2 in custody after shooting death of teen

The mother and aunt of 17-year-old Tyrone Lawson, who was killed after watching a prep basketball game at Chicago State University on Jan. 16, 2013, talk about the incident.

Pamela Wright had dropped off her son at Chicago State University for a high school basketball game and was waiting for him to get back in touch when she got the awful news.

Her son Tyrone Lawson had been shot, apparently as he ran from a fight that had spilled out of the gymnasium Wednesday night.

"Instead of looking forward to prom, I'm looking for an insurance policy to bury him," Wright said this afternoon.

"It hurt so bad," said Lawson's grandmother, Barbara VanHughs, 70, clutching a photo of Lawson and crying. "My baby."

Police say an argument broke out while players were in a handshake line after the game between Simeon Career Academy and Morgan Park High School. The dispute spilled into the parking lot near 95th Street and King Drive and someone pulled out a gun and shot Lawson around 9:30 p.m., officials said.

Lawson died from multiple gunshot wounds in a homicide, the Cook County medical examiner’s office determined this afternoon. Lawson was shot twice in the back while running away, said Kurtistein Bailey, his 41-year-old aunt. Amid the chaos, someone knelt down and told Lawson to get up but he couldn't move, his aunt said.

"This was at the school where his mom thought he was safe," Bailey said. "His mother thought he was safe there. That's why she let him go."

Lawson had sent a text message to this mother earlier in the day, asking if he could go to the game. "Mom, can I go to the basketball game? It's only $10," Lawson had asked, according to VanHughs.

"I texted him back 'K,' and he said 'light' because he always said 'light' instead of 'right,'" said Wright, 52.

Before she dropped him off at the game, Wright gave him $17 -- $10 for the game and $7 to spend -- and told him to "be careful."

His mother waited for him to call back or text her, she said.

A fight broke out at the end of the game, and video shows security getting players off the court. It was unclear what the fight was about. Nothing outside ordinary bumps and physical contact appeared to have happened during the game between the two schools, which are located on Vincennes Avenue about 30 blocks apart.

Around 8:30 p.m., Wright wanted to check on her son, but her 53-year-old fiance, Gregory Young, assured her Lawson was "all right." About an hour later, Wright learned from a relative that Lawson had been "hit twice in the back" and died, she said.

University police issued a message to its officers, asking them to watch for a Jeep. It was pulled over east of the school and two people were taken into custody, officials said. Police said they found a gun inside the Jeep.

The Jeep's owner told the Tribune this afternoon that she was not aware of any gun in the car. "I was not there," the owner said. "I don't know what happened."

Wright said she and Young were planning on telling Lawson today that they were getting married next week. Now, the two are tying the knot Feb. 26, Lawson's birthday.

CPS spokeswoman Marielle Sainvilus said the district worked with the university and Chicago police to provide security at the game.

Sainvilus said there was a significant security presence both inside and outside the gym, and there had been screening to prevent anyone from carrying guns into the game. All fans were also searched.

The university released a statement Thursday morning saying it was "deeply saddened by the tragic shooting death."

“(Chicago Public Schools) periodically uses the university’s athletic facility to provide a neutral setting for student sporting events. This is the first such incident to occur on the campus of Chicago State University where CPS students have played many times over the last three years," the statement said.

"Additional security is provided by the university and all external partners during high school sporting events. Arrests have been made and university officials are awaiting the outcome of a full investigation to learn details about the shooting incident.”

Relatives said Lawson was an honor student at Morgan Park and hoped to land a ComEd apprenticeship after graduation. They remembered him as "high-spirited" and "loved by all," a popular student with friends on the basketball team.

Bailey said Lawson loved animals, and took care of snakes, an iguana and turtles over the years. His grandmother said he loved animals so much he gave up his bedroom for his 2-year-old dog, Midnight, and slept on a futon in another room.

VanHughs said she helped raise Lawson while his mother traveled for her job. Family members described the two as having a strong relationship.

"He was definitely a momma's boy," Bailey said. "They were very close and he was her only child."

CPS chief Barbara Byrd-Bennett ordered extra security personnel for the two high schools today. Crisis teams, including counselors, also have been deployed at Morgan Park.

CPS would not release any information about Lawson's education history or attendance at Chicago Public Schools.

Contributor Mike Helfgot and Tribune reporters Peter Nickeas, Rosemary Regina Sobol, Jeremy Gorner and Liam Ford contributed to this story.

chicagobreaking@tribune.com
Twitter: @chicagobreaking

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Algeria ends desert siege, but dozens killed

ALGIERS (Reuters) - Algerian forces stormed a desert gas complex to free hundreds of hostages but 30, including several Westerners, were killed in the assault along with at least 11 of their Islamist captors, an Algerian security source told Reuters.

Western leaders whose compatriots were being held did little to disguise their irritation at being kept in the dark by Algeria before the raid - and over its bloody outcome. French, British and Japanese staff were among the dead, the source said.

An Irish engineer who survived said he saw four jeeps full of hostages blown up by Algerian troops whose commanders said they moved in about 30 hours after the siege began because the gunmen had demanded to be allowed to take their captives abroad.

And while a crisis has ended that posed a serious dilemma for Paris and its allies as French troops attacked the hostage-takers' al Qaeda allies in neighboring Mali, it left question marks over the ability of OPEC-member Algeria to protect vital energy resources and strained its relations with Western powers.

Two Japanese, two Britons and a French national were among at least seven foreigners killed, the source told Reuters. Eight dead hostages were Algerian. The nationalities of the rest, as well as of perhaps dozens more who escaped, were unclear. Some 600 local Algerian workers, less well guarded, survived.

Fourteen Japanese were among those still unaccounted for by the early hours of Friday, their Japanese employer said.

Americans, Norwegians, Romanians and an Austrian have also been mentioned by their governments as having been captured by the militants who called themselves the "Battalion of Blood" and had demanded France end its week-old offensive in Mali.

Underlining the view of African and Western leaders that they face a multinational Islamist insurgency across the Sahara - a conflict that prompted France to send hundreds of troops to Mali last week - the official source said only two of the 11 dead militants were Algerian, including the squad's leader.

The bodies of three Egyptians, two Tunisians, two Libyans, a Malian and a Frenchman were found, the security source said.

The group had claimed to have dozens of guerrillas on site and it was unclear whether any militants had managed to escape.

The overall commander, Algerian officials said, was Mokhtar Belmokhtar, a veteran of Afghanistan in the 1980s and Algeria's bloody civil war of the 1990s. He appears not to have been present and has now risen in stature among a host of Saharan Islamists, flush with arms and fighters from chaotic Libya, whom Western powers fear could spread violence far beyond the desert.

"NO TO BLACKMAIL"

Algeria's government spokesman made clear the leadership in Algiers remains implacably at odds with Islamist guerrillas who remain at large in the south years after the civil war in which some 200,000 people died. Communication Minister Mohamed Said repeated their refusal ever to negotiate with hostage-takers.

"We say that in the face of terrorism, yesterday as today as tomorrow, there will be no negotiation, no blackmail, no respite in the struggle against terrorism," he told APS news agency.

British Prime Minister David Cameron, who warned people to prepare for bad news and who canceled a major policy speech on Friday to deal with the situation, said through a spokesman that he would have liked Algeria to have consulted before the raid.

A Briton and an Algerian had also been killed on Wednesday.

The prime minister of Norway, whose state energy company Statoil runs the Tigantourine gas field with Britain's BP and Algeria's national oil company, said he too was not informed.

U.S. officials had no clear information on the fate of Americans, though a U.S. military drone had flown over the area. Washington, like its European allies, has endorsed France's move to protect the Malian capital by mounting air strikes last week and now sending 1,400 ground troops to attack Islamist rebels.

A U.S. official said on Thursday it would provide transport aircraft to help France with a mission whose vital importance, President Francois Hollande said, was demonstrated by the attack in Algeria. Some fear, however, that going on the offensive in the remote region could provoke more bloodshed closer to home.

The apparent ease with which the fighters swooped in from the dunes to take control of an important energy facility, which produces some 10 percent of the natural gas on which Algeria depends for its export income, has raised questions, over the value of security measures that are outwardly draconian.

Foreign firms were pulling non-essential staff out of the country, which has recovered stability only in recent years and whose ruling establishment, heirs to fighters who ended French rule 50 years ago, has resisted demands for reform and political freedoms of the kind that swept North Africa in the Arab Spring.

"The embarrassment for the government is great," said Azzedine Layachi, an Algerian political scientist at New York's St John's University. "The heart of Algeria's economy is in the south. where the oil and gas fields are. For this group to have attacked there, in spite of tremendous security, is remarkable."

"KILL INFIDELS"

A local man who had escaped from the facility told Reuters the militants appeared to have inside knowledge of the layout of the complex, supporting the view of security experts that their raid was long-planned, even if the Mali war provided a motive.

"The terrorists told us at the very start that they would not hurt Muslims but were only interested in the Christians and infidels," Abdelkader, 53, said by telephone from his home in the nearby town of In Amenas. "'We will kill them,' they said."

Algiers, whose leaders have long had frosty relations with the former colonial power France and other Western countries, may have some explaining to do over its tactics in putting an end to a hostage crisis whose scale was comparable to few in recent decades bar those involving Chechen militants in Russia.

Government spokesman Said sounded unapologetic, however: "When the terrorist group insisted on leaving the facility, taking the foreign hostages with them to neighboring states, the order was issued to special units to attack the position where the terrorists were entrenched," he told state news agency APS, which said some 600 local workers were freed.

The militants said earlier they had 41 foreign hostages.

"ARMY BLASTED HOSTAGES"

Stephen McFaul, an electrical engineer, told his family in Northern Ireland after the operation that he narrowly escaped death, first when bound and gagged by the gunmen who fastened explosives around the hostages' necks and then on Thursday when he was in a convoy of five vehicles driving across the complex.

"(The gunmen) were moving five jeeploads of hostages from one part of the compound," his brother Brian McFaul said. "At that stage, they were intercepted by the Algerian army.

"The army bombed four out of five of the trucks and four of them were destroyed ... He presumed everyone else in the other trucks was killed ... The truck my brother was in crashed and at that stage Stephen was able to make a break for his freedom."

McFaul said it was unclear whether the vehicles had been struck by missiles fired from helicopters or by ground forces.

The attack in Algeria did not stop France from pressing on with its campaign in Mali. It said on Thursday it now had 1,400 troops on the ground there, and combat was under way against the rebels that it first began targeting from the air last week.

"What is happening in Algeria justifies all the more the decision I made in the name of France to intervene in Mali in line with the U.N. charter," Hollande said on Thursday.

The French action last week came as a surprise but received widespread public international support. Neighboring African countries planning to provide ground troops for a U.N. force by September have said they will move faster to deploy them.

(Additional reporting by Ali Abdelatti in Cairo, Eamonn Mallie in Belfast, Gwladys Fouche in Oslo, Mohammed Abbas in London and Padraic Halpin and Conor Humprhies in Dublin; Writing by Alastair Macdonald; Editing by Peter Millership)

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S&P 500 ends flat as bank profits temper growth concerns

NEW YORK (Reuters) - The S&P 500 ended nearly flat on Wednesday as solid earnings from two major banks and a bounceback in Apple shares offset concerns about a lower forecast for global growth in 2013.

Shares of Goldman Sachs hit their highest since May 2011 as earnings nearly tripled on increased revenue from dealmaking and lower compensation expenses. JPMorgan Chase said fourth-quarter net income jumped 53 percent and earnings for 2012 set a record.

JPMorgan shares rose 1 percent to $46.82, while Goldman climbed 4.1 percent to $141.09.

They were among the first big banks to report results and helped to lift estimates for S&P 500 corporate earnings slightly, to a 2.2 percent gain, Thomson Reuters data showed.

"Pretty solid numbers from both JPMorgan and Goldman Sachs are putting a lot of momentum behind the financials, with a lot more names to report this week. But I think that's helping to put a better bid to the market overall," said Michael James, senior trader at Wedbush Morgan in Los Angeles.

Apple rebounded after three days of losses, helping the Nasdaq outperform the S&P 500 and Dow. Apple rose 4.2 percent to $506.09. It closed below $500 on Tuesday for the first time since February.

"There could not have been more negativity around Apple going into today. So was it due for an oversold bounce on a trading basis? Absolutely," James said.

A slow economic recovery in developed nations is holding back the global economy, the World Bank said on Tuesday, as it sharply scaled back its forecast for world growth in 2013 to 2.4 percent from an earlier forecast of 3.0 percent.

The Dow Jones industrial average <.dji> was down 23.66 points, or 0.17 percent, at 13,511.23. The Standard & Poor's 500 Index <.spx> was up 0.29 points, or 0.02 percent, at 1,472.63. The Nasdaq Composite Index <.ixic> was up 6.77 points, or 0.22 percent, at 3,117.54.

The biggest drag on the Dow was Boeing , whose shares fell 3.4 percent to $74.34 on concerns about its new Dreamliner passenger jets. Japan's two leading airlines grounded their fleets of 787s after an emergency landing, adding to safety concerns triggered by a series of recent incidents.

After the bell, shares of eBay were trading up 0.7 at $53.28, reversing an initial decline following the release of its results. Also after the close, shares of CBS rose 8.3 percent to $41.10 after it said it will convert its Outdoor Americas division into a real estate investment trust. [ID:nL4N0AL98X]

Earlier in the day, U.S. economic data showed consumer prices were flat in December, pointing to muted inflation pressures that should give the Federal Reserve room to prop up the economy by staying on its ultra-easy monetary policy path.

Other data showed U.S. homebuilder confidence in the market for single family homes held steady near seven year highs in January, suggesting the outlook for the housing market remained upbeat.

Volume was roughly 5.6 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.

Decliners outpaced advancers on the NYSE by nearly 8 to 7 and on the Nasdaq by almost 7 to 5.

(Additional reporting by Chuck Mikolajczak; Editing by Nick Zieminski and Kenneth Barry)

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Story of Te'o girlfriend death apparently a hoax

SOUTH BEND, Ind. (AP) — Notre Dame said a story that star Manti Te'o's girlfriend had died of leukemia — a loss he said inspired him all season and helped him lead the Irish to the BCS title game — turned out to be a hoax apparently perpetrated against the linebacker.

The university issued a statement about a hoax Wednesday after Deadspin.com said it could find no record that Lennay Kekua ever existed.

By Te'o's own account, she was an "online" girlfriend.

"This is incredibly embarrassing to talk about, but over an extended period of time, I developed an emotional relationship with a woman I met online. We maintained what I thought to be an authentic relationship by communicating frequently online and on the phone, and I grew to care deeply about her," he said in statement.

"To realize that I was the victim of what was apparently someone's sick joke and constant lies was, and is, painful and humiliating."

"In retrospect, I obviously should have been much more cautious. If anything good comes of this, I hope it is that others will be far more guarded when they engage with people online than I was."

The university said its coaches were informed by Te'o and his parents on Dec. 26 that Te'o had been the victim of what appeared to be a hoax.

Someone using a fictitious name "apparently ingratiated herself with Manti and then conspired with others to lead him to believe she had tragically died of leukemia," the school said.

The university said "the proper authorities" are investigating a "very cruel deception to entertain its perpetrators." Notre Dame would not exactly who was investigating the case.

The week before Notre Dame played Michigan State on Sept. 15, coach Brian Kelly told reporters that Te'o's grandmother and a friend had died. Te'o didn't miss the game. He said Kekua had told him not to miss a game if she died. Te'o turned in one of his best performances of the season in the 20-3 victory in East Lansing, and his playing through heartache became a prominent theme during the Irish's undefeated regular season.

The linebacker's father, Brian Te'o, said in a telephone interview with The Associated Press in early October that he and his wife had never met Kekua, saying they were hoping to meet her at the Wake Forest game in November. The father said he believed the relationship was just beginning to get serious when she died.

Te'o went on the become a Heisman Trophy finalist, finishing second in the voting, and leading Notre Dame to its first appearance in the BCS championship.

Te'o and the Irish lost the title game to Alabama, 42-14 on Jan. 7. He has graduated and was set to begin preparing for the NFL combine and draft at the IMG Academy in Bradenton, Fla., this week.

Four days ago Te'o posted on his Twitter account: "Can't wait to start training with the guys! Workin to be the best! The grind continues! (hash)Future"

Te'o's statement also said: "It further pains me that the grief I felt and the sympathies expressed to me at the time of my grandmother's death in September were in any way deepened by what I believed to be another significant loss in my life.

"I am enormously grateful for the support of my family, friends and Notre Dame fans throughout this year. To think that I shared with them my happiness about my relationship and details that I thought to be true about her just makes me sick. I hope that people can understand how trying and confusing this whole experience has been.

"Fortunately, I have many wonderful things in my life, and I'm looking forward to putting this painful experience behind me as I focus on preparing for the NFL Draft."

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Will Europe’s nose dive in consumer spending crush smartphone sales as well?

There are new signs of European consumer spending finishing the year 2012 on a very weak note. Could this mean that consumer electronics sales from video game consoles to smartphones will face an outright slump in the first quarter of 2013? The latest — and worst — indication of a European consumption freeze comes from the automobile industry. Car sales in the European Union dove more than 16% in December. This is far worse than the annual 8% slump for the full year, indicating that the EU retail environment may have taken a turn for the worse. The 2012 tumble in car registrations was the biggest decline since 1993, even steeper than what the region suffered after the 2001 downturn or the 2008 global debt crisis.

[More from BGR: The true genius of Facebook’s Graph Search]

Smartphones aren’t cars. But car sales are often a fairly good indicator of the overall consumer mood.

[More from BGR: Full BlackBerry Z10 specs leak]

It is worth noting that several notable United Kingdom retailers recently announced dismal numbers for December: Chains as diverse as Marks & Spencer, Morrisons and Greggs warned about missing expectations for the period. On the other hand, online sales in the U.K. seemed robust enough in December. German retail sales in November slipped by 0.9% from the previous year, though the December numbers aren’t out yet.

Europe still makes up more than 25% of global smartphone revenues. After the stunning car sales plunge in December, it will be very interesting to hear regional commentary from Apple (AAPL), Nokia (NOK), Qualcomm and other key smartphone companies reporting in coming weeks.

This article was originally published on BGR.com

Green News Headlines – Yahoo! News

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Gruesome toll of cluster bombs in Syria

STORY HIGHLIGHTS

• Human Rights Watch says cluster bombs were used on Syrian town of Latamneh


• Cluster bombs release dozens of smaller bombs, which can maim or kill long after impact


• Syrian regime has previously denied cluster bombs on civilians

Editor's note: Mary Wareham is the Arms Division's Advocacy Director for Human Rights Watch and chief editor of 'Cluster Munition Monitor 2012.'

(CNN) -- It was cloudy the afternoon of January 3 when residents say the cluster bombs fell on the Syrian town of Latamneh.

Three rockets containing the cluster munitions fell in nearby fields, apparently doing no harm, but a fourth landed on the street between residential buildings. Its impact was devastating.

One man was driving down the street when submunitions from the rockets exploded, killing him instantly, residents said. Fifteen civilians walking down the street or in their homes were wounded, including women and children, according to two residents and video evidence. Residents said that an hour after the attack, a submunition that had failed to detonate on impact killed a man who tried to remove it from his yard. It exploded in his hands.

Mary Wareham

Since mid-2012, Human Rights Watch and others have reported several times on civilian casualties caused by Syrian use of air-dropped cluster bombs, but Latamneh and other recent attacks are the first known instances of Syrian use of ground-based cluster munitions. The rockets were apparently launched from the vicinity of nearby Hama airport, which is under government control.

Evidence we have seen suggests that Syrian government forces delivered the 122mm cluster munition rockets containing submunitions using a BM-21 Grad multi-barrel rocket launcher, a truck-mounted system capable of firing 40 rockets nearly simultaneously with a range of 4 to 40 kilometers (2.5 to 25 miles). Grad rocket launchers are notorious for their inability to be accurately targeted due to their lack of a guidance system. This exacerbates the danger from the wide-area effect of the submunitions the rockets contain.

More: Syrian regime denies use of cluster bombs

Many countries, including Lebanon and Cambodia, have experienced civilian casualties from similar types of submunitions, both at the time of attack and from submunitions that didn't explode on initial impact. Each submunition is the size of a D-cell battery with a distinctive white ribbon, and the design of their fuze system makes each one very sensitive and liable to detonate if disturbed.

After years of civilian harm caused by cluster munitions, Israel's massive use of the weapons in southern Lebanon in 2006 helped propel governments into action. Working with civil society groups such as Human Rights Watch and international organizations, a broad-based coalition of like-minded governments sought to do something to reduce the unacceptable harm caused by cluster munitions.

The resulting Convention on Cluster Munitions, adopted May 30, 2008, comprehensively prohibits cluster munitions and requires their clearance and assistance to victims. A total of 111 nations, including many former users, producers, and stockpilers of the weapon, as well as countries contaminated by cluster munition remnants, have embraced the ban convention.

Yet there has been limited interest in the Middle East and North Africa regions, where just three countries—Iraq, Lebanon, and Tunisia—are onboard the treaty banning cluster bombs. Some nations, such as Jordan, say they need more time to study the convention's provisions, while others including Egypt, Iran, and Israel have produced, imported, exported, and stockpiled cluster munitions.

The 122mm cluster munition rockets used by Syria bear the markings of the Egyptian state-owned Arab Organization for Industrialization and an Egyptian company called Sakr Factory for Development Industries. Syria could have bought these cluster munitions from Egypt, received them through military cooperation, or acquired them another way. With no transparency, it is impossible to say how or when they were made or transferred, though it is likely Syria acquired them long ago.

Syria's relentless use of cluster munitions, including in populated areas, is yet another sign of its blatant disregard for international law and the protection of its own civilians. Syria's use of cluster munitions runs counter to the new international standard being created by the Convention on Cluster Munitions, rejecting any use of the weapons.

The preventive impact of the convention and the standard it is establishing can already be seen as countries that have joined the ban rapidly destroy their stockpiles of cluster munitions.

In Syria, every time the government has used cluster munitions and other explosive weapons, a lethal legacy of unexploded ordnance is created. Given the terrible humanitarian impact, all governments, regardless of their position on joining the ban convention, should press Syria to stop using cluster munitions.

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Obama unveils biggest gun-control push in decades

At the White House earlier today President Obama unveiled a set of gun control measures intended to prevent and reduce violence in the wake of the massacre at Sandy Hook Elementary School in Newtown, CT. (Posted: January 16, 2013).

WASHINGTON—

President Barack Obama launched the biggest U.S. gun-control push in generations on Wednesday, urging Congress to approve an assault weapons ban and background checks for all gun buyers to prevent mass shootings like the Newtown school massacre.

Rolling out a wide-ranging plan for executive and legislative action to curb gun violence, Obama set up a fierce clash with the powerful U.S. gun lobby and its supporters in Congress, who will resist what they see as an encroachment on constitutionally protected gun rights.

Obama presented his agenda at a White House event in front of an audience that included relatives of some of the 20 first-graders who were killed along with six adults by a gunman on December 14 at Sandy Hook Elementary School in Newtown, Connecticut.

"We can't put this off any longer," Obama said, vowing to use "whatever weight this office holds" to make his proposals reality. "Congress must act soon," he said, flanked by schoolchildren.

In a sign of how bitter the fight over gun control could get, the National Rifle Association released an advertisement hours before Obama spoke that accused him of hypocrisy for accepting armed Secret Service protection for his daughters. The White House condemned the ad as "repugnant.

Until now, Obama had done little to change America's gun culture. But just days before his second inauguration, he appears determined to champion gun control in his next term, which also will be dominated by debt and spending fights with Congress and a likely debate over immigration reform.

His plan calls on Congress to renew a prohibition on assault weapons sales that expired in 2004, require criminal background checks on all gun purchases, including closing a loophole for gun show sales, and pass a new federal gun trafficking law - long sought by big-city mayors to keep out-of-state guns off their streets.

He also announced 23 steps he intends to take immediately without congressional approval. These include improving the existing system for background checks, lifting the ban on federal research on gun violence, putting more counselors and "resource officers" in schools and better access to mental health services.

Obama signed three of the measures at the ceremony.

ASSAULT WEAPONS BATTLE

Obama, who has called the day of the Newtown massacre the worst of his presidency, looked down into the audience and addressed the parents of one of the Sandy Hook victims, Grace McDonald, 7, saying he had hung one of her paintings in his private study.

"Every time I look at that painting, I think about Grace, and I think about the life that she lived and the life that lay ahead of her, and most of all I think about how when it comes to protecting the most vulnerable among us, we must act now," he said.

As he announced the gun measures, Obama was accompanied by four children chosen from among those who sent letters to him about gun violence and school safety. "We should learn from what happened at Sandy Hook. I feel really bad," 8-year-old Grant Fritz wrote, in a portion Obama read from the podium.

The most contentious piece of the package is Obama's call for a renewed ban on military-style assault weapons, a move that is unlikely to win approval because Republicans who control the House of Representatives are expected to oppose it.

The Newtown gunman, 20-year-old Adam Lanza, used a Bushmaster AR-15 type assault rifle to shoot his victims, most of them 6- and 7-year-olds, before killing himself.

Law enforcement experts have noted, however, that the tighter background checks that Obama is proposing would not have prevented the Connecticut school massacre because the gunman's weapon was purchased legally by his mother.

New York Mayor Michael Bloomberg, a staunch gun control advocate, said tighter controls were needed no matter what.

"No piece of legislation is perfect and no piece of legislation is 100 percent effective. Think of it like a speeding limit. You may every once in a while violate the speeding limit, but that doesn't mean we shouldn't have speeding limits - they protect people's lives," he told reporters.

At the firearm industry's largest trade show in Las Vegas, Gary Svecko - adding a Glock 17 pistol to his gun collection - dismissed Obama's bid to ban assault weapons purchases and blamed video games for inciting violence.

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Sahara Islamists take hostages, spreading Mali war

ALGIERS/BAMAKO (Reuters) - Islamist fighters seized dozens of Western and Algerian hostages in a dawn raid on a natural gas facility deep in the Sahara on Wednesday and demanded France halt a new offensive against rebels in neighboring Mali.

Three people, among them one British and one French, were reported killed, but details were sketchy and numbers of those held at Tigantourine ranged from 41 foreigners - including perhaps seven Americans as well as Japanese and Europeans - to over 100 local staff, held separately and less closely watched.

What is clear is that with a dramatic counterpunch to this week's French build-up in Mali, the region's loosely allied, al Qaeda-inspired radicals have set Paris a daunting dilemma and spread fallout from Mali's hitherto obscure civil war far beyond northwest Africa, challenging Washington as well as Europeans and shutting down a major gas field that pumps energy to Europe.

The attack, which Algeria said was led by a veteran, Afghan-trained holy warrior-cum-smuggler dubbed "The Uncatchable" by French intelligence, came just as French ground troops in Mali launched their first assault after six days of air strikes.

The United States, which like European powers endorsed France's decision to intervene last week against Islamists who have seized vast tracts of northern Mali, confirmed Americans were among the hostages and said it would work to "secure" them.

Western and African governments have been alarmed by a flow of weapons and fighters across the unmarked Sahara borders following the end of Libya's civil war in 2011 and fear that Mali, where Islamists drive the national army from the north nine months ago, could become an Afghan-style al Qaeda haven.

The militants, who said they had dozens of fighters in the gas field, issued no explicit threat but made clear to media in neighboring Mauritania the hostages' lives were at risk.

"We hold the Algerian government and the French government and the countries of the hostages fully responsible if our demands are not met and it is up to them to stop the brutal aggression against our people in Mali," read one statement from the group, which called itself the "Battalion of Blood".

In other comments carried by the Mauritanian news agency ANI, the group said its fighters had rigged explosives around the site and any attempt to free the hostages would lead to a "tragic end". The unusually large numbers of gunmen and hostages involved pose serious problems for any rescue operation.

After dark, ANI quoted a militant source saying fighters had repelled a raid by Algerian troops. He added that the hostage-takers' weaponry included mortars and anti-aircraft missiles.

AMERICANS

The militants said seven Americans were among the 41 foreign hostages - a figure U.S. officials said they could not confirm.

Norwegian energy company Statoil, which operates the gas field in a joint venture with Britain's BP and the Algerian state company Sonatrach, said nine of its Norwegian employees and three of its Algerian staff were being held.

Also reported kidnapped by various sources were five Japanese working for the engineering firm JGC Corp, a French national, an Austrian, an Irishman and a number of Britons.

The Algerian government, which fought a bloody civil war against Islamists in the 1990s, said it would not negotiate.

French media said the militants were also demanding that Algeria release dozens of Islamist prisoners from its jails.

Defense Secretary Leon Panetta said: "I want to assure the American people that the United States will take all necessary and proper steps that are required to deal with this situation."

He said he lacked firm information on whether there were links to the situation in Mali. Analysts pointed to shifting alliances and rivalries among Islamists in the region to suggest the hostage-takers may have a range of motives.

In their own statements, they condemned Algeria's secularist government for "betraying" its predecessors in the bloody anti-colonial war against French rule half a century ago by letting French warplanes fly over its territory to Mali. They also accused Algeria of shutting its border to Malian refugees.

Algerian Interior Minister Daho Ould Kablia told the state news agency APS there were about 20 hostage-takers led by Mokhtar Belmokhtar, an Algerian who fought against Soviet forces in Afghanistan in the 1980s and set up his own group in the Sahara recently after falling out with other al Qaeda leaders.

Some of those held at the facility, near the small town of In Amenas, close to the Libyan border and about 1,300 km (800 miles) inland, had sporadic contact with the outside world.

The head of a French catering company said he had information from a manager who supervised some 150 Algerian employees at the site. Regis Arnoux of CIS Catering told France's BFM television the local staff were being prevented from leaving but were otherwise free to move around inside and keep on working.

"The Westerners are kept in a separate wing of the base," Arnoux said. "They are tied up and are being filmed. Electricity is cut off, and mobile phones have no charge.

"Direct action seems very difficult ... Algerian officials have told the French authorities as well as BP that they have the situation under control and do not need their assistance."

MALI OFFENSIVE

Just days after a bold deployment of French troops to Mali, another former colony, that had largely silenced critics questioning his leadership after eight months in office, French President Francois Hollande faced a possible further escalation of the conflict, with Western targets at risk across Africa.

He has called for international support against insurgents who France says pose a threat to Africa and the West, and admits it faces a long struggle against well-equipped fighters who seized Timbuktu and other oasis towns in northern Mali and have imposed Islamic law, including public amputation and beheading.

Islamists have warned Hollande that he has "opened the gates of hell" for all French citizens.

French army chief Edouard Guillaud said ground forces were stepping up their operation to engage directly "within hours" the alliance of Islamist fighters, grouping al Qaeda's North African wing AQIM and Mali's home grown Ansar Dine and MUJWA.

Residents said a column of some 30 French Sagaie armored vehicles has set off toward rebel positions from the town of Niono, 300 km (190 miles) from the capital Bamako.

A Malian military source said French special forces units were taking part in the operation. Guillaud said France's strikes, involving Rafale and Mirage jet fighters, were being hampered because militants were sheltering among civilians.

Many inhabitants of northern Mali have welcomed the French attacks though some also fear being caught in the cross-fire.

Defense Minister Jean-Yves Le Drian acknowledged that France faced a hard slog, particularly in western Mali where AQIM's mostly foreign fighters have camps: "It's tough. We were aware from the beginning it would be a very difficult operation."

Hollande said on Tuesday that French forces would remain in Mali until stability returned to the West African nation. Hollande said France hoped, however, to hand over to African forces in its former colony, "in the coming days or weeks".

West African military chiefs met for a second day in Bamako to hammer out details of a U.N.-mandated deployment that had been expected to start only in September but was suddenly kick-started by French intervention. They said their aim was to send in the first units of a 2,000-man emergency force on Thursday.

Hollande's intervention in Mali brings risks for eight French hostages held by AQIM in the Sahara as well as the 30,000 French citizens living across West Africa. A French helicopter pilot was killed on Friday, France's only combat death so far.

The conflict in Mali, a landlocked state of 15 million twice the size of France, has displaced an estimated 30,000 people and raised concerns across mostly Muslim West Africa of a radicalization of Islam in the region.

"There is a great hope," one man said from Timbuktu, where he said Islamist fighters were trying to blend into civilian neighborhoods. "We hope that the city will be freed soon."

(Additional reporting by Pascal Fletcher and Andrew Callus in London, Balazs Koranyi in Oslo, Laurent Prieur in Nouakchott, Daniel Flynn in Dakar, John Irish, Catherine Bremer and Nick Vinocur in Paris, David Alexander in Rome and Andrew Quinn in Washington; Writing by Alastair Macdonald; Editing by Kevin Liffey)

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Dow, S&P 500 inch up with retailers but Apple drags again

NEW YORK (Reuters) - The Dow and S&P 500 edged higher on Tuesday after stronger-than-expected retail data, though tech heavyweight Apple dragged on the market for a third day.

Apple was the biggest weight on both the S&P 500 and Nasdaq 100 <.ndx> after reports on Monday of cuts to orders for iPhone parts. Shares declined 3.2 percent to $485.92 and closed below $500 for the first time since February.

Retail stocks advanced after a government report showing retail sales rose more than expected in December was seen as a favorable sign for fourth-quarter growth. A separate report showed manufacturing activity in New York state contracted for the sixth month in a row in January.

"A little better-than-expected news on retail sales once again reinforces that the consumer remains alive and reasonably well," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, which manages about $54 billion in assets.

Among retailers, American Eagle Outfitters Inc gained 4.8 percent to $20.58 and Gap Inc rose 3.4 percent to $32.46. The Morgan Stanley retail index <.mvr> advanced 1.5 percent.

Express Inc surged 23.8 percent to $17.40 after the apparel retailer raised its fourth-quarter and full year 2012 outlook.

The Dow Jones industrial average <.dji> was up 27.57 points, or 0.20 percent, at 13,534.89. The Standard & Poor's 500 Index <.spx> was up 1.66 points, or 0.11 percent, at 1,472.34. The Nasdaq Composite Index <.ixic> was down 6.72 points, or 0.22 percent, at 3,110.78.

Apple's stock has lost about 7 percent in the last three sessions and is down 8.7 percent since the start of the year.

"It's tough to discern exactly what's putting the pressure on it. But at the end of the day, its influence, considering it's still 3 1/2 to 4 percent of the S&P 500 index, is being felt," Luschini said.

"I attribute (it) to just some of the bloom coming off of the rose. They haven't necessarily done anything wrong, as much as others have caught up."

Also keeping investors on edge is the looming debt ceiling debate. On Monday, President Barack Obama rejected any negotiations with Republicans over raising the U.S. debt ceiling. The United States could default on its debt if Congress does not increase the borrowing limit.

Resolving the debt ceiling is more a question of how than if. Investors don't expect a U.S. default, but they are also wary of another eleventh-hour agreement like the one in August 2011.

An expected lackluster earnings season, too, kept investors from taking aggressive bets. Analyst estimates for the quarter have fallen sharply since October. S&P 500 earnings growth is now seen up just 1.8 percent from a year ago, Thomson Reuters data showed.

Homebuilder Lennar reported a sharp rise in quarterly profit, but the stock declined 0.8 percent to $40.68 on worries that growth in orders was slowing.

Dell Inc shares added to Monday's gains, ending up 7.2 percent to $13.17 after sources said talks to take the computer maker private are in an advanced stage.

On the down side, shares of Facebook dropped 2.7 percent to $30.10. The company unveiled a "graph search" feature that CEO Mark Zuckerberg said would help its billion-plus users sort through content within the social network and its content feeds.

Volume was roughly 5.8 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.

Advancers outpaced decliners on the NYSE by about 17 to 12 and on the Nasdaq by about 13 to 11.

(Additional reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)

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Anti-doping officials want Armstrong under oath

A televised confession by Lance Armstrong isn't enough.

Anti-doping officials want the disgraced cyclist to admit his guilt under oath before considering whether to lift a lifetime ban clouding his future as a competitive athlete. That was seconded by at least one former teammate whom Armstrong pushed aside on his way to the top of the Tour de France podium.

"Lance knows everything that happened," Frankie Andreu told The Associated Press on Tuesday. "He's the one who knows who did what because he was the ringleader. It's up to him how much he wants to expose."

Armstrong has been in conversations with U.S. Anti-Doping Agency officials, touching off speculation that he may be willing to cooperate with authorities there and name names.

Interviewer Oprah Winfrey didn't say if the subject was broached during the taping Monday at a downtown Austin hotel. In an appearance on "CBS This Morning," she declined to give details of what Armstrong told her, but said she was "mesmerized and riveted by some of his answers."

Asked whether the disgraced cyclist appeared genuinely contrite after a decade of fierce denials, Winfrey replied, "I felt that he was thoughtful, I thought that he was serious, I thought that he certainly had prepared for this moment. I would say that he met the moment."

She was promoting what has become a two-part special, Thursday and Friday, on her OWN network.

Around the same time, World Anti-Doping Agency officials issued a statement saying nothing short of "a full confession under oath" would cause them to reconsider Armstrong's lifetime ban from sanctioned events.

The International Cycling Union also urged Armstrong to tell his story to an independent commission it has set up to examine claims that the sport's governing body hid suspicious samples from the cyclist, accepted financial donations from him and helped him avoid detection in doping tests.

The ban was only one of several penalties handed to Armstrong after a scathing, 1,000-page report by USADA last year. The cyclist was also stripped of his seven Tour de France titles, lost nearly all of his endorsements and was forced to cut ties with the Livestrong cancer charity he founded in 1997.

The report portrayed Armstrong as the mastermind of a long-running scheme that employed steroids, blood boosters such as EPO, and a range of other performance-enhancers to dominate the tour. It included revealing testimony from 11 former teammates, including Andreu and his wife, Betsy.

"A lot of it was news and shocking to me," Andreu said. "I am sure it's shocking to the world. There's been signs leading up to this moment for a long time. For my wife and I, we've been attacked and ripped apart by Lance and all of his people, and all his supporters repeatedly for a long time. I just wish they wouldn't have been so blind and opened up their eyes earlier to all the signs that indicated there was deception there, so that we wouldn't have had to suffer as much.

"And it's not only us," he added, "he's ruined a lot of people lives."

Armstrong was believed to have left for Hawaii. The street outside his Spanish-style villa on Austin's west side was quiet the day after international TV crews gathered there hoping to catch a glimpse of him. Nearby, members of his legal team mapped out a strategy on how to handle at least two pending lawsuits against Armstrong, and possibly a third.

The AP reported earlier Tuesday that Justice Department officials were likely to join a whistleblower lawsuit against Armstrong by former teammate Floyd Landis, citing a source who works outside the government and requested anonymity because he was not authorized to speak on the record about the matter.

The lawsuit by Landis, who was stripped of the 2006 Tour de France title after testing positive, alleges that Armstrong defrauded the U.S. government by repeatedly denying he used performance-enhancing drugs. The deadline to join the False Claims Act lawsuit, which could require Armstrong to return substantial sponsorship fees and pay a hefty penalty, is Thursday.

Landis is hardly the only one seeking money back from Armstrong.

During his long reign as cycling champion, Armstrong scolded some critics in public, didn't hesitate to punish outspoken riders during the race, and waged legal battles against still others in court.

The London-based Sunday Times has already filed a lawsuit to recover about $500,000 it paid Armstrong to settle a libel case, and Dallas-based SCA Promotions, which tried to deny him a promised bonus for a Tour de France win, has threatened to bring another lawsuit seeking to recover more than $7.5 million awarded by an arbitration panel.

In Australia, the government of the state of South Australia said it will seek the repayment of several million dollars in appearance fees paid to Armstrong for competing in the Tour Down Under in 2009, 2010 and 2011.

"We'd be more than happy for Mr. Armstrong to make any repayment of monies to us," South Australia Premier Jay Weatherill said.

___

Litke reported from Chicago, Vertuno from Austin, Texas. Pete Yost in Washington also contributed to this report.

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