Why U.S. needs tougher child labor rules




Cristina Traina says in his second term, Obama must address weaknesses in child farm labor standards




STORY HIGHLIGHTS


  • Cristina Traina: Obama should strengthen child farm labor standards

  • She says Labor Dept. rules allow kids to work long hours for little pay on commercial farms

  • She says Obama administration scrapped Labor Dept. chief's proposal for tightening rules

  • She says Labor Dept. must fix lax standards for kid labor on farmers; OSHA must enforce them




Editor's note: Cristina L.H. Traina is a Public Voices Op Ed fellow and professor at Northwestern University, where she is a scholar of social ethics.


(CNN) -- President Barack Obama should use the breathing space provided by the fiscal-cliff compromise to address some of the issues that he shelved during his last term. One of the most urgent is child farm labor. Perhaps the least protected, underpaid work force in American labor, children are often the go-to workers for farms looking to cut costs.


It's easy to see why. The Department of Labor permits farms to pay employees under 20 as little as $4.25 per hour. (By comparison, the federal minimum wage is $7.25.) And unlike their counterparts in retail and service, child farm laborers can legally work unlimited hours at any hour of day or night.


The numbers are hard to estimate, but between direct hiring, hiring through labor contractors, and off-the-books work beside parents or for cash, perhaps 400,000 children, some as young as 6, weed and harvest for commercial farms. A Human Rights Watch 2010 study shows that children laboring for hire on farms routinely work more than 10 hours per day.


As if this were not bad enough, few labor safety regulations apply. Children 14 and older can work long hours at all but the most dangerous farm jobs without their parents' consent, if they do not miss school. Children 12 and older can too, as long as their parents agree. Unlike teen retail and service workers, agricultural laborers 16 and older are permitted to operate hazardous machinery and to work even during school hours.


In addition, Human Rights Watch reports that child farm laborers are exposed to dangerous pesticides; have inadequate access to water and bathrooms; fall ill from heat stroke; suffer sexual harassment; experience repetitive-motion injuries; rarely receive protective equipment like gloves and boots; and usually earn less than the minimum wage. Sometimes they earn nothing.


Little is being done to guarantee their safety. In 2011 Secretary of Labor Hilda Solis proposed more stringent agricultural labor rules for children under 16, but Obama scrapped them just eight months later.


Adoption of the new rules would be no guarantee of enforcement, however. According to the 2010 Human Rights Watch report, the Department of Labor employees were spread so thin that, despite widespread reports of infractions they found only 36 child labor violations and two child hazardous order violations in agriculture nationwide.


This lack of oversight has dire, sometimes fatal, consequences. Last July, for instance, 15-year-old Curvin Kropf, an employee at a small family farm near Deer Grove, Illinois, died when he fell off the piece of heavy farm equipment he was operating, and it crushed him. According to the Bureau County Republican, he was the fifth child in fewer than two years to die at work on Sauk Valley farms.


If this year follows trends, Curvin will be only one of at least 100 children below the age of 18 killed on American farms, not to mention the 23,000 who will be injured badly enough to require hospital admission. According to Center for Disease Control and Prevention statistics, agriculture is one of the most dangerous industries. It is the most dangerous for children, accounting for about half of child worker deaths annually.


The United States has a long tradition of training children in the craft of farming on family farms. At least 500,000 children help to work their families' farms today.


Farm parents, their children, and the American Farm Bureau objected strenuously to the proposed new rules. Although children working on their parents' farms would specifically have been exempted from them, it was partly in response to worries about government interference in families and loss of opportunities for children to learn agricultural skills that the Obama administration shelved them.






Whatever you think of family farms, however, many child agricultural workers don't work for their parents or acquaintances. Despite exposure to all the hazards, these children never learn the craft of farming, nor do most of them have the legal right to the minimum wage. And until the economy stabilizes, the savings farms realize by hiring children makes it likely that even more of them will be subject to the dangers of farm work.


We have a responsibility for their safety. As one of the first acts of his new term, Obama should reopen the child agricultural labor proposal he shelved in spring of 2012. Surely, farm labor standards for children can be strengthened without killing off 4-H or Future Farmers of America.


Second, the Department of Labor must institute age, wage, hour and safety regulations that meet the standards set by retail and service industry rules. Children in agriculture should not be exposed to more risks, longer hours, and lower wages at younger ages than children in other jobs.


Finally, the Department of Labor and the Occupational Safety and Health Administration must allocate the funds necessary for meaningful enforcement of child labor violations. Unenforced rules won't protect the nearly million other children who work on farms.


Agriculture is a great American tradition. Let's make sure it's not one our children have to die for.


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The opinions expressed in this commentary are solely those of Cristina Traina.






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2 in custody after shooting death of teen

The mother and aunt of 17-year-old Tyrone Lawson, who was killed after watching a prep basketball game at Chicago State University on Jan. 16, 2013, talk about the incident.









Pamela Wright had dropped off her son at Chicago State University for a high school basketball game and was waiting for him to get back in touch when she got the awful news.

Her son Tyrone Lawson had been shot, apparently as he ran from a fight that had spilled out of the gymnasium Wednesday night.

"Instead of looking forward to prom, I'm looking for an insurance policy to bury him," Wright said this afternoon.


"It hurt so bad," said Lawson's grandmother, Barbara VanHughs, 70, clutching a photo of Lawson and crying. "My baby."

Police say an argument broke out while players were in a handshake line after the game between Simeon Career Academy and Morgan Park High School. The dispute spilled into the parking lot near 95th Street and King Drive and someone pulled out a gun and shot Lawson around 9:30 p.m., officials said.

Lawson died from multiple gunshot wounds in a homicide, the Cook County medical examiner’s office determined this afternoon. Lawson was shot twice in the back while running away, said Kurtistein Bailey, his 41-year-old aunt. Amid the chaos, someone knelt down and told Lawson to get up but he couldn't move, his aunt said.

"This was at the school where his mom thought he was safe," Bailey said. "His mother thought he was safe there. That's why she let him go."

Lawson had sent a text message to this mother earlier in the day, asking if he could go to the game. "Mom, can I go to the basketball game? It's only $10," Lawson had asked, according to VanHughs.


"I texted him back 'K,' and he said 'light' because he always said 'light' instead of 'right,'" said Wright, 52.

Before she dropped him off at the game, Wright gave him $17 -- $10 for the game and $7 to spend -- and told him to "be careful."








His mother waited for him to call back or text her, she said.

A fight broke out at the end of the game, and video shows security getting players off the court. It was unclear what the fight was about. Nothing outside ordinary bumps and physical contact appeared to have happened during the game between the two schools, which are located on Vincennes Avenue about 30 blocks apart.


Around 8:30 p.m., Wright wanted to check on her son, but her 53-year-old fiance, Gregory Young, assured her Lawson was "all right." About an hour later, Wright learned from a relative that Lawson had been "hit twice in the back" and died, she said.


University police issued a message to its officers, asking them to watch for a Jeep. It was pulled over east of the school and two people were taken into custody, officials said. Police said they found a gun inside the Jeep.

The Jeep's owner told the Tribune this afternoon that she was not aware of any gun in the car. "I was not there," the owner said. "I don't know what happened."


Wright said she and Young were planning on telling Lawson today that they were getting married next week. Now, the two are tying the knot Feb. 26, Lawson's birthday.

CPS spokeswoman Marielle Sainvilus said the district worked with the university and Chicago police to provide security at the game.

Sainvilus said there was a significant security presence both inside and outside the gym, and there had been screening to prevent anyone from carrying guns into the game. All fans were also searched.

The university released a statement Thursday morning saying it was "deeply saddened by the tragic shooting death."

“(Chicago Public Schools) periodically uses the university’s athletic facility to provide a neutral setting for student sporting events. This is the first such incident to occur on the campus of Chicago State University where CPS students have played many times over the last three years," the statement said.

"Additional security is provided by the university and all external partners during high school sporting events. Arrests have been made and university officials are awaiting the outcome of a full investigation to learn details about the shooting incident.”


Relatives said Lawson was an honor student at Morgan Park and hoped to land a ComEd apprenticeship after graduation. They remembered him as "high-spirited" and "loved by all," a popular student with friends on the basketball team.

Bailey said Lawson loved animals, and took care of snakes, an iguana and turtles over the years. His grandmother said he loved animals so much he gave up his bedroom for his 2-year-old dog, Midnight, and slept on a futon in another room.

VanHughs said she helped raise Lawson while his mother traveled for her job. Family members described the two as having a strong relationship.

"He was definitely a momma's boy," Bailey said. "They were very close and he was her only child."


CPS chief Barbara Byrd-Bennett ordered extra security personnel for the two high schools today. Crisis teams, including counselors, also have been deployed at Morgan Park.


CPS would not release any information about Lawson's education history or attendance at Chicago Public Schools.


Contributor Mike Helfgot and Tribune reporters Peter Nickeas, Rosemary Regina Sobol, Jeremy Gorner and Liam Ford contributed to this story.

chicagobreaking@tribune.com
Twitter: @chicagobreaking





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S&P 500 ends flat as bank profits temper growth concerns

NEW YORK (Reuters) - The S&P 500 ended nearly flat on Wednesday as solid earnings from two major banks and a bounceback in Apple shares offset concerns about a lower forecast for global growth in 2013.


Shares of Goldman Sachs hit their highest since May 2011 as earnings nearly tripled on increased revenue from dealmaking and lower compensation expenses. JPMorgan Chase said fourth-quarter net income jumped 53 percent and earnings for 2012 set a record.


JPMorgan shares rose 1 percent to $46.82, while Goldman climbed 4.1 percent to $141.09.


They were among the first big banks to report results and helped to lift estimates for S&P 500 corporate earnings slightly, to a 2.2 percent gain, Thomson Reuters data showed.


"Pretty solid numbers from both JPMorgan and Goldman Sachs are putting a lot of momentum behind the financials, with a lot more names to report this week. But I think that's helping to put a better bid to the market overall," said Michael James, senior trader at Wedbush Morgan in Los Angeles.


Apple rebounded after three days of losses, helping the Nasdaq outperform the S&P 500 and Dow. Apple rose 4.2 percent to $506.09. It closed below $500 on Tuesday for the first time since February.


"There could not have been more negativity around Apple going into today. So was it due for an oversold bounce on a trading basis? Absolutely," James said.


A slow economic recovery in developed nations is holding back the global economy, the World Bank said on Tuesday, as it sharply scaled back its forecast for world growth in 2013 to 2.4 percent from an earlier forecast of 3.0 percent.


The Dow Jones industrial average <.dji> was down 23.66 points, or 0.17 percent, at 13,511.23. The Standard & Poor's 500 Index <.spx> was up 0.29 points, or 0.02 percent, at 1,472.63. The Nasdaq Composite Index <.ixic> was up 6.77 points, or 0.22 percent, at 3,117.54.


The biggest drag on the Dow was Boeing , whose shares fell 3.4 percent to $74.34 on concerns about its new Dreamliner passenger jets. Japan's two leading airlines grounded their fleets of 787s after an emergency landing, adding to safety concerns triggered by a series of recent incidents.


After the bell, shares of eBay were trading up 0.7 at $53.28, reversing an initial decline following the release of its results. Also after the close, shares of CBS rose 8.3 percent to $41.10 after it said it will convert its Outdoor Americas division into a real estate investment trust. [ID:nL4N0AL98X]


Earlier in the day, U.S. economic data showed consumer prices were flat in December, pointing to muted inflation pressures that should give the Federal Reserve room to prop up the economy by staying on its ultra-easy monetary policy path.


Other data showed U.S. homebuilder confidence in the market for single family homes held steady near seven year highs in January, suggesting the outlook for the housing market remained upbeat.


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.


Decliners outpaced advancers on the NYSE by nearly 8 to 7 and on the Nasdaq by almost 7 to 5.


(Additional reporting by Chuck Mikolajczak; Editing by Nick Zieminski and Kenneth Barry)



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Story of Te'o girlfriend death apparently a hoax


SOUTH BEND, Ind. (AP) — A story that Notre Dame football star Manti Te'o's girlfriend had died of leukemia — a loss he said inspired him to help lead the Irish to the BCS championship game — was dismissed by the university Wednesday as a hoax perpetrated against the linebacker.


Notre Dame athletic director Jack Swarbrick says his faith has not been shaken in Te'o "one iota."


Swarbrick says an investigation by a firm the school hired has convinced him that Te'o was duped into an online relationship with a woman whose death was then faked by the perpetrators of the hoax.


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Manatee’s Missing Link Found in Africa






A fossil found in 2008 may be the missing link — for manatees, that is.


Modern manatees and their lookalike relatives, the dugongs, are close relatives of elephants, yet no trace of their ancestry had ever been found in Africa, where elephants evolved.  






Then a small piece of skull was found unexpectedly in Tunisia. The fossil, which scientists have been able to identify as from an extinct sea cow, re-roots the origin of manatees in Africa, said study researcher Julian Benoit of the University of Science and Technology in Montpellier, France.


“No fossil Sirenian was found in this locality before,” Benoit told LiveScience. “It was new and really exciting.” [Sirenian Gallery: Photos of Cute Sea Cows]


Manatee mystery


Bulbous and gentle, the manatee is also a bit of a mystery. This marine herbivore, often called a sea cow, is part of a group known as Sirenians, which includes only four living species.


Sea cows are the closest relatives of elephants and hyraxes, small rodentlike mammals that also arose in Africa, and yet the oldest sea cow fossils come from Jamaica.


“It was a biogeographical paradox,” Benoit said.


In 2008, however, researchers uncovered a fragment of sea cow bone from sediments in Djebel Chambi National Park in Tunisia. The site would have supported a freshwater lake when this sea cow lived some 48 million years ago.


The fossil happened to be the petrosal bone, which comes from the ear region of mammals. This was a stroke of luck, because the bone sits right next to the brain, inner ear, carotid artery, cranial nerves and other major structures, Benoit said. The bone molds to these structures, forming a unique shape for each species.


“When it is preserved as a fossil, the marks left by these soft tissues on the petrosal bone can be reconstructed with highly refined precision,” he said.


Tracing the sea cow


These reconstructions allowed the scientists to compare the new fossil with living and extinct sea cows. The density of the bone also revealed that the sea cow from Chambi was an aquatic species. Combined with the fact that the ancient Lake Chambi was freshwater, the fossil suggests that primitive sea cow ancestors were not saltwater dwellers.


To get to Jamaica, however, the sea cows had to adapt, Benoit said.


“The dispersal of sea cows to Jamaica, maybe through the Atlantic Ocean, proves that adaptation to sea waters was a key event of their subsequent successfulness,” he said.


The researchers report their results online today (Jan. 16) in the journal PLOS ONE.


Follow Stephanie Pappas on Twitter @sipappas or LiveScience @livescience. We’re also on Facebook Google+.


Copyright 2013 LiveScience, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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NRA's paranoid fantasy undemocratic






STORY HIGHLIGHTS


  • Paul Waldman: Obama announced gun curbs; gun advocates said it'll be tyranny

  • NRA ad calling Obama "elitist" because his kids get protection is not sane view, he says

  • He says some gun advocates urge resistance to duly authorized law enforcement

  • Waldman: Freedom is guaranteed by law, not gun owners




Editor's note: Paul Waldman is a contributing editor at the American Prospect and the author of "Being Right Is Not Enough: What Progressives Must Learn From Conservative Success." Follow him on his blog and on Twitter.


(CNN) -- When President Obama announced on Wednesday his proposals to curb gun violence, no surprise: Gun advocates condemned it as the first step in a rapid slide toward tyranny.


The night before, the National Rifle Association released an ad calling Obama an "elitist hypocrite," because, the ad says, he's "skeptical about putting armed security in our schools, when his kids are protected by armed guards at their school." (Obama had said in an interview last month that he was "skeptical" that the "only answer" was putting more guns in schools.) Republicans and Democrats alike condemned the NRA for using the president's children in a political attack ad, but the ad was actually quite revealing.



Paul Waldman

Paul Waldman



A sane person might argue that the president and his family require special protection because they face threats the rest of us don't. But the NRA and many of its most fervent supporters don't see it that way. As far as they're concerned, all of us are just as threatened as the person in the Oval Office. The fact that you're an ordinary person and not the leader of the most powerful nation on Earth doesn't mean you haven't already been targeted by an al Qaeda death squad or a murderous drug gang, so you'd better be prepared, not just with a gun but with an entire arsenal of military-style weaponry.


But the real threat in the fantasy world some gun owners have spun inside their heads isn't terrorists. You know the people I'm talking about: the "doomsday preppers," the angry tea partiers talking about "watering the tree of liberty with the blood of tyrants," the folks who can't talk about guns for 30 seconds without bringing up Hitler (who, for what it's worth, didn't actually disarm the German people, as so many gun advocates believe). What's important isn't just that these folks are paranoid, it's who they're paranoid about: the United States government.


Opinion: Real hypocrites are at NRA



Take, for one vivid example, James Yeager, the CEO of a Tennessee company called Tactical Response. In response to the prospect of stricter gun laws, he posted a YouTube video saying, "If that happens, it's gonna spark a civil war, and I'll be glad to fire the first shot. ... I'm not letting my country be ruled by a dictator. I'm not letting anybody take my guns. If it goes one inch further, I'm gonna start killing people."


And who is it, exactly, whom he'd be killing in this fantasy of his? His neighbors? No, he'd be killing the duly constituted authorities of the United States. He's talking about -- maybe dreaming about -- the day when police officers or members of the U.S. military come to his door, so he can kill them. (Yeager later apologized after Tennessee officials suspended his concealed carry permit.)


OK, so this guy is an extremist. But there are thousands, maybe millions, of gun owners out there whose sentiments are only a notch or two more restrained. These people talk a lot about liberty and freedom and love to call themselves patriots, but they seem to have a real problem with democracy. In a democracy, if people are proposing a law you don't like, you criticize it, you argue against it, you campaign against it, you vote against the politicians who support it. But if you believe in democracy, you don't threaten to start killing people if it passes. You don't say that if you don't like a new law, you'll start an insurrection to overthrow the government.


Yet that's exactly what some people are saying, and it isn't just some lonely nut with a webcam and a YouTube account. People like him are spurred on by a conservative media that encourages them to believe that every Obama administration effort they disagree with isn't just something objectionable, it's the very definition of dictatorship.


If you're a regular listener to conservative talk radio, you've heard Barack Obama compared to Hitler and Stalin innumerable times, over every issue from health care to taxes (after Obama's press conference, one Fox News Radio host tweeted, "Freedom ends. Tyranny begins."). Since his election in 2008, supposedly respectable politicians have talked about simply refusing to obey laws they don't like, and some even proposed seceding from the union.


To be clear, most gun owners aren't stockpiling canned goods and assault rifles in preparation for some kind of societal breakdown that will give them permission to act out the violent fantasies they've been nurturing for years. But many would say that their "right" to own any and every kind of firearm they please is the only thing that guarantees that tyranny won't come to the United States.


Well, guess what: They're wrong. In today's world, most tyrants aren't overthrown by an armed populace. Nonviolent revolutions can result in a quick transition to democracy, while violent insurrections often result in long and bloody civil wars.


And here in America, it isn't 1776, and it won't ever be again. The founders may have thought citizens should be able to keep a musket if they wanted, but they also wrote into the Constitution that the government had the obligation to "suppress insurrections." They hoped that our freedom would be guaranteed by our laws and institutions, not by a guy down the block with an AR-15 and a chip on his shoulder.


They certainly didn't set up our democracy in the hope that every time any group of people didn't like a law that democracy produced, they'd abandon any pretense of support for our system of government and start killing the cops and soldiers who protect us. There's a word for people who dream about doing that, and it isn't "patriot."


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The opinions expressed in this commentary are solely those of Paul Waldman.






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FAA grounds all Dreamliners

Federal officials say they are temporarily grounding Boeing's 787 Dreamliners until the risk of possible battery fires is addressed. (Jan. 16)








The Federal Aviation Administration said on Wednesday it would temporarily ground Boeing Co's 787s after a second incident involving battery failures caused one of the Dreamliner passenger jets to make an emergency landing in Japan.

The FAA said airlines would have to demonstrate that the lithium ion batteries involved were safe before they could resume flying Boeing's newest commercial airliner, but gave no details on when that could occur.

Boeing did not immediately respond to requests for comment. Its shares fell 2 percent in after-hours trading to $72.75 after the FAA announcement. The shares of GS Yuasa Corp, a Japanese company that makes batteries for the Dreamliner, fell sharply in early trading there.

"Ultimately, you can view it as a positive thing if they can resolve what the issues are and give people confidence in the safety of the aircraft. In the near-term, though, it's a negative. It's going to force the company to make significant investments," said Ken Herbert, an analyst at Imperial Capital in San Francisco.

The 787, which has a list price of $207 million, represents a leap in the way planes are designed and built, but the project has been plagued by cost overruns and years of delays. Some have suggested Boeing's rush to get planes built after those delays resulted in the recent problems, a charge the company denies.

According to flight tracking website FlightAware, some seven Dreamliners were in the air Wednesday night as the FAA order came down, including a United Airlines flight that left Los Angeles for Houston just a few minutes before the order. United could not be immediately reached for comment.

The use of new battery technology is among the cost-saving features of the 787, which Boeing says burns 20 percent less fuel than rival jetliners using older technology.

Lithium-ion batteries can catch fire if they are overcharged and, once alight, they are difficult to put out as the chemicals produce oxygen, Boeing's chief engineer for the 787, Mike Sinnett, told reporters last week. He said lithium-ion was not the only battery choice, but "it was the right choice".

In Asia, only the Japanese and Air India have the Dreamliner in service, but other airlines are among those globally to have ordered around 850 of the new aircraft.

Boeing has said it will at least break even on the cost of building the 1,100 new 787s it expects to deliver over the next decade. Some analysts, however, say Boeing may never make money from the aircraft, given its enormous development cost.

Any additional cost from fixing problems discovered by the string of recent incidents would affect those forecasts and could hit Boeing's bottom line more quickly if it has to stop delivering planes, analysts said.

BATTERY PROBLEMS

In the latest incident, All Nippon Airways Co Ltd said instruments aboard a domestic flight indicated a battery error, triggering emergency warnings. The incident was described by a transport ministry official as "highly serious" - language used in international safety circles as indicating there could have been an accident.

That led ANA and Japan Airlines Co Ltd to ground their 24 Dreamliners pending checks. Japanese transportation officials said they could not immediately comment on the FAA decision, as did a spokesman for JAL. An ANA spokeswoman said the FAA's order meant the airline could not use its 787s on its U.S. routes.

But barring a prolonged grounding or a severe and uncontained crisis, aircraft industry sources say there is no immediate threat of cancellations for the plane, even after the FAA's decision to halt 787 flights.

Among other reasons, they cite the heavy costs of retraining and investing in new infrastructure, as well as a shortage of alternatives in an industry dominated by just two large jet suppliers.

The Dreamliner's problems could sharpen competition between Boeing and its European rival Airbus, which itself experienced a dip in sales for its A380 superjumbo following problems with wing cracks a year ago. The A380 crisis has since eased and most airlines report the aircraft are flying full.






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Sahara hostage siege turns Mali war global


ALGIERS/BAMAKO (Reuters) - Islamist fighters have opened an international front in Mali's civil war by taking dozens of Western hostages at a gas plant in the Algerian desert just as French troops launched an offensive against rebels in neighboring Mali.


Nearly 24 hours after gunmen stormed the natural gas pumping site and workers' housing before dawn on Wednesday, little was certain beyond a claim by a group calling itself the "Battalion of Blood" that it was holding 41 foreign nationals, including Americans, Japanese and Europeans, at Tigantourine, deep in the Sahara.


Algerian media said a Briton and an Algerian were killed in the assault. Another local report said a Frenchman had died.


One thing is clear: as a headline-grabbing counterpunch to this week's French buildup in Mali, it presents French President Francois Hollande with a daunting dilemma and spreads fallout from Mali's war against loosely allied bands of al Qaeda-inspired rebels far beyond Africa, challenging Washington and Europe.


A French businessman with employees at the site said the foreigners were bound and under tight guard, while local staff, numbering 150 or more, was held apart and had more freedom.


Led by an Algerian veteran of guerrilla wars in Afghanistan, the group demanded France halt its week-old intervention in Mali, an operation endorsed by Western and African allies who fear that al Qaeda, flush with men and arms from the defeated forces of Libya's Muammar Gaddafi, is building a haven in the desert.


Hollande, who won wide praise for ordering air strikes and sending troops to the former French colony, said little in response. In office for only eight months, he has warned of a long, hard struggle in Mali and now faces a risk of attacks on more French and other Western targets in Africa and beyond.


The Algerian government ruled out negotiating and the United States and other Western governments condemned what they called a terrorist attack on a facility, now shut down, that produces 10 percent of Algeria's gas, much of which is pumped to Europe.


The militants, communicating through established contacts with media in neighboring Mauritania, said they had dozens of men at the base, near the town of In Amenas close to the Libyan border, and that they were armed with mortars and anti-aircraft missiles.


They said they had repelled a raid by Algerian forces after dark on Wednesday. There was no government comment on that. Algerian officials said earlier about 20 gunmen were involved.


LIVES AT RISK


The militants issued no explicit threat but made clear the hostages' lives were at risk: "We hold the Algerian government and the French government and the countries of the hostages fully responsible if our demands are not met and it is up to them to stop the brutal aggression against our people in Mali," read one statement carried by Mauritanian media.


The group also said its fighters had rigged explosives around the site and any attempt to free the hostages would lead to a "tragic end." The large numbers of gunmen and hostages involved pose serious problems for any rescue operation.


Smaller hostage-taking incidents have been common in the Sahara and financial gain plays a part in the actions of groups whose members mingle extremist religious aims with traditional smuggling and other pursuits in the lawless, borderless region.


Algerian Interior Minister Daho Ould Kablia said the raid was led by Mokhtar Belmokhtar, who fought Soviet forces in Afghanistan in the 1980s and recently set up his own group in the Sahara after falling out with other local al Qaeda leaders.


A holy warrior-cum-smuggler dubbed "The Uncatchable" by French intelligence and "Mister Marlboro" by some locals for his illicit cigarette-running business, Belmokhtar's links to those who seized towns across northern Mali last year are unclear.


French media said the militants were also demanding that Algeria, whose government fought a bloody war against Islamists in the 1990s, release dozens of prisoners from its jails.


AMERICANS


The militants said seven Americans were among the 41 foreign hostages - a figure U.S. officials said they could not confirm.


Norwegian energy company Statoil, which operates the gas field in a joint venture with Britain's BP and the Algerian state company Sonatrach, said nine of its Norwegian employees and three of its Algerian staff were being held.


Also reported kidnapped, according to various sources, were five Japanese working for the engineering firm JGC Corp, a French national, an Austrian, an Irishman and a number of Britons.


U.S. Defense Secretary Leon Panetta said, "I want to assure the American people that the United States will take all necessary and proper steps that are required to deal with this situation."


He said he lacked firm information on whether there were links to the situation in Mali. Analysts pointed to shifting alliances and rivalries among Islamists in the region to suggest the hostage-takers may have a range of motives.


In their own statements, they condemned Algeria's secularist government for "betraying" its predecessors in the bloody anti-colonial war against French rule half a century ago by letting French warplanes fly over its territory to Mali. They also accused Algeria of shutting its border to Malian refugees.


Panetta said Washington was still studying legal and other issues before providing more help to France in the war in Mali.


Hollande has called for international support against rebels who France says pose a threat to Africa and the West, and admits it faces a long struggle against well-equipped fighters who seized Timbuktu and other oasis towns in northern Mali and have imposed Islamic law, including public amputations and beheading.


Islamists have warned Hollande that he has "opened the gates of hell" for all French citizens.


Some of those held at the facility, about 1,300 km (800 miles) inland, had sporadic contact with the outside world.


The head of a French catering company said he had information from a manager who supervises some 150 Algerian employees at the site. Regis Arnoux of CIS Catering told BFM television the local staff was being prevented from leaving but was otherwise free to move around inside and keep on working.


"The Westerners are kept in a separate wing of the base," Arnoux said. "They are tied up and are being filmed. Electricity is cut off, and mobile phones have no charge.


"Direct action seems very difficult. ... Algerian officials have told the French authorities as well as BP that they have the situation under control and do not need their assistance."


MALI OFFENSIVE


French army chief Edouard Guillaud said ground forces were stepping up their operation to engage directly "within hours" the alliance of Islamist fighters, grouping al Qaeda's North African wing AQIM and Mali's home-grown Ansar Dine and MUJWA.


West African military chiefs said the French would soon be supported by about 2,000 troops from Nigeria, Chad, Niger and other states - part of a U.N.-mandated deployment that had been expected to start in September before Hollande intervened.


Chad's foreign minister, Moussa Faki Mahamat, told Radio France International his country alone would send 2,000 troops, suggesting plans for the regional force were already growing.


In Mali, residents said a column of some 30 French Sagaie armored vehicles had set off toward rebel positions from the town of Niono, 300 km (190 miles) from the capital, Bamako.


A Malian military source said French special forces units were taking part in the operation. Guillaud said France's strikes, involving Rafale and Mirage jet fighters, were being hampered because militants were sheltering among civilians.


Many inhabitants of northern Mali have welcomed the French attacks, although some also fear being caught in the cross-fire.


Hollande said on Tuesday that French forces would remain in Mali until stability returned to the West African nation.


The conflict, in a landlocked state of 15 million twice the size of France, has displaced an estimated 30,000 people and raised concerns across mostly Muslim West Africa of a radicalization of Islam in the region.


But many who have lived for many months under harsh and violent Islamist rule said they welcomed the French.


"There is a great hope," one man said from Timbuktu, where he said Islamist fighters were trying to blend into civilian neighborhoods. "We hope that the city will be freed soon."


(Additional reporting by Pascal Fletcher and Andrew Callus in London, Balazs Koranyi in Oslo, Laurent Prieur in Nouakchott, Daniel Flynn in Dakar, John Irish, Catherine Bremer and Nick Vinocur in Paris, David Alexander in Rome and Andrew Quinn in Washington; Writing by Alastair Macdonald; Editing by Peter Cooney)



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Dow, S&P 500 inch up with retailers but Apple drags again

NEW YORK (Reuters) - The Dow and S&P 500 edged higher on Tuesday after stronger-than-expected retail data, though tech heavyweight Apple dragged on the market for a third day.


Apple was the biggest weight on both the S&P 500 and Nasdaq 100 <.ndx> after reports on Monday of cuts to orders for iPhone parts. Shares declined 3.2 percent to $485.92 and closed below $500 for the first time since February.


Retail stocks advanced after a government report showing retail sales rose more than expected in December was seen as a favorable sign for fourth-quarter growth. A separate report showed manufacturing activity in New York state contracted for the sixth month in a row in January.


"A little better-than-expected news on retail sales once again reinforces that the consumer remains alive and reasonably well," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, which manages about $54 billion in assets.


Among retailers, American Eagle Outfitters Inc gained 4.8 percent to $20.58 and Gap Inc rose 3.4 percent to $32.46. The Morgan Stanley retail index <.mvr> advanced 1.5 percent.


Express Inc surged 23.8 percent to $17.40 after the apparel retailer raised its fourth-quarter and full year 2012 outlook.


The Dow Jones industrial average <.dji> was up 27.57 points, or 0.20 percent, at 13,534.89. The Standard & Poor's 500 Index <.spx> was up 1.66 points, or 0.11 percent, at 1,472.34. The Nasdaq Composite Index <.ixic> was down 6.72 points, or 0.22 percent, at 3,110.78.


Apple's stock has lost about 7 percent in the last three sessions and is down 8.7 percent since the start of the year.


"It's tough to discern exactly what's putting the pressure on it. But at the end of the day, its influence, considering it's still 3 1/2 to 4 percent of the S&P 500 index, is being felt," Luschini said.


"I attribute (it) to just some of the bloom coming off of the rose. They haven't necessarily done anything wrong, as much as others have caught up."


Also keeping investors on edge is the looming debt ceiling debate. On Monday, President Barack Obama rejected any negotiations with Republicans over raising the U.S. debt ceiling. The United States could default on its debt if Congress does not increase the borrowing limit.


Resolving the debt ceiling is more a question of how than if. Investors don't expect a U.S. default, but they are also wary of another eleventh-hour agreement like the one in August 2011.


An expected lackluster earnings season, too, kept investors from taking aggressive bets. Analyst estimates for the quarter have fallen sharply since October. S&P 500 earnings growth is now seen up just 1.8 percent from a year ago, Thomson Reuters data showed.


Homebuilder Lennar reported a sharp rise in quarterly profit, but the stock declined 0.8 percent to $40.68 on worries that growth in orders was slowing.


Dell Inc shares added to Monday's gains, ending up 7.2 percent to $13.17 after sources said talks to take the computer maker private are in an advanced stage.


On the down side, shares of Facebook dropped 2.7 percent to $30.10. The company unveiled a "graph search" feature that CEO Mark Zuckerberg said would help its billion-plus users sort through content within the social network and its content feeds.


Volume was roughly 5.8 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 about 17 to 12 and on the Nasdaq by about 13 to 11.


(Additional reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)



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Anti-doping officials want Armstrong under oath


A televised confession by Lance Armstrong isn't enough.


Anti-doping officials want the disgraced cyclist to admit his guilt under oath before considering whether to lift a lifetime ban clouding his future as a competitive athlete. That was seconded by at least one former teammate whom Armstrong pushed aside on his way to the top of the Tour de France podium.


"Lance knows everything that happened," Frankie Andreu told The Associated Press on Tuesday. "He's the one who knows who did what because he was the ringleader. It's up to him how much he wants to expose."


Armstrong has been in conversations with U.S. Anti-Doping Agency officials, touching off speculation that he may be willing to cooperate with authorities there and name names.


Interviewer Oprah Winfrey didn't say if the subject was broached during the taping Monday at a downtown Austin hotel. In an appearance on "CBS This Morning," she declined to give details of what Armstrong told her, but said she was "mesmerized and riveted by some of his answers."


Asked whether the disgraced cyclist appeared genuinely contrite after a decade of fierce denials, Winfrey replied, "I felt that he was thoughtful, I thought that he was serious, I thought that he certainly had prepared for this moment. I would say that he met the moment."


She was promoting what has become a two-part special, Thursday and Friday, on her OWN network.


Around the same time, World Anti-Doping Agency officials issued a statement saying nothing short of "a full confession under oath" would cause them to reconsider Armstrong's lifetime ban from sanctioned events.


The International Cycling Union also urged Armstrong to tell his story to an independent commission it has set up to examine claims that the sport's governing body hid suspicious samples from the cyclist, accepted financial donations from him and helped him avoid detection in doping tests.


The ban was only one of several penalties handed to Armstrong after a scathing, 1,000-page report by USADA last year. The cyclist was also stripped of his seven Tour de France titles, lost nearly all of his endorsements and was forced to cut ties with the Livestrong cancer charity he founded in 1997.


The report portrayed Armstrong as the mastermind of a long-running scheme that employed steroids, blood boosters such as EPO, and a range of other performance-enhancers to dominate the tour. It included revealing testimony from 11 former teammates, including Andreu and his wife, Betsy.


"A lot of it was news and shocking to me," Andreu said. "I am sure it's shocking to the world. There's been signs leading up to this moment for a long time. For my wife and I, we've been attacked and ripped apart by Lance and all of his people, and all his supporters repeatedly for a long time. I just wish they wouldn't have been so blind and opened up their eyes earlier to all the signs that indicated there was deception there, so that we wouldn't have had to suffer as much.


"And it's not only us," he added, "he's ruined a lot of people lives."


Armstrong was believed to have left for Hawaii. The street outside his Spanish-style villa on Austin's west side was quiet the day after international TV crews gathered there hoping to catch a glimpse of him. Nearby, members of his legal team mapped out a strategy on how to handle at least two pending lawsuits against Armstrong, and possibly a third.


The AP reported earlier Tuesday that Justice Department officials were likely to join a whistleblower lawsuit against Armstrong by former teammate Floyd Landis, citing a source who works outside the government and requested anonymity because he was not authorized to speak on the record about the matter.


The lawsuit by Landis, who was stripped of the 2006 Tour de France title after testing positive, alleges that Armstrong defrauded the U.S. government by repeatedly denying he used performance-enhancing drugs. The deadline to join the False Claims Act lawsuit, which could require Armstrong to return substantial sponsorship fees and pay a hefty penalty, is Thursday.


Landis is hardly the only one seeking money back from Armstrong.


During his long reign as cycling champion, Armstrong scolded some critics in public, didn't hesitate to punish outspoken riders during the race, and waged legal battles against still others in court.


The London-based Sunday Times has already filed a lawsuit to recover about $500,000 it paid Armstrong to settle a libel case, and Dallas-based SCA Promotions, which tried to deny him a promised bonus for a Tour de France win, has threatened to bring another lawsuit seeking to recover more than $7.5 million awarded by an arbitration panel.


In Australia, the government of the state of South Australia said it will seek the repayment of several million dollars in appearance fees paid to Armstrong for competing in the Tour Down Under in 2009, 2010 and 2011.


"We'd be more than happy for Mr. Armstrong to make any repayment of monies to us," South Australia Premier Jay Weatherill said.


___


Litke reported from Chicago, Vertuno from Austin, Texas. Pete Yost in Washington and John L. Mone in Dearborn, Mich., also contributed to this report.


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