Euro surges to 14-month high, Fed decision awaited


LONDON (Reuters) - The euro hit its highest level in over a year on Wednesday and shares, oil and metals were also on the rise, as confidence in the global economic outlook strengthened ahead of European data and the U.S. Federal Reserve's latest policy decision.


The Fed is expected to maintain asset buying at $85 billion a month when it concludes its meeting later and retain its commitment to hold interest rates near zero until unemployment falls to at least 6.5 percent.


European economic confidence data for January at 1000 GMT, ECB crisis loan repayments and Italy's sale of five and 10-year bonds will absorb most of investors' attention before then, as they look for further evidence of a pick-up in the region.


Share markets in London, Paris and Frankfurt opened little changed ahead of the data, leaving all eyes on a rally by the euro as it broke above $1.35 for the first time since December 2011.


Alongside the recent rebound in confidence in the euro zone, one of the drivers behind the recent spike has been the eagerness of banks to repay the crisis loans they took from the European Central Bank just over a year ago.


"It (the euro rise) is just a carry on with the current trend, risk is pretty healthy and equities are doing well," said Bank of Tokyo Mitsubishi strategist Derek Halpenny.


"The danger is European policymakers allow a spike (in euro and market rates) as a result of a removal of one of the principle support measures ... With the Fed and the BOJ still easing the euro is clearly the path of least resistance."


An earlier rise in Asian equities meant the MSCI world share index was up 0.2 percent at a new 21-month high as European trading gathered pace. U.S. stock futures suggested a cautious start on Wall Street.


Strong U.S. housing data on Tuesday and China's promising economic growth forecast for 2013 also supported the upbeat mood and raised expectations for robust demand for fuel and industrial commodities, underpinning oil prices and lifting copper.


In the bond market, German Bund futures opened lower as investors made room for a sale of long-dated German paper and braced for solid demand at an Italian debt auction.


Italy will offer up to 6.5 billion euros of bonds maturing in 2017 and 2022. Traders expect the sale to benefit from yield-hungry investors but flagged the risk of indigestion after a bout of buying in recent months that triggered a sharp rally.


"(The auction) probably (goes) alright but I don't think it trades well afterwards," one trader said.


(Additional reporting by Ana Nicolaci da Costa; Editing by Giles Elgood)



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Army says political tussle taking Egypt to brink


CAIRO, Egypt (Reuters) - Egypt's army chief said political strife was pushing the state to the brink of collapse - a stark warning from the institution that ran the country until last year, as Cairo's first elected leader struggles to contain bloody street violence.


General Abdel Fattah al-Sisi, appointed by President Mohamed Mursi last year to head the military, added in a statement on Tuesday that one of the primary goals of deploying troops in cities on the Suez Canal was to protect the waterway that is vital for Egypt's economy and world trade.


Sisi's comments, published on an official army Facebook page, followed 52 deaths in the past week of disorder and highlighted the mounting sense of crisis facing Egypt and its Islamist head of state who is struggling to fix a teetering economy and needs to prepare Egypt for a parliamentary election in a few months that is meant to cement the new democracy.


The comments are unlikely to mean the army wants to take back the power it held, in effect, for six decades since the end of the colonial period and in the interim period after the overthrow of former general Hosni Mubarak two years ago.


But it sends a powerful message that the Egypt's biggest institution, with a huge economic as well as security role and a recipient of massive direct U.S. subsidies, is worried about the fate of the nation after five days of turmoil in major cities.


"The continuation of the struggle of the different political forces ... over the management of state affairs could lead to the collapse of the state," said General Abdel Fattah al-Sisi, who is also defense minister in the government Mursi appointed.


He said the economic, political and social challenges facing the country represented "a real threat to the security of Egypt and the cohesiveness of the Egyptian state" and the army would remain "the solid and cohesive block" on which the state rests.


Sisi was appointed by Mursi after the army handed over power to the new president in June. Mursi sacked Field Marshal Hussein Tantawi, who had been in charge of Egypt during the transition and who had also been Mubarak's defense minister for 20 years.


Political opponents spurned a call by Mursi for talks on Monday to try to end the violence. Instead, huge crowds of protesters took to the streets in Cairo and Alexandria, and in the three Suez Canal cities - Port Said, Ismailia and Suez - where Mursi on Sunday imposed emergency rule and a curfew.


"DOWN, DOWN MURSI"


Residents in the three canal cities demonstrated overnight in defiance of the curfew. At least two men died in fighting in Port Said, raising to at least 42 people who have now been killed there, most of them by gunshot wounds.


Protests first flared to mark the second anniversary of the uprising that erupted on January 25, 2011 and toppled Mubarak 18 days later. They have been exacerbated by riots in Port Said by residents enraged by a court ruling sentencing several people from the city to death over deadly soccer violence last year.


"Down, down with Mohamed Mursi! Down, down with the state of emergency!" crowds shouted in Ismailia. In Cairo, flames lit up the night sky as protesters set vehicles ablaze.


The demonstrators accuse Mursi of betraying the two-year-old revolution. Mursi and his supporters in the Muslim Brotherhood accuse the protesters of seeking to overthrow Egypt's first ever democratically elected leader by undemocratic means.


Debris from days of unrest was strewn on the streets around Cairo's Tahrir Square, cauldron of the anti-Mubarak uprising.


Youths clambered over a burned-out police van. But unlike on previous mornings in the past few days, there was no early sign of renewed clashes with police.


Since the 2011 revolt, Islamists who Mubarak spent his 30-year rule suppressing have won two referendums, two parliamentary elections and a presidential vote.


But that legitimacy has been challenged by an opposition that accuses Mursi of imposing a new form of authoritarianism, and punctuated by repeated waves of unrest that have prevented a return to stability in the most populous Arab state.


U.S. UNEASE


The army has already been deployed in Port Said and Suez and the government agreed a measure to let soldiers arrest civilians as part of the state of emergency.


The instability has provoked unease in Western capitals, where officials worry about the direction of a powerful regional player that has a peace deal with Israel. The United States condemned the bloodshed and called on Egyptian leaders to make clear violence is not acceptable.


Mursi's invitation to rivals to hold a national dialogue with Islamists on Monday was spurned by the main opposition National Salvation Front coalition, which described it as "cosmetic".


The only liberal politician who attended, Ayman Nour, told Egypt's al-Hayat channel after the meeting ended late on Monday that attendees agreed to meet again in a week.


He said Mursi had promised to look at changes to the constitution requested by the opposition but did not consider the opposition's request for a government of national unity. Mursi's pushing through last month of a new constitution which critics see as too Islamic remains a bone of contention.


The president announced the emergency measures on television on Sunday. "The protection of the nation is the responsibility of everyone. We will confront any threat to its security with force and firmness within the remit of the law," Mursi said.


His demeanor infuriated his opponents, not least when he wagged a finger, imperiously, at the camera.


Some activists said Mursi's measures to try to impose control on the turbulent streets could backfire.


"Martial law, state of emergency and army arrests of civilians are not a solution to the crisis," said Ahmed Maher of the April 6 movement that helped galvanize the 2011 uprising. "All this will do is further provoke the youth. The solution has to be a political one that addresses the roots of the problem."


(Additional reporting by Yasmine Saleh and Omar Fahmy in Cairo, Yusri Mohamed in Ismailia and Abdelrahman Youssef in Alexandria; Writing by Edmund Blair; Editing by Alastair Macdonald)



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Anne Hathaway Says She 'Met A Lot of Bad Ones' Before Meeting Her Husband















01/29/2013 at 06:00 AM EST







Adam Shulman and Anne Hathaway


Christopher Polk/WireImage


Following the Screen Actors Guild Awards on Sunday, Anne Hathaway was feeling the love at an after party at the Four Seasons in Beverly Hills.

Hathaway – who won an Actor for her role in Les Misérables – was overheard saying, "I'm in a celebratory mood."

With a drink in her hand, Hathaway told friends that her engagement ring from husband Adam Shulman is her "prized possession" and that her wedding band "isn't bad either," an onlooker tells PEOPLE.

Hathaway – who, according to a source "was playing matchmaker all night" – was later overheard telling her friends that she "met a lot of bad ones" before meeting Shulman.

– Patrick Gomez


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Soldier talks about his new arms after transplant


BALTIMORE (AP) — A soldier who lost all four limbs in an Iraq roadside bombing has two new arms following a double transplant at Johns Hopkins Hospital.


Twenty-six-year-old Brendan Marrocco along with the surgeons who treated him will be at the Baltimore hospital on Tuesday to discuss the new limbs.


The transplants are only the seventh double-hand or double-arm transplant ever conducted in the United States.


The infantryman was injured by a roadside bomb in 2009. The New York City man also received bone marrow from the same dead donor. The approach is aimed at helping his body accept the new arms with minimal medication to prevent rejection.


The military is sponsoring operations like these to help wounded troops. About 300 have lost arms or hands in the wars.


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Stock index futures point to slightly lower start

LONDON (Reuters) - Stock index futures pointed to a slightly lower open on Wall Street on Tuesday, with futures for the S&P 500 down 0.1 percent.


Futures for the Dow Jones were flat, while contracts on the Nasdaq 100 shed 0.2 percent at 04.47 a.m. EST.


European shares edged up to hover near two-year highs, with strong earnings reports and a brightening economic outlook lifting sentiment, although technical factors could limit gains in the near term.


Yahoo Inc said it forecasts a modest uptick in revenue for the current year, sending shares in the Internet group 3 percent higher in after hours trade.


The second-largest U.S. automaker, Ford, is expected to report earnings per share of $0.26, up from $0.20 one year earlier, when it unveils fourth-quarter results at 1200 GMT. Ford, which is heavily reliant on its pickup trucks for profits, is bound to benefit from an uptick in construction this year.


Drugmaker Pfizer is expected to report EPS of $0.44, down from $0.50 in the previous year, on plunging U.S. sales of its Lipitor cholesterol drug - which is facing generic competition since November 2011 - and disappointing demand for its Prevnar vaccine against childhood infections.


Online retailer Amazon.com reports results for the holiday quarter. They were expected to show strong sales growth, tempered by little to no profit as the world's largest Internet retailer spent heavily on its Kindle mobile gadget platform, cloud computing service and its rapidly expanding chain of shipping warehouses.


Standard & Poor's releases its S&P Case/Shiller Home Price Index for November at 1400 GMT. Prices are expected to have continued their recovery, up 0.6 percent on a seasonally adjusted basis, pointing to a housing market that is mending.


The Conference Board releases January consumer confidence figures at 1500 GMT, expected to have fallen to 64 from 65.1. The market will be looking for any impact from the "fiscal cliff" debate or the payroll tax increases at the beginning of the year.


The Federal Reserve's Open Market Committee begins two days of meetings on interest rates. Traders speculated more solid U.S. growth indicators might see the Fed pull back on its aggressive easing stimulus, which has played a key role in fuelling an equity market rally since the second half of last year.


Elon Musk has long considered Tesla Motors Inc the bold, nimble answer to the auto industry's cautious culture. Now the electric car maker's top executive has extended his help to another industrial giant: Boeing Co .


Pentagon and industry officials said on Monday a manufacturing problem was the most likely cause of an engine failure that led to the grounding of all 25 Marine Corps versions of the Lockheed Martin Corp F-35 fighter jet 10 days ago.


The Dow Jones industrial average <.dji> closed down 14.05 points, or 0.10 percent, at 13,881.93 on Monday. The Standard & Poor's 500 Index <.spx> was down 2.78 points, or 0.18 percent, at 1,500.18. The Nasdaq Composite Index <.ixic> was up 4.59 points, or 0.15 percent, at 3,154.30.


(Reporting By Francesco Canepa; Editing by Catherine Evans)



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Egypt's Mursi declares emergency after clashes kill dozens


CAIRO (Reuters) - Egyptian President Mohamed Mursi declared a month-long state of emergency in three cities on the Suez Canal, where dozens of people have been killed in protests that have swept the nation and deepened a political crisis facing the Islamist leader.


Hundreds of demonstrators in Port Said, Suez and Ismailia turned out against the decision within moments of Mursi's announcement late on Sunday, which came after the death toll from protests and violence that erupted last week hit 49.


Mursi also called for a national dialogue with his rivals for later on Monday, but the early response from members of the main opposition coalition suggested they saw little point, saying the president only seemed to listen to his allies.


Most deaths have been in Port Said, where 40 were killed in just two days. Riots were sparked on Saturday when a court sentenced to death several people from the city on charges related to deadly rioting at a soccer match last year. Mourners at Sunday's funerals in the port, where guns are common, directed their anger at Mursi.


Violence in Egypt's cities has extended to a fifth day. Police fired volleys of teargas at dozens of youths hurling stones on Monday near Cairo's Tahrir Square, where opponents have camped for weeks to protest against Mursi, who they say betrayed the revolution that ousted Hosni Mubarak two years ago.


"We want to bring down the regime and end the state that is run by the Muslim Brotherhood," said Ibrahim Eissa, a 26-year-old cook, protecting his face from teargas wafting towards him from police lines near Tahrir, the cauldron of the 2011 revolt.


Propelled to power in a June election by the Brotherhood, Mursi's presidency has lurched through a series of political crises and violent demonstrations, compounding his task of shoring up a teetering economy and preparing for a parliamentary election to cement the new democracy in a few months.


"The protection of the nation is the responsibility of everyone. We will confront any threat to its security with force and firmness within the remit of the law," Mursi said, offering condolences to families of victims in the canal zone cities.


"WASTE OF TIME"


Appealing to his opponents, the president called for a national dialogue on Monday at 6 p.m. (1600 GMT), inviting a range of Islamist allies as well as liberal, leftist and other opposition groups and individuals to discuss the crisis.


The main opposition National Salvation Front coalition gathered in Cairo to discuss a response, but several members have already suggested they do not expect much from the meeting, raising the prospect of poor attendance.


"Unless the president takes responsibility for the bloody events and pledges to form a government of national salvation and a balanced committee to amend the constitution, any dialogue will be a waste of time," Mohamed ElBaradei, a prominent politician who founded the Constitution Party, wrote on Twitter.


Hamdeen Sabahy, a leftist politician and presidential candidate who is another leading member of the Front, said he would not attend Monday's meeting "unless the bloodshed stops and the people's demands are met".


Ahmed Said of the liberal Free Egyptians Party said Mursi's tone on Sunday night was more threatening than conciliatory. "Egypt is in danger and completely split," he told Reuters.


Egypt's politics has become deeply polarized. Although Islamists have swept to victory in a parliamentary poll and presidential vote, the disparate opposition has been united by Mursi's bid late last year to expand his powers and fast-track a constitution with an Islamist hue through a referendum.


Mursi's opponents accuse him of listening only to his Islamist friends and reneging on a pledge to be a president for all Egyptians. Islamists say their rivals want to overthrow by undemocratic means Egypt's first freely elected leader.


The Front has distanced itself from the latest flare-ups but said Mursi should have acted far sooner to impose extra security measures that would have ended the violence.


BLAMING MURSI


"Of course we feel the president is missing the real problem on the ground, which is his own policies," spokesman Khaled Dawoud said. "His call to implement emergency law was an expected move, given what is going on, namely thuggery and criminal actions."


Even in Tahrir, some protesters said violence and the high death toll in Port Said and other cities on the strategic Suez waterway meant there was little choice but to impose emergency law, although they, too, blamed Mursi for fury on the streets.


"They needed the state of emergency there because there is so much anger," said Mohamed Ahmed, 27, a protester walking briskly from a cloud of teargas spreading into Tahrir Square.


However, activists in the three cities affected have pledged to defy the curfew that will start at 9 p.m. (1900 GMT) each evening and last until 6 a.m. (0400 GMT).


Some opposition groups have also called for more protests on Monday, which marks the second anniversary of one of the bloodiest days in the revolution that erupted on January 25, 2011, and brought an end to Mubarak's iron rule 18 days later.


Rights activists said Mursi's declaration was a backward step for Egypt, which was under emergency law for Mubarak's entire 30-year rule. His police used the sweeping arrest provisions to muzzle dissent and round up opponents, including members of the Brotherhood and even Mursi himself.


Heba Morayef of Human Rights Watch in Cairo said the police, still hated by many Egyptians for their heavy-handed tactics under Mubarak, would once again have the right to arrest people "purely because they look suspicious", undermining efforts to create a more efficient and respected police force.


"It is a classic knee-jerk reaction to think the emergency law will help bring security," she said. "It gives so much discretion to the Ministry of Interior that it ends up causing more abuse, which in turn causes more anger."


(Additional reporting by Yasmine Saleh in Cairo and Yusri Mohamed in Ismailia; Editing by Will Waterman)



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Jennifer Lawrence Feeling Better Thanks to a 'Lot of Medication'









01/28/2013 at 07:00 AM EST



Jennifer Lawrence is on the mend.

The ailing Silver Linings Playbook starlet is finally feeling fine after a reported bout with pneumonia.

"I'm so much better," Lawrence, 22, told reporters backstage at Sunday's Screen Actors Guild Awards, where she won for lead female actor. "I'm a lot better. I've been on a lot of medication and got a really cool inhaler, so I'm doing much better."

The actress – who was "laying low all week," a source told PEOPLE – missed Saturday's Australian Academy of Cinema and Television Arts International Awards due to the illness, according to her costar Jacki Weaver.

"Poor Jen is really sick," Weaver reportedly said, after accepting an award for Lawrence. "She really is sick. She has pneumonia."

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CDC: Flu seems to level off except in the West


New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.


The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.


Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.


There is still vaccine available although it may be hard to find. The CDC has a website that can help.


___


CDC: http://www.cdc.gov/flu/


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Stock index futures signal slight gains


NEW YORK (Reuters) - Stock index futures were little changed on Monday, with investors reluctant to make big bets following a rally that took the S&P 500 above 1,500 for the first time in more than five years.


A strong start to the earnings season has boosted equities, with major averages rising for four straight weeks. The S&P has gained for eight straight days, its longest winning streak in eight years.


Over the past four weeks, the S&P has jumped 7.2 percent, suggesting markets may be vulnerable to a pullback if news disappoints.


Earnings will continue to be a primary focus, with Caterpillar Inc likely to be a market mover when it reports its latest quarterly financial results later on Monday. The heavy machinery maker could provide a clue into the state of the global industrial sector, which is closely tied to the pace of economic growth.


Yahoo Inc reports after the closing bell, and could face heightened expectations following strong results at Google Inc last week.


Thomson Reuters data through Friday showed that of the 147 S&P 500 companies that have reported earnings so far, 68 percent exceeded expectations. Since 1994, 62 percent of companies have topped expectations, while the average over the past four quarters stands at 65 percent.


S&P 500 futures rose 0.8 point and but were slightly below above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 7 points and Nasdaq 100 futures rose 0.2 point.


The S&P 500 closed at its highest since December 10, 2007, and the Dow ended at its highest since October 31, 2007.


Investors will also be looking to durable goods orders and pending home sales, both for December. Durable goods are due at 8:30 a.m. (1330 GMT) and are seen rising 1.8 percent. Pending home sales are seen rising 0.3 percent.


Last week, sales of new U.S. single-family homes fell in December but rose in 2012 to the highest level since 2009, a sign the U.S. housing market turned a corner last year.


Bargain hunters may look to Apple Inc for a bargain the first session after the tech giant lost its coveted title as the largest U.S. company by market capitalization to Exxon Mobil Corp . On Friday, Apple's market cap fell to $413 billion, down roughly $250 billion from its September peak. Apple's fall is about equal to the entire value of Google Inc .


U.S. stocks rose on Friday, lifted by strong results from such companies as Procter & Gamble . The rise put the S&P 500 about 4.1 percent away from its all-time closing high of 1,565.15 on October 9, 2007.


(Editing by W Simon)



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Egyptian youths, police clash in fourth day of violence


CAIRO (Reuters) - Police fired teargas at dozens of stone-throwing protesters in Cairo on Sunday in a fourth day of street clashes that have killed at least 42 people and compounded the challenges facing President Mohamed Mursi.


In the worst violence, security sources said 33 people died in Port Said on Saturday when protests erupted after a court sentenced 21 people, mostly from the city, to death for their role in a deadly stadium disaster last year.


Thousands of mourners joined funeral processions for the dead in Port Said on Sunday, a witness said by telephone, adding that he heard gunshots and the sound of emergency vehicle sirens. But there were no immediate reports of new casualties.


Mursi's opponents have also taken to the streets across Egypt since Thursday, accusing him and his Islamist allies of betraying the uprising that overthrew Hosni Mubarak in 2011.


"None of the revolution's goals have been realized," said Mohamed Sami, a protester in Cairo's Tahrir Square on Sunday.


"Prices are going up. The blood of Egyptians is being spilt in the streets because of neglect and corruption and because the Muslim Brotherhood is ruling Egypt for their own interests."


On a bridge close to Tahrir Square, youths hurled stones at police in riot gear who fired teargas to push them back towards the square, the cauldron of the uprising that erupted on January 25, 2011 and toppled Mubarak 18 days later.


The latest protests were initially timed to mark Friday's anniversary of that revolt.


The U.S. and British embassies, both close to Tahrir, said they were closed for public business on Sunday.


The violence adds to the daunting task facing Mursi as he tries to fix a beleaguered economy and cool tempers before a parliamentary election expected in the next few months which is supposed to cement Egypt's transition to democracy.


It has exposed a deep rift in the nation. Liberals and other opponents accuse Mursi of failing to deliver on economic promises and say he has not lived up to pledges to represent all Egyptians. His backers say the opposition is seeking to topple Egypt's first freely elected leader by undemocratic means.


DIVISIONS


The army, Egypt's interim ruler until Mursi's election in June, was sent back onto the streets to restore order in Port Said and Suez, another port city on the Suez Canal where at least eight people have been killed in clashes with police.


In Port Said, residents had reported gunshots overnight and shops and many workplaces were shut on Sunday. Residents said the city had been tense ahead of the funerals amid fears the burials could set off further violence.


Many Egyptians are frustrated by the regular escalations that have hurt the economy and their livelihoods.


"They are not revolutionaries protesting," said taxi driver Kamal Hassan, 30, referring to those gathered in Tahrir. "They are thugs destroying the country."


The National Defence Council, headed by Mursi, has called for a national dialogue to discuss political differences.


That offer has been cautiously welcomed by the opposition National Salvation Front. But the coalition has demanded a clear agenda and guarantees that any agreements will be implemented.


The Front, formed late last year when Mursi provoked protests and violence by expanding his powers and driving through an Islamist-tinged constitution, has threatened to boycott the parliamentary poll and to call for more protests if a list of demands is not met, including having an early presidential vote.


Egypt's transition has been blighted from the outset by political rows and turbulence on the streets that have driven investors out and kept many tourists away, starving the economy of vital sources of hard currency.


Egypt's defense minister who also heads the army, Abdel Fattah al-Sissi, called for the nation to stand together and said the military would not prevent peaceful protests. But he called on demonstrators to protect public property.


Clashes in Port Said erupted after a judge sentenced 21 men to death for involvement in 74 deaths at a soccer match on February 1, 2012 between Cairo's Al Ahly club and the local al-Masri team. Many of the victims were fans of the visiting team.


There were 73 defendants in the case. Those not sentenced on Saturday will face a verdict on March 9, the judge said.


Al Ahly fans cheered the verdict after threatening action if the death penalty was not meted out. But Port Said residents were furious that people from their city were held responsible.


(Additional reporting by Shaimaa Fayed in Cairo and Yusri Mohamed in Ismailia; Editing by Janet Lawrence)



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