Wall Street drops on deficit, Middle East concerns

NEW YORK (Reuters) - Stocks slid on Wednesday with declines accelerating after President Barack Obama set up a drawn-out fight over the fiscal cliff when he stuck to his pledge to raise taxes on the wealthy, and as violence increased in the Middle East.

Obama, in his first press conference since re-election, held to his position that marginal tax rates will have to rise to tackle the nation's deficits.

With talks over solving the U.S. "fiscal cliff" in early stages, investors are reacting to the uncertainty by shedding positions.

"I think we will have a last-minute cliffhanger solution," said Michael Cheah, portfolio manager at SunAmerica Asset Management in Jersey City, New Jersey, about a deal to avoid the so-called cliff.

"In the meantime, the market is going to get punched every day."

Without a deal, a series of mandated tax hikes and spending cuts will start to take effect early next year that could push the U.S. economy into a recession.

Taxes on capital gains and dividends could rise as part of the negotiations, pushing investors to sell this year and pay lower taxes on their gains.

Adding to the selling pressure, Israel launched a major offensive against Palestinian militants in Gaza, killing the military commander of Hamas in an air strike and threatening an invasion of the enclave. Egypt said it recalled its ambassador from Israel in response.

"We know Europe's in trouble, China's slowing down ... and now you've got the Middle East flaring up again. It's all hitting at once, and obviously, the market is taking a 'sell first, ask questions later' approach," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati.

Industrial shares led the decline, dragged lower in part by a 1 percent spike in crude prices after the Israeli offensive on Gaza. The S&P industrial sector index <.gspi> fell 2.5 percent.

Wall Street had opened higher after Dow component Cisco Systems Inc reported first-quarter earnings and revenue late Tuesday that beat expectations, driving its stock up 4.8 percent to $17.66. But the positive momentum was short-lived.

The Dow Jones industrial average <.dji> fell 185.23 points, or 1.45 percent, to 12,570.95 at the close. The S&P 500 <.spx> dropped 19.04 points, or 1.39 percent, to 1,355.49. The Nasdaq Composite <.ixic> lost 37.08 points, or 1.29 percent, to 2,846.81.

Both the Dow industrials and the Nasdaq ended at their lowest levels since late June.

The S&P 500 has fallen 5.1 percent in the six sessions since election night. Wednesday marked the benchmark index's lowest close since July 25.

The Russell 2000 <.rut> tumbled 2 percent. The Dow Jones Transportation average <.djt> slid 2.6 percent. FedEx Corp shares dropped 3.7 percent to $87.12. Bank of America shares lost 3.6 percent to $8.99.

In contrast, Facebook shares jumped 12.6 percent to $22.36 as investors were relieved that expiring trading restrictions on a huge block of shares did not trigger an immediate wave of insider selling.

Teen clothing retailer Abercrombie & Fitch Co jumped 34.4 percent to $41.92 after the company reported unexpectedly improved third-quarter results and a full-year outlook that exceeded Wall Street's forecasts.

About 7.53 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, more than the daily average so far this year of about 6.51 billion shares.

On the NYSE, decliners outnumbered advancers by a ratio of almost 9 to 1. On the Nasdaq, about four stocks fell for every one that rose.

(Reporting by Rodrigo Campos; Additional reporting by Steven C. Johnson and Leah Schnurr; Editing by Jan Paschal)

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France recognizes new Syria opposition

CAIRO/PARIS (Reuters) - France became the first European power to recognize Syria's new opposition coalition as the sole representative of its people and said on Tuesday it would look into arming rebels against President Bashar al-Assad once they form a government.

Twenty months into their bloody uprising against Assad, fragmented Syrian opposition groups struck a deal in Qatar on Sunday to form a broad coalition and their leader immediately appealed for European backing.

"I announce today that France recognizes the Syrian National Council as the sole legitimate representative of the Syrian people and as future government of a democratic Syria making it possible to bring an end to Bashar al-Assad's regime," French President Francois Hollande said, breaking ranks with European allies. Six Gulf Arab states took a similar step on Monday.

The question of arming the rebels would be looked at as soon as the rebel coalition formed a transitional government, Hollande told a news conference in Paris.

Arab League and EU foreign ministers meeting in Cairo on Tuesday welcomed the formation of the coalition as an important step forward, although their communiqué showed they had not reached a unanimous decision to recognize it as Syria's sole authority.

The French announcement came just hours after Syria's newly installed opposition leader urged European states to back the opposition so it could buy weapons.

Paris, one of Assad's harshest critics, had previously ruled out arming rebel forces, concerned that weapons could get into the hands of radical Islamists.

Speaking to Reuters as Arab and European ministers met to discuss Syria at the Arab League in Cairo, Mouaz Alkhatib, the Damascus preacher elected unopposed on Sunday to lead the new group, had asked for diplomatic backing.

"I request European states to grant political recognition to the coalition as the legitimate representative of the Syrian people and to give it financial support," he said.

"When we get political recognition, this will allow the coalition to act as a government and hence acquire weapons and this will solve our problems," added Alkhatib, who has been described by supporters as a moderate noted for his embrace of Syria's religious and ethnic minorities.

So far, concerted action on Syria has been thwarted by divisions within the opposition, as well as by big power rivalries and a regional divide between Sunni Muslim foes of Assad and his Shi'ite allies in Iran and Lebanon.

Russia and China, which have lent Assad diplomatic support since the uprising erupted in March last year, have shown no sign of warming towards his Western- and Arab-backed opponents.

"STEP FORWARD"

Cajoled by Qatar and the United States, the ineffectual Syrian National Council, previously the main opposition body based abroad, agreed to join a wider coalition on Sunday.

Britain's foreign minister, William Hague, said the coalition must show it had support within Syria before London would acknowledge it as the rightful government.

"If they have this, yes, we will then recognize them as the legitimate representative of the Syrian people," he told reporters at the Arab-European meeting in Cairo.

The opposition had hoped its new-found unity would clear the way for outside powers to arm the rebels, but Western nations fear such weapons could reach the hands of Islamist militants.

Western concern has also been heightened by documented reports of atrocities by ill-disciplined insurgents.

"Syria's newly created opposition front should send a clear message to opposition fighters that they must adhere to the laws of war and human rights law, and that violators will be held accountable," New York-based Human Rights Watch said.

BORDER VIOLENCE

Assad, whose family has ruled Syria for 42 years, has vowed to fight to the death in a conflict that has already killed an estimated 38,000 people and risks sucking in other countries.

His warplanes again struck homes in Ras al-Ain, a town on the northern border seized by rebels last week. Civilians fled over the border dividing it from the Turkish town of Ceylanpinar and thick plumes of smoke billowed upwards.

Syrian jets and artillery hit the town of Albu Kamal on the frontier with Iraq, where rebels have seized some areas, according to the mayor of the Iraqi border town of Qaim.

Tension also remained high on the Golan Heights, where Israeli gunners have retaliated against stray Syrian mortar fire landing on the occupied plateau in the previous two days.

Twenty months of conflict have created a vast humanitarian crisis, with more than 408,000 Syrians fleeing to neighboring countries and up to four million expected to need aid by early next year, according to the United Nations.

Fighting has also displaced 2.5 million civilians inside Syria, the Syrian Arab Red Crescent estimates.

"If anything, they believe it could be more; this is a very conservative estimate," Melissa Fleming, chief spokeswoman of the U.N. High Commissioner for Refugees, said in Geneva.

"So people are moving, really on the run, hiding," she told a news briefing. "They are difficult to count and access."

In Cairo, Arab League chief Nabil Elaraby urged opposition factions to join Alkhatib's group, formally known as the Syrian National Coalition for Opposition and Revolutionary Forces.

But although six Gulf Arab nations recognized the coalition as Syria's only legitimate representative on Monday, Iraq, Algeria and Lebanon prevented the League from following suit.

Iraq and Lebanon, with influential Shi'ite populations, have generally maintained better relations with Iran and with Assad, whose minority Alawite sect is an offshoot of Shi'ite Islam.

(Additional reporting by Shaimaa Fayed in Cairo and Jonathon Burch in Ceylanpinar, Turkey; Writing by Giles Elgood; Editing by Peter Graff)

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Report: FDA wanted to close Mass pharmacy in 2003

WASHINGTON (AP) — Nearly a decade ago, federal health inspectors wanted to shut down the pharmacy linked to a recent deadly meningitis outbreak until it cleaned up its operations, according to congressional investigators.

About 440 people have been sickened by contaminated steroid shots distributed by New England Compounding Center, and more than 32 deaths have been reported since the outbreak began in September, according to the Centers for Disease Control and Prevention. That has put the Framingham, Mass.-based pharmacy at the center of congressional scrutiny and calls for greater regulation of compounding pharmacies, which make individualized medications for patients and have long operated in a legal gray area between state and federal laws.

The House Energy and Commerce Committee released a detailed history of NECC's regulatory troubles on Monday, ahead of a meeting Wednesday meeting to examine how the outbreak could have been prevented. The 25-page report summarizes and quotes from FDA and state inspection memos, though the committee declined to release the original documents.

The report shows that after several problematic incidents, Food and Drug Administration officials in 2003 suggested that the compounding pharmacy be "prohibited from manufacturing" until it improved its operations. But FDA regulators deferred to their counterparts in Massachusetts, who ultimately reached an agreement with the pharmacy to settle concerns about the quality of its prescription injections.

The congressional report also shows that in 2003 the FDA considered the company a pharmacy. That's significant because in recent weeks public health officials have charged that NECC was operating more as a manufacturer than a pharmacy, shipping thousands of doses of drugs to all 50 states instead of small batches of drugs to individual patients. Manufacturers are regulated by the FDA and are subject to stricter quality standards than pharmacies.

The report offers the most detailed account yet of the numerous regulatory complaints against the pharmacy, which nearly date back to its founding in 1998. Less than a year later, the company was cited by the state pharmacy board for providing doctors with blank prescription pads with NECC's information. Such promotional items are illegal in Massachusetts and the pharmacy's owner and director, Barry Cadden, received an informal reprimand, according to documents summarized by the committee.

Cadden was subject to several other complaints involving unprofessional conduct in coming years, but first came to the FDA's attention in 2002. Here are some key events from the report highlighting the company's early troubles with state and federal authorities:

__ In March of 2002 the FDA began investigating reports that five patients had become dizzy and short of breath after receiving NECC's compounded betamethasone repository injection, a steroid used to treat joint pain and arthritis that's different from the one linked to the current meningitis outbreak.

FDA inspectors visited NECC on April 9 and said Cadden was initially cooperative in turning over records about production of the drug. But during a second day of inspections, Cadden told officials "that he was no longer willing to provide us with any additional records," according to an FDA report cited by congressional investigators. The inspectors ultimately issued a report citing NECC for poor sterility and record-keeping practices but said that "this FDA investigation could not proceed to any definitive resolution," because of "problems/barriers that were encountered throughout the inspection."

__ In October of 2002, the FDA received new reports that two patients at a Rochester, N.Y., hospital came down with symptoms of bacterial meningitis after receiving a different NECC injection. The steroid, methylprednisolone acetate, is the same injectable linked to the current outbreak and is typically is used to treat back pain. Both patients were treated with antibiotics and eventually recovered, according to FDA documents cited by the committee.

When officials from the FDA and Massachusetts Board of Pharmacy visited NECC later in the month, Cadden said vials of the steroid returned by the hospital had tested negative for bacterial contamination. But when FDA scientists tested samples of the drug collected in New York they found bacterial contamination in four out of 14 vials sampled. It is not entirely clear whether FDA tested the same lot shipped to the Rochester hospital.

__ At a February 2003 meeting between state and federal officials, FDA staff emphasized "the potential for serious public consequences if NECC's compounding practices, in particular those relating to sterile products, are not improved." The agency issued a list of problems uncovered in its inspection to NECC, including a failure to verify if sterile drugs met safety standards.

But the agency decided to let Massachusetts officials take the lead in regulating the company, since pharmacies are typically regulated at the state level. It was decided that "the state would be in a better position to gain compliance or take regulatory action against NECC as necessary," according to a summary of the meeting quoted by investigators.

The FDA recommended the state subject NECC to a consent agreement, which would require the company to pass certain quality tests to continue operating. But congressional investigators say Massachusetts Board of Pharmacy did not take any action until "well over a year later."

__ In October 2004, the board sent a proposed consent agreement to Cadden, which would have included a formal reprimand and a three-year probationary period for the company's registration. The case ended without disciplinary action in 2006, when NECC agreed to a less severe consent decree with the state.

Massachusetts officials indicated Tuesday they are still investigating why NECC escaped the more severe penalty.

"I will not be satisfied until we know the full story behind this decision," the state's interim health commissioner Lauren Smith said in a transcript of her prepared testimony released a day ahead of delivery. Smith is one of several witnesses scheduled to testify Wednesday, including FDA Commissioner Margaret Hamburg.

The committee will also hear from the widow of 78-year-old Eddie C. Lovelace, a longtime circuit court judge in southern Kentucky. Autopsy results confirmed Lovelace received fungus-contaminated steroid injections that led to his death Sept. 17.

Joyce Lovelace will urge lawmakers to work together on legislation to stop future outbreaks caused by compounded drugs, according to a draft of her testimony.

"We now know that New England Compounding Pharmacy, Inc. killed Eddie. I have lost my soulmate and life's partner with whom I worked side by side, day after day for more than fifty years," Lovelace states.

Barry Cadden is also scheduled to appear at the hearing, after lawmakers issued a subpoena to compel him to attend.

The NECC has been closed since early last month, and Massachusetts officials have taken steps to permanently revoke its license. The pharmacy has recalled all the products it makes, including 17,700 single-dose vials of a steroid that tested positive for the fungus tied to the outbreak.

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Fed's Yellen backs holding rates near zero to 2016

BERKELEY, California (Reuters) - Federal Reserve Vice Chair Janet Yellen said on Tuesday that U.S. short-term interest rates may need to stay near zero until early 2016, a half year longer than Wall Street dealers expect, to forcefully lift employment.

The central bank's No. 2 official, viewed as a front-runner to succeed Fed Chairman Ben Bernanke when his term expires in January 2014, also said she strongly backed adopting inflation and unemployment thresholds to guide future policy.

That would allow the Fed to move away from shaping financial market expectations with calendar dates. After its last meeting in October, the Fed reiterated that it expected to keep the overnight federal funds rate near zero until at least mid-2015.

Yellen, however, argued an optimal policy would keep rates on hold for longer at the cost of a bit more inflation.

"This highly accommodative policy path generates a faster reduction in unemployment than in the baseline, while inflation overshoots the (Fed policy) committee's 2.0 percent objective for several years," she told students at the Haas School of Business at the University of California, Berkeley.

As a baseline, Yellen used an early September consensus from Wall Street firms, which showed they expected rates to remain near zero only through the first half of 2015.

Yellen is seen as one of the more dovish members of the Fed's policy-setting committee in her willingness to support aggressive efforts to spur job growth, but some other members are more hawkish in their concerns about inflation.

Dallas Federal Reserve Bank President Richard Fisher, asked about the 2016 date, said there was a limit to how much more monetary policy could do to spur growth.

"There is a limit. We'll have to discuss as a committee what that limit is ... we just cannot continue down the road of infinite expansion of monetary policy," he told CNBC television.

But Fisher, who is not a voter this year, also said that inflation and inflation expectations remained under control, and urged U.S. lawmakers to tackle a year-end fiscal cliff of potential tax hikes and spending cuts to remove uncertainty that he saw holding back business hiring.

The Fed cut overnight rates to near zero in December 2008 and it has bought around $2.3 trillion in securities to drive other borrowing costs down and spur a stronger recovery.

While there are signs the economy is gaining a bit of speed, the jobless rate remains stubbornly high at 7.9 percent.

POLICY PATIENCE

In January, the Fed adopted what it termed a "balanced approach" to its mandated goals of full employment and stable prices, suggesting it would temporarily tolerate a bit more inflation to move the jobless rate lower.

On prices, it normally targets 2.0 percent inflation and policymakers' current estimates suggest they view an unemployment rate of between 5.2 percent and 6.0 percent as consistent with maximum employment.

Yellen made clear that she does not view the inflation target as a ceiling and that slightly higher inflation may well be needed for the Fed to fulfill its promise to pursue a "balanced" monetary policy.

"The optimal policy to implement this 'balanced approach' to minimize deviations from the inflation and unemployment goals involves keeping the federal funds rate close to zero until early 2016," she said. She said rates would stay below the path expected by Wall Street dealers through 2018.

COMMUNICATING ON COMMUNICATIONS

Yellen stressed that communicating Fed intentions clearly was vital to the success of its policies, and emphatically endorsed adopting numerical thresholds for unemployment and inflation to guide expectations on when rates would go back up.

"Several of my ... colleagues have advocated such an approach and I am also strongly supportive," she said.

Chicago Federal Reserve Bank President Charles Evans has suggested holding rates steady until unemployment is under 7.0 percent, provided inflation remains below 3.0 percent. Minneapolis Fed chief Narayana Kocherlakota outlined thresholds of 5.5 percent unemployment and 2.25 percent inflation.

"The idea is to define a zone of combinations of the unemployment rate and inflation within which the (Fed) would continue to hold the federal funds rate in its current, near-zero range," Yellen said.

She said that would help shape expectations of the Fed's likely response to incoming data. Even so, she said the thresholds would not trigger a rate hike decision, which would require "further committee deliberation and judgment."

(Writing by Alister Bull; Editing by Lisa Shumaker)

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New Syria opposition seeks recognition; Israel fires from Golan

DOHA/CAIRO (Reuters) - Syria's newly named opposition leader, a soft-spoken cleric backed by Washington and the Gulf Arab states, launched his quest on Monday for international recognition of a government-in-waiting to topple President Bashar al-Assad.

In a sign of the danger that the 20-month civil war could spread across Syria's borders, Israeli forces said they fired "direct hits" on Syrian artillery in response to a mortar strike into the Israeli-occupied Golan Heights.

Western and Arab enemies of Assad hope the creation of a new Syrian National Coalition for Opposition and Revolutionary Forces can finally unify a fractious and ineffective opposition.

Mouaz Alkhatib, a former imam of a Damascus mosque, flew to Cairo to seek the Arab League's blessing for the new assembly, the day after he was unanimously elected to lead it. He made a concerted effort to address the sectarian and ethnic acrimony underlying 20 months of civil war that has killed 38,000 people.

"We demand freedom for every Sunni, Alawi, Ismaili, Christian, Druze, Assyrian ... and rights for all parts of the harmonious Syrian people," he said, calling on Syrian soldiers to desert and all sects to unite.

His assembly was recognised by the six Sunni Muslim-ruled kingdoms of the Gulf Cooperation Council as the "legitimate representative of the Syrian people". Washington said it would back it "as it charts a course toward the end of Assad's bloody rule and the start of the peaceful, just, democratic future".

Shooting across the line that divides Syria from the Israeli-occupied Golan was just the latest spillover of violence that has alarmed neighbors including Turkey and Lebanon.

Israeli military sources said Israel hit Syrian army mobile artillery on Monday, the second straight day it fired back in retaliation for what it said were stray mortars hitting Golan.

"We will not allow our borders to be breached or our citizens to be fired at," Prime Minister Benjamin Netanyahu said. Israel seized the Golan Heights from Syria in 1967. Although the two countries have not fought over the territory since 1973, they are still officially at war.

U.N. Secretary-General Ban Ki-Moon called on Israel and Syria to halt firing.

In the north, where fighting has sent thousands of Syrian refugees fleeing into Turkey, a Reuters correspondent saw Syrian jets and helicopters bomb Ras al-Ain, a border town taken by rebels last week. Bombs landed just meters from the frontier, sending up plumes of black smoke.

Opposition groups said 12-16 people died in the air strikes. Turkey said it did not appear that the planes had entered its air space. It is discussing with NATO allies deploying Patriot air defense missiles on the border.

WRANGLING

Rebels and opposition politicians formed Alkhatib's new opposition coalition after days of wrangling in Qatar under intense U.S. and Qatari pressure.

Backers hope the new body will give rebels inside Syria more clout and reassure religious and ethnic minorities, after a Syrian National Council (SNC) made up mainly of exiled Islamists proved ineffective as the main opposition voice.

Western and Arab opponents of Assad want the coalition to attract support from minority sects who had been alienated from the opposition by the prominence of well-organized Sunnis from the Muslim Brotherhood. They also hope to rein in Islamist fighters, some of whom they believe are linked to al Qaeda.

"Alkhatib is a dynamic, progressive Islamist, popular in Damascus and the rest of Syria," said Mazen Adi, a prominent Syrian human rights defender who worked with Alkhatib before the revolt. "He is not a trigger-happy Jihadist, and he can play a role in containing the extremist groups."

Alkhatib met Arab League chief Nabil Elaraby before the gathering of Arab foreign ministers in Cairo. European foreign ministers are due to join them on Tuesday.

"The most important thing that could come out from (Monday's) meeting is a form of recognition for the new Syrian council alliance that was established in Doha," said one Arab diplomat, speaking before the talks on condition of anonymity.

A League official said any recognition of the opposition would probably avoid describing it as the sole legitimate representative of the Syrian people, because some Arab states were still reluctant to jettison Assad.

"There are still Arab states like Iraq and Lebanon that are not fully supportive of the Syrian revolt," the official said, also on condition he not be identified.

Alkhatib, in his early 50s, was jailed several times for criticizing Assad before fleeing into exile this year. He has long promoted a liberal Islam tolerant of Syria's Christian, Alawite and other minorities, activists say.

Hassan Hassan, a Syrian commentator based in the United Arab Emirates, said Alkhatib, as an independent cleric, would be a counterweight to growing influence of the Muslim Brotherhood.

"He's been active for a long time, campaigning against the idea of retribution and extremism. He talks about liberty and freedom for the masses. So he is perceived as a credible figure," Hassan said.

Russia, which with China has foiled U.N. action on Syria and views Assad's opponents as pawns of the West, urged the new body to negotiate and to reject outside meddling.

Asked if China recognised the new coalition, Foreign Ministry spokesman Hong Lei called on all parties to initiate "a political transition process guided by the Syrian people".

It remains to be seen whether the Coalition can succeed where the exiled SNC failed in overcoming mutual suspicion and in-fighting that weakened the opposition.

"This is a significant step forward, because they finally seem to be forging a more broadly-based platform that includes the SNC but without the SNC taking the lion's share," said Salman Shaikh, director of the Doha Brookings Center think tank.

(Additional reporting by Andrew Hammond in Doha, Khaled Yacoub Oweis in Amman, Jonathon Burch in Ceylanpinar, Crispian Balmer in Jerusalem, Arshad Mohammed in Washington, Michael Martina in Beijing, Steve Gutterman in Moscow, Regan Doherty in Doha and Ayman Samir in Cairo; Writing by Peter Graff; Editing by Giles Elgood and Philippa Fletcher)

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Lakers intrigued by chance to play for D’Antoni

EL SEGUNDO, Calif. (AP) — Pau Gasol got home from the game and read about it on Twitter, while Dwight Howard got a midnight message on his BlackBerry. They shared most Los Angeles Lakers fans’ mix of surprise, trepidation and anticipation.

Just when everybody thought the Lakers were getting back together with Phil Jackson, they switched course in the middle of the night and went with Mike D’Antoni.

What a weekend in Hollywood — and the real drama isn’t over yet.

The Lakers reacted with ample excitement and a little bewilderment Monday to their front office’s surprising decision to hire D’Antoni as coach Mike Brown’s replacement over Jackson, the 11-time champion who discussed the job at his home Saturday and apparently wanted to return. D’Antoni didn’t even interview for the job in person, speaking to the Lakers over the phone.

“It has been crazy, but all this stuff will just make this team stronger,” said Howard, who has been in a Lakers uniform for about six weeks. “Everything that we’ve been through so far, it’s going to make us stronger, and we have to look at this as a positive situation.”

The Lakers’ third coach in four days won’t take over the team until later in the week. D’Antoni still hadn’t been cleared to travel Monday after undergoing knee replacement surgery earlier in the month, although the Lakers are optimistic the former Knicks and Suns coach will arrive in Los Angeles on Wednesday.

So interim coach Bernie Bickerstaff was still in charge Monday when the Lakers gathered for an informal workout ahead of Tuesday’s game against San Antonio. Just two weeks into the regular season, the Lakers (3-4) are about to start over with a new offense and another coaching staff — and a renewed certainty they’re expected to compete for a title this season.

“It’s been a zoo,” said forward Antawn Jamison, a 15-year NBA veteran who played for D’Antoni on a U.S. national team. “But as I was telling somebody, it’s just a typical day here in L.A. It’s interesting. … It should be a lot easier to adjust to than the system we were trying to get adjusted to early on in the season. We’ve got Steve (Nash) that can help us out.”

Two Lakers who supported both Brown and his two potential replacements weren’t available in El Segundo to weigh in on the hire. Nash missed the workout while getting treatment on his injured leg, while Kobe Bryant left before it ended to share a helicopter ride back home to Orange County with point guard Steve Blake, who needed an exam on his abdominal injury.

And the tall, professorial coach with all the rings wasn’t at the Lakers’ training complex at all.

Just 24 hours after Jackson seemed headed back to his oversized chair on the Staples Center bench, D’Antoni had the job.

It’s too soon to tell how the Buss family’s latest counterintuitive move will sit with Lakers fans, who chanted “We want Phil!” during the club’s weekend games, both victories after a 1-4 start.

“I think everybody had expectations about it, and they were all pretty high,” Gasol said of Jackson’s potential return. “We all understood what Phil brings to the table … and what he means to the city and the franchise. It just couldn’t work out for whatever reason.”

Jackson issued a statement to a handful of media outlets Monday, implying he was essentially offered the job after meeting with Lakers owner Jim Buss and general manager Mitch Kupchak. Jackson thought he would be able to come back to the Lakers on Monday with his decision, but instead was awakened by a midnight phone call from Kupchak.

“The decision is of course theirs to make,” Jackson said in his statement. “I am gratified by the groundswell of support from the Laker fans who endorsed my return, and it is the principal reason why I considered the possibility.”

The Lakers largely echoed the thoughts of Howard, who was looking forward to playing for Jackson: “Management had to do what they felt is best for the team, and we as players have got to find a way to win.”

The Lakers publicly offered no reason for passing over the coach with the most championships in NBA history. Although nobody could claim the Buss family is afraid of spending money, Brown is still owed well over $ 10 million for the remaining three seasons on his four-year, $ 18 million contract, while D’Antoni will make $ 4 million a season for the next three years — and their salaries together might be less than what Jackson would command.

The Lakers largely know what they would get with Jackson, but D’Antoni intrigues this older, top-heavy team with an urgency to contend for a title before Howard’s free agency next summer and Bryant’s possible retirement in a few years.

Howard and Gasol both believe D’Antoni’s up-tempo style can work well for the Lakers. Howard would seem to be a natural to partner with Nash in the pick-and-roll attacks loved by D’Antoni and Nash, although Gasol doesn’t immediately fit into the definition of a big man who can play on the perimeter and shoot 3-pointers.

“It’s a great system, (but) I don’t think he ever had a defender such as myself or a defender such as Dwight Howard on those teams,” Metta World Peace said. “I don’t think he ever coached those type of players, so his defense should be self-explanatory, and his offense is amazing, so it should be fun for Laker fans.”

The rest of the NBA sat back and watched the Lakers’ drama with amusement over the past two days, with Dallas owner Mark Cuban weighing in gleefully on the mess: “I hope they have to do it again and again and again.”

Jackson’s flirtation with the job is the strongest indication yet that he’s interested in coaching again, which makes him a prime candidate for another franchise. Yet D’Antoni also received praise around the league — even from New York, where he resigned last March after failing to win a playoff game in four years with the Knicks.

“Despite all the hoopla … that was going on about me and Mike, we actually have a pretty good relationship, especially behind closed doors,” Carmelo Anthony said. “We actually talked a lot, talked basketball. Hopefully he brings some positive energy over there. Anytime guys are losing like that, there’s always negativity, a lot of negative energy. So sometimes change is better.”

Added Dwyane Wade, who has played for D’Antoni on the U.S. national team: “He has a tough job ahead of him, but I’m sure he’s excited about the opportunity that he gets to be with America’s team.”

___

AP Sports Writers Brian Mahoney and Chris Duncan contributed to this report.

Gadgets News Headlines – Yahoo! News

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One Direction on What They Look for in a Girl

Ellen DeGeneres is holding her biggest outdoor concert ever with British pop sensation One Direction on Thursday, and we have an advance clip.

RELATED: One Direction Plays Catch with Super Bowl Champ

During the sit-down portion, the boys answer the crucial questions: Which members are single and what do they look for in a girl?

"I like someone that's cute. Someone I can have a laugh with. And I also like people that are American. And you all qualify," said Niall Horan, 19, sending the crowd of teenage girls into frenzy.

Tune in to The Ellen DeGeneres Show November 15 for the full interview and concert. The band's sophomore studio album Take Me Home is available now.

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British medical journal slams Roche on Tamiflu

LONDON (AP) — A leading British medical journal is asking the drug maker Roche to release all its data on Tamiflu, claiming there is no evidence the drug can actually stop the flu.

The drug has been stockpiled by dozens of governments worldwide in case of a global flu outbreak and was widely used during the 2009 swine flu pandemic.

On Monday, one of the researchers linked to the BMJ journal called for European governments to sue Roche.

"I suggest we boycott Roche's products until they publish missing Tamiflu data," wrote Peter Gotzsche, leader of the Nordic Cochrane Centre in Copenhagen. He said governments should take legal action against Roche to get the money back that was "needlessly" spent on stockpiling Tamiflu.

Last year, Tamiflu was included in a list of "essential medicines" by the World Health Organization, a list that often prompts governments or donor agencies to buy the drug.

Tamiflu is used to treat both seasonal flu and new flu viruses like bird flu or swine flu. WHO spokesman Gregory Hartl said the agency had enough proof to warrant its use for unusual influenza viruses, like bird flu.

"We do have substantive evidence it can stop or hinder progression to severe disease like pneumonia," he said.

In the U.S., the Centers for Disease Control and Prevention recommends Tamiflu as one of two medications for treating regular flu. The other is GlaxoSmithKline's Relenza. The CDC says such antivirals can shorten the duration of symptoms and reduce the risk of complications and hospitalization.

In 2009, the BMJ and researchers at the Nordic Cochrane Centre asked Roche to make all its Tamiflu data available. At the time, Cochrane Centre scientists were commissioned by Britain to evaluate flu drugs. They found no proof that Tamiflu reduced the number of complications in people with influenza.

"Despite a public promise to release (internal company reports) for each (Tamiflu) trial...Roche has stonewalled," BMJ editor Fiona Godlee wrote in an editorial last month.

In a statement, Roche said it had complied with all legal requirements on publishing data and provided Gotzsche and his colleagues with 3,200 pages of information to answer their questions.

"Roche has made full clinical study data ... available to national health authorities according to their various requirements, so they can conduct their own analyses," the company said.

Roche says it doesn't usually release patient-level data available due to legal or confidentiality constraints. It said it did not provide the requested data to the scientists because they refused to sign a confidentiality agreement.

Roche is also being investigated by the European Medicines Agency for not properly reporting side effects, including possible deaths, for 19 drugs including Tamiflu that were used in about 80,000 patients in the U.S.

____

Online:

www.bmj.com.tamiflu/

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Stocks extend losses after weekly drop on fiscal worry

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Syria's opposition groups strike unity deal against Assad

DOHA (Reuters) - Syria's fractious opposition finally put aside fierce arguments to rally behind a new leader within a new coalition that its Western and Arab backers hope can topple Bashar al-Assad and take over the country.

After days of wrangling in Qatar under constant cajoling by exasperated Arab, U.S. and other officials, representatives of groups including rebel fighters, veteran dissidents and ethnic and religious minorities agreed on Sunday to join a new assembly that can form a government-in-exile. They unanimously elected reformist Damascus cleric Mouaz al-Khatib as its president.

Khatib, a soft-spoken preacher who was once imam of the ancient Umayyad Mosque in Damascus, immediately called on soldiers to quit the Syrian army and on all sects to unite.

"We demand freedom for every Sunni, Alawi, Ismaili (Shi'ite), Christian, Druze, Assyrian ... and rights for all parts of the harmonious Syrian people," he told reporters.

It remains to be seen whether the Syrian National Coalition for Opposition and Revolutionary Forces can overcome the mutual suspicions and in-fighting that have weakened the 20-month-old drive to end four decades of rule by President Assad's family.

But for allies who see it emulating Libya's Transitional National Council, the deal was welcome on a day when Israel fired a missile after a Syrian mortar bomb hit the Golan Heights and Assad's air force strafed along Turkey's border.

"We will strive from now on to have this new body recognised completely by all parties ... as the sole legitimate representative of the Syrian people," said Prime Minister Sheikh Hamad bin Jassim of Qatar, an important supporter of the rebels.

Turkish Foreign Minister Ahmed Davutoglu said there was "no excuse any more" for foreign governments not to support an opposition whose internal divisions had given many pause.

The United States had also strongly promoted the plan for the Doha meeting to unite the various factions and, notably, subsume the previously ineffectual Syrian National Council into a wider body that would be more inclusive of minorities from a country of great ethnic and religious diversity.

France, a vocal backer of the rebels and which once ruled Syria, hailed the deal. "France will work with its partners to secure international recognition of this new entity as the representative of the aspirations of the Syrian people," Foreign Minister Laurent Fabius said in a statement in which he called the Assad government "the criminal regime in Damascus".

STALEMATE

Twenty months after street demonstrations inspired by the Arab Spring drew a military response from Assad, his enemies hope a more cohesive opposition can break a stalemate in the civil war and win more military and diplomatic support from allies who have been wary of the influence of anti-Western militants, some of them linked to al Qaeda.

While there has been renewed talk in Turkey and elsewhere of providing some sort of no-fly zones or other protection for refugees and the lightly armed rebels facing Assad's air force, Western governments have shown little appetite for new military ventures in such a complex Arab state.

And Russia and China, which have blocked previous moves against Assad in the United Nations Security Council, are unlikely swiftly to alter positions which call for dialogue with Assad and view opposition groups as being in thrall to the West.

Regional power Iran, in whose Shi'ite brand of Islam Assad's Alawite minority has its religious roots, remains firmly behind the president in a conflict which pits him against majority Sunni Muslims supported by Iran's Sunni Arab adversaries.

OPPOSITION

After long arguments over whether and how to form the new opposition assembly, the speed with which a consensus emerged within hours to ensure that Khatib stood unopposed for the post of president was notable and may encourage its supporters.

His deputies will be Riad Seif, a veteran dissident who had proposed the U.S.-backed initiative to set up an umbrella group uniting groups inside and outside Syria, and Suhair al-Atassi, one of the relatively few women with a leading role. Delegates said a third deputy may yet be named from among ethnic Kurds.

Businessman Mustafa Sabbagh was elected general secretary.

Khatib, 50, was jailed several times for criticising Assad. He finally fled into exile this year.

"This is a serious step against the regime and a serious step towards freedom," Syrian National Council leader George Sabra said of Khatib, who has long promoted a liberal Islam tolerant of Syria's Christian, Alawite and other minorities.

Critics of the SNC had said it was too much influenced by the Sunni Islamist Muslim Brotherhood and too little open to minorities, including Alawites, some 10 percent of the population who fear a backlash if Assad is overthrown after a war that has taken on increasingly sectarian characteristics.

SNC member Wael Merza said all Assad's opponents were now welcome. "We are open to all the real opposition powers that have weight, influence and the same aims as the Coalition to bring down the regime and establish a democratic Syria."

In a sign of the wider sectarian confrontation across the Middle East, three people were killed on Sunday in the Lebanese coastal city of Sidon in fighting between Sunni Islamists and the Iranian-backed Lebanese Shi'ite movement Hezbollah.

In the Golan Heights, Israeli troops fired a guided missile into Syria on Sunday in a potent "warning shot" after mortar fire from fighting between Syrian troops and rebels hit the Israeli-occupied territory for the second time in four days.

Israel Radio said it was the first direct engagement of the Syrian military on the Golan since the war of 1973. There was no immediate comment from the 1,000-strong United Nations force which patrols the area, and no reaction from Syria.

In other violence, Assad's troops bombarded the Ras al-Ain area on the border with Turkey, days after the town fell to rebels during an advance that has sent thousands of refugees fleeing for safety.

Increasingly critical of the failure of world powers to halt the war, Turkey is in discussions with its NATO allies over the possible deployment of Patriot surface-to-air missiles to defend against any spillover of violence. The move could also be a step towards enforcing a no-fly zone within Syria.

More than 38,000 people have been killed and many tens of thousands more displaced in the violence since March last year.

(Additional reporting by Andrew Hammond in Doha, Khaled Yacoub Oweis in Amman and Brian Love in Paris; Writing by Alastair Macdonald; Editing by Stephen Powell)

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