Canada pledges again to balance budget by 2015

OTTAWA/NEW YORK (Reuters) – The Canadian government on Friday reiterated its intention to balance its budget by 2015, three days after projecting there would be deficits until 2016-17.

In separate appearances in Quebec City and New York, Prime Minister Stephen Harper and Finance Minister Jim Flaherty were at pains to say they still intended to end the red ink by 2015.

“It remains the government’s plan, intention, to balance the budget prior to the next federal election. The recent economic and fiscal update by the minister indicates we are actually very close to that objective,” Harper told reporters in Quebec City. The next election is in October 2015.

Flaherty’s fall fiscal update on Tuesday had pushed back the target date for eliminating the deficit by a year, to 2016-17, citing a weak global economy.

But the minister said in a speech in New York that the government was on track to balance the budget in the next two to three years, barring major external events, and he later clarified that he intended a balanced budget by 2015.

“The prime minister’s always correct,” he chuckled.

He sought to explain the discrepancy by saying the fiscal update had built in a C$ 3 billion ($ 3 billion) contingency cushion, meaning there was an underlying surplus of C$ 1.2 billion for 2015-16. He said the projection of a C$ 1.8 billion deficit amounted to about half a percent of the C$ 275 billion federal budget.

“There’s lots of water to go under the bridge between now and then,” he said.

The opposition New Democratic Party noted the discrepancy in a release headlined: “Stephen Harper makes stuff up about balancing the budget.”

It pointed out that balancing the budget by the next election was not the same as balancing it by 2016-17.

As it is, even the 2015-16 timetable is a year later than offered in the Conservative campaign for reelection in May 2011. They had promised a balanced budget by 2014-15, followed by major personal income tax relief before the 2015 election.

Flaherty’s timetable drew criticism this week from the Canadian Taxpayers Federation, which said the minister had become expert at kicking the can down the road.

The projections could be thrown out of whack if the United States goes off the fiscal cliff, a set of automatic tax hikes and spending cuts that are to be triggered on January 2 if legislators and the White House cannot agree on a more nuanced budget deal.

Flaherty said U.S. failure to avert the fiscal cliff would cause a significant and immediate decline in Canada’s gross domestic product, and he would counter it.

Referring to a possible economic shock from Europe or the United States, he said: “If that were to happen and if the Canadian economy were to be pushed back into recession with the resulting danger for higher unemployment and the danger always of a prolonged recession, then we would act.”

He added: “We would not stand by and let that happen. The kinds of measure we can take: there are various tax measures we can take, there are measures with respect to stimulus we can take, these are things that we have done before and we can do again.”

On Tuesday, Flaherty spoke of having prepared various contingency plans.

(Additional reporting by Louse Egan; Editing by David Gregorio)

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Justin Bieber gets love at American Music Awards

Justin Bieber may be Canadian, but he was the all-American boy at Sunday night’s American Music Awards.

The pop singer dominated the awards show, winning three trophies, including artist of the year. His mom joined him onstage as he collected the award, beating out Rihanna, Maroon 5, Katy Perry and Drake.

“I wanted to thank you for always believing in me,” Bieber said, looking to his mom.

The 18-year-old also won the honor in 2010. He said it’s “hard growing up with everyone watching me” and asked that people continue to believe in him.

But the teenager who brought his mom as a date also got in some grinding with Nicki Minaj — who shared the stage with him and took home two awards — and a kiss on the neck from presenter Jenny McCarthy.

“Wow. I feel violated right now,” he said, laughing.

“I did grab his butt,” McCarthy said backstage. “I couldn’t help it. He was just so delicious. So little. I wanted to tear his head off and eat it.”

Another collaboration was the night’s most colorful performance: Korean rapper PSY and MC Hammer. Hammer joined the buzzed-about pop star for his viral hit “Gangnam Style.” PSY rocked traditional “Hammer” pants as they danced to his jam and to Hammer’s “Too Legit to Quit.”

Minaj, who wore three different wigs and four outfits throughout the night, repeated her AMAs wins from last year, picking up trophies for favorite rap/hip-hop artist and album for “Pink Friday: Roman Reloaded.” She was in an all-white get-up, including fur coat and pink hair when she performed her new song “Freedom.” The scene was ghostly and snowy, as a choir — also in white — joined her onstage. One background singer stole the performance, belting semi-high notes as Minaj looked on.

Usher kicked off the three-hour show with green laser lights beaming onstage as he performed a medley of songs, including “Numb,” ”Climax” and “Can’t Stop, Won’t Stop,” which featured a smoky floor and a number of backup dancers, as Usher jammed in all black, with the exception of his red shoes. He won favorite soul/R&B male artist.

His protege Bieber won favorite pop/rock male artist in the first award handed out and gave a shout-out to those who didn’t think he would last on the music scene.

“I want to say this is for all the haters who thought I was just here for one or two years. I feel like I’m going to be here for a very long time,” he said.

He also won favorite pop/rock album for his platinum-selling third album, “Believe.” He gave a stripped down, acoustic performance of “As Long As You Love Me,” then transitioned to the dance-heavy “Beauty and a Beat,” where Minaj joined him onstage, grinding with the teen for a few seconds.

Swift won her fifth consecutive award for favorite country female artist.

“This is unreal. I want to thank the fans. You guys are the ones who voted on this,” she said.

Swift gave a masquerade-themed performance of the pop song “I Knew You Were Trouble.” She sang onstage in a light dress while dancers wore mostly black. But then she changed into a red corset and black skirt, matching their dark mood. She even danced and sang on the floor as lights flickered throughout the performance.

Dick Clark, who created the AMAs, was remembered by Ryan Seacrest and an upbeat performance by Stevie Wonder.

“What a producer he was,” said Seacrest, as Wonder sang his hits, including “My Cherie Amour.”

Carly Rae Jepsen, who performed early in the night, won favorite new artist.

“I am floored. Wow,” she said, thanking Bieber and his manager, Scooter Braun.

Party girl Ke$ ha was glammed up on the red carpet, rocking long, flowy blonde hair and a light pink dress. She switched to her normal attire when she performed her hit single “Die Young.” It was tribal, with shirtless dancers in skin-tight pants, silver hair and skeleton-painted faces, who also played the drums. Ke$ ha was pants-less, rocking knee-high boots and rolling on the floor as she finished up the song.

Minaj and Christina Aguilera were blonde bombshells, too: Minaj’s hair was busy and full of volume and she sported a neon strapless gown to accept her first award. Aguilera wore a blonde bob in a purple dress that matched her eyeshadow.

Aguilera performed a medley of material from her new album and joined Pitbull onstage.

Kelly Clarkson also hit the stage, making a nod to her “American Idol” roots with a number on her dress and three judges looking on as she sang “Miss Independent.” Then she went into “Since U Been Gone,” ”Stronger” and “Catch My Breath.”

Fellow “Idol” winner Carrie Underwood won best favorite country album and performed, hitting the right notes while singing “Two Black Cadillacs.” She talked about singing competition shows backstage.

“These people that go on these shows are so talented, you know? And I would love to see if so many of the other artists that are out there today would go back and try out for these shows, because they might get their behinds kicked by some of the contestants,” she said.

Luke Bryan won favorite country male artist and Lady Antebellum favorite country group.

American Music Awards nominees were selected based on sales and airplay, and fans chose the winners by voting online. At this award show, even the stars were fans: Pink said on the red carpet that she’d like to collaborate with Lauryn Hill. Cyndi Lauper said her musical playlist includes Pink and Minaj. Boy band The Wanted said they were excited to see PSY and Colbie Caillat wanted to watch No Doubt.

“What makes the American Music Awards special is the fans choose the winning artists,” said Chester Bennington of Linkin Park, who won favorite alternative rock artist and performed “Burn It Down,” as Brandy sang along and Gwen Stefani, Usher and Phillip Phillips bobbed their heads.

David Guetta won the show’s first-ever electronic dance music award. Non-televised awards went to Katy Perry for pop/rock female artist, Beyonce for soul/R&B female artist, Adele for adult contemporary artist and Shakira for Latin artist.

Along with Rihanna, Minaj was the top nominee with four nominations.

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AP Entertainment Writer Sandy Cohen contributed to this report from Los Angeles.

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Follow Mesfin Fekadu on Twitter at http://twitter.com/MusicMesfin

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Online:

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Facebook takes another shot at settling privacy lawsuit

SAN FRANCISCO (Reuters) – A U.S. judge said he would consider whether to preliminarily approve Facebook‘s second attempt to settle allegations the social networking company violated privacy rights.

Earlier this year, U.S. District Judge Richard Seeborg rejected a proposed class action settlement over Facebook’s ‘Sponsored Stories’ advertising feature. But at a hearing on Thursday in San Francisco federal court, Seeborg was much less critical of a revised proposal and promised a ruling “very shortly.”

Five Facebook Inc members filed a lawsuit seeking class-action status against the social networking site, saying its Sponsored Stories feature violated California law by publicizing users’ “likes” of certain advertisers without paying them or giving them a way to opt out. The case involved over 100 million potential class members.

As part of a proposed settlement reached earlier this year, Facebook agreed to allow members more control over how their personal information is used. Facebook also agreed to pay $ 10 million for legal fees and $ 10 million to charity, according to court documents.

However, Seeborg rejected the proposed deal in August, questioning why it did not award any money to members.

In a revised proposal, Facebook and plaintiff lawyers said users now could claim a cash payment of up to $ 10 each to be paid from a $ 20 million total settlement fund. Any money remaining would then go to charity.

The company also said it would engineer a new tool to enable users to view any content that might have been displayed in Sponsored Stories and then opt out if they desire, the court document says.

In court on Thursday, Facebook attorney Michael Rhodes said the settlement provided meaningful protections and that Seeborg’s job was to ensure a fair settlement – not write national privacy policy.

“Trust me, I’m not proposing to set grand policy with privacy issues writ large,” Seeborg said.

Two children’s advocacy groups filed court papers opposing the deal, saying that an opt-in procedure with parental consent should be required before Facebook can use a minor’s content in ads.

However, plaintiff attorney Robert Arns said the deal balances the public good with Facebook’s ability to run a profitable social networking service.

“We believe we cracked the code so that it’s fair,” he said.

If Seeborg grants his preliminary approval, outside groups would be able to file further objections before a final hearing.

The case in U.S. District Court, Northern District of California is Angel Fraley et al., individually and on behalf of all others similarly situated vs. Facebook Inc, 11-cv-1726.

(Reporting By Dan Levine. Editing by Andre Grenon)

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Body found near burned Gulf oil rig

NEW ORLEANS (AP) -- Divers hired by the owner of an oil platform in the Gulf of Mexico that caught fire recovered a body in the waters near the site Saturday evening, according to the U.S. Coast Guard and the rig's owner.

Coast Guard spokesman Carlos Vega said late Saturday that the remains of the unidentified person were found by divers hired by Houston-based Black Elk Energy, who were inspecting the platform. Vega said the Coast Guard would be turning over the remains to local authorities.

John Hoffman, the president and CEO of Black Elk Energy, wrote in an email late Saturday that the body is apparently that of one of two crew members missing since an explosion and fire on the oil platform Friday morning. Hoffman said the body was found by a contract dive vessel at 5:25 p.m. CST.

"Divers will continue to search for the second missing worker," Hoffman wrote. "Our thoughts and prayers are with the families."

Hoffman said the body was found close to the leg of the platform, near where the explosion occurred, in about 30 feet of water. He said the missing men were employees of oilfield contractor Grand Isle Shipyard.

"We have notified next of kin of all individuals involved, but in respect for their families and their privacy, we will not be releasing their names," GIS CEO Mark Pregeant said in a statement, according to WWL-TV in New Orleans.

The news came shortly after the Coast Guard suspended a 32-hour-long search for the two missing workers that covered 1,400 square miles (3626 sq. kilometers) near the oil platform, located about 20 miles (40 kilometers) southeast of Grand Isle, La.

"We have saturated the search area several times — the 1400-square-foot area," Vega said. "We saw no signs of life. We have suspended the search... pending further development. If we receive any credible information that there are signs of life, we can resume the search at any time."

Four other workers who were severely burned remained at Baton Rouge General Medical Center on Saturday night.

Coast Guard Chief Petty Officer Bobby Nash said the Guard's search was ended early Saturday evening. Helicopters and a fixed-wing aircraft had been searching by air, while cutters and boat crews searched the sea.

The blaze erupted Friday morning while workers were using a torch to cut an oil line on the platform, authorities said.

Pregeant stressed in his statement that the cause of the fire and explosion is unknown, and said "initial reports that a welding torch was being used at the time of the incident or that an incorrect line was cut are completely inaccurate."

Four workers were severely burned, though Black Elk Energy spokeswoman Leslie Hoffman said their burns were not as extensive as initially feared.

Officials at Baton Rouge General Medical Center said Saturday that two men remained in critical condition, while two men remained in serious condition. The four, being treated in a burn unit, are also employees of Grand Isle Shipyard and are from the Philippines. The hospital said it and Grand Isle Shipyard are trying to reach the men's families in the Philippines.

Grand Isle Shipyard employed 14 of the 22 workers on the platform at the time of the explosion, WWL-TV reported. A man who answered the phone at the company's Galliano, La., office on Saturday said no one was available to comment.

Separate from the accident, Grand Isle Shipyard is facing a lawsuit by a group of former workers from the Philippines who claim they were confined to cramped living quarters and forced to work long hours for substandard pay. The lawsuit was filed in late 2011 in a Louisiana federal court and is pending. Lawyers for the company have said the workers' claims are false and should be dismissed.

Meanwhile, officials said no oil was leaking from the charred platform, a relief for Gulf Coast residents still weary two years after the BP oil spill illustrated the risk that offshore drilling poses to the region's ecosystem and economy.

Friday's fire sent an ominous black plume of smoke into the air reminiscent of the deadly 2010 Deepwater Horizon explosion that transformed the oil industry and life along the U.S. Gulf Coast

James A. Watson, the director of Louisiana's Bureau of Safety and Environmental Enforcement, said in a statement Saturday that his agency had begun "an investigation into the explosion and fire aboard a Black Elk Energy production platform offshore Louisiana."

"BSEE is committed to determining the direct and indirect causes of the explosion and will take appropriate enforcement action," he said.

The Deepwater Horizon blaze killed 11 workers and led to an oil spill that took months to bring under control. Friday's fire came a day after BP PLC agreed to plead guilty to a raft of charges in the 2010 spill and pay a record $4.5 billion in penalties.

There were a few important differences between this latest blaze and the one that touched off the worst offshore spill in U.S. history: Friday's fire was put out within hours, while the Deepwater Horizon burned for more than a day, collapsed and sank.

The Black Elk Energy facility is a production platform in shallow water, rather than an exploratory drilling rig like the Deepwater Horizon looking for new oil on the seafloor almost a mile (1.6 kilometers) deep.

The depth of the 2010 well blow-out proved to be a major challenge in bringing the disaster under control.

The Black Elk Energy platform is in 56 feet (17 meters) of water — a depth much easier for engineers to manage if a spill had happened.

A sheen of oil about a half-mile (800 meters) long and 200 yards (180 meters) wide was reported on the Gulf surface, but officials believe it came from residual oil on the platform.

"It's not going to be an uncontrolled discharge from everything we're getting right now," Coast Guard Capt. Ed Cubanski said.

Hoffman, the Black Elk Energy spokeswoman, said Saturday that there were still no signs of any leak or spill at the platform site.

BP's blown-out well spewed millions of gallons (liters) of oil into the sea, about 50 miles (80 kilometers) southeast of the mouth of the Mississippi River on the east side of the river delta. The crude fouled beaches, marshes and rich seafood grounds.

After Friday's blaze, 11 people were taken by helicopter to area hospitals or for treatment on shore by emergency medical workers.

The production platform is on the western side of the Mississippi River delta.

"This platform was not in operation and had been shut in since mid-August," Black Elk officials said in a news release Saturday.

Cubanski said the platform appeared to be structurally sound. He said only about 28 gallons (106 liters) of oil were in the broken line on the platform.

David Smith, a spokesman for the Interior Department's Bureau of Safety and Environmental Enforcement in Washington, said an environmental enforcement team was dispatched from a Gulf Coast base by helicopter soon after the Coast Guard was notified of the emergency. Smith said the team would scan for any evidence of oil spilling and investigate the cause of the explosion.

Black Elk Energy is an independent oil and gas company. The company's website says it holds interests in properties in Texas and Louisiana waters, including 854 wells on 155 platforms.

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Associated Press writers Kevin McGill in New Orleans and Jeff Amy in Jackson, Miss., and Norman Gomlak and Greg Schreier in Atlanta contributed to this story.

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Golf-Obsession drove Aussie Batibasaga to mental institution

MELBOURNE, Nov 18 (Reuters) – The desire to improve can drive professional athletes to distraction, but for Australian golfer Rika Batibasaga it became a dangerous obsession that saw him handcuffed and thrown into a Florida mental institution.

In 2008, Batibasaga, whose father played international rugby for Fiji, was a 21-year-old living in Florida and grafting on the Nationwide Tour when his world spectacularly imploded.

“I was living away from home for the first time and it all got too much for me,” Batibasaga told Reuters at the Australian Masters in Melbourne on Sunday.

“I had a psychotic episode – it’s called psychosis. I lost the plot because of a lack of sleep – just due to stress.

“And I couldn’t control it and basically just flipped it out.”

Like hundreds of other young talents drawn to the United States to chase their dreams, Batibasaga felt hard work would prove the difference after he carried countryman and former house-mate Jason Day’s bag at a local tournament.

Feeling his game was not far off the professionals in that tournament, Batibasaga threw himself into a punishing training regime of 10-hour days hitting hundreds of balls, followed by running and gym sessions.

“It was stupid. It became an obsession. I felt I needed to push it a lot harder because I was almost there,” he recalled.

“But my brain just wouldn’t turn off and I would just get so frustrated and angry.

“When I went two or three days without sleep, I panicked and that it made it even worse. It just sort of snowballed.”

Into his sixth consecutive day without sleep, Batibasaga snapped.

Wearing just a pair of underwear, he jumped into a car belonging to the owner of the Orlando house he was living in and crashed it in the garage.

He jumped into another car, this one his house mate’s, and was arrested by police in front of Universal Studios.

“They both had their guns out. I guess it’s just America and they love pulling a gun on someone,” Batibasaga, an affable 25-year-old with a wispy beard, laughed.

“I was just driving around, I had no idea where I was going. I was in no state to drive.

“They put me in an ambulance, they obviously thought I was on drugs. They knocked me out at the hospital and I woke up feeling fine.”

With no phone or identification cards, Batibasaga was taken to a mental hospital where he spent “probably the scariest two days” of his life before being checked out.

The same problems came back to haunt him later, though, and he returned home for further treatment and a course of prescription drugs at a Brisbane hospital where he was diagnosed with bipolar disorder.

Batibasaga, who made the cut in his debut Australian Masters, has not suffered any further mental illness, and has learnt to take a more measured approach to success and failure.

He continues to grind on the minor tours but has shown signs of his promise, winning A$ 18,459 ($ 19,000) at the European Tour co-sanctioned Perth International last month for finishing joint 25th.

Batibasaga still has the green uniform from the Lakeside mental institution in Florida as a souvenir and wore it out to a New Year’s Eve party.

He says dozens of young golfers struggling to make the step up to the A-grade suffer from anxiety and depression that borders and often crosses over into mental illness.

“It’s rife. Because you’re always by yourself and if you’re not playing well, you go back to your hotel alone,” he said.

“When things aren’t going well, that’s when it’s tough.” ($ 1 = 0.9702 Australian dollars) (Editing by Nick Mulvenney)

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Israel, Gaza fighting rages on as Egypt seeks truce

GAZA/JERUSALEM (Reuters) – Israel bombed Palestinian militant targets in the Gaza Strip from air and sea for a fifth straight day on Sunday, preparing for a possible ground invasion though Egypt saw “some indications” of a truce ahead.

Militant rocket fire into Israel subsided during the night but resumed in the morning with three rockets fired at the nearby coastal city of Ashkelon, the Israeli army said.

“As of now we have struck more than 1,000 targets, so Hamas should do the math over whether it is or isn’t worth it to cease fire,” Israeli Vice Prime Minister Moshe Yaalon, over Twitter.

“If there is quiet in the South and no rockets and missiles are fired at Israel’s citizens nor terrorist attacks engineered from the Gaza Strip, we will not attack.”

Forty-eight Palestinians, about half of them civilians, including 13 children, have been killed in Israel’s raids, Palestinian officials said. More than 500 rockets fired from Gaza have hit Israel, killing three people and injuring dozens.

Israel unleashed intensive air strikes on Wednesday, killing the commander of the Hamas Islamist group that governs Gaza and spurns peace with the Jewish state. Israel’s declared goal is to deplete Gaza arsenals and press Hamas into stopping cross-border rocket fire that has plagued Israeli border towns for years.

Air raids continued past midnight into Sunday, with warships shelling from the sea. A Gaza City media building was hit, witnesses said, wounding 6 journalists and damaging facilities belonging to Hamas’s Al-Aqsa TV as well as Britain’s Sky News.

An Israeli military spokeswoman said the strike had targeted a rooftop “transmission antenna used by Hamas to carry out terror activity”.

Two other predawn attacks on houses in the Jabalya refugee camp killed two children and wounded 13 other people, medical officials said.

These attacks followed a defiant statement by Hamas military spokesman Abu Ubaida, who told a news conference: “This round of confrontation will not be the last against the Zionist enemy and it is only the beginning.”

The masked gunman dressed in military fatigues insisted that despite Israel’s blows Hamas “is still strong enough to destroy the enemy”.

An Israeli attack on Saturday destroyed the house of a Hamas commander near the Egyptian border.

Casualties there were averted however, because Israel had fired non-exploding missiles at the building beforehand from a drone, which the militant’s family understood as a warning to flee, and thus their lives were spared, witnesses said.

Israeli aircraft also bombed Hamas government buildings in Gaza on Saturday, including the offices of Prime Minister Ismail Haniyeh and a police headquarters.

Among those killed in air strikes on Gaza on Saturday were at least four suspected militants riding motorcycles, and several civilians including a 30-year-old woman.

ISRAELI SCHOOLS SHUT

Israel said it would keep schools in its south shut on Sunday as a precaution to avoid casualties from rocket strikes reaching as far as Tel Aviv and Jerusalem in the past few days.

Israel’s “Iron Dome” missile interceptor system destroyed in mid-air a rocket fired by Gaza militants at Tel Aviv on Saturday, where volleyball games on the beach front came to an abrupt halt as air-raid sirens sounded.

Hamas claimed responsibility for the attack on Tel Aviv, the third against the city since Wednesday. It said it had fired an Iranian-designed Fajr-5 at the coastal metropolis, some 70 km (43 miles) north of Gaza.

In the Israeli Mediterranean port of Ashdod, a rocket ripped into several balconies. Police said five people were hurt.

Israel’s operation has drawn Western support for what U.S. and European leaders have called Israel’s right to self-defense, but there was also a growing number of calls from world leaders to seek an end to the violence.

British Prime Minister David Cameron “expressed concern over the risk of the conflict escalating further and the danger of further civilian casualties on both sides,” in a conversation with Israeli Prime Minister Benjamin Netanyahu, a spokesperson for Cameron said.

London was “putting pressure on both sides to de-escalate,” the spokesman said, adding that Cameron had urged Netanyahu “to do everything possible to bring the conflict to an end.”

Ben Rhodes, a deputy national security adviser to President Barack Obama, said the United States would like to see the conflict resolved through “de-escalation” and diplomacy, but also believes Israel has a right to self-defense.

Egyptian President Mohamed Mursi said in Cairo as his security deputies sought to broker a truce with Hamas leaders, that “there are some indications that there is a possibility of a ceasefire soon, but we do not yet have firm guarantees.”

Egypt has mediated previous ceasefire deals between Israel and Hamas, the latest of which unraveled with recent violence.

A Palestinian official told Reuters the truce discussions would continue in Cairo on Sunday, saying “there is hope,” but it was too early to say whether the efforts would succeed.

In Jerusalem, an Israeli official declined to comment on the negotiations. Military commanders said Israel was prepared to fight on to achieve a goal of halting rocket fire from Gaza, which has plagued Israeli towns since late 2000, when failed peace talks led to the outbreak of a Palestinian uprising.

Diplomats at the United Nations said Secretary-General Ban Ki-moon is expected to visit Israel and Egypt in the coming week to push for an end to the fighting.

POSSIBLE GROUND OFFENSIVE

Israel, with tanks and artillery positioned along the frontier, said it was still weighing a ground offensive.

Israeli cabinet ministers decided on Friday to more than double the current reserve troop quota set for the Gaza offensive to 75,000 and around 16,000 reservists have already been called up.

Asked by reporters whether a ground operation was possible, Major-General Tal Russo, commander of the Israeli forces on the Gaza frontier, said: “Definitely.”

“We have a plan. … It will take time. We need to have patience. It won’t be a day or two,” he added.

A possible move into the densely populated Gaza Strip and the risk of major casualties it brings would be a significant gamble for Netanyahu, favored to win a January election.

The last Gaza war, a three-week Israeli blitz and invasion over the New Year of 2008-09, killed 1,400 Palestinians, mostly civilians. Thirteen Israelis died in the conflict.

But the Gaza conflagration has stirred the pot of a Middle East already boiling from two years of Arab revolution and a civil war in Syria that threatens to spread beyond its borders.

One major change has been the election of an Islamist government in Cairo that is allied with Hamas, potentially narrowing Israel’s maneuvering room in confronting the Palestinian group. Israel and Egypt made peace in 1979.

(Writing by Allyn Fisher-Ilan; Editing by Douglas Hamilton)

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Larry Clark film wins top prize at Rome fest

ROME (AP) — A film by “Kids” director Larry Clark set in a small Texan town and to be released online only has taken the top award at Rome’s film festival.

“Marfa Girl” explores the inner life of a teenage boy and other characters in a town near the Mexican border and bustling with border patrol police.

The festival jury gave it the Golden Marcus Aurelius prize for best film on Saturday night.

Clark, whose other credits include “Bully” and “Ken Park,” says the new film won’t be distributed in theaters but will be available online later this month to get around the Hollywood system.

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Kansas robber recognizes victim from prison, gives wallet back

KANSAS CITY, Kansas (Reuters) – A Kansas robber who helped seize a man’s cell phone and wallet at gunpoint recognized the victim as an ex-convict he had served time with and gave the possessions back, police said on Thursday.

A Wichita, Kansas man reported that two young men approached him on the street late on Wednesday, one of them brandishing a large semi-automatic handgun, Wichita police Sergeant Joe Schroeder said.

The gunman demanded the victim’s phone and took his wallet while the second man searched his pockets, Schroeder said.

“Then, he (the second man) realized he spent some time in prison with him. He apologized, shook hands and walked away,” Schroeder said.

Although the victim went to police and said he knew one of the robbers in prison, the man said he did not think he could identify them in a suspect line-up, Schroeder said.

(Editing by Greg McCune and Eric Walsh)

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Israel holding fire during Egypt premier's visit to Gaza

JERUSALEM (AP) — Israel offered to suspend its offensive in the Gaza Strip on Friday during a brief visit by Egypt's premier there if militants refrain from firing rockets at Israel, an official said, but the Palestinians unleashed a fresh salvo.

An official in Prime Minister Benjamin Netanyahu's office said the Israeli leader was responding to an Egyptian request.

Gaza militants stepped up their barrages of rocket fire into Israel as Hesham Kandil crossed into Gaza before midday through the only border post with Egypt, heavily guarded by Egyptian security personnel wearing flak jackets and carrying assault rifles.

He was greeted by Gaza's Hamas prime minister, Ismail Haniyeh, who ventured out in public for the first time since Israel launched the offensive Wednesday by assassinating the militant group's military commander.

Israel told the Egyptians the military "would hold its fire on the condition that during that period, there won't be hostile fire from Gaza into Israel," the Israeli official said. "Prime Minister Netanyahu is committed to the peace treaty with Egypt, which is in the strategic interest of both countries," he added, speaking on condition of anonymity to discuss the diplomatic exchange.

There were no immediate reports of Israeli retaliation for the latest salvo. Israeli police spokesman Micky Rosenfeld said the militants were making a clear statement. "There's no intention whatsoever to stop firing into Israel," he said.

Three days of fierce fighting between Israel and Gaza militants has widened the instability gripping the region, straining already frayed Israel-Egypt relations. The Cairo government recalled its ambassador in protest.

Egypt said Kandil's three-hour visit Friday was meant as a show of solidarity with the Palestinian territory's militant Hamas rulers.

Egyptian intelligence officials involved in negotiations to end previous rounds of fighting are accompanying Kandil on his visit, an Egyptian diplomat said, suggesting it was more than a display of support.

The diplomat said Gaza militants have told Egyptian intelligence officials they would be willing to hold their fire if Israel would commit to mediation to stop its military operation and targeted killings.

Word of the possible pause in the fighting came after a night of fierce exchanges and signals that Israel might be preparing to invade Gaza. Overnight, the military said it targeted about 150 of the sites Gaza gunmen use to fire rockets at Israel, as well as ammunition warehouses, bringing to 450 the number of sites struck since the operation began Wednesday.

Israeli troops, tanks and armored personnel carriers massed near the Palestinian territory, signaling a ground invasion might be imminent.

Militants unleashed dozens of rocket barrages overnight.

Fighting between the two sides escalated sharply Thursday with a first-ever rocket attack from Gaza on the Tel Aviv area, menacing Israel's most densely populated area. No casualties were reported there, but three people died in the country's rocket-scarred south when a projectile slammed into an apartment building.

The death toll in Gaza was 19, including five children, according to Palestinian health officials.

Early Friday, 85 missiles exploded within 45 minutes in Gaza City, sending black pillars of smoke towering above the coastal strip's largest city. The military said it was targeting underground rocket-launching sites.

One missile flattened sections of the Interior Ministry, leaving a huge pile of rubble, and another hit an uninhabited house belonging to a senior Hamas commander. Those strikes, together with an attack on a generator building near Haniyeh's home, signaled that Israel was expanding its offensive beyond military targets.

Ten-month-old Haneen Tafesh was killed Thursday when flying shrapnel from an air attack on a field next to her family's shack struck her in the head.

"What did she do? Did she fire any rockets?" asked her 23-year-old father, Khaled Tafesh, as he waited outside the Shifa hospital morgue in Gaza City, waiting for the funeral of his only child to begin.

Israel and Hamas had largely observed an informal truce since Israel's devastating incursion into Gaza four years ago, but rocket fire and Israeli airstrikes on militant operations continued sporadically.

The Israeli offensive has not deterred the militants from firing more than 400 rockets aimed at southern Israel, the military said. On Thursday, they also unleashed for the first time the most powerful weapons in their arsenal — Iranian-made Fajr-5 rockets capable of reaching Tel Aviv.

The two rockets that struck closest to Tel Aviv appear to have landed in the Mediterranean Sea, defense officials said, and another hit an open area on Tel Aviv's southern outskirts.

No injuries were reported, but the rocket fire sowed panic in Tel Aviv and made the prospect of a ground incursion more likely. The government later approved the mobilization of up to 30,000 reservists for a possible invasion.

Netanyahu said the army was hitting Hamas hard with what he called surgical strikes, and warned of a "significant widening" of the Gaza operation. Israel will "continue to take whatever action is necessary to defend our people," said Netanyahu, who is up for re-election in January.

At least 12 trucks were seen transporting tanks and armored personnel carriers toward Gaza late Thursday, and buses carrying soldiers headed toward the border area.

An Israeli ground offensive could be costly to both sides. In the last Gaza war, Israel devastated parts of the territory, setting back Hamas' fighting capabilities but also paying the price of increasing diplomatic isolation because of a civilian death toll numbering in the hundreds.

In the current round of fighting, the civilian casualties have been relatively low and the Israeli strikes seem to be more surgical.

In other ways, the latest hostilities are reminiscent of the first days of that three-week offensive against Hamas. Israel also caught Hamas off guard then with a barrage of missile strikes and threatened to follow up with a ground offensive.

Since then, Israel has improved its missile defense systems, but it is facing a more heavily armed Hamas. Israel estimates the militants have 12,000 rockets, including more sophisticated weapons from Iran and from Libyan stockpiles plundered after the fall of Moammar Gadhafi's regime there last year.

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Laub reported from Gaza City, Gaza Strip.

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Rising obesity strains Europe’s shrinking health budgets

LONDON (Reuters) – More than half of Europeans are obese or overweight, adding significant pressure to healthcare costs at a time when spending is being cut by governments, the OECD and European Commission said on Friday.

On average across the European Union, health spending per capita rose by 4.6 percent a year in real terms between 2000 and 2009, but fell 0.6 percent in 2010.

In a report on health across the 27-nation bloc, the Paris-based Organisation for Economic Co-operation and Development and the Brussels-based Commission, said 52 percent of adults in the EU are now overweight or obese.

The report blamed physical inactivity and the widespread availability of energy-dense, sugary and fatty foods.

In 18 countries out of the 27 member states, the proportion of overweight and obese adults now exceeds 50 percent and the obesity rate, at 17 percent on average across the region, has doubled since 1990 in many countries.

“(The rise) is a major public health concern,” the report said. “Because obesity is associated with higher risks of chronic illnesses, it is linked to significant additional healthcare costs.”

The report noted that the growing cost burden coincided with governments around Europe cutting spending to reduce the debts left over from the 2008 financial crisis.

“Spending had already started to fall in 2009 in countries hardest hit by the economic crisis,” it said. “But this was followed by deeper cuts in 2010 in response to growing budgetary pressures and rising debt-to-GDP ratios.”

As a result, EU members spent an average of 9.0 percent of their GDP on health in 2010, up from 7.3 percent in 2000, but down from a peak of 9.2 percent in 2009.

The Netherlands was the highest, devoting 12 pct of its gross domestic product to health in 2010, followed by France and Germany, both at 11.6 percent.

The rate of obesity in France is close to twice what it was in 1990 but at 12.9 percent it is still less than half the rate in Britain of 26.1 percent.

The risk of diseases such as diabetes, hypertension, heart disease, asthma, arthritis and some forms of cancer is increased by obesity.

Although it was affecting all populations, obesity tended to be worse among the poor and less well educated, and was more prevalent in women than men.

People with a body mass index (BMI) of 25 to 30 are classed as overweight while those at 30 or higher are obese. BMI is formula of weight and height that differs slightly depending on whether it is done in kilograms and meters or pounds and inches.

Despite the fall in health spending, life expectancy in the EU continued to rise and stood at an average 79 years in 2010, up more than six years since 1980.

This was driven by improved living and working conditions as well as better access to higher quality healthcare.

But Yves Leterme, the OECD Deputy Secretary-General, and Paola Testori Coggi, head of the Commission’s directorate for health, had a warning for EU governments.

“If the report does not yet show any worsening health outcomes due to the crisis, there is no cause for complacency – it takes time for poor social conditions or poor quality care to take its toll from people’s health,” they said in a joint foreword to the report.

(Editing by Jeremy Gaunt)

Health News Headlines – Yahoo! News

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