Sunday, September 9, 2012

Iran could strike US bases if Israel attacks: Hezbollah

Lebanon's Hezbollah leader Sayyed Hassan Nasrallah addresses his supporters via a video projection during a rally marking Resistance and Liberation Day, in the southern Lebanese town of Bint Jbeil May 25, 2012. REUTERS/ Ali Hashisho/Files

Lebanon's Hezbollah leader Sayyed Hassan Nasrallah addresses his supporters via a video projection during a rally marking Resistance and Liberation Day, in the southern Lebanese town of Bint Jbeil May 25, 2012.

Credit: Reuters/ Ali Hashisho/Files

By Laila Bassam

BEIRUT | Tue Sep 4, 2012 4:12am IST

BEIRUT (Reuters) - Iran could hit U.S. bases in the Middle East in response to any Israeli strike on its nuclear facilities even if American forces played no role in the attack, the leader of Lebanon's Iranian-backed militant group Hezbollah said on Monday.

"A decision has been taken to respond and the response will be very great," Hezbollah Secretary-General Sayyed Hassan Nasrallah said in an interview with the Beirut-based Al Mayadeen television.

"The response will not be just inside the Israeli entity - American bases in the whole region could be Iranian targets," he said, citing information he said was from Iranian officials. "If Israel targets Iran, America bears responsibility."

Heightened Israeli rhetoric about Tehran's nuclear facilities, which the West says could be part of a weapons programme, has stoked speculation that it may attack Iran before U.S. elections in November.

Prime Minister Benjamin Netanyahu urged world powers on Sunday to set a "clear red line" to convince Iran they would prevent it from obtaining nuclear arms.

Israel, thought to be the Middle East's only nuclear-armed power, views Iran's nuclear programme as a threat to its regional dominance and to its very existence. Tehran says the atomic work is for peaceful purposes only.

But Netanyahu's cabinet is divided over the wisdom of attacking Iran, and Israeli officials have dropped heavy hints of a climbdown strategy, under which Netanyahu would shelve threats of an attack now in return for a stronger public pledge from President Barack Obama on conditions that would provoke U.S. action in future.

Nasrallah said there were divisions in Israel over attacking Iran. "Personally I do not expect the Israeli enemy - at least in the coming months or foreseeable future - (to wage) an attack on the Islamic Republic of Iran," he said.

Nasrallah pointed to the fragile global economy, which would be weakened further by any sharp rise in crude oil prices stemming from conflict in the Gulf, and to likely Israeli casualties in any war with Iran.

"Netanyahu and (Defence Minister Ehud) Barak inflate the benefit and play down the cost," he said, referring to Barak's estimates that Israel could suffer up to 500 fatalities in any conflict aimed at wiping out Iran's nuclear facilities.

Hezbollah guerrillas fought a 34-day war with Israel six years ago in which 1,200 people in Lebanon, mostly civilians, and 160 people in Israel, mostly soldiers, were killed.

War with Iran would be more deadly, Nasrallah said. "We don't know what will happen in the region."

NO CHEMICAL WEAPONS

He repeated a warning he made last month that Hezbollah could cause widespread destruction if it came into conflict with Israel again, but denied that the Shi'ite Islamist guerrilla and political movement would ever use chemical weapons.

"We do not have chemical weapons and we will not use chemical weapons," Nasrallah said. "The use of chemical weapons is forbidden - for us that is absolute.

Unrest in neighbouring Syria, which acknowledged for the first time in July that it possessed chemical or biological weapons, has led to Western fears that those weapons might fall into the hands of Islamist groups including Hezbollah.

"I do not need chemical weapons - regardless of the religious or practical position," Nasrallah said, addressing Israel. "You have factories, and you have bases, and compounds, and I have rockets."

Israel had several "weak points" which could be targeted, including "economic, industrial, electrical, chemical and nuclear" sites, the Hezbollah leader said.

Even if Israel launched a first strike attack on Lebanon, destroying a large part of Hezbollah's missile arsenal, the militant group would retain the capacity to hit back with deadly force, he added.

Two weeks ago Nasrallah said Hezbollah could kill tens of thousands of Israelis by hitting targets with what he described as precision-guided missiles.

"Hitting these targets with a small number of rockets will turn ... the lives of hundreds of thousands of Zionists to real hell," he said at the time.

(Writing by Dominic Evans; Editing by Alison Williams)


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Lufthansa cabin crew to strike in Frankfurt, Berlin

A flight schedule board shows cancelled flights of German air carrier Lufthansa at the Fraport airport in Frankfurt August 31, 2012. REUTERS/Kai Pfaffenbach

A flight schedule board shows cancelled flights of German air carrier Lufthansa at the Fraport airport in Frankfurt August 31, 2012.

Credit: Reuters/Kai Pfaffenbach

FRANKFURT | Tue Sep 4, 2012 3:34am IST

FRANKFURT (Reuters) - Lufthansa (LHAG.DE) passengers face further disruption after cabin crew representatives said late on Monday they would go on strike on Tuesday for 8 hours in Frankfurt and Berlin in a row over pay and conditions.

The German cabin crew union UFO said it was calling on its members working at Lufthansa to go on strike in Frankfurt from 0400-1200 GMT and in Berlin's Tegel airport from 0300-1100 GMT on Tuesday.

An eight-hour strike at Frankfurt on Friday forced the cancellation of almost 200 Lufthansa flights, leaving 26,000 passengers stranded and costing Germany's biggest airline millions.

The airport, Germany's busiest, was also closed to inbound flights from Europe for several hours due to congestion.

The UFO union, which is calling for a 5 percent pay increase and guarantees against outsourcing and the use of temporary workers, had threatened to widen the strike action if Lufthansa did not make any concessions.

Lufthansa is in the midst of a 1.5 billion euro cost-cutting programme to combat rising fuel costs and competition from low-cost and Gulf carriers. The airline has said it will not improve its offer - 3.5 percent more pay, but longer hours.

(Reporting by Victoria Bryan, Peter Maushagen and Christiaan Hetzner; Editing by Leslie Gevirtz)


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Iran could strike US bases if Israel attacks: Hezbollah

Lebanon's Hezbollah leader Sayyed Hassan Nasrallah addresses his supporters via a video projection during a rally marking Resistance and Liberation Day, in the southern Lebanese town of Bint Jbeil May 25, 2012. REUTERS/ Ali Hashisho/Files

Lebanon's Hezbollah leader Sayyed Hassan Nasrallah addresses his supporters via a video projection during a rally marking Resistance and Liberation Day, in the southern Lebanese town of Bint Jbeil May 25, 2012.

Credit: Reuters/ Ali Hashisho/Files

By Laila Bassam

BEIRUT | Tue Sep 4, 2012 4:12am IST

BEIRUT (Reuters) - Iran could hit U.S. bases in the Middle East in response to any Israeli strike on its nuclear facilities even if American forces played no role in the attack, the leader of Lebanon's Iranian-backed militant group Hezbollah said on Monday.

"A decision has been taken to respond and the response will be very great," Hezbollah Secretary-General Sayyed Hassan Nasrallah said in an interview with the Beirut-based Al Mayadeen television.

"The response will not be just inside the Israeli entity - American bases in the whole region could be Iranian targets," he said, citing information he said was from Iranian officials. "If Israel targets Iran, America bears responsibility."

Heightened Israeli rhetoric about Tehran's nuclear facilities, which the West says could be part of a weapons programme, has stoked speculation that it may attack Iran before U.S. elections in November.

Prime Minister Benjamin Netanyahu urged world powers on Sunday to set a "clear red line" to convince Iran they would prevent it from obtaining nuclear arms.

Israel, thought to be the Middle East's only nuclear-armed power, views Iran's nuclear programme as a threat to its regional dominance and to its very existence. Tehran says the atomic work is for peaceful purposes only.

But Netanyahu's cabinet is divided over the wisdom of attacking Iran, and Israeli officials have dropped heavy hints of a climbdown strategy, under which Netanyahu would shelve threats of an attack now in return for a stronger public pledge from President Barack Obama on conditions that would provoke U.S. action in future.

Nasrallah said there were divisions in Israel over attacking Iran. "Personally I do not expect the Israeli enemy - at least in the coming months or foreseeable future - (to wage) an attack on the Islamic Republic of Iran," he said.

Nasrallah pointed to the fragile global economy, which would be weakened further by any sharp rise in crude oil prices stemming from conflict in the Gulf, and to likely Israeli casualties in any war with Iran.

"Netanyahu and (Defence Minister Ehud) Barak inflate the benefit and play down the cost," he said, referring to Barak's estimates that Israel could suffer up to 500 fatalities in any conflict aimed at wiping out Iran's nuclear facilities.

Hezbollah guerrillas fought a 34-day war with Israel six years ago in which 1,200 people in Lebanon, mostly civilians, and 160 people in Israel, mostly soldiers, were killed.

War with Iran would be more deadly, Nasrallah said. "We don't know what will happen in the region."

NO CHEMICAL WEAPONS

He repeated a warning he made last month that Hezbollah could cause widespread destruction if it came into conflict with Israel again, but denied that the Shi'ite Islamist guerrilla and political movement would ever use chemical weapons.

"We do not have chemical weapons and we will not use chemical weapons," Nasrallah said. "The use of chemical weapons is forbidden - for us that is absolute.

Unrest in neighbouring Syria, which acknowledged for the first time in July that it possessed chemical or biological weapons, has led to Western fears that those weapons might fall into the hands of Islamist groups including Hezbollah.

"I do not need chemical weapons - regardless of the religious or practical position," Nasrallah said, addressing Israel. "You have factories, and you have bases, and compounds, and I have rockets."

Israel had several "weak points" which could be targeted, including "economic, industrial, electrical, chemical and nuclear" sites, the Hezbollah leader said.

Even if Israel launched a first strike attack on Lebanon, destroying a large part of Hezbollah's missile arsenal, the militant group would retain the capacity to hit back with deadly force, he added.

Two weeks ago Nasrallah said Hezbollah could kill tens of thousands of Israelis by hitting targets with what he described as precision-guided missiles.

"Hitting these targets with a small number of rockets will turn ... the lives of hundreds of thousands of Zionists to real hell," he said at the time.

(Writing by Dominic Evans; Editing by Alison Williams)


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Toshiba, Hitachi, others to invest $1.53 bln on wind power - Nikkei

A wind turbine is pictured near power lines in Dorenaz near Martigny, in Southern Switzerland, September 1, 2012. REUTERS/Denis Balibouse

A wind turbine is pictured near power lines in Dorenaz near Martigny, in Southern Switzerland, September 1, 2012.

Credit: Reuters/Denis Balibouse

REUTERS - Toshiba Corp(6502.T), Hitachi Zosen Corp(7004.T), JFE Steel CorpJFEST.UL and three other companies plan to invest 120 billion yen over a decade to set up offshore wind turbines, the Nikkei reported.

Potential sites for the project, which will have a production capacity of 300,000 kilowatts, include areas off the coast of the Kyushu region in southern Japan, the newspaper said.

Sumitomo Electric Industries Ltd, Toa Corp and Toyo Construction Co Ltd are the other companies, the Japanese business daily said.

Funds will be raised through a special-purpose company and project financing, the Nikkei said.

Japan hopes to begin building commercial offshore wind farms, following in the footsteps of Europe, especially world leader Britain.

The Japanese environment ministry has estimated the country can eventually build 1,600 gigawatts of offshore wind power capacity.

(Reporting by Swetha Gopinath in Bangalore)


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Blackened by coal row, government tries to clean up

An activist from Bharatiya Janata Yuva Morcha, wearing a cut-out of Prime Minister Manmohan Singh, lies on a heap of charcoal during a protest in New Delhi August 29, 2012. REUTERS/Adnan Abidi

An activist from Bharatiya Janata Yuva Morcha, wearing a cut-out of Prime Minister Manmohan Singh, lies on a heap of charcoal during a protest in New Delhi August 29, 2012.

Credit: Reuters/Adnan Abidi

By Malini Menon and Ross Colvin

NEW DELHI | Mon Sep 3, 2012 6:26pm IST

NEW DELHI (Reuters) - Government tried on Monday to defuse a political crisis over sweetheart coal deals that has deepened a perception of dysfunction in the world's biggest democracy and derailed Prime Minister Manmohan Singh's efforts to win back investors.

In a shock forecast, Morgan Stanley warned there was a "very high risk" that growth in Asia's third-largest economy could slow to just 4.3 percent in the 2013 fiscal year unless the government took urgent steps to cut the fiscal deficit and encourage private investment.

Singh's government has struggled to defend itself against allegations that it awarded coalfields potentially worth billions of dollars to private and state power, cement and steel companies in a process that was corrupt at worst and lacked transparency or any element of competition at best.

Under pressure from the prime minister's office, a government committee met on Monday to speed up the review of 58 coalfields whose owners have already been issued notices for missing deadlines to get them operational. The coal ministry has until September 15 to decide whether to cancel the licences.

Among those that face possible cancellation of coal mining licences are billionaire Lakshmi Mittal's ArcelorMittal, GVK Power and Infrastructure, India's top aluminium producer Hindalco Industries Ltd - part of the Aditya Birla Group - and Tata Power.

The furore, dubbed "coalgate" by media, has drowned out Singh's efforts to show that his weak coalition government is serious about implementing reforms. For months it has been under fire for dithering while the economy suffers from the impact of the eurozone debt crisis and sluggish U.S. growth.

Morgan Stanley cut its growth forecast for India to 5.1 percent on Monday for the 2012/13 fiscal year. It had previously projected the economy would grow at 5.8 percent in the year ending next March. But in its "bear case" scenario, growth could tumble to 4.3 percent if policy inaction persisted, it said.

The main opposition Bharatiya Janata Party (BJP), which will challenge Singh's ruling Congress party in elections due by 2014, has seized on a state auditor's report that questioned licenses granted for 142 coalfields between 2004 and 2009.

The concessions were awarded by a government committee without competitive bidding. The auditor said it was not clear from the minutes of the committee's meetings how it arrived at decisions on coalfields that could be worth billions of dollars.

The BJP has all but paralysed parliament for two weeks, using the report to blacken the government, which has been buffeted by corruption scandals, most notably a $39 billion telecoms licences scam that saw a former minister arrested.

BJP WANTS TO KEEP CORRUPTION CENTRE-STAGE

Crowding around the speaker's seat in parliament, BJP members chanted "prime minister submit your resignation". Amid the din, the Congress party and its allies managed to pass three bills.

The BJP, which has struggled to capitalise on infighting within the Congress-led coalition, wants to keep alive an issue it believes resonates strongly with voters, political commentator Vinod Mehta said.

"They feel it is striking a chord. They are trying to keep the corruption issue at the centre of political discourse."

Singh has denied any wrongdoing and pointed out that it was his government that proposed competitive bidding, but the softly spoken prime minister's rebuttal has been overshadowed by daily images of parliamentary chaos on cable television news channels.

It has been left to Congress leader Sonia Gandhi, who normally keeps a low profile, to take the fight to the opposition. She has surprised observers with her unusually aggressive response to the BJP's corruption charges.

With the monsoon session of parliament due to end on Friday, there was no sign of an end to the deadlock.

The BJP has signalled that it might be willing to drop its demand for Singh to quit if the government cancels coal licenses and agrees to an independent inquiry. But the government has dismissed the demand, saying a Central Bureau of Investigation probe was already under way.

(Editing by John Chalmers and Robert Birsel)


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Murray, Williams and Federer reach quarters

Andy Murray of Britain hits a return to Milos Raonic of Canada during their match at the US Open men's singles tennis tournament in New York, September 3, 2012. REUTERS/Bill Kostroun

Andy Murray of Britain hits a return to Milos Raonic of Canada during their match at the US Open men's singles tennis tournament in New York, September 3, 2012.

Credit: Reuters/Bill Kostroun

By Julian Linden

NEW YORK | Tue Sep 4, 2012 8:45am IST

NEW YORK (Reuters) - Andy Murray produced a masterclass in tennis to destroy the highly rated Milos Raonic on Monday and book his place in the quarter-finals of the U.S. Open.

The Olympic champion provided more evidence he could be ready to add a first grand slam title to the gold medal he won in London last month when he blunted one of the biggest serves in the game to win 6-4 6-4 6-2.

Serena Williams was just as ruthless as she charged into the women's quarters with a 6-0 6-0 win over Czech Andrea Hlavackova while Roger Federer was gifted a spot in the last eight when Mardy Fish withdrew from the year's final grand slam.

Showing no mercy against her 82nd ranked opponent, Williams sent an ominous warning of her intention to add the U.S. Open title to her recent wins at Wimbledon and the London Olympics with a rare 'double bagel' victory in 57 minutes.

"Andrea played really well today even though it was love and love," Williams said in a courtside interview. "I think I played really well today. I haven't played like that all tournament."

Williams won the last of her three U.S. Open titles in 2008 but on the evidence of her performances so far, a fourth title at Flushing Meadows appears well within her reach although her toughest challenges await.

The American's next opponent is Serbia's Ana Ivanovic, a former world number one who has rediscovered her best after a lean few years where she struggled with injuries.

Ivanovic advanced on Monday with an impressive 6-0 6-4 victory over Bulgarian Tsvetana Pironkova but said she would have to raise her game even higher to compete with Williams.

"She's obviously a great player and she's been playing the best out of all the girls on tour at the moment," said Ivanovic.

"Her serve is definitely her strength. I really have to be sharp from the first moment on and stay aggressive and stay in the moment."

Federer advanced to his 34th consecutive grand slam quarter-final without hitting a ball on the Labor Day holiday in the United States as Fish pulled out with an undisclosed health issue.

"I am really sorry for Mardy," Federer said. "I just want to wish him a speedy recovery. We all want to see him back on tour soon."

HEART AILMENT

The pair were due to clash in the fourth round but Fish, who missed part of the season because of a heart ailment and had treatment for an unspecified illness after his gruelling third round win over Gilles Simon on Saturday night, announced he was pulling out.

"I regret that I have to withdraw from the U.S. Open for precautionary measures," the American said in a statement. "I was reluctant to do so, but am following medical advisement. I had a good summer and look forward to resuming my tournament schedule in the fall."

World number one Federer has not dropped a set in this year's U.S. Open at Flushing Meadows. The 31-year-old Swiss will now play Tomas Berdych after the Czech sixth seed thrashed Spain's Nicolas Almagro 7-6 6-4 6-1.

Poland's Agnieszka Radwanska, the women's second seed, became the highest ranked casualty of the tournament when she lost to Roberta Vinci 6-1 6-4.

The Italian will now play doubles partner and best friend Sara Errani after she upset Germany's Angelique Kerber 7-6 6-3.

Croatia's big-serving Marin Cilic defeated Slovakia's Martin Klizan 7-5 6-4 6-0 to secure a place against Murray, who cruised to victory in two hours.

Raonic boasts one of the biggest serves in the game but Murray broke him four times and never once faced a break point on his own serve.

"It's the last major event of the season so I want to make sure I leave everything out there on the court," Murray said. "Today was by far my best match of the tournament."

(Editing by Ian Ransom)


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Saturday, September 8, 2012

Colombian rebels welcome peace talks "without hatred"

Timoleon Jimenez, rebel commander of the Revolutionary Armed Forces of Colombia (FARC), is seen in this still image taken from video released on an internet web page on September 3, 2012. REUTERS/Farc Video/Handout

Timoleon Jimenez, rebel commander of the Revolutionary Armed Forces of Colombia (FARC), is seen in this still image taken from video released on an internet web page on September 3, 2012.

Credit: Reuters/Farc Video/Handout

By Helen Murphy

BOGOTA | Tue Sep 4, 2012 2:50am IST

BOGOTA (Reuters) - Colombia's FARC rebel leader said on Monday the group would join peace talks with the government "without hatred or arrogance" in its first response to President Juan Manuel Santos' announcement of imminent negotiations.

The prospect of talks, likely to take place in Norway and Cuba, has raised Colombians' hopes of an end to five decades of bloodshed - though past governments' failures to end Latin America's longest-running insurgency show the path is not easy.

In a video posted on the Internet on Monday that swung from serious to mocking, a group of uniformed FARC rebels acknowledged the possible negotiations by singing and playing the bongos - but they also ridiculed Santos.

The group's leader Rodrigo Londono, known by his war alias as Timochenko, is edited onto the introduction of the song, telling the rebels: "We join the negotiating table without hatred or arrogance."

In office since 2010, the conservative Santos last week announced his government had taken part in "exploratory talks" with the leftist FARC - which stands for Revolutionary Armed Forces of Colombia - that may lead to formal negotiations.

He said the nation's second-biggest rebel group, the National Liberation Army or ELN, could also be involved.

In Monday's video, the FARC men and women sang, danced and played the guitar in an unidentified clearing, surrounded by trees and fence posts. Some were dressed in olive-green uniform and others in black T-shirts and berets depicting Argentine revolutionary Ernesto "Che" Guevara.

"I'm off to Havana, this time to talk to he who accuses us of lying about peace, that bourgeois who tries but can't crush us," they sang in the video, which can be seen at: here

"That pedantic Chucky Santos who finds the need to ask (former Cuban leader) Fidel Castro to help with the FARC," they added, in reference to the murderous doll Chucky in the movie franchise "Child's Play."

Around Colombia, there has been cautious optimism since Santos' announcement, with many praising it as a bold move that would help bring further economic prosperity to the Andean nation and free rural areas from the fear of constant attacks.

Some, though, have dissented from that general mood. Most notably, former President Alvaro Uribe and his backers have slammed the move as pandering to "terrorists."

Timochenko's message was received positively by analysts, who recall the FARC as arrogant in the previous attempt at peace that took place in the southern area known as El Caguan and ended in failure in 2002.

"This is a very important message and dramatically different to the stance in Caguan," Caracol Radio cited Angela Maria Robledo, member of Congress' peace commission as saying.

Carlos Lozano, a member of peace advocacy group Colombians for Peace, said the message shows a "clear commitment by the FARC".

TALKS ABROAD

While it is not known if the entire seven-member leadership of the FARC is in agreement with the peace talks, the so-called secretariat takes decisions by majority.

Still, an intelligence source told Reuters that there is discontent among some of the commanders in the powerful southern areas of the group's structure, where much of the cocaine production takes place.

At the mid-point of his four-year term, Santos may reveal more details in the coming days. Another source told Reuters talks are likely to start in Norway then move to Cuba.

Santos, who has said military operations would continue while discussions are under way, has agreed that FARC leaders would not be extradited to a second nation to stand trial, according to the source who asked not to be identified.

As evidence of ongoing military operations, seven FARC fighters were killed on Monday and another five captured during an air raid in central Meta province, Defense Minister Juan Carlos Pinzon said.

"This is an important message that shows the will of the armed forces to work tirelessly against any organization that attacks the Colombian people," Pinzon told reporters.

The drug-funded rebels have been hit hard in recent years by a U.S.-backed Colombian army offensive that has weakened their ranks and hobbled their communication system.

Still, the FARC is able to launch repeated attacks on economic infrastructure and military targets.

Santos had been facing severe criticism over a perception that security was deteriorating amid repeated FARC attacks on oil and mining installations.

While extremely risky, a successful peace agreement with the FARC would secure a place in history for Santos as the only leader to end a war that has killed tens of thousands over the years and sullied the South American nation's reputation.

Santos' approval rating, which slipped to 48 percent in June, moved up again to 51 percent last week in the latest survey by Gallup conducted amid rumors talks were starting.

A previous attempt at peace under former President Andres Pastrana resulted in the FARC using the ceasefire to rebuild its military operations and establish a multi-billion dollar drug-trafficking network. (Editing by Andrew Cawthorne and Cynthia Osterman)


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Lufthansa cabin crew to strike in Frankfurt, Berlin

A flight schedule board shows cancelled flights of German air carrier Lufthansa at the Fraport airport in Frankfurt August 31, 2012. REUTERS/Kai Pfaffenbach

A flight schedule board shows cancelled flights of German air carrier Lufthansa at the Fraport airport in Frankfurt August 31, 2012.

Credit: Reuters/Kai Pfaffenbach

FRANKFURT | Tue Sep 4, 2012 3:34am IST

FRANKFURT (Reuters) - Lufthansa (LHAG.DE) passengers face further disruption after cabin crew representatives said late on Monday they would go on strike on Tuesday for 8 hours in Frankfurt and Berlin in a row over pay and conditions.

The German cabin crew union UFO said it was calling on its members working at Lufthansa to go on strike in Frankfurt from 0400-1200 GMT and in Berlin's Tegel airport from 0300-1100 GMT on Tuesday.

An eight-hour strike at Frankfurt on Friday forced the cancellation of almost 200 Lufthansa flights, leaving 26,000 passengers stranded and costing Germany's biggest airline millions.

The airport, Germany's busiest, was also closed to inbound flights from Europe for several hours due to congestion.

The UFO union, which is calling for a 5 percent pay increase and guarantees against outsourcing and the use of temporary workers, had threatened to widen the strike action if Lufthansa did not make any concessions.

Lufthansa is in the midst of a 1.5 billion euro cost-cutting programme to combat rising fuel costs and competition from low-cost and Gulf carriers. The airline has said it will not improve its offer - 3.5 percent more pay, but longer hours.

(Reporting by Victoria Bryan, Peter Maushagen and Christiaan Hetzner; Editing by Leslie Gevirtz)


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Syrians fleeing war start to trickle into Europe

A civilian pushes a baby stroller containing his belongings as he flees an area after a Syrian Air Force helicopter launched missiles at the El Edaa district in Syria's northwestern city of Aleppo September 2, 2012. REUTERS/Youssef Boudlal

A civilian pushes a baby stroller containing his belongings as he flees an area after a Syrian Air Force helicopter launched missiles at the El Edaa district in Syria's northwestern city of Aleppo September 2, 2012.

Credit: Reuters/Youssef Boudlal

By Mia Shanley

KOPINGEBRO, Sweden | Tue Sep 4, 2012 4:18am IST

KOPINGEBRO, Sweden (Reuters) - Ali Jamal travelled thousands of miles on foot, by train and road to flee violence in Syria while Jomaah piled his family into a camper van to smuggle them north to Europe.

They have now reached safety in Sweden, some of the growing thousands of Syrians who are evading the European Union's frontier controls to escape the turmoil of the past 18 months.

That is raising calls for a more focused European response to a refugee crisis that has seen over 200,000 Syrians flee to Jordan, Iraq, Lebanon and, especially, Turkey. From there, a determined, and usually richer, few press on to the EU borders, mainly into Greece, with most hoping for asylum further north.

Sweden alone, 2,500 km (1,500 miles) from Turkey's European frontier, is expecting 17,000 Syrians to show up seeking refuge this year and next, reflecting a sharply rising trend across the continent; barely a tenth of that number reached Sweden in the first half of this year - itself a marked increase on 2011.

"I crossed a river and someone said, 'You're in Europe. No one can stop you now'," said Jamal, a student from Idlib, recalling the relative ease of reaching a refugee centre in Kopingebro, southern Sweden, after a tough trek into Greece.

Fearing a call-up to President Bashar al-Assad's army, by which his brother had lately been killed trying to desert, the 24-year-old said he felt he had to flee. He spent two days zig-zagging through the mountains of northwestern Syria, dodging bombs and roadblocks to reach the relative safety of Turkey.

With some 75,000 Syrians already registered there, and the United Nations forecasting up to 200,000 could eventually cram in to camps in Turkey, those who can afford it are casting their hopes further afield; Jamal, speaking at the asylum reception hostel in Kopingebro, near Ystad, said he spent 25 days in Turkey before embarking on a shadowy journey overland northward.

Like Jomaah, who spent thousands of dollars hiring a minivan and driver in Turkey to take his family on a clandestine odyssey across Europe, Jamal offered few details of a trip outside the law; but Syrians see it as their only option to escape danger when formal, visa-limited outward travel is all but impossible.

When Jamal's brother was among a group of Syrian soldiers shot in March as they tried to desert, his mind was made up: "I am wanted in Syria," he said. "I don't want to fight and kill people. I want to study. I want to live a normal life."

SWELLING ARRIVALS

The secrecy of illegal border crossings and the patchiness of statistics combining data from the 27 EU member states means the full picture of Syrian migration into the bloc is unclear.

But Germany saw almost as many apply for asylum in the first seven months of this year - 2,246 - as in all of 2011, while Britain and several other countries also report rising figures, according to data from the EU statistics agency Eurostat.

Fearing a rise in illicit crossings, Greece is boosting patrols on its border with Turkey; EU border agency Frontex said there was a twelvefold rise in Syrians caught trying to cross the Greek-Turkish frontier illegally in the six months to June.

But if nearly 2,400 were stopped, Eurostat said 12,325 Syrians had lodged asylum appeals across the EU from January to June - a figure likely to understate the numbers coming in, due to delays in collating data and the fact that not all register.

While the numbers are still small, whether compared to Syria's population of over 20 million or to the EU's 500 million, the move to flight has placed strains on all concerned.

Sweden has had to improvise accommodation. In the case of Jamal and Jomaah that is a hostel normally used by tourists near Kopingebro, on the south coast. Many have moved into picturesque red cottages on an island campsite, which opened last week.

Syrians became the third largest group of asylum seekers in Sweden after Somalis and Afghans at 1,855 in the period from January to July, compared to 303 in the same period last year.

Because of the perceived extreme danger, Sweden has approved nearly all Syrian asylum applications so far this year.

Jomaah, who did not want to give his family name for fear of reprisals against his relatives at home, fled with his wife and children after he was h a ndcuffed and beaten by Assad's forces.

His father drove them to the mountains, whence they went on foot into Turkey. He paid $8,000 to hire a camper wagon and driver to take them into Europe, winding by back roads through village after village on a three-day journey, living concealed in the back of the van on a box of bread, cheese and yogurt.

"They don't stop these camper vans," said Jomaah of the low-profile tactic his guide used to evade the spot police checks which would have thwarted his bid to reach Sweden. "They think, 'tourists'," he said. "We were in the back and couldn't see anything. Maybe it was Bulgaria, maybe Hungary.

"It took a long time to get through Germany."

Many of those with the means to make it to Sweden have left comfortable lives, are well educated and had good jobs. Jomaah, a ship's engineer, spoke of a sprawling family villa surrounded by a garden with olive and lemon trees, a car, his dog and even a boat on which he and his relatives went sailing.

Now, they cram into a room fitted with bunk beds from Swedish budget furniture chain IKEA, eat the local meatballs with macaroni and race to finish the family laundry in their once-a-week, two-hour slot at the communal facility.

And not everyone makes it. Several Syrians drowned last month when the boat bringing them from Turkey sank off Cyprus.

CALLS TO DO MORE

Some migration experts are urging the European Union to make it easier for Syrians - and to arrange a more organised welcome.

Noting that Sweden expects 17,000 Syrians to arrive this year and next, making them the biggest national group of asylum-seekers next year, Mikael Ribbenvik, a director at the Swedish Migration Board, said: "Resources are clearly stretched.

"That is a big number for a small country," he told Reuters.

Philippe Fargues, director of the Migration Policy Centre thinktank at Florence, said Europe should do more to open its borders by saying that anyone coming from Syria could be counted as a refugee, rather than formally have to prove refugee status.

"We are facing a huge crisis at the external border of Europe and that should not continue," he said.

Fargues argued that European bodies and European Union states also had to do more to coordinate their policies so that Syrians would find it easier to seek asylum - as well as to help those countries dealing with the greatest refugee numbers.

For now, the reality for those Syrians fortunate to make it out and get as far as Stockholm is lining up at a government office in the suburbs of the Swedish capital to go through hours of bureaucracy in order to file a claim for political asylum.

"Everyone who comes here is losing something," said Antony Sawires, who reached Sweden with his family a month ago after leaving a house in Damascus and a job in the communications industry. "But we win the safety."

Though counting himself lucky after seeing two cars blow up before he left his home, he was still adjusting to life as a refugee: "I will never have the same lifestyle here," he said as he waited to be called forward to fill out more paperwork.

But his wife, who did not give her name as her eyes filled with tears, was quick to reassure him: "Home," she said, "Is where you feel safe."

(Additional reporting and writing by Patrick Lannin in Stockholm and additional reporting by Elisa Oddone in Berlin and Alessandra Prentice in London; Editing by Alastair Macdonald)


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Iraq says has U.S. support in Kurdish oil deals row

A view of West Qurna oilfield in Basra, 420 km (260 miles) southeast of Baghdad, April 25, 2012. REUTERS/Atef Hassan/Files

A view of West Qurna oilfield in Basra, 420 km (260 miles) southeast of Baghdad, April 25, 2012.

Credit: Reuters/Atef Hassan/Files

BAGHDAD | Tue Sep 4, 2012 1:16am IST

BAGHDAD (Reuters) - A U.S. official has said companies should co-operate with Iraq's central government before striking oil and gas deals with the autonomous Kurdistan region, according to a statement from the Iraqi prime minister's office on Monday.

Baghdad maintains it alone has the right to export Iraqi crude. But Kurdistan has moved ahead with signing exploration deals with oil majors such as Exxon Mobil and Chevron, which the central government rejects as illegal.

"The United States has called on all the companies to (remember) the necessity to co-ordinate with the central government before concluding any deal or contract, especially in the fields of oil and gas," a statement from Prime Minister Nuri al-Maliki's office said.

The statement contained details of a meeting between the prime minister and Elizabeth Jones, U.S. Assistant Secretary of State for Near Eastern Affairs, on Sunday.

A U.S. State Department spokesperson told Reuters that Washington recognised that U.S. firms working in other countries made their own business decisions but that it had given advice on Iraq.

"The USG (U.S. government) has informed and will continue to inform U.S. companies that signing contracts for oil exploration or production with any region of Iraq, without approval from federal Iraqi authorities, exposes these companies to potential legal risks," the spokesperson said.

Kurdish oil exports make up a fraction of Iraq's shipments, but the payment dispute feeds into a wider conflict between Iraqi Arabs and Kurds over autonomy, oil and land that risks upsetting Iraq's uneasy federal union.

Maliki said in July that U.S. President Barack Obama had backed Baghdad's concerns over Exxon Mobil's oil deal with Kurdistan in a letter. The White House declined to comment on its content.

Kurdistan, autonomous since 1991, runs its own government and armed forces but relies on the central government for a percentage of the country's oil revenues from the national budget.

(Reporting by Aseel Kami in Baghdad and Kim Dixon in Washington; Writing by Barry Malone; Editing by Janet Lawrence and Pravin Char)


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Gold hits 5-1/2 month high on stimulus hopes

A goldsmith displays gold bangles in his jewellery shop in Istanbul April 22, 2011. REUTERS/Murad Sezer/Files

A goldsmith displays gold bangles in his jewellery shop in Istanbul April 22, 2011.

Credit: Reuters/Murad Sezer/Files

By Rujun Shen

SINGAPORE | Tue Sep 4, 2012 9:20am IST

SINGAPORE (Reuters) - Gold edged higher on Tuesday to the highest level in more than five months as lacklustre manufacturing data from around the globe fanned speculation of imminent easing measures from central banks.

After U.S. Federal Reserve Chairman Ben Bernanke kept the door open for more stimulus measures last week, data on Monday showed a contraction in manufacturing activity globally and put more pressure on policymakers to take action.

Gold and silver rode the sentiment to multi-month highs as investors piled into the precious metals, aiming to hedge against potential inflation risks.

The most-active U.S. silver futures contract jumped nearly 3 percent earlier in the day to a 4-1/2 month high of $32.38 per ounce, before easing slightly to $32.27.

Silver, both a precious and an industrial metal, has risen nearly 10 percent over the past two weeks, outstripping a 4 percent gain in gold, despite recent data suggesting gloomy global growth outlook.

"Silver looks more at the stimulus implications of weak data," said Nick Trevethan, senior commodity strategist at ANZ in Singapore, adding that the strength in base metals had also helped underpin silver.

Silver is also notorious for price volatility, given the relatively small size of the market and limited liquidity.

Spot gold rose to $1,696.91 per ounce, the highest since mid-March, then eased slightly to $1,695.46.

U.S. gold gained 0.6 percent to $1,698.20.

Asia's physical market saw some scrap selling as prices approached the key $1,700 level.

"We have seen scrap flow into the market since last week, but the quantity is not great," said a Singapore-based dealer. "People think prices will possibly keep rising and are quite cautious on selling at this point."

Investors, eager for more decisive action on curbing the euro zone debt crisis, will be watching the European Central Bank's policy meeting on Thursday and a press conference with ECB President Mario Draghi.

U.S. non-farm payrolls data, due later in the week, will also be a focus for the market. A weak reading may reinforce expectations for another round of quantitative easing from the Fed, analysts said.

Moody's Investors Service has changed its outlook on the Aaa rating of the European Union to negative, warning it might downgrade the bloc if it decides to cut the ratings on the EU's four biggest budget backers: France, Germany, the Netherlands and the United Kingdom.

Holdings of gold-backed exchange-traded funds rose to a record high of 71.729 million ounces by the end of last week. August recorded an inflow of 1.8 million ounces, representing a near 3 percent rise - the biggest monthly gain since November.

(Editing by Chris Lewis)


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Honda Motor to shrink sedan lineup in India: Nikkei

People look at Honda's latest ''Third Generation Honda City'' car inside a new plant of Honda Siel Cars India Ltd. at Tapukara industrial area in Rajasthan September 26, 2008. REUTERS/Vijay Mathur/Files

People look at Honda's latest ''Third Generation Honda City'' car inside a new plant of Honda Siel Cars India Ltd. at Tapukara industrial area in Rajasthan September 26, 2008.

Credit: Reuters/Vijay Mathur/Files

REUTERS - Honda Motor Co(7267.T) will reorganize its car business in India, scaling down its lineup of sedans and focusing on compact vehicles, the Nikkei reported.

Honda, which recently converted its India joint venture, Honda Siel Cars India Ltd, into a wholly owned unit, plans to postpone sales of the new version of its Civic sedan, and forgo manufacturing the new version of the Accord sedan in the country, the business daily said.

The Japanese car manufacturer may discontinue the Accord vehicle altogether in India, the paper said.

Honda's India sales, which fell 20 percent in 2011, have jumped 70 percent in January-July, helped by the newly launched Brio subcompact, the Nikkei said.

Car sales in India rose 6.7 percent in July but were below industry estimates as higher interest rates and a hike in excise taxes stunted demand.

(Reporting by Jochelle Mendonca in Bangalore; Editing by Sriraj Kalluvila)


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Friday, September 7, 2012

Obama, on eve of convention, tours storm-hit Louisiana

U.S. President Barack Obama (2nd L) surveys Hurricane Isaac damage and recovery efforts as he walks around the Ridgewood neighborhood of LaPlace, Saint John the Baptist Parish in Louisiana, September 3, 2012. REUTERS/Larry Downing

U.S. President Barack Obama (2nd L) surveys Hurricane Isaac damage and recovery efforts as he walks around the Ridgewood neighborhood of LaPlace, Saint John the Baptist Parish in Louisiana, September 3, 2012.

Credit: Reuters/Larry Downing

By Mark Felsenthal

LAPLACE, Louisiana | Tue Sep 4, 2012 6:23am IST

LAPLACE, Louisiana (Reuters) - President Barack Obama toured hurricane-stricken Louisiana on Monday and promised federal recovery help as he sought to show his administration was on top of the disaster response on the eve of his Democrats' national convention in North Carolina.

Obama's visit was pre-empted by his Republican challenger, Mitt Romney, who diverted from the campaign trail to Louisiana on Friday to inspect the fallout from Hurricane Isaac a day after accepting his party's nomination for the November 6 election.

Flying into New Orleans on a hot, sunny day, Obama traveled by motorcade to nearby St. John the Baptist Parish, one of the hardest-hit communities, where he met federal, state and local officials and then surveyed the area.

He saw evidence of the storm's fury - twisted road signs, toppled trees, blown-down fences, debris piled high and pools of water beside the road. Stepping out of his limousine, he paused to comfort a few residents and hear their stories.

"There has been enormous devastation in St. John's Parish," Obama told reporters. He cited similar destruction in other parts of Louisiana as well as neighboring Mississippi and praised emergency officials for limiting the loss of life.

The White House has taken pains to depict Obama as deeply engaged in the government's handling of Isaac and its aftermath. His Republican predecessor, George W. Bush, was heavily criticized for the sluggish federal response to Hurricane Katrina, which devastated New Orleans in 2005.

Being cast in the role of consoler-in-chief could have political benefits for Obama, who is locked in a tight race with Romney and will accept his party's nomination in a prime-time speech on Thursday night in Charlotte, North Carolina. The convention begins on Tuesday.

"How y'all doin'?" Obama asked Trebor Smith, wearing shorts and high rubber boots, outside his storm-damaged house.

"Better now," Smith said.

One woman told Obama the water rose so fast that she and her family had to rescued by boat.

Isaac was the first hurricane to strike the United States this year, hitting New Orleans almost exactly seven years after Katrina hit, causing an estimated 1,800 deaths.

But Isaac was a much weaker storm. It was blamed for six deaths in Louisiana and two in neighboring Mississippi, and both states suffered from widespread flooding.

ABOUT 125,000 STILL WITHOUT POWER

Even as the fading remnants of Isaac moved east, about 125,000 people remained without power in Louisiana, the governor's office said. With floodwaters not yet receded in some areas, about 2,600 people remained in emergency shelters. Obama has declared disasters in Louisiana and Mississippi.

Isaac's passage through the Gulf of Mexico last week forced cancellation of one day of the Republican convention in Tampa, Florida, and took some attention away from it.

Obama, staying away from the region while emergency officials were occupied with the height of the crisis, waited until Monday for his visit. He went ahead with a Labor Day rally with union workers in Ohio but freed up time in his campaign schedule by scrapping a second event in the battleground state.

Romney, a wealthy former private equities executive who has struggled to show that he can connect with ordinary Americans, detoured to the disaster zone the day after his convention.

Obama, overheard by news photographers allowed in for a few minutes while he was being briefed, said such presidential visits to disaster zones were "not just for photo-ops."

The White House sought to play down any political implications of the two visits at the height of election season, and highlighted the fact that Louisiana's Republican governor, Bobby Jindal, accompanied both of the men.

But White House spokesman Jay Carney, speaking to reporters aboard Air Force One, echoed Democrats who have pointed out that Romney's running mate, congressional fiscal hawk Paul Ryan, had earlier proposed sharp cuts in disaster relief spending.

" Our biggest priority is helping to house people who've been displaced ... to make sure they have the kind of support they need to get restarted," Obama said on the ground.

He made a point of praising the Federal Emergency Management Agency, saying "in the past we haven't seen the kind of coordination that is necessary." FEMA was a focus of criticism for what was seen as the botched response to Katrina in 2005.

Obama also hailed the first successful test of New Orleans' new $14.5 billion flood defenses, a reinforced network of government-built levees. But he said flooding in St. John the Baptist Parish and elsewhere showed the need for further work and pledged federal efforts to find out what went wrong and expedite solutions.

Meantime, oil operations that had been interrupted along the Gulf Coast were coming back on line. The Energy Department said the Exxon Mobil Corp's (XOM.N) joint-venture 192,500 barrel per day (bpd) Chalmette, Louisiana, refinery was restarting on Monday.

The department also said Exxon's 502,500 bpd Baton Rouge refinery has returned to normal production after reducing throughput because of Isaac. Only Phillips 66's (PSX.N) 247,000 bpd refinery in Alliance, Louisiana, remained shut on Monday due to flooding and power loss from the storm, the agency said.

(Additional reporting by Ian Simpson; Writing by Matt Spetalnick; Editing by Cynthia Osterman and Eric Walsh)


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Ericsson in pole position to buy Nokia Siemens unit - report

The exterior of Ericsson's headquarters are seen in Stockholm April 30, 2009. REUTERS/Bob Strong/Files

The exterior of Ericsson's headquarters are seen in Stockholm April 30, 2009.

Credit: Reuters/Bob Strong/Files

STOCKHOLM | Mon Sep 3, 2012 8:05pm IST

STOCKHOLM (Reuters) - Ericsson, the world's top mobile network infrastructure supplier, is in pole position to buy the business support systems (BSS) unit of rival Nokia Siemens Networks (NSN), Dow Jones Newswires reported on Monday.

In addition to Ericsson, U.S. telecoms equipment maker Amdocs is also interested in the BSS unit, which provides billing and charging systems for telecoms operators, Dow Jones quoted a source familiar with the matter saying.

A source familiar with the situation told Reuters the unit was among assets NSN was considering selling, but could not confirm a deal was imminent.

Ericsson and NSN, a joint venture between Nokia Oyj and Siemens AG, declined to comment. Amdocs was not immediately available for comment.

NSN is in the middle of a slimming programme that will also cut 17,000 of the group's workforce - or almost a quarter of the total - in an effort to improve its finances.

Sweden-based Ericsson has been expanding rapidly in BSS and operations support systems (OSS), last year buying Telcordia in the United States for $1.1 billion.

A recent survey by consultancy Gartner ranked Ericsson top globally by revenues in OSS and BSS services, including sales acquired with Telcordia.

NSN made a profit of 27 million euros on a non-IFRS basis in the second quarter on sales of 3.3 billion.

(Editing by David Holmes)


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Oracle to appeal U.S. copyright damages case: SAP

The company logo is shown at the headquarters of Oracle Corporation in Redwood City, California February 2, 2010. REUTERS/Robert Galbraith

The company logo is shown at the headquarters of Oracle Corporation in Redwood City, California February 2, 2010.

Credit: Reuters/Robert Galbraith

STUTTGART | Tue Sep 4, 2012 2:26am IST

STUTTGART (Reuters) - U.S. business software maker Oracle (ORCL.O) has launched an appeal on a five-year long court case that could see SAP (SAPG.DE) pay millions more in damages over copyright infringement.

On Monday, a spokesman for SAP confirmed a report in the German daily Mannheimer Morgen to this effect, adding that "in the worst case the appeal could take two years," adding SAP was disappointed that Oracle continued to drag out the process.

"We agreed to a reasonable arrangement, since we believe this case has already persisted long enough," the SAP spokesman said.

SAP agreed in August to pay Oracle $306 million in damages over copyright infringement allegations against a SAP unit, "to save the time and expense of this new trial, and to expedite the resolution of the appeal," as lawyers for both companies had said at the time.

A Northern California jury determined in 2010 that Oracle should be paid $1.3 billion over accusations SAP subsidiary TomorrowNow wrongfully downloaded millions of Oracle files.

However, U.S. District Judge Phyllis Hamilton last year discarded the jury verdict and said Oracle could accept a $272 million award, or opt for a new trial against SAP.

(Reporting by Christiaan Hetzner; Editing by Leslie Gevirtz)


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Iran could strike US bases if Israel attacks: Hezbollah

Lebanon's Hezbollah leader Sayyed Hassan Nasrallah addresses his supporters via a video projection during a rally marking Resistance and Liberation Day, in the southern Lebanese town of Bint Jbeil May 25, 2012. REUTERS/ Ali Hashisho/Files

Lebanon's Hezbollah leader Sayyed Hassan Nasrallah addresses his supporters via a video projection during a rally marking Resistance and Liberation Day, in the southern Lebanese town of Bint Jbeil May 25, 2012.

Credit: Reuters/ Ali Hashisho/Files

By Laila Bassam

BEIRUT | Tue Sep 4, 2012 4:12am IST

BEIRUT (Reuters) - Iran could hit U.S. bases in the Middle East in response to any Israeli strike on its nuclear facilities even if American forces played no role in the attack, the leader of Lebanon's Iranian-backed militant group Hezbollah said on Monday.

"A decision has been taken to respond and the response will be very great," Hezbollah Secretary-General Sayyed Hassan Nasrallah said in an interview with the Beirut-based Al Mayadeen television.

"The response will not be just inside the Israeli entity - American bases in the whole region could be Iranian targets," he said, citing information he said was from Iranian officials. "If Israel targets Iran, America bears responsibility."

Heightened Israeli rhetoric about Tehran's nuclear facilities, which the West says could be part of a weapons programme, has stoked speculation that it may attack Iran before U.S. elections in November.

Prime Minister Benjamin Netanyahu urged world powers on Sunday to set a "clear red line" to convince Iran they would prevent it from obtaining nuclear arms.

Israel, thought to be the Middle East's only nuclear-armed power, views Iran's nuclear programme as a threat to its regional dominance and to its very existence. Tehran says the atomic work is for peaceful purposes only.

But Netanyahu's cabinet is divided over the wisdom of attacking Iran, and Israeli officials have dropped heavy hints of a climbdown strategy, under which Netanyahu would shelve threats of an attack now in return for a stronger public pledge from President Barack Obama on conditions that would provoke U.S. action in future.

Nasrallah said there were divisions in Israel over attacking Iran. "Personally I do not expect the Israeli enemy - at least in the coming months or foreseeable future - (to wage) an attack on the Islamic Republic of Iran," he said.

Nasrallah pointed to the fragile global economy, which would be weakened further by any sharp rise in crude oil prices stemming from conflict in the Gulf, and to likely Israeli casualties in any war with Iran.

"Netanyahu and (Defence Minister Ehud) Barak inflate the benefit and play down the cost," he said, referring to Barak's estimates that Israel could suffer up to 500 fatalities in any conflict aimed at wiping out Iran's nuclear facilities.

Hezbollah guerrillas fought a 34-day war with Israel six years ago in which 1,200 people in Lebanon, mostly civilians, and 160 people in Israel, mostly soldiers, were killed.

War with Iran would be more deadly, Nasrallah said. "We don't know what will happen in the region."

NO CHEMICAL WEAPONS

He repeated a warning he made last month that Hezbollah could cause widespread destruction if it came into conflict with Israel again, but denied that the Shi'ite Islamist guerrilla and political movement would ever use chemical weapons.

"We do not have chemical weapons and we will not use chemical weapons," Nasrallah said. "The use of chemical weapons is forbidden - for us that is absolute.

Unrest in neighbouring Syria, which acknowledged for the first time in July that it possessed chemical or biological weapons, has led to Western fears that those weapons might fall into the hands of Islamist groups including Hezbollah.

"I do not need chemical weapons - regardless of the religious or practical position," Nasrallah said, addressing Israel. "You have factories, and you have bases, and compounds, and I have rockets."

Israel had several "weak points" which could be targeted, including "economic, industrial, electrical, chemical and nuclear" sites, the Hezbollah leader said.

Even if Israel launched a first strike attack on Lebanon, destroying a large part of Hezbollah's missile arsenal, the militant group would retain the capacity to hit back with deadly force, he added.

Two weeks ago Nasrallah said Hezbollah could kill tens of thousands of Israelis by hitting targets with what he described as precision-guided missiles.

"Hitting these targets with a small number of rockets will turn ... the lives of hundreds of thousands of Zionists to real hell," he said at the time.

(Writing by Dominic Evans; Editing by Alison Williams)


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UK's Prince Harry happy to joke about naked Vegas pics

Britain's Prince Harry laughs during the WellChild awards ceremony at the InterContinental Hotel in London September 3, 2012. REUTERS/Lewis Whyld/pool

1 of 3. Britain's Prince Harry laughs during the WellChild awards ceremony at the InterContinental Hotel in London September 3, 2012.

Credit: Reuters/Lewis Whyld/pool

LONDON | Tue Sep 4, 2012 2:20am IST

LONDON (Reuters) - Britain's Prince Harry was happy to poke fun at himself on Monday when he made his first official public appearance since pictures of him cavorting naked while on holiday in Las Vegas were published.

The 27-year-old prince, third-in-line to the British throne, made news around the world two weeks ago when the pictures of him naked with a young woman in his hotel suite were printed in newspapers and on websites.

Giving a speech before handing out awards for the WellChild charity for seriously ill children for which he is a patron, Harry jokingly alluded to the incident as he paid tribute to the winners.

"All of you, children, families, nurses, doctors, carers, volunteers are quite frankly too remarkable for me adequately to describe with mere words," he said.

"But never one to be shy in coming forward, I'll give it a go," he added, before grinning knowingly as the audience burst into laughter and gave him a warm round of applause.

Earlier one of the children attending the awards, six-year-old Alex Logan, told ITV News that when he spoke to Queen Elizabeth's grandson he planned to say: "I'm glad you've got your clothes on Prince Harry."

But when they met, Harry gave him a smile, wagged his finger at him and warned him not to mention the incident.

"Harry said to Alex 'you keep looking up at your mum, looks like you're dying to say something but you know she will tell you off'," Logan's mother Debbie said.

"'I heard you were on ITV earlier, you said something cheeky, let's not talk about that here'."

(Reporting by Michael Holden; Editing by Alison Williams)


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Former NASA engineer designs app to chart water quality

A glass of tap water is served at a restaurant in New York June 10, 2009. REUTERS/Shannon Stapleton/Files

A glass of tap water is served at a restaurant in New York June 10, 2009.

Credit: Reuters/Shannon Stapleton/Files

By Julie Mullins

STOCKHOLM | Mon Sep 3, 2012 3:38pm IST

STOCKHOLM (Reuters) - When environmental engineer John Feighery got an internship at NASA in the 1990s, he wanted to be an astronaut but he was given a job working with a team designing the U.S. bathroom for the space station.

The small, closet-like space needed a toilet and room for hand washing, bathing and a place to keep toiletries. Feighery also worked on a project to fix equipment designed for monitoring crew health, which included testing water and air quality.

After the Columbia Space Shuttle accident in 2003 left seven crew members dead, the Space Shuttle programme was suspended and further work on the International Space Station was delayed.

Feighery turned his focus from managing water, sanitation and health problems in space to those on Earth.

"I'd been working on supplying clean water to three or four people in space, and meanwhile there are a billion here on earth that don't have it," Feighery said in an interview with AlertNet, the global humanitarian news service. "The world that my kids are going to grow up in has this huge problem that I felt like I could work on."

WORK ON THE GROUND

After he left the U.S. National Aeronautics and Space Administration Feighery tested well water in Bangladesh for a job funded by the National Institutes of Health, part of the U.S. Health and Human Services department.

He felt the work, which involved using heavy equipment, charting notes and locations by hand and transporting samples in incubators to a distant laboratory could be simpler and less expensive.

That's how he came up with the idea to use inexpensive testing equipment available online, and mWater - an Android app that records the data results of water quality tests and maps them.

The application allows people to track water quality tests at any given water source over time, providing instant results which are put in context with other tests.

The app, which is available in the Google Play Store, also allows users to leave notes for other users about the appearance of the water, its scent, and how the water is flowing from the source, building up an archive of information over time.

A photograph of the water source can be uploaded and location details are registered automatically using a GPS reading from the mobile device.

U.N. Habitat funded a study in Tanzania to test mWater's capacity to provide local health officers with a simple way to see the quality of water using a mobile phone with an Android operating system.

"It's a very novel approach to water quality monitoring," said Lars Onsager Stordal, who works for U.N. Habitat's water, sanitation and infrastructure department. "It makes it possible, affordable and manageable at the local level."

Health workers can use the data or even go with a sick patient and easily test the water where they live.

"Anybody can look at it and see what's going on to see if anyone else might get infected," Feighery said. "When fecal contamination occurs somewhere it is the first precursor of disease in water systems. Before cholera spreads there's usually some failure in the sanitation system."

Giving poor people proper access to safe water and sanitation would save 2.5 million people a year from dying from diarrhoea and other diseases spread by a lack of hygiene, according to the charity WaterAid.

Next, Feighery will be working with U.N. Habitat and Rwanda's ministry of health to help equip health workers to use mWater.

(AlertNet is run by the Thomson Reuters Foundation. Visit www.trust.org/alertnet) (Editing by Patricia Reaney)


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Thursday, September 6, 2012

RBI seen keeping rates steady in Sept: Reuters Poll

The Reserve Bank of India logo is pictured outside its head office in Mumbai May 3, 2011. REUTERS/Danish Siddiqui/Files

The Reserve Bank of India logo is pictured outside its head office in Mumbai May 3, 2011.

Credit: Reuters/Danish Siddiqui/Files

By Shamik Paul and Neha Dasgupta

MUMBAI | Mon Sep 3, 2012 5:54pm IST

MUMBAI (Reuters) - Reserve Bank of India is expected to keep its key interest rate steady this month, a Reuters poll showed, and economists see only a slight easing this calendar year, pointing to hawkish comments from policymakers concerned over high inflation.

A marginally higher-than-expected gross domestic product growth in the first quarter of this fiscal year reported last week gives additional room to the Reserve Bank of India to hold rates steady for a fifth straight month.

Of the 21 analysts polled, 19 see the repo rate unchanged at 8 percent at the mid-quarter review on September 17, in line with expectations in a previous poll in July. But the median estimate for the policy rate at December-end is now 7.75 percent, higher than 7.50 percent previously forecast.

"Given the recent comments of the RBI governor Subbarao that inflation management is key priority, and with better than expected GDP print, we expect RBI to hold on to rates," said Anubhuti Sahay, an economist at Standard Chartered Bank.

"If the GDP print would have fallen below 5 percent, then there could have been pressure on the RBI to cut rates."

RBI Governor Duvvuri Subbarao last week said inflation remained too high and needed to fall further or risk more damage to the economy.

The country's wholesale inflation unexpectedly dropped to 6.87 percent in July from 7.25 percent in June, but non-food manufacturing inflation, a key concern for the RBI, rose to 5.44 percent from 4.9 percent.

The Reuters poll also showed a further scaling back of full-year growth projections for Asia's third largest economy, with the median estimate at 5.7 percent for fiscal 2012/13, compared with 6.3 percent in the July poll.

Data released last week showed India's GDP grew 5.5 percent in April-June, slightly higher than 5.3 percent in the previous quarter, driven by a rebound in construction and financial services.

The RBI has refused to lower interest rates since its surprise 50 basis point cut in April despite slackening growth, citing need for the government to free up supply constraints that have pushed up food prices, and launch fiscal reforms.

Economists - except for one - ruled out a cut in banks' cash reserve ratio (CRR), or the amount of deposit the lenders have to maintain with the central bank, because of easy liquidity conditions. (Editing by Aradhana Aravindam and Sanjeev Miglani)


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Asian shares steady, stimulus hopes support

People carrying umbrellas pass an electronic screen displaying share prices outside a brokerage in Tokyo June 11, 2012. REUTERS/Yuriko Nakao/Files

People carrying umbrellas pass an electronic screen displaying share prices outside a brokerage in Tokyo June 11, 2012.

Credit: Reuters/Yuriko Nakao/Files

By Chikako Mogi

TOKYO | Tue Sep 4, 2012 8:47am IST

TOKYO (Reuters) - Asian shares steadied on Tuesday as investors saw weak regional and global economic data as raising the prospect for more stimulus from central banks to underpin growth, while Europe kept hopes alive for some progress in tackling its debt crisis.

Business surveys from the euro zone to China underscored a spreading contraction in manufacturing around the world as the euro zone's troubles took a deeper toll on their economies.

A 13-month-long contraction in the euro zone purchasing managers' index in August raised expectations the European Central Bank may cut its main interest rates at its meeting on Thursday.

Investors now eyed the U.S. Institute for Supply Management manufacturing data due later in the day, a key report that will help gauge the probability of further easing by the Federal Reserve at its September 12-13 policy meeting.

"The ECB meeting this week is important, but the U.S. ISM index will also be key, because if these numbers are bad there is a chance things will turn worse," said Chung Seung-jae, an analyst at Mirae Asset Securities in Seoul.

MSCI's broadest index of Asia-Pacific shares outside Japan was barely changed. The index fell to a fresh four-week low on Monday before recovering to rise on global stimulus hopes.

European shares inched higher on Monday, with U.S. markets closed for a holiday.

Japan's Nikkei stock average inched down 0.1 percent to hover near a four-week low touched on Monday. The growth-sensitive Australian dollar hit a fresh six-week low of $1.0224 against the U.S. dollar and stayed near a nine-week low against the euro, undermined by concerns about slowdowns at home and in China, its largest export market.

Sluggish demand from the world's second-largest economy and leading consumer of raw materials have weighed on Australian shares as declining commodities prices, recently in particular the plunge in iron ore prices to their lowest levels since late 2009, hit miners.

"The recent sharp decline in commodity prices has caused profits to deteriorate significantly, such that miners are now spending more in capex than they are earning. This is not a sustainable situation," said Credit Suisse analyst Atul Lele.

Australia's third-ranked iron ore miner, Fortescue Metals Group (FMG.AX), on Tuesday slashed capital spending and cut its expansion schedule for iron ore production, boosting its shares.

The Reserve Bank of Australia is expected to hold rates steady at 3.5 percent at Tuesday's meeting, but surprisingly weak retail sales fuelled speculation for a cut later this year.

ECB PRICED IN

The euro rose 0.2 percent to $1.2619, within reach of an eight-week peak of $1.2638 set on Friday.

Markets were already pricing in the ECB on Thursday to at least outline its bond-buying scheme aimed at containing the borrowing cost in struggling economies such as Spain. Such prospects have help cap Spanish 10-year yields below a critical level of 7 percent.

"While the white swan from the ECB's announcement of a new bond buying programme was welcome, we remain concerned that new white swans will be slower in coming," Societe Generale said in a research note.

"This is nonetheless what defines the main upside. In China and the U.S., the upside is defined by more policy stimulus. Our fear is that such initially white swans, medium-term would turn to black," it said.

ECB President Mario Draghi told European lawmakers on Monday the ECB's purchases of short-term sovereign bonds would not breach the European Union's taboo of directly financing euro zone economies.

"The comments were not meant to be public but of course raised market expectations of the ECB meeting on Thursday," Westpac Institutional Bank said in a note.

Separately, German Finance Minister Wolfgang Schaeuble said on Monday he was sure the country's Constitutional Court at its September 12 ruling would not block treaties establishing a permanent bailout fund, the European Stability Mechanism (ESM), and strong budgetary regulations in Europe.

The ESM, meant to succeed the existing temporary European Financial Stability Facility, will provide a crucial firewall to contain the euro zone debt crisis and the ECB's bond-buying plan is conditional on its deployment.

Precious metals rose on speculation for additional monetary policy.

The most active U.S. silver futures contract rose nearly 3 percent to $32.38 per ounce, the highest since mid-April, while spot silver stayed near a 4-1/2 mongh high of $32.31 hit on Monday. Spot gold rose to $1,696.91 an ounce, the highest since mid-March.

U.S. crude rose 0.8 percent to $97.21 a barrel while Brent inched up 0.3 percent to $116.12.

Asian credit markets firmed, tightening the spread on the iTraxx Asia ex-Japan investment-grade index by four basis points.

(Additional reporting by Christine Kim in Seoul and Victoria Thieberger in Melbourne; Editing by Michael Perry & Kim Coghill)


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China's Baidu to invest $1.6 bln to set up cloud computing centre

A security personnel stands near the logo of Baidu outside its headquarters in Beijing December 15, 2010.

Credit: Reuters/Soo Hoo Zheyang/Files


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Tech Mahindra to buy Hutch's India call centre business - sources

Employees at a call centre provide service support to international customers in Bangalore March 17, 2004. REUTERS/Sherwin Crasto/Files

Employees at a call centre provide service support to international customers in Bangalore March 17, 2004.

Credit: Reuters/Sherwin Crasto/Files

BANGALORE/MUMBAI | Mon Sep 3, 2012 8:23pm IST

BANGALORE/MUMBAI (Reuters) - Software services provider Tech Mahindra(TEML.NS) plans to buy Hutchison Whampoa's(0013.HK) call centre business in the country, according to two sources with direct knowledge, in a deal that one of the sources said was worth between $100 million and $120 million.

Recent media reports had said British outsourcing group Serco was also interested in buying Hutchison Global Services, which services Hutchison's mobile firm Three in the UK and Ireland as well as Vodafone (VOD.L) in Australia.

Hutchison Global Services has about 12,000 employees operating out of five facilities in India, according to its website.

Tech Mahindra, a unit of Mahindra & Mahindra, and Hutch could not be reached for a comment immediately.

Tech Mahindra, whose clients include global telecoms companies BT Plc and AT&T, is holding a press conference on Tuesday, saying it would make a "strategic announcement."

(Reporting by Harichandan Arackali in BANGALORE and Sumeet Chatterjee in MUMBAI; Editing by David Cowell)


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Blackened by coal row, government tries to clean up

An activist from Bharatiya Janata Yuva Morcha, wearing a cut-out of Prime Minister Manmohan Singh, lies on a heap of charcoal during a protest in New Delhi August 29, 2012. REUTERS/Adnan Abidi

An activist from Bharatiya Janata Yuva Morcha, wearing a cut-out of Prime Minister Manmohan Singh, lies on a heap of charcoal during a protest in New Delhi August 29, 2012.

Credit: Reuters/Adnan Abidi

By Malini Menon and Ross Colvin

NEW DELHI | Mon Sep 3, 2012 6:26pm IST

NEW DELHI (Reuters) - Government tried on Monday to defuse a political crisis over sweetheart coal deals that has deepened a perception of dysfunction in the world's biggest democracy and derailed Prime Minister Manmohan Singh's efforts to win back investors.

In a shock forecast, Morgan Stanley warned there was a "very high risk" that growth in Asia's third-largest economy could slow to just 4.3 percent in the 2013 fiscal year unless the government took urgent steps to cut the fiscal deficit and encourage private investment.

Singh's government has struggled to defend itself against allegations that it awarded coalfields potentially worth billions of dollars to private and state power, cement and steel companies in a process that was corrupt at worst and lacked transparency or any element of competition at best.

Under pressure from the prime minister's office, a government committee met on Monday to speed up the review of 58 coalfields whose owners have already been issued notices for missing deadlines to get them operational. The coal ministry has until September 15 to decide whether to cancel the licences.

Among those that face possible cancellation of coal mining licences are billionaire Lakshmi Mittal's ArcelorMittal, GVK Power and Infrastructure, India's top aluminium producer Hindalco Industries Ltd - part of the Aditya Birla Group - and Tata Power.

The furore, dubbed "coalgate" by media, has drowned out Singh's efforts to show that his weak coalition government is serious about implementing reforms. For months it has been under fire for dithering while the economy suffers from the impact of the eurozone debt crisis and sluggish U.S. growth.

Morgan Stanley cut its growth forecast for India to 5.1 percent on Monday for the 2012/13 fiscal year. It had previously projected the economy would grow at 5.8 percent in the year ending next March. But in its "bear case" scenario, growth could tumble to 4.3 percent if policy inaction persisted, it said.

The main opposition Bharatiya Janata Party (BJP), which will challenge Singh's ruling Congress party in elections due by 2014, has seized on a state auditor's report that questioned licenses granted for 142 coalfields between 2004 and 2009.

The concessions were awarded by a government committee without competitive bidding. The auditor said it was not clear from the minutes of the committee's meetings how it arrived at decisions on coalfields that could be worth billions of dollars.

The BJP has all but paralysed parliament for two weeks, using the report to blacken the government, which has been buffeted by corruption scandals, most notably a $39 billion telecoms licences scam that saw a former minister arrested.

BJP WANTS TO KEEP CORRUPTION CENTRE-STAGE

Crowding around the speaker's seat in parliament, BJP members chanted "prime minister submit your resignation". Amid the din, the Congress party and its allies managed to pass three bills.

The BJP, which has struggled to capitalise on infighting within the Congress-led coalition, wants to keep alive an issue it believes resonates strongly with voters, political commentator Vinod Mehta said.

"They feel it is striking a chord. They are trying to keep the corruption issue at the centre of political discourse."

Singh has denied any wrongdoing and pointed out that it was his government that proposed competitive bidding, but the softly spoken prime minister's rebuttal has been overshadowed by daily images of parliamentary chaos on cable television news channels.

It has been left to Congress leader Sonia Gandhi, who normally keeps a low profile, to take the fight to the opposition. She has surprised observers with her unusually aggressive response to the BJP's corruption charges.

With the monsoon session of parliament due to end on Friday, there was no sign of an end to the deadlock.

The BJP has signalled that it might be willing to drop its demand for Singh to quit if the government cancels coal licenses and agrees to an independent inquiry. But the government has dismissed the demand, saying a Central Bureau of Investigation probe was already under way.

(Editing by John Chalmers and Robert Birsel)


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China's biggest search engine Baidu enters mobile browser fight

Baidu's website is seen on a laptop screen in this photo illustration taken in Shanghai December 15, 2010. REUTERS/Carlos Barria/Files

Baidu's website is seen on a laptop screen in this photo illustration taken in Shanghai December 15, 2010.

Credit: Reuters/Carlos Barria/Files

BEIJING | Mon Sep 3, 2012 3:21pm IST

BEIJING (Reuters) - China's dominant search engine Baidu Inc (BIDU.O) rolled out a mobile browser on Monday to help secure its share in a mobile Internet market that surpasses the U.S. population in size and to fend off smaller rivals such as Qihoo 360 Technology Co.

In China, the number of users who access the Internet from mobile phones has risen to 388 million, according to a government report in July, outstripping the number of users who access it from a desktop computer for the first time.

The Baidu Mobile Browser, which will compete with UCWeb Inc's UC Browser, Google Inc's (GOOG.O) Chrome and default Android browser, and Apple Inc's (AAPL.O) Safari, is about 20 percent faster than its rivals based on internal tests, Li Mingyuan, Baidu's general manager of mobile and cloud computing, told reporters on Friday at a pre-launch briefing.

Baidu's mobile browser also allows users to access a plethora of web-based mobile applications (apps) and run high-definition video through the browser without having to download apps or supporting software.

The browser, together with Baidu's other mobile products such as its mobile operating system and cheap smartphones launched with partners, forms the core of what Baidu hopes will eventually become a source of revenue.

"Monetizing mobile is hugely important for Baidu," said Michael Clendenin, managing director of RedTech Advisors, who added that the drive to monetize would be a medium-term concern for Baidu as its advertising clients still need to create mobile-friendly websites.

The shift to mobile could pose problems for Baidu if it can't find a way to make money from search traffic. Baidu currently makes the bulk of its revenue from users searching from laptops and desktops.

Baidu's goal is for 80 percent of China's Android handsets to have downloaded the Baidu Mobile Browser by the end of 2012, Li said.

The Baidu Mobile Browser also comes as Baidu is fending off threats on its home turf. Anti-virus software firm Qihoo 360 Technology's (QIHU.N) entry last month into search caused Baidu's shares to tumble 17 percent to date.

Baidu is also moving into cloud computing, a term used to describe data storage or processing on the Web.

Chief Financial Officer Jennifer Li said on Monday the firm will invest more than 10 billion yuan to set up its cloud computing centre.

(Reporting by Melanie Lee; Editing by Kazunori Takada and Ryan Woo)


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Wednesday, September 5, 2012

France to award Paul McCartney Legion of Honour

Former Beatle Paul McCartney at the Olympic Stadium August 4, 2012. REUTERS/Kai Pfaffenbach/Files

Former Beatle Paul McCartney at the Olympic Stadium August 4, 2012.

Credit: Reuters/Kai Pfaffenbach/Files

PARIS | Mon Sep 3, 2012 11:45pm IST

PARIS (Reuters) - French President Francois Hollande is scheduled to decorate former Beatle Paul McCartney with a Legion of Honour award, the president's office told Reuters on Monday.

In the ceremony scheduled for September 8, McCartney will be made an officer of the Legion of Honour, France's highest public distinction which has been awarded to the likes of actor Clint Eastwood and singer Liza Minnelli.

No one at McCartney's office was available for comment.

Created by Napoleon Bonaparte in 1802, and symbolised by a red lapel thread, the Legion of Honour has three grades, Chevalier, Officer and Commander.

The honour carries social status but no money, and recipients have to buy their own medal from a licensed jeweller, with prices ranging from 169 euros to 700 euros for the highest rank.

McCartney, 70, is the most influential songwriter in the history of popular music. He has already been awarded a knighthood by Britain's Queen Elizabeth, whom he recently serenaded along with tens of thousands of spectators at the opening ceremony of the 2012 Olympic Games in London.

He first rose to international fame with The Beatles, co-authoring songs such as "Yesterday" and "Hard Day's Night" alongside bandmate John Lennon, then went on to forge a solo career, forming the band Wings with his first wife Linda.

He and Ringo Starr are the only remaining members of The Beatles.

(Reporting By Vicky Buffery and Elizabeth Pineau, editing by Paul Casciato)


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