Putin signs ban on U.S. adoptions of Russian children










MOSCOW (Reuters) - President Vladimir Putin signed a law on Friday that bans Americans from adopting Russian children and imposes other sanctions in retaliation for a new U.S. human rights law that he says is poisoning relations.

Washington has called the new Russian law misguided, saying it ties the fate of children to "unrelated political considerations", and analysts say it is likely to deepen a chill in U.S.-Russia relations and harm Putin's image abroad.






Fifty-two children whose adoptions by American parents were underway will now remain in Russia, the Interfax news agency cited Russia's child rights commissioner, Pavel Astakhov, as saying.

The new law, which has also ignited outrage among Russian liberals and child rights' advocates, takes effect on January 1.

The legislation, whose text was issued by the Kremlin, will also outlaw some non-governmental organizations that receive U.S. funding and impose a visa ban and asset freeze on Americans accused of violating the rights of Russians abroad.

Pro-Kremlin lawmakers initially drafted the bill to mirror the U.S. Magnitsky Act, which bars entry to Russians accused of involvement in the death in custody of anti-corruption lawyer Sergei Magnitsky and other alleged rights abuses.

The restrictions on adoptions and non-profit groups were added to the legislation later, going beyond a tit-for-tat move and escalating a dispute with Washington at a time when ties are already strained by issues such as the Syrian crisis.

The adoption ban may further tarnish Putin's international standing at a time when the former KGB officer is under scrutiny over what critics say is a crackdown on dissent since he returned to the Kremlin for a third term in May.

"The law will lead to a sharp drop in the reputation of the Kremlin and of Putin personally abroad, and signal a new phase in relations between the United States and Russia," said Lilia Shevtsova, an expert on Putin with the Carnegie Moscow Centre.

"It is only the first harbinger of a chill."

Putin's spokesman, Dmitry Peskov, said the Magnitsky Act - the U.S. bill which prompted the new Russian law - had "seriously undermined" the "reset", the moniker for the effort U.S. President Barack Obama launched early in his first term to improve relations between the former Cold War foes.

Putin has backed the hawkish response with a mixture of public appeals to patriotism, saying Russia should care for its own children, and with belligerent denunciations of what he says is the U.S. desire to impose its will on the world.

SHARP CRITICISM

Seeking to dampen criticism of the move, Putin also signed a decree ordering an improvement in care for orphans.

Critics of the Russian legislation say Putin has held the welfare of children trapped in a crowded and troubled orphanage system hostage to political maneuvering.

"He signed it after all! He signed one of the most shameful laws in Russian history," a blogger named Yuri Pronko wrote on the popular Russian site LiveJournal.

A hashtag that translates as "Putin eats children" was being widely used on Twitter in Russia on Friday, and pro-Kremlin microbloggers hit back with: "Putin supported orphans".

Russian authorities say the deaths of 19 Russian-born children adopted by American parents in the past decade were one of the main motives for the law as well as what they perceive as the overly lenient treatment of those parents by U.S. courts and law enforcement agencies.

However, critics of the bill say Russian orphanages are woefully overcrowded and that adoptions by Russian families remain modest, with some 7,400 adoptions in 2011 compared with 3,400 adoptions of Russian children by families abroad.

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Syria opposition leader rejects Moscow invitation


ALEPPO PROVINCE, Syria/BEIRUT (Reuters) - Syria's opposition leader has rejected an invitation from Russia for peace talks, dealing another blow to international hopes that diplomacy can be resurrected to end a 21-month civil war.


Russia, President Bashar al-Assad's main international protector, said on Friday it had sent an invitation for a visit to Moaz Alkhatib, whose six-week-old National Coalition opposition group has been recognized by most Western and Arab states as the legitimate voice of the Syrian people.


But in an interview on Al Jazeera television, Alkhatib said he had already ruled out such a trip and wanted an apology from Moscow for its support for Assad.


"We have clearly said we will not go to Moscow. We could meet in an Arab country if there was a clear agenda," he said.


"Now we also want an apology from (Russian Foreign Minister Sergei) Lavrov because all this time he said that the people will decide their destiny, without foreign intervention. Russia is intervening and meanwhile all these massacres of the Syrian people have happened, treated as if they were a picnic."


"If we don't represent the Syrian people, why do they invite us?" Alkhatib said. "And if we do represent the Syrian people why doesn't Russia respond and issue a clear condemnation of the barbarity of the regime and make a clear call for Assad to step down? This is the basic condition for any negotiations."


With the rebels advancing steadily over the second half of 2012, diplomats have been searching for months for signs that Moscow's willingness to protect Assad is faltering.


So far Russia has stuck to its position that rebels must negotiate with Assad's government, which has ruled since his father seized power in a coup 42 years ago.


"I think a realistic and detailed assessment of the situation inside Syria will prompt reasonable opposition members to seek ways to start a political dialogue," Lavrov said on Friday.


That was immediately dismissed by the opposition: "The coalition is ready for political talks with anyone ... but it will not negotiate with the Assad regime," spokesman Walid al-Bunni told Reuters. "Everything can happen after the Assad regime and all its foundations have gone. After that we can sit down with all Syrians to set out the future."


BRAHIMI TO MOSCOW


Russia says it is behind the efforts of U.N. mediator Lakhdar Brahimi, fresh from a five-day trip to Damascus where he met Assad. Brahimi, due in Moscow for talks on Saturday, is touting a months-old peace plan for a transitional government.


That U.N. plan was long seen as a dead letter, foundering from the outset over the question of whether the transitional body would include Assad or his allies. Brahimi's predecessor, Kofi Annan, quit in frustration shortly after negotiating it.


But with rebels having seized control of large sections of the country in recent months, Russia and the United States have been working with Brahimi to resurrect the plan as the only internationally recognized diplomatic negotiating track.


Russia's Middle East envoy, Deputy Foreign Minister Mikhail Bogdanov, who announced the invitation to Alkhatib, said further talks were scheduled between the "three B's" - himself, Brahimi and U.S. Undersecretary of State William Burns.


Speaking in Damascus on Thursday, Brahimi called for a transitional government with "all the powers of the state", a phrase interpreted by the opposition as potentially signaling tolerance of Assad remaining in some ceremonial role.


But such a plan is anathema to the surging rebels, who now believe they can drive Assad out with a military victory, despite long being outgunned by his forces.


"We do not agree at all with Brahimi's initiative. We do not agree with anything Brahimi says," Colonel Abdel-Jabbar Oqaidi, who heads the rebels' military council in Aleppo province, told reporters at his headquarters there.


Oqaidi said the rebels want Assad and his allies tried in Syria for crimes. Assad himself says he will stay on and fight to the death if necessary.


In the rebel-held town of Kafranbel, demonstrators held up cartoons showing Brahimi speaking to a news conference with toilet bowls in front of him, in place of microphones. Banners denounced the U.N. envoy with obscenities in English.


DIPLOMATS IMPOTENT


Diplomacy has largely been irrelevant to the conflict so far, with Western states ruling out military intervention like the NATO bombing that helped topple Libya's Muammar Gaddafi last year, and Russia and China blocking U.N. action against Assad.


Meanwhile, the fighting has grown fiercer and more sectarian, with rebels mainly from the Sunni Muslim majority battling Assad's government and allied militia dominated by his Alawite sect, an offshoot of Shi'ite Islam.


Still, Western diplomats have repeatedly touted signs of a change in policy from Russia, which they hope could prove decisive, much as Moscow's withdrawal of support for Serbian leader Slobodan Milosevic heralded his downfall a decade ago.


Bogdanov said earlier this month that Assad's forces were losing ground and rebels might win the war, but Russia has since rowed back, with Lavrov last week reiterating Moscow's position that neither side could win through force.


Still, some Moscow-based analysts see the Kremlin coming to accept it must adapt to the possibility of rebel victory.


"As the situation changes on the battlefield, more incentives emerge for seeking a way to stop the military action and move to a phase of political regulation," said Dmitry Trenin, director of the Carnegie Moscow Center.


Meanwhile, on the ground the bloodshed that has killed some 44,000 people continues unabated. According to the pro-opposition Syrian Observatory for Human Rights, a monitoring group based in Britain, 150 people were killed on Thursday, a typical toll as fighting has escalated in recent months.


Government war planes bombarded the town of Assal al-Ward in the Qalamoun district of Damascus province for the first time, killing one person and wounding dozens, the observatory said.


In Aleppo, Syria's northern commercial hub, clashes took place between rebel fighters and army forces around an air force intelligence building in the Zahra quarter, a neighborhood that has been surrounded by rebels for weeks.


(Additional reporting by Omar Fahmy in Cairo, Dominic Evans in Beirut and Steve Gutterman and Alissa de Carbonnel in Moscow; Writing by Peter Graff; Editing by Giles Elgood)



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Wall Street falls as senator sees "fiscal cliff" fall

To a black ESPN sports analyst, this is the critical question: Is Robert Griffin III, aka RG III, the black rookie sensation Washington Redskins quarterback, "a brother, or is he a cornball brother?" What has RG III done or said to raise a suspicion about his bona fides as a black person? More importantly, what does this have to do with appreciating — or choosing not to appreciate — Griffin as an athlete?
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McElroy has concussion, Sanchez to start for Jets


FLORHAM PARK, N.J. (AP) — Greg McElroy has a concussion and will be replaced by Mark Sanchez as the New York Jets' starting quarterback in the season finale at Buffalo on Sunday.


Coach Rex Ryan says Thursday that McElroy, preparing to make his second NFL start in place of the benched Sanchez, was lifting weights and had headaches. He went to the team's training staff and then revealed he was suffering concussion-like symptoms after being sacked 11 times in the Jets' 27-17 loss to San Diego last Sunday.


Ryan says he chose to start Sanchez over Tim Tebow because the team has just two practices and a walkthrough to prepare before the game and he feels "more comfortable" with Sanchez. Sanchez was benched after turning the ball over five times at Tennessee on Dec. 17.


___


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


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How Not ‘Awesome’ Was Lisa Jackson at the EPA?






After almost four years of guiding controversial decisions on fracking, the Keystone XL pipeline, and coal, EPA Administrator Lisa Jackson is stepping down. Now, the hunt is on for a new director who won’t be able to please anyone.


RELATED: EPA Passes New Fracking Rules






Jackson—the EPA‘s first African American chief and a chemical engineer by training—wrote in a statement, “I will leave the EPA confident the ship is sailing in the right direction, and ready in my own life for new challenges, time with my family and new opportunities to make a difference.” President Obama said in a separate statement: 



Under her leadership, the EPA has taken sensible and important steps to protect the air we breathe and the water we drink, including implementing the first national standard for harmful mercury pollution, taking important action to combat climate change under the Clean Air Act and playing a key role in establishing historic fuel economy standards that will save the average American family thousands of dollars at the pump, while also slashing carbon pollution.



Congressional Republicans, however, won’t be sad to see her go. Caught between their hostility toward regulation and the Obama administration’s lack of emphasis on climate change, Jackson was unable to nix the Keystone XL oil pipeline, a planned route for bringing tar sand oil from Canada down to Texas. When confronted on the issue, Jackson simply said that holding conversations about the project is “awesome.” She also wasn’t able to get the EPA to take meaningful action on hydraulic fracturing, even after the agency found evidence that the practice contributes to groundwater pollution. 


RELATED: EPA Proposes First Fracking-Related Pollution Rules


Among her successes, Jackson can count a rule limiting mercury emissions in coal-fired plants and the doubling of fuel efficiency standards. It remains to be seen whether the EPA’s deputy administrator Robert Perciasepe—who looks prepped to take the reigns in the interim and potentially as full-time Administrator later on—can do any better. 


Green News Headlines – Yahoo! News





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A gunmaker ripe for an ethical takeover




Several .223 caliber rounds near a Bushmaster XM-15; the manufacturer's owner is putting its gun companies up for sale.




STORY HIGHLIGHTS


  • The owner of America's largest gunmaker is putting firm up for sale

  • John MacIntosh says billionaires should lead effort to acquire the gun manufacturer

  • He says they should change corporate practices to discourage violence

  • MacIntosh: One leading company could push gun industry in a more ethical direction




Editor's note: John MacIntosh was a partner at Warburg Pincus, a leading global private equity firm, where he worked from 1994 to 2006 in New York, Tokyo and London. He now runs a nonprofit in New York.


(CNN) -- In the 1970s and '80s, when corporate America was plagued with inefficiency, a new class of financially motivated takeover investor emerged to prey on the fattest in the corporate herd and scare the rest into line.


Today, as pockets of corporate America are plagued with immorality, we need a new class of socially motivated takeover investor to prey on the sociopaths in the corporate herd, turn them around and perhaps scare (or shame) others into line.



John MacIntosh

John MacIntosh



The upcoming sale by Cerberus Capital of the Freedom Group, the largest gun manufacturer in the United States, is a perfect opportunity to usher in this new era of muscular, socially responsible capitalism:


First, Michael Bloomberg, George Soros, David Geffen and the like should establish a nonprofit SPAC (Special-Purpose-Acquisition-Company) called BidForFreedom.org (BFF) with a mission to reduce needless deaths through gun violence in the United States and encourage the passage of sensible gun control regulations.



They should appoint George Clooney, Angelina Jolie and Matt Damon to the fundraising committee and recruit a loud-mouthed, poison-penned, but good-hearted activist hedge fund titan as chief investment officer (Bill Ackman? Dan Loeb?).


Opinion: Forgotten victims of gun violence


To be credible, BFF will probably need to start with at least $250 million in cash and commitments (no problem given the billionaire status of the sponsors) with additional firepower raised as needed from well-heeled individuals, foundations and through a broad-based Internet solicitation to an outraged-by-Newtown public.


Second, BFF should lobby all public pension funds that are part owners of the Freedom Group (by virtue of their investment in Cerberus) to roll their investment into BFF to reduce the need for outside funding, naming and shaming any unwilling public investors.


Newtown shooter's guns








Third, BFF should pay "whatever it takes" to acquire control of the Freedom Group in the upcoming auction by Cerberus (which has a fiduciary obligation to sell to the highest bidder) and then immediately implement a "moral turnaround" plan under which the Freedom Group:


(i) Appoints a high-profile CEO with impeccable credentials as a hunter and/or marksman who is nevertheless in favor of gun-control.


Opinion: Guns endanger more than they protect


(ii) Elects a new board of directors including representatives from the families of victims killed in Newtown (and/or other massacres perpetrated with Freedom Group weapons), military veterans and trauma surgeons with real experience of human-on-human gunfire, and law enforcement and mental health professionals.


(iii) Operates the business as if sensible gun laws were in place (this may turn out to be a wise investment in future-proofing the company): discontinuing sales of the most egregious assault weapons and modifying others as necessary so they cannot take huge-volume clips; offering to buy back all Freedom Group assault weapons in circulation; micro-stamping weapons for easy tracking; and providing price discounts for buyers willing to go through a background check and register in a database available to law enforcement.


(iv) Voluntarily waives its rights to support the NRA and other lobbying groups.


(v) Creates a fund to compensate those who, despite its best efforts, are killed or wounded by its weapons.


(vi) Agrees that if the effort to provide moral leadership in the weapons industry doesn't succeed within a year, BFF should consider corporate euthanasia, even though it entails a risk of allowing more retrograde manufacturers to fill the void in the market left by the then-deceased company.


Opinion: The case for gun rights is stronger than you think


In the face of horrors like Newtown, BFF would recognize that it's time to take a stand by acknowledging the impossibility of reaching closure after such a monstrous act while an unreconstructed Freedom Group continues to sell a huge volume of guns and ammunition rounds each year even if it is operating under new owners.


Like any Trojan Horse strategy, this is a long shot, but it must be tried. History suggests that only after the first company "turns" will an industry gradually return to the realm of the human (think of big tobacco). And without the tacit agreement, if not the outright support, of at least one important insider, policymakers seem utterly unable to pass tough regulations in the face of the predictable, but withering, assault by industry lackeys shrieking that any such regulation would be "impossible, impractical or too expensive."


In the face of a recalcitrant industry, we have to acknowledge that it is only the market for corporate control -- the real possibility that an outsider will take over one of the companies -- that puts limits on the behavior of board members and executives who, while perhaps decent enough in their family lives, display a limitless tolerance for the "banality of evil" at the office.


Opinion: Not man enough? Buy a gun


We must accept that the conventional, kid-gloves approach to socially responsible investing -- divesting shares in "bad" companies that nevertheless continue to exist -- is too weak an instrument to force change and its well-meaning practitioners too soft to enter the fray when emotionally and politically charged battles need to be fought.


And regardless of the viability of socially motivated takeovers in general, the Freedom Group looks like a great target. Cerberus is a motivated seller, the political macros look favorable, and it's a bite-sized company compared with many of the larger sociopaths in the corporate herd.


I'm even cautiously optimistic that the current impasse over gun regulation is a bad-equilibrium that few consumers actually want, and that a reconstructed Freedom Group, fighting for sensible change as a fifth column from within the industry, might well find that many people -- even a significant portion of the NRA's members -- would buy from a truly responsible (and high quality) gun maker if given the chance.


All in all, it's a pretty exciting deal, so if Mike and George are up for it, count me in.



Follow @CNNOpinion on Twitter


Join us at Facebook/CNNOpinion


The opinions expressed in this commentary are solely those of John MacIntosh.






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Sen. Reid warns U.S. poised to go over 'fiscal cliff'

Rana Foroohar, Time magazine's assistant managing editor for business news, talks to Rebecca Jarvis and Jeff Glor about what a drop off the "fiscal cliff" could mean to businesses and consumers.










WASHINGTON (Reuters) - The top Democrat in the Senate warned on Thursday that the United States looks to be headed over the "fiscal cliff" of tax hikes and spending cuts that will start next week if squabbling politicians do not reach a deal.

Majority Leader Harry Reid told the Senate in a speech that "it looks like that is where we're headed."






He called on the Republicans who control the House of Representatives to prevent the worst of the fiscal shock by getting behind a Senate bill to extend existing tax cuts for all except those households earning more than $250,000 a year.

With the House not in session and the clock ticking toward the scheduled January start of tax increases and deep, automatic government spending cuts, Reid offered little hope.

"I don't know time-wise how it can happen now," he said.

President Barack Obama arrived at Andrews Air Force Base outside Washington after a flight from Hawaii on Thursday on his way back to the White House to try to restart stalled negotiations with Congress.

Obama made phone calls to congressional leaders on Wednesday from his vacation in Hawaii to try to revive the stalled talks to prevent the "fiscal cliff" scenario, which would worry world financial markets and could push the United States back into recession.

U.S. stocks fell to session lows after Reid's pessimistic remarks.

In addition, consumer confidence fell to a four-month low in December as the budget crisis sapped what had been a growing sense of optimism about the economy, a report released on Thursday showed.

"People are hearing about (the cliff) and it negatively impacts confidence and investor sentiment and even holiday sales," said Todd Schoenberger, managing partner at Landcolt Capital in New York.

The chances of a last-minute deal - at least one that would prevent tax hikes - remained uncertain, with Republicans and Democrats each insisting the other side move first amid continuing partisan gridlock.

The Senate, controlled by Democrats, was scheduled to meet later on Thursday but on matters unrelated to the "fiscal cliff."

Speaker John Boehner and other House Republican leaders, who say they are willing to take up a "fiscal cliff" measure only after the Senate acts on one, were to hold a conference call with Republican House members on Thursday.

The expectation for the call was that lawmakers would be told to get back to Washington within 48 hours to consider anything the Senate might pass.

Weather permitting, that would bring them to Washington with perhaps three days left before the deadline for action. Storms affecting the Midwest, the South and the Northeast played havoc with airline schedules.

'NOT WILLING'

"This isn't a one party or one house problem. This is (that) leaders in both parties in all branches of the government are not willing to make the deal that they know they have to make. Everybody wants their stuff but doesn't want to give up what they don't want to give up," Republican U.S. Representative Steven LaTourette told CNN.

The House and Senate passed bills months ago reflecting their own sharply divergent positions on the expiring low tax rates, which went into effect during the administration of Republican former President George W. Bush.

Democrats want to allow the tax cuts to expire on the wealthiest Americans. Republicans want to extend the tax cuts for everyone.

Congress has proven that it can act swiftly once an agreement is reached. Hope persisted that Republicans and Democrats might come up with a resolution before New Year's Day that could at least postpone the impact of the tax hikes and spending cuts while further discussions take place.

That gives some hope to world markets.

"There is still hope for a last-minute deal, otherwise we're in for a correction in January. People have already priced in an agreement. Without it, the market can't stay at these levels," a Paris-based trader said.

Another battle is just over the horizon in late January or early February over raising the debt ceiling, which puts a limit on the amount of money the U.S. government can borrow to pay its debts and can be raised only with the approval of Congress.

Republican leaders have said they will insist on more budget cuts as a condition of raising the ceiling. Without any action, the U.S. Treasury said on Wednesday the government is set to reach its $16.4 trillion debt ceiling on December 31.

The Treasury Department is to begin "extraordinary measures" to buy time. Many analysts believe the government can stave the default date off into late February.

(Additional reporting by Doina Chiacu, Alina Selyukh and Richard Cowan; Writing by Alistair Bell; Editing by Will Dunham)

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Syria envoy calls for political change to end conflict


BEIRUT (Reuters) - The international envoy seeking a solution to Syria's 21-month-old conflict said on Thursday political change was needed to end the violence which has killed 44,000 people, and called for a transitional government to rule until elections.


Speaking in Damascus at the end of a five-day trip during which he met President Bashar al-Assad, Lakhdar Brahimi did not spell out detailed proposals but said that only substantial change would meet the demands of ordinary Syrians.


Russian Foreign Minister Sergei Lavrov added to the envoy's call for a peaceful solution when he told a senior Syrian diplomat that only a "broad inter-Syria dialogue and political process" could end the crisis.


Brahimi's push for a transitional government suggested he was trying to build on an international agreement in Geneva six months ago which said a provisional body - which might include members of Assad's government as well as the opposition - should lead the country into a new election.


But the mainly Sunni Muslim Syrian rebels have seized the military initiative since the Geneva meeting in June and the political opposition has ruled out any transitional government in which Assad, from Syria's Alawite minority, plays a role.


Rebel fighters resumed attacks on Thursday against the military base of Wadi Deif, which lies next to Syria's main north-south highway linking Aleppo with Damascus. Around the capital itself, Assad's forces have tried for weeks to dislodge rebels from suburbs which ring the east and south of the city.


"Certainly it was clear in Geneva, and it's even clearer now that the change which is needed is not cosmetic or superficial," Brahimi told a news conference in Damascus before leaving Syria.


"I believe the Syrian people need, want and aspire to genuine change and everyone knows what this means," he said.


"A government must be created ... with all the powers of the state," Brahimi added. He said it should hold power for a transitional period until elections - either for a new president or a new parliament - are held.


"This transitional process must not lead to the ... collapse of state institutions. All Syrians, and those who support them, must cooperate to preserve those institutions and strengthen them," he said.


Radwan Ziadeh of the opposition Syrian National Council dismissed Brahimi's proposal as "unrealistic and fanciful" and said a transitional government could not be built on the same "security and intelligence structure as the existing regime".


TOO SOON FOR COMPLETE PLAN


Russia's Lavrov met Syrian Deputy Foreign Minister Faisal Makdad in Moscow on Thursday and underscored "the lack of an alternative to a peaceful resolution of (Syria's) internal conflict through a broad inter-Syria dialogue and political process," a Russian Foreign Ministry statement said. But it made no mention of ways to achieve those goals.


Syrian and Lebanese sources said Makdad had been sent to Moscow to discuss details of a peace plan proposed by Brahimi.


Brahimi is due in Moscow on Saturday and said he also expected to have a third joint meeting with U.S. and Russian officials soon following two rounds of talks earlier this month. But he denied the existence of a U.S.-Russian plan to end the crisis and said it was too soon to present a "complete plan".


"What is preferred is that we don't present such a plan until we feel that all sides have agreed to it. That way, implementing it is easy. If that doesn't happen, the other solution could be to go to the (United Nations) Security Council to issue a binding resolution for everyone," he said.


A Russian Foreign Ministry spokesman also denied any joint initiative between Moscow and Washington.


World powers remain divided over what has become an increasingly sectarian struggle, with Sunni Muslim states such as Turkey and the Gulf Arab countries supporting the rebels while Shi'ite Iran and Hezbollah have backed Assad, whose Alawite community has its roots in Shi'ite Islam.


Syria's struggle "has taken a vicious form of sectarian confrontation," Brahimi said. "Syrian officials foremost, as well as the international community, must not let Syria slide down this very dangerous path which threatens the future of Syria."


Deep differences between Western powers opposed to Assad - led by the United States - and Russia and China which have supported his government, have left the U.N. Security Council paralyzed and largely sidelined throughout the conflict.


The political stalemate has helped transform a once-peaceful uprising into a civil war in which rebels have grown in military strength and taken control of swathes of territory in the north, leaving Assad increasingly reliant on air power to curb them.


Activists in the central province of Hama, where rebels launched an offensive last week to extend their control southwards towards the capital, reported on Thursday that rebels shot down a MiG jet near the town of Morek.


The Syrian Observatory for Human Rights, which monitors violence across Syria, said air force jets launched three raids on rebel forces around Wadi Deif. The British-based group also reported fierce clashes in the area.


The violence has been accompanied by an escalation in apparently sectarian attacks between the Sunni Muslim majority and minorities such as Assad's Alawite sect, which has largely supported the president.


Activists in Hama uploaded a video of what appeared to be Assad soldiers and shabbiha militia members stabbing the body of a dead man and setting it on fire. The man looked as if he had been beaten to death.


"This is a terrorist, a brother of a whore, one of those trying to destroy the country," one of the men shouted. Two men in camouflage uniforms and army helmets stood by watching. Samer al-Hamawi, an activist from Hama, said rebels in his area found the video on the phone of a soldier they captured this week.


The video emerged a day after Islamist rebel units released footage showing the bodies of dozens of Assad's fighters along a highway near an Alawite town in Hama.


(Additional reporting by Marwan Makdesi in Damascus and Steve Gutterman in Moscow; Editing by Pravin Char)



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Wall Street down on soft retail data, "cliff" worries suspected

NEW YORK (Reuters) - U.S. stocks fell on Wednesday as retailers' shares dropped sharply after a report that showed holiday shoppers were less enthusiastic than last year, with investors saying worries about the "fiscal cliff" may have kept them away from stores.


The Morgan Stanley retail index <.mvr> skidded 1.8 percent as holiday-related sales rose 0.7 percent from October 28 through December 24, compared with a 2 percent increase last year, according to data from MasterCard Advisors SpendingPulse. The SPDR S&P Retail Trust slipped 1.5 percent to 61.24.


Janna Sampson, co-chief investment officer of OakBrook Investments in Lisle, Illinois, said worries about "fiscal cliff" tax hikes and spending cuts next year had likely kept shoppers from a last-minute rush to the stores.


"I think people held back this year, just worried about that bigger cut out of their paycheck next year and having to tighten their belt," she said. "If you've got to tighten your belts starting in January, people start worrying about overspending."


Department stores' stocks slid. Macy's lost 3 percent to $36.41, while Saks also fell 3 percent and traded at $10.30, near its session low. Online retailer Amazon.com fell 3.1 percent to $250.52.


President Barack Obama is due back in Washington early Thursday for a final effort to negotiate a deal with Congress to bridge a series of tax increases and government spending cuts set to begin next week. The president will leave Hawaii later on Wednesday, arriving in the capital early on Thursday.


The Dow Jones industrial average <.dji> slipped 45.61 points, or 0.35 percent, to 13,093.47. The Standard & Poor's 500 Index <.spx> shed 8.66 points, or 0.60 percent, to 1,418. The Nasdaq Composite Index <.ixic> dropped 23.10 points, or 0.77 percent, to 2,989.50.


Volume was light, with only 1.55 billion shares having traded at midday on the New York Stock Exchange, the Nasdaq and the NYSE MKT. Many senior traders were still on vacation during this holiday-shortened week and major European markets were closed for the day.


Still, Wednesday marked the third day of losses for the S&P 500 in its worst three-day decline since mid-November.


A Republican plan that failed to gain traction last week triggered the S&P 500's recent drop, highlighting the market's sensitivity to headlines centered around the budget talks.


"No one is hitting the panic button yet, and part of that lack of panic selling is the notion that the Street is getting comfortable with the likelihood of a temporary fix for the fiscal cliff - something that gets us over the date of January 1 in a way where it can be re-addressed," said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.


During the last five trading days of the year and the first two of next year, it's possible for a "Santa rally" to occur. Since 1928, the S&P 500 has averaged a gain of 1.8 percent during that period and risen 79 percent of the time, according to data from PrinceRidge.


The benchmark S&P 500 Index is up 12.8 percent for the year, and has recouped nearly all of the losses after the U.S. elections when the fiscal cliff concerns moved to the forefront. This is the best yearly gain for the S&P 500 since 2010.


Data showed U.S. single-family home prices rose in October, reinforcing the view that the domestic real estate market is improving, as the S&P/Case-Shiller composite index of 20 metropolitan areas gained 0.7 percent in October on a seasonally adjusted basis.


In the energy sector, China's Sinopec Group and ConocoPhillips will research potentially vast reserves of shale gas in southwestern China over the next two years, state news agency Xinhua reported. Conoco's stock fell 0.8 percent to $57.99.


An outage at one of Amazon.com Inc's web service centers hit users of Netflix Inc's streaming video service on Christmas Eve and was not fully resolved until Christmas Day, a spokesman for the movie rental company said on Tuesday. Netflix rose 0.8 percent to $90.97.


(Reporting by Edward Krudy; Editing by Jan Paschal)



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James leads Heat over Thunder in Finals rematch


MIAMI (AP) — Kevin Durant and Russell Westbrook combined to score 54 points, more than any set of teammates had managed in a game against Miami all season.


Oklahoma City needed them to score at least three more.


That didn't happen, and an NBA Finals rematch went just as last year's title series did — to the Heat.


LeBron James had 29 points, nine assists and eight rebounds, Dwyane Wade scored 21, and the Heat survived a frantic finish to beat the Thunder 103-97 on Tuesday night, a game where Durant and Westbrook both missed potential tying 3-pointers in the final seconds.


"A great game to play," Thunder coach Scott Brooks said, "and a great game to coach."


For the Heat, it was just a little greater.


Mario Chalmers scored a season-high 20 for the Heat, who were 19 for 19 from the foul line, the second-best effort in franchise history behind only a 30-for-30 game in Boston on March 24, 1993. Chris Bosh added 16 points for Miami, which has beaten the Thunder five straight times dating to last June's title series.


"Felt a little bit like a different month," Heat coach Erik Spoelstra said. "Regardless of what your script is coming into the game, when you play this team, it's not going to go according to script. They're too good."


It's the first losing streak of the season for the Thunder, who had been 4-0 after losses. Serge Ibaka and Kevin Martin each scored 15 for Oklahoma City.


The game had a little of everything — a fast start by the reigning champions, a one-handed dunk by James on an offensive rebound that will be added to his copious highlight reel, a scrum after a hard foul that led to double-technicals on Wade and Ibaka early in the fourth, an easy rally by the Thunder from an early double-digit deficit, and even workout partners in Durant and James barking back and forth in the final minutes.


Such was the intensity that James slumped over the scorer's table with 1:08 left, exhausted.


"I'm tired as hell right now," James said — and that was more than an hour after the game ended.


With good reason. On an emotional day, there was a wild finish.


Wade lost the ball on an ill-advised, behind-the-back dribble, and the turnover set up Durant for a two-handed dunk that got the Thunder within 96-95 with 44.1 seconds remaining.


Needing a stop on the next trip, the Thunder instead forgot to play defense. Kendrick Perkins and Ibaka both were confused on the ensuing Miami possession, and Bosh was left alone to take a pass from James and throw down a dunk that restored Miami's three-point edge.


"We went over and helped," Durant said. "We just needed to help on the backside. There was miscommunication but we still had a chance to go into overtime."


Two chances, actually.


Oklahoma City got within one when Durant made a jumper over James, but no closer. Ray Allen's two free throws with 15.6 seconds left made it 100-97, and Miami's last three points came from the line. Durant missed a 3-pointer that James contested, Westbrook wound up with a second chance that Wade defended, and the Thunder guard smacked a nearby table arguing that he was fouled.


"Part of the game," Westbrook said.


While the stars were stars, the Heat got help from one unexpected source. Chalmers was making everything, even unintended plays. Allen lost possession on what looked to be a pass to no one, but Chalmers picked up the bouncing ball on the right wing, whirled and made a 3-pointer — putting Miami up 86-79 with 8:14 left.


In the end, that cushion was necessary.


"I got going early," Chalmers said, "and I stuck with it."


The Heat came out flying, opening a quick 13-2 lead after making six of their first seven shots. About all that didn't go right for the Heat early on was James committing a foul, the first time he was called for a personal since Dec. 8.


It happened 4:03 into the game — 254 minutes and 7 seconds of on-court time since his last one — when James fouled Ibaka on a dunk attempt.


Chalmers had 12 points, matching his season high, in the opening quarter alone, and that was also Miami's lead after his layup for a 15-3 edge. When Durant headed to the bench after being called for his second personal, plus a technical, with 2:08 left in the first, the Heat led 27-16.


But even with Durant out, Oklahoma City scored the last eight points of the quarter, six coming from the line. The Thunder shot 17 of the game's first 18 free throws and finished with a 38-19 edge in tries from the stripe.


The Heat were held to two points in the first 5:05 of the third, and the Thunder grabbed the lead for the first time. Durant connected on a baseline jumper while falling out of bounds and getting fouled by James. The resulting free throw gave Oklahoma City a 58-56 edge.


With that, the back-and-forth began, and Miami found a way.


"Both teams really played up to the billing," Wade said. "An excellent basketball game."


NOTES: James scored at least 20 points for the 30th straight regular-season game and 46th overall. ... Wade is 7-1 on Christmas, and James has won six straight on the holiday. ... Miami's Mike Miller became the 48th active player to reach 10,000 points. ... The Thunder have used the same starting lineup for all 27 games. ... James passed Bernard King for 39th on the NBA career scoring list. ... Attendance was 20,300, the largest crowd for a Heat home game since they moved into AmericanAirlines Arena.


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