Peace envoy Brahimi, Syria diplomats in Moscow talks


MOSCOW (Reuters) - Russia will host Syria peace envoy Lakhdar Brahimi this week after Syrian officials held talks in Moscow on Thursday as part of a diplomatic drive to try to agree a plan to end the 21-month-old conflict, Russia's foreign ministry said.


Talks have moved to Moscow, a long-time Syria ally, after a flurry of meetings Brahimi held in Damascus this week, but the international envoy has disclosed little about his negotiations.


Brahimi, who saw Syrian President Bashar al-Assad on Monday and is planning to hold a series of meetings with Syrian officials and dissidents this week, is trying to broker a peaceful transfer of power.


More than 44,000 Syrians have been killed in a revolt against four decades of Assad family rule, a conflict that began with peaceful protests in March last year, but which has descended into civil war.


Past peace efforts have floundered, with world powers divided over what has become an increasingly sectarian struggle between mostly Sunni Muslim rebels and Assad's security forces, drawn primarily from his Shi'ite-rooted Alawite minority.


Syrian Deputy Foreign Minister Faisal Makdad and an aide held talks for less than two hours on Thursday with Foreign Minister Sergei Lavrov and Mikhail Bogdanov, the Kremlin's envoy for Middle East affairs, but declined to disclose details of their visit.


Syrian and Lebanese sources said Makdad had been sent to Moscow to discuss the details of a peace plan proposed by Brahimi.


Foreign Ministry spokesman Alexander Lukashevich played down the idea that a specific new proposal was on the table in Moscow talks, at least one agreed by Moscow and Washington.


Asked about rumors of a Russian-American plan to resolve the conflict, he said: "There has not been and is no such plan."


'TRYING TO FEEL A WAY OUT'


"In our talks with Mr. Brahimi and with our American colleagues, we are trying to feel a way out of this situation on the basis of our common plan of action that was agreed in Geneva in June," Lukashevich told reporters at a weekly briefing.


Setting the scene for a planned Russian meeting with Brahimi on Saturday, he said, "We plan to discuss a range of issues linked to a political and diplomatic settlement in Syria, including Brahimi's efforts aimed at ending the violence and the launch of a comprehensive national dialogue."


World powers believe Russia, which has given Assad military and diplomatic aid to help him weather the uprising, has the ear of Syria's government and must be a key player in peace talks.


Moscow has tried to distance itself from Assad in recent months and has said it is not propping him up, but Lukashevich reiterated its stance that Assad's exit from power could not be a precondition for negotiations.


Setting such a condition, he said, would violate the terms of an agreement reached by world powers in Geneva on June 30 that called for a transitional government in Syria.


Lukashevich said Russia continued to believe there was "no alternative" to the Geneva Declaration and repeated accusations that the United States has reneged on it.


"Our American colleagues and some others ... have turned sharply from this position, by 180 degrees, supporting the opposition and conducting no dialogue with the government - putting the opposition in the mood for no dialogue with the authorities but for overthrowing the authorities," he said.


"The biggest disagreement ... is that one side thinks Assad should leave at the start of the process - that is the U.S. position, and the other thinks his departure should be a result of the process - that would be the Russian position," Dmitry Trenin, an analyst at the Moscow Carnegie Center, told Reuters.


But Trenin said battlefield gains made by the Syrian rebels were narrowing the gap between Moscow and Washington.


On Saturday, Lavrov said that neither side would win Syria's civil war and that Assad would not quit even if Russia or China told him to. Bogdanov had earlier acknowledged that Syrian rebels might win.


Lavrov has said this month that Russia had no intention of offering Assad asylum and would not act as messenger for other nations seeking his exit.


(Additional reporting by Nastassia Astrasheuskaya; Writing by Alissa de Carbonnel; Editing by Andrew Osborn)



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Stock futures edge up ahead of "cliff" talk resumption

NEW YORK (Reuters) - Stock index futures edged higher on Wednesday, indicating the S&P 500 may stem its worst two-day drop since mid-November, ahead of the resumption of "fiscal cliff" negotiations.


U.S. President Barack Obama is cutting short his Hawaiian holiday to leave for Washington on Wednesday to address the unfinished negotiations with Congress.


Obama is due to arrive in Washington on Thursday to resume talks on the cliff, a sharp rise in taxes and deep spending cuts due to begin on January 1 that could tip the U.S. economy into recession.


"This is what we've come to - the President might get on a plane today and this is what the markets might react to," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.


"It's all about the fiscal cliff."


A Republican plan that failed to gain traction last week triggered the recent decline in the S&P 500 <.spx>, highlighting market sensitivity to headlines centered around the talks.


Investors will also look to housing data for signs of improvement in that sector of the economy, with the S&P Case/Shiller Home Price Index for October expected at 9 a.m. (1400 GMT).


Housing data has shown modest improvement in recent months, and continued strength could help support the sagging economy.


"The data is two months old, so it's interesting, but I don't know that people will react to it given these other more timely events," said Forrest.


S&P 500 futures rose 3 points and were slightly 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 gained 17 points, and Nasdaq 100 futures climbed 3.25 points.


The benchmark S&P index is up 13.4 percent for the year, and has recouped nearly all of the losses suffered in the wake of the U.S. elections, when the fiscal cliff concerns moved to the forefront of investors' focus.


China's Sinopec Group and ConocoPhillips will research potentially vast reserves of shale gas in southwestern China over the next two years, state news agency Xinhua reported.


An outage at one of Amazon.com Inc's web service centers hit users of Netflix Inc's streaming video service on Christmas Eve and was not fully resolved until Christmas Day, a spokesman for the movie rental company said on Tuesday.


In Asian markets, the Nikkei moved to a new nine-month high but shares elsewhere in the region were capped in thin holiday trade, with investors focusing on the fate of U.S. negotiations to avert a budget crunch looming at the end of the year.


(Reporting by Chuck Mikolajczak; Editing by Chizu Nomiyama)



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James leads Heat over Thunder in Finals rematch


MIAMI (AP) — Kevin Durant and Russell Westbrook combined to score 54 points, more than any set of teammates had managed in a game against Miami all season.


Oklahoma City needed them to score at least three more.


That didn't happen, and an NBA Finals rematch went just as last year's title series did — to the Heat.


LeBron James had 29 points, nine assists and eight rebounds, Dwyane Wade scored 21, and the Heat survived a frantic finish to beat the Thunder 103-97 on Tuesday night, a game where Durant and Westbrook both missed potential tying 3-pointers in the final seconds.


"A great game to play," Thunder coach Scott Brooks said, "and a great game to coach."


For the Heat, it was just a little greater.


Mario Chalmers scored a season-high 20 for the Heat, who were 19 for 19 from the foul line, the second-best effort in franchise history behind only a 30-for-30 game in Boston on March 24, 1993. Chris Bosh added 16 points for Miami, which has beaten the Thunder five straight times dating to last June's title series.


"Felt a little bit like a different month," Heat coach Erik Spoelstra said. "Regardless of what your script is coming into the game, when you play this team, it's not going to go according to script. They're too good."


It's the first losing streak of the season for the Thunder, who had been 4-0 after losses. Serge Ibaka and Kevin Martin each scored 15 for Oklahoma City.


The game had a little of everything — a fast start by the reigning champions, a one-handed dunk by James on an offensive rebound that will be added to his copious highlight reel, a scrum after a hard foul that led to double-technicals on Wade and Ibaka early in the fourth, an easy rally by the Thunder from an early double-digit deficit, and even workout partners in Durant and James barking back and forth in the final minutes.


Such was the intensity that James slumped over the scorer's table with 1:08 left, exhausted.


"I'm tired as hell right now," James said — and that was more than an hour after the game ended.


With good reason. On an emotional day, there was a wild finish.


Wade lost the ball on an ill-advised, behind-the-back dribble, and the turnover set up Durant for a two-handed dunk that got the Thunder within 96-95 with 44.1 seconds remaining.


Needing a stop on the next trip, the Thunder instead forgot to play defense. Kendrick Perkins and Ibaka both were confused on the ensuing Miami possession, and Bosh was left alone to take a pass from James and throw down a dunk that restored Miami's three-point edge.


"We went over and helped," Durant said. "We just needed to help on the backside. There was miscommunication but we still had a chance to go into overtime."


Two chances, actually.


Oklahoma City got within one when Durant made a jumper over James, but no closer. Ray Allen's two free throws with 15.6 seconds left made it 100-97, and Miami's last three points came from the line. Durant missed a 3-pointer that James contested, Westbrook wound up with a second chance that Wade defended, and the Thunder guard smacked a nearby table arguing that he was fouled.


"Part of the game," Westbrook said.


While the stars were stars, the Heat got help from one unexpected source. Chalmers was making everything, even unintended plays. Allen lost possession on what looked to be a pass to no one, but Chalmers picked up the bouncing ball on the right wing, whirled and made a 3-pointer — putting Miami up 86-79 with 8:14 left.


In the end, that cushion was necessary.


"I got going early," Chalmers said, "and I stuck with it."


The Heat came out flying, opening a quick 13-2 lead after making six of their first seven shots. About all that didn't go right for the Heat early on was James committing a foul, the first time he was called for a personal since Dec. 8.


It happened 4:03 into the game — 254 minutes and 7 seconds of on-court time since his last one — when James fouled Ibaka on a dunk attempt.


Chalmers had 12 points, matching his season high, in the opening quarter alone, and that was also Miami's lead after his layup for a 15-3 edge. When Durant headed to the bench after being called for his second personal, plus a technical, with 2:08 left in the first, the Heat led 27-16.


But even with Durant out, Oklahoma City scored the last eight points of the quarter, six coming from the line. The Thunder shot 17 of the game's first 18 free throws and finished with a 38-19 edge in tries from the stripe.


The Heat were held to two points in the first 5:05 of the third, and the Thunder grabbed the lead for the first time. Durant connected on a baseline jumper while falling out of bounds and getting fouled by James. The resulting free throw gave Oklahoma City a 58-56 edge.


With that, the back-and-forth began, and Miami found a way.


"Both teams really played up to the billing," Wade said. "An excellent basketball game."


NOTES: James scored at least 20 points for the 30th straight regular-season game and 46th overall. ... Wade is 7-1 on Christmas, and James has won six straight on the holiday. ... Miami's Mike Miller became the 48th active player to reach 10,000 points. ... The Thunder have used the same starting lineup for all 27 games. ... James passed Bernard King for 39th on the NBA career scoring list. ... Attendance was 20,300, the largest crowd for a Heat home game since they moved into AmericanAirlines Arena.


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Fit for Flight? Space Tourism Lacks Medical Standards






The rise of space tourism is going to bring a new headache to doctors‘ doors: whether or not to approve their patients for spaceflight. Worse, a new paper cautions, there is no established protocol in place to judge a person fit for making the trip.


The new study stops short of suggesting rigid regulation, saying that too much of it would hurt the space tourism industry before it even gets off the ground. Rather, the researchers encourage doctors to “consider developing a resource file for future reference.”






Lead author Marlene Grenon said her team’s recent paper in the British Medical Journal was designed to make doctors aware of potential health issues related to spaceflight. How to set medical standards, and the implications for insurance, are matters for further research, she said.


“The question is, should there be standards set or not?” said Grenon, an assistant professor of vascular surgery at the University of California, San Francisco. “If you start [restricting] the number of people who are going to fly to the healthiest people, you’re not going to encourage the market to develop.” [Photos: The First Space Tourists]


More data needed


Aerospace is one of the most highly regulated industries in the world. In the United States, pilots and crewmembers must pass strict medical exams authorized by the Federal Aviation Administration (FAA). The military has its own set of exams for Navy aviators and Air Force pilots.


Standards are even more stringent for NASA astronauts. Laser eye surgery is permitted when an astronaut is selected, but only if it was performed more than a year ago. The ability to cope in small spaces, under high stress, is extensively tested. Nutrition, exercise and mental health are constantly evaluated and recorded in the years of training before an astronaut launches.


Physicians have plenty of data about these super-healthy space travellers. But there’s little advice available for more ordinary specimens — people with health issues such as osteoporosis, for example. Only a handful of space tourists, politicians and other non-specialized astronauts have journeyed into orbit.


Doctors aren’t fumbling completely in the dark, though, as they already know many of the effects of weightlessness on the human body. Microgravity hardens arteries, affects eyeballs and weakens bones. Astronauts also can get motion sickness, accumulate large doses of potentially dangerous radiation and experience kidney stones.


Kidney stones are never pleasant, but they can be particularly problematic on orbit. In 1982, the Soviet Union planned to evacuate an astronaut with a severe case from its Salyut 7 space station but ultimately decided against it.


Setting a standard


If a potential space tourist were to pop in Grenon’s office today and ask for medical approval, Grenon said her primary tool would be standards set by the company flying the astronaut.


This leaves medical procedures in the hands of Virgin Galactic and other private companies, meaning that physical exams are not necessarily subject to government regulation.


Doctors are working to fill the gap. In June, an FAA-sponsored medical group suggested guidelines for flight crew and spaceflight participants.


The 23-page document suggests pre-flight measures such as medical questionnaires, screening for certain mental health conditions, and chest X-rays and electrocardiograms.


The guidelines are not binding, and the FAA’s center of excellence for commercial space transportation cautioned that it does not necessarily endorse the recommendations. But Grenon said this effort is the best one put forth so far.


Medical tests will matter even more during lengthier space missions, Grenon added. On the first flights, tourists will “only be in microgravity for a few minutes. But as we step more into space and we go into a space hotel, those [conditions] are all things that will need to be better understood.”


Grenon’s co-authors have affiliations with the Canadian Space Agency, Virgin Galactic and several Canadian and U.S. medical schools. One has even been to space — Millie Hughes-Fulford flew on the space shuttle’s STS-40 mission in 1991. 


Follow Elizabeth Howell @howellspace, or SPACE.com @Spacedotcom. We’re also on Facebook and Google+.


Copyright 2012 SPACE.com, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Look to MADD to change gun culture






STORY HIGHLIGHTS


  • Candace Lightner: After my daughter was killed by a drunk driver, I started MADD

  • Lightner: MADD radically changed our society's view toward drunk driving

  • She says those who want to change our gun culture can look to MADD's strategy

  • Lightner: Engage the media and harness the support that is pouring in




Editor's note: Candace Lightner is the founder of Mothers Against Drunk Driving.


(CNN) -- When I learned about the tragic shooting at Sandy Hook elementary school, I wept and mourned like many other Americans. I was also reminded of my own daughter's death 32 years ago.


For those parents, families or friends of victims who want to see less guns fall into the hands of potential shooters, my personal journey may help serve as a path for change.


My daughter, Cari, was killed by a multiple repeat offender drunk driver on May 3, 1980. Four days later, I started Mothers Against Drunk Driving. I was shocked to learn that over the past decade, approximately 250,000 people were killed in alcohol-related fatal crashes. At that time, public health professionals considered drunk driving to be the No. 1 killer of Americans between the ages of 15 and 24. Drunk driving seemed like the only socially acceptable form of homicide in this country and the attitude toward perpetrators was benign, if not passive.



Candace Lightner

Candace Lightner



I also learned that probably nothing would happen to the man who killed my daughter. So I became a grass roots activist. As I found out, grass roots means, "working outside the system to change the inequities within" and activist means, "getting the job done."



I started MADD because I was angry over the injustice of the status quo. Over time, my efforts helped incite others to action. You kick a few pebbles, you turn a few stones, and eventually you have an avalanche. My "kicking a few pebbles" began in my home with the help of my father and a few friends.


Within three years, MADD developed into an international organization with almost 400 chapters worldwide, a staff of 50 employees, 2 million members, thousands of volunteers and an annual budget of more than $12 million.


Initially, we were mothers who lost children, but soon our membership included everyone who believed in our cause. Before long, voices from long forgotten victims who lost loved ones to drunk driving became loud and clear.










It was gratifying to realize that many people, given a chance, wanted the same things I did. Our small grass-roots movement grew into a groundswell that radically changed society's views on drunk driving.


Early on, it became clear that I must seek broad and strategic alliances for MADD to be successful. I turned to law enforcement officials, restaurateurs, legislators and civic organizations. It was only by building broad coalitions of such highly influential constituents that MADD, during my tenure, was able to initiate a sweeping change in public attitudes and laws against drunk driving.


There is another very important factor that helped our cause: the power of media attention. From 1980 to 1983, when MADD was very active, some of the biggest reductions in motor vehicle deaths occurred in large part because of the media attention we were able to generate. Jay Winsten, director of the Frank Stanton Center for Health Communication at the Harvard School of Public Health, said in a New York Times article, "During each high media period, alcohol related fatalities ... fell twice as rapidly as low media periods."


Before MADD, there was little education in the schools about alcohol or impaired driving. The press rarely mentioned alcohol involvement when reporting a crash. Drinking and driving was still legal in many states. Victims of drunk driving had almost no recourse in an apathetic court system more concerned about the rights of the accused. Involvement in the judicial process was discouraged. Victims had no movement to join, little or no legislation to endorse, and no emotional support system where they could share their grief.


The advent of MADD changed all that:


• Governor's task forces on drunk driving were formed in almost every state.


• At our urging, President Ronald Reagan initiated a Presidential Commission on Drunk Driving, and I was a member.


• MADD was the catalyst for SADD, Students Against Drunk Driving, started by my daughter, Serena.


• We aggressively lobbied for state and federal legislation that would raise the legal drinking age to 21, and we pushed for laws that would hold drunk drivers accountable for their crimes.


• Between 1981 and 1986, 729 state laws pertaining to drunk driving were enacted to help reduce alcohol-related traffic fatalities


• Most importantly, hundreds of thousands of lives have been saved because of the grass-roots efforts


Society no longer considers drunk driving socially acceptable. At long last, in many cases, drunk drivers are being forced to accept responsibility for their heinous acts because a fed up public has had enough.


MADD is a good example of how to change society. We didn't give up and neither should those who wish to see a safer world. You can have an impact and you can save lives.


That was the least I could do for my daughter.


I feel the pain for families of those who died at Sandy Hook. For those who want to do something about gun violence, change isn't easy. What is needed is a grass-roots movement similar to MADD that encompasses all aspects of society. To be effective, it must include all the stakeholders involved and reach a consensus that will make implementation -- whether in laws, increased education or other policy changes -- a given.


Ask for a Presidential Commission while the White House is focused on this issue. Don't take no for an answer. Accept each obstacle as a challenge to be overcome. Engage the media and harness the outpouring and support that is pouring in. People need direction. Leadership is key and MADD had that at the local, state and national level. Develop a strategy that people can follow and provide directions and concrete steps that will guarantee successes and keep people motivated. Don't lose the momentum, anger and rage. Now is the time to take action.


Follow us on Twitter @CNNOpinion


Join us on Facebook/CNNOpinion


The opinions expressed in this commentary are solely those of Candace Lightner.






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Shootings leave 1 dead, 5 wounded Christmas and overnight









An 18-year-old man was shot and killed and five other people were wounded, two of them seriously, across the city Tuesday afternoon and early Wednesday morning.


The man died after someone shot him in the 2000 block of West 69th Street, just west of Damen Avenue, in the West Englewood neighborhood. He was shot after 11:30 p.m.


Joshua Davis was shot in the torso and head shot multiple times after getting into an argument with several others on 69th Street, authorities said. He argued with a group on a bus and was shot after getting off the bus, authorities said.





He lived in the 7200 block of South Bell Avenue in the same neighborhood, according to the Cook County medical examiner's office.


Two 21-year-old men were shot in the 0-100 block of North Lockwood Avenue about 1:15 a.m., near Madison Street. One was shot in the neck and taken to John H. Stroger Jr. Hospital of Cook County and the other was shot in the knee and taken to West Suburban Medical Center, police said. 


The man shot in the neck is expected to survive, police said. At the crime scene, police used a bottle of fruit punch to mark the location of a shell casing because paper used until an evidence marker could be placed by an evidence technician kept blowing down the alley. 


Police blocked off a second West Side crime scene on Laramie where the van the pair were traveling in stopped, also near the intersection of Madison Street. One of the van's windows appeared to be shot out and it was stopped with two flat back tires. 


Police said both were taken by friends to West Suburban Medical Center before the one with the neck wound was transferred.


The shooting stemmed from a fight at a party, police said.


A woman is in critical condition after getting shot in the neck. The 22-year-old was shot inside an apartment on the 1900 block of South Harding Street in the Lawndale neighborhood about 9:40 p.m., police said. She was taken to Mount Sinai Hospital.


The woman was shot by her boyfriend during a fight inside the apartment, police said.


About 7 p.m., an 11-year-old boy was grazed in the arm in the 6200 block of South Michigan Avenue and taken to Comer Children's Hospital, according to police. He was walking in a group when he heard shots and felt pain.


Another man was left in serious condition after someone shot him in the back in the Hermosa neighborhood about 2 p.m. That happened in the 4300 block of West Armitage Avenue on the Northwest Side.


No one is in custody for the shootings and detectives from across the city are investigating. 


pnickeas@tribune.com
Twitter: @peternickeas





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Egypt's leader signs contentious constitution into law


CAIRO (Reuters) - Egyptian President Mohamed Mursi signed into law a new constitution shaped by his Islamist allies, which he says will help end political turmoil and allow him to focus on fixing the fragile economy.


Anxiety about a deepening political and economic crisis has gripped Egypt in past weeks, with many people rushing to buy dollars and take out their savings from banks. The government has imposed new restrictions to reduce capital flight.


The new charter, which the secularist opposition says betrays Egypt's 2011 revolution by dangerously mixing religion and politics, has polarized the Arab world's most populous nation and prompted occasionally violent protest on the streets.


Results announced on Tuesday showed Egyptians had approved the text with about 64 percent of the vote, paving the way for a new parliamentary election in about two months.


The win in the referendum is the Islamists' third straight electoral victory since veteran autocrat Hosni Mubarak was toppled in 2011, following parliamentary elections last year and the presidential vote that brought Mursi to power this year.


Mursi's government, which has accused opponents of damaging the economy by prolonging political upheaval, now faces the tough task of building a broad consensus as it prepares to impose unpopular austerity measures to prop up the economy.


The presidency said on Wednesday that Mursi had signed a decree enforcing the charter overnight after the official announcement of the result of the referendum approving the basic law, Egypt's first constitution since Mubarak's overthrow.


The opposition has condemned the new basic law as too Islamist, saying it could allow clerics to intervene in the lawmaking process and leave minority groups without proper legal protection. It also said the referendum was marred by widespread electoral violations.


Nevertheless, major opposition groups have not called for new protests, suggesting that weeks of civil unrest over the constitution may be subsiding now that it has passed.


Mursi, catapulted into power by his Islamist allies this year, believes adopting the text quickly and holding the vote for a permanent new parliament will help end a protracted period of turmoil and uncertainty that has wrecked the economy.


Mursi's government argues the constitution offers enough protection to all groups, and that many Egyptians are fed up with street protests that have prevented a return to normality and distracted the government from focusing on the economy.


The constitution gives Egypt's upper house of parliament, which is dominated by Islamists, full legislative powers until a vote for a new lower house is held. The chamber convened on Wednesday for the first time since the constitution's adoption.


CONCERNS


The government has begun a series of meetings with businessmen, trade unions, non-governmental organizations and other groups to persuade them of the need for tax increases and spending cuts to resolve the country's financial crisis.


Mursi has committed to such austerity measures to receive loans from the International Monetary Fund.


While stressing the importance of political stability to heal the economy, Mursi's government has sought to play down economic woes and appealed for unity in the face of hardship.


"The government calls on the people not to worry about the country's economy," Parliamentary Affairs Minister Mohamed Mahsoub told the upper house in a speech.


"We are not facing an economic problem but a political one and it is affecting the economic situation. We therefore urge all groups, opponents and brothers, to achieve wide reconciliation and consensus."


Mursi is due to address the upper house on Saturday in a speech likely to be dominated by economic policy.


Sharpening people's concerns, the authorities imposed currency controls on Tuesday to prevent capital flight. Leaving or entering Egypt with more than $10,000 cash is now banned.


Al-Mal newspaper quoted Planning Minister Ashraf al-Araby as saying the government would not implement a series of planned tax increases until it completes a dialogue with different parts of society.


Adding to the government's long list of worries, Communications Minister Hany Mahmoud has resigned citing his "inability to adapt to the government's working culture".


The United States, which provides $1.3 billion a year in military aid plus other support to Egypt and sees it as a pillar of security in the Middle East, called on Egyptian politicians to bridge divisions and on all sides to reject violence.


"President Mursi, as the democratically elected leader of Egypt, has a special responsibility to move forward in a way that recognizes the urgent need to bridge divisions," State Department spokesman Patrick Ventrell said.


(Additional reporting by Patrick Werr; Writing by Maria Golovnina; Editing by Peter Graff)



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Yen on defensive on U.S. fiscal worry, helps Nikkei

TOKYO (Reuters) - Uncertainty over whether U.S. lawmakers will strike a deal by an end-of-year deadline to avert a severe fiscal retrenchment undermined the yen and bolstered Japanese shares on Tuesday in low volume, with many participants away on Christmas holiday.


The dollar rose to a 20-month high of 84.965 yen early on Tuesday in Asia, as Japanese markets caught up with global investors who had reacted overnight to incoming Japanese Prime Minister Shinzo Abe's weekend comments that raised the pressure on the Bank of Japan.


During a meeting on Tuesday with officials from Japan's major business lobby, Keidanren, Abe reiterated calls on the BOJ to conduct bold monetary easing to beat deflation by setting an inflation target of 2 percent.


The head of Abe's coalition partner said on Tuesday the coalition party and Abe had agreed to set a 2 percent inflation target and compile a large stimulus budget to help the economy return to growth and overcome deflation.


The yen has come under pressure as a result of expectations that the BOJ will be compelled to adopt more drastic monetary stimulus measures next year.


The dollar was expected to stay firm this week as investors repatriate dollars, and as the U.S. fiscal impasse is likely to continue to sap investor appetite for risky assets and raise the dollar's safe-haven appeal.


"The dollar is seen relatively well bid, with all focus on the fiscal cliff," said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo.


"Negotiations may be carried over the weekend, but markets still expect a deal to be struck by December 31. It is unthinkable that the U.S. will risk driving its economic growth sharply lower by not agreeing to avoid it."


U.S. lawmakers and President Barack Obama were on Christmas holiday and talks were unlikely to resume until later in the week.


House of Representatives Speaker John Boehner failed to gain support for a tax plan at the end of last week, raising fears that the United States may face the "fiscal cliff" of some $600 billion in automatic spending cuts and tax increases set to start on January 1.


Japan's Nikkei stock average <.n225> resumed trading after a three-day weekend with a 1.1 percent gain, recapturing the key 10,000 mark it ceded on Friday after Boehner's failure sparked a broad market sell-off and the Tokyo benchmark closed down 1 percent. The Nikkei was likely to be supported as long as the yen stayed weak. <.t/>


"Ongoing optimism about the weak yen is lifting hopes that exporters' earnings will be better than expected," said Hiroichi Nishi, general manager at SMBC Nikko Securities.


Analysts say a near-term correction may be possible as the index is now in "overbought" territory after gaining 16.2 percent over the last six weeks, hitting a nine-month high last Friday. Its 14-day relative strength index was at 72.34, above the 70 level that signals an overbought condition.


MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> nudged up 0.1 percent, driven higher by surging Shanghai shares, as most Asian bourses were shut for Christmas.


The Shanghai Composite Index <.ssec> soared over 2 percent to five-month highs as investors bought property stocks on mounting optimism about the sector. Taiwan shares <.twii> jumped 1.3 percent on gains in technology and financial shares.



Asset performance in 2012: http://link.reuters.com/muc46s


2012 commodities returns: http://link.reuters.com/faz36s


^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>


U.S. HOLDS 2013 KEY


Goro Ohwada, president and CEO at Japan-based fund of hedge funds Aino Investment Corp, said investors were likely to focus on economic fundamentals and the United States for cues on investment direction in 2013.


"There is a feeling that an investment strategy based on economic fundamentals may finally work next year, with asset prices more closely reflecting fair value. The problem is, we don't know yet which asset is a better bet than others," Ohwada said, adding that oil and gold appeared to be near their highs.


Naohiro Niimura, a partner at research and consulting firm Market Risk Advisory, said commodities and energy prices will likely move in tight ranges in 2013, with investors eyeing political events, including the U.S. fiscal cliff outlook, Italian parliamentary election set for February 24-25, and Germany's elections in September.


"The macroeconomic policies taken this year around the world to support growth are expected to result in a moderate recovery in 2013 to reduce an excessive downside risk to prices. This will likely keep commodities, gold and energy prices near their highs," Niimura said.


(Additional reporting by Ayai Tomisawa in Tokyo; Editing by Edmund Klamann and Daniel Magnowski)



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Pagano back to coach Colts after cancer treatment


INDIANAPOLIS (AP) — Chuck Pagano stepped to the podium Monday, hugged his team owner, thanked his family for its support and wiped a tear from his eye.


He might, finally, turn out the lights in his office, too.


Nearly three months to the day after being diagnosed with leukemia, the Colts' first-year coach returned to a team eager to reunite with a boss healthy enough to go back to work.


"I told you my best day of my life was July 1, 1989," Pagano said, referring to his wedding date. "Today was No. 2. Getting to pull up, drive in, get out of my car, the key fob still worked. I was beginning to question whether it would or not. When I asked for Bruce to take over, I asked for him to kick some you-know-what and to do great. Damn Bruce, you had to go and win nine games? Tough act to follow. Tough act to follow. Best in the history of the NFL. That's what I have to come back to."


The comment turned tears into the laughter everyone expected on such a festive occasion.


For Pagano and the Colts, Monday morning was as precious as anyone could have imagined when Pagano took an indefinite leave to face the biggest opponent of his life, cancer.


In his absence, all the Colts was win nine of 12 games, make a historic turnaround and clinch a playoff spot all before Sunday's regular-season finale against Houston, which they pegged as the day they hoped to have Pagano back. If all goes well at practice this week, Pagano will be on the sideline for the first time since a Week 3 loss to Jacksonville.


Pagano endured three rounds of chemotherapy to put his cancer in remission.


That Pagano's return came less than 24 hours after Indy (10-5) locked up the No. 5 seed in the AFC and the day before Christmas seemed fitting, too.


"I know Chuck is ready for this challenge. In speaking to his doctor multiple times, I know that the time is right for him to grab the reins, get the head coaching cap on and begin the journey," owner Jim Irsay said. "It's been a miraculous story. It really is a book. It's a fairytale. It's a Hollywood script. It's all those things but it's real."


The reality is that he's returning to a vastly different team than the one he turned over to Arians, his long-time friend and first assistant coaching hire.


Back then, the Colts were 1-2 and most of the so-called experts had written them off as one of the league's worst teams. Now, they're ready to show the football world that they can be just as successful under Pagano as they were under Arians, who tied the NFL record for wins after a midseason coaching change.


Pagano also has changed.


The neatly-trimmed salt-and-pepper hair and trademark goatee that were missing in November have slowly returned, and the thinner man who appeared to be catching his breath during a postgame speech in early November, looked and sounded as good as ever Monday.


He repeatedly thanked fans for their prayers and letters, the organization and his family for their unwavering help and promised to provide comfort and support to other people who are facing similar fights. During one poignant moment that nearly brought out tears again, Pagano even recounted a letter sent to him by a 9-year-old child who suggested he suck on ice chips and strawberry Popsicles in the hospital and advised him to be nice to the nurses regardless of how he felt — and he never even paused.


"I feel great, my weight is back, my energy is back and again, it's just a blessing to be back here," Pagano said.


In the minds of Colts players and coaches, Pagano never really left.


He continually watched practice tape and game film on his computer, used phone calls and text messages to regularly communicate with players and occasionally delivered a pregame or postgame speech to his team.


"He texted me and called me so much, it was like he was standing there in my face every day," said receiver Reggie Wayne, who has been friends with Pagano since the two were working together at the University of Miami.


But the Colts found plenty of other ways to keep Pagano's battle in the forefront.


They began a fundraising campaign for leukemia research, calling it Chuckstrong. Players had stickers with the initials CP on their locker room nameplates, and Arians wore an orange ribbon on his baseball cap during games. Orange is the symbolic color for leukemia. At one point, nearly three dozen players shaved their heads to show their ailing coach they were with him.


That's not all.


Arians and first-year general manager Ryan Grigson decided to leave the lights on in Pagano's office until he returned. Pagano noted the team even installed plastic clips to make sure those lights were not mistakenly turned off while he was gone. Those clips were removed when Pagano arrived Monday morning.


And Arians said nobody sat in the front seat of the team bus.


"He's always been our head coach," Arians said.


So after getting medical clearance from his oncologist, Dr. Larry Cripe, to return with no restrictions, Pagano couldn't wait to get to the office Monday morning.


Arians arrived at 7 a.m., three hours early for the scheduled team meeting. By then, Pagano had already driven past the inflatable Colts player with the words "Welcome Back Chuck" printed on its chest and was back in his office preparing for the Texans.


Players showed up a couple of hours later, and when the torch was passed from Arians back to Pagano, players gave their returning coach a standing ovation that Wayne said was well-deserved.


All Pagano wants to do now is emulate the success Arians and his players have had this season.


"I asked him (Arians) if he would lead this team and this ballclub and this organization and take over the reins," Pagano said. "What a masterful, masterful job you did Bruce. You carried the torch and all you went out and did was win nine ballgames. You got us our 10th win yesterday and you got us into the playoffs. You did it with dignity and you did it with class. You're everything that I always knew you were and more."


___


Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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STORY HIGHLIGHTS


  • Julian Zelizer: 2012 was a year of bitter domestic battles, turbulence overseas

  • He says the weakness of GOP, renewed strength of liberalism were apparent

  • Zelizer says the year also highlighted the influence of new immigrants in America

  • Zelizer: Year ended with a tragic reminder about need to act on gun control




Editor's note: Julian Zelizer is a professor of history and public affairs at Princeton University. He is the author of "Jimmy Carter" and of the new book "Governing America."


(CNN) -- 2012 has been a tumultuous year in American politics. With the presidential election capping off the year, Americans have witnessed a series of bitter domestic battles and turbulent events overseas. As the year closes out, it is worth thinking about some of the most important lessons that politicians and voters can learn from this year as they prepare for 2013.


Here are six:


The Republican brand name is in trouble: The GOP took a drubbing in 2012. To be sure, Mitt Romney ran a problematic campaign. His inability to connect with voters and a number of embarrassing gaffes hurt the chances for Republicans to succeed.



Julian Zelizer

Julian Zelizer



Just as important to the outcome was the party that Romney represented. Voters are not happy with the GOP. Public approval for the party has been extremely low. Congressional Republicans have helped to bring down the party name with their inability to compromise.


Recent polls show that if the nation goes off the fiscal cliff, the Republicans would be blamed. According to a survey by NBC and the Wall Street Journal, 65 percent of people asked for a short word or phrase to describe the GOP came up with something negative. The Republican Party was also the lowest-rated political institution.



The exit polls in November showed that the GOP is out of step with the electorate on a number of big issues, including immigration and gay marriage. If Republicans don't undertake some serious reforms and offer fresh voices, all the new messaging in the world won't help them as the competition starts for 2016.


Opinion: Madness in the air in Washington


America has grown more liberal on cultural and social issues: The election results confirmed what polls have been showing for some time. If the 1960s was a battle over conservative "traditional family values" and liberal ideals of social relations, liberals eventually won. Throughout the year, polls showed, for example, that the public was becoming more tolerant of gay marriage and civil unions. Americans support the view that gay sex should be legal by a margin of 2-1, compared to 1977 when the public was split.


In the election, same-sex marriage was approved in three states, voters in Wisconsin sent to office the first openly gay senator, and two states approved of referendums to legalize the recreational use of marijuana. Americans are accepting of social diversity, and expect that the pluralism of the electorate will be reflected by the composition of elected officials in Washington.


While there are some conservative voices who lament these changes and warn of a nation that is veering toward Sodom, a majority are more than comfortable that some of the taboos and social restrictions of earlier eras are fading and that we live in a nation which is more tolerant than ever before. These social and cultural changes will certainly raise more questions about restrictive practices and policies that remain in place while creating pressure for new kinds of leaders who are responsive to these changes.


The Middle East remains a tinderbox: In the years that followed Barack Obama's election, there was some hope that the Middle East could become a calmer region. When revolutions brought down some of the most notorious dictators in the region, many Americans cheered as the fervor for democracy seemed to be riding high.








But events in 2012 threw some cold water on those hopes. The Muslim Brotherhood won control of the Egyptian government. In Syria, the government brutally cracked down on opponents, reaching the point in December where Obama's administration has started to talk about the possibility of the al-Assad regime using chemical weapons, though the severity of the threat is unclear. The battles between Palestinians and Israel raged with rockets being fired into Tel Aviv and Israelis bombing targets in Gaza.


Although national attention is focused on domestic policy, it is clear that the Middle East has the capacity to command national attention at any moment and remains as explosive as ever.


Our infrastructure needs repair: Hurricane Sandy devastated the Northeast in November, leaving millions of Americans on the East Coast without power and with damaged property. Soon after the hurricane hit, New York Gov. Andrew Cuomo made an important point. The infrastructure of our cities is outdated and needs to be revamped so that it can withstand current weather patterns. Speaking of the need for levees in New York, Cuomo said: "It is something we're going to have to start thinking about ... The construction of this city did not anticipate these kinds of situations."


Regardless of whether Congress takes action on the issue of climate change, in the short term cities and suburbs must do more work to curtail the kind of damage wreaked by these storms and to mitigate the costs of recovery -- building underground power lines, increasing resources for emergency responders, building state-of-the-art water systems, and constructing effective barriers to block water from flooding.


The new immigrants are a powerful political and social force: As was the case in the turn of the twentieth century when Eastern and Southern Europeans came into this county, massive waves of immigration are remaking the social fabric of the nation. Latino-Americans, Asian-Americans and other new portions of the electorate who have been coming into the country since the reform of immigration laws in 1965 are coming to represent a bigger and bigger portion of the electorate.


Not only are their numbers growing as a voting bloc, but they are more organized and active than ever before, both on election day as well as in policy making.


Soon after the election, The New York Times reported that 600 members of United We Dream, a network of younger immigrants who don't have their papers, met for three days to plan how to lobby for a bill that would enable 11 million illegal immigrants to become legal. One of the leaders, Christina Jimenez, explained: "We have an unprecedented opportunity to engage our parents, our cousins, our abuelitos in this fight." They have both parties scrambling as Democrats are working to fulfill the promises that brought these voters to their side in November, while some Republicans are desperate to dampen the influence of hardline anti-immigration activists in their party.


We need to do something about guns. The year ended with a horrific shooting at an elementary school in Connecticut. When a 20-year-old went on a rampage apparently using guns that had been legally purchased by his mother, the world watched with horror. Several prominent conservative advocates of gun rights, including former congressman and television host Joseph Scarborough as well as Sen. Joe Manchin, made statements indicating that the time has come to impose stricter controls and regulations on the purchase of weapons. "I don't know anybody in the sporting or hunting arena that goes out with an assault file," Manchin said.


Over the next few weeks, there will certainly be a big debate about what caused this shooting. People from different perspectives will highlight different issues but making it more difficult for people to get their hands on certain kinds of weapons, while not a cure-all, can only diminish the chances of this happening again.


There are many more lessons but these six stand out. After the trauma of the past week, let's hope the new year starts off with better days.



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The opinions expressed in this commentary are solely those of Julian Zelizer.






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