Stocks surge after last-minute budget deal reached

Stocks are opening sharply higher on Wall Street after lawmakers averted sweeping cuts in government spending and with a last-minute budget deal.
The Dow Jones industrial average jumped 232 points to 13,336 shortly after the opening bell Tuesday, the first trading day of 2013. That's a gain of 1.8 percent.
The Standard & Poor's 500 index shot up 29 points, or 2 percent, to 1,455. The Nasdaq composite rose 82 points, or 2.7 percent, to 3,102.
Investors have been keeping a close eye on the budget stalemate in Washington and were relieved that a deal was reached. However the late-night budget agreement leaves many issues unresolved and it remained unclear how long the market rally would last. Next up is a fight over the government's borrowing limit.

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'Fiscal cliff' deal sends markets shooting higher

 The "fiscal cliff" compromise, for all its chaos and controversy, was enough to send the stock market shooting higher Wednesday, the first trading day of the new year.
All the major U.S. stock indexes swelled by at least 2 percent. For the Dow Jones industrial average, up 263 points soon after the market opened, it was the biggest surge in six months.
Stocks around the world also leapt higher. The major indexes in Britain, France and Germany rose more than 2 percent, and Greece and Spain were up by more than 3 percent. Stocks in Asia also surged.
In the U.S., the rally was extraordinarily broad. For every stock that fell on the New York Stock Exchange, roughly 18 rose.
The Dow was up 263 at 13,369 after the first 45 minutes of trading. The S&P 500 was up 30 to 1,456. The Nasdaq composite was up 82 to 3,102.
The yield on the 10-year Treasury note rose sharply, to 1.84 percent from 1.75 percent, as investors dumped safe harbor investments like U.S. government bonds and plowed money into stocks. The dollar fell against the euro and prices for oil and other commodities rose.
Late Tuesday night the U.S. House of Representatives passed a budget bill meant to ward off the "fiscal cliff." Many House Republicans balked at voting for the bill because they wanted a deal that did more to cut government spending.
Because lawmakers didn't have a budget compromise in place when the new year started on Tuesday, the U.S. technically did go over the "fiscal cliff," meaning tax increases and government spending cuts automatically kicked in that day. Some analysts worried that the combination would kick the U.S. back into recession. But the bill passed Tuesday night by the House will prevent the "cliff" from taking hold. It already has Senate approval, and now awaits a signature from President Barack Obama.
Some investors, even as they watched the stock market leap higher, cautioned that the euphoria could be short-lived. The deal leaves a host of questions unresolved. Notably, the core issue of the "fiscal cliff" standoff in Washington has been the country's long-term plan for trimming its debt, and the deal doesn't include any significant deficit-cutting agreement.
Next up is what could turn into a vicious fight over the debt ceiling, or how much the government is allowed to borrow. And the U.S. could still get its debt rating downgraded by one of the ratings agencies. The stock market plunged in August 2011 after Standard & Poor's cut the U.S. government's credit rating.
Some investors also noted that the "fiscal cliff," which has dominated headlines for weeks, is only masking serious problems punctuating the world economy, including the still-unsolved European debt crisis and middling growth for the U.S. economy. Wednesday, the president of debt-wracked Cyprus said he'd refuse to sell government-owned companies, a provision that the country's bailout deal says it must at least consider.
Among stocks making big moves, Zipcar shot up 48 percent, or $3.96, to $12.20 after the company said it had agreed to be acquired by Avis. Avis rose $1.16 to $20.98. Zipcar has a business model that's popular with drivers, allowing them to rent cars for just a few hours at a time. The company has struggled to win over investors, however, and its stock plunged nearly 39 percent in 2012. Avis rose 84 percent in the same period.

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Nigerian stocks continue gains, up 1.5 pct on banks

LAGOS (Reuters) - Nigerian stocks rose 1.5 percent on Wednesday in thin trade, led by heavy weight banks, adding to optimism that a surge in share prices last year will continue into 2013.
The index of Nigeria's top-10 banks on Wednesday gained 3.5 percent to help lift the all-share index up 424 points to 28,502 points by 1404 GMT.
Sub-Saharan Africa's second biggest index crossed a 28,000 point psychological level on Monday, hitting a 32-month high to close as the second best performing African stock market after Uganda, rising 35.5 percent in 2012.
Nigerian stocks recovered last year after falling 16 percent in 2011 but the market is still less than half the value it was prior to the 2008 collapse, which wiped off 60 percent of stock values and coincided with a banking crisis.
The index rose 70 percent in 2007.
Skye Bank rose the maximum 10 percent allowed for stock eligible for market-making on Wednesday, while Diamond Bank and FCMB each rose over 9 percent.

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UN says more than 60,000 dead in Syrian civil war

The United Nations gave a grim new count Wednesday of the human cost of Syria's civil war, saying the death toll has exceeded 60,000 in 21 months — far higher than recent estimates by anti-regime activists.
The day's events illustrated the escalating violence that has made recent months the deadliest of the conflict: As rebels pressed a strategy of attacking airports and pushing the fight closer to President Bashar Assad's stronghold in Damascus, the government responded with deadly airstrikes on restive areas around the capital.
A missile from a fighter jet hit a gas station in the suburb of Mleiha, killing or wounding dozens of people who were trapped in burning piles of debris, activists said.
Gruesome online video showed incinerated victims — one still sitting astride a motorcycle — or bodies torn apart.
"He's burning! The guy is burning!" an off-camera voice screamed in one video over a flaming corpse.
It was unclear if the government had a military strategy for attacking the gas station. At least one of the wounded wore a military-style vest often used by rebel fighters. Human rights groups and anti-regime activists say Assad's forces often make little effort to avoid civilian casualties when bombing rebel areas.
Syria's conflict began in March 2011 with protests calling for political change but has evolved into a full-scale civil war.
As the rebels have grown more organized and effective, seizing territory in the north and establishing footholds around Damascus, the government has stepped up its use of airpower, launching daily airstrikes. The escalating violence has sent the death toll soaring.
The U.N.'s new count of more than 60,000 deaths since the start of the conflict is a third higher than recent estimates by anti-regime activists. One group, the Britain-based Syrian Observatory for Human Rights, says more than 45,000 people have been killed. Other groups have given similar tolls.
"The number of casualties is much higher than we expected, and is truly shocking," U.N. High Commissioner for Human Rights Navi Pillay said in a statement.
She criticized the government for inflaming the conflict by cracking down on peaceful protests and said rebel groups, too, have killed unjustifiably. Acts by both sides could be considered war crimes, she said.
She also faulted world powers for not finding a way to stop the violence.
"The failure of the international community, in particular the Security Council, to take concrete actions to stop the bloodletting shames us all," Pillay said. "Collectively, we have fiddled at the edges while Syria burns."
The U.S. and many European and Arab nations have demanded that Assad step down, while Russia, China and Iran have criticized calls for regime change.
The new death toll was compiled by independent experts commissioned by the U.N. human rights office who compared 147,349 killings reported by seven different sources, including the Syrian government.
After removing duplicates, they had a list of 59,648 individuals killed between the start of the uprising on March 15, 2011, and Nov. 30, 2012. In each case, the victim's first and last name and the date and location of death were known. Killings in December pushed the number past 60,000, she said.
The total death toll is likely to be even higher because incomplete reports were excluded, and some killing may not have been documented at all.
"There are many names not on the list for people who were quietly shot in the woods," Pillay's spokesman Rupert Colville told The Associated Press.
The data did not distinguish among soldiers, rebels or civilians.
It indicated that the pace of killing has accelerated. Monthly death tolls in summer 2011 were around 1,000. A year later, they had reached about 5,000 per month.
Most of the killings were in the province of Homs, followed by the Damascus suburbs, Idlib, Aleppo, Daraa and Hama. At least three-fourths of the victims were male.
Pillay warned that thousands more could die or be injured, and she said the danger could continue even after the war.
"We must not compound the existing disaster by failing to prepare for the inevitable — and very dangerous — instability that will occur when the conflict ends," she said.
The U.N. refugee agency said about 84,000 people fled Syria in December alone, bringing the total number of refugees to about a half-million. Many more are displaced inside Syria.
While no one expects the war to end soon, international sanctions and rebel advances are eroding Assad's power. Rebels recently have targeted two pillars of his strength: his control of the skies and his grip on Damascus.
Rebels in northern Syria attacked a government helicopter base near the village of Taftanaz in Idlib province, activists said. Videos posted online showed them blasting targets inside the airport with heavy machine guns mounted on trucks.
All videos appeared genuine and corresponded with other AP reporting on the events.
In recent weeks, rebels have attacked three other airports in north Syria. They clashed Wednesday with forces inside the Mannagh military airport near the Turkish border as well as near the Aleppo international airport and adjacent Nerab military airport, halting air traffic there for the second straight day.
The fall of those airports to the rebels would embarrass the regime but not fully stop the airstrikes by government jets, many of which come from bases farther south.
In another blow to the regime and to Syria's economy, a company based in the Philippines that handled shipping containers at Syria's largest port said it was canceling its contract, citing an "untenable, hostile and dangerous business environment."
The Manila-based International Container Terminal Services Inc. said the amount of port traffic had gone down, hurting business, while conditions in Syria grew more dangerous.
The company's departure will significantly limit cargo services at the Tartus port.
Also, Wednesday, the family of American journalist James Foley revealed that he has been missing in Syria for more than a month. Foley was providing video for Agence France-Press when he was abducted Nov. 22 by unknown gunmen, his family said in a statement.
"His captors, whoever they may be, must release him immediately," said AFP chairman Emmanuel Hoog.
Covering Syria has been a challenge for journalists. The government rarely gives visas to journalists, prompting some to sneak in with the rebels, often at great danger.

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Nominee to be Libyan foreign minister turns down the job

TRIPOLI (Reuters) - The man proposed as Libya's foreign minister has rejected the post despite being cleared by an Integrity Commission which was asked to examine his ties to deposed leader Muammar Gaddafi.
Ali Aujali, Libya's former ambassador to the United States was among eight of the 27 ministers nominated by Prime Minister Ali Zeidan who were referred to the commission, which studies the backgrounds of public officials, after protests outside congress over the makeup of his cabinet.
Congress elected Zeidan prime minister in October after his predecessor lost a confidence vote over his choice of ministers - highlighting the fractious politics in a country previously run with an eccentric system of personal rule.
The eight ministers were invited to appeal their cases, and Aujali won his, according to a statement on the Facebook page of the Integrity Commission.
But in a letter of resignation to the head of parliament obtained by Reuters on Wednesday, Aujali simply said he did not want to take up the position of foreign minister even though he was now cleared to do so.
"It is an honor to be appointed to this position, but for objective and personal reasons, I have informed the prime minister that I must turn down this position at this time," the letter, dated December 30, read.
He did not elaborate and was not available for comment.
Aujali was Libya's ambassador to the United States during the war that toppled Gaddafi in August 2011. A telegram presented to the commission as part of his appeal showed he had defected on March 22, a month after the uprising began.

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Egypt panel implicates Mubarak, military in deaths

CAIRO (AP) — An Egyptian fact-finding mission determined that Hosni Mubarak watched the uprising against him unfold through a live TV feed at his palace, despite his later denial that he knew the extent of the protests and crackdown against them, a member of the mission said Wednesday.
The mission's findings increase pressure for a retrial of the 84-year old ousted president, who is already serving a life sentence for the deaths of 900 protesters. But its report could hold both political gains and dangers for his successor, Mohammed Morsi. A new prosecution of Mubarak would be popular, since many Egyptians were angered that he was convicted only for failing to stop the killing of protesters, rather than for ordering the crackdown.
But the report also implicates the military and security officials in protester deaths. Any move to prosecute them could spark a backlash from powerful generals and others who still hold positions under Morsi's government.
Rights activists said they would watch carefully how aggressively Morsi pursues the evidence, detailed by a fact-finding mission he commissioned.
"This report should be part of the democratic transformation of Egypt and restructuring of security agencies," Ahmed Ragheb, a member of the commission and a rights lawyer, told The Associated Press. "At the end of the day, there will be no national reconciliation without revealing the truth, and ensuring accountability."
Morsi, an Islamist from the Muslim Brotherhood, asked the commission to send the report to the chief prosecutor Talaat Abdullah to investigate new evidence, his office said Wednesday.
Morsi recently appointed Abdullah to replace a Mubarak holdover who many considered an obstacle to strongly prosecuting former regime officials. Some judges criticized the appointment as a political move to continue to wield leverage over the prosecutor post.
The case will be a test whether Abdullah will conduct a thorough process of holding officials responsible. Some rights activists were already disappointed that Morsi didn't empower the fact-finding commission itself to turn the investigations into prosecutions and avoid political influence.
The 700-page report on protester deaths the past two years was submitted Wednesday to Morsi by the commission, made up of judges, rights lawyers, and representatives from the Interior Ministry and the intelligence, as well as families of victims.
Morsi formed the commission soon after coming to office in June as Egypt's first freely elected president after campaign promises to order retrials of former regime figures if new evidence was revealed.
The trial of Mubarak and other figures from his regime left the public deeply unconvinced justice was done. The prosecution was limited in scope, focusing only on the first few days of the 18-day uprising and on two narrow corruption cases. Lawyers have since criticized the case as shoddy, based mainly on evidence collected by battered and widely hated police in the days following the uprising.
In the verdicts last summer, Mubarak and his two sons were acquitted on corruption charges. His former interior minister was convicted and sentenced to life in prison for complicity in the crackdown, while six top security aides were acquitted for lack of evidence.
Mubarak was convicted to a life sentence of failing to prevent the deaths of protesters during the uprising, which ended with his fall on Feb. 11, 2011. Many Egyptians believed he should have been held responsible for ordering the killings, in addition to widespread corruption, police abuse and political wrongdoing under his regime.
One key new finding by the commission was that Mubarak closely monitored the crackdown.
Ragheb said state TV had designated an encrypted satellite TV station that fed live material from cameras installed in and around Tahrir Square directly to Mubarak's palace throughout clashes between protesters and security forces.
"Mubarak knew of all the crimes that took place directly. The images were carried to him live, and he didn't even need security reports," said Ragheb. "This entails a legal responsibility" in the violence against the protesters, including the infamous Camel Battle, where men on horses and camel and other Mubarak supporters stormed Tahrir.
At least 11 people are said to have been killed in that attack, and some 25 former ruling party members tried in the case were acquitted.
In questioning for his trial, Mubarak said he was kept in the dark by top aides as to the gravity of the situation, and fended off charges that he ordered or knew of the deadly force.
Khaled Abu Bakr, another lawyer who represented some of the victims in the uprising, said a retrial could "add more jail time if new charges appeared, and it could also change the penalty from life sentence to the death penalty."
More politically explosive is the commission's look at the 17 months of military rule after Mubarak's fall, when activists protesting the generals' conduct of the transition clashed repeated with security forces in violence that killed at least 100 protesters.
The report clearly established that security officials and the military used live ammunition against protesters during the transition and the anti-Mubarak uprising, Ragheb said.
The military repeatedly denied firing live ammunition, despite several protesters killed by bullets and pellets and despite reports by rights groups holding the army responsible.
The report established that at least one of nearly 70 missing since the uprising was tortured and died in a military prison, said Ragheb. It also details abuse by military and security officers in the days following Mubarak's ouster, including the beating and abusing of women protesters and the conducting of "virginity tests" to intimidate and humiliate them.
Ragheb refused to give further specifics. The report was not made public. But he told Al-Masry Al-Youm daily thatit recommends summoning hundreds for questioning in protester killings.
Several rights activists raised concerns that findings implicating any military officials or security figures in the current Interior Ministry will be ignored.
"There is every reason for Morsi and the prosecutor general he appointed to act on the findings and make sure they are translated into prompt prosecution," said Hossam Bahgat, a human rights lawyer from the Egyptian Initiative for Personal Rights.
"It will be a major embarrassment not to do anything," he said, adding that it would also be "clear evidence" of what many believe to be an agreement by Morsi to grant immunity to military leaders for any alleged crimes during their rule.
Morsi appointed the latest commission at a time when his relations with the generals were rough. Just before officially transferring rule to Morsi, the military had issued a decree stripping the presidency of most of its powers.
After barely a month in office, Morsi pushed out the top generals who ruled during the transition and reclaimed his powers. His move brought no protest from the military, which many took as a sign of a backroom deal.
Gamal Eid, a lawyer who has represented protester families, pointed out that prosecutors and the court ignored a previous fact-finding mission that established evidence that could have been more incriminating.
Heba Morayef, a researcher with Human Rights Watch in Egypt, said a "protect the revolution" law recently issued by Morsi providing for new investigations into protester killings made no mention of the commission, meaning its findings were not binding and could be ignored.
"It is a wasted opportunity," she said. "Without a clear implementing mechanism, you leave room for political compromise at the expense of accountability.

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Venezuela opposition: Chavez secrecy feeds rumors

CARACAS, Venezuela (AP) — Venezuela's opposition demanded that the government reveal specifics of President Hugo Chavez's condition Wednesday, criticizing secrecy surrounding the ailing leader's health more than three weeks after his cancer surgery in Cuba.
Opposition coalition leader Ramon Guillermo Aveledo said at a news conference that the information provided by government officials "continues to be insufficient."
Chavez has not been seen or heard from since the Dec. 11 operation, and Vice President Nicolas Maduro on Tuesday said the president's condition remained "delicate" due to complications from a respiratory infection.
Maduro also urged Venezuelans to ignore rumors about Chavez's condition.
Aveledo said the opposition has been respectful during Chavez's illness, arguing that "the secrecy is the source of the rumors."
"They should tell the truth," Aveledo said, noting that Maduro had pledged to provide full reports about Chavez's condition. He reiterated the opposition's call for the government to release a medical report and said all indications are that Chavez won't be able to be sworn in to begin a new term Jan. 10.
If Chavez can't take office on that date, Aveledo said the constitution is clear that the National Assembly president should then take over temporarily until a new election is held. He said what happens next in Venezuela should be guided by "the truth and the constitution."
If Chavez dies or is unable to continue in office, the Venezuelan Constitution says a new election should be held within 30 days.
With rumors swirling that Chavez had taken a turn for the worse, Maduro said on Tuesday that he had met with the president twice, had spoken with him and would return to Caracas on Wednesday.
"He's totally conscious of the complexity of his post-operative state and he expressly asked us ... to keep the nation informed always, always with the truth, as hard as it may be in certain circumstances," Maduro said in the prerecorded interview in Havana, which was broadcast Tuesday night by the Caracas-based television network Telesur.
Both supporters and opponents of Chavez have been on edge in the past week amid shifting signals from the government about the president's health. Officials have reported a series of ups and downs in his recovery — the most recent, on Sunday, announcing that he faced the new complications from a respiratory infection.
Maduro did not provide any new details about Chavez's complications during Tuesday's interview. But he joined other Chavez allies in urging Venezuelans to ignore gossip, saying rumors were being spread due to "the hatred of the enemies of Venezuela."
He didn't refer to any rumors in particular, though one circulating online had described Chavez as being in a coma.
Maduro said Chavez faces "a complex and delicate situation." But Maduro also said that when he talked with the president and looked at his face, he seemed to have "the same strength as always."
"All the time we've been hoping for his positive evolution. Sometimes he has had light improvements, sometimes stationary situations," he said.
Maduro's remarks about the president came at the end of an interview in which he praised Cuba's government effusively and touched on what he called the long-term strength of Chavez's socialist Bolivarian Revolution movement. He mentioned that former Cuban President Fidel Castro had visited the hospital where Chavez was treated.
In Washington, the U.S. State Department said procedures under the Venezuelan Constitution should be followed if Chavez is no longer able to carry out his duties as president.
"We want to see any transition take place in a manner that is consistent with the Venezuelan Constitution, that any election be fully transparent, democratic, free and fair," State Department spokeswoman Victoria Nuland told reporters on Wednesday.
Asked if Chavez being out of the picture would make it easier to improve long-strained ties between Venezuela and the U.S., Nuland said, "Obviously we will judge our ability to improve our relationship with Venezuela based on steps they are able to take."
The U.S. Embassy in Caracas has been without an ambassador since July 2010. Chavez rejected the U.S. nominee for ambassador, accusing him of making disrespectful remarks about Venezuela's government. That led Washington to revoke the visa of the Venezuelan ambassador.
But recently U.S. and Venezuelan diplomats began high-level conversations aimed at improving relations, a U.S. government official said. The official spoke on condition of anonymity because he wasn't authorized to speak publicly about the matter.
The official confirmed recent reports that Roberta Jacobson, assistant secretary of state for Western Hemisphere affairs, spoke by telephone with Maduro in November and discussed ways of improving relations. He also confirmed that U.S. diplomat Kevin Whitaker had a subsequent conversation with Roy Chaderton, Venezuela's ambassador to the Organization of American States.
Venezuelan diplomats could not be reached to comment about those recent contacts with U.S. officials.
In Bolivia, meanwhile, President Evo Morales said he is concerned about his friend and ally.
"I hope we can see him soon," Morales said at a news conference Wednesday. "But it's a very worrying situation."
"I've tried to make contact with the vice president, and it's been difficult. I hope all of their aims are achieved to save President Chavez's life."
Before his operation, Chavez acknowledged he faced risks and designated Maduro as his successor, telling supporters they should vote for the vice president if a new presidential election was necessary.
Maduro didn't discuss the upcoming inauguration plans, saying only that he is hopeful Chavez will improve.
"Someone asked me yesterday by text message: How is the president? And I said, 'With giant strength,'" Maduro said. He recalled taking Chavez by the hand: "He squeezed me with gigantic strength as we talked.

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