Meteorite hits central Russia, more than 500 people hurt


CHELYABINSK, Russia (Reuters) - More than 500 people were injured when a meteorite shot across the sky and exploded over central Russia on Friday, sending fireballs crashing to Earth, shattering windows and damaging buildings.


People heading to work in Chelyabinsk heard what sounded like an explosion, saw a bright light and then felt a shockwave according to a Reuters correspondent in the industrial city 1,500 km (950 miles) east of Moscow.


A fireball blazed across the horizon, leaving a long white trail in its wake which could be seen as far as 200 km (125 miles) away in Yekaterinburg. Car alarms went off, windows shattered and mobile phone networks were interrupted.


"I was driving to work, it was quite dark, but it suddenly became as bright as if it was day," said Viktor Prokofiev, 36, a resident of Yekaterinburg in the Urals Mountains.


"I felt like I was blinded by headlights," he said.


No fatalities were reported but President Vladimir Putin, who was due to host Finance Ministry officials from the Group of 20 nations in Moscow, and Prime Minister Dmitry Medvedev were informed.


A local ministry official said such incidents were extremely rare and Friday's events might have been linked to an asteroid the size of an Olympic swimming pool due to pass Earth at a distance of 27,520 km (17,100 miles) but this was not confirmed.


Russia's space agency Roscosmos said the meteorite was travelling at a speed of 30 km (19 miles) per second and that such events were hard to predict. The Interior Ministry said the meteorite explosion had caused a sonic boom.


Russia's Emergencies Ministry said 514 people had sought medical help, mainly for light injuries caused by flying glass, and that 112 of those were kept in hospital. Search groups were set up to look for the remains of the meteorite.


"There have never been any cases of meteorites breaking up at such a low level over Russia before," said Yuri Burenko, head of the Chelyabinsk branch of the Emergencies Ministry.


WINDOWS BREAK, FRAMES BUCKLE


Windows were shattered on Chelyabinsk's central Lenin Street and some of the frames of shop fronts buckled.


A loud noise, resembling an explosion, rang out at around 9.20 a.m. (12:20 a.m. ET). The shockwave could be felt in apartment buildings in the industrial city's center.


"I was standing at a bus stop, seeing off my girlfriend," said Andrei, a local resident who did not give his second name. "Then there was a flash and I saw a trail of smoke across the sky and felt a shockwave that smashed windows."


A wall was damaged at the Chelyabinsk Zinc Plant but a spokeswoman said there was no environmental threat.


Although such events are rare, a meteorite is thought to have devastated an area of more than 2,000 sq km (1,250 miles) in Siberia in 1908, smashing windows as far as 200 km (125 miles) from the point of impact.


The Emergencies Ministry described Friday's events as a "meteor shower in the form of fireballs" and said background radiation levels were normal. It urged residents not to panic.


Chelyabinsk city authorities urged people to stay indoors unless they needed to pick up their children from schools and kindergartens. They said what sounded like a blast had been heard at an altitude of 10,000 meters (32,800 feet).


The U.S. space agency NASA has said an asteroid known as 2012 DA14, about 46 meters in diameter, would have an encounter with Earth closer than any asteroid since scientists began routinely monitoring them about 15 years ago.


Television, weather and communications satellites fly about 500 miles higher. The moon is 14 times farther away.


(Additional reporting by Natalia Shurmina in Yekaterinburg and Gabriela Baczynska in Moscow, Writing by Alexei Anishchuk and Timothy Heritage, Editing by Michael Holden)



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Oscar Pistorius Weeps in Court as Prosecutors Seek Murder Charges















02/15/2013 at 08:15 AM EST







Oscar Pistorius


Antonie de Ras/Reuters/Landov


Oscar Pistorius, the South African track star known as the Blade Runner, put his head in his hands and wept Friday as prosecutors said they would seek a charge of premeditated murder in the shooting of his girlfriend, model Reeva Steenkamp, the New York Times reports.

Pistorius, 26, appearing in a Pretoria courtroom, is accused of shooting Steenkamp, 30, whose body was found in a pool of blood in his gated home in Pretoria on Thursday. She was reportedly shot four times. He did not enter a plea on the murder charges and police said they would oppose any application for bail.

Pistorius rose to fame and became a national hero as a world-class sprinter while running in the London Olympics on carbon fiber blades. He was born without fibula bones and had amputations below the knees when he was an infant. He was the first Paralymic champion to run with able-bodied athletes in an Olympic games, making his debut last summer in London.

The murder charge has shocked South Africans who held the athlete up as a national hero. A grim Pistorious sat with his jaw clenched in the courtroom. At one point, his father Henke reached out to him, but Pistorius just walked on, teary-eyed.

Steenkamp had posted Valentine's Day messages of love on her Twitter account just hours before her death. "It should be a day of love for everyone," she Tweeted. Her family said they had no clue of trouble between the couple before her death.

Oscar Pistorius Weeps in Court as Prosecutors Seek Murder Charges| Crime & Courts, Death, True Crime, Oscar Pistorius, Reeva Steenkamp

Reeva Steenkamp and Oscar Pistorius

Gallo Images / REX USA

Police told reporters said they were interviewing witnesses, including neighbors. A 9 mm handgun was removed from the home by police.

Initial news accounts suggest that Pistorius, a gun enthusiast, had reportedly mistaken Steenkamp for an intruder. But police countered that story by disclosing previous police complaints of domestic problems at his home.

The court case will resume on Tuesday. Pistorius competed in the 2012 Olympics, running in the 400-meter race, where he reached the semi-finals. He also competed as a part of his country's 4x400 meter relay team. He has previously won two gold medals and a silver at the Paralympic Games, also held in London.

With reporting by MIKE BEHR

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Study: Fish in drug-tainted water suffer reaction


BOSTON (AP) — What happens to fish that swim in waters tainted by traces of drugs that people take? When it's an anti-anxiety drug, they become hyper, anti-social and aggressive, a study found. They even get the munchies.


It may sound funny, but it could threaten the fish population and upset the delicate dynamics of the marine environment, scientists say.


The findings, published online Thursday in the journal Science, add to the mounting evidence that minuscule amounts of medicines in rivers and streams can alter the biology and behavior of fish and other marine animals.


"I think people are starting to understand that pharmaceuticals are environmental contaminants," said Dana Kolpin, a researcher for the U.S. Geological Survey who is familiar with the study.


Calling their results alarming, the Swedish researchers who did the study suspect the little drugged fish could become easier targets for bigger fish because they are more likely to venture alone into unfamiliar places.


"We know that in a predator-prey relation, increased boldness and activity combined with decreased sociality ... means you're going to be somebody's lunch quite soon," said Gregory Moller, a toxicologist at the University of Idaho and Washington State University. "It removes the natural balance."


Researchers around the world have been taking a close look at the effects of pharmaceuticals in extremely low concentrations, measured in parts per billion. Such drugs have turned up in waterways in Europe, the U.S. and elsewhere over the past decade.


They come mostly from humans and farm animals; the drugs pass through their bodies in unmetabolized form. These drug traces are then piped to water treatment plants, which are not designed to remove them from the cleaned water that flows back into streams and rivers.


The Associated Press first reported in 2008 that the drinking water of at least 51 million Americans carries low concentrations of many common drugs. The findings were based on questionnaires sent to water utilities, which reported the presence of antibiotics, sedatives, sex hormones and other drugs.


The news reports led to congressional hearings and legislation, more water testing and more public disclosure. To this day, though, there are no mandatory U.S. limits on pharmaceuticals in waterways.


The research team at Sweden's Umea University used minute concentrations of 2 parts per billion of the anti-anxiety drug oxazepam, similar to concentrations found in real waters. The drug belongs to a widely used class of medicines known as benzodiazepines that includes Valium and Librium.


The team put young wild European perch into an aquarium, exposed them to these highly diluted drugs and then carefully measured feeding, schooling, movement and hiding behavior. They found that drug-exposed fish moved more, fed more aggressively, hid less and tended to school less than unexposed fish. On average, the drugged fish were more than twice as active as the others, researcher Micael Jonsson said. The effects were more pronounced at higher drug concentrations.


"Our first thought is, this is like a person diagnosed with ADHD," said Jonsson, referring to attention deficit-hyperactivity disorder. "They become asocial and more active than they should be."


Tomas Brodin, another member of the research team, called the drug's environmental impact a global problem. "We find these concentrations or close to them all over the world, and it's quite possible or even probable that these behavioral effects are taking place as we speak," he said Thursday in Boston at the annual meeting of the American Association for the Advancement of Science.


Most previous research on trace drugs and marine life has focused on biological changes, such as male fish that take on female characteristics. However, a 2009 study found that tiny concentrations of antidepressants made fathead minnows more vulnerable to predators.


It is not clear exactly how long-term drug exposure, beyond the seven days in this study, would affect real fish in real rivers and streams. The Swedish researchers argue that the drug-induced changes could jeopardize populations of this sport and commercial fish, which lives in both fresh and brackish water.


Water toxins specialist Anne McElroy of Stony Brook University in New York agreed: "These lower chronic exposures that may alter things like animals' mating behavior or its ability to catch food or its ability to avoid being eaten — over time, that could really affect a population."


Another possibility, the researchers said, is that more aggressive feeding by the perch on zooplankton could reduce the numbers of these tiny creatures. Since zooplankton feed on algae, a drop in their numbers could allow algae to grow unchecked. That, in turn, could choke other marine life.


The Swedish team said it is highly unlikely people would be harmed by eating such drug-exposed fish. Jonsson said a person would have to eat 4 tons of perch to consume the equivalent of a single pill.


Researchers said more work is needed to develop better ways of removing drugs from water at treatment plants. They also said unused drugs should be brought to take-back programs where they exist, instead of being flushed down the toilet. And they called on pharmaceutical companies to work on "greener" drugs that degrade more easily.


Sandoz, one of three companies approved to sell oxazepam in the U.S., "shares society's desire to protect the environment and takes steps to minimize the environmental impact of its products over their life cycle," spokeswoman Julie Masow said in an emailed statement. She provided no details.


___


Online:


Overview of the drug: http://www.nlm.nih.gov/medlineplus/druginfo/meds/a682050.html


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Buffett, Brazil's 3G team up for $23 billion Heinz buyout


(Reuters) - Warren Buffett and Brazilian financier Jorge Paulo Lemann are teaming up to buy ketchup maker H.J. Heinz Co for $23.2 billion, in what could be the first step of a wave of mergers for the food and beverage industry.


Analysts and people close to the deal said Heinz could be a good starting point to consolidate similar staple food companies, particularly given the larger ambitions of Lemann's private equity firm 3G Capital.


Including debt assumption, Heinz valued the transaction, which it called the largest in its industry's history, at $28 billion. Buffett's Berkshire Hathaway and 3G will pay $72.50 per share, a 19 percent premium to the stock's previous all-time high.


Heinz shares initially rose slightly above the offer price, although Buffett cautioned he had no intention of raising his bid and the stock fell back below that mark by midday. The stock has been on a tear, almost doubling over the last four years, though analysts said the price seemed fair.


They also said the deal could be the first step in a broader wave of mergers for the food and beverage industry.


"Maybe for the consumer staples group in general this may start some talk about consolidation. Even corporate entities are flush with cash, interest rates are low, it would seemingly make sense," Edward Jones analyst Jack Russo said.


Companies like General Mills and Campbell Soup - itself long seen as a potential Heinz merge partner - rose on the news.


Any acquisition could help Heinz further diversify and broaden its international profile. It already dominates the ketchup business, with a nearly 26 percent share of the global market and a 59 percent share domestically, according to Euromonitor International.


The company actually generates the largest portion of its sales in Europe, though its traditional North American consumer products business is the most profitable.


But its real growth engine has been the Asia/Pacific region, where sales increased nearly 11 percent in the last fiscal year, in part on demand for sauces and infant foods in China.


BUFFETT HUNTING GROWTH


The surprise purchase satisfies, at least in part, Buffett's hunt for growth through acquisition. He was frustrated in 2012 by the collapse of at least two unnamed deals in excess of $20 billion and said he might have to do a $30 billion deal this year to help fuel Berkshire's growth engine.


In a regulatory filing late on Thursday, Berkshire said it was providing $12.12 billion in equity, including common stock, warrants and preferred shares with a liquidation preference of $8 billion and a 9 percent dividend.


Barclays Capital's Jay Gelb the deal's valuation appeared high at 19 times Heinz's expected 2014 earnings per share, but that it would enhance Berkshire's consumer portfolio.


Berkshire Hathaway already has a variety of food assets, including Dairy Queen ice cream chain, chocolatier See's Candies and food distributor McLane. Buffett, famed for a love of cheeseburgers, joked he was well acquainted with Heinz's products already and that this was "my kind of deal."


It does represent an unusual teaming of Berkshire with private equity, though; historically, Buffett's purchases have been outright his own. He and 3G founder Jorge Paulo Lemann have known each other for years, and Buffett said Lemann approached him with the Heinz idea in December.


One Berkshire investor said he had mixed feelings about the deal because of the limited growth prospects domestically.


"We're a little hesitant on the staple companies because they don't have any leverage in the United States," said Bill Smead, chief investment officer of Smead Capital Management in Seattle. But at the same time, he said, Buffett was likely willing to accept a bond-like steady return even if it was not necessarily a "home run."


A second investor, Michael Yoshikami of Destination Wealth Management in Walnut Creek, California, said he liked the purchase because it provided cash flow for other deals.


"This is a better use of cash than current money market instruments," said Yoshikami, the firm's CEO and chairman of its investment committee.


3G EXPANDS


For 3G, a little-known firm with Brazilian roots, the purchase is something of a natural complement to its investment in fast-food chain Burger King, which it acquired in late 2010 and in which it still holds a major stake.


Historically, 3G was more of an investor than an acquirer. Its biggest shareholdings include Delphi Automotive, Newell Rubbermaid and Anadarko Petroleum.


Lemann, a globe-trotting financier with Swiss roots, made his money in banking and gained notoriety for helping to pull together the deals that ultimately formed the beer brewing giant AB InBev. Forbes ranks him as the world's 69th-richest billionaire, with a fortune of $12 billion.


3G's Alex Behring runs the fund out of New York. He appeared at a Pittsburgh news conference on Thursday with Heinz management to discuss the deal - and to reassure anxious local crowds that the company will remain based there and will continue to support local philanthropy.


But at the same time, Behring said it was too soon to talk about cost cuts at the company. Unlike Berkshire, which is a hands-off operator, 3G is known for aggressively controlling costs at its operations.


PITTSBURGH ROOTS


Also to be determined is whether CEO Bill Johnson would stay on. Only the fifth chairman in the company's history, Johnson is widely credited with Heinz's recent strong growth.


"I am way too young to retire," he told the news conference, adding that discussions had not yet started with 3G over the details of Heinz's future management.


The company, known for its iconic ketchup bottles, Heinz 57 sauces as well as other brands including Ore-Ida frozen potatoes, has increased net sales for the last eight fiscal years in a row.


Heinz said the transaction would be financed with cash from Berkshire and 3G, debt rollover and debt financing from J.P. Morgan and Wells Fargo. Buffett told CNBC that Berkshire and 3G would be equal equity partners.


That would imply roughly $6 billion to $7 billion of new debt needs to be raised.


Heinz shares soared 19.9 percent, or $12.02, to $72.50 on the New York Stock Exchange.


A week ago the stock hit a long-term high of $61 a share - near records it set in 1998 - having risen almost 5 percent this year and nearly 12 percent since the beginning of 2012.


The Heinz Endowments, a pillar in Pennsylvania philanthropy, said the sale of the company would have virtually no impact on their work. Heinz shares represent just over 1 percent of the endowment's $1.4 billion in holdings.


The deal is also a potential boon for new U.S. Secretary of State John Kerry, whose wife, Teresa, is the widow of H.J. Heinz Co heir John Heinz. Kerry's most recent financial disclosures from his time in the U.S. Senate show a position in Heinz shares of more than $1 million, although the precise size is unclear.


Centerview Partners and BofA Merrill Lynch were financial advisers to Heinz, with Davis Polk & Wardwell LLP the legal adviser. Moelis & Company was financial adviser to the transaction committee of Heinz's board and Wachtell, Lipton, Rosen & Katz served as its legal adviser.


Lazard served as lead financial adviser. J.P. Morgan and Wells Fargo also served as financial advisers to the investment consortium. Kirkland & Ellis LLP was legal adviser to 3G Capital, and Munger, Tolles & Olson LLP was legal adviser to Berkshire Hathaway.


(Additional reporting by Olivia Oran and IFR's Stephen Carter in New York and Drew Singer in Pittsburgh; Editing by Maureen Bavdek and Leslie Gevirtz)



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"Blade Runner" Pistorius charged with murdering girlfriend


JOHANNESBURG (Reuters) - South African "Blade Runner" Oscar Pistorius, a double amputee who became one of the biggest names in world athletics, was charged on Thursday with shooting dead his girlfriend at his home in Pretoria.


Police said they had opened a murder case after a 30-year-old woman was found dead at the track star's house after an incident in the upmarket Silverlakes gated complex on the outskirts of the capital.


"At this stage he is on his way to a district surgeon for medical examination," police brigadier Denise Beukes told reporters outside the heavily guarded residential complex.


Pistorius and his girlfriend, Reeva Steenkamp, had been the only people in the house at the time of the shooting, Beukes, said, and witnesses had been interviewed about the incident, which happened in the early hours of the morning.


"We are talking about neighbors and people that heard things earlier in the evening and when the shooting took place," she said. Earlier, police said a 9mm pistol had been found at the scene.


"When a person has been accused of a crime like murder they look at things like testing under the figure nails, taking a blood alcohol sample and all kinds of other test that are done. They are standard medical tests," Beukes said.


Pistorius is due to appear in a Pretoria court after 1200 GMT.


Before the murder charge was announced, Johannesburg's Talk Radio 702 said the 26-year-old may have mistaken Steenkamp for a burglar.


South Africa has some of the world's highest rates of violent crime, and many home owners have weapons to defend themselves against intruders, although Pistorius' complex is surrounded by a three meter high wall and electric fence.


In 2004, Springbok rugby player Rudi Visagie shot dead his 19-year-old daughter after he mistakenly thought she was a robber trying to steal his car in the middle of the night.


VALENTINE'S DAY


Steenkamp, a model and regular on the South African party circuit, was reported to have been dating Pistorius for a year, and there had been little to suggest their relationship was in trouble.


In the social pages of last weekend's Sunday Independent she described him as having "impeccable" taste.


"His gifts are always thoughtful," she was quoted as saying.


Some of her last Twitter postings indicated she was looking forward to celebrating Valentine's Day on Thursday with him.


"What do you have up your sleeve for your love tomorrow???" she posted.


However, Beukes said the police were aware of previous incidents at the house of a "domestic nature", and recent media interviews with Pistorius revealed he kept an assortment of weapons in his home.


"Cricket and baseball bats lay behind the door, a pistol by his bed and a machine gun by a window," Britain's Daily Mail wrote in a profile published last year.


He was arrested in 2009 for assault after slamming a door on a woman and spent a night in police custody. Family and friends said it was just an accident and the charges were later dropped.


Steenkamp's colleagues were distraught.


"We are all devastated. Her family is in shock," Steenkamp's agent, Sarita Tomlinson, told Reuters, in tears. "They did have a good relationship. Nobody actually knows what happened."


TRACK STAR


Pistorius, who races wearing carbon fiber prosthetic blades after he was born without a fibula in both legs, was the first double amputee to run in the Olympics and reached the 400 meter semi-finals in London 2012.


Respected worldwide for triumphing over his disabilities to compete on a level playing field with able-bodied athletes, his sponsorship deals are thought to be worth $2 million a year.


In last year's Paralympics he suffered his first loss over 200 meters in nine years. After the race he questioned the legitimacy of Brazilian winner Alan Oliveira's prosthetic blades, though he was quick to express his regret for the comments.


Pistorius is sponsored by British telecoms firm BT, sunglasses maker Oakley, sports apparel maker Nike and French designer Thierry Mugler.


"We are shocked by this terrible, tragic news. We await the outcome of the South African police investigation," a BT spokeswoman said before Pistorius was charged.


A Nike spokesman in London said before hearing of the murder charge that the company was "saddened by the news, but we have no further comment to make at this stage".


Pistorius also has a sponsorship deal with Icelandic prosthetics manufacturer Ossur.


"I can only say that our thoughts and prayers are with Oscar and the families involved in the tragedy," Ossur CEO Jon Sigurdsson told Reuters. "It is completely premature to discuss or speculate on our business relationship with him."


Neighbors expressed shock at the arrest of a "good guy".


"It is difficult to imagine an intruder entering this community, but we live in a country where intruders can get in wherever they want to," said one Silverlakes resident, who did not want to be named.


"Oscar is a good guy, an upstanding neighbor, and if he is innocent I feel for this guy deeply," he said.


(Additional reporting by Sherilee Lakmidas, David Dolan, Ed Cropley, Jon Herskovitz, Keith Weir and Kate Holton; Writing by Ed Cropley; Editing by Peter Graff and Will Waterman)



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Kim Kardashian & Kanye West Involved in Security Breach at JFK















02/14/2013 at 08:00 AM EST







Kim Kardashian and Kayne West


Splash News Online


Sorry, Kim Kardashian and Kanye West. You'll have to endure the normal hassles of air travel, too.

The couple, returning from Brazil, were involved in a security breach at New York's John F. Kennedy International Airport on Tuesday morning, when a TSA employee allowed them to skip a security checkpoint while transferring flights.

"An airline employee escorted the two travelers through a non-public area in order to provide expedited access to their domestic flight," a TSA spokesman said, according to New York's Daily News.

The spokesman said the employee was to blame – not Kardashian, 32, and West, 35.

The couple, who are expecting a baby, had returned from Carnival in Brazil and were transferring to a flight to Los Angeles. They made the connection but were forced to disembark and be screened privately, delaying the flight for an hour.

TMZ.com first reported the incident.

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Morning-after pill use up to 1 in 9 younger women


NEW YORK (AP) — About 1 in 9 younger women have used the morning-after pill after sex, according to the first government report to focus on emergency contraception since its approval 15 years ago.


The results come from a survey of females ages 15 to 44. Eleven percent of those who'd had sex reported using a morning-after pill. That's up from 4 percent in 2002, only a few years after the pills went on the market and adults still needed a prescription.


The increased popularity is probably because it is easier to get now and because of media coverage of controversial efforts to lift the age limit for over-the-counter sales, experts said. A prescription is still required for those younger than 17 so it is still sold from behind pharmacy counters.


In the study, half the women who used the pills said they did it because they'd had unprotected sex. Most of the rest cited a broken condom or worries that the birth control method they used had failed.


White women and more educated women use it the most, the research showed. That's not surprising, said James Trussell, a Princeton University researcher who's studied the subject.


"I don't think you can go to college in the United States and not know about emergency contraception," said Trussell, who has promoted its use and started a hot line.


One Pennsylvania college even has a vending machine dispensing the pills.


The morning-after pill is basically a high-dose version of birth control pills. It prevents ovulation and needs to be taken within a few days after sex. The morning-after pill is different from the so-called abortion pill, which is designed to terminate a pregnancy.


At least five versions of the morning-after pills are sold in the United States. They cost around $35 to $60 a dose at a pharmacy, depending on the brand.


Since it is sold over-the-counter, insurers generally only pay for it with a doctor's prescription. The new Affordable Care Act promises to cover morning-after pills, meaning no co-pays, but again only with a prescription.


The results of the study were released Thursday by the Centers for Disease Control and Prevention. It's based on in-person interviews of more than 12,000 women in 2006 through 2010. It was the agency's first in-depth report on that issue, said Kimberly Daniels, the study's lead author.


The study also found:


—Among different age groups, women in their early 20s were more likely to have taken a morning-after pill. About 1 in 4 did.


—About 1 in 5 never-married women had taken a morning-after pill, compared to just 1 in 20 married women.


—Of the women who used the pill, 59 percent said they had done it only once, 24 percent said twice, and 17 percent said three or more times.


A woman who uses emergency contraception multiple times "needs to be thinking about a more regular form" of birth control, noted Lawrence Finer, director of domestic research for the Guttmacher Institute, a nonprofit group that does research on reproductive health.


Also on Thursday, the CDC released a report on overall contraception use. Among its many findings, 99 percent of women who've had sex used some sort of birth control. That includes 82 percent who used birth control pills and 93 percent whose partner had used a condom.


___


Online:


CDC report: http://www.cdc.gov/nchs/


Emergency contraception info: http://ec.princeton.edu/index.html


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Stock futures dip on Europe, Japan growth data; Cisco weighs


NEW YORK (Reuters) - Stock futures fell on Thursday in the wake of weaker-than-expected growth data from Europe and Japan and a disappointing outlook from technology bellwether Cisco Systems .


Though weakness in Europe has persisted over recent quarters, underwhelming economic growth data from the region and from Japan, which could impact global growth and U.S. corporate profits, may spur profit-taking in U.S. equities.


The French and German economies shrank more than expected in the fourth quarter of 2012, and a 0.6 percent contraction in the euro zone was the steepest for the bloc since the first quarter of 2009.


Japan's GDP shrank 0.1 percent in the fourth quarter, crushing expectations of a modest return to growth and adding weight to the new government's push for radical policy steps to revive growth.


The S&P 500 is up 6.6 percent so far this year, though a dearth of fresh incentives has kept trading thin over the past few sessions.


"We've had a real absence of news in the marketplace and any bit of information that suggests the recovery is not underway is probably being given more significance that it might have," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.


He said that following a mild climb on the S&P 500, traders were "cashing in a little bit."


Shrinking European economies translated to a 5-percent drop in revenue from the region for Cisco Systems, which reported its results Wednesday. The company's shares fell 1.6 percent in premarket trading.


S&P 500 futures fell 4 points and were below 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 fell 62 points, and Nasdaq 100 futures lost 11 points.


H.J. Heinz Co shares jumped 20 percent in premarket trading after it said that Warren Buffett's Berkshire Hathaway and 3G Capital will buy the company for $72.50 a share, or $28 billion including debt.


American Airlines and US Airways Group said they plan to merge in a deal that will form the world's biggest air carrier, with an equity valuation of about $11 billion. US Airways shares rose 1.3 percent in premarket trading.


Nvidia shares fell 1.5 percent in premarket trading after the chip maker's revenue outlook missed expectations on Wednesday, pointing to a slowing PC industry and slower production of tablets using its chips.


On the other hand, shares of the world's largest chip gear maker Applied Materials rose Wednesday after the closing bell following a better-than-expected earnings report and outlook.


Best Buy shares fell 2.8 percent in premarket trading; sources said on Wednesday the electronics retailer's founder may scrap a buyout bid and instead line up investors to take a minority position.


(Editing by Bernadette Baum)



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Insight: Divided Damascus confronted by all-out war


DAMASCUS (Reuters) - MiG warplanes roar low overhead to strike rebels fighting to oust President Bashar al-Assad on the fringes of Damascus, while artillery batteries pound the insurgents from hills overlooking a city divided between all-out war and a deceptive calm.


Whole families can be obliterated by air raids that miss their targets. Wealthy Syrians or their children are kidnapped. Some are returned but people tell grim tales of how others are tortured and dumped even when the ransom is paid.


People also tell of prisoners dying under torture or from infected wounds; of looting by the government's feared shabbiha militias or by rebels fighting to throw out the Assad family.


That is one Damascus. In the other, comprising the central districts of a capital said to be the oldest continually inhabited city in the world, the restaurant menus are full, the wine is cheap and the souks are packed with shoppers.


Employees report for work, children go to school and shops are open, seemingly undeterred by the din and thud of war.


The two cities exist a few miles apart - for now.


For Damascus and its outskirts are rapidly descending into civil war and everything that comes with it - lawlessness, looting, kidnapping and revenge killings. Like the rest of the country, the capital and its suburbs are crawling with armed gangs.


"Anybody can come to you pretending he is security and grab you in broad daylight, put you in a car and speed off and nobody dares interfere or rescue you," says Lama Zayyat, 42. "A girl in the 7th grade was kidnapped and her father was asked to pay a big ransom. The same happened to other children," she said.


Nobody really knows who is behind the kidnappings. In one gang, one brother is in charge of abductions while another brother negotiates with the victims. The fear is palpable.


NO SECT HAS BEEN SPARED


The war has not yet reached the heart of the capital, but it is shredding the suburbs. In the past week, government troops backed by air power unleashed fierce barrages on the east of the city in an attempt to flush out rebel groups.


Most of central Damascus is controlled by Assad's forces, who have erected checkpoints to stop bomb attacks. The insurgents have so far failed to take territory in the center.


Just as loyalist forces seem unable to regain control of the country, there looks to be little chance the rebels can storm the center of Damascus and attack the seat of Assad's power.


For most of last week the army rained shells on the eastern and southern neighborhoods of Douma, Jobar, Zamalka and Hajar al-Aswad, using units of the elite Republican Guard based on the imposing Qasioun mountain that looms over the city.


The rebels, trying to break through the government's defense perimeter, were periodically able to overrun roadblocks and some army positions, but at heavy cost.


Jobar and Zamalka are situated near military compounds housing Assad's forces, while Hajar al-Aswad in the south is one of the gateways into the city, close to Assad's home and the headquarters of his republican guard and army.


Since the uprising began two years ago, 70,000 people have been killed, 700,000 have been driven from Syria and millions more are displaced, homeless and hungry. No section of society has been spared, whether Christians, Alawites or Sunnis, but in every community it is the poor who are suffering most.


Electricity is sporadic. Hospitals are understaffed as so many doctors - often targeted on suspicion of treating rebel wounded - have fled. Hotels and businesses barely function.


Outside petrol stations and bakeries, queues are long and supplies often run out, meaning people have to come back the next day. Those who can afford it pay double on a thriving black market.


The scale of the suffering can be seen in the ubiquitous obituary notices on the walls of Damascus streets - some announcing the deaths of whole families killed by shelling.


As if oblivious of these private daily tragedies, the government insists the situation is under control, while the rebels say the Assads' days are numbered.


NOWHERE NEAR OVER


Ordinary Syrians are convinced their ordeal is nowhere near over. While they believe Assad will not be able to reverse the gains of the rebels, they cannot see his enemies prevailing over his superior firepower, and Russian and Iranian support.


"The regime won't be able to crush the revolution and the rebels won't be able to bring down the regime," said leading opposition figure Hassan Abdel-Azim. "The continuation of violence won't lead to the downfall of the regime, it will lead to the seizure of the country by armed gangs, which will pose a grave danger not only to Syria but to our neighbors".


"Right now no one is capable of winning," said a Damascus-based senior Arab envoy. "The crisis will continue if there is no political process. It is deadlock."


Other diplomats in Damascus say the United States and its allies are getting cold feet about arming the rebels, fearing the growing influence of Islamist radicals such the al-Nusra Front linked to al-Qaeda, banned last year by Washington.


Some remarks recur again and again in Damascus conversations: "Maybe he will stay in power, after all", and, above all, "Who is the alternative to Assad?"


"At first I thought it was a matter of months. That's why I came here and stayed to bear witness to the final moments," said Rana Mardam Beik, a Syrian-American writer. "But it looks like it will be a while so I am thinking of going back to the U.S."


Loyalty to Assad is partly fed by fear of the alternative. Facing a Sunni-dominated revolt, Syria's minorities, including Christians and Assad's own Alawites - an offshoot of Shi'ite Islam - fear they will slaughtered or sidelined if the revolution succeeds and Sunni fundamentalists come to power.


MINORITIES' FEAR


Many Christians are already trying to emigrate to countries such as Sweden, diplomats say.


"The minorities have every right to be frightened because no one knows what is the alternative. Is it a liberal, civic, pluralistic and democratic state, or is the alternative an Islamist extremist rule that considers the minorities infidels and heretics?" said Abdel Azim.


The government tells the minorities the only alternative to Assad is Islamism. Loyalist brutality against the Sunni majority is in danger of making this a self-fulfilling prophecy, by sucking in jihadi extremists from Libya to Saudi Arabia.


"I am not with the regime but we are sure that if Bashar goes the first people they will come for are the Alawites, then the Shi'ites and then us Christians. They are fanatics," said George Husheir, 50, an IT engineer.


At the Saint Joseph Church in Bab Touma, the old Christian quarter of Damascus, Christians in their dozens, mostly middle-aged and older couples, gathered for mass on a Friday morning.


"We don't know what the future holds for us and for this country," said the priest in his sermon. "The Christians of Syria need to pray more."


Nabiha, a dentist in her 40s, said: "Bashar is a Muslim president but he is not a fanatic. He gave us everything. Why shouldn't we love him. Look at us here in our church, we pray, we mark our religious rituals freely, we do what we like and nobody interferes with us."


The fear of the Christians extends to the Alawite and minority Shi'ites. "If Bashar goes we definitely have to leave too because the Sufianis (Sunni Salafis) are coming and they are filled with a sectarian revenge against us," said one wealthy middle class Shi'ite.


COSTLY WAR


Alongside sectarian hatreds, class and tribal acrimony is also surfacing. Wealthy Sunnis in the capital are already in a panic about poor Sunni Islamists from rural areas descending on their neighborhoods.


"When they come they will eat us alive", one rich Sunni resident of Damascus said, repeating what a cab driver dropping him in the posh Abou Roummaneh district told him: "Looting these houses will be allowed."


Yet many activists feel protective of the revolution, despite the brutal behavior of some Islamist rebels.


"People talk about chaos and anarchy after Assad, but so what if we have two years of a messy transition? That is better than to endure another 30 years of this rule," said Rana Darwaza, 40, a Sunni academic in Damascus.


Prominent human rights lawyer Anwar al-Bunni said the suffering is a price that had to be paid. "Those on the ground will continue to fight even with their bare hands", he said.


He said there are thousands of prisoners in horrific conditions in Assad's jails. Some suffocate in overcrowded cells while others die under torture or from untreated wounds. "They don't give them medical treatment or pain killers or antibiotics. They leave them to die," he said.


Close watchers of Syria predict that if there is no settlement in a few months the conflict could go on for years. Yet the economy is collapsing, leaving the government to rely on dwindling foreign reserves, private assets and Iranian funds.


There is no tourism, no oil revenue, and 70 percent of businesses have left Syria, said analyst Nabil Samman. "We are heading for destruction, the future is dark", he added.


Added to the religious animosity between the Sunni majority and the Alawite minority who took control when Hafez al-Assad seized power in 1970 are social and economic grievances fuelled by the predatory practices of the elite.


This resentment extends to young middle class Syrians who feel they have lost a way of life and that their country is being used by regional powers for proxy war.


"All the regional point-scoring is taking place in Syria. We have Libyan fighters and Saudis fighting for freedom in Syria, why are they here? Let them go and demand freedom in their own countries?," said banker Hani Hamaui, 29.


Two years into the uprising, Assad is hanging on. Some will always back him and others want him dead. But many just want an end to the fighting. They may have to wait for some time.


Signs daubed on the gates to the city by Assad's troops are a reminder that the battle for Damascus will be costly. "Either Assad, or we will set the country ablaze", they say.


(Editing by Giles Elgood)



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One Direction, Taylor Swift Among Kids' Choice Awards Nominees









02/13/2013 at 08:50 AM EST







One Direction, (from left) Liam Payne, Louis Tomlinson, Zayn Malik, Niall Horan and Harry Styles


Jon Furniss/AP


Time to get slimed!

Wednesday brought the nominations for Nickelodeon's Kids' Choice Awards, set to air March 23 with Josh Duhamel as host.

For favorite musical group, nominees include Big Time Rush, Bon Jovi, Maroon 5 and One Direction. Favorite Song nominees include: "Call Me Maybe" by Carly Rae Jepsen, "Gagnan Style" by PSY, "We Are Never Ever Getting Back Together" by Taylor Swift, and "What Makes You Beautiful" by One Direction.

"We are delighted with our nominations for the Kids' Choice Awards," One Direction's Harry Styles said in a statement to PEOPLE. "It was amazing to perform 'What Makes You Beautiful' at last year’s show. Thank you as always to our incredible fans and supporters!"

Voting opens in 22 categories on nick.com on Thursday, allowing for a little Valentine's Day love for your favorite TV actors, musicians, sports and film stars. New categories added this year include favorite app and favorite villain.

Voters may also mark their ballots on Facebook using embeddable wall posts and on Twitter with custom hashtags.

This year mark's Nickelodeon's 26th annual awards. The show will be broadcast live from the University of Southern California's Galen Center on March 23, starting at 8 p.m. ET, on Nickelodeon, of course.

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