onlookers by twice getting out of their armored limousine and walking part of the way on foot, as they had done four years ago. Secret Service agents kept close watch.

In a speech of under 20 minutes, Obama, 51, sought to reassure Americans at the mid-point of his presidency and encourage them to help him take care of unfinished business. “Preserving our individual freedoms ultimately requires collective action,” he said.

The crowds on the National Mall were enthusiastic but the euphoria of 2009 was gone.

“Four years ago it was the first black president,” said local resident Greg Pearson, 42. “It doesn't have the same energy. It's more subdued. It's not quite the party it was four years ago. Our expectations are pretty low (this time): let's not default on the national debt, keep the government running.”

Touching on volatile issues, Obama ticked off a series of liberal policies he plans to push in this second term.

Most surprising was a relatively long reference to the need to address climate change, which he was unable to do in his first four years.

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Algeria vows to fight Qaeda after 38 workers killed


ALGIERS (Reuters) - Algeria's prime minister accused a Canadian of coordinating last week's raid on a desert gas plant and, praising the storming of the complex where 38 mostly foreign hostages were killed, he pledged to resist the rise of Islamists in the Sahara.


Algeria will never succumb to terrorism or allow al Qaeda to establish "Sahelistan", an Afghan-style power base in arid northwest Africa, Abdelmalek Sellal told a news conference in Algiers where he also said at least 37 foreign hostages died.


"There is clear political will," the prime minister said.


Claimed by an Algerian al Qaeda leader as a riposte to France's attack on his allies in neighboring Mali the previous week, the four-day siege drew global attention to Islamists in the Sahara and Sahel regions and brought promises of support to African governments from Western powers whose toppling of Libya's Muammar Gaddafi helped flood the region with weapons.


The attack on a valuable part of its vital energy industry raised questions about the security capacity of an establishment that took power from French colonists 50 years ago, held off a bloody Islamist insurgency in the 1990s and has avoided the democratic upheavals the Arab Spring brought to North Africa.


Sellal said a Canadian citizen whom he named only as Chedad, a surname found among Arabs in the region, was among 29 gunmen killed and added that he had "coordinated" the attack. Another three militants were taken alive and were in custody.


Among hostages confirmed dead by their own governments were three Americans, seven Japanese, six Filipinos and three Britons; others from Britain, Norway and elsewhere were listed as unaccounted for. Sellal said seven of the 37 foreign dead were unidentified, while a further five foreigners were missing.


Nearly 700 Algerians and 100 other foreigners survived.


An Algerian security source said investigators pursuing the possibility that the attackers had inside help to map the complex and gain entry were questioning at least two employees.


Prime Minister David Cameron told parliament in London that Britain would increase its help to Algeria's intelligence and security forces and might do more for France in Mali, though he ruled out sending many of its stretched armed forces to Africa.


Noting a shift in the source of threats to British interests from Afghanistan to Africa, he also noted Sellal's rundown of a multinational group of gunmen from across north and west Africa and said the region was becoming "a magnet for jihadists".


Alongside a "strong security response", however, he called for efforts to address long-standing grievances, such as poverty and political exclusion, which foster support for violence. Some militants in Algeria want autonomy for the south and complain of domination by an unchanging establishment in Algiers.


DEATH AND SURVIVAL


As Algerian forces combed the Tigantourine plant near the town of In Amenas for explosives and the missing, survivors and the bereaved told tales of terror, narrow escapes and of death.


"The terrorists lined up four hostages and assassinated them ... shot them in the head," a brother of Kenneth Whiteside told Sky News, in an account of the Briton's death given to the family by an Algerian colleague who witnessed it. "Kenny just smiled the whole way through. He'd accepted his fate."


Filipino survivor Joseph Balmaceda said gunmen used him for cover: "Whenever government troops tried to use a helicopter to shoot at the enemy, we were used as human shields."


Another Briton, Garry Barlow, called his wife from within the site before he was killed and said: "I'm sat here at my desk with Semtex strapped to my chest."


Several hostages died on Thursday when Algerian helicopters blasted jeeps in which the militants were trying to move them.


An Algerian security source had earlier told Reuters that documents found on the bodies of two militants had identified them as Canadians: "A Canadian was among the militants. He was coordinating the attack," Sellal said.


In Ottawa, Canada's foreign affairs department said it was seeking information. Security experts noted that some Canadian citizens had been involved with international militants before.


Officials have also named other militants in recent days as having leadership roles among the attackers. Veteran Islamist Mokhtar Belmokhtar claimed responsibility on behalf of al Qaeda.


In a video distributed on the Internet, the one-eyed veteran of Afghan wars of the 1980s, of Algeria's civil war and of the lucrative trans-Sahara cigarette smuggling trade, said: "We in al Qaeda announce this blessed operation."


Dressed in combat fatigues, Belmokhtar demanded an end to French attacks on Islamist fighters in Mali.


The jihadists had planned the attack two months ago in neighboring Mali, Sellal added. They had traveled from there through Niger and Libya, hence evading Algeria's strong security services, until close to In Amenas. Their aim, he said, had been to take foreign hostages to Mali, and they made a first attempt to take captives from a bus near the site early on Wednesday.


Normally producing 10 percent of Algeria's natural gas, the facility was shut down during the incident. The government said it aimed to reopen it this week, although officials at Britain's BP and Norway's Statoil, which operate the plant with Algeria's state energy firm, said the plans were not clear.


MALI CONFLICT


An Algerian newspaper said the jihadists had arrived in cars painted in the colors of Algerian state energy firm Sonatrach but registered in Libya, a country awash with weaponry since Western powers backed a revolt to oust Gaddafi in 2011.


Using his oil wealth, the Libyan dictator exercised a degree of influence in the region and the consequences of his death are still unfolding.


In a sign of the complexities wrought by the Arab Spring revolts, Egypt, a former military dictatorship now led by one of the generals' Islamist foes, criticized France's intervention in Mali on Monday. President Mohamed Mursi called instead for more spending to address rebels' grievances and warned that the military moves would "inflame the conflict in this region".


The bloodshed also increased the strains in Algeria's long fraught relations with Western powers, where some complained about being left in the dark while the decision to storm the compound was being taken.


But this week, Britain and France both defended the military action by Algeria, the strongest military power in the Sahara and an ally the West needs in combating the militants.


Chafik Mesbah, a former Algerian presidential security adviser, said: "The West did not criticize Algeria because it knows an assault was inevitable in the circumstances ... The victims were a minimum price to pay to solve the crisis."


(Writing by Alastair Macdonald; Editing by Mark Heinrich)



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Asian shares edge down, yen eases as BoJ meeting eyed

TOKYO (Reuters) - Asian shares edged lower on Monday, taking a breather after hitting multimonth highs, while the yen touched a new low ahead of the outcome of the Bank of Japan policy meeting this week amid expectations for bold monetary easing measures.


The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> was down 0.1 percent after closing at a 17-1/2-month high on Friday.


Australian shares <.axjo> inched up 0.1 percent while South Korean shares <.ks11> slipped 0.6 percent after opening nearly flat.


The focus in Japan was on the BoJ's policy meeting, with Tokyo's benchmark Nikkei average <.n225> sliding 1.1 percent after opening up 0.3 percent. The Nikkei surged 2.9 percent for its biggest daily gain in 22 months on Friday after the yen resumed its weakening track, posting a 10th straight week of gains, its longest since 1987. <.t/>


Early on Monday, the dollar touched a fresh 2-1/2-year high of 90.25 yen, and the euro rose to a high of 120.27 yen, near its peak since May 2011 of 120.73 hit on Friday.


The Bank of Japan starts its two-day policy meeting on Monday under growing political pressure to pursue bolder measures to beat deflation, with speculation ranging from an open-ended commitment to buy assets until a 2 percent inflation target is achieved to simply boosting its asset buying schemes.


Friday's data showed while currency speculators slightly cut their bets against the yen in the week to Jan 15, they remained overwhelmingly negative on the currency.


"We expect the door for further easing will likely be left open irrespective of the outcome of BoJ policy meeting, either explicitly by the BoJ or implicitly through government's plan to nominate doves to replace the governor and deputy governors," Barclays Capital said in a note to clients.


The steady showing in Asia equities followed a rise in global equities late last week when positive U.S. and Chinese data and signs Washington may avert a fiscal crisis lifted sentiment.


Republicans said the House will consider a bill to raise the U.S. debt ceiling enough to allow the country to pay its bills for another three months. The strategy would buy time for the Democratic-controlled Senate to pass a budget plan that shrinks the federal deficit.


"Another sharp decline in market uncertainty with respect to the US fiscal negotiations provided support to risky assets at the end of last week," said Barclays Capital in a separate research note.


The Dow Jones industrial average <.dji> and the Standard & Poor's 500 Index <.spx> ended Friday at five-year highs on a solid start to the quarterly earnings season. U.S. markets are closed on Monday for the Martin Luther King Jr. holiday.


RISK APPETITE RETURNING


EPFR Global said on Friday EPFR Global-tracked Emerging Markets Bond Funds hit a 50-week high in the second week of January as investors saw some value in the riskier fixed income asset classes. Its Emerging Markets Equity Funds outdid Developed Markets Equity Funds for the sixth time in the past seven weeks, with diversified Global Emerging Markets Equity Funds and funds linked to China favored.


Last year, when several Asian stock markets rallied, many bigger hedge funds failed to beat benchmark returns but nimbler, small to medium-sized funds fared better.


Oil prices rose on Friday on supply disruption fears reinforced by the Islamist militant attack and hostage-taking at a gas plant in Algeria, a member of the Organization of Petroleum Exporting Countries.


U.S. crude futures eased 0.2 percent to $95.36 a barrel early on Monday.


(Additional reporting by Ian Chua in Sydney; Editing by Shri Navaratnam)



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Djokovic plays another Australian Open marathon


MELBOURNE, Australia (AP) — The opponent was different, the match three rounds earlier. Still, the result gave Novak Djokovic a familiar feeling, and another chance to rip off his shirt in celebration.


Djokovic needed just over 5 hours to beat Stanislas Wawrinka 1-6, 7-5, 6-4, 6-7 (5), 12-10 in a fourth-round match Sunday night at the Australian Open, on the same court where he needed 5:53 to beat Rafael Nadal in last year's final.


"I just had flashback of 2012," Djokovic said. "It was maybe 45 minutes less this match than the one 12 months ago, but still it was still as exciting. I tried to enjoy the moment and couldn't ask for more. What a match point ... unbelievable."


He wasn't exaggerating about the match point. On his third attempt to end it, his backhand cross-court shot zipped past the valiant Wawrinka, who, Djokovic conceded, had outplayed him for most of the night.


"He came up with great tactics today," Djokovic said. "He didn't give me a lot of the same rhythm that I could get into the match. He was the one being in charge. I was passive. "


The win was Djokovic's 18th in a row at Melbourne Park after winning the last two Australian titles and advanced the Serbian star to the quarterfinals of his 15th consecutive major tournament.


Wawrinka, who had been receiving treatment to his upper leg muscles from late in the fourth set, said he would take more positives than negatives out of the match. He led 5-2 in the second set after outplaying Djokovic in the first.


"For sure, I think the best match I have ever played," Wawrinka said. "I fought like a dog like always. At 4-4 in the final set, I thought I might have won the match, but he was just better."


Djokovic will next play No. 5 Tomas Berdych, who needed five match points in the tiebreaker before beating South Africa's Kevin Anderson 6-3, 6-2, 7-6 (13).


Fourth-seeded David Ferrer won 6-2, 6-1, 6-4 over No. 16 Kei Nishikori of Japan to set up a quarterfinal against fellow Spaniard Nicolas Almagro, who was leading 6-2, 5-1 when No. 8 Janko Tipsaveric retired from their fourth-round match.


The Djokovic-Wawrinka match overshadowed Maria Sharapova's accomplishment earlier in the day.


Sharapova advanced to the quarterfinals with a 6-1, 6-0 win over Kirsten Flipkens in another impressive display — last year's French Open champion has lost just five games through four rounds, breaking the Australian Open mark of eight held previously by eventual champions Steffi Graf and Monica Seles.


"A couple that I've won, I felt like I was playing great from the beginning and I was able to carry that through the whole tournament," said Sharapova, who won titles in 2004 at Wimbledon, 2006 at the U.S. Open and 2008 in Australia before completing her career Grand Slam with a victory at last year's French Open.


She can't remember ever winning so few games through four rounds of a tournament, but realizes this means nothing if she doesn't make it to the latter stages.


"Well, I'm certainly happy to be playing this well but ... it only gets tougher from here," said Sharapova, who is playing her first tournament of 2013 after withdrawing from a warm-up event at Brisbane because of an injured right collarbone.


She next plays fellow Russian Ekaterina Makarova, who beat fifth-seeded Angelique Kerber 7-5, 6-4. Sharapova defeated Makarova in the quarterfinals here last year on her way to the final, which she lost in straight sets to Victoria Azarenka.


Li Na, who reached the final here in 2011 and won the French Open later that year, saved a set point in the tiebreaker before beating Julia Goerges 7-6 (6), 6-1. She'll play No. 4 Agnieszka Radwanska, who beat No. 13 Ana Ivanovic 6-2, 6-4 for her 13th consecutive win. Radwanska won the Auckland and Sydney titles before coming to Melbourne.


On Monday, Roger Federer plays Milos Raonic, and U.S. Open champion Andy Murray faces Gilles Simon. Azarenka, Serena Williams and fellow American Sloane Stephens also have their fourth-round matches.


Thy will have a tough time matching the spectacle of Sunday's late-night encounter.


Djokovic had beaten Wawrinka — the perennial No. 2 among Swiss tennis players to 17-time major winner Roger Federer — in their 10 previous matches. He hadn't lost a head-to-head since 2006 and had won 11 straight sets between them.


Wawrinka stunned the top-ranked Djokovic with three service breaks in the first set and had that 5-2 lead in the second before the 25-year-old Serb rallied by winning six consecutive games. But just as Djokovic seemed to be taking control, Wawrinka launched his own comeback to win a long tiebreaker and force a fifth set.


Djokovic got to serve first in the fifth, giving him a psychological edge as long as he held his serve.


Wawrinka had game point in the 22nd game but let Djokovic get on a roll. He saved his first match point with a service winner, then saved another two minutes later.


At 1:40 a.m. local time, Wawrinka was whacking his head with the racket and biting the ball after giving Djokovic another match point.


Moments later, he was slumped on the court, exhausted. Djokovic raised both arms, walked to the net and embraced his beaten rival, then pulled of his shirt and flexed.


"Give him credit, he made me run all over the court," Djokovic said. "He never gave me the same ball. He was aggressive from both sides. I didn't know what was coming next."


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Giant Mars Crater Shows Evidence of Ancient Lake






New photos of a huge crater on Mars suggest water may lurk in crevices under the planet’s surface, hinting that life might have once lived there, and raising the possibility that it may live there still, researchers say.


Future research looking into the chances of life on Mars could shed light on the origins of life on Earth, scientists added.






The discovery came from a study of images by NASA’s powerful Mars Reconnaissance Orbiter that revealed new evidence of a wet underground environment on the Red Planet. The images focused on the giant McLaughlin Crater, which is about 57 miles (92 kilometers) wide and so deep that underground water appears to have flowed into the crater at some point in the distant past.


Today, the crater is bone-dry but harbors clay minerals and other evidence that liquid water filled the area in the ancient past.


“Taken together, the observations in McLaughlin Crater provide the best evidence for carbonate forming within a lake environment instead of being washed into a crater from outside,” study lead author Joseph Michalski, of the Planetary Science Institute in Tucson, Ariz., and London’s Natural History Museum, said in a statement. [Search for Water on Mars (Photos)]


A wet Mars underground


Space agencies have deployed many missions to Mars over the decades to explore how habitable its surface may have been or is today. However, the Martian surface has been extremely cold, arid and chemically hostile to life as we know it for most of the history of Mars.


Instead of scanning the surface of Mars for life, scientists have suggested the most viable habitat for ancient simple life may have been in Martian water hidden underground.


On Earth, microbes up to 3 miles (5 km) or more underground make up perhaps half of all of the planet’s living matter. Most of these organisms represent some of the most primitive kinds of microbes known, hinting that life may actually have started underground, or at least survived there during a series of devastating cosmic impacts known as the Late Heavy Bombardment that Earth and the rest of the inner solar system endured about 4.1 billion to 3.8 billion years ago.


Since Mars has less gravity — a surface gravity of a little more than one-third Earth’s — its crust is less dense and more porous than that of our planet, which means that more water can leak underground, researchers said. Wherever there is liquid water on Earth, there is virtually always life, and microbes underground on Mars could be sustained by energy sources and chemical reactions similar to those that support deep-dwelling organisms on Earth.


“The deep crust has always been the most habitable place on Mars, and would be a wise place to search for evidence for organic processes in the future,” Michalski told SPACE.com. [Search for Life on Mars: A Timeline (Gallery)]


Subterranean Mars


While researchers currently have no way to drill deep underground on the Red Planet, they can nevertheless spot hints of what subterranean Mars is like by analyzing deep rocks exhumed by erosion, asteroid impacts or materials generated by underground fluids that have welled up to the surface.


Such upwelling would first occur in deep basins like McLaughlin Crater — as the lowest points on the surface, they would be where underground water reserves would most likely get exposed.


Scientists focused on McLaughlin Crater because it is one of the deepest craters on Mars. McLaughlin is about 1.3 miles (2.2 km) deep and is located in Mars’ northern hemisphere.


The mineral composition of the floor of McLaughlin Crater suggests there was a lake made of upwelled groundwater there. Channels seen on the crater’s eastern wall about 1,650 feet (500 meters) above its floor also hint at the former presence of a lake surface.


Michalski was actually originally trying to disprove the idea that groundwater breached the surface in many locations on Mars.


“Lo and behold, there was strong evidence for that process in this crater,” he said. “Science is special because we are allowed to change our minds.”


An ancient groundwater lake


The researchers estimate that a lake existed at McLaughlin Crater for an unknown duration between 3.7 billion and 4 billion years ago. “That makes the deposits as old as or older than the oldest rocks known to exist on Earth,” Michalski said.


Mounds seen on the crater floor may have come from landslides or subsequent meteor impacts. These are important because they may have rapidly buried crater floor sediments.


“That is really cool because rapid burial is the scenario that is most advantageous for preservation of organic material, if any was present at that time,” Michalski said.


Since life on Earth may have begun underground, learning more about any underground life that might have lived — or may still live — on Mars could shed light on the origins of life on Earth, researchers said.


“We should give serious consideration to exploring rocks representing subsurface environments in future missions,” Michalski said. “That doesn’t mean drilling, but instead exploring rocks formed from upwelling groundwater, or rocks naturally exhumed from the subsurface by meteor impact.”


Michalski noted that some people may ask, “‘Why do I hear about the detection of water or possibility of life on Mars all the time?’ The answer is because Mars is habitable in more ways than we ever realized for many years, and we are finding water in many forms and environments on Mars — many more than we predicted for a long time.”


The ingredients for life the researchers describe, “including energy sources, would have been more available early in Mars’ history, but it doesn’t take too much imagination to picture a scenario in which the subsurface is habitable today,” Michalski said. He cautioned, however, “that is much different from saying that life is there today.”


The scientists detailed their findings online Jan. 20 in the journal Nature Geoscience.


Follow SPACE.com on Twitter @Spacedotcom. We’re also on Facebook & Google+.


Copyright 2013 SPACE.com, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Science News Headlines – Yahoo! News





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Why Hollande must 'reset presidency'




John Gaffney says Francois Hollande, seen here at the Elysee Palace on January 11, 2013, needs to rethink his presidency.




STORY HIGHLIGHTS


  • French President Francois Hollande and the country's Socialists are in a strong position

  • Despite this, Hollande has made little progress since his election, says John Gaffney

  • Gaffney: Hollande "like a stunned bunny in the headlights" of economic reality

  • President must act now, and act decisively, to make France admired again, says Gaffney




Editor's note: John Gaffney is professor of politics and co-director of the Aston Centre for Europe, at the UK's Aston University.


(CNN) -- France is the fifth richest country in the world. It is the world's sixth largest exporter. It has the second largest diplomatic network in the world, after the US. It is a member of the UN Security Council. It is the most visited country in the world, welcoming 82 million visitors last year. It is a major nuclear power. It is the true founder of the European Union. And it is in a terrible mess.


Socialist Francois Hollande was elected president almost a year ago, ousting the deeply unpopular "Mr Bling," President Nicolas Sarkozy.



John Gaffney is professor of politics at Aston University in the UK.

John Gaffney is professor of politics at Aston University in the UK.



France's Socialist left have never been so strong politically: They control the presidency, the government, both houses of parliament, the regions, and all the big towns and cities. And in his first eight months in office, Hollande has done virtually nothing. He is like a stunned bunny in the headlights of an oncoming vehicle called "Harsh Economic Reality."


Hollande has three fundamental problems. The first is that he doesn't have a plan. Tens of thousands of people are losing their jobs each week, and it is going to get worse and worse.


France faces a huge public spending crisis - in health, pensions, and now welfare, and a government debt of 90% of GDP. Not one single adequate measure has been put forward, nor even proposed in his eight months in office.








The second problem is that he lacks the political will to break the log-jams in French society: Making industry more competitive, reducing government spending. He cannot do these things because one of the constituencies he needs to take on -- the huge public sector -- is made up of the people who voted him into power.


He could take on the equally irresponsible banks -- they didn't vote for him -- but he risks sending the economy into a tailspin if he does.


And not only does he need to address the structural issues in France's economy and society, but he made the mistake of telling everyone he could solve the country's problems painlessly, or by taxing the super-rich, and he is not managing to do that either, so he is just taxing everyone else.


Now he faces the worst situation possible because no one believes a word he says. He delivered a robust New Year's message last week, watched by millions; yet 75% don't believe he can deliver on its promise.


In fact, the New Year's Eve wishes everyone in France did believe were the Churchillian tones of German Chancellor Angela Merkel. Her message was essentially the opposite of Hollande's bizarre optimism, which seems to involve little more than following the "Keep Calm and Carry On" mantra. But waiting for the upturn will find France unprepared and in a worse predicament than Spain or Italy, who are now busily restructuring their economies.


The third and fundamental problem Hollande has is that he does not understand the nature of the office he holds, the French Presidency of the Republic. If he did, he might find a way forward. In his New Year message he likened himself to a ship's captain. But he has to be one, not just say he is one. The office of French President is a highly complex mixture of the political and the symbolic. But it is fundamentally about leadership; that is leading not following, and taking the French with him.








Hollande urgently needs to reset his Presidency - and there are a few clear rules to do so:


He needs to take on the banks where necessary, take on the benefits system, the impediments to innovation and to setting up new businesses, take on the appalling situation of France's forgotten inner city misery; his need not be a hard-nosed liberal agenda.


No government in French history is in a better position to make France a more equal society while making it and its economy more efficient. He should focus on young people trying to set up their own business. Focus on small businesses generally. Drag France away from its drive to over regulate everything and throttle innovation. Tax the super-rich if necessary, as long as it contributes to the overall solution he is aiming for.


He also needs to get into step with Merkel and lead Europe with Germany, not pretend he is the spokesperson for the irresponsible spenders.


But above all, he should use the presidency in a more imaginative way: Begin an ongoing and exciting conversation with the French. No other office in the world, not even the presidency of the US, offers such scope for an intimacy between leader and population.


He should boldly use the referendum to build up and direct the conversation towards change and innovation. If the vested interests won't move, bring in the people. Use the referendum like de Gaulle did between 1958 and 1962, as a major political weapon to break the deadlocks in French political society.


In Europe and the wider world he has to make France admired again, as it once was. Inside France, he has to forget about not upsetting anyone. In fact, he should have a plan that upsets just about everybody. The French would love him for it.


So far it remains to be seen what impact his first major foreign policy challenge -- in Mali -- will have. As French forces, with the backing of the international community, go into the West African country to take on Islamist rebels, the coming weeks will tell us whether fate just gave to him the best or the worst opportunity to show the French, and the rest of the world, what he is made of.


The opinions expressed in this commentary are solely those of John Gaffney.






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