Hayden Panettiere Splits with Scotty McKnight

12/10/2012 at 07:50 PM EST

Hayden Panettiere and Scotty McKnight

Splash News Online

Is there a tear in her beer?

Nashville star Hayden Panettiere has broken up with her boyfriend of more than a year, New York Jets wide receiver Scotty McKnight, a source confirms to PEOPLE.

But the split doesn't appear to be the stuff of a sad country song. The actress, 23, is still friends with McKnight, 24, and one source tells TMZ that their pals wouldn't be surprised if they got back together.

This is Panettiere's second go at a relationship with an athlete. Before dating McKnight she was with Ukrainian boxer Wladimir Klitschko for about two years.
– Julie Jordan

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Surprise: New insurance fee in health overhaul law

WASHINGTON (AP) — Your medical plan is facing an unexpected expense, so you probably are, too. It's a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Barack Obama's health care overhaul.

The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.

Employee benefits lawyer Chantel Sheaks calls it a "sleeper issue" with significant financial consequences, particularly for large employers.

"Especially at a time when we are facing economic uncertainty, (companies will) be hit with a multi-million dollar assessment without getting anything back for it," said Sheaks, a principal at Buck Consultants, a Xerox subsidiary.

Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee.

The Obama administration says it is a temporary assessment levied for three years starting in 2014, designed to raise $25 billion. It starts at $63 and then declines.

Most of the money will go into a fund administered by the Health and Human Services Department. It will be used to cushion health insurance companies from the initial hard-to-predict costs of covering uninsured people with medical problems. Under the law, insurers will be forbidden from turning away the sick as of Jan. 1, 2014.

The program "is intended to help millions of Americans purchase affordable health insurance, reduce unreimbursed usage of hospital and other medical facilities by the uninsured and thereby lower medical expenses and premiums for all," the Obama administration says in the regulation. An accompanying media fact sheet issued Nov. 30 referred to "contributions" without detailing the total cost and scope of the program.

Of the total pot, $5 billion will go directly to the U.S. Treasury, apparently to offset the cost of shoring up employer-sponsored coverage for early retirees.

The $25 billion fee is part of a bigger package of taxes and fees to finance Obama's expansion of coverage to the uninsured. It all comes to about $700 billion over 10 years, and includes higher Medicare taxes effective this Jan. 1 on individuals making more than $200,000 per year or couples making more than $250,000. People above those threshold amounts also face an additional 3.8 percent tax on their investment income.

But the insurance fee had been overlooked as employers focused on other costs in the law, including fines for medium and large firms that don't provide coverage.

"This kind of came out of the blue and was a surprisingly large amount," said Gretchen Young, senior vice president for health policy at the ERISA Industry Committee, a group that represents large employers on benefits issues.

Word started getting out in the spring, said Young, but hard cost estimates surfaced only recently with the new regulation. It set the per capita rate at $5.25 per month, which works out to $63 a year.

America's Health Insurance Plans, the major industry trade group for health insurers, says the fund is an important program that will help stabilize the market and mitigate cost increases for consumers as the changes in Obama's law take effect.

But employers already offering coverage to their workers don't see why they have to pony up for the stabilization fund, which mainly helps the individual insurance market. The redistribution puts the biggest companies on the hook for tens of millions of dollars.

"It just adds on to everything else that is expected to increase health care costs," said economist Paul Fronstin of the nonprofit Employee Benefit Research Institute.

The fee will be assessed on all "major medical" insurance plans, including those provided by employers and those purchased individually by consumers. Large employers will owe the fee directly. That's because major companies usually pay upfront for most of the health care costs of their employees. It may not be apparent to workers, but the insurance company they deal with is basically an agent administering the plan for their employer.

The fee will total $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. That means the per-head assessment would be smaller each year, around $40 in 2015 instead of $63.

It will phase out completely in 2017 — unless Congress, with lawmakers searching everywhere for revenue to reduce federal deficits — decides to extend it.

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Asian shares edge up; Fed move, fiscal cliff in focus

TOKYO (Reuters) - Asian shares edged up to a 16-month high on Tuesday and the euro firmed, but prices were capped as investors waited for the U.S. Federal Reserve's policy decision this week and any progress in U.S. budget talks.

European shares were likely to crawl higher too, with financial spreadbetters predicting London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> will open as much as 0.3 percent higher. But a 0.2 percent drop in U.S. stock futures hinted at a soft Wall Street open. <.l><.eu><.n/>

MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> nudged up 0.3 percent to a 16-month high. The index has hit successive 16-month highs since December 5.

Australian shares <.axjo> gained 0.4 percent to a seven-week high, supported by higher commodities prices on bets that the Fed will adopt fresh economic stimulus measures.

"It seems the Christmas rally (in commodities prices) is about getting ahead of the FOMC meeting and staying ahead of any potential Chinese stimulus early next year," said Ben Taylor, sales trader at CMC Markets.

Hong Kong shares <.hsi> added 0.2 percent, after earlier hitting a 16-month high. Shanghai shares <.ssec> were little changed as investors turned cautious ahead of the Fed and also took profits from Monday's rally, partly in response to data showing China's banks lent more slowly than expected in November and the pace of total financing eased.

Japan's Nikkei share average <.n225> was the region's laggard, closing down 0.1 percent but staying above a key 9,500 level. Investors booked profits on signs that the market is overbought after a 10 percent rally in the past month. <.t/>

"The 9,500-level is still an important psychological line for both support and resistance purposes," said Yutaka Miura, a senior technical analyst at Mizuho Securities.

After a two-day meeting ending Wednesday, the Fed is expected to announce it will buy $45 billion per month of longer-dated Treasuries beginning in January on top of the $40 billion in mortgage-backed security purchases it announced in September. The new buying will replace the Fed's current program, Operation Twist, which expires at the end of December.

Under Operation Twist, the Fed sells shorter-dated U.S. government debt and buys longer-dated Treasuries to extend the duration of its balance sheet.

The prospects of Fed stimulus weighed on the dollar and helped to underpin the euro, which traded up 0.1 percent at $1.2956, following a Monday low of $1.2880.

The dollar steadied at 82.32 yen. The yen has also been pressured by expectations for more easing from the Bank of Japan, which meets next week.

The euro rose from Monday's lows after Italian Prime Minister Mario Monti played down market fears over his decision to resign. He said there was no danger of a vacuum ahead of an election in the spring.

"I think people at this point are not sure whether there really will be the risk of Italy not pursuing its fiscal reforms pursued under Monti. So it's hard to really price that news in yet," said Takao Hattori, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities in Tokyo.

FISCAL WORRIES

European partners urged the next Italian government on Monday to stick to Monti's reform agenda, after his decision to resign early and Silvio Berlusconi's return to frontline politics rattled financial markets.

Monti had earned market confidence over the past year in indebted Italy, as he spearheaded a reform agenda to rescue the euro zone's third-largest economy from the threat of a Greek-style collapse.

The prospects that Italy's reform agenda could move off track in the absence of Monti at the helm have weighed on markets. Investors also worry about the impact on neighboring Spain, which is struggling with high debt and studying the need for outside help.

Economists have warned that a failure by the U.S. Congress to avert the "fiscal cliff," some $600 billion of tax hikes and spending cuts scheduled to start in January, could send the economy into recession and weigh on the fragile global economy.

The White House and House of Representatives Speaker John Boehner's office held more negotiations on Monday on ways to break the budget stalemate. The talks picked up pace after Boehner met with President Barack Obama on Sunday, raising hopes of progress.

U.S. crude futures inched up 0.1 percent to $85.65 a barrel and Brent also rose 0.1 percent to $107.40.

(Additional reporting by Ayai Tomisawa in Tokyo and Victoria Thieberger in Melbourne; Editing by Jacqueline Wong)

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Sunni Muslim and Alawite Militias Clash in Lebanon

Omar Ibrahim/Reuters

Lebanese gunmen fired in Tripoli as bodies arrived from Syria.

TRIPOLI, Lebanon — Clashes between Sunni Muslim and Alawite militias have killed at least 17 people here recently in perhaps the worst spillover of violence from the civil war in neighboring Syria.

Tripoli, which is Lebanon’s second-largest city and is close to the northern border with Syria, has long been the scene of conflict between Sunni Muslims in the city’s Bab al-Tabbaneh neighborhood and Alawites in the hilltop section of Jabal Mohsen, with each group maintaining militias.

But during the 21-month conflict in Syria, the web of religious and family ties and fault lines between the two countries has created new strains, especially in Tripoli. Lebanese Sunnis have increasingly supported and even joined the Sunni-led uprising against President Bashar al-Assad of Syria, who is Alawite and whose sect dominates the government. Refugees from both sects have flowed into the city.

As some Tripoli residents begin to see themselves as part of the Syrian conflict — to the dismay of the Lebanese government, which fears being dragged into the war — the intensity and frequency of fighting has increased dramatically, with clashes sometimes ignited by events in Syria. Scores have been killed here this year.

The latest conflict began after a number of Sunni fighters from northern Lebanon were killed in an ambush by pro-government forces as they tried to enter Syria to join opposition fighters. Sunnis in Tripoli, angry over videos that purported to show the men’s bodies being stabbed and kicked, attacked Alawites, starting days of clashes between militias wielding rifles and rocket-propelled grenades. Lebanese news media put the death toll at 17.

Lebanon is divided over Syria, with the parliamentary opposition bloc fiercely opposed to Mr. Assad, and as the Syrian conflict has become more sectarian, so has the Lebanese debate. Many Shiites and Alawites support Mr. Assad and fear that Syria’s Sunni majority will take revenge against minorities, while many Lebanese Sunnis, emboldened by the uprising, have struck an aggressive posture toward a government they see as dominated by the Syria-backed Islamist party Hezbollah and weakened by Mr. Assad’s troubles.

Sunni fighters from northern Lebanon, including the Bab al-Tabbaneh neighborhood, now routinely cross into Syria to fight. Many link up with Islamist factions like Jabhet al-Nusra, a group that the United States is considering declaring a terrorist organization.

Militia leaders in Bab al-Tabbaneh say they frown on their men going to Syria because it leaves them short-handed for any conflict at home. But it is hard to stop fighters who feel a personal connection to the civil war.

Some of the young men from Bab al-Tabbaneh showed up as corpses in videos circulated on cellphones by rebel supporters. One video showed bodies being repeatedly stabbed with knives. In another, men shouted insults as they kicked and stomped on corpses’ heads.

A Sunni militia commander in Bab al-Tabbaneh who goes by the name Abu Bera identified one of the men as his friend Hussein Sorour, a 24-year-old baker and fighter.

Even during a lull in fighting on Saturday, snipers atop the hill of Jabal Mohsen made streets in Bab al-Tabbaneh unsafe. People traversed the neighborhood by passing through a maze of holes knocked out of walls and crossing alleys with huge tarps strung up to obstruct the view of snipers. One young boy walked down an alley carrying a Kalashnikov assault rifle. He said he was 11.

There is a fear that the clashes could spread to other parts of Tripoli. Violence has touched the affluent and usually quiet city center. Rockets and mortars have hit the area more than a dozen times over the past week, said Racha el-Halabi, 19, a university student and journalist.

“It’s the first time ever,” she said. “Everyone is worried.”

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In giant “garage sale”, Japan’s TV giants hawk $3 billion of assets

TOKYO (Reuters) – Panasonic Corp, Japan‘s struggling maker of Viera brand TVs, owns more than 10 million square meters of office and factory space, dormitories for its workers and sports facilities for its rugby, baseball and women’s athletics teams.

As it battles for Christmas shoppers’ wallets in the year-end holiday season, the sprawling electronics conglomerate is also seeking buyers for some of those properties to trim its fixed costs and improve cashflow at a time of intense competition, particularly from South Korean rivals such as Samsung Electronics Co.

Japan’s other troubled TV makers, Sony Corp and Sharp Corp, are also selling buildings and businesses in a giant ‘garage sale’ that could raise a combined $ 3 billion.

Panasonic plans to raise $ 1.34 billion from offloading property and shares in other Japanese companies by end-March, the group’s chief financial officer Hideaki Kawai told Reuters.

“We have a lot of land and buildings in Japan and overseas,” he said in an interview at the company’s head office in Osaka, in western Japan. He declined to list which properties would go on the block, but said most are in Japan.

Included is a 24-storey central Tokyo block – built in 2003 with more than 47,300 square meters and housing 2,000 Panasonic workers – a source familiar with the plan told Reuters.

Kawai added that Panasonic would raise about a quarter of the sell-off funds by getting rid of shares it owns in other companies – a common practice of cross-shareholdings in Japan.

The proceeds would help bolster free cashflow to 200 billion yen ($ 2.43 billion) for the business year to March, Kawai said, and allow Panasonic to reduce its debt and maintain its crucial research and development effort as it revamps its business portfolio.

It will sell more assets in the year starting in April if cashflow dips below 200 billion yen, Kawai added. Panasonic President Kazuhiro Tsuga has promised to shut or sell businesses operating at below a 5 percent margin. Those sales could start as soon as April.

Panasonic’s fixed assets of $ 21 billion are around 30 percent more than those of Apple Inc, and are almost double the company’s market value. The company, founded almost a century ago as a small electrical extension socket maker, trades at around half its book value – which includes intangible assets such as patents. Sony trades at 39 percent of book, Sharp at 30 percent.

The fixed assets – buildings, land and machinery – of the three companies that were not so long ago a byword for innovation in household gadgetry total around $ 42 billion, while their combined market value is $ 24 billion.

CASHFLOW IS KING

The three firms have been downgraded by credit ratings agencies, making it tougher to raise funding on capital markets, and making asset sales more urgent.

Selling assets “is good in terms of their credit ratings because, for all three, it will lower fixed costs and they can reduce their capex requirements. Eventually, this could improve operating margins and, more importantly, cashflow,” said Alvin Lim, an analyst at Fitch Ratings in Seoul.

Fitch, which makes its ratings without input from company management, last month cut Panasonic to BB and Sony to BB minus, the first time one of the major agencies has relegated either company to junk status. Sharp is ranked B minus, adding to its borrowing costs.

“We rate Panasonic as investment grade, and it should have various funding options. Selling assets it can do without, to avoid raising additional borrowing, can be an option,” said Osamu Kobayashi, an analyst at Standard & Poor’s.

While Korean rivals have also benefited from a weaker local currency, data from the Japan Electronics and Information Technology Industries Association shows that Japanese production of consumer electronic equipment fell to just above $ 15 billion last year from more than $ 19 billion a decade ago. Output in September was just $ 980 million, half last year’s level.

“The gap with Korean makers seems to be widening. It’s going to be very difficult for them to regain their top-tier position,” said Fitch’s Lim.

As the three Japanese firms, all under new leadership, have sketched out restructuring plans, the cost of insuring their debt against defaulting in 5 years has dropped from spikes just a month ago. Credit default swaps for Sharp and Sony are down to levels last seen 3 months ago, while Panasonic’s have dropped 40 percent in the past month.

THREE PATHS

While Panasonic is looking to revamp its business around batteries, auto parts and household appliances, Sony is doubling down on smartphones, gaming and cameras. Sharp, meanwhile, is focusing on display screens and is forging alliances with the likes of Taiwan’s Hon Hai Precision Industry and U.S. chipmaker Qualcomm Inc.

Sony may also take the real estate sale route to raise much-needed cash, with a possible sale of its 37-storey New York headquarters, dubbed by New Yorkers as the ‘Chippendale’ because of its design that is reminiscent of the period English furniture. Selling that jewel could raise $ 1 billion, media have reported.

The maker of Vaio laptops, PlayStation gaming consoles and Bravia TVs may also sell its battery business, which makes lithium ion power packs for tablets, PCs and mobile phones. The company has been approached by investment banks offering to sell the unit, which employs 2,700 people and has three factories in Japan and two overseas assembly plants. Sony values the business’s fixed assets at $ 636 million.

Potential buyers could include BYD Co Ltd, a Chinese carmaker backed by billionaire investor Warren Buffett, and Taiwan’s Hon Hai – which part owns Sharp’s advanced LCD panel plant in Sakai, western Japan, and is in talks to buy TV assembly plants in China, Malaysia and Mexico for $ 667 million, Japan’s Sankei newspaper has reported.

Sharp has mortgaged nearly all its properties to secure a $ 4.6 billion bailout from Japanese banks and so has few assets to offer in a grand garage sale.

Instead, it’s selling part of the garage.

Qualcomm has agreed to buy a 5 percent stake in Sharp, making it the largest shareholder. Hon Hai, which earlier this year agreed to invest in Sharp – before its stock slumped in the wake of record losses – has said it remains interested in taking a stake.

“Whatever they can get to get through this fiscal period by scaling down their operation is a critical step for them to remain afloat,” said Fitch’s Lim.

($ 1 = 82.4700 Japanese yen)

(Additional reporting by Reiji Murai; Editing by Ian Geoghegan)

Tech News Headlines – Yahoo! News

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Tim McGraw and Faith Hill Kick Off Special Series of Las Vegas Shows

By Mark Gray

12/09/2012 at 05:00 PM EST

Tim McGraw and Faith Hill

Denise Truscello/WireImage

Tim McGraw and Faith Hill looked at each other, their hands on each others knees and shared a passionate kiss just after midnight Sunday morning.

The moment was a long time coming – it capped off their first weekend as a Las Vegas headlining act.

Earlier in the 90 minute show, McGraw told the crowd at the Venetian that he and his wife were going to "have fun tonight" and it genuinely seemed like they did, singing with each other for several songs while still letting the other perform their solo hits. Though the show – called the Soul2Soul series – is technically not the same "residency" show Las Vegas is known for, the couple will perform for 10 weekends through April.

At a press conference several months ago, McGraw and Hill promised a "personal" show, and they delivered in a big way. In fact, it got very personal as McGraw complimented his wife on her flowing black dress, saying, "It's gonna look good on the floor later."

The duo also took a moment to sit down and speak with the crowd. Though they didn't field any questions, they spoke about the most common questions they get asked. "We always get asked what was the music we heard first, who influenced us," Hill said.

Rather than answer it, the duo then sing a few of their main influences – Hill sang George Strait; McGraw sang The Eagles.

"I love doing other people's music, better than my own," McGraw joked.

With few bells and whistles, the show puts the focus squarely on it's two superstars, and considering the rousing ovations McGraw and Hill received Saturday, that's perfectly fine with their fans.

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Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

___

Johnson can be reached at https://twitter.com/GeneAPseattle

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Shares crawl higher as China, U.S. data brighten outlook

SINGAPORE (Reuters) - Asian shares touched a 16-month high on Monday as investors took heart from rising factory output growth in China and a falling unemployment rate in the United States that raised hopes about the outlook for the world's top two economies.

The positive mood was tempered by Chinese trade data that saw both exports and imports come in below forecasts, but equities and commodities such as copper and oil remained in the black. European shares were seen opening flat-to-higher.

"At this point, bad data is not as much of a surprise for the market as good data is," said Christian Keilland, head of trading at BTIG in Hong Kong.

The euro was under pressure, having been knocked by the prospect of a recession in Germany and political uncertainty in Italy after Prime Minister Mario Monti, an investors' favorite, said at the weekend he intended to resign early.

MSCI's broadest index of Asia Pacific shares outside Japan <.miapj0000pus> inched up 0.2 percent and Tokyo's Nikkei share average <.n225> firmed 0.1 percent.

Financial spreadbetters called London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> to open up about 0.1 percent. <.t><.l><.axjo/>

The MSCI index rose more than 1 percent last week, its third successive weekly gain, taking it to levels not seen since early August 2011. There was a further boost for regional markets on Sunday when China reported a November pick-up in factory output and retail-sales growth to eight-month highs.

However, data released by China on Monday showed exports rose in November at a much weaker pace than expected, while imports were flat.

"The export slowdown shows external demand faces uncertainty due to concerns over the fiscal cliff in the US," said Zhang Zhiwei, chief China economist at Nomura in Hong Kong. "Nonetheless it does not change our view that growth is on track for a strong recovery in Q4, as (growth) is mostly domestically driven."

On Wall Street, the Dow <.dji> and S&P 500 <.spx> had risen modestly on Friday after an unexpected fall in the U.S. jobless rate. S&P 500 futures were flat on Monday. <.n/>

MARKETS WATCH ITALY

In Europe, investors will be hoping the weakness in external demand evident in the Chinese export number is not a pointer for German trade data due later on Monday.

The euro slid in early trading towards a two-week low of $1.2876 plumbed on Friday, before popping back above $1.29. Investors had sold the euro after Germany's central bank on Friday warned that the euro zone's biggest economy could soon enter recession.

Italian Prime Minister Monti's surprise announcement at the weekend came a few days after former Prime Minister Silvio Berlusconi abruptly withdrew support for Monti's technocrat government, formed over a year ago in an effort to restore Italy's credibility with investors.

"If Monti's pro-euro stance is to back off, that should raise concerns about the euro," said Junya Tanase, chief currency strategist at JPMorgan Chase in Tokyo.

Italian bond yields will be closely watched on Monday. The 10-year yield, the main barometer of investor confidence, stood at 4.5 percent at the end of last week, 323 basis points higher than the yield on the lower risk German equivalent but well below the 7.3 percent peak hit last year, when the spread over German Bunds hit 550 points.

The U.S. dollar rose about 0.3 percent against a basket of major currencies <.dxy>.

Commodity markets were also generally firmer, with copper, which draws strength from expectations of Chinese industrial demand, rising 0.9 percent to around $8,105 a metric ton (1.1023 tons) and oil rising around 0.5 percent.

Brent crude traded around $107.60 a barrel and U.S. crude fetched about $86.40.

"Investors are slightly more optimistic about China's economic recovery than before and that is supportive for oil," said Ken Hasegawa, a commodity sales manager at Newedge Japan.

The easy outlook for monetary policy continued to support gold, with the U.S. Federal Reserve expected to signal this week it will continue to pump money into the economy in 2013. Also, there was talk of a possible rate cut next year by the European Central Bank.

Spot gold firmed 0.2 percent to around $1,707 an ounce.

(Additional reporting by Thuy Ong in Sydney and Manash Goswami in Singapore; Editing by Richard Borsuk)

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Karzai Implicates Pakistan in Attack on Afghan Spy Chief

KABUL, Afghanistan — The suicide bomber who tried to assassinate Afghanistan’s powerful new intelligence chief came from Pakistan and the attack was organized with the help of a sophisticated foreign intelligence service, President Hamid Karzai said Saturday.

Mr. Karzai said he would ask for clarification from Pakistan’s president, when the two men meet later this month, on whether Pakistan’s intelligence service was involved in any way. He said he wanted Pakistan’s help in easing ordinary Afghans’ suspicions that Pakistani interests were behind the attack — if not directly organizing it, then at least providing help.

The audacious assassination attempt on Asadullah Khalid, who had been leading the National Directorate of Security since September, has taken out of action an important figure in the war against the insurgency. It took place on Thursday when an unidentified attacker smuggled a bomb into a meeting at a guesthouse in central Kabul with Mr. Khalid.

“We will be seeking a lot of clarifications from Pakistan because we know that this man who came in the name of a guest to meet with Asadullah Khan Khalid came from Pakistan,” Mr. Karzai said at a news conference at the presidential palace here. “We know that for a fact, it is clear.”

The bomb, which Afghan authorities said was concealed around the attacker’s groin, left Mr. Khalid seriously injured.

The Taliban claimed responsibility, but Mr. Karzai said the attack was too sophisticated to be the work of the Taliban alone.

“This is not the work of Taliban,” he said. “This is a very professional and well-engineered attack. Taliban are not able to do this, but there are strong and skilled hands involved in the attack.”

Mr. Khalid, in his ascendancy to the top of the Afghan intelligence service, had emerged as one of the Taliban’s fiercest opponents and was also a strong critic of Pakistan’s influence in the country.

Mr. Karzai provided no evidence linking the attack to Pakistan. The government regularly accuses Pakistan of involvement in attacks, and has done so after assaults on other senior Afghan officials in recent years.

The president drew a distinction between different groups of the Taliban and said some were clearly controlled by the intelligence agencies of neighboring countries, although he said he had no evidence of where. “This is the work of a complicated, sophisticated and professional intelligence agency,” he said.

Mr. Karzai also said the attack was an effort to undermine progress toward meaningful negotiations. “Whenever the peace talks are getting closer to a conclusion or success being achieved in the peace process or hopes being achieved, we face such attacks,” he said.

Many Afghans have raised questions about how an attacker could get so close to such a powerful man regarded as an extremely sophisticated operator.

Mr. Karzai admitted that a security screening had failed, but the government’s statement that the bomb was concealed around the attacker’s groin suggests why it was not detected: an invasive search would have violated Afghanistan’s traditional mores.

Mr. Karzai said Mr. Khalid himself had prevented a more thorough search out of respect for his guest and Afghan tradition.

Mr. Karzai also said Mr. Khalid had told him the evening before the attack about the planned meeting. There was no information about who the attacker was, but Mr. Khalid told him that he hoped the meeting would advance the country’s peace and security, the president said.

Mr. Karzai visited Mr. Khalid on Thursday at a hospital in Kabul before he was taken to better medical facilities at Bagram Air Base, one of the largest coalition bases in Afghanistan.

According to Western officials, Mr. Khalid has serious abdominal injuries and will need multiple operations. Mr. Karzai on Saturday offered few details of the injuries, but said that Mr. Khalid was improving and was now fully conscious and able to speak, and move his hands.

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Michelle Branch's Daughter's Dream Job Is For the Birds - Literally

Mom & Babies
Celebrity Baby Blog

12/03/2012 at 02:00 PM ET

Sthanlee B. Mirador/Shooting Star

It seems as if Michelle Branch‘s daughter won’t be following in her musical footsteps any time soon.

While the Grammy Award winning singer/songwriter and her husband, bass player Teddy Landau, are no strangers to the stage, 7-year-old Owen Isabelle has found her niche in nature.

“I think because my husband and I are both musicians, she kind of feels like she has to do something a little bit more serious than her mom and dad,” the Cook Taste Eat host, 29, tells PEOPLE.

“Since she was 3 or 4 years old, she was always into science and dinosaurs and watching nature shows.”

In particular, all-things aviary has struck a chord with the little girl, who has already happily declared her future dream job.

“She’s obsessed with birds. She’s been begging to have a pet bird, which I will not allow,” saya Branch. “[Owen] claims she’s going to be an ornithologist when she grows up. Literally, it’s birds 24/7 — every book she wants is birds, stickers, drawings, clothes, everything.”

And as sure as she is of her pending career plans, Owen is just as confident in her political views. Happy to reveal who would have earned her support, the little girl has no qualms about divulging the deciding factor during the recent Presidential election.

“Around election time she said, ‘You know Mom, if I could vote, I would vote for Barack Obama.’ And I said, ‘Oh, really, that’s so interesting. Why?’” Branch recalls.

“And she said, ‘Well, remember that one time we got to go to the White House and meet him? I don’t vote for strangers.’”

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