American journalist missing in Syria

 An American journalist has been missing in Syria since he was kidnapped more than one month ago, his family said Wednesday, less than two years after he was held by government forces in Libya while covering that country's civil war.
The family of James Foley, of Rochester, N.H., said he was kidnapped in northwest Syria by unknown gunmen on Thanksgiving day.
Foley, 39, has worked in a number of conflict zones around the Middle East, including Syria, Libya and Iraq. He was contributing videos to Agence France-Press while in Syria.
Foley's disappearance highlights the risks to reporters seeking to cover the civil war from inside Syria.
The Syrian government rarely gives visas to journalists and often limits the movements of those it allows in. This has prompted a number of reporters to sneak into the country with the rebels fighting to topple President Bashar Assad. Some have been killed or wounded while others have disappeared.
Foley and another journalist were working in the northern province of Idlib when they were kidnapped near the village of Taftanaz on November 22. He had entered Syria a short time earlier.
Media outlets refrained from reporting on Foley's kidnapping until his family released its statement. The other reporter's family has requested that that reporter's name not be made public.
Foley's family said they have not heard from him since.
"We want Jim to come safely home, or at least we need to speak with him to know he's OK," said his father, John Foley, in the online statement. "Jim is an objective journalist and we appeal for the release of Jim unharmed. To the people who have Jim, please contact us so we can work together toward his release."
The Chairman of Agence France-Press, Emmanuel Hoog, said in a statement that the news agency was doing all it could to get Foley released.
"James is a professional journalist who has remained totally neutral in this conflict," Hoog said. "His captors, whoever they may be, must release him immediately."
In April 2011, Foley and two other reporters were detained by government forces in Libya while covering that country's civil war. They were released six weeks later. South African photographer Anton Hammerl was shot during their capture and left to die in the desert.
"I'll regret that day for the rest of my life. I'll regret what happened to Anton," Foley told The Associated Press at the time. "I will constantly analyze that."
The U.N. said Wednesday that more than 60,000 people have been killed since the start of Syria's conflict in March 2011. This number represents a large jump from death tolls previously given by anti-regime activists.
The Committee to Protect Journalists said that Syria was the most dangerous country in the world for journalists in 2012, when 28 reporters were killed.
Those who lost their lives include award-winning French TV reporter Gilles Jacquier, photographer Remi Ochlik and Britain's Sunday Times correspondent Marie Colvin. Also, Anthony Shadid, a correspondent for The New York Times, died after an apparent asthma attack while on assignment in Syria.
Last month, NBC correspondent Richard Engel and his crew were detained by pro-regime gunmen near where Foley was kidnapped. After his release, Engels said they escaped unharmed during a firefight between their captors and anti-regime rebels.

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U.N. worried about reports of air strikes in Myanmar

UNITED NATIONS (Reuters) - U.N. Secretary-General Ban Ki-moon voiced concern on Wednesday at reports of air strikes in Myanmar's Kachin State, where a 20-month conflict between government troops and rebels has been escalating.
"(Ban) has taken serious note of the most recent reports indicating air strikes against targets in Kachin State," U.N. spokesman Martin Nesirky said in a statement.
"While details of these reports are still emerging and being closely followed, the Secretary-General calls upon the Myanmar authorities to desist from any action that could endanger the lives of civilians living in the area or further intensify the conflict in the region," he said.
Myanmar, also known as Burma, has introduced social and economic reforms since a quasi-civilian government took power in 2011 after nearly half a century of military rule.
The changes have attracted large numbers of foreign investors and prompted the United States and European Union to ease longstanding sanctions to encourage further reform.
But ethnic conflicts continue across the Southeast Asian nation, including in Kachin State.
"The ongoing hostilities have already caused large-scale displacement of civilians who continue to be in need of humanitarian assistance," Nesirky said. "It is vital that timely access be provided for the delivery of aid to vulnerable communities.

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Wall Street ends sour week with fifth straight decline

 Stocks fell for a fifth straight day on Friday, dropping 1 percent and marking the S&P 500's longest losing streak in three months as the federal government edged closer to the "fiscal cliff" with no solution in sight.
President Barack Obama and top congressional leaders met at the White House to work on a solution for the draconian debt-reduction measures set to take effect beginning next week. Stocks, which have been influenced by little else than the flood of fiscal cliff headlines from Washington in recent days, extended losses going into the close with the Dow Jones industrial average and the S&P 500 each losing 1 percent, after reports that Obama would not offer a new plan to Republicans. The Dow closed below 13,000 for the first time since December 4.
"I was stunned Obama didn't have another plan, and that's absolutely why we sold off," said Mike Shea, managing partner at Direct Access Partners LLC in New York. "He's going to force the House to come to him with something different. I think that's a surprise. The entire market is disappointed in a lack of leadership in Washington."
In a sign of investor anxiety, the CBOE Volatility Index <.vix>, known as the VIX, jumped 16.69 percent to 22.72, closing at its highest level since June. Wall Street's favorite fear barometer has risen for five straight weeks, surging more than 40 percent over that time.
The Dow Jones industrial average <.dji> dropped 158.20 points, or 1.21 percent, to 12,938.11 at the close. The Standard & Poor's 500 Index <.spx> lost 15.67 points, or 1.11 percent, to 1,402.43. The Nasdaq Composite Index <.ixic> fell 25.59 points, or 0.86 percent, to end at 2,960.31.
For the week, the Dow fell 1.9 percent. The S&P 500 also lost 1.9 percent for the week, marking its worst weekly performance since mid-November. The Nasdaq finished the week down 2 percent. In contrast, the VIX jumped 22 percent for the week.
Pessimism continued after the market closed, with stock futures indicating even steeper losses. S&P 500 futures dropped 26.7 points, or 1.9 percent, eclipsing the decline seen in the regular session.
All 10 S&P 500 sectors fell during Friday's regular trading, with most posting declines of 1 percent, but energy and material shares were among the weakest of the day, with both groups closely tied to the pace of growth.
An S&P energy sector index <.gspe> slid 1.8 percent, with Exxon Mobil down 2 percent at $85.10, and Chevron Corp off 1.9 percent at $106.45. The S&P material sector index <.gspm> fell 1.3 percent, with U.S. Steel Corp down 2.6 percent at $23.03.
Decliners outnumbered advancers by a ratio of slightly more than 2 to 1 on the New York Stock Exchange, while on the Nasdaq, two stocks fell for every one that rose.
"We've been whipsawing around on low volume and rumors that come out on the cliff," said Eric Green, senior portfolio manager at Penn Capital Management in Philadelphia, who helps oversee $7 billion in assets.
With time running short, lawmakers may opt to allow the higher taxes and across-the-board federal spending cuts to go into effect and attempt to pass a retroactive fix soon after the new year. Standard & Poor's said an impasse on the cliff wouldn't affect the sovereign credit rating of the United States.
"We're not as concerned with January 1 as the market seems to be," said Richard Weiss, senior money manager at American Century Investments, in Mountain View, California. "Things will be resolved, just maybe not on a good timetable, and any deal can easily be retroactive."
Trading volume was light throughout the holiday-shortened week, with just 4.46 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT on Friday, below the daily average so far this year of about 6.48 billion shares. On Monday, the U.S. stock market closed early for Christmas Eve, and the market was shut on Tuesday for Christmas. Many senior traders were absent this week for the holidays.
Highlighting Wall Street's sensitivity to developments in Washington, stocks tumbled more than 1 percent on Thursday after Senate Majority Leader Harry Reid warned that a deal was unlikely before the deadline. But late in the day, stocks nearly bounced back when the House said it would hold an unusual Sunday session to work on a fiscal solution.
Positive economic data failed to alter the market's mood.
The National Association of Realtors said contracts to buy previously owned U.S. homes rose in November to their highest level in 2-1/2 years, while a report from the Institute for Supply Management-Chicago showed business activity in the U.S. Midwest expanded in December.
"Economic reports have been very favorable, and once Congress comes to a resolution, the market should resume an upward trend, based on the data," said Weiss, who helps oversee about $125 billion in assets. "All else being equal, we see any further decline as a buying opportunity."
Barnes & Noble Inc rose 4.3 percent to $14.97 after the top U.S. bookstore chain said British publisher Pearson Plc had agreed to make a strategic investment in its Nook Media subsidiary. But Barnes & Noble also said its Nook business will not meet its previous projection for fiscal year 2013.
Shares of magicJack VocalTec Ltd jumped 10.3 percent to $17.95 after the company gave a strong fourth-quarter outlook and named Gerald Vento president and chief executive, effective January 1.
The U.S.-listed shares of Canadian drugmaker Aeterna Zentaris Inc surged 13.8 percent to $2.47 after the company said it had reached an agreement with the U.S. Food and Drug Administration on a special protocol assessment by the FDA for a Phase 3 registration trial in endometrial cancer with AEZS-108 treatment.

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Wall Street Week Ahead: Cliff may be a fear, but debt ceiling much scarier

 Investors fearing a stock market plunge - if the United States tumbles off the "fiscal cliff" next week - may want to relax.
But they should be scared if a few weeks later, Washington fails to reach a deal to increase the nation's debt ceiling because that raises the threat of a default, another credit downgrade and a panic in the financial markets.
Market strategists say that while falling off the cliff for any lengthy period - which would lead to automatic tax hikes and stiff cuts in government spending - would badly hurt both consumer and business confidence, it would take some time for the U.S. economy to slide into recession. In the meantime, there would be plenty of chances for lawmakers to make amends by reversing some of the effects.
That has been reflected in a U.S. stock market that has still not shown signs of melting down. Instead, it has drifted lower and become more volatile.
In some ways, that has let Washington off the hook. In the past, a plunge in stock prices forced the hand of Congress, such as in the middle of the financial crisis in 2008.
"If this thing continues for a bit longer and the result is you get a U.S. debt downgrade ... the risk is not that you lose two-and-a-half percent, the risk is that you lose ten and a half," said Jonathan Golub, chief U.S. equity strategist at UBS Equity Research, in New York.
U.S. Treasury Secretary Tim Geithner said this week that the United States will technically reach its debt limit at the end of the year.
INVESTORS WARY OF JANUARY
The White House has said it will not negotiate the debt ceiling as in 2011, when the fight over what was once a procedural matter preceded the first-ever downgrade of the U.S. credit rating. But it may be forced into such a battle again. A repeat of that war is most worrisome for markets.
Markets posted several days of sharp losses in the period surrounding the debt ceiling fight in 2011. Even after a bill to increase the ceiling passed, stocks plunged in what was seen as a vote of "no confidence" in Washington's ability to function, considering how close lawmakers came to a default.
Credit ratings agency Standard & Poor's lowered the U.S. sovereign rating to double-A-plus, citing Washington's legislative problems as one reason for the downgrade from triple-A status. The benchmark S&P 500 dropped 16 percent in a four-week period ending August 21, 2011.
"I think there will be a tremendous fight between Democrats and Republicans about the debt ceiling," said Jon Najarian, a co-founder of online brokerage TradeMonster.com, in Chicago.
"I think that is the biggest risk to the downside in January for the market and the U.S. economy."
There are some signs in the options market that investors are starting to eye the January period with more wariness. The CBOE Volatility Index, or the VIX, the market's preferred indicator of anxiety, has remained at relatively low levels throughout this process, though on Thursday it edged above 20 for the first time since July.
More notable is the action in VIX futures markets, which shows a sharper increase in expected volatility in January than in later-dated contracts. January VIX futures are up nearly 23 percent in the last seven trading days, compared with a 13 percent increase in March futures and an 8 percent increase in May futures. That's a sign of increasing near-term worry among market participants.
The CBOE Volatility Index closed on Friday at 22.72, gaining nearly 17 percent to end at its highest level since June as details emerged of a meeting on Friday afternoon of President Barack Obama with Senate and House leaders from both parties where the president offered proposals similar to those already rejected by Republicans. Stocks slid in late trading and equity futures continued that slide after cash markets closed.
"I was stunned Obama didn't have another plan, and that's absolutely why we sold off," said Mike Shea, a managing partner and trader at Direct Access Partners LLC, in New York.
Obama offered hope for a last-minute agreement to avoid the fiscal cliff after a meeting with congressional leaders, although he scolded Congress for leaving the problem unresolved until the 11th hour.
"The hour for immediate action is here," he told reporters at a White House briefing. "I'm modestly optimistic that an agreement can be achieved."
The U.S. House of Representatives is set to convene on Sunday and continue working through the New Year's Day holiday. Obama has proposed maintaining current tax rates for all but the highest earners.
Consumers don't appear at all traumatized by the fiscal cliff talks, as yet. Helping to bolster consumer confidence has been a continued recovery in the housing market and growth in the labor market, albeit slow.
The latest take on employment will be out next Friday, when the U.S. Labor Department's non-farm payrolls report is expected to show jobs growth of 145,000 for December, in line with recent growth.
Consumers will see their paychecks affected if lawmakers cannot broker a deal and tax rates rise, but the effect on spending is likely to be gradual.
PLAYING DEFENSE
Options strategists have noted an increase in positions to guard against weakness in defense stocks such as General Dynamics because those stocks would be affected by spending cuts set for that sector. Notably, though, the PHLX Defense Index is less than 1 percent away from an all-time high reached on December 20.
This underscores the view taken by most investors and strategists: One way or another, Washington will come to an agreement to offset some effects of the cliff. The result will not be entirely satisfying, but it will be enough to satisfy investors.
"Expectations are pretty low at this point, and yet the equity market hasn't reacted," said Carmine Grigoli, chief U.S. investment strategist at Mizuho Securities USA, in New York. "You're not going to see the markets react to anything with more than a 5 (percent) to 7 percent correction."
Save for a brief 3.6 percent drop in equity futures late on Thursday evening last week after House Speaker John Boehner had to cancel a scheduled vote on a tax-hike bill due to lack of Republican support, markets have not shown the same kind of volatility as in 2008 or 2011.
A gradual decline remains possible, Golub said, if business and consumer confidence continues to take a hit on the back of fiscal cliff worries. The Conference Board's measure of consumer confidence fell sharply in December, a drop blamed in part on the fiscal issues.
"If Congress came out and said that everything is off the table, yeah, that would be a short-term shock to the market, but that's not likely," said Richard Weiss, a Mountain View, California-based senior money manager at American Century Investments.
"Things will be resolved, just maybe not on a good time table. All else being equal, we see any further decline as a buying opportunity.

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Stung Bankia investors look to courts for justice

 Spanish savers and pensioners who have seen their money wiped out by investing in state-rescued lender Bankia are likely to seek redress in court rather than wait for any official inquiry, which looks increasingly unlikely.
About 350,000 stockholders will share the pain of the bank's European bailout, many of them bank clients who were sold the shares through an aggressive marketing campaign for its stock market flotation in 2011.
Shares in the lender, rescued by the state in May in Spain's biggest ever bank bailout, fell to record lows on Friday, tumbling over 40 percent from the start of the week after it emerged losses on bad loans were worse than expected.
"Going to the courts and seeing if a judge can bring us justice is the only path left to us," said Maricarmen Olivares, whose parents lost 600,000 euros ($793,300) they made from selling her father's car workshop by investing in Bankia preference shares.
Neither of the two main political parties want to push for a full investigation into Bankia's demise, which could draw attention to their own role in a debacle that has driven Spain to the brink of an international rescue, commentators say.
"Investigations work when a political party has something to gain over another. In this case, no-one has anything to gain," said Juan Carlos Rodriguez, of consultancy Analistas Socio Politicos.
"I don't see the big parties investigating this because if there have been errors committed, they have been committed by both sides."
The Socialist Party was in power when Bankia was formed in 2010 from an ill-matched combination of seven regional savings banks, a union that concentrated an unsustainable exposure to Spain's collapsed property sector.
Immense political pressure from the then government forced Bankia executives to push ahead with an initial public offering in July 2011 as Spain sought to bring private capital into its banking system and avoid a European bailout.
Then chairman, Rodrigo Rato, a former chief of the International Monetary Fund, had strong links to the centre-right Popular Party (PP) and was finance minister in a previous PP administration.
A small political party, UPyD, forced the High Court in July to open an investigation into whether Rato, ousted when the bank was nationalized in May, and 32 other former board members are guilty of fraud, price-fixing or falsifying accounts.
Investigating magistrate Fernando Andreu has so far not brought charges against anyone and could still drop the case.
"WE WON'T SEE OUR MONEY AGAIN"
Rato appeared in a private session before the judge on December 20 where he denied any blame for what happened.
Rato, who cannot legally speak to the press because he is the subject of a court investigation, has kept a low profile since the bank rescue in May. Protesters gathered outside the court on the day of his declaration wearing masks of his face.
The probe centres around Bankia's stock market listing, the formation of the lender from the seven savings banks and the gaping capital shortfall revealed at the bank after the state takeover in May.
Rato and 23 others including bank executives and cabinet ministers were called to testify before a parliamentary committee in July this year where Rato said he had a clear conscience and had done things properly.
"That was just window-dressing by the PP following the outcry over the Bankia disaster," said a Socialist Party source.
The opposition Socialists called for a full parliamentary investigation in May, but the ruling PP blocked it, the Socialist Party source said. A PP spokeswoman said any investigation of Bankia should be carried out through the courts, not the government.
A government source said any investigative process would not fall to the government, but to the courts.
Bankia, alongside other Spanish banks, sold billions of euros of preference shares and subordinated debt to high street clients, many of whom say they were tricked into parting with their savings and are seeking compensation.
The investigating magistrate is not including the mis-selling of preference shares - hybrid instruments that fall between a share and a bond - in the probe.
Holders of preference shares at Bankia will incur losses of up to 46 percent as part of the European bailout, receiving shares rather than cash in exchange.
"We won't see our money again, that's for sure. They'll give us shares, but shares with no value or credibility in a nationalized bank," said Olivares, who said she had heard nothing from the bank as to how much their losses would be.
The losses each investor will have to take has yet to be decided, a Bankia spokesman said, adding that hybrid debtholders at all rescued banks had to take losses, not just at Bankia.
A source close to the court investigation said there would certainly be scope for a separate wider probe into the mis-selling of preference shares, not just at Bankia, but throughout Spain's savings banks.
Olivares, like many other small savers at Spain's state-rescued banks, claims her parents were sold the preference shares as a kind of high-interest savings account and that the bank staff did not explain the risks attached.
The government is in the process of setting up an arbitration process to compensate Bankia clients who can prove that they were duped into buying preference shares, Economy Minister Luis de Guindos said last week.
But many ordinary Spaniards who lost their life savings through the Bankia rescue say this is not enough and they want answers as to what happened to their money.
"We want justice, at least some kind of recognition that we were swindled," said Raimundo Guillen, a 50-year-old electricity station worker who put 30,000 euros in preference shares with Bankia under the impression they were a form of savings account.
"It's as if they've stolen your wallet - blatantly, with their face uncovered.

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Indian stocks third best performers globally

Mumbai, Dec 31 (IANS) After a dismal show a year ago, the Indian stock market emerged as the third best performer globally in 2012, with a return of over 25 percent for a key index on the back of $24 billion foreign fund inflows and robust buying by domestic investors.
The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ranked third in terms of returns after the yields of the 50-scrip Thailand Set Index and Germany's 30-share Deutscher Aktien IndeX.
The benchmark Indian index ended the year Monday at 19,426.71 points, 25.70 percent or 3,971.79 points higher than the previous year's close at 15,454.92 points. This is the best performance of the benchmark index since 2009.
The Sensex recorded a high of 19,612.18 points and a low of 15,358.02 points in 2012, data available with the bourse showed.
"Markets gained globally. But Indian market outperformed others because of the reform push that came after September," said Vaibhav Agrawal, vice president, research, Angel Broking.
Agrawal said the government decision to cut subsidies on petroleum products and liberalise overseas investment norms for the sectors like retail, aviation, insurance and banking sent a positive signal to the market.
"Government took some politically difficult decisions. It sent a positive signal to the markets," Agrawal told IANS.
Data with the regulator, the Securities and Exchange Board of India (SEBI), showed that foreign funds pumped in $24 billion into the Indian markets.
In contrast, foreign funds had divested $357.8 billion from Indian equities and invested $8.65 billion in the debt markets in 2011, while in 2010, their investment in these two segments amounted to $29.36 billion and $10.11 billion, respectively.
Among the individual scrips that comprise the 30-share Sensex basket, the best performer in 2012 was Tata Motors, which surged almost 75 percent on the back of strong performance of its luxury car division Jaguar Land Rover.
The country's largest lender ICICI Bank jumped 66 percent, Maruti Suzuki soared 63 percent and engineering and construction firm Larsen & Toubro gained 61 percent in 2012.
The worst performer in this segment was the country's second largest software exporter Infosys, which slumped 16.5 percent. Gail India fell 8 percent, Bharti Airtel declined 7 percent and BHEL lost 4.5 percent in 2012.
"In 2013, we expect good performance of banking, IT, pharma and auto sectors," said Agrawal.
Anis Chakravarty, director, Deloitte Haskins and Sells, said the overall for the stock markets remained positive for 2013.
"RBI has indicated interest rate cuts. Inflation is showing some moderation. Economic growth is likely to improve. So this should have positive impact on the market," said Chakravarty.
The show at the other major bourse, the National Stock Exchange (NSE), was no different, with the broader 50-share S&P CNX Nifty registering a gain of almost 27 percent. The Nifty ended the year at 5,905.10 points.
However, on last day of the year, key indices closed in the red.
The benchmark Sensex closed 0.09 percent down at 19,426.71 points, while the Nifty declined 0.06 percent to close at 5,905.10 points, in a lacklustre session the last day of 2012 on concern over the US "fiscal cliff".

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Stocks open mixed as budget deadline nears

 Stocks are little changed in early trading on Wall Street as a budget deadline approaches with no deal in sight.
The Dow Jones industrial average was down six points at 12,931 shortly after the opening bell Monday.
The Standard & Poor's 500 index was up two points at 1,405 and the Nasdaq composite edged up 10 points to 2,970.
There are just hours to go before a midnight deadline, when sweeping tax increases and government spending cuts will go into effect unless lawmakers agree on a plan to cut the nation's budget deficit.
More than $500 billion in 2013 tax increases would take effect and $109 billion would be slashed from defense and domestic programs.
Senate Majority Leader Harry Reid says negotiations are ongoing.

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