Greek PM presses for deal on loan

ATHENS, Greece (AP) — Greece has reacted with dismay to the European Union‘s failure to agree to release vital rescue loan funds for the debt-ridden country, with the prime minister warning it was not just Greece’s future that hangs in the balance.

The delay prolongs uncertainty over the future of Greece, which faces a messy default that would threaten the entire euro currency used by 17 EU nations.

Prime Minister Antonis Samaras stressed that Greece has done what its creditors from the EU and International Monetary Fund required. “Our partners, along with the IMF, also must do what they have committed to doing,” he said.

He said that “it is not just the future of our country, but the stability of the entire eurozone” that depend on the success of negotiations in coming days.

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One Direction’s 2nd CD hits No. 1, sells 540,000

NEW YORK (AP) — One Direction‘s “Take Me Home” is the taking the boys to the top of the charts — and to new heights.

The group’s sophomore album has sold 540,000 in its first week, according to Nielsen SoundScan. It’s the year’s third-highest debut behind Taylor Swift‘s “Red,” which sold 1.2 million units its first week earlier this month, and Mumford & Sons’ “Babel,” which sold more than 600,000 albums in September in its debut week.

“We just want to say a massive thanks to all the fans who have supported us,” band member Harry Styles, 18, said in an interview Tuesday from London. “We can send tweets and thank them, but 140 characters is never going be enough to say how much it means.”

The album also debuted at No. 1 in the United Kingdom this week and is No. 1 in more than 30 countries, Columbia Records said Wednesday. The fivesome’s debut, “Up All Night,” came in at No. 2 in the United Kingdom last year; it was just released in March in America, where it hit No. 1 and has achieved platinum status.

“We were a little bit nervous about how people were going to take it,” 19-year-old Niall Horan said of the new album during tour rehearsals. “Everyone gets that second album syndrome.”

They say though they’re excited, they won’t be celebrating too much: “We’re finishing rehearsing soon and we’re going home to bed.”

One Direction, who placed third on the U.K. version of “The X Factor” in 2010, is signed to Simon Cowell’s Syco label imprint. In just a year, the band has become worldwide sensations, thanks to its feverish fans. They released a book and have a 3D movie planned. They also made the cut for Barbara Walters’ most fascinating people of 2012 list, which includes New Jersey Gov. Chris Christie and U.S. gold medalist Gabby Douglas.

One Direction says those experiences have helped the group mature.

“We’ve been working hard. We’re starting to grow up,” Horan said. “We’re still young, but we’ve passed the initial teenage years. …We’ve grown up quite quick in the job we have to do and we became a lot more independent.”

The group — which includes Zayn Malik, Liam Payne and Louis Tomlinson — will launch a worldwide tour in February. They hope to work with Katy Perry and are still trying to adjust to the celebrity and fame that has taken over their lives.

“I can see how it gets to people. I guess it’s quite easy to get wrapped up in it all,” Styles said. “We do the same things every other lad our age does. We go out, we have fun, we meet girls and stuff like that. Sometimes it gets written about, which, yeah, we think about it and it’s absolutely crazy. It’s still a bit weird thinking that that’s the way it is.”

___

Online:

http://www.onedirectionmusic.com/us/home/

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Follow Music Mesfin on Twitter at http://twitter.com/MusicMesfin

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U.S. releases new health insurance reform rules

WASHINGTON (Reuters) – The U.S. administration on Tuesday proposed new health insurance rules aimed at ending discrimination against the sick and guaranteeing minimum benefits for millions of Americans who are expected to obtain coverage under President Barack Obama‘s healthcare reform law.

The rules, unveiled by Health and Human Services Secretary Kathleen Sebelius, provide states and insurers with details about how the Obama administration intends to achieve its long-stated goals of guaranteeing access to those with preexisting conditions and making affordable coverage available to families through new online health insurance exchanges.

The administration also proposed rules laying out new consumer protections for wellness and other preventive healthcare coverage. The public has 30-60 days to comment on the proposals before the government finalizes them.

The proposed measures were likely to come under fire from healthcare reform opponents including a growing number of Republican governors who have rejected the provisions calling on states to operate their own healthcare exchanges beginning January 1, 2014.

States have until December 14, under a newly extended deadline, to tell the Department of Health and Human Services whether they intend to pursue their own healthcare exchanges, which are designed to offer consumers private insurance at subsidized rates beginning in October with open enrollment.

About 17 states have told the administration they plan to move ahead on exchanges, while at least eight Republican governors in recent days have rejected the plan outright or opted to cooperate with Washington in setting up a hybrid federal partnership exchange.

Still more states, which delayed implementation in hopes that Republican Mitt Romney would win the presidential election earlier this month and repeal the law, are only now deciding what to do and had called on the administration for more time and information.

Meanwhile, the administration is moving ahead to complete rule making to ensure timely implementation.

“The information we’re putting out today will answer many of the states’ remaining questions, as will additional guidance to be issued in the days and weeks ahead,” Sebelius said in a conference call with reporters.

“I’m confident states will have what they need to move forward with creating these critical new health insurance markets,” she said.

Sebelius said she would “sit down” with governors to discuss their concerns in the coming weeks, but provided no details.

State-level opposition and lethargy have raised concerns about whether the administration can establish functioning exchanges in states that need them. But administration officials insisted on Tuesday that the system will be up and running in all 50 states and the District of Columbia when the healthcare law comes fully into force in 2014.

“FOOD FIGHT”

The Patient Protection and Affordable Care Act, the most sweeping healthcare legislation since the 1960s, would extend coverage to more than 30 million uninsured people with about half that number obtaining insurance through the healthcare exchanges. The remainder would receive benefits from an expanded Medicaid program for low-income people.

To address regional inequities in the healthcare system, the law requires insurers to provide benefits across 10 categories in the individual and small-group markets, whether or not the plans are part of an exchange.

The categories are: ambulatory patient services; emergency services; hospitalization; maternity and newborn care; mental health and substance use disorder services; prescription drugs; rehabilitative and habilitative services; laboratory services; preventive and wellness care and chronic disease management; and pediatric services.

The proposed benefits rule largely codifies the contents of an administration bulletin last December that allowed each state to select a private or public insurance plan already operating in its market as a benchmark for benefits.

Dr. Arthur Kellermann of RAND Health, a think tank, said the approach leaves in place state variations in insurance quality the law was meant to eliminate. But he said the proposed rule still represented a significant improvement.

“It is a major step forward for consumers in trying to bring consistency to the insurance market in terms of covered services and the value of policies,” Kellermann said.

The only major benefits change from last December, according to officials, is a richer prescription drug benefit. Instead of requiring insurers to offer one drug per class, the rule calls for either one drug or the same number as the benchmark plan, whichever is greater.

However, critics said the new rules lack important details and definitions about relatively new coverage for the disabled, the mentally ill and substance dependent, which are subject to a mandate that eliminates lifetime spending limits in health insurance plans.

“They’re going out of their way to avoid doing what the law envisioned, which is spelling out the details, because it’s such an ugly interest-group food fight,” said Edmund Haislmaier of the conservative think thank, Heritage Foundation.

Health insurance companies would be prohibited from denying coverage because of a pre-existing condition, or from charging higher premiums because of current or past health problems, gender or occupation. The rules also would ensure access to catastrophic coverage plans for young adults and others who could not afford coverage otherwise.

The administration also proposed rules for expanding employment-based wellness programs to help control healthcare spending and to protect individuals from unfair underwriting practices that could otherwise reduce benefits based on their health status.

Gary Cohen, an administration official helping to oversee implementation, said the wellness rules seek to protect consumers from practices that could be used to reduce benefits based on a participant’s health status.

(Editing by David Gregorio and Carol Bishopric)

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Gaza shakes, Israelis killed as Clinton seeks truce

GAZA/JERUSALEM (Reuters) - Israeli air strikes shook the Gaza Strip and Palestinian rockets struck across the border as U.S. Secretary of State Hillary Clinton held talks in Jerusalem in the early hours of Wednesday, seeking a truce that can hold back Israel's ground troops.

Egypt's new Islamist government is mediating talks and had floated hopes for a ceasefire by late Tuesday between Israel and Hamas, the Islamist movement controlling Gaza. However, by the time Clinton met Israeli Prime Minister Benjamin Netanyahu, it was clear there would be more argument, and more violence, first.

Hamas leaders in Cairo accused the Jewish state of failing to respond to proposals and said an announcement on holding fire would not come before daylight on Wednesday. Israel Radio quoted an Israeli official saying a truce was held up due to "a last-minute delay in the understandings between Hamas and Israel."

An initial halt to attacks may, however, not see the sides stand their forces down from battle stations immediately. Clinton, who flies to Cairo to see Egyptian President Mohamed Mursi later on Wednesday, spoke of a deal "in the days ahead."

Like most Western powers, Washington shuns Hamas as an obstacle to peace and has blamed it for the Gaza conflagration. A U.N. Security Council statement condemning the conflict was blocked on Tuesday by the United States, which complained that it "failed to address the root cause," the Palestinian rockets.

As Clinton arrived in Israel after nightfall, Israel was stepping up its bombardment from air and sea. At one point munitions slammed into Gaza at a rate of one every 10 minutes.

Gazan rocket fire waned overnight but resumed before dawn on Wednesday with six launches, Israel said. No one was hurt.

After seven days of hostilities that have killed over 130 Palestinians and five Israelis, both sides are looking for more than a return to the sporadic calm that has prevailed across the blockaded enclave since Israel ended a much more devastating air and ground offensive four years ago.

ELECTION

Netanyahu, who faces an election in two months that he is, for now, favored to win, told Clinton he wanted a "long-term" solution. Failing that, Netanyahu made clear, he stood ready to step up the military campaign to silence Hamas' rockets.

Hamas for its part is exploring the opportunities that last year's Arab Spring has given it to enjoy favor from the new Islamist governments of states once ruled by U.S. proteges, and from Sunni Gulf powers keen to woo it away from Shi'ite Iran. It has used longer-range missiles, some sent by Tehran, and hopes to eclipse Western-backed Palestinian President Mahmoud Abbas.

Hamas has spoken of an easing of Israel's blockade on the 40-km (25-mile) slice of Mediterranean coast that is home to 1.7 million people. It may count on some sympathy from Mursi, though Egypt's first freely elected leader, whose Muslim Brotherhood inspired Hamas' founders, has been careful to stick by the 1979 peace deal with Israel struck by Cairo's former military rulers.

Clinton, who broke off from an Asian tour with President Barack Obama and assured Netanyahu of "rock-solid" U.S. support for Israel's security, spoke of seeking a "durable outcome" and of Egypt's "responsibility" for promoting peace.

She repeated international calls for the kind of lasting, negotiated, comprehensive Israeli-Palestinian settlement that has eluded the two peoples for decades - something neither of the two warring parties seems seriously to be anticipating.

"In the days ahead, the United States will work with our partners here in Israel and across the region toward an outcome that bolsters security for the people of Israel, improves conditions for the people of Gaza and moves toward a comprehensive peace for all people of the region," Clinton said.

"It is essential to de-escalate the situation in Gaza. The rocket attacks from terrorist organizations inside Gaza on Israeli cities and towns must end and a broader calm restored," she said.

"SELF-DEFENCE"

Netanyahu, who has appeared in no immediate rush to repeat the invasion of winter 2008-09 in which over 1,400 Palestinians died, said: "If there is a possibility of achieving a long-term solution to this problem with diplomatic means, we prefer that.

"But if not, I'm sure you understand that Israel will have to take whatever action is necessary to defend its people."

As Israeli aircraft have carried out hundreds of strikes on rocket stores, launchpads and suspected Hamas command posts since assassinating the head of its military wing a week ago. Tens of thousands of Israeli soldiers have been preparing tanks and infantry units for a possible invasion.

During the night, explosions again rocked the city of Gaza and other parts of the Strip, while rockets from the enclave, some essentially home-made, others Iranian-designed and smuggled through tunnels from Egypt, landed in southern Israel.

One reached as far as Rishon Lezion, near Tel Aviv, on Tuesday, the latest to jar Israel's metropolis, long untroubled by Palestinian attacks. Another rocket fell close to Jerusalem, the holy city claimed by both sides in the conflict.

Medical officials in Gaza said 31 Palestinians were killed on Tuesday. An Israeli soldier and a civilian died when rockets exploded near the Gaza frontier, police and the army said.

Gaza medical officials say 138 people have died in Israeli strikes, mostly civilians, including 34 children. In all, five Israelis have died, including three civilians killed last week.

AMMUNITION STORES

Obama, whose relations with the hawkish Netanyahu have long been strained, has said he wants a diplomatic solution, rather than a possible Israeli ground operation in the densely populated territory, home to 1.7 million Palestinians.

Israel's military said it targeted overnight more than 100 sites in Gaza, including rocket launchers, tunnels and the Ministry of Internal Security, used by Hamas as a command center. Israeli police said more than 150 rockets had been fired from Gaza by Tuesday evening.

"No country would tolerate rocket attacks against its cities and against its civilians," Netanyahu said with U.N. Secretary-General Ban Ki-moon, who arrived in Jerusalem from talks in Cairo, at his side. "Israel cannot tolerate such attacks."

Critics have accused Israel of using disproportionate force that has killed civilians. Israel accuses Hamas of putting Gaza's people in harm's way by siting rockets among them.

Media groups have criticized attacks on Gaza media facilities. On Tuesday, three local journalists died in air strikes on their vehicles.

A building housing AFP's bureau was bombed. The French news agency said its staff were unhurt. Israel's military said it had been targeting a Hamas intelligence centre in the tower.

Hamas executed six Palestinians accused of spying for Israel, who a security source quoted by Hamas Aqsa radio said had been "caught red-handed" with "filming equipment to take footage of positions." The radio said they had been shot.

Militants on a motorcycle dragged the body of one of the men through the streets.

A delegation of nine Arab ministers, led by the Egyptian foreign minister, visited Gaza in a further signal of heightened Arab solidarity with the Palestinians.

(Additional reporting by Cairo bureau; Writing by Alastair Macdonald; Editing by Lisa Shumaker)

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U.S. fiscal impact of great concern to Canada: Canada’s Harper

TORONTO (Reuters) – Any fiscal problems that would significantly slow the U.S. economy would be of great concern to Canada, Canadian Prime Minister Stephen Harper said on Monday.

The United States needed a credible medium-term fiscal plan, Harper said at a business forum in Ottawa, adding that he was following the U.S. fiscal debate with “great interest.”

(Reporting by Solarina Ho)

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People turn to Twitter for CPR information: study

(Reuters) – Amid snarky comments and links to cat videos, some Twitter users turn to the social network to find and post information on health issues like cardiac arrest and CPR, according to a U.S. study.

Over a month, researchers found 15,234 messages on Twitter that included specific information about resuscitation and cardiac arrest, said the study published in the journal Resuscitation.

“From a science standpoint, we wanted to know if we can reliably find information on a public health topic, or is (Twitter) just a place where people describe what they ate that day,” said Raina Merchant, the study’s lead author and a professor at the Department of Emergency Medicine at the University of Pennsylvania.

According to the researchers, they found people using Twitter to send and receive a wide variety of information on CPR and cardiac arrest, including their personal experiences, questions and current events.

Some researchers and organizations already use Twitter for public health matters, including tracking the 2009 H1N1 “swine flu” pandemic and finding the source of the Haitian cholera outbreak, the researchers said.

For the study, the researchers created a Twitter search for key terms, such as CPR, AED (automatic external defibrillators), resuscitation and sudden death.

Between April and May 2011, their search returned 62,163 tweets, which were whittled down to 15,324 messages that contained specific information about cardiac arrest and resuscitation.

Only 7 percent of the tweets were about specific cardiac arrest events, such as a user saying they just saw a man being resuscitated, or a user asking for prayers for a sick family member.

About 44 percent of the tweets were about performing CPR and using an AED. Those types of tweets included information on rules about keeping AEDs in businesses and questions about how to resuscitate a person.

The rest of the tweets were about education, research and news events, such as links to articles about celebrities going into cardiac arrest.

The vast majority of the Twitter users send fewer than three tweets about cardiac arrest or CPR throughout the month. Users that sent more tweets typically had more followers – people who subscribe to their messages – and often worked in a health-care related field.

About 13 percent of the tweets were re-sent, or retweeted, by other users. The most popular retweeted messages were about celebrity-related cardiac arrest news, such as an AED being used to revive a fan at a Lady Gaga concert.

“I think the pilot (study) illustrated for us that there is an opportunity to potentially provide research and information for people in real time about cardiac arrest and resuscitation,” Marchant said.

“I can imagine in the future we will see systems that would automatically respond to tweets of individual users. Twitter is a really powerful tool, and we’re just beginning to understand its abilities.”

SOURCE: http://bit.ly/T2bj7u

(Reporting from New York by Andrew Seaman at Reuters Health; editing by Elaine)

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Jackie Chan: upcoming film will be last big action movie

BEIJING (Reuters) – Kung Fu superstar Jackie Chan said that while the upcoming film “Chinese Zodiac 2012″ will be his last major action movie, citing his increasing age, he will still be packing punches in the world of philanthropy.

Chan wrote, directed and produced his latest film, set to premiere in cinemas in China next month. He also plays the lead role and said that he regarded it the “best film for myself” in the last ten years.

“I’m the director, I’m the writer, I’m the producer, I’m the action director, almost everything,” the 58-year-old Hong Kong actor told Reuters while in Beijing to film a documentary.

“This really, really is my baby. You know, I’ve been writing the script for seven years,” and the film took a year and half to make, he added.

In the film, Chan is a treasure hunter seeking to repatriate sculpture heads of the 12 animals of the Chinese zodiac, which were taken from Beijing‘s Summer Palace by French and British forces during the Opium Wars.

He said it was an important movie for him because it will be his last major action feature, although he insisted it is not the end of his action career.

“I’m not young any more, honestly,” he said, noting that with special effects technology and doubles a lot can be done without physical risk.

“Why (do) I have to use my own life to still do these kind of things?” he said. “I will still do as much as I can. But I just don’t want to risk my life to sit in a wheelchair, that’s all.”

Chan was recently awarded the Social Philanthropist of the Year award by Harpers Bazaar magazine. He said he wanted to increase time devoted to charitable work and hoped China’s leagues of newly wealthy will follow his example – which he underlined by auctioning a Bentley 666 for around 6 million yuan ($ 961,837).

China now has more billionaires than any other Asian country, but very few philanthropic organizations, and giving to charity remains a relatively new phenomenon in the world’s most populous country.

Chan said while Chinese philanthropists have made some encouraging strides, much more still needs to be done – a task made harder by the Internet, with netizens willing to leap on every perceived wrong move.

“Right now people (must) very, very be careful, but that doesn’t stop them to want to do the charity. I think it’s a good sign,” Chan said. (Reporting by Reuters Television, editing by Elaine Lies and Christine Kearney)

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Thanksgiving Day shopping: retailer sales trump tradition

(Reuters) – Whether U.S. shoppers and workers like or loathe the encroachment of the holiday shopping season into Thanksgiving Day, one thing is for certain – the trend is not going away.

Even as stores fight charges of spreading holiday creep instead of cheer, retailers are making money out of moving the start of the holiday shopping season from “Black Friday” — the day after Thanksgiving — into Thanksgiving night, or even the Day itself.

“Not everybody’s going to watch 12 hours of football on Thanksgiving Day. Most people, after 20 minutes of sitting at the dinner table, are ready to get out and do something. Why not cater to the people who are into the sport of shopping?” said Marshal Cohen, chief industry analyst for market research firm NPD.

Retailers like Target Corp , Sears Holdings Corp and Toys R Us Inc have joined Wal-Mart and Gap Inc in staying open on what is a national holiday. Traditionally, stores had waited until Black Friday to make their big push.

There is mounting pressure from Wall Street as well.

“From an investor’s standpoint if a retailer is not putting (in) extra hours while competitors are extending them, it would make me wonder how much they can participate in the race for the consumer dollar,” said Ken Hemauer, a senior portfolio manager at Robert W. Baird & Co based in Milwaukee.

Between sales, profits and Wall Street expectations, not many think petitions like the one on change.org, asking Target to “save Thanksgiving” by staying shut that day will succeed. The petition had 355,570 supporters at last count.

And not everyone is complaining. A recent survey by the consulting firm Deloitte showed 23 percent plan to shop in stores on Thanksgiving Day – up from 17 percent in last year’s survey.

Data on the impact of stores being open on Thanksgiving Day is hard to come by, but Alison Paul, vice chairman and U.S. Retail & Distribution lead Deloitte, said it was likely that sales made that day cut into demand later in the holiday season.

“It shifts spending,” she said. “It doesn’t create any more spending.”

Still, retailers remaining closed on Thanksgiving risk losing out to competitors in the a battle for consumer dollars as the overall spending pie is expected to grow less than last year.

“The upside is not huge, but the downside could be,” Paul said.

Industry watchdog National Retail Federation expects holiday sales this year to rise 4.1 percent to $ 586.1 billion, lower than the 5.6 percent rise in 2011.

A handful of chains like Best Buy Co , Macy’s and Kohl’s plan to wait to open at midnight on Black Friday, but they are notable for waiting.

“Most retailers have customers lining up in front of their stores for hours anyway (early on Black Friday or even very late in the night on Thanksgiving),” said Dan Butler, vice president, Merchandising and Retail Operations at the National Retail Federation. “If they are going to be there, they might as well be inside. It is silly to have your customers outside in cold, snowy weather.”

DOORBUSTERS AND DOLLARS

In an economy that is blowing hot and cold, “doorbuster” deals and other discounts are the best bet stores have to hook customers.

“You’re essentially increasing traffic. If you have some merchandise significantly marked down and can get people in through the door, there is a whole range of other products that they’ll buy at your location,” said Nick Jones, executive vice president, Retail Practice Lead at advertising agency Leo Burnett.

Jim Brownell, vice president Retail Industry Solutions for sourcing company GT Nexus said retailers were using the extra hours of sales to keep up the frenzy as the chase the dollars.

“The retailers are generating it (demand), the consumers aren’t demanding it,” said Brownell, who had worked with retailers like Williams-Sonoma Inc , Restoration Hardware and Gap.

“Retail is not growing very much, so we’re not seeing much more money coming in the season. It is really who’s getting a bigger portion of the sales pie.”

The trouble is, items on sale are low margin, so they do not bring in a lot of money unless volumes are high.

“Everybody’s worried that the price sensitive customers will go to whoever’s open first. They are worried about being late to the game,” Eric Anderson, Hartmarx Professor of Marketing at Kellogg School of Management.

NRF’s Butler said the number of shoppers ensures that retailers make a profit on that day.

“It is a profitable time for retailers. When they price their goods, even when they are on sales, they price them for profitability,” he said.

(Reporting by Nivedita Bhattacharjee in Chicago; additional reporting by Brad Dorfman in Chicago; Editing by Leslie Gevirtz)

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Clinton heading to Mideast amid Gaza crisis

GAZA/JERUSALEM (Reuters) - The U.N. chief called for an immediate ceasefire in the Gaza Strip on Tuesday and U.S. Secretary of State Hillary Clinton headed to the region with a message that escalation of the week-long conflict was in nobody's interest.

Nevertheless, Palestinian rocket fire and Israeli air strikes continued for a seventh day.

Hamas militants said they fired 16 missiles at the southern Israeli city of Beersheba after Israel's military targeted roughly 100 sites in Gaza overnight, including ammunition stores and the Gaza headquarters of the National Islamic Bank.

Some 110 Palestinians have died in a week of fighting, the majority of them civilians, including 27 children. Three Israelis died last week when a Gaza missile struck their house.

In Cairo, U.N. Secretary-General Ban Ki-moon called for an immediate ceasefire and said an Israeli ground operation in Gaza would be a "dangerous escalation" that must be avoided.

He had held talks in the Egyptian capital with Arab League chief Nabil Elaraby and was due to meet Egypt's Islamist President Mohamed Mursi before travelling to Israel for talks with Israeli Prime Minister Benjamin Netanyahu.

Israel's leaders weighed the benefits and risks of sending tanks and infantry into the densely populated coastal enclave two months before an Israeli election, and indicated they would prefer a diplomatic path backed by world powers, including U.S. President Barack Obama, the European Union and Russia.

The White House said Clinton was going to the Middle East for talks in Jerusalem, Ramallah and Cairo to try to calm the conflict. An Israeli sources said she was expected to meet Netanyahu on Wednesday.

Netanyahu and his top ministers debated their next moves in a meeting that lasted into the early hours of Tuesday.

"Before deciding on a ground invasion, the prime minister intends to exhaust the diplomatic move in order to see if a long-term ceasefire can be achieved," a senior Israeli official, speaking on condition of anonymity, said after the meeting.

A delegation of nine Arab ministers, led by the Egyptian foreign minister, were due in Gaza later on Tuesday in a further signal of heightened Arab solidarity with the Palestinians.

Any diplomatic solution may pass through Egypt, Gaza's other neighbor and the biggest Arab nation, where the ousting of U.S. ally Hosni Mubarak and the election of Mursi is part of a dramatic reshaping of the Middle East wrought by Arab uprisings and now affecting the Israeli-Palestinian conflict.

Mursi, whose Muslim Brotherhood was mentor to the founders of Hamas, took a call from Obama on Monday telling him the group must stop rocket fire into Israel - effectively endorsing Israel's stated aim in launching the offensive last week. Obama, as quoted by the White House, also said he regretted civilian deaths - which have been predominantly among the Palestinians.

"The two leaders discussed ways to de-escalate the situation in Gaza, and President Obama underscored the necessity of Hamas ending rocket fire into Israel," the White House said, adding that the U.S. leader had also called Netanyahu.

"In both calls, President Obama expressed regret for the loss of Israeli and Palestinian civilian lives."

EGYPT SEES DEAL

Mursi has warned Netanyahu of serious consequences from a ground invasion of the kind that killed more than 1,400 people in Gaza four years ago. But he has been careful not to alienate Israel, with whom Egypt's former military rulers signed a peace treaty in 1979, or Washington, a major aid donor to Egypt.

Egyptian Prime Minister Hisham Kandil told Reuters a ceasefire was possible: "I think we are close, but the nature of this kind of negotiation, (means) it is very difficult to predict."

After Hamas leader Khaled Meshaal laid out demands in Cairo that Israel take the first step in restoring calm, and warned Netanyahu that a ground war in Gaza could wreck his re-election prospects in January, a senior Israeli official denied a Hamas assertion that the prime minister had asked for a truce.

"Whoever started the war must end it," Meshaal said, referring to Israel's assassination from the air on Wednesday of Hamas's Gaza military chief, a move that followed a scaling up of rocket fire onto Israeli towns over several weeks.

An official close to Netanyahu told Reuters: "We would prefer to see a diplomatic solution that would guarantee the peace for Israel's population in the south. If that is possible, then a ground operation would no longer be required."

Fortified by the ascendancy of fellow Islamists in Egypt and elsewhere, and courted by fellow Sunni Arab leaders in the Gulf keen to draw the Palestinian group away from old ties to Shi'ite Iran, Hamas has tested its room for maneuver, as well as longer-range rockets that have reached the Tel Aviv metropolis.

LOWER INTENSITY

Israeli statistics showed some easing in the ferocity of the exchanges on Monday. Israeli police counted 110 rockets, causing no casualties, of which 42 were shot down by anti-missile batteries. Tuesday's salvo also caused no injuries.

There has been no attack on Tel Aviv since Sunday.

Hamas said four-year-old twin boys had died with their parents when their house in the town of Beit Lahiya was struck from the air during the night. Neighbors said the occupants were not involved with militant groups.

Israel had no immediate comment on that attack. It says it takes extreme care to avoid civilians and accuses Hamas and other militant groups of deliberately placing Gaza's 1.7 million people in harm's way by placing rocket launchers among them.

Nonetheless, fighting Israel, whose right to exist Hamas refuses to recognize, is popular with many Palestinians and has kept the movement competitive with the secular Fatah movement of Palestinian President Mahmoud Abbas, who remains in the West Bank after losing Gaza to Hamas in a civil war five years ago.

"Hamas and the others, they're our sons and our brothers, we're fingers on the same hand," said 55-year-old Faraj al-Sawafir, whose home was blasted by Israeli forces. "They fight for us and are martyred, they take losses and we sacrifice too."

In scenes recalling Israel's 2008-2009 winter invasion of the coastal enclave, tanks, artillery and infantry have massed in field encampments along the sandy, fenced-off border.

Israel has also authorized the call-up of 75,000 military reservists, so far mobilizing around half that number.

Although 84 percent of Israelis support the current Gaza assault, according to a poll by Israel's Haaretz newspaper, only 30 percent want an invasion.

In an echo of frictions over the civil war in Syria, Russia accused the United States on Monday of blocking a bid by the U.N. Security Council to condemn the escalating conflict in the Gaza Strip. Washington has generally stopped the U.N. body from putting what it sees as undue pressure on its Israeli ally.

(Writing by Alastair Macdonald; and Crispian Balmer)

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Canada pledges again to balance budget by 2015

OTTAWA/NEW YORK (Reuters) – The Canadian government on Friday reiterated its intention to balance its budget by 2015, three days after projecting there would be deficits until 2016-17.

In separate appearances in Quebec City and New York, Prime Minister Stephen Harper and Finance Minister Jim Flaherty were at pains to say they still intended to end the red ink by 2015.

“It remains the government’s plan, intention, to balance the budget prior to the next federal election. The recent economic and fiscal update by the minister indicates we are actually very close to that objective,” Harper told reporters in Quebec City. The next election is in October 2015.

Flaherty’s fall fiscal update on Tuesday had pushed back the target date for eliminating the deficit by a year, to 2016-17, citing a weak global economy.

But the minister said in a speech in New York that the government was on track to balance the budget in the next two to three years, barring major external events, and he later clarified that he intended a balanced budget by 2015.

“The prime minister’s always correct,” he chuckled.

He sought to explain the discrepancy by saying the fiscal update had built in a C$ 3 billion ($ 3 billion) contingency cushion, meaning there was an underlying surplus of C$ 1.2 billion for 2015-16. He said the projection of a C$ 1.8 billion deficit amounted to about half a percent of the C$ 275 billion federal budget.

“There’s lots of water to go under the bridge between now and then,” he said.

The opposition New Democratic Party noted the discrepancy in a release headlined: “Stephen Harper makes stuff up about balancing the budget.”

It pointed out that balancing the budget by the next election was not the same as balancing it by 2016-17.

As it is, even the 2015-16 timetable is a year later than offered in the Conservative campaign for reelection in May 2011. They had promised a balanced budget by 2014-15, followed by major personal income tax relief before the 2015 election.

Flaherty’s timetable drew criticism this week from the Canadian Taxpayers Federation, which said the minister had become expert at kicking the can down the road.

The projections could be thrown out of whack if the United States goes off the fiscal cliff, a set of automatic tax hikes and spending cuts that are to be triggered on January 2 if legislators and the White House cannot agree on a more nuanced budget deal.

Flaherty said U.S. failure to avert the fiscal cliff would cause a significant and immediate decline in Canada’s gross domestic product, and he would counter it.

Referring to a possible economic shock from Europe or the United States, he said: “If that were to happen and if the Canadian economy were to be pushed back into recession with the resulting danger for higher unemployment and the danger always of a prolonged recession, then we would act.”

He added: “We would not stand by and let that happen. The kinds of measure we can take: there are various tax measures we can take, there are measures with respect to stimulus we can take, these are things that we have done before and we can do again.”

On Tuesday, Flaherty spoke of having prepared various contingency plans.

(Additional reporting by Louse Egan; Editing by David Gregorio)

Canada News Headlines – Yahoo! News

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