Israel's Lieberman says Palestinian peace accord impossible

JERUSALEM (Reuters) - Israel has no chance of signing a permanent peace accord with the Palestinians and should instead seek a long-term interim deal, the most powerful political partner of Prime Minister Benjamin Netanyahu said on Saturday.

The remarks by Avigdor Lieberman, an ultranationalist whose joint party list with Netanyahu narrowly won a January 22 election while centrist challengers made surprise gains, seemed designed to dampen expectations at home and abroad of fresh peacemaking.

A spring visit to Israel and the Palestinian territories by U.S. President Barack Obama, announced this week, has stirred speculation that foreign pressure for a diplomatic breakthrough could build - though Washington played down that possibility.

In a television interview, ex-foreign minister Lieberman linked the more than two-year-old impasse to pan-Arab political upheaval that has boosted Islamists hostile to the Jewish state.

These include Hamas, rivals of U.S.-backed Palestinian President Mahmoud Abbas, who control the Gaza Strip and spurn coexistence with Israel though they have mooted extended truces.

"Anyone who thinks that in the center of this socio-diplomatic ocean, this tsunami which is jarring the Arab world, it is possible to arrive at the magic solution of a comprehensive peace with the Palestinians does not understand," Lieberman told Israel's Channel Two.

"This is impossible. It is not possible to solve the conflict here. The conflict can be managed and it is important to manage the conflict ... to negotiate on a long-term interim agreement."

Abbas broke off talks in late 2010 in protest at Israel's settlement of the occupied West Bank. He angered Israel and the United States in November by securing a U.N. status upgrade that implicitly recognized Palestinian independence in all the West Bank, East Jerusalem and Gaza.

Israel insists it will keep East Jerusalem and swathes of West Bank settlements under any eventual peace deal. Most world powers consider the settlements illegal because they take up land seized in the 1967 Middle East war.

Lieberman, himself a West Bank settler, said the ball was "in Abu Mazen's (Abbas') court" to revive diplomacy.

Abbas has demanded Israel first freeze all settlement construction. With two decades gone since Palestinians signed their first interim deal with Israel, he has ruled out any new negotiations that do not solemnize Palestinian statehood.

Netanyahu's spokesman Mark Regev noted that Lieberman, in the Channel Two interview, had said he was expressing his own opinion.

Asked how Netanyahu saw peace prospects for an accord with the Palestinians, Regev referred to a speech on Tuesday in which the conservative prime minister said that Israel, while addressing threats by its enemies, "must also pursue secure, stable and realistic peace with our neighbors".

Netanyahu has previously spoken in favor of a Palestinian state, though he has been cagey on its borders and whether he would be prepared to dismantle Israeli settlements.

Lieberman's role in the next coalition government is unclear as he faces trial for corruption. If convicted, he could be barred from the cabinet. Lieberman denies wrongdoing and has said he would like to regain the foreign portfolio, which he surrendered after his indictment was announced last year.

(Writing by Dan Williams; Editing by Stephen Powell)

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Stocks end higher for sixth straight week, tech leads

NEW YORK (Reuters) - The Nasdaq composite stock index closed at a 12-year high and the S&P 500 index at a five-year high, boosted by gains in technology shares and stronger overseas trade figures.

The S&P 500 also posted a sixth straight week of gains for the first time since August.

The technology sector led the day's gains, with the S&P 500 technology index <.splrct> up 1.0 percent. Gains in professional network platform LinkedIn Corp and AOL Inc after they reported quarterly results helped the sector.

Shares of LinkedIn jumped 21.3 percent to $150.48 after the social networking site announced strong quarterly profits and gave a bullish forecast for the year.

AOL Inc shares rose 7.4 percent to $33.72 after the online company reported higher quarterly profit, boosted by a 13 percent rise in advertising sales.

Data showed Chinese exports grew more than expected, a positive sign for the global economy. The U.S. trade deficit narrowed in December, suggesting the U.S. economy likely grew in the fourth quarter instead of contracting slightly as originally reported by the U.S. government.

"That may have sent a ray of optimism," said Fred Dickson, chief market strategist at D.A. Davidson & Co in Lake Oswego, Oregon.

Trading volume on Friday was below average for the week as a blizzard swept into the northeastern United States.

The U.S. stock market has posted strong gains since the start of the year, with the S&P 500 up 6.4 percent since December 31. The advance has slowed in recent days, with fourth-quarter earnings winding down and few incentives to continue the rally on the horizon.

"I think we're in the middle of a trading range and I'd put plus or minus 5.0 percent around it. Fundamental factors are best described as neutral," Dickson said.

The Dow Jones industrial average <.dji> ended up 48.92 points, or 0.35 percent, at 13,992.97. The Standard & Poor's 500 Index <.spx> was up 8.54 points, or 0.57 percent, at 1,517.93. The Nasdaq Composite Index <.ixic> was up 28.74 points, or 0.91 percent, at 3,193.87, its highest closing level since November 2000.

For the week, the Dow was down 0.1 percent, the S&P 500 was up 0.3 percent and the Nasdaq up 0.5 percent.

Shares of Dell closed at $13.63, up 0.7 percent, after briefly trading above a buyout offering price of $13.65 during the session.

Dell's largest independent shareholder, Southeastern Asset Management, said it plans to oppose the buyout of the personal computer maker, setting up a battle for founder Michael Dell.

Signs of economic strength overseas buoyed sentiment on Wall Street. Chinese exports grew more than expected in January, while imports climbed 28.8 percent, highlighting robust domestic demand. German data showed a 2012 surplus that was the nation's second highest in more than 60 years, an indication of the underlying strength of Europe's biggest economy.

Separately, U.S. economic data showed the trade deficit shrank in December to $38.5 billion, its narrowest in nearly three years, indicating the economy did much better in the fourth quarter than initially estimated.

Earnings have mostly come in stronger than expected since the start of the reporting period. Fourth-quarter earnings for S&P 500 companies now are estimated up 5.2 percent versus a year ago, according to Thomson Reuters data. That contrasts with a 1.9 percent growth forecast at the start of the earnings season.

Molina Healthcare Inc surged 10.4 percent to $31.88 as the biggest boost to the index after posting fourth-quarter earnings.

The CBOE Volatility index <.vix>, Wall Street's so-called fear gauge, was down 3.6 percent at 13.02. The gauge, a key measure of market expectations of short-term volatility, generally moves inversely to the S&P 500.

"I'm watching the 14 level closely" on the CBOE Volatility index, said Bryan Sapp, senior trading analyst at Schaeffer's Investment Research. "The break below it at the beginning of the year signaled the sharp rally in January, and a rally back above it could be a sign to exercise some caution."

Volume was roughly 5.6 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.

Advancers outpaced decliners on the NYSE by nearly 2 to 1 and on the Nasdaq by almost 5 to 3.

(Additional reporting by Angela Moon; Editing by Bernadette Baum, Nick Zieminski, Kenneth Barry and Andrew Hay)

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Bryant leads Lakers over Bobcats 100-93

CHARLOTTE, N.C. (AP) — Even though Kobe Bryant and the Lakers were able to escape with a 100-93 win Friday night over the Charlotte Bobcats, the Los Angeles star was left feeling "irritated" after the game.

Irritated at his team's shot selection.

Irritated at his team's selfishness.

And especially irritated that the Lakers needed to overcome a 20-point deficit to beat the NBA's worst team.

"We have to play the right way," Bryant said. "When we have shots available, we take them. If we don't, move the ball on. It can't be about individual touches. It can't be about that."

Still, the Lakers won.

Bryant shrugged off a scoreless first half — he attempted only two shots — to finish with 20 points, eight assists and seven rebounds and the Lakers improved to 4-2 on their road trip heading into Sunday's game in Miami against the Heat.

Bryant didn't come out for warm-ups to start the second half.

But he was there to provide the spark the lackluster Lakers needed in the third quarter. He scored 14 of his points in the final period, including a driving layup with 40 seconds left to push the lead to five and help seal the win.

"In the second half I got in position where I could catch it and turn and shoot it a little bit," Bryant said. "They were reluctant to double team because we started knocking down some shots. I think that makes the game a lot easier."

Steve Nash and Earl Clark each had 17 points and Dwight Howard had 12 points, all in the first half, and 11 rebounds for the Lakers (24-27).

Howard played his second straight game despite nursing an injured right shoulder.

"Continuity," Howard said when asked of the Lakers offensive woes. "We have to do a better job of spreading everything out and moving and getting everybody involved. When we do that, we are pretty good."

Byron Mullens and Gerald Henderson each had 20 points for the Bobcats, who have lost six straight.

Charlotte led 71-51 in the third quarter, but the Lakers stormed back behind a 9-0 run. They cut the lead to one on a driving layup by Bryant with 6:06 left in the game and Antawn Jamison gave the Lakers their first lead with 4:46 remaining on a left-handed finger roll in the lane.

The Lakers took the lead for good at 92-91 when Jodie Meeks made a 3-pointer with 3:02 left in the game.

Lakers coach Mike D'Antoni wasn't pleased with the overall effort, but liked that his team bounced back after a 116-95 loss to the Boston Celtics the night before.

"We just got to be able to put our earplugs in, or mufflers on, or blinders on," D'Antoni said. "It's like the Kentucky Derby with horses, just get those blinders on and just get out there and run.

"We have so much stuff going on out here that every little thing is blown to bits and whether it is right or wrong or blown out of proportion it is. But, it affects us. It is a distraction. It saps energy. We got to be able to just close that out somehow."

The Lakers have been unpredictable this season, particularly on the road where they were 8-17 coming into this game.

Before Friday night's game against Charlotte, D'Antoni was asked if the Bobcats were a dangerous opponent for his team.

"We're playing, aren't we? (Then) there's a danger," D'Antoni said with a laugh. "If they play the national anthem, we're in danger."

He was right.

The Lakers started slow, looking out of sync just as they have for a good portion of the season as pick and rolls turned into turnovers and layups on the other end.

Nash had four early turnovers and Howard threw a pass across court that hit the side of the backboard.

The Lakers turned the ball over five times in the game's first eight minutes and fell behind 20-9.

Bryant missed his only two shots in the first half, his slowest start since March 31, 2012, when he went three quarters without scoring a point before beating the New Orleans Hornets on a game-winning shot.

The game was similar to earlier this season when the Bobcats led by 18 in Los Angeles only to squander the lead.

"We had them down pretty much the whole game," Bobcats guard Kemba Walker said. "You know, they made a really good run. Kobe made a lot of good plays, made the right passes and guys just made shots."

NOTES: Bobcats rookie Michael Kidd-Gilchrist returned to action Friday after missing two games with a concussion. ... At halftime Bryant had five rebounds, two assists and no points. ... The Bobcats had been one of three teams with a .500 or better record all-time against the Lakers, but fell to 8-9 with Friday night's loss.

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How Obama can end Congo conflict

Conflict in Congo

Conflict in Congo

Conflict in Congo

Conflict in Congo

Conflict in Congo

STORY HIGHLIGHTS

• President Obama can help end the Congo conflict for good, says Vava Tampa


• Obama has asked Rwanda to end all support to armed groups in the Congo


• FDLR militia gang is a threat to stability and must leave Congo


• Obama must push for change in Congolese government, argues Tampa

Editor's note: Vava Tampa is the founder of Save the Congo, a London-based campaign to tackle "the impunity, insecurity, institutional failure and the international trade of minerals funding the wars in Democratic Republic of the Congo." Follow Vava Tampa on twitter: @VavaTampa

(CNN) -- Now that President Obama has taken a public stand on the warlords and militia gangs tyrannizing DR Congo, there is a sense that the next chapter in the human tragedy that has been raging there over the past decade and half is about to be written -- or so we can hope.

In the DRC -- Africa's largest sub-Saharan country -- invasions, proxy wars and humanitarian crises have senselessly shut down millions of lives, displaced millions more from their homes and left countless women and young girls brutally raped with the world barely raising an eyebrow.

The latest murderous attempt by the M23 militia gang to besiege Goma, the strategic regional capital of Congo's eastern province of North Kivu, seems to have backfired.

Vava Tampa

The United Nations says Rwanda has helped to create and militarily supported M23. Although Rwandan President Paul Kagame denies backing M23, the accusation has taken off some of the international gloss he had long enjoyed in the West, and precipitated cuts and suspension of aid money that goes directly to the Kagame regime by the Netherlands, Sweden, Germany, Britain and the European Union.

The United States, which gives no money directly to the Rwandan government, suspended its military aid. In a baffling expression of a refinement of the U.S. position, President Obama made a rare telephone call to Kagame to emphasize "the importance of permanently ending all support to armed groups in the DRC." That set a firm red line on the situation in that region, the first one by President Obama since becoming president in 2008.

Watch video: Kagame on Congo

This was certainly right and good. Kagame is no fool; the diplomatic but emphatic content of that telephone call, monitored by White House's National Security staff and published thereafter for public consumption, speaks volumes. He clearly understood the implicit threat. But it was not good enough.

Left unsaid is that withholding aid money that goes directly to the Kagame regime has not changed many realities on the ground -- a painful reminder of the limits of what previous half-hearted, ambivalent international attempts to halt the crisis in that country had achieved.

However, the situation is not hopeless. President Obama can help to halt the wars engulfing the Congo. It is both economically and politically affordable.

Here is my suggestion -- a three-point road map, if you like, for President Obama, should he choose to put the weight of the United States squarely on the side of the Congolese and engage much more robustly to help end the world's bloodiest war and human tragedy.

Read more: Why the world is ignoring Congo war

1. Changes in Kinshasa

If we are to be blunt with ourselves, Congo's major problem today -- the chief reason that country remains on its knees -- is its president Joseph Kabila. Paul Kagame is just a symptom, at least in theory.

The crisis of leadership in the capital Kinshasa, the disastrous blend of lack of political legitimacy and moral authority, mixed with poor governance and vision deficiency, then compounded with dilapidated state institutions, has become the common denominator to the ills and wrongs that continues to overwhelm the Congo.

In other words, peace will never be secured in Congo, if the moribund status quo is still strutting around Kinshasa.

Obama's minimum objective in regard to ending the wars and human tragedy engulfing the Congo should be to push for changes in Kinshasa. He must make this one of the "10 Commandments" of the Obama Doctrine.

Circumstances demand it to re-energize Congo's chance of success and to enable the renaissance of a "New Africa." And given the effects of Congo's mounting death toll and the speed at which HIV/AIDS is spreading because of the use of rape as a weapon of war, the sooner the better.

2. Keep Kagame in the naughty corner

The wars and human tragedy engulfing the Congo have many fathers and many layers. Rwanda, and to some extent Uganda -- run by Africa's two dearest autocratic but staunchly pro-American regimes -- are, as they have been many times in the past, despite their denials, continuing to provide support to warlords and militia gangs terrorizing the Congolese people.

This is not an apocryphal claim, it's an open secret in Kinshasa, Kampala and Kigali as much as it is in Washington or White Hall, and as real as Charles Taylor's role in Sierra Leone or Iran's support to Hezbollah.

If President Obama is remotely serious about saving lives in Congo, then fracturing Rwanda's ability to directly or indirectly harbor warlords ... is critical.
Vava Tampa, Save the Congo

Indeed, reporters across Congo and across the region would testify to this. Kigali has been, one can safely argue, the sole shareholder in the M23 militia gang -- and its elder sisters CNDP and RCD-Goma.

It cannot wash its hands in Pontius Pilate fashion of either the ICC-wanted M23 warlord Bosco Ntaganda, also known as The Terminator, or Laurent Nkunda, who is wanted by the Congolese government for war crimes and is under house arrest in Kigali.

Read more: Prosecutor seeks new Congo war crimes warrants

If President Obama is remotely serious about saving lives in Congo, then fracturing Rwanda's ability to directly or indirectly harbor warlords, support militia gangs, militarize or ethnicize the wars in Congo for control of Congo's easily appropriable but highly valuable natural resources is critical, however politically disgruntling it may be to some in the State Department.

It would reduce the scale, scope and intensity of the killing, raping and uprooting of the Congolese, it would crush Kinshasa's ability to use external support to warlords and militia gangs as an alibi for a lack of progress and, above all, decrease the growing unease of the Congolese towards Rwanda over the crimes of FDLR and the role played by their government in Congo.

3. FDLR

The continued existence in Congo of FDLR, a Rwandan militia gang made up largely of Hutus -- whose leadership took part in the 1994 genocide of Tutsi -- remains one of the most persistent and serious threats to stability in Congo and the region.

Addressing this crisis is of significant importance from both a political and humanitarian viewpoint.

Though there are no definitive statistics on the exact numbers of FDLR fighters, the good news is that experts tell us that the vast majority of its rank and file are in their 20s and early 30s, which means they were too young to have taken part in the genocide in 1994.

The United States, together with the U.N., the EU and African Union, should appoint a special envoy for the African Great Lakes region to midwife a conducive political arrangement in Kigali that could see them returning home -- and see their leaders and fundraisers in Europe arrested.

The opinions expressed in this commentary are solely those of Vava Tampa.

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Blizzard wallops Northeast, thousands without power

A blizzard slammed into the northeastern United States on Friday, snarling traffic, disrupting thousands of flights and prompting five governors to declare states of emergency in the face of a fearsome snowstorm.

Forecasters warned that about 2 feet of snow would blanket most of the Boston area with some spots getting as much as 30 inches. New York was due to get about a foot in some areas, while heavy snowfall was also expected in Connecticut and Maine.

Winds were blowing at 35 to 40 miles per hour (56 to 64 km per hour) by Friday afternoon and forecasters expected gusts up to 60 mph as the evening wore on.

Driving conditions were treacherous. Massachusetts Governor Deval Patrick took the rare step of announcing a ban on most car travel starting Friday afternoon, while Connecticut Governor Dannel Malloy closed the state's highways to all but emergency vehicles.

As the evening wore on and the snow piled up, mass transit was also affected.

In New York City, transit officials said "suspensions in service remain a strong possibility," and Metro-North Railroad suspended some of its commuter rail service at 10 p.m.

The Long Island Rail Road partially suspended service on its Montauk branch.

The blizzard left about 10,000 customers along the East Coast without power, and some 3,500 flights were canceled.

"We're seeing heavier snow overspread the region from south to north," said Lance Franck, a meteorologist with the National Weather Service in Taunton, Massachusetts, outside Boston. "As the snow picks up in intensity, we're expecting it to fall at a rate of upwards of two to three inches per hour."

Early Friday evening, officials warned that the storm was just ramping up to full strength, and that heavy snow and high winds would continue through midday on Saturday. The governors of Massachusetts, Rhode Island, Connecticut, New York and Maine declared states of emergency and urged people to stay indoors.

In many cases, authorities ordered non-essential government workers to stay home, urged private employers to do the same, told people to prepare for power outages and encouraged them to check on elderly or disabled neighbors.

People appeared to take the warnings seriously. Traffic on streets and ridership on public transportation was significantly lighter than usual on Friday.

"This is a very large and powerful storm, however we are encouraged by the numbers of people who stayed home today," Boston Mayor Thomas Menino told reporters.

In New York City, Mayor Michael Bloomberg suggested the storm created an opportunity to relax and catch up on sleep.

Even so, the storm caused a few accidents, including a 19-vehicle pile-up outside Portland, Maine, that sent one person to the hospital.

In addition to Friday's cancellations, more than 1,200 flights scheduled for Saturday were scratched, according to the website FlightAware.com.

The storm also posed a risk of flooding at high tide to areas still recovering from Superstorm Sandy last October.

"Many of the same communities that were inundated by Hurricane Sandy's tidal surge just about 100 days ago are likely to see some moderate coastal flooding this evening," said Bloomberg.

Brick Township in New Jersey had crews out building up sand dunes and berms ahead of a forecast storm surge, said Mayor Stephen Acropolis.

Travel became more difficult as the day progressed.

Amtrak suspended railroad service between New York, Boston and points north on Friday afternoon.

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Japan may release data proving Chinese radar incident: media

TOKYO (Reuters) - Japan may release data it says will prove a Chinese naval vessel directed its fire control radar at a Japanese destroyer near disputed islands in the East China Sea, local media reported.

Japan has said a Chinese frigate on January 30 locked its targeting radar on a Japanese destroyer - a step that usually precedes the firing of weapons - but China insists that its vessel used only ordinary surveillance radar.

The incident has added to tensions between the two nations over the disputed islands.

Japan will consider how much normally classified data it can release, the media reports said, citing comments by Japan Defence Minister Itsunori Onodera on local television.

"The government is considering the extent of what can be disclosed," Kyodo news agency quoted Onodera as saying.

China has accused Japan of smearing its name with the accusations, and on Saturday, the official Xinhua news agency continued the war of words.

"By spreading false accusations and posing as a poor victim, Japan had intended to tarnish China's image so as to gain sympathy and support, but a lie does not help," it said in an English language commentary.

"China has been exercising maximum restraint and stayed committed to solving the dispute through dialogue and consultation."

Japan and China have been involved in a series of incidents in recent months in the East China Sea where Chinese and Japanese naval vessels regularly shadow each others movements.

Both countries claim a small clusters of islands, known as Diaoyu in China and Senkaku in Japan, believed to be rich in oil and gas. Controlled by Japan, possession of the uninhabited outcrops and the sea surrounding them would provide China with easier access to the Pacific.

Hopes had been rising for an easing in tensions, including a possible summit between Japanese Prime Minister Shinzo Abe and Chinese Communist Party chief Xi Jinping. But the radar issue has seen China and Japan engage in a fresh round of invective.

China's Defence Ministry on Thursday said Japan's complaints did not "match the facts". The Chinese ship's radar, it said, had maintained regular alerting and surveillance operations and the ship "did not use fire control radar".

Japan's position against China has hardened since Abe led his conservative party to a landslide election victory in December, promising to beef up the military and stand tough in territorial disputes.

The commander of U.S. forces in the Asia-Pacific said the squabble between Japan and China underlined the need for rules to prevent such incidents turning into serious conflict.

China also has ongoing territorial disputes with other Asian nations including Vietnam and the Philippines over islands in the South China Sea.

(Reporting by Tim Kelly; Additional reporting by Ben Blanchard in BEIJING; Editing by Michael Perry)

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Oil, copper, Asian shares gain on solid China trade data

TOKYO (Reuters) - Oil, copper and Asian shares rose on Friday after China's strong trade data set the scene for economic recovery, although investors opted to book profits before next week's Chinese new year holidays, limiting gains.

European markets are seen climbing, with financial spreadbetters predicting London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> would open up around 0.5 percent. A 0.2 percent drop in U.S. stock futures pointed to a steady Wall Street start. <.l><.eu><.n/>

The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> added 0.3 percent, wiping earlier losses as bearish sentiment was carried over overnight after European Central Bank President Mario Draghi noted risks still facing the euro zone economy.

The pan-Asian index rose to a 18-month high on Monday. After starting 2013 with a 2.4 percent weekly gain, the index has consolidated in a range between a 0.8 percent rise and a 0.8 percent fall, and looked set for a weekly loss of 0.6 percent.

China said its exports grew 25.0 percent in January from a year ago, the strongest showing since April 2011 and well ahead of market expectations for a 17 percent rise, while imports also beat forecasts, surging 28.8 percent on the year.

"China's economic conditions are improving and the trade data confirms the continuation of a recovery trend. Not just the trade data but retail, production and investment flows clearly show that the economy bottomed out in the third quarter last year," said Hirokazu Yuihama, a senior strategist at Daiwa Securities in Tokyo.

Australian shares rallied 0.7 percent to 34-month highs, led by financial and mining stocks. South Korean shares <.ks11> jumped 1 percent, on track to reverse six losing sessions as investors bought up battered shares after recent declines.

Japan's Nikkei stock average <.n225> snapped a 12-week winning streak to close down 1.8 percent as investors took profits from the index's surge to its highest level since October 2008 on Wednesday. Japanese markets will be closed on Monday for a public holiday. <.t/>

"Asian markets are undergoing a pre-holiday adjustment, keeping prices top-heavy, with many opting to book profits. Prices have gained sharply over the past months, so a correction is healthy. But the upward trend in Asian equities markets remains intact," Daiwa's Yuihama said.

Chinese markets are closed next week for the Lunar New Year holiday, while Hong Kong will resume trading on Thursday.

EURO STEADIES

The euro steadied at $1.3397, after slumping to a two-week low of $1.33705 on Thursday as investors took Draghi's comments as signaling concerns about the euro and Europe's growth outlook. The euro scaled a 14-1/2-month high of $1.3711 last week.

Draghi said the ECB will monitor the economic impact of a strengthening euro, feeding expectations the currency's climb could open the door to an interest rate cut. But he also said the euro's appreciation suggested confidence in the currency was returning.

Spain has already secured more than 18 percent of its full-year medium- and long-term funding target, thanks to strong investor demand as worries about Madrid's financing ability eased.

"Currencies are increasingly becoming part of the policy debate...In the case of the EUR, we believe that the bullish 'overshooting' trend will remain intact as ECB policy continues to promote an asset market friendly environment," Morgan Stanley said in a note.

It added that anticipation of the Bank of Japan's expected bolder easing steps is set to keep the weak yen trend going, supporting global risk appetite.

The dollar fell 0.4 percent to 93.25 yen but not far from 94.075 yen, its highest since May 2010 on Wednesday. The euro eased 0.4 percent to 124.93 yen, after touching its strongest since April 2010 of 127.71 on Wednesday.

Friday's data showing Japan logged a current account deficit for a second straight month in December for its smallest annual surplus on record - evidence of deteriorating trade balances, which support the case for yen selling.

"Japan will remain a nation of current account surpluses but the surplus will not be as high as it used to be," said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo.

Upbeat economic reports from China, the world's top consumer of raw materials, lifted industrial commodities on a more robust demand outlook.

London copper rose for the first time in four sessions, up 0.6 percent to $8,245 a metric ton (1.1023 tons).

Brent futures rose towards $118 per barrel, heading for a fourth weekly gain and U.S. crude futures rose 0.3 percent to $96.10.

"The (China) numbers are stronger than expected, which is an encouraging sign," said Ric Spooner, chief market analyst at CMC Markets in Sydney. "(But) we will need to wait until March to start getting a better sense of the medium-term trend on China."

Spot gold regained its footing and traded up 0.1 percent at $1,671.80 an ounce after falling on Thursday as the euro weakened. Industrial metals, platinum and palladium, retreated from 17-month highs.

(Additional reporting by Ramya Venugopal in Singapore; Editing by Eric Meijer)

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Mahan and Knox share Pebble Beach lead

(Reuters) - Hunter Mahan, who has long relished playing golf on the picturesque Monterey Peninsula, birdied five of his first seven holes on the way to a share of the first-round lead in the Pebble Beach National Pro-Am on Thursday.

The 30-year-old American fired a sparkling six-under-par 66 in mainly sunny conditions on the hosting Pebble Beach Golf Links, one of three venues being used for this week's PGA Tour event.

In pursuit of his sixth title on the U.S. circuit, Mahan mixed seven birdies with a lone bogey to end the day level with little-known Briton Russell Knox, who carded a six-under 64 on the Shore Course at Monterey Peninsula Country Club.

South Korean Noh Seung-yul and Japan's Ryuji Imada were among a group of six players knotted at five under while defending champion Phil Mickelson opened with a one-under 69 at Monterey Peninsula.

Mahan, who finished second behind compatriot D.A. Points at the 2011 Pebble Beach National Pro-Am, was delighted with his start in near-perfect conditions.

"I hit a lot of good putts today and they were just kind of right on the edge or lipped out today," the Californian told Golf Channel. "I made a lot of good swings and had a lot of good opportunities.

"I am happy to get in with what I did. The weather is so beautiful and the course is very doable right now. It's nice to shoot a round when it's there for you."

Asked how he would tackle the Monterey Peninsula layout in Friday's second round, Mahan replied: "That's the challenge, just to adjust to the greens and maybe the way the courses are actually playing compared to here or to Monterey or Spyglass.

"It's a challenge but that's why we are pros. The great ones adjust and they go on to win this tournament."

BUOYANT MOOD

Former world number one Lee Westwood, making his first PGA Tour start of the year, was also in a buoyant mood after firing a 68 on the hosting Pebble Beach Golf Links in the company of his father.

"There's a long way to go but I'm off to a nice start, a 68, and I don't think that does you any damage on any of these golf courses," the 39-year-old Englishman said after carding five birdies and one bogey.

Asked how much he enjoyed playing with his father on one of the game's most iconic layouts in the pro-am celebrity event, Westwood replied: "It's the biggest thrill. This is going to be one of the great weeks of the year for me."

Westwood's father, a former mathematics teacher who introduced his son to the game shortly before he turned 13, applauded his partner's form in the opening round.

"He played pretty well today," Westwood senior said before adding with a grin: "You can see where he got his swing from, though, when you look at me. He copies everything I do."

American left-hander Mickelson, who clinched his 41st PGA Tour title by four shots at last week's Phoenix Open, was disappointed with his putting after finishing with two bogeys in his last five holes.

"It's a lot more challenging to make a lot of putts up here than it is in Phoenix," the world number 10 said after totaling 30 putts. "Hopefully I'll get a good run tomorrow and try to shoot myself up into contention.

"One of the things I've learned over the years here is you need to be patient," added the four-times Pebble Beach National Pro-Am champion. "If I play just a good, solid 18 holes, I should hopefully be able to shoot something in the mid-60s."

Triple major winner Padraig Harrington of Ireland opened with a level-par 72 at Spyglass Hill while U.S. Open champion Webb Simpson returned a one-over 71 at Monterey Peninsula.

Twice Pebble Beach National Pro-Am champion Dustin Johnson made a poor start with a three-over 73 at Monterey Peninsula and former world number one David Duval fared even worse at Spyglass Hill, battling to a seven-over 79.

(Reporting by Mark Lamport-Stokes in Los Angeles; Editing by Frank Pingue/Ian Ransom)

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Facts? Shmacts. It's only a movie

STORY HIGHLIGHTS

• Gene Seymour: "Lincoln" error on emancipation vote shines light on how films tell history


• He says Oscar chances for "Argo," "Zero Dark Thirty" may be hurt after facts questioned


• He says films have long gotten history wrong but are useful in showing society's perceptions


• Seymour: It's art, not history, sometimes a vision, something we wish had been or could be

Editor's note: Gene Seymour is a film critic who has written about music, movies and culture for The New York Times, Newsday, Entertainment Weekly and The Washington Post.

(CNN) -- Everyone's a critic; I get that. But does everyone have to be a historian, too?

What audiences perceive as their inalienable right to challenge the accuracy and authenticity of movies seems to get much more exercised before the Academy Awards than at any other time of the year.

The latest challenge came Tuesday from Rep. Joe Courtney of Connecticut, who said Steven Spielberg's "Lincoln" misrepresented the way his predecessors in the 1865 House of Representatives voted on the 13th Amendment banning slavery. Courtney looked it up online and found in his research that all four Connecticut representatives voted for the amendment -- the movie shows two voting against. So in a letter to Spielberg's DreamWorks production office in Los Angeles, he asked DreamWorks for some form of correction. (DreamWorks hasn't been heard from yet.)

Gene Seymour

The film, considered a favorite for a best picture Oscar, places the back-and-forth struggle over the amendment in the forefront of its depiction of the 16th president, played by Daniel Day-Lewis. Courtney, unlike most others who have complained about big-time Oscar contenders, isn't out to ruin anybody's chances. He says he likes everything else about the movie. He merely wants props restored to his home state. And he seems to have a good case.

But you can bet your annual subscription to US Weekly magazine that the chatterboxes who gossip about and/or handicap the Academy Awards are going to try using his complaint as further indication of "Lincoln's" slipping stature as a best picture shoo-in. Some of these pundits claim "Argo" is charging hard from behind since its unexpected wins at both the Golden Globes and Screen Actors Guild Awards.

And yet "Argo" has truthiness issues of its own. Director-star Ben Affleck even admitted before the movie's release last fall that his movie about the 1979 CIA rescue of State Department employees from Iran stretched certain details for dramatic effect. (Spoiler alert!) There was, for instance, no last-minute car chase on a Tehran tarmac as Americans tried to escape on a plane, and their check-in at the terminal wasn't in real life nearly the white-knuckle sequence of events you see in the film.

Others have said the movie misrepresents the Iranian people as completely unified in their support of the takeover of the U.S. Embassy. "Thirty-three million Iranians ... did not commit acts of murder and terrorism," Iranian commentator Kambiz Atabai wrote on The Daily Beast. "Thirty-three million Iranians did not chant 'Death to America!' or take Americans hostage."

But neither "Lincoln" nor "Argo" has reaped the whirlwind of criticism of Kathryn Bigelow's "Zero Dark Thirty" for its depiction of events leading up to the 2011 killing of Osama bin Laden. Even before its limited release in December, the movie couldn't be discussed without referring to those accusing the movie of glorifying waterboarding of suspected terrorists or, at best, misleading audiences into believing that such so-called "enhanced interrogation" played a key role in guiding the United States to bin Laden.

Whatever critics or defenders say, the dispute alone is enough to make academy voters skittish about rewarding something that causes so much trouble.

You have to wonder: What is the big deal?

None of these films are documentaries and thus do not have the same obligations to fact. Yet one could argue that taking too many liberties with real life (whatever that means) could distort for generations the true story; that, indeed, what is enhanced for dramatic purposes becomes what everyone believes is what actually happened.

It's not so cut and dried. Consider D.W. Griffith's 1915 "The Birth of a Nation," regarded as the first great American film epic, whose glorification of the Ku Klux Klan makes contemporary audiences uneasy at best, infuriated at worst. Despite protests by the NAACP and other civil rights organizations, audiences generally agreed with President Woodrow Wilson's purported assessment of the movie: "It's like history written with lightning."

But society can change perception of art over time to the point of neutralizing, even transfiguring its original intent. No one now mistakes Griffith's movie as anything close to historic fact, but it could still be seen as a representation of a racist viewpoint that once held sway over much of America

Then there is John Ford, the great American director of such classic westerns as "Stagecoach" (1939), "The Searchers" (1956) and "The Man Who Shot Liberty Valance" (1962). It was in the latter movie that Ford's aesthetic credo was put forth by a minor character, a journalist who discovers that the career-making triumph of a U.S. senator over an outlaw didn't happen as originally believed. The journalist chooses to keep things status quo. "This is the West, sir," he explains. "When legend becomes fact, print the legend." He might have added: "Because it makes a better story."

Or consider "My Darling Clementine," Ford's 1946 version of the Wyatt Earp saga. As the movie opens, the Earp brothers are herding cattle to Tombstone, Arizona, in 1882 when the youngest brother James is shot dead (in the back, of course) by the rustling Clanton family.

Three things, right off the bat are wrong: James was the eldest of the Earps, not the youngest, the Earp brothers never had any cattle either heading toward or ensconced within Tombstone's city limits and, though James' death is depicted as the spark that eventually led to the Earps' confrontation with the Clantons at the OK Corral, that famous gunfight actually occurred in 1881 -- if you're scoring, that's one year earlier. And the inaccuracies only begin there.

And yet the movie endures as one of Ford's best even after four movies about the same legend have been made, each claiming to be more faithful to historic fact than "Clementine." But "My Darling Clementine," a dream about a past that didn't exist, endures in collective memory. It may not be factual, but it's true to something; a vision, a state of mind, an aspiration to something we wish had been, or could be.

The most recent film about the legend, Lawrence Kasdan's "Wyatt Earp" (1994), is so faithful that you can barely remember anything about it.

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The opinions expressed in this commentary are solely those of Gene Seymour.

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Chicago scandal leads to shake-up at red-light camera firm

The chairman of the Australian company behind Chicago's red-light program resigned this week and trading in the company's stock was suspended amid an intensifying investigation into allegations of corruption in its Chicago contract.

Redflex Holdings Ltd. announced the extraordinary actions just days after board members were briefed by an outside legal team hired to examine ties between the company's U.S. subsidiary and the city official who oversaw its contract, a relationship first disclosed in October by the Tribune.

In a brief statement Thursday to the newspaper, the company also revealed for the first time that it is sharing information with law enforcement authorities.

The internal probe found that company executives systematically courted former city transportation official John Bills with thousands of dollars in free trips to the Super Bowl and other sporting events, sources familiar with the investigation told the Tribune. The company also hid the extent of the improper relationship from City Hall after the newspaper's reporting last year forced Redflex to partially reveal its ties to Bills, sources said.

The internal probe and a parallel investigation by city Inspector General Joseph Ferguson are also raising more questions about the company's hiring of a longtime Bills friend who received more than $570,000 in company commissions as a customer service representative in Chicago, the sources said.

Bills did not return calls, but has adamantly denied any wrongdoing. "I would never have intentionally accepted a dime from Redflex, I wouldn't do that," he told the Tribune in October.

The latest developments run counter to the company's previous contentions that a whistle-blower concocted widespread accusations of internal wrongdoing and that a single company executive had mistakenly violated procedures by paying a one-time hotel tab for Bills. The reversal was acknowledged in a statement to the newspaper Thursday from the Australian company's CEO, who took over in September.

"Although the investigation is not over, we learned that some Redflex employees did not meet our own code of conduct and the standards that the people of the city of Chicago deserve," said Robert DeVincenzi, CEO of Redflex Holdings, the parent company of Phoenix-based Redflex Traffic Systems Inc.

"We are sharing information with law enforcement authorities, will take corrective action and I will do everything in my power to regain the trust of the Chicago community," DeVincenzi said.

Until the allegations were published by the Tribune, Redflex was positioned as a leading contender for Mayor Rahm Emanuel's new program to sprinkle the city with automatic cameras to tag speeders in school and park "safety zones." Emanuel's administration accused the company of covering up the wrongdoing allegations and disqualified it from bidding on the speed camera contract. Now the company faces the potential loss of its long-standing red-light program in Chicago, which has generated about $100 million for the company and more than $300 million in ticket revenue for the city.

The internal allegations were first made by a former Redflex vice president who wrote of the company's close relationship to Bills in a five-page internal memo emailed in 2010 to the Australian board of directors and obtained by the Tribune. In addition to making allegations about commissions to Bills' friend, the executive complained of "nonreported lavish hotel accommodations" for Bills.

The memo was addressed to Redflex Holdings board Chairman Max Findlay and sent overseas via email. Findlay and another board director, Ian Davis, were atop the list of recipients of the 2010 email.

The company announced both men's resignations in filings Wednesday to the Australian Securities Exchange, where Redflex is publicly traded.

Redflex did not indicate why the men were resigning. But on Thursday the company asked for and was granted by the exchange a four-day suspension of trading "until the earlier of 10 a.m. on Monday 11 February 2013 or an announcement being made."

"The trading halt relates to an update regarding financial aspects and the ongoing investigation in the USA," wrote company secretary Marilyn Stephens. The company did not elaborate on the trading action.

Redflex lawyers told the Tribune in October that a previous company-sponsored investigation by an outside law firm in 2010 found no wrongdoing but for a single hotel stay one top executive paid for Bills. Redflex Traffic Systems sent the executive vice president in question to "anti-bribery" training and revamped its expense accounting system, according to General Counsel Andrejs Bunkse.

Bunkse also said that neither Bills nor his friend the customer service representative were interviewed as part of the company's "exhaustive" three-week probe. He acknowledged the company's failure to notify the city of the allegations was a "lapse."

But in the wake of the newspaper's disclosure, the company announced it would pay for another outside review, this time by David Hoffman, a former city inspector general and federal prosecutor who is now a partner at the Chicago-based law firm Sidley Austin LLP.

Hoffman last week presented the audit committee of Redflex's board with a starkly different version of events, reporting that Bills received thousands of dollars in pricey hotel stays, including tickets to at least one Super Bowl and White Sox spring training trips over the course of many years, according to sources. Hoffman's report implicated company executives in the wrongdoing and recommended that some be fired, the sources said.

Bills, a self-acknowledged Sox fanatic, moonlighted as a clubhouse attendant for the team for several years, including the 2005 World Series season.

Many of the questions about Redflex's success in Chicago revolve around the friendship between Bills, who was a $138,000-per-year managing deputy commissioner for the city Transportation Department, and Marty O'Malley, who was retained by Redflex as its Chicago liaison at the outset of the red-light program in 2003.

Both Bills — a longtime precinct captain in the political organization of House Speaker Michael Madigan — and O'Malley have acknowledged their longtime friendship but said the relationship played no role in O'Malley's hiring and had no influence on Bills' management of the contract. "I have never taken a dime from Marty," Bills said in October. O'Malley did not return a telephone message Thursday.

After retiring from the city, Bills worked as a consultant for the Redflex-funded Traffic Safety Coalition. He also was appointed to an obscure Cook County board known as a haven for those with political clout but was forced to resign the $34,000 post after the Tribune's disclosures.

Redflex has been a multinational player in robotic traffic enforcement for two decades. Chicago, with more than 380 red-light cameras, has long been Redflex's largest contract in North America, but the company supplies more than 2,000 cameras nationwide, from Oregon to Florida.

Last year the company opened a new vein of potential business in the U.S. when it bought two companies involved in putting camera surveillance on school buses to ticket the drivers of cars who illegally pass the stopped vehicles.

The company listed its annual revenue as $146 million in 2012. The company's stock was trading at $2.10 per share in October but dropped to less than $1.50 on news of the Chicago allegations. It was trading at $1.67 on Wednesday before trading was halted. The Australian dollar is worth about $1.03 in U.S. currency.

dkidwell@tribune.com

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