'Fiscal cliff' deal talk, Apple lift US stocks at year-end

WASHINGTON: US markets closed out the year on Monday with a sharp jump on news that Congress was close to a deal to avert the fiscal cliff - but also on a 4.4 percent gain by market giant Apple.

The Dow Jones Industrial Average finished up 166.03 points (1.28 percent) at 13,104.14.

The broad-market S&P 500 gained 23.79 points (1.69 percent) at 1,426.19, while the tech-rich Nasdaq Composite surged 59.20 points (2.00 percent) to 3,019.51.

The gains reversed losses of the previous week when cliff worries were strong, and left the main indices with respectable gains for the year: 7.3 percent for the Dow, 13.4 percent for the S&P 500, and 15.9 percent for the Nasdaq.

With a midnight deadline looming to avert the sharp tax hikes and spending cuts aimed at slashing the fiscal deficit - but which could force a recession - the White House and congressional leaders said a deal was nigh that would mitigate the worst effects.

Nothing was certain: while the Senate was expected to pass the compromise legislation after it is finalised, possibly before the midnight Monday deadline, in the Republican-controlled House of Representatives, where resistance could be tougher, the vote would not be before Tuesday.

But the markets pushed higher in expectation that the immediate threat of more than $400 billion in tax increases would mostly be avoided.

"A compromise over taxes and spending would be an important step that supports economic growth in the year ahead," said Gary Thayer, strategist at Wells Fargo Advisors.

Major shares were nearly all in the green, led by Apple's surge.

The world's most valuable company by market capitalisation - an even $500 billion at the end of trade on Monday - was a major driver of the markets ruing the year. Even though its price at Monday's close, $532.17, was well below the year's high of $705.07, Apple shares still racked up a 25.8 percent gain for 2012.

Other major gainers on Monday included ExxonMobil, up 1.8 percent; General Electric (2.6 percent); and Caterpillar (2.8 percent).

Bond prices fell. The 10-year US Treasury yield rose to 1.76 percent from 1.71 percent Friday, while the 30-year moved to 2.95 percent from 2.88 percent. Bond prices and yields move inversely.

- AFP/de

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'Dystextia': Muddled texts can signal stroke, doctors say

An MRI of a pregnant woman's brain showed a stroke in the region of the brain connected to language.

(Credit:
Archives of Neurology)

Most of us have sent a garbled text or two (or dozens) in our day, and probably received more than our share as well. But such disoriented messages can in some rare cases move beyond the parlance of speedy modern-day communication to signal a health emergency, Harvard scientists caution.

In a study published online in the Archives of Neurology last week, the researchers coin the term "dystexia" to describe a confused text message that may indicate neurological dysfunction.

They cite the case of a 25-year-old pregnant woman who sent her husband a series of confusing messages about their baby's due date following a routine doctor's appointment.

Him: So what's the deal?
Her: Every where thinging days nighing
Her: Some is where!
Him: What the hell does that mean?
Him: You're not making any sense.

Concerned, the husband rushed his wife to the emergency room, where doctors determined she was having a stroke and suffering from dysphasia (also known as aphasia), an impairment of communication abilities common to brain injury and even complex migraine headaches.

Fortunately, the woman was treated and quickly recovered from the episode, with no evidence the stroke had harmed the fetus. The doctors credit her texts with being one piece of useful data that helped identify what type of stroke had hit.

"In this case, the availability of texting may have been particularly valuable, because the patient's hypophonia (a weak voice due to lack of coordination in the vocal muscles, in her case from a cold) likely prevented early detection of her dysphasia," Arvind Ravi, Vikram Rao, and Joshua Klein of Harvard Medical School wrote in the study, titled "Dystextia: Acute Stroke in the Modern Age."

They think there's a good chance text messages will increasingly play a similar role.

"The growing digital record will likely become an increasingly important means of identifying neurologic disease, particularly in patient populations that rely more heavily on written rather than spoken communication," the doctors wrote.

With so many distracted texters punching away while walking and driving, it's easy to joke that an SMS survey would show a preponderance of digerati suffering from a neurological impairment. Then there's autocorrect, which can "give the false impression of a language disorder," Klein told NPR. "In our patient's case, autocorrect had been previously disabled on her mobile device."

But while the Harvard doctors caution that dystextia alone is not necessarily cause for alarm, they do say it can be a useful sign when taken in the context of the sender's usual communication style, as well as other possible symptoms.

Indeed, earlier today, we reported on a similar case in which a British woman, upon feeling dizzy and beginning to fall unconscious, posted a disoriented call-for-help Facebook update that may have saved her life. She is also believed to have suffered a stroke, a condition where early diagnosis and management are considered key.

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With blockade eased, building materials enter Gaza

Thousands of tons of building materials, such as cement and steel, began crossing into the Gaza Strip on Saturday, Egyptian and Palestinian officials said, as Israel eased its five-year-old blockade on the Hamas-ruled territory.

Israel agreed to ease the blockade on Gaza under terms of a cease-fire that ended eight days of fierce fighting with Hamas last month, reports CBS News correspondent Robert Berger.

Trucks carrying gravel for private construction entered Gaza from Israel for the first time since Hamas seized control of the Palestinian territory.

Israel says 300 truckloads of goods are now entering Gaza each day.

The director of Gaza's border authority, Maher Abu Sabha, confirmed to The Associated Press that Qatar is paying for the raw materials that were bought in Egypt, to be transported through the Rafah border crossing.

The tiny oil-rich Gulf country has pledged support for 24 projects, worth some $425 million, to improve crumbling housing, schools, a hospital and roads in the Gaza Strip.

Under former President Hosni Mubarak, Israel's longtime ally, Egypt had poor relations with Hamas, and teamed up with Israel to blockade Gaza after the militant group seized power from its rival Fatah in 2007, two years after winning elections.

While Israel has eased the blockade in recent years, key restrictions remain in place on exports out of Gaza and the entry of badly-needed building materials and other goods into the territory.

New Egyptian President Mohammed Morsi, of Hamas' parent group the Muslim Brotherhood, has vowed not to abandon the Palestinians. Unlike Mubarak in late 2008, Morsi kept the border crossing with the Gaza Strip open for movement of people and humanitarian supplies during Israel's latest offensive in November. Gaza has yet to fully recover from the two offensives, which left buildings, homes and schools in rubble.

Morsi reiterated in a nationwide speech Saturday that the Palestinian issue is important to Egyptians.

Since the blockade was first imposed, an extensive network of tunnels between Egypt and Gaza have been ferrying everything from cars to food to essential household items to Palestinians.

While Egypt has launched periodic crackdowns on the tunnels, its security forces generally ignore the movement of construction materials, fuel and consumer goods through what Palestinians consider an underground lifeline.

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Cliffhanger: 'Major Setback' For Budget Talks

With less than two days remaining for Congress to reach a budget agreement that would avoid the so-called "fiscal cliff," ABC News has learned that negotiations have reached a "major setback."

According to Democratic sources the row was sparked when the GOP offered a proposal that included a new method of calculating entitlement benefits with inflation. Called the "chained consumer price index," or Chained CPI, the strategy has been criticized by some Democrats because it would lower cost of living increases for Social Security recipients.

"We thought it was mutually understood that it was off the table for a scaled-back deal," an aide said. "It's basically a poison pill."

President Obama has floated chained CPI in the past as part of a grand bargain, despite opposition from the AARP and within his own party.

Also in the Republican plan brought today: An extension of the current estate tax and no increase in the debt ceiling. Higher income earners would see their taxes increase, but at levels "well above $250,000," the sources said.

That "major setback" in the talks was evident on the floor of the Senate this afternoon.

"I'm concerned about the lack of urgency here, I think we all know we are running out of time," Senate Minority Leader Mitch McConnell, R-Ky., said, "I want everyone to know I am willing to get this done, but I need a dance partner."

J. Scott Applewhite/AP Photo

Sens. Charles Schumer and Jon Kyl on 'This Week' Watch Video

Fiscal Cliff Negotiations: Could Economy Slip Back into Recession? Watch Video

McConnell said he submitted the Republican's latest offer to Majority Leader Harry Reid, D-Nev., at 7:10 pm last night and was willing to work through the night. Reid promised to get back to him at 10 this morning, but has yet to do so.

Why have the Democrats not come up with a counteroffer? Reid admitted it himself moments later.

"At this stage we're not able to make a counteroffer," Reid said noting that he's had numerous conversations with Obama, but the two parties are still far apart on some big issues, "I don't have a counteroffer to make. Perhaps as the day wears on I will be able to."

McConnell said he believes there is no major issue that is the sticking point but rather, "the sticking point appears to be a willingness, an interest, or frankly the courage to close the deal."

Reid said the fiscal cliff negotiations are getting "real close" to falling apart completely.

"At some point in the negotiating process, it appears that there are things that stop us from moving forward," he said. "I hope we're not there but we're getting real close and that's why I still hold out hope that we can get something done. But I'm not overly optimistic but I am cautiously optimistic that we can get something done."

Reid said there are serious difference between the two sides, starting with Social Security. He said Democrats are not willing to cut Social Security benefits as part of a smaller, short-term agreement, as was proposed in the latest Republican proposal.

"We're not going to have any Social Security cuts. At this stage it just doesn't seem appropriate," he said. "We're open to discussion about entitlement reforms, but we're going to have to take a different direction. The present status will not work."

Reid said that even 36 hours before the country could go over the cliff, he remains "hopeful" but "realistic," about the prospects of reaching an agreement.

"The other side is intentionally demanding concessions they know we are not willing to make," he said.

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Body of India rape victim cremated in New Delhi

NEW DELHI (Reuters) - The body of a woman, whose gang rape provoked protests and rare national debate about violence against women in India, arrived back in New Delhi on Sunday and was cremated at a private ceremony.

Scuffles broke out in central Delhi between police and protesters who say the government is doing too little to protect women. But the 2,000-strong rally was confined to a single area, unlike last week when protests raged up throughout the capital.

Riot police manned barricades along streets leading to India Gate war memorial - a focal point for demonstrators - and, at another gathering point - the centuries-old Jantar Mantar - protesters held banners reading "We want justice!" and "Capital punishment".

Most sex crimes in India go unreported, many offenders go unpunished, and the wheels of justice turn slowly, according to social activists, who say that successive governments have done little to ensure the safety of women.

The unidentified 23-year-old victim of the December 16 gang rape died of her injuries on Saturday, prompting promises of action from a government that has struggled to respond to public outrage.

The medical student had suffered brain injuries and massive internal injuries in the attack and died in hospital in Singapore where she had been taken for treatment.

She and a male friend had been returning home from the cinema, media reports say, when six men on a bus beat them with metal rods and repeatedly raped the woman. The friend survived.

New Delhi has the highest number of sex crimes among India's major cities, with a rape reported on average every 18 hours, police figures show. Reported rape cases rose by nearly 17 percent between 2007 and 2011, according to government data.

Six suspects were charged with murder after her death and face the death penalty if convicted.

In Kolkata, one of India's four biggest cities, police said a man reported that his mother had been gang-raped and killed by a group of six men in a small town near the city on Saturday.

She was killed on her way home with her husband, a senior official said, and the attackers had thrown acid at the husband, raped and killed her, and dumped her body in a roadside pond.

Police declined to give any further details. One officer told Reuters no criminal investigation had yet been launched.

"MISOGYNY"

The leader of India's ruling Congress party, Sonia Gandhi, was seen arriving at the airport when the plane carrying the woman's body from Singapore landed and Prime Minister Mannmohan Singh's convoy was also there.

A Reuters correspondent saw family members who had been with her in Singapore take her body from the airport to their Delhi home in an ambulance with a police escort.

Her body was then taken to a crematorium and cremated. Media were kept away but a Reuters witness saw the woman's family, New Delhi's chief minister, Sheila Dikshit, and the junior home minister, R P N Singh, coming out of the crematorium.

The outcry over the attack caught the government off guard. It took a week for the prime minister to make a statement, infuriating many protesters. Last weekend they fought pitched battles with police.

Issues such as rape, dowry-related deaths and female infanticide rarely enter mainstream political discourse.

Analysts say the death of the woman dubbed "Amanat", an Urdu word meaning "treasure", by some Indian media could change that, though it is too early to say whether the protesters can sustain their momentum through to national elections due in 2014.

U.N. Secretary General Ban Ki-Moon added his voice to those demanding change, calling for "further steps and reforms to deter such crimes and bring perpetrators to justice".

Commentators and sociologists say the incident earlier this month has tapped into a deep well of frustration many Indians feel over what they see as weak governance and poor leadership on social issues.

Newspapers raised doubts about the commitment of both male politicians and the police to protecting women.

"Would the Indian political system and class have been so indifferent to the problem of sexual violence if half or even one-third of all legislators were women?" the Hindu newspaper asked.

The Indian Express said it was more complicated than realizing that the police force was understaffed and underpaid.

"It is geared towards dominating citizens rather than working for them, not to mention being open to influential interests," the newspaper said. "It reflects the misogyny around us, rather than actively fighting for the rights of citizens who happen to be female."

(Additional reporting by Ross Colvin and Diksha Madhokin New Delhi and Sujoy Dhar in Kolkata; Editing by Louise Ireland)

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E. Timor bids farewell to peacekeepers after 13 years

DILI: The UN ends its peacekeeping mission in East Timor Monday after 13 years of boots on the ground in Asia's youngest nation following a bloody transition to independence.

The mission, which saw the presence of some 1,500 UN troops and police, will take down its flag and send home the last of its peacekeepers, including five Portuguese officers, while a "liquidation team" of 79 will remain to tie up loose ends.

The mission began withdrawing troops in earnest in October when national police resumed responsibility for security, following the peaceful election of a new president and parliament.

"The Timorese people and its leaders have shown courage and unswerving resolve to overcome great challenges," United Nations Integrated Mission in Timor-Leste (UNMIT) chief Finn Reske-Nielsen said in a statement.

"Although there remains much work ahead, this is an historic moment in recognising the progress already made."

Reske-Nielsen said the withdrawal did not mark an end to the partnership between the UN and the country, officially called Timor-Leste, as "challenges still remain".

"As peacekeepers depart, we look forward to a new phase in this relationship focusing on social and economic development."

Observers say there is little indication that there will be renewed violence in the short term, but public institutions, including the police force and judiciary, remain weak.

There are also concerns that rampant poverty, high unemployment rates among the youth and a fast-growing population could lead to future unrest.

Government critics have highlighted the economy's heavy reliance on significant but depleting offshore oil and gas reserves that they say benefit urban Timorese more than the regional poor.

The UN played a key role in the birth of East Timor, organising the 1999 vote that ended Indonesia's 24-year occupation, in which around 183,000 people -- then a quarter of the population -- died from fighting, starvation or disease.

It oversaw East Timor until 2002, when an independent government took over.

UN peacekeepers streamed in again in 2006, when a mass desertion among the armed forces prompted fighting between military factions and police, and street violence left at least 37 people dead and tens of thousands displaced.

The only major violence since was a failed assassination attempt on then-President Jose Ramos-Horta in 2008.

- AFP/jc

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TwitPic snared by Google's malware detector

Google tags TwitPic as malware host.

(Credit:
Screenshot by Steven Musil/CNET)

Google's Web site malware checker identified TwitPic as a security threat today, a classification that has the popular photo site baffled.

Instead of the usual archiving and sharing tools they are used to, users attempting to visit TwitPic today are being greeted by a message informing them that the site has been blocked because "visiting it now is very likely to infect your computer with malware."

TwitPic denied on Twitter that it was a malware threat and said it was trying to contact Google to resolve the issue:

The Web giant's Safe Browsing API is designed to protect its users from malware and other attacks. Google said in June that it finds about 9,500 new malicious Web sites each day, either innocent ones that have been compromised by hackers or sites built specifically to distribute malware or for phishing. It also said it sends several million warnings every day to users of Chrome,
Firefox, and
Safari about malware and phishing on sites the users are about to visit.

CNET has contacted Google for comment on the action and will update this report when we learn more.

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Report: FAMU ignored rules before hazing death

TALLAHASSEE, Fla. The findings from a year-long investigation show that Florida A&M University officials failed to follow state laws and regulations on hazing.

A 32-page report released Friday concludes that the school lacked internal controls to prevent or detect hazing.

The report comes from the Florida Board of Governors, which oversees the state university system.

It ordered the investigation after the death of FAMU band drum major Robert Champion 13 months ago.

Champion died after he was beaten by fellow members of FAMU's famed Marching 100 band during a hazing ritual aboard a charter bus.

The report comes the same month that a regional accrediting organization placed the school on probation for 12 months. The university has one year to prove it is turning itself around or could have its accreditation revoked.

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Woman Tied to Gun in NY Firefighter Ambush

Authorities have charged a woman for allegedly providing a convicted killer with the Bushmaster AR-15 assault rifle he used when he ambushed four volunteer firefighters and an off-duty cop at a fire scene in upstate New York on Christmas Eve, federal prosecutors said.

Dawn Nguyen, 24, was arrested today after allegedly making an illegal purchase of the weapon used by William Spengler, 62, who set a house and car on fire in Webster, N.Y., the morning of Dec. 24, then shot dead two firemen and himself.

Nguyen is facing federal and state charges for acting as a "straw purchaser," buying the Bushmaster assault weapon as well as a shotgun with the intention of giving it to someone who cannot legally purchase it himself, said U.S. Attorney William J. Hochul.

Authorities accuse Nguyen of lying about being the sole owner of the weapons when making the purchase, a violation of federal law.

As an ex-convict, Spengler could not have legally owned or purchased the weapons himself.

"Dawn Nguyen told the seller of these weapons that she was to be true owner and buyer of these guns," said Hochul. "It is absolutely against federal law to provide any materially false information" on a firearms application.

As Hochul announced the charges, Nguyen was in a nearby court. It was unknown whether she entered a plea, and her lawyer could not be immediately contacted.

In addition to the rifle and shotgun, Spengler was found with a pistol, which authorities believe he used to kill himself by shooting himself in the head.

After apparently setting the fires, Spengler began shooting at emergency responders, officials have said. The attack left two firefighters and the gunman dead, and two other firefighters hospitalized.

Police officer John Ritter recieved shrapnel injuries at the scene but was discharged quickly from the hospital.

In a typewritten note found at the scene, Spengler revealed that he obtained the weapons from Nguyen, who for a time lived next door to him in Webster, Hochul said.

In that same note, Spengler pledged to see "how much of the neighborhood I can burn down." He said he wanted to "do what I like doing best, killing people."

Police said Spengler set a "trap" in order to ambush the first responders.

Firefighters Michael Chiapperini and Tomasz Kaczowka were gunned down. Two other firefighters, Joseph Hofsetter and Theodore Scardino, remained in guarded condition at a Rochester, N.Y. hospital.

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Syria opposition leader rejects Moscow invitation

ALEPPO PROVINCE, Syria/BEIRUT (Reuters) - Syria's opposition leader has rejected an invitation from Russia for peace talks, dealing another blow to international hopes that diplomacy can be resurrected to end a 21-month civil war.

Russia, President Bashar al-Assad's main international protector, said on Friday it had sent an invitation for a visit to Moaz Alkhatib, whose six-week-old National Coalition opposition group has been recognized by most Western and Arab states as the legitimate voice of the Syrian people.

But in an interview on Al Jazeera television, Alkhatib said he had already ruled out such a trip and wanted an apology from Moscow for its support for Assad.

"We have clearly said we will not go to Moscow. We could meet in an Arab country if there was a clear agenda," he said.

"Now we also want an apology from (Russian Foreign Minister Sergei) Lavrov because all this time he said that the people will decide their destiny, without foreign intervention. Russia is intervening and meanwhile all these massacres of the Syrian people have happened, treated as if they were a picnic."

"If we don't represent the Syrian people, why do they invite us?" Alkhatib said. "And if we do represent the Syrian people why doesn't Russia respond and issue a clear condemnation of the barbarity of the regime and make a clear call for Assad to step down? This is the basic condition for any negotiations."

With the rebels advancing steadily over the second half of 2012, diplomats have been searching for months for signs that Moscow's willingness to protect Assad is faltering.

So far Russia has stuck to its position that rebels must negotiate with Assad's government, which has ruled since his father seized power in a coup 42 years ago.

"I think a realistic and detailed assessment of the situation inside Syria will prompt reasonable opposition members to seek ways to start a political dialogue," Lavrov said on Friday.

That was immediately dismissed by the opposition: "The coalition is ready for political talks with anyone ... but it will not negotiate with the Assad regime," spokesman Walid al-Bunni told Reuters. "Everything can happen after the Assad regime and all its foundations have gone. After that we can sit down with all Syrians to set out the future."

BRAHIMI TO MOSCOW

Russia says it is behind the efforts of U.N. mediator Lakhdar Brahimi, fresh from a five-day trip to Damascus where he met Assad. Brahimi, due in Moscow for talks on Saturday, is touting a months-old peace plan for a transitional government.

That U.N. plan was long seen as a dead letter, foundering from the outset over the question of whether the transitional body would include Assad or his allies. Brahimi's predecessor, Kofi Annan, quit in frustration shortly after negotiating it.

But with rebels having seized control of large sections of the country in recent months, Russia and the United States have been working with Brahimi to resurrect the plan as the only internationally recognized diplomatic negotiating track.

Russia's Middle East envoy, Deputy Foreign Minister Mikhail Bogdanov, who announced the invitation to Alkhatib, said further talks were scheduled between the "three B's" - himself, Brahimi and U.S. Undersecretary of State William Burns.

Speaking in Damascus on Thursday, Brahimi called for a transitional government with "all the powers of the state", a phrase interpreted by the opposition as potentially signaling tolerance of Assad remaining in some ceremonial role.

But such a plan is anathema to the surging rebels, who now believe they can drive Assad out with a military victory, despite long being outgunned by his forces.

"We do not agree at all with Brahimi's initiative. We do not agree with anything Brahimi says," Colonel Abdel-Jabbar Oqaidi, who heads the rebels' military council in Aleppo province, told reporters at his headquarters there.

Oqaidi said the rebels want Assad and his allies tried in Syria for crimes. Assad himself says he will stay on and fight to the death if necessary.

In the rebel-held town of Kafranbel, demonstrators held up cartoons showing Brahimi speaking to a news conference with toilet bowls in front of him, in place of microphones. Banners denounced the U.N. envoy with obscenities in English.

DIPLOMATS IMPOTENT

Diplomacy has largely been irrelevant to the conflict so far, with Western states ruling out military intervention like the NATO bombing that helped topple Libya's Muammar Gaddafi last year, and Russia and China blocking U.N. action against Assad.

Meanwhile, the fighting has grown fiercer and more sectarian, with rebels mainly from the Sunni Muslim majority battling Assad's government and allied militia dominated by his Alawite sect, an offshoot of Shi'ite Islam.

Still, Western diplomats have repeatedly touted signs of a change in policy from Russia, which they hope could prove decisive, much as Moscow's withdrawal of support for Serbian leader Slobodan Milosevic heralded his downfall a decade ago.

Bogdanov said earlier this month that Assad's forces were losing ground and rebels might win the war, but Russia has since rowed back, with Lavrov last week reiterating Moscow's position that neither side could win through force.

Still, some Moscow-based analysts see the Kremlin coming to accept it must adapt to the possibility of rebel victory.

"As the situation changes on the battlefield, more incentives emerge for seeking a way to stop the military action and move to a phase of political regulation," said Dmitry Trenin, director of the Carnegie Moscow Center.

Meanwhile, on the ground the bloodshed that has killed some 44,000 people continues unabated. According to the pro-opposition Syrian Observatory for Human Rights, a monitoring group based in Britain, 150 people were killed on Thursday, a typical toll as fighting has escalated in recent months.

Government war planes bombarded the town of Assal al-Ward in the Qalamoun district of Damascus province for the first time, killing one person and wounding dozens, the observatory said.

In Aleppo, Syria's northern commercial hub, clashes took place between rebel fighters and army forces around an air force intelligence building in the Zahra quarter, a neighborhood that has been surrounded by rebels for weeks.

(Additional reporting by Omar Fahmy in Cairo, Dominic Evans in Beirut and Steve Gutterman and Alissa de Carbonnel in Moscow; Writing by Peter Graff; Editing by Giles Elgood)

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