France bombs Islamist strongholds in north Mali

BAMAKO/PARIS (Reuters) - French fighter jets pounded Islamist rebel strongholds deep in northern Mali on Sunday as Paris poured more troops into the capital Bamako, awaiting a West African force to dislodge al Qaeda-linked insurgents from the country's north.

The attacks on Islamist positions near the ancient desert trading town of Timbuktu and Gao, the largest city in the north, marked a decisive intensification on the third day of the French mission, striking at the heart of the vast area seized by rebels in April.

France is determined to end Islamist domination of northern Mali, which many fear could act as a base for attacks on the West and for links with al Qaeda in Yemen, Somalia and North Africa.

Defense Minister Jean-Yves Le Drian said France's sudden intervention on Friday had prevented the advancing rebels from seizing Bamako. He vowed that air strikes would continue.

"The president is totally determined that we must eradicate these terrorists who threaten the security of Mali, our own country and Europe," he told French television.

Residents and rebel leaders had reported air raids early on Sunday in the towns of Lere and Douentza in central Mali, forcing Islamists to withdraw. As the day progressed, French jets struck targets further to the north, including near the town of Kidal, the epicenter of the rebellion.

In Gao, a dusty town on the banks of the Niger river where Islamists have imposed an extreme form of sharia law, residents said French jets pounded the airport and rebel positions. A huge cloud of black smoke rose from the militants' camp in the city's north, and pick-up trucks ferried dead and wounded to hospital.

"The planes are so fast you can only hear their sound in the sky," resident Soumaila Maiga said by telephone. "We are happy, even though it is frightening. Soon we will be delivered."

Paris said four Rafale jets flew from France to strike rebel training camps, logistics depots and infrastructure around Gao with the aim of weakening the rebels and preventing them from returning southward.

"We blocked the terrorists' advance and from today what we've started to do is to destroy the terrorists' bases behind the front line," French Foreign Minister Laurent Fabius told LCI television.

France has deployed about 550 soldiers to Mali under "Operation Serval" -- named after an African wildcat -- split between Bamako and the town of Mopti, 500 km (300 miles) north.

In Bamako, a Reuters cameraman saw more than 100 French troops disembark on Sunday from a military cargo plane at the international airport, on the outskirts of the capital.

The city's streets were calm, with the sun streaking through the dusty air as the seasonal Harmattan wind blew from the Sahara. Many cars had French flags draped from the windows to celebrate Paris's intervention.

"We thank France for coming to our aid," said resident Mariam Sidibe. "We hope it continues till the north is free."

AFRICAN TROOPS EXPECTED

More than two decades of peaceful elections had earned Mali a reputation as a bulwark of democracy, but that image unraveled in a matter of weeks after a military coup in March which left a power vacuum for the Islamist rebellion.

France convened a U.N. Security Council meeting for Monday to discuss Mali. French President Francois Hollande's intervention has won plaudits from leaders in Europe, Africa and the United States but it is not without risks.

It raised the threat level for eight French hostages held by al Qaeda allies in the Sahara and for the 30,000 French expatriates living in neighboring, mostly Muslim states.

Concerned about reprisals, France has tightened security at public buildings and on public transport. It advised its 6,000 citizens to leave Mali as spokesmen for Ansar Dine and al Qaeda's north Africa wing AQIM promised to exact revenge.

In its first casualty of the campaign, Paris said a French pilot was killed on Friday when rebels shot down his helicopter.

Hours earlier, a French intelligence officer held hostage in Somalia by al Shabaab extremists linked to al Qaeda was killed in a failed commando raid to free him.

Hollande says France's aim is simply to support a mission by West African bloc ECOWAS to retake the north, as mandated by a U.N. Security Council resolution in December.

With Paris pressing West African nations to send their troops quickly, Ivory Coast President Alassane Ouattara, who holds the rotating ECOWAS chairmanship, kick-started the operation to deploy 3,300 African soldiers.

Ouattara, installed in power with French military backing in 2011, convened a summit of the 15-nation bloc for Saturday in Ivory Coast to discuss the mission.

"The troops will start arriving in Bamako today and tomorrow," said Ali Coulibaly, Ivory Coast's African Integration Minister. "They will be convoyed to the front."

The United States is considering sending a small number of unarmed surveillance drones to Mali as well as providing logistics support, a U.S. official told Reuters. Britain and Canada have also promised logistical support.

Former French colonies Senegal, Niger and Burkina Faso have all pledged to deploy 500 troops within days. In contrast, regional powerhouse Nigeria, due to lead the ECOWAS force, has suggested it would take time to train and equip the troops.

HOUSE-TO-HOUSE SEARCHES

France, however, appeared to have assumed control of the operation on the ground. Its airstrikes allowed Malian troops to drive the Islamists out of the strategic town of Konna, which they had briefly seized this week in their southward advance.

Calm returned to Konna after three nights of combat as the Malian army crushed any remaining rebel fighters. A senior army official said more than 100 rebels had been killed.

"Soldiers are patrolling the streets and have encircled the town," one resident, Madame Coulibaly, told Reuters by phone. "They are searching houses for arms or hidden Islamists."

Analysts expressed doubt, however, that African nations would be able to mount a swift operation to retake north Mali -- a harsh, sparsely populated terrain the size of France -- as neither the equipment nor ground troops were prepared.

"My first impression is that this is an emergency patch in a very dangerous situation," said Gregory Mann, associate professor of history at Columbia University, who specializes in francophone Africa and Mali in particular.

While France and its allies may be able to drive rebel fighters from large towns, they could struggle to prise them from mountain redoubts in the region of Kidal, 300 km (200 miles) northeast of Gao.

Human Rights Watch said at least 11 civilians, including three children, had been killed in the fighting. A spokesman for Doctors Without Borders in neighboring Mauritania said about 200 Malian refugees had fled across the border to a camp at Fassala and more were on their way.

In Bamako, civilians tried to contribute to the war effort.

"We are very proud and relieved that the army was able to drive the jihadists out of Konna. We hope it will not end there, that is why I'm helping in my own way," said civil servant Ibrahima Kalossi, 32, one of over 40 people who queued to donate blood for wounded soldiers.

(Additional reporting by Adama Diarra, Tiemoko Diallo and Rainer Schwenzfeier in Bamako, Pascal Fletcher in Johannesburg, Joe Bavier in Abidjan, Catherine Bremer, Leila Aboud and John Irish in Paris and Phil Stewart in Washington; Writing by Daniel Flynn; Editing by Will Waterman and Roger Atwood)

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Wall Street Week Ahead: Attention turns to financial earnings

NEW YORK (Reuters) - After over a month of watching Capitol Hill and Pennsylvania Avenue, Wall Street can get back to what it knows best: Wall Street.

The first full week of earnings season is dominated by the financial sector - big investment banks and commercial banks - just as retail investors, free from the "fiscal cliff" worries, have started to get back into the markets.

Equities have risen in the new year, rallying after the initial resolution of the fiscal cliff in Washington on January 2. The S&P 500 on Friday closed its second straight week of gains, leaving it just fractionally off a five-year closing high hit on Thursday.

An array of financial companies - including Goldman Sachs and JPMorgan Chase - will report on Wednesday. Bank of America and Citigroup will join on Thursday.

"The banks have a read on the economy, on the health of consumers, on the health of demand," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.

"What we're looking for is demand. Demand from small business owners, from consumers."

EARNINGS AND ECONOMIC EXPECTATIONS

Investors were greeted with a slightly better-than-anticipated first week of earnings, but expectations were low and just a few companies reported results.

Fourth quarter earnings and revenues for S&P 500 companies are both expected to have grown by 1.9 percent in the past quarter, according to Thomson Reuters I/B/E/S.

Few large corporations have reported, with Wells Fargo the first bank out of the gate on Friday, posting a record profit. The bank, however, made fewer mortgage loans than in the third quarter and its shares were down 0.8 percent for the day.

The KBW bank index <.bkx>, a gauge of U.S. bank stocks, is up about 30 percent from a low hit in June, rising in six of the last eight months, including January.

Investors will continue to watch earnings on Friday, as General Electric will round out the week after Intel's report on Thursday.

HOUSING, INDUSTRIAL DATA ON TAP

Next week will also feature the release of a wide range of economic data.

Tuesday will see the release of retail sales numbers and the Empire State manufacturing index, followed by CPI data on Wednesday.

Investors and analysts will also focus on the housing starts numbers and the Philadelphia Federal Reserve factory activity index on Thursday. The Thomson Reuters/University of Michigan consumer sentiment numbers are due on Friday.

Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis, said he expected to see housing numbers continue to climb.

"They won't be that surprising if they're good, they'll be rather eye-catching if they're not good," he said. "The underlying drive of the markets, I think, is economic data. That's been the catalyst."

POLITICAL ANXIETY

Worries about the protracted fiscal cliff negotiations drove the markets in the weeks before the ultimate January 2 resolution, but fear of the debt ceiling fight has yet to command investors' attention to the same extent.

The agreement was likely part of the reason for a rebound in flows to stocks. U.S.-based stock mutual funds gained $7.53 billion after the cliff resolution in the week ending January 9, the most in a week since May 2001, according to Thomson Reuters' Lipper.

Markets are unlikely to move on debt ceiling news unless prominent lawmakers signal that they are taking a surprising position in the debate.

The deal in Washington to avert the cliff set up another debt battle, which will play out in coming months alongside spending debates. But this alarm has been sounded before.

"The market will turn the corner on it when the debate heats up," Prudential Financial's Krosby said.

The CBOE Volatility index <.vix> a gauge of traders' anxiety, is off more than 25 percent so far this month and it recently hit its lowest since June 2007, before the recession began.

"The market doesn't react to the same news twice. It will have to be more brutal than the fiscal cliff," Krosby said. "The market has been conditioned that, at the end, they come up with an agreement."

(Reporting by Gabriel Debenedetti; editing by Rodrigo Campos)

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Broncos, Ravens tied at 21 after 1st half

DENVER (AP) — Torrey Smith breezed past Champ Bailey for two long touchdowns as the Baltimore Ravens' quick-strike ability allowed them to keep up with the AFC's top-seeded Denver Broncos and head into halftime tied at 21 Saturday.

Smith had just two catches in the first half, but they covered 91 yards and both went for scores.

He sped past Bailey for a 59-yard TD in the first quarter and then beat him down the sideline for a 32-yard TD catch 36 seconds left before the break that capped a three-play, 58-yard drive that began after Matt Prater botched a 52-yard field goal attempt that would have given Denver a double-digit lead.

Smith beat Bailey several other times only to see Joe Flacco overthrow him, and Denver defensive coordinator Jack Del Rio was sure to reconsider his scheme not giving Bailey any safety help over the top so they could stay in and counter Baltimore's tough tight ends.

Running back Knowshon Moreno's first touchdown catch of the season, a 13-yard grab from Peyton Manning in tight coverage by linebacker Dannell Ellerbe, had given the Broncos a 21-14 lead.

The Ravens rebounded from Trindon Holliday's 90-yard punt return touchdown, the longest in NFL playoff history, to score two TDs in a 42-second span in the first quarter.

The 13-degree temperature at kickoffs made this the coldest playoff game ever played in Denver. The wind chill was 2. The only colder game played in Denver was against San Diego on Dec. 10, 1972, when the temperature was 9 degrees.

Manning, the league's only four-time MVP, was 0-3 in previous playoff games below 40 degrees, all while playing for the Indianapolis Colts, who released him last year after a series of neck operations.

Manning had a stellar bounce-back season in Denver, throwing for 4,659 yards and a team-record 37 TDs.

Wearing gloves on both hands for the first time in his career — the one on the right hand as much a concession to the altered feel of his grip following the four neck surgeries as it was for the wintry weather, Manning threw a 15-yard TD toss to Brandon Stokley to tie it at 14.

Holliday got the scoring started when he fielded Sam Koch's punt, broke one tackle and raced down the Ravens' sideline, avoiding the punter as he galloped into the end zone. The previous longest TD on a punt return in a playoff game was Jermaine Lewis' 88-yarder for Baltimore in 2001.

Jacoby Jones botched the ensuing kickoff return, losing the handle on the ball as he brought it out before smothering it at the 6.

After a key pass interference call on Tony Carter allowed the Ravens to get out from the shadow of their end zone, Baltimore tied it at 7 when Smith got behind Bailey and hauled in Flacco's 59-yard touchdown toss.

Forty-two seconds later, cornerback Corey Graham picked off a Manning pass that deflected off receiver Eric Decker and returned it 39 yards for the score — and the Broncos trailed for the first time since Dec. 2 against Tampa Bay.

The Broncos were trying to avoid becoming yet another No. 1 seed to lose in the divisional round. Since 2005, eight of the 14 top-seeded teams lost their first game in the playoffs, four in each conference.

___

Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

___

Follow AP Pro Football Writer Arnie Stapleton on Twitter: http://twitter.com/arniestapleton

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Astronaut Hall of Fame to Add 3 Shuttle Veterans in April

A trailblazing commander, the commander of a trailblazer, and a payload commander will be inducted into the U.S. Astronaut Hall of Fame this April.

Eileen Collins, the first woman to lead a shuttle mission, Curtis Brown, who commanded John Glenn’s triumphant return to space and Bonnie Dunbar, who managed life and science experiments on Spacelab and Mir space station missions, were confirmed as this year’s honorees by the Astronaut Scholarship Foundation (ASF), which oversees the Hall of Fame’s annual selections.

The three veteran space shuttle crew members will be added to the 81 astronauts enshrined in the Astronaut Hall of Fame since 1990, including NASA‘s Mercury, Gemini and Apollo program pioneers.

An induction ceremony will be held on Saturday, April 20, at the Kennedy Space Center Visitor Complex in Florida, where the Astronaut Hall of Fame is located.

The Astronaut Scholarship Foundation will host a gala in the three astronauts’ honor on Friday, April 19, with many of the Hall’s earlier inductees expected to attend. [7 Notable Space Shuttle Astronauts]

Trailblazing commander

Twenty-seven women proceeded Eileen Collins into space, but it was on her first spaceflight in February 1995 that she became the first female astronaut to take control of a spacecraft. As pilot of space shuttle Discovery on the STS-63 mission, Collins helped her commander (and 2009 Hall of Fame inductee) James Wetherbee perform the first shuttle rendezvous with the Russian space station Mir. [Women in Space: A Gallery of Firsts (Photos)]

Two years later, Collins revisited Mir, this time docking at the outpost, as pilot of Atlantis’ STS-84 mission. She then was assigned her first command and, as the first female mission commander, led the STS-93 crew flying Columbia to deploy the Chandra X-ray Observatory in July 1999.

It was the tragic loss of Columbia, 10 years ago this Feb. 1, that led to Collins leading the fleet’s second “return to flight” mission. As commander of the STS-114 mission in 2005, Collins and her crew visited the International Space Station (ISS) and tested new safety procedures.

Collins left NASA in 2006 after logging nearly 40 days in space. A former test pilot, Collins retired from the U.S. Air Force with the rank of colonel.

Commanding a trailblazer

Curtis Brown flew six times to space, including leading a mission to service the Hubble Space Telescope, but his most high profile flight came in 1998 when he commanded a crew of five “astronaut heroes and an American legend.”

Selected as an astronaut in 1987, Brown’s first flight was as pilot of NASA’s 50th space shuttle mission, STS-47 in Sept. 1992. He followed that with two more flights as pilot: STS-66, dedicated to studying how the energy of the sun affects Earth’s climate and its environment, and STS-77, devoted to commercial science experiments.

Brown’s first command was of the STS-85 mission, which deployed and retrieved a satellite to study Earth’s middle atmosphere. The flight also tested a Japanese robotic arm before its design was to be used on board the International Space Station.

It was a crew member, rather than a payload, that grabbed the spotlight on Brown’s next flight. Launching on the 25th mission for space shuttle Discovery, Brown’s six member STS-95 crew included John Glenn, who 36 years earlier became the first American to orbit the Earth. The mission was dedicated in part to studying the effects microgravity had on the aging process as Glenn, at 77, was the oldest person to ever fly into space.

Brown’s final flight was as commander of the third mission to service the Hubble Space Telescope. Flying on board Discovery, the STS-103 mission broke the record for the highest orbit ever achieved by the space shuttle. At their apogee, Brown and his crewmates were 378 miles (609 kilometers) above the Earth.

Brown retired from the astronaut corps soon after returning to Earth, having logged over his career a total of nearly 60 days in space. A retired U.S. Air Force colonel, he went on to fly for American Airlines.

Payload commander

Bonnie Dunbar was working as a guidance and navigation officer (GUIDO) in Mission Control when she was chosen as an astronaut in August 1981, just four months after the space shuttle began flying.

The ninth woman to fly in space, Dunbar’s maiden launch in 1985 was on board Challenger’s final complete mission before it was lost in flight in January 1986. Dunbar and her seven STS-61A crewmates set the record for the largest contingent on any single spacecraft for the entire mission from launch to landing.

Dunbar’s second mission, STS-32, saw her take control of the shuttle’s robotic arm to grab hold of the Long Duration Exposure Facility (LDEF), a school bus-sized cylindrical experiment module, for its return to the Earth. Her third spaceflight, STS-50, set a new duration record of 13 days as the first Extended Duration Orbiter (EDO) mission.

Dunbar’s fourth trip to space marked the first time a space shuttle docked with Russia’s Mir space station, as well as the 100th crewed mission for the United States. Prior to flying on STS-71, Dunbar trained for 13 months at the Yuri Gagarin Cosmonaut Training Center in Star City, located outside of Moscow, where she qualified for a long duration flight aboard Mir (a mission that never came to be).

For her final flight, Dunbar served as payload commander on STS-89, the second to last shuttle-Mir docking, making her responsible for all payload activities including over 20 technology and science experiments. In total, she logged more than 50 days in orbit in the course of her flying five missions.

Before resigning from NASA in 2005, Dunbar was named assistant director of the Missions Operations Directorate at Johnson Space Center in Houston and served as the deputy associate administrator for the Office of Life and Microgravity Sciences at NASA Headquarters. Following her departure, she served as president and CEO of The Museum of Flight in Seattle until April 2010.

Joining the ranks

Brown, Collins and Dunbar comprise the 12th class of astronauts from the space shuttle program chosen for the U.S. Astronaut Hall of Fame. They are the second group of space shuttle veterans to be selected since the 30-year program came to its end in 2011.

They were chosen by a committee of more than 80 retired NASA officials, historians, journalists and all the members of the Hall of Fame, as organized and managed by the Astronaut Scholarship Foundation.

To have been eligible for consideration in 2013, astronauts needed to have made their first space mission in 1995 or earlier. They also had to be retired from flight status as a NASA commander, pilot or mission specialist for at least five years, be a U.S. citizen; and have orbited the Earth at least once.

Follow collectSPACE on Facebook and Twitter @collectSPACE and editor Robert Pearlman @robertpearlman. Copyright 2012 collectSPACE.com. All rights reserved.

Copyright 2013 SPACE.com, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Abandoning Afghanistan a bad idea

U.S. Marines from the 3rd Battalion 8th Marines Regiment start their patrol in Helmand Province on June 27.

STORY HIGHLIGHTS

• White House aide suggested all U.S. troops could be withdrawn from Afghanistan


• Peter Bergen said the idea would be dangerous and send the wrong message


• He says U.S. has abandoned Afghanistan before and saw the rise of the Taliban


• Bergen: U.S. is seeking agreement that military will have immunity from prosecution

Editor's note: Peter Bergen is CNN's national security analyst and the author of "Manhunt: The Ten-Year Search for bin Laden, from 9/11 to Abbottabad."

(CNN) -- Afghan President Hamid Karzai will meet with President Barack Obama on Friday to discuss the post-2014 American presence in Afghanistan.

The U.S. military has already given Obama options under which as few as 6,000 or as many as 20,000 soldiers would remain in Afghanistan after 2014. Those forces would work as advisers to the Afghan army and mount special operations raids against the Taliban and al Qaeda.

Read more: U.S. may remove all troops from Afghanistan after 2014

Peter Bergen

But on Tuesday, Ben Rhodes, the White House's deputy national security adviser, told reporters that the Obama administration is mulling the idea of removing all U.S. troops from Afghanistan after the NATO combat mission finishes at the end of 2014.

This may be a negotiating ploy by the Obama administration as it gets down to some hard bargaining with Karzai, who has long criticized many aspects of the U.S. military presence and who is likely to be reluctant to accede to a key American demand: That any U.S. soldiers who remain in Afghanistan after 2014 retain immunity from prosecution in the dysfunctional Afghan court system. It was this issue that led the U.S. to pull all its troops out of Iraq in December, 2011 after failing to negotiate an agreement with the Nuri al-Maliki government.

Read more: Defense officials to press Karzai on what he needs

Or this may represent the real views of those in the Obama administration who have long called for a much-reduced U.S. presence in Afghanistan, and it is also in keeping with the emerging Obama doctrine of attacking al Qaeda and its allies with drones but no American boots on the ground. And it certainly aligns with the view of most Americans, only around a quarter of whom now support the war in Afghanistan, according to a poll taken in September.

Security Clearance: Afghanistan options emerge

In any case, zeroing out U.S. troop levels in the post-2014 Afghanistan is a bad idea on its face -- and even raising this concept publicly is maladroit strategic messaging to Afghanistan and the region writ large.

Why so? Afghans well remember something that most Americans have forgotten.

After the Soviet Union withdrew from Afghanistan, something that was accomplished at the cost of more than a million Afghan lives and billions of dollars of U.S. aid, the United States closed its embassy in Afghanistan in 1989 during the George H. W. Bush administration and then zeroed out aid to one of the poorest countries in the world under the Clinton administration. It essentially turned its back on Afghans once they had served their purpose of dealing a deathblow to the Soviets.

As a result, the United States had virtually no understanding of the subsequent vacuum in Afghanistan into which eventually stepped the Taliban, who rose to power in the mid-1990s. The Taliban granted shelter to Osama bin Laden and his al Qaeda organization from 1996 onward.

Read more: Court considers demand that U.S. release photos of bin Laden's body

After the overthrow of the Taliban, a form of this mistake was made again by the George W. Bush administration, which had an ideological disdain for nation building and was distracted by the Iraq War, so that in the first years after the fall of the Taliban, only a few thousand U.S. soldiers were stationed in Afghanistan.

The relatively small number of American boots on the ground in Afghanistan helped to create a vacuum of security in the country, which the Taliban would deftly exploit, so that by 2007, they once again posed a significant military threat in Afghanistan.

In 2009, Obama ordered a surge of 30,000 troops into Afghanistan to blunt the Taliban's gathering momentum, which it has certainly accomplished.

Read more: Inside the Taliban

But when Obama announced the new troops of the Afghan surge, most media accounts of the speech seized on the fact that the president also said that some of those troops would be coming home in July 2011.

This had the unintended effect of signaling to the Taliban that the U.S. was pulling out of Afghanistan reasonably soon and fit into the longstanding narrative that many Afghans have that the U.S. will abandon them again.

Similarly, the current public discussion of zero U.S. troop presence in Afghanistan after 2014 will encourage those hardliner elements of the Taliban who have no interest in a negotiated settlement and believe they can simply wait the Americans out.

It also discourages the many millions of Afghans who see a longtime U.S. presence as the best guarantor that the Taliban won't come back in any meaningful way and also an important element in dissuading powerful neighbors such as Pakistan from interference in Afghanistan's internal affairs.

Read related: Afghanistan vet finds a new way to serve

Instead of publicly discussing the zero option on troops in Afghanistan after 2014, a much smarter American messaging strategy for the country and the region would be to emphasize that the Strategic Partnership Agreement that the United States has already negotiated with Afghanistan last year guarantees that the U.S. will have some form of partnership with the Afghans until 2024.

In this messaging strategy, the point should be made that the exact size of the American troop presence after 2014 is less important than the fact that U.S. soldiers will stay in the country for many years, with Afghan consent, as a guarantor of Afghanistan's stability.

The United States continues to station thousands of troops in South Korea more than five decades after the end of the Korean War. Under this American security umbrella, South Korea has gone from being one of the poorest countries in the world to one of the richest.

It is this kind of model that most Afghans want and the U.S. needs to provide so Afghanistan doesn't revert to the kind of chaos that beset it in the mid-1990s and from which the Taliban first emerged.

Read more: What's at stake for Afghan women?

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Kelly to stay at Notre Dame

SOUTH BEND, Ind. -- Brian Kelly will remain Notre Dame's football coach, the school announced Saturday.

"This week, I had an incredible opportunity to speak with one of the premier organizations in sports about becoming their head coach," Kelly said in a statement released by the school.

"Like every kid who has ever put on a pair of football cleats, I have had thoughts about being a part of the NFL. However, after much reflection and conversation with those closest to me, I have decided to remain at Notre Dame."

Kelly interviewed with the Eagles on Tuesday, the day after the Irish's 42-14 loss to Alabama in the BCS championship game, but no word had emanated from South Bend on the status of the discussions until Saturday.

"This decision was motivated purely by my love for Notre Dame and the entire Fighting Irish community, the young men I have the great fortune to coach, and my desire to continue to build the best football program in the country," Kelly said. "We still have a lot of work to do and my staff and I are excited about the challenges ahead."

An extension and raise have been on the table for Kelly since well before the BCS title game took place and the process toward that is expected to continue.

"I was always confident that Brian would continue to lead our football program," athletic director Jack Swarbrick said in a statement. "I am very happy to have that confirmed and share Brian's excitement about what lies ahead for our program.

"I appreciate the Eagles reaching out to request permission to speak with Brian, and I also appreciate Brian keeping me fully informed throughout this process. We all look forward to what’s ahead for Notre Dame football."

What's unclear is whether there was actually ever an offer for Kelly from the Eagles. It's a moot point now, though the franchise issued a statement about the pursuit of college coaches such as Kelly and Oregon's Chip Kelly and Penn State's Bill O'Brien before him.

"There is no question we spent a considerable amount of time and effort looking at who we thought were the best collegiate candidates for our head coaching job," the team statement read.

"We did so knowing that there was a remote chance that these coaches would leave their current posts. We understood that going into the process, but we wanted to leave no stone unturned while trying to find the best head coach for the Philadelphia Eagles. We have no regrets about the effort we made in that direction and we will continue to proceed as planned in our search."

bchamilton@tribune.com

Twitter @ChiTribHamilton

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Russia rejects Assad exit as precondition for Syria deal

MOSCOW/BEIRUT (Reuters) - Russia voiced support on Saturday for international peace envoy Lakhdar Brahimi but insisted Syrian President Bashar al-Assad's exit cannot be a precondition for a deal to end the country's conflict.

Some 60,000 Syrians have been killed during the 21-month-old revolt and world powers are divided over how to stop the escalating bloodshed. Government aircraft bombed outer districts of Damascus on Saturday after being grounded for a week by stormy weather, opposition activists in the capital said.

A Russian Foreign Ministry statement following talks on Friday in Geneva with the United States and Brahimi reiterated calls for an end to violence in Syria, but there was no sign of a breakthrough.

Brahimi said the issue of Assad, who the United States, European powers and Gulf-led Arab states insist must step down to end the civil war, appeared to be a sticking point.

Russia's Foreign Ministry said: "As before, we firmly uphold the thesis that questions about Syria's future must be decided by the Syrians themselves, without interference from outside or the imposition of prepared recipes for development."

Russia has been Assad's most powerful international backer, joining with China to block three Western- and Arab-backed U.N. Security Council resolutions aimed to pressure him or push him from power. Assad can also rely on regional powerhouse Iran.

Russia called for "a political transition process" based on an agreement by foreign powers last June.

Brahimi, who is trying to build on that agreement, has met three times with senior Russian and U.S. diplomats since early December and met Assad in Damascus.

Russia and the United States disagreed over what the June agreement meant for Assad, with Washington saying it sent a clear signal he must go and Russia contending it did not.

Qatar on Saturday made a fresh call for an Arab force to end bloodshed in Syria if Brahimi's efforts fail, according to the Doha-based al Jazeera television.

"It is not a question of intervention in Syria in favor of one party against the other, but rather a force to preserve security," Qatar's Prime Minister and Foreign Minister, Sheikh Hamad bin Jassim al-Thani, said in an al Jazeera broadcast.

CONFLICT INTENSIFIES

Moscow has been reluctant to endorse the "Arab Spring" popular revolts of the last two years, saying they have increased instability in the Middle East and created a risk of radical Islamists seizing power.

Although Russia sells arms to Syria and rents one of its naval bases, the economic benefit of its support for Assad is minimal. Analysts say President Vladimir Putin wants to prevent the United States from using military force or support from the U.N. Security Council to bring down governments it opposes.

However, as rebels gain ground in the war, Russia has given indications it is preparing for Assad's possible exit, while continuing to insist he must not be forced out by foreign powers.

Opposition activists say a military escalation and the hardship of winter have accelerated the death toll.

Rebel forces have acquired more powerful anti-tank and anti-aircraft weapons during attacks on Assad's military bases.

Assad's forces have employed increasing amounts of military hardware including Scud-type ballistic missiles in the past two months. New York-based Human Rights Watch said they had also used incendiary cluster bombs that are banned by most nations.

STALEMATE IN CITIES

The weeklong respite from aerial strikes has been marred by snow and thunderstorms that affected millions displaced by the conflict, which has now reached every region of Syria.

On Saturday, the skies were clear and jets and helicopters fired missiles and dropped bombs on a line of towns to the east of Damascus, where rebels have pushed out Assad's ground forces, the Syrian Observatory for Human Rights said.

The British-based group, which is linked to the opposition, said it had no immediate information on casualties from the strikes on districts including Maleiha and farmland areas.

Rebels control large swathes of rural land around Syria but are stuck in a stalemate with Assad's forces in cities, where the army has reinforced positions.

State TV said government forces had repelled an attack by terrorists - a term it uses for the armed opposition - on Aleppo's international airport, now used as a helicopter base.

Reuters cannot independently confirm reports due to severe reporting restrictions imposed by the Syrian authorities and security constraints.

On Friday, rebels seized control of one of Syria's largest helicopter bases, Taftanaz in Idlib province, their first capture of a military airfield.

Eight-six people were killed on Friday, including 30 civilians, the Syrian Observatory said.

(Writing by Oliver Holmes; Editing by Tom Pfeiffer and Doina Chiacu)

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Wall Street Week Ahead: Attention turns to financial earnings

NEW YORK (Reuters) - After over a month of watching Capitol Hill and Pennsylvania Avenue, Wall Street can get back to what it knows best: Wall Street.

The first full week of earnings season is dominated by the financial sector - big investment banks and commercial banks - just as retail investors, free from the "fiscal cliff" worries, have started to get back into the markets.

Equities have risen in the new year, rallying after the initial resolution of the fiscal cliff in Washington on January 2. The S&P 500 on Friday closed its second straight week of gains, leaving it just fractionally off a five-year closing high hit on Thursday.

An array of financial companies - including Goldman Sachs and JPMorgan Chase - will report on Wednesday. Bank of America and Citigroup will join on Thursday.

"The banks have a read on the economy, on the health of consumers, on the health of demand," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.

"What we're looking for is demand. Demand from small business owners, from consumers."

EARNINGS AND ECONOMIC EXPECTATIONS

Investors were greeted with a slightly better-than-anticipated first week of earnings, but expectations were low and just a few companies reported results.

Fourth quarter earnings and revenues for S&P 500 companies are both expected to have grown by 1.9 percent in the past quarter, according to Thomson Reuters I/B/E/S.

Few large corporations have reported, with Wells Fargo the first bank out of the gate on Friday, posting a record profit. The bank, however, made fewer mortgage loans than in the third quarter and its shares were down 0.8 percent for the day.

The KBW bank index <.bkx>, a gauge of U.S. bank stocks, is up about 30 percent from a low hit in June, rising in six of the last eight months, including January.

Investors will continue to watch earnings on Friday, as General Electric will round out the week after Intel's report on Thursday.

HOUSING, INDUSTRIAL DATA ON TAP

Next week will also feature the release of a wide range of economic data.

Tuesday will see the release of retail sales numbers and the Empire State manufacturing index, followed by CPI data on Wednesday.

Investors and analysts will also focus on the housing starts numbers and the Philadelphia Federal Reserve factory activity index on Thursday. The Thomson Reuters/University of Michigan consumer sentiment numbers are due on Friday.

Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis, said he expected to see housing numbers continue to climb.

"They won't be that surprising if they're good, they'll be rather eye-catching if they're not good," he said. "The underlying drive of the markets, I think, is economic data. That's been the catalyst."

POLITICAL ANXIETY

Worries about the protracted fiscal cliff negotiations drove the markets in the weeks before the ultimate January 2 resolution, but fear of the debt ceiling fight has yet to command investors' attention to the same extent.

The agreement was likely part of the reason for a rebound in flows to stocks. U.S.-based stock mutual funds gained $7.53 billion after the cliff resolution in the week ending January 9, the most in a week since May 2001, according to Thomson Reuters' Lipper.

Markets are unlikely to move on debt ceiling news unless prominent lawmakers signal that they are taking a surprising position in the debate.

The deal in Washington to avert the cliff set up another debt battle, which will play out in coming months alongside spending debates. But this alarm has been sounded before.

"The market will turn the corner on it when the debate heats up," Prudential Financial's Krosby said.

The CBOE Volatility index <.vix> a gauge of traders' anxiety, is off more than 25 percent so far this month and it recently hit its lowest since June 2007, before the recession began.

"The market doesn't react to the same news twice. It will have to be more brutal than the fiscal cliff," Krosby said. "The market has been conditioned that, at the end, they come up with an agreement."

(Reporting by Gabriel Debenedetti; editing by Rodrigo Campos)

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Alabama's Lacy, Milliner, Fluker enter NFL draft

TUSCALOOSA, Ala. (AP) — Alabama tailback Eddie Lacy, cornerback Dee Milliner and right tackle D.J. Fluker are entering the NFL draft after helping lead the Crimson Tide to a second straight national title.

Lacy and Milliner announced their plans to skip their senior seasons Friday at a news conference. Fluker couldn't be there for the announcement because he was traveling.

It's another exodus of talented underclassmen for a team that has won three of the past four national championships. Most of the four first-round picks in each of the past two drafts that left Alabama were underclassmen.

"I appreciate what they've done for the University of Alabama but we also acknowledge the fact that from a business standpoint, these guys are making good decisions about their future and what they can do," coach Nick Saban said.

Unlike recent groups of departing juniors from Alabama, only Milliner is pegged as a sure first-round pick.

He was a Jim Thorpe Award finalist and unanimous All-American after recording two interceptions and 22 pass deflections. He and guard Chance Warmack, who was a senior, are projected as the Tide's top current prospects.

"I think while I was here, I met all the goals and team affirmations that I set for myself as a freshman by winning a championship, becoming an All-American, just being part of a team that always loved to win," Milliner said. "I think I fulfilled all my goals and am ready and prepared to go to the next level."

Lacy was MVP of the national championship game against Notre Dame after rushing for 140 yards and scoring two touchdowns. He said he wasn't 100 percent healthy all season until the title game Monday night, but Lacy still ran for 1,322 yards and 17 touchdowns while averaging 6.5 yards per carry.

"We don't have a lot of years to play this position, so you have to go while you can," Lacy said. "I would love to come back. This is a great place. We have the best fans, but I really didn't want to risk coming back and not having such a good year or maybe even risking injury. I've had my share of injuries this year. I feel like you've got to get out while you can."

Lacy thinks he "made a pretty solid statement" in the title game, when he made a spin move into the end zone on a TD catch and on another run pushed 248-pound linebacker Danny Spond away with one hand.

Lacy was recruited in the same class as Trent Richardson, last year's No. 3 pick by Cleveland, but redshirted and then spent two seasons as a backup. He's not widely projected to follow Richardson and 2009 Heisman Trophy winner Mark Ingram into the first round. Lacy said he was projected as a second- or third-round pick in feedback from the NFL, but was impressive in the finale. Ordinarily, Saban only recommends projected first-round picks leave early.

"I'm fully supportive of what Eddie's doing," Saban said. "It's a little bit of a different situation than we've had in the past, but it's a little bit unique as well. Every one of these situations is unique to that particular individual and what his situation is. "

The 6-foot-6, 335-pound Fluker started 35 games for the Tide and was a second-team Associated Press All-American.

He was one of the Tide's top-rated signees in 2009 but came in overweight at about 395 pounds and was redshirted.

"I certainly feel like this year has been his best year as a player, and I feel that he's made a good decision about what he wants to do," said Saban, adding that Fluker has improved as much as any player on the team.

The mammoth Fluker, who wears a size-22 shoe, said in a statement that leaving early "is never an easy decision when you are playing at a place like Alabama."

"''These four years in Tuscaloosa have been the best four years of my life and I appreciate everyone who helped me along the way," he said.

Quarterback AJ McCarron, All-America linebacker C.J. Moseley and guard Anthony Steen have already said they're returning for their senior seasons. Saban didn't rule out other juniors possibly declaring for the draft before Tuesday's deadline.

The Tide does have promising players who have logged plenty of playing time behind Lacy and Milliner, especially. Two freshmen — tailback T.J. Yeldon (1,108 yards, 12 touchdowns) — and cornerback Geno Smith saw significant action.

"You've got people that are going to go to the NFL each year and you've got people behind them that are going to do the same things when their time comes," Milliner said.

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Federal report: Warming is changing US daily life

WASHINGTON (AP) — A massive new federal scientific report says global warming is already changing America from sea to rising sea and how Americans live.

The government issued Friday a 1,146-page draft report that details in dozens of ways how climate change is already disrupting the health, homes and other facets of daily American life. It warns that those disruptions will increase in the future.

The blunt report takes a global environmental issue and explains what it means for different U.S. regions, for various sectors of the economy and for future generations.

The National Climate Assessment doesn’t say what should be done about global warming. White House science adviser John Holdren writes that it will help leaders, regulators, city planners and even farmers figure out what to do to cope with coming changes.

Science News Headlines – Yahoo! News

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