PC titans take notes from tablets to regain customers

SAN FRANCISCO (Reuters) – Personal computer makers, trying to beat back a tablet mania that’s eating into their sales, are making what may be a last-ditch attempt to sway customers by mimicking the competition.

Many of the laptops to be unveiled around the world in coming months will be hybrids or “convertibles” – morphing easily between portable tablets and full-powered laptops with a keyboard, industry analysts say.

The wave of hybrids comes as Intel Corp and Microsoft Corp, long the twin leaders of the PC industry, prepare to report results this week and next. Wall Street is predicting flat to sluggish quarterly revenue growth for both, underscoring the plight of an industry that has struggled to innovate.

In 2013, some are hoping that will change.

With the release of Microsoft’s touch-centric, re-imagined Windows 8 platform in October and more power-efficient chips from Intel, PC makers are trying to spark growth by focusing on creating slim laptops with touchscreens that convert to tablets and vice versa.

Microsoft, expanding beyond its traditional business of selling software, is expected this month to roll out a “Surface Pro” tablet compatible with legacy PC software developed over decades.

That’s a major selling point for corporate customers like German business software maker SAP, which plans to buy Surface Pros for employees that want it, said SAP Chief Information Officer Oliver Bussmann.

“The hybrid model is very compelling for a lot of users,” Bussmann told Reuters last week. “The iPad is not replacing the laptop. It’s hard to create content. That’s the niche that Microsoft is going after. The Surface can fill that gap.”

Apple’s iPad began chipping away at demand for laptops in 2010, an assault that accelerated with the launch of Amazon.com Inc’s Kindle Fire and other Google Android devices like Samsung Electronics’ Note.

With sales of PCs falling last year for the first time since 2001, this year may usher in a renaissance in design and innovation from manufacturers who previously focused on reducing costs instead of adding new features to entice consumers.

“People used to be able to just show up at the party and do well just because the market was going up,” Lisa Su, a senior vice president at Advanced Micro Devices, which competes against Intel. “It’s harder now. You can’t just show up at the party. You have to innovate and have something special.”

At last week’s Consumer Electronics Show in Las Vegas, devices on display from Intel and others underscored the PC industry’s plan to bet more on convertible laptops.

Lenovo’s North America President Gerry Smith told Reuters last week that over the holidays he sold out of the company’s “Yoga”, a laptop with a screen that flips back behind its keyboard, and the “ThinkPad Twist”, another lightweight laptop with a swiveling screen.

Intel itself showed off a hybrid prototype laptop dubbed “North Cape”, housed in a thin tablet screen that attaches magnetically to a low-profile keyboard. And Asus showed a hefty 18-inch, all-in-one Windows 8 PC that converts to a tablet running Google’s Android operating system.

Lenovo and Asus, which have both won positive reviews for their devices in recent months, increased their PC shipments by 14 percent and 17 percent respectively last year, according to Gartner.

“The number of unique systems that our partners have developed for Windows has almost doubled since launch. That gives an indication of how much innovation is going into the PC market,” Tami Reller, chief financial officer of Microsoft’s Windows unit, told Reuters.

FINGER-POINTING

To be sure, hybrids with detachable or twistable screens do not yet account for a significant proportion of global PC sales, and consumers still need to be sold on their benefits.

Previous attempts by PC makers to reinvigorate the market have had limited success. Pushed by Intel, manufacturers launched a series of slimmed down laptops early last year with features popular on tablets, like solid-state memory.

They were too expensive, often at more than $ 1,000 apiece, and failed to arrest the PC decline.

Microsoft’s Windows 8 launch in October brought touchscreen features but failed to spark a resurgence in PC sales many manufacturers had hoped for. A round of finger-pointing ensued, with PC and chip executives blaming a shortage of touchscreen components and others saying it was the manufacturers that sharply underestimated consumer demand for touch devices.

Regardless, the entire PC ecosystem is onboard for 2013. Almost half of the Windows laptops rolled out this year may have touch screens. Of those, most will be in convertible form, according to IDC analyst David Daoud.

Further blurring the distinction between kinds of devices, about a quarter of upcoming Windows 8 gadgets will be tablets that can easily act as laptops with the help of keyboard accessories, he added.

But buyers may have to wait until the second half of the year to see many of them.

“The most likely scenario today is for the industry to have these products ready for the back-to-school season,” Daoud said.

(Reporting and writing by Noel Randewich; Additional reporting by Poornima Gupta and Bill Rigby in Seattle; Editing by Tim Dobbyn)

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Despite Divorce, Bethenny Frankel 'Smiling' in Beverly Hills

Caught in the Act

UPDATED
01/17/2013 at 06:00 AM EST

• Originally published 01/17/2013 at 06:00 AM EST

Bethenny Frankel

David Tonnessen/Pacific Coast News

As she works through divorce proceedings, Bethenny Frankel was spotted at Spago in Beverly Hills on Monday night.

The Skinnygirl mogul "sipped Patrón at a cocktail table in the bar area with a gentleman that looked to be in his mid-50s," an onlooker tells PEOPLE.

But it was only "tequila and conversation" for the duo, who didn't order anything off the dinner menu.

Despite her very public split from husband Jason Hoppy, Frankel's spirits seemed high. "She was laughing and smiling and even took pictures with guests at the bar," the source adds.

– Dahvi Shira

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Large study confirms flu vaccine safe in pregnancy

NEW YORK (AP) — A large study offers reassuring news for pregnant women: It's safe to get a flu shot.

The research found no evidence that the vaccine increases the risk of losing a fetus, and may prevent some deaths. Getting the flu while pregnant makes fetal death more likely, the Norwegian research showed.

The flu vaccine has long been considered safe for pregnant women and their fetus. U.S. health officials began recommending flu shots for them more than five decades ago, following a higher death rate in pregnant women during a flu pandemic in the late 1950s.

But the study is perhaps the largest look at the safety and value of flu vaccination during pregnancy, experts say.

"This is the kind of information we need to provide our patients when discussing that flu vaccine is important for everyone, particularly for pregnant women," said Dr. Geeta Swamy, a researcher who studies vaccines and pregnant women at Duke University Medical Center.

The study was released by the New England Journal of Medicine on Wednesday as the United States and Europe suffer through an early and intense flu season. A U.S. obstetricians group this week reminded members that it's not too late for their pregnant patients to get vaccinated.

The new study was led by the Norwegian Institute of Public Health. It tracked pregnancies in Norway in 2009 and 2010 during an international epidemic of a new swine flu strain.

Before 2009, pregnant women in Norway were not routinely advised to get flu shots. But during the pandemic, vaccinations against the new strain were recommended for those in their second or third trimester.

The study focused on more than 113,000 pregnancies. Of those, 492 ended in the death of the fetus. The researchers calculated that the risk of fetal death was nearly twice as high for women who weren't vaccinated as it was in vaccinated mothers.

U.S. flu vaccination rates for pregnant women grew in the wake of the 2009 swine flu pandemic, from less than 15 percent to about 50 percent. But health officials say those rates need to be higher to protect newborns as well. Infants can't be vaccinated until 6 months, but studies have shown they pick up some protection if their mothers got the annual shot, experts say.

Because some drugs and vaccines can be harmful to a fetus, there is a long-standing concern about giving any medicine to a pregnant woman, experts acknowledged. But this study should ease any worries about the flu shot, said Dr. Denise Jamieson of the Centers for Disease Control and Prevention.

"The vaccine is safe," she said.

___

Online:

Medical journal: http://www.nejm.org

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Futures signal mixed Wall Street open

LONDON (Reuters) - U.S. stock futures pointed to a mixed open on Wall Street on Thursday, with futures for the S&P 500 rising 0.1 percent, Dow Jones futures down 0.2 percent and Nasdaq 100 futures falling 0.1 percent.

Airlines scrambled on Thursday to rearrange flights as Europe, Japan and India joined the United States in grounding Boeing Co's 787 Dreamliner passenger jets while battery-related problems are investigated.

Earnings reports from major U.S. companies such as Citigroup , Intel , Bank of America and BlackRock , due later in the day, will be scrutinized for hints about the market's near-term direction.

First-time claims for jobless benefits for the week ended January 12 are due at 1330 GMT. Economists forecast a total of 365,000 new filings, compared with 371,000 in the previous week.

The Commerce Department releases housing starts and permits for December at 1330 GMT. Economists in a Reuters survey forecast a total of 903,000 permits in December, compared with 900,000 in the previous month.

Top executives at Goldman Sachs have been considering deep cuts to staffing levels and pay for at least two years, but feared too many layoffs would leave the firm unprepared for an eventual pickup in business, people familiar with the bank said.

Shares in Dutch telecoms company KPN rose more than 4 percent on Thursday after a report that U.S. peer AT&T is looking at an acquisition in Europe, including KPN and UK carrier Everything Everywhere.

AT&T is considering buying a telecoms company in Europe to offset growth constraints in its home market, the Wall Street Journal reported, citing unnamed people familiar with the company's thinking.

Taiwan Semiconductor Manufacturing Co Ltd reported a 32 percent rise in fourth-quarter profit as its cutting-edge technology keeps it ahead of rivals in the mobile gadget boom.

Philadelphia Federal Reserve Bank releases its January business activity survey at 1500 GMT. Economists forecast a reading of 5.8, versus 4.6 in December.

The pan-European FTSEurofirst 300 index <.fteu3> was flat in morning trading on Thursday.

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.

The Dow Jones industrial average <.dji> was down 23.66 points, or 0.17 percent, at 13,511.23 on Wednesday. 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.

(Reporting by Atul Prakash; Editing by Catherine Evans)

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Syrian army on offensive in Aleppo after university blast

BEIRUT (Reuters) - Syrian armed forces launched a renewed offensive in the northern city of Aleppo on Wednesday, state media said, a day after 87 people were killed in explosions at the city's university.

The state news agency SANA said the military had killed dozens of "terrorists" - a term Damascus uses for rebels trying to overthrow President Bashar al-Assad - in the new fighting.

Reuters cannot independently verify reports due to media restrictions in Syria.

"The Armed Forces carried out several special operations against the mercenary terrorists in Aleppo and its countryside, inflicting heavy losses upon them in several areas," SANA said.

Aleppo is split roughly in half between government and rebel forces. SANA said dozens of "terrorists" were killed in the rebel strongholds of Sukari, Bab al-Hadeed and Bustan al-Qasr.

Government forces also killed militants in al-Laramon, a area of Aleppo from which Damascus says two rockets were fired into the University of Aleppo on Tuesday, it added.

If confirmed, the government's report of a rocket attack would suggest rebels in the area had been able to obtain and deploy more powerful weapons than previously used.

The Syrian Observatory for Human Rights, a Britain-based monitoring group, said 87 people were killed and dozens wounded in the explosions, but it could not identify the source of the blasts. It said the toll could rise to more than 100 as there were still body parts that were unaccounted for.

State television showed a body lying on the street and burning cars. An entire facade of a multi-story university building had crumbled and cars were overturned. An interior shot of a corridor showed that the ceiling had caved in.

Amateur video footage showed students carrying books out of the university after one of the explosions, walking quickly away from rising smoke. The camera then shakes to the sound of another explosion and people begin to run.

Syria has been plunged into bloodshed since a violent government crackdown in early 2011 on peaceful demonstrations for democratic reform which turned the unrest into an armed insurgency bent on overthrowing Assad.

Each side in the 22-month-old conflict blamed the other for Tuesday's blasts at the university, located in a government-held area of Syria's most populous city.

Some activists in Aleppo said a government air strike caused the explosions, while state television accused terrorists of firing two rockets at the university. A rebel fighter said the blasts appeared to have been caused by surface-to-surface missiles.

The nearest rebel-controlled area, Bustan al-Qasr, is more than a mile away from the university.

The Observatory said rebel sources on the ground reported they were fighting with government forces in the early hours of Wednesday around Bustan al-Qasr, implying a renewed push by government forces to expel the insurgents.

(Reporting by Oliver Holmes; Editing by Jon Boyle)

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“Banshee” head Greg Yaitanes: secrets galore, but hold the olives

NEW YORK (TheWrap.com) – Like many TV creators, Greg Yaitanes isn’t crazy about the alternate identities people adopt online – and the Emmy-winning former “House” executive producer gets to explore anonymity and becoming someone else in the new Cinemax series “Banshee.”

“I’ve been harassed by ‘House’ Twitter fans for years now. I’m always kind of surprised at people’s level of saying something that they would never say to my face – that they would never say to another human being’s face,” he said.

Not that Yaitanes has a problem with social media – he was an early investor in Twitter, and used a litany of apps and new technology to make his pulpy drama, executive produced by Alan Ball, as scrappy as a tech startup.

With “Banshee,” Yaitanes gets to explore “the best of the wish fulfillment that people have of reinventing themselves or being able to disappear. In a way, all the characters are reinventing themselves.”

Those characters include a thief who steals the identity of the sheriff in Banshee, Pa., his cat burglar ex-girlfriend, who has eked out a new life as a homemaker, and the villain, a man who becomes a criminal mastermind after he is ousted from his Amish community. Then there’s the identity thief – Job – who keeps changing which gender he appears to be.

We talked with Yaitanes about how he made his show look expensive, how to describe Job, and the importance of counting olives.

The Wrap: The show looks expensive – starting with a sequence in New York in which a bus falls over and skids through an intersection. Can you talk about how you kept costs down?

Yaitanes: It’s a way of thinking from working with startups. They’re often one, two, three man operations when they first operate. Twitter was an example of that. You have to look at what is the simplest, most effective way to do this, to deliver to the consumer. We had a very specific box that “Banshee” could be made in, in terms of our budget.

The first thing that came to mind was what I call the “one olive.” The one olive is a story that originates with American Airlines back in the ’80s, when American Airlines took one olive out of their inflight meal – and saved $ 40,000. It’s all about challenging and making everybody their own producer and their own CEO and asking, ‘What is that one thing I can take out that either saves money or makes us that more efficient over the course of 100 days?’

Maybe $ 1,000 isn’t particularly exciting, but when you do it across a season, that’s an official day of shooting. That’s seven more minutes of content that we can get done that day.

We just looked for all these small ways that I feel put nearly an episode’s worth of saving back into the show, so we could make our show more robust and make the action scenes that much bigger and get the actor that we really want.

These are things that the audience gets to enjoy.

What are some of the cost-saving measures?

We also tried to find our olives by using the apps and technology that’s right in front of us, like Skype and Facetime and iChat so we don’t have to fly everybody around? I think probably 75 percent of the crew including directors were hired through some form of video conferencing. You saw the pilot, with the bus crash. We scouted all of that via Google Streetview. We could find blocks and circle around and look up and down and did all the legwork until we absolutely had to go to New York. So we saved on those flights, those hotels, those per diems.

You’ve invested in so many social media sites. Is there something that want to say on the show about the changing nature of identity when we can all take on different personalities online? Your main character, Lucas Hood (Antony Starr) actually takes on another person’s life.

Lucas does the most obvious adoption. A lot of people’s secrets and new identities and new lives are happening before the series starts, which is why we’ve shot an entire online series with our cast.

One of those characters, Job, is constantly in flux – even in terms of whether he appears male or female. Is he transgendered?

He’s straddling this line of androgyny. We specifically don’t want to answer questions about Job’s sexuality… he is a chameleon. He has something that he can tap into depending on his situation. By the time you get to the finale you won’t believe where Job goes.

Internet News Headlines – Yahoo! News

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GLAAD Award Nominees: Modern Family, Glee, The New Normal Make the Grade

By Stephen M. Silverman

01/16/2013 at 06:00 AM EST

Adam Lambert (left) and Frank Ocean

David Livingston/Getty; McCarten/PictureGroup

Last July when emerging R&B star Frank Ocean published an emotional letter detailing an early love affair with a man, his "coming out" story made headlines in the hip-hop world and beyond.

Now, the Grammy-nominated songwriter is being honored by GLAAD, the nation's lesbian, gay, bisexual and transgender media advocacy and anti-defamation organization.

Ocean is among the 120 nominees for the 24th Annual GLAAD Media Awards, the organization announced early Wednesday morning. He is being recognized for his critically-lauded Channel Orange album.

Other musician nominees include Adam Lambert (for his album Tresspassing).

Among the other familiar nominee names in the mix of 25 English-language and 33-Spanish language categories are: TV's Modern Family, Smash, Glee, The New Normal, Anderson Cooper 360, The Amazing Race and The Daily Show. For motion pictures, The Best Exotic Marigold Hotel, The Perks of Being a Wallflower and ParaNorman – plus the documentaries How to Survive a Plague and Vito – are nominated.

Also being recognized: PEOPLE (for outstanding magazine coverage overall) and PEOPLE En Español – for two magazine articles: "Amor genuine," by Cristina Saralegui, and "La lucha de Bamby," by Isis Sauceda.

For a complete list of nominees, click here.

"Images and stories from the LGBT community continue to push support for equality to historic levels," GLAAD president Herndon Graddick said in a statement with the announcement of the nominees. "Now more than ever, viewers not only accept gay and transgender characters and plot lines, they expect them – just as they both accept and expect LGBT people to be a valuable part of their everyday lives."

The GLAAD Media Awards ceremonies will be held in New York on March 16, at the New York Marriott Marquis; in Los Angeles on April 20, at the JW Marriott; and in San Francisco on May 11, at the Hilton Union Square.

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ER visits tied to energy drinks double since 2007

SAN FRANCISCO (AP) — A new government survey suggests the number of people seeking emergency treatment after consuming energy drinks has doubled nationwide during the past four years, the same period in which the supercharged drink industry has surged in popularity in convenience stores, bars and on college campuses.

From 2007 to 2011, the government estimates the number of emergency room visits involving the neon-labeled beverages shot up from about 10,000 to more than 20,000. Most of those cases involved teens or young adults, according to a survey of the nation's hospitals released late last week by the Substance Abuse and Mental Health Services Administration.

The report doesn't specify which symptoms brought people to the emergency room but calls energy drink consumption a "rising public health problem" that can cause insomnia, nervousness, headache, fast heartbeat and seizures that are severe enough to require emergency care.

Several emergency physicians said they had seen a clear uptick in the number of patients suffering from irregular heartbeats, anxiety and heart attacks who said they had recently downed an energy drink.

More than half of the patients considered in the survey who wound up in the emergency room told doctors they had downed only energy drinks. In 2011, about 42 percent of the cases involved energy drinks in combination with alcohol or drugs, such as the stimulants Adderall or Ritalin.

"A lot of people don't realize the strength of these things. I had someone come in recently who had drunk three energy drinks in an hour, which is the equivalent of 15 cups of coffee," said Howard Mell, an emergency physician in the suburbs of Cleveland, who serves as a spokesman for the American College of Emergency Physicians. "Essentially he gave himself a stress test and thankfully he passed. But if he had a weak heart or suffered from coronary disease and didn't know it, this could have precipitated very bad things."

The findings came as concerns over energy drinks have intensified following reports last fall of 18 deaths possibly tied to the drinks — including a 14-year-old Maryland girl who died after drinking two large cans of Monster Energy drinks. Monster does not believe its products were responsible for the death.

Two senators are calling for the Food and Drug Administration to investigate safety concerns about energy drinks and their ingredients.

The energy drink industry says its drinks are safe and there is no proof linking its products to the adverse reactions.

Late last year, the FDA asked the U.S. Health and Human Services to update the figures its substance abuse research arm compiles about emergency room visits tied to energy drinks.

The Substance Abuse and Mental Health Services Administration's survey was based on responses it receives from about 230 hospitals each year, a representative sample of about 5 percent of emergency departments nationwide. The agency then uses those responses to estimate the number of energy drink-related emergency department visits nationwide.

The more than 20,000 cases estimated for 2011 represent a small portion of the annual 136 million emergency room visits tracked by Centers for Disease Control and Prevention.

The FDA said it was considering the findings and pressing for more details as it undertakes a broad review of the safety of energy drinks and related ingredients this spring.

"We will examine this additional information ... as a part of our ongoing investigation into potential safety issues surrounding the use of energy-drink products," FDA spokeswoman Shelly Burgess said in a statement.

Beverage manufacturers fired back at the survey, saying the statistics were misleading and taken out of context.

"This report does not share information about the overall health of those who may have consumed energy drinks, or what symptoms brought them to the ER in the first place," the American Beverage Association said in a statement. "There is no basis by which to understand the overall caffeine intake of any of these individuals — from all sources."

Energy drinks remain a small part of the carbonated soft drinks market, representing only 3.3 percent of sales volume, according to the industry tracker Beverage Digest. Even as soda consumption has flagged in recent years, energy drinks sales are growing rapidly.

In 2011, sales volume for energy drinks rose by almost 17 percent, with the top three companies — Monster, Red Bull and Rockstar — each logging double-digit gains, Beverage Digest found. The drinks are often marketed at sporting events that are popular among younger people such as surfing and skateboarding.

From 2007 to 2011, the most recent year for which data was available, people from 18 to 25 were the most common age group seeking emergency treatment for energy drink-related reactions, the report found.

"We were really concerned to find that in four years the number of emergency department visits almost doubled, and these drinks are largely marketed to younger people," said Al Woodward, a senior statistical analyst with the Substance Abuse and Mental Health Services Administration who worked on the report.

Emergency physician Steve Sun said he had seen an increase in such cases at the Catholic hospital where he works on the edge of San Francisco's Golden Gate Park.

"I saw one young man who had mixed energy drinks with alcohol and we had to admit him to the hospital because he was so dehydrated he had renal failure," Sun said. "Because he was young he did well in the hospital, but if another patient had had underlying coronary artery disease, it could have led to a heart attack."

___

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Stock index futures point to lower open on Wall Street, Boeing in focus

LONDON (Reuters) - U.S. stock index futures pointed to a lower open on Wall Street on Wednesday, with futures for the S&P 500 down 0.3 percent, Dow Jones futures off 0.2 percent and the Nasdaq 100 contract 0.1 percent lower at 0922 GMT.

Banks <.sx7p> will be in focus, with results due from several big names, including BNY Mellon, Goldman Sachs and JPMorgan Chase & Co.

Of the S&P 500 <.spx> companies that have reported to date, 25 percent have missed fourth-quarter earnings forecasts and 29 percent have undershot on revenues, according to Thomson Reuters StarMine data.

Shares in General Motors fell after the bell on Tuesday after the automaker said it expects operating profit to rise "modestly" this year - a comment that is expected to prompt analysts to downgrade their forecasts.

Boeing will be in focus on concerns about the safety of its Dreamliner. Japan's two leading airlines grounded their fleets of 787s on Wednesday after one of the passenger jets made an emergency landing.

India will decide on whether to ground national carrier Air India's Dreamliner jets after the U.S. company submits a report on the aircraft's safety.

Global growth concerns remain in the spotlight after the World Bank slashed its economic forecasts for developed nations this year.

A plunge in European car sales in December added to the gloom.

U.S. December inflation figures are due at 1330 GMT, followed by industrial output at 1415 GMT.

The Dow Jones industrial average <.dji> added 27.57 points, or 0.20 percent, to 13,534.89 on Tuesday, while the S&P 500 <.spx> gained 1.66 points, or 0.11 percent, to 1,472.34 after stronger-than-expected retail data.

Tech heavyweight Apple dragged on the Nasdaq for a third day <.ixic>, with the index falling 0.2 percent.

Major European indexes edged lower on Wednesday, after recent gains took them to multi-month highs <.fteu3><.eu>. Profit taking also pushed Japan's Nikkei benchmark to its biggest one-day drop in eight months <.n225>.

(Reporting By Toni Vorobyova; Editing by Susan Fenton)

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France keeps up Mali air strikes, African troop plan advances

BAMAKO (Reuters) - France kept up its air strikes against Islamist rebels in Mali as plans to deploy African troops gathered pace on Tuesday amid concerns that delays could endanger a wider mission to dislodge al Qaeda and its allies.

France has already poured hundreds of troops into Mali and carried out days of air strikes since Friday in a vast desert area seized last year by an Islamist alliance that combines al Qaeda's north African wing AQIM with Mali's home-grown MUJWA and Ansar Dine rebel groups.

Western and regional powers are concerned the insurgents will use Mali's north as a launchpad for international attacks.

West African defense chiefs were to meet in Bamako on Tuesday to approve plans to speed up the deployment of 3,300 regional troops foreseen in a U.N.-backed intervention plan to be led by Africans.

Speaking from a French military base in Abu Dhabi at the start of a day-long visit to the United Arab Emirates, President Francois Hollande said French forces in Mali had carried out further strikes overnight "which hit their targets."

"We will continue the deployment of forces on the ground and in the air," Hollande said. "We have 750 troops deployed at the moment and that will keep increasing so that as quickly as possible we can hand over to the Africans."

He saw the African troop deployment taking "a good week".

France plans to field a total 2,500 soldiers in its former colony to bolster the Malian army and work with the intervention force provided by the ECOWAS grouping of West African states.

Foreign Minister Laurent Fabius - accompanying Hollande on a visit aimed at firming up trade relations and making progress on a possible sale of 60 French Rafale fighter jets - said he was confident Gulf Arab states would also help the Mali campaign.

Fabius said there would be a meeting of donors for the Mali operation most likely in Addis Ababa at the end of January.

He predicted the current level of the French involvement in Mali would go on for "a matter of weeks".

ECOWAS mission head in Bamako Aboudou Toure Cheaka said the West African troops would be on the ground in a week. Their immediate mission would be to help stop the rebel advance while preparations for a full intervention plan continued.

The original timetable for the 3,300-strong U.N.-sanctioned African force - backed by western logistics, money and intelligence services - did not initially foresee full deployment before September due to logistical constraints.

Senegal, Burkina Faso, Niger, Nigeria and Guinea have all offered troops. But regional powerhouse Nigeria, which is due to lead the mission, has cautioned that even if some troops arrive in Mali soon, training will take more time.

The plan is being fast-tracked after a plea for help by Mali's government after mobile columns of Islamist fighters last week threatened the central garrison towns of Mopti and Sevare, with its key airport.

"SAFEGUARD MALI"

French Prime Minister Jean-Marc Ayrault said France's goals were to stop the Islamist rebels, to "safeguard the existence of Mali" and pave the way for the African-led military operation.

U.S. officials said Washington was sharing information with French forces in Mali and considering providing logistics, surveillance and airlift capability.

"We have made a commitment that al Qaeda is not going to find anyplace to hide," U.S. Defense Secretary Leon Panetta told reporters as he began a visit to Europe.

As French aircraft bombarded mobile columns of Islamist fighters, other insurgents launched a counter-attack further to the south, dislodging government forces from the town of Diabaly, 350 km (220 miles) from Bamako.

French intervention has raised the risk for eight French hostages held by al Qaeda allies in the Sahara and for 30,000 French expatriates living in neighboring, mostly Muslim states. Concerned about reprisals at home, France has tightened security at public buildings and on public transport.

The U.N. said an estimated 30,000 people had fled the latest fighting in Mali, joining more than 200,000 already displaced.

U.N. Secretary-General Ban Ki-moon on Monday welcomed the French-led military intervention in Mali and voiced the hope that it would halt the Islamist assault.

Amnesty International said at least six civilians were killed in recent fighting in the town of Konna, where French aircraft had earlier bombarded rebel positions, and called on both sides to spare non-combatants.

France, which has repeatedly said it has abandoned its role as the policeman of its former African colonies, is among the toughest proponents of a speedier deployment of the African troops, and convened a U.N. Security Council meeting Monday to discuss the crisis.

French U.N. Ambassador Gerard Araud told reporters after the meeting that the U.S., Canada, Belgium, Denmark and Germany had also offered logistical support for France's Mali operation.

"I felt that all the members of the Security Council were expressing their support (for) and understanding of the French decision," Araud told reporters.

No Europeans or other African Union members will be allowed in the defense chiefs meeting in Bamako on Tuesday, a western diplomat told Reuters, requesting not to be named.

"They don't want any French pressure at the meeting," the diplomat said.

(Additional reporting by Elizabeth Pineau and Raissa Kasolowsky in Abu Dhabi; Michelle Nichols and Louis Charbonneau at the United Nations; Richard Valdmanis in Dakar, Brian Love in Paris and David Alexander in Lisbon; Editing by Pascal Fletcher and Anna Willard)

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