Japan PM dissolves parliament; vote set for Dec 16

TOKYO (AP) — Prime Minister Yoshihiko Noda dissolved the lower house of parliament Friday, paving the way for elections in which his ruling party will likely give way to a weak coalition government divided over how to solve Japan's myriad problems.

Elections were set for Dec. 16. If Noda's center-left party loses, the economically sputtering country will get its seventh prime minister in seven years.

"Banzai! Banzai! Banzai!" shouted the 480-some lawmakers in the lower house, raising their arms each time in celebration, after the house speaker read a proclamation approved by Emperor Akihito, delivered wrapped in a cloth of imperial violet.

The opposition Liberal Democratic Party, which led Japan for most of the post-World War II era, is in the best position to take over. The timing of the election likely pre-empts moves by more conservative challengers, including former Tokyo Mayor Shintaro Ishihara, to build up electoral support.

Campaigning is set to begin Dec. 4, but leaders were already switching into campaign mode.

"What's at stake in the upcoming elections is whether Japan's future is going to move forward or backward," Noda declared to fellow leaders of the Democratic Party of Japan. "It is going to be a crucial election to determine the fate of Japan."

The DPJ, in power for three years, has grown unpopular thanks largely to its handling of the Fukushima nuclear crisis and especially its recent doubling of the sales tax.

Noda's most likely successor is LDP head and former Prime Minister Shinzo Abe. He resigned as Japan's leader in 2007 after a year in office, citing health problems he says are no longer an issue.

"I will do my utmost to end the political chaos and stalled economy," Abe told reporters Friday. "I will take the lead to make that happen."

The path to elections was laid suddenly Wednesday during a debate between Abe and Noda. Noda abruptly said he would dissolve parliament if the opposition would agree to key reforms, including a deficit financing bill and electoral reforms, and Abe jumped at the chance.

Polls indicate that the conservative, business-friendly LDP will win the most seats in the 480-seat lower house but will fall far short of a majority. That would force it to cobble together a coalition of parties with differing policies and priorities.

"It's unlikely that the election will result in a clear mandate for anybody," said Koichi Nakano, a political science professor at Sophia University. "So in that sense, there's still going to be a lot of muddling through."

The election, and the divided government that will follow, complicate efforts to extricate Japan from its two-decade economic slump and effectively handle the cleanup from its 2011 nuclear disaster.

Still, many saw the prospect of change as positive: Japan's Nikkei 225 stock index jumped 2.2 percent Friday to close at 9,024.16.

Japan's leaders urgently need to devise strategies for coping with a soaring national debt, now more than double the national GDP, and a rapidly aging population. Japan must also decide whether it will follow through with plans to phase out nuclear power by 2040 — a move that many in the LDP oppose.

Perhaps most pressing is Japan's festering territorial dispute with China, which has hammered exports to its biggest trading partner.

A staunch nationalist, Abe has railed against China in the dispute over a cluster of uninhabited islands in the East China Sea controlled by Japan but also claimed by China and Taiwan.

Japan is going through a messy political transition, with a merry-go-round of prime ministers and the emergence of various parties to challenge the long-dominant LDP.

The Democratic Party of Japan's ousted the LDP in a 2009 landslide, raising hopes for change. But the DPJ's failure to keep campaign promises and the government's handling of the Fukushima nuclear crisis triggered by the March 11, 2011, earthquake and tsunami have left many disillusioned. Noda's centerpiece achievement during nearly 15 months in office was a highly unpopular bill doubling the 5 percent national sales tax by 2015.

Polls show support for the DPJ in the low teens, while 25 to 30 percent of voters back the LDP. Several other parties have lower levels of support, and nearly half the electorate is undecided.

"There are so many lying politicians," said Tokyo resident Michiyo Komaki. "I just wish for a leader who would do his job properly."

Ishihara recently resigned as Tokyo mayor to create the Sunrise Party. As mayor, he helped instigate the territorial crisis with China by declaring that Tokyo would buy and develop the disputed islands controlled by Japan but long claimed by Beijing. The central government bought the islands itself, intending to thwart Ishihara's more extreme plans, but China was still enraged.

Ishihara has been courting Toru Hashimoto, the young, outspoken mayor of Osaka, Japan's second biggest-city, in hopes of tapping voter dismay. Both have formed their own national political parties, but they may not have enough time to get organized for the election.

The two men are reportedly in discussions to merge their parties and form a so-called "third force" to counter the LDP and DPJ, but apparently are struggling to reconcile conflicting policy views, including on nuclear power.

"The era of one-party dominance is clearly over and behind us," said Nakano, the professor. "We know what we are transiting from, but we don't know where we are going."

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Associated Press writers Elaine Kurtenbach and Mari Yamaguchi contributed to this report.

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Jesse & Joy take 4 Latin Grammys, Juanes wins too

LAS VEGAS (AP) — As Colombian rockero Juanes took home the best album award, Mexican brother-sister duo Jesse & Joy and their pop hit "Corre!" ran away with four awards at the 13th Annual Latin Grammys.

Hosted by actors Cristian De La Fuente and Lucero, Thursday night's event attracted stars from across the world and from dozens of Latin musical genres to the Mandalay Bay Events Center. Just like at a big family party, new faces shared the spotlight with older generations, and traditional styles mixed with electronica and Vegas dancers on stage.

Traditional Mexico met Las Vegas in a colorful number featuring Oaxaca native Lila Downs, Afro-Colombian singer Toto la Momposina and dancers in regional costumes, Carnival masques and skeleton makeup.

"What a great joy. Thank God, and all the fans," Juanes said as he dragged Dominican mereguero Juan Luis Guerra, who produced "MTV Unplugged," to the stage to accept the mini-gramaphone for best album at the close of the ceremony.

The winner for best new artist, the Mexican DJ trio 3ball MTY, threw down beats with America Sierra and Sky Blu of LMFAO. Pitbull performed "Don't Stop the Party" with dancers in gold spangled bikinis and hot pants. Juanes jammed with legendary guitarist Carlos Santana.

Michel Telo, the Brazilian sertanejo or country music singer, performed his hit, "Ai si eu te pego,"with Blue Man Group. Bachata heartthrob Prince Royce sang with veteran Mexican singer-songwriter Joan Sebastian. But the applause was also strong for the 1980s hit, "Yo No Te Pido la Luna," a duet between Spaniard Sergio Dalma and Mexican singer Daniela Romo, sporting a short silver hairdo following her bout with breast cancer.

Jesse & Joy also won for best contemporary pop vocal album for "Con Quien se Queda el Perro" and best short video for "Me voy."

"Thanks to people like Juanes and Juan Luis Guerro who have inspired us. Love and peace," Jesse said.

Guerra, who came into the ceremony as the leading nominee with six bids, won producer of the year for Juanes' album "MTV Unplugged."

Guerra performed "En el Cielo No Hay Hospital," which brought the audience to its feet to dance, and for a standing ovation.

Puerto Rican reggaeton singer Don Omar and Uruguayan alt rockers Cuarteto de Nos won two Latin Grammys each.

Downs won best folkloric album for "Pecados y Milagros." Colombian singer Fonseca won for best tropical fusion album, and Los Tucanes de Tijuana won best norteno album for "365 Dias," the narco-corrido band's 32nd album.

Milly Quezada brought home two statuettes, including best contemporary tropical album for "Aqui estoy yo."

"Long live merengue! Long live the Dominican Republic!" she said as she accepted the award. She also thanked Guerra, who helped produce the album.

Cuban-American jazz trumpeter Arturo Sandoval won three Latin Grammys, two for "Dear Diz (Every Day I Think of You)," but said these awards was just exciting as his first.

"The emotion is the same because one puts the same effort into each recording and the fact that the work is received well and respected by the public is very satisfying," he said.

The Latin Grammy celebration kicked off Wednesday with a tribute to Person of the Year winner, Caetano Veloso, one of the founders of the Tropicalismo movement.

The Brazilian singer, composer and activist sang in Spanish and Portuguese before Pitbull and Sensato closed with "Crazy People."

The event was broadcast live on Univision.

Interactive: http://hosted.ap.org/interactives/2012/latin-grammys/

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Diabetes rates rocket in Oklahoma, South

NEW YORK (AP) — The nation's diabetes problem is getting worse, and the biggest jump over 15 years was in Oklahoma, according to a new federal report issued Thursday.

The diabetes rate in Oklahoma more than tripled, and Kentucky, Georgia and Alabama also saw dramatic increases since 1995, the study showed.

The South's growing weight problem is the main explanation, said Linda Geiss, lead author of the report by the Centers for Disease Control and Prevention study.

"The rise in diabetes has really gone hand in hand with the rise in obesity," she said.

Bolstering the numbers is the fact that more people with diabetes are living longer because better treatments are available.

The disease exploded in the United States in the last 50 years, with the vast majority from obesity-related Type 2 diabetes. In 1958, fewer than 1 in 100 Americans had been diagnosed with diabetes. In 2010, it was about 1 in 14.

Most of the increase has happened since 1990.

Diabetes is a disease in which the body has trouble processing sugar; it's the nation's seventh leading cause of death. Complications include poor circulation, heart and kidney problems and nerve damage.

The new study is the CDC's first in more than a decade to look at how the nationwide boom has played out in different states.

It's based on telephone surveys of at least 1,000 adults in each state in 1995 and 2010. Participants were asked if a doctor had ever told them they have diabetes.

Not surprisingly, Mississippi — the state with the largest proportion of residents who are obese — has the highest diabetes rate. Nearly 12 percent of Mississippians say they have diabetes, compared to the national average of 7 percent.

But the most dramatic increases in diabetes occurred largely elsewhere in the South and in the Southwest, where rates tripled or more than doubled. Oklahoma's rate rose to about 10 percent, Kentucky went to more than 9 percent, Georgia to 10 percent and Alabama surpassed 11 percent.

An official with Oklahoma State Department of Health said the solution is healthier eating, more exercise and no smoking.

"And that's it in a nutshell," said Rita Reeves, diabetes prevention coordinator.

Several Northern states saw rates more than double, too, including Washington, Idaho, Montana, Wyoming, South Dakota, Minnesota, Missouri, Ohio and Maine.

The study was published in CDC's Morbidity and Mortality Weekly Report.

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Associated Press writer Ken Miller in Oklahoma City contributed to this report.

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Online:

CDC report: http://tinyurl.com/cdcdiabetesreport

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Israel holding fire during Egypt premier's visit to Gaza

JERUSALEM (AP) — Israel offered to suspend its offensive in the Gaza Strip on Friday during a brief visit by Egypt's premier there if militants refrain from firing rockets at Israel, an official said, but the Palestinians unleashed a fresh salvo.

An official in Prime Minister Benjamin Netanyahu's office said the Israeli leader was responding to an Egyptian request.

Gaza militants stepped up their barrages of rocket fire into Israel as Hesham Kandil crossed into Gaza before midday through the only border post with Egypt, heavily guarded by Egyptian security personnel wearing flak jackets and carrying assault rifles.

He was greeted by Gaza's Hamas prime minister, Ismail Haniyeh, who ventured out in public for the first time since Israel launched the offensive Wednesday by assassinating the militant group's military commander.

Israel told the Egyptians the military "would hold its fire on the condition that during that period, there won't be hostile fire from Gaza into Israel," the Israeli official said. "Prime Minister Netanyahu is committed to the peace treaty with Egypt, which is in the strategic interest of both countries," he added, speaking on condition of anonymity to discuss the diplomatic exchange.

There were no immediate reports of Israeli retaliation for the latest salvo. Israeli police spokesman Micky Rosenfeld said the militants were making a clear statement. "There's no intention whatsoever to stop firing into Israel," he said.

Three days of fierce fighting between Israel and Gaza militants has widened the instability gripping the region, straining already frayed Israel-Egypt relations. The Cairo government recalled its ambassador in protest.

Egypt said Kandil's three-hour visit Friday was meant as a show of solidarity with the Palestinian territory's militant Hamas rulers.

Egyptian intelligence officials involved in negotiations to end previous rounds of fighting are accompanying Kandil on his visit, an Egyptian diplomat said, suggesting it was more than a display of support.

The diplomat said Gaza militants have told Egyptian intelligence officials they would be willing to hold their fire if Israel would commit to mediation to stop its military operation and targeted killings.

Word of the possible pause in the fighting came after a night of fierce exchanges and signals that Israel might be preparing to invade Gaza. Overnight, the military said it targeted about 150 of the sites Gaza gunmen use to fire rockets at Israel, as well as ammunition warehouses, bringing to 450 the number of sites struck since the operation began Wednesday.

Israeli troops, tanks and armored personnel carriers massed near the Palestinian territory, signaling a ground invasion might be imminent.

Militants unleashed dozens of rocket barrages overnight.

Fighting between the two sides escalated sharply Thursday with a first-ever rocket attack from Gaza on the Tel Aviv area, menacing Israel's most densely populated area. No casualties were reported there, but three people died in the country's rocket-scarred south when a projectile slammed into an apartment building.

The death toll in Gaza was 19, including five children, according to Palestinian health officials.

Early Friday, 85 missiles exploded within 45 minutes in Gaza City, sending black pillars of smoke towering above the coastal strip's largest city. The military said it was targeting underground rocket-launching sites.

One missile flattened sections of the Interior Ministry, leaving a huge pile of rubble, and another hit an uninhabited house belonging to a senior Hamas commander. Those strikes, together with an attack on a generator building near Haniyeh's home, signaled that Israel was expanding its offensive beyond military targets.

Ten-month-old Haneen Tafesh was killed Thursday when flying shrapnel from an air attack on a field next to her family's shack struck her in the head.

"What did she do? Did she fire any rockets?" asked her 23-year-old father, Khaled Tafesh, as he waited outside the Shifa hospital morgue in Gaza City, waiting for the funeral of his only child to begin.

Israel and Hamas had largely observed an informal truce since Israel's devastating incursion into Gaza four years ago, but rocket fire and Israeli airstrikes on militant operations continued sporadically.

The Israeli offensive has not deterred the militants from firing more than 400 rockets aimed at southern Israel, the military said. On Thursday, they also unleashed for the first time the most powerful weapons in their arsenal — Iranian-made Fajr-5 rockets capable of reaching Tel Aviv.

The two rockets that struck closest to Tel Aviv appear to have landed in the Mediterranean Sea, defense officials said, and another hit an open area on Tel Aviv's southern outskirts.

No injuries were reported, but the rocket fire sowed panic in Tel Aviv and made the prospect of a ground incursion more likely. The government later approved the mobilization of up to 30,000 reservists for a possible invasion.

Netanyahu said the army was hitting Hamas hard with what he called surgical strikes, and warned of a "significant widening" of the Gaza operation. Israel will "continue to take whatever action is necessary to defend our people," said Netanyahu, who is up for re-election in January.

At least 12 trucks were seen transporting tanks and armored personnel carriers toward Gaza late Thursday, and buses carrying soldiers headed toward the border area.

An Israeli ground offensive could be costly to both sides. In the last Gaza war, Israel devastated parts of the territory, setting back Hamas' fighting capabilities but also paying the price of increasing diplomatic isolation because of a civilian death toll numbering in the hundreds.

In the current round of fighting, the civilian casualties have been relatively low and the Israeli strikes seem to be more surgical.

In other ways, the latest hostilities are reminiscent of the first days of that three-week offensive against Hamas. Israel also caught Hamas off guard then with a barrage of missile strikes and threatened to follow up with a ground offensive.

Since then, Israel has improved its missile defense systems, but it is facing a more heavily armed Hamas. Israel estimates the militants have 12,000 rockets, including more sophisticated weapons from Iran and from Libyan stockpiles plundered after the fall of Moammar Gadhafi's regime there last year.

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Laub reported from Gaza City, Gaza Strip.

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Panetta unaware of any more names in Petraeus case

BANGKOK (AP) — Defense Secretary Leon Panetta said Thursday he knows of no other senior U.S. military officers being linked to the David Petraeus investigation that has ensnared the top U.S. commander in Afghanistan, Gen. John Allen.

Speaking at a Bangkok news conference, Panetta said he retains "tremendous confidence" in Allen.

"I am not aware of any others that could be involved in this issue at the present time," he said, adding that he wanted the American public to understand that the vast majority of military officers serve ethically and with distinction.

"One thing I do demand," he said, "is that those who seek to protect this country operate by the highest ethical standards."

Panetta declined to describe the nature of the emails and other correspondence between Allen and Florida socialite Jill Kelley, which others have called flirtatious and potentially problematic for the Marine four-star general.

Asked whether any of those emails are sexually explicit, Panetta said, "What I don't want to do is to try to characterize those communications because I don't want to do anything" to limit the ability of the Pentagon inspector general to conduct an objective review of the Allen matter.

Panetta ordered the investigation Monday after the FBI referred the matter to the Pentagon's top lawyer. Allen issued a statement through his lawyer saying he is committed to cooperating fully with the investigation.

Panetta also told reporters he could not rule out the possibility that the Taliban in Afghanistan would try to use Petraeus' admission of an extramarital affair with his biographer, Paula Broadwell, for propaganda purposes. Petraeus, who resigned Friday from his post as CIA director, was Allen's predecessor as top commander in Afghanistan, leaving in summer 2011.

"You're never quite sure what the Taliban may or may not use for propaganda purposes to try to advance their cause, and obviously this is a possible area for them to explore," Panetta said, adding that "if they want to have an impact" there are other issues they could try to exploit.

Panetta spoke at a joint news conference with his Thai counterpart, Sukampol Suwannathat, after the two signed an update to a 1962 U.S.-Thai statement framing their security relationship. The United States and Thailand are treaty allies — a relationship that Washington sees as a cornerstone of its security interests in Asia.

Panetta's talks were intended to lay some of the groundwork for President Barack Obama's visit here Sunday.

Panetta is the first U.S. defense secretary to visit Thailand since 2008. The U.S. has no troops permanently stationed in Thailand but it conducts regular exercises with the Thai military and has numerous other forms of cooperation.

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Erdrich wins her first National Book Award

NEW YORK (AP) — The National Book Awards honored both longtime writers and new authors, from Louise Erdrich for "The Round House" to Katherine Boo for her debut work, "Beyond the Beautiful Forevers."

Erdrich, 58, has been a published and highly regarded author for nearly 30 years but had never won a National Book Award until being cited Wednesday for her story, the second of a planned trilogy, about an Ojibwe boy and his quest to avenge his mother's rape. A clearly delighted and surprised Erdrich, who's part Ojibwe, spoke in her tribal tongue and then switched to English as she dedicated her fiction award to "the grace and endurance of native people."

The works of two other winners also centered on young boys — Boo's for nonfiction, and William Alexander's fantasy "Goblin Secrets," for young people's literature. David Ferry won for poetry.

Boo's book, set in a Mumbai slum, is the story of a boy and his harsh and illuminating education in the consequences of crime or perceived crime. The author, a Pulitzer Prize-winning journalist currently on staff with The New Yorker, said she was grateful for the chance to live in a world she "didn't know" and for the chance to tell the stories of those otherwise ignored. She praised a fellow nominee and fellow Pulitzer-winning reporter, the late Anthony Shadid, for also believing in stories of those without fame or power.

Boo was chosen from one of the strongest lists of nonfiction books in memory, from the fourth volume of Robert Caro's Lyndon Johnson series to Shadid's memoir "House of Stone." Finalists in fiction, which in recent years favored lesser known writers, included such established names as Dave Eggers and Junot Diaz. Publishers have been concerned that the National Book Awards have become too insular and are considering changes, including expanding the pool of judges beyond writers.

Winners, chosen by panels of their peers, each will receive $10,000.Judges looked through nearly 1,300 books.

Ferry is a year older than one of the night's honorary recipients, Elmore Leonard. Ferry, 88, won for "Bewilderment: New Poems and Translations," a showcase for his versatile style. He fought back tears as he confided that he thought there was a chance for winning because he "was so much older" than the other nominees. Attempting to find poetry in victory, he called the award a "pre-posthumous" honor.

Alexander quoted fellow fantasy writer Ursula K. Le Guin in highlighting the importance of stories for shaping kids' imaginations and making the world a larger place than the one they live in.

"We have to remember that," Alexander said.

The ceremony was hosted by commentator-performer Faith Salie and went smoothly even though Superstorm Sandy badly damaged the offices of the award's organizer, the National Book Foundation, whose staffers had to work with limited telephone and mail access.

Honorary prizes were given to Leonard and New York Times publisher and chairman Arthur O. Sulzberger Jr.

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Booze calories nearly equal soda's for US adults

NEW YORK (AP) — Americans get too many calories from soda. But what about alcohol? It turns out adults get almost as many empty calories from booze as from soft drinks, a government study found.

Soda and other sweetened drinks — the focus of obesity-fighting public health campaigns — are the source of about 6 percent of the calories adults consume, on average. Alcoholic beverages account for about 5 percent, the new study found.

"We've been focusing on sugar-sweetened beverages. This is something new," said Cynthia Ogden, one of the study's authors. She's an epidemiologist with the Centers for Disease Control and Prevention which released its findings Thursday.

The government researchers say the findings deserve attention because, like soda, alcohol contains few nutrients but plenty of calories.

The study is based on interviews with more than 11,000 U.S. adults from 2007 through 2010. Participants were asked extensive questions about what they ate and drank over the previous 24 hours.

The study found:

—On any given day, about one-third of men and one-fifth of women consumed calories from beer, wine or liquor.

—Averaged out to all adults, the average guy drinks 150 calories from alcohol each day, or the equivalent of a can of Budweiser.

—The average woman drinks about 50 calories, or roughly half a glass of wine.

—Men drink mostly beer. For women, there was no clear favorite among alcoholic beverages.

—There was no racial or ethnic difference in average calories consumed from alcoholic beverages. But there was an age difference, with younger adults putting more of it away.

For reference, a 12-ounce can of regular Coca-Cola has 140 calories, slightly less than a same-sized can of regular Bud. A 5-ounce glass of wine is around 100 calories.

In September, New York City approved an unprecedented measure cracking down on giant sodas, those bigger than 16 ounces, or half a liter. It will take effect in March and bans sales of drinks that large at restaurants, cafeterias and concession stands.

Should New York officials now start cracking down on tall-boy beers and monster margaritas?

There are no plans for that, city health department officials said, adding in a statement that while studies show that sugary drinks are "a key driver of the obesity epidemic," alcohol is not.

Health officials should think about enacting policies to limit alcoholic intake, but New York's focus on sodas is appropriate, said Margo Wootan, director of nutrition policy for the Center for Science in the Public Interest, a public health advocacy group.

Soda and sweetened beverages are the bigger problem, especially when it comes to kids — the No. 1 source of calories in the U.S. diet, she said.

"In New York City, it was smart to start with sugary drinks. Let's see how it goes and then think about next steps," she said.

However, she lamented that the Obama administration is planning to exempt alcoholic beverages from proposed federal regulations requiring calorie labeling on restaurant menus.

It could set up a confusing scenario in which, say, a raspberry iced tea may have a calorie count listed, while an alcohol-laden Long Island Iced Tea — with more than four times as many calories — doesn't. "It could give people the wrong idea," she said.

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Online:

CDC report: http://www.cdc.gov/nchs/

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Sources: BP to pay record fine for Gulf Coast disaster

HOUSTON/WASHINGTON (Reuters) - BP Plc is expected to pay a record U.S. criminal penalty and plead guilty to criminal misconduct in the 2010 Deepwater Horizon disaster through a plea deal reached with the Department of Justice (DoJ) that may be announced as soon as Thursday, according to sources familiar with discussions.


Three sources, who spoke to Reuters on condition of anonymity, said BP would plead guilty in exchange for a waiver of future prosecution on the charges.


BP confirmed it was in "advanced discussions" with the DoJ and the Securities & Exchange Commission (SEC).


The talks were about "proposed resolutions of all U.S. federal government criminal and SEC claims against BP in connection with the Deepwater Horizon incident," it said in a statement on Thursday, but added that no final agreements had been reached.


The discussion do not cover federal civil claims, both BP and the sources said.


London-based oil giant BP has been locked in months-long negotiations with the U.S. government and Gulf Coast states to settle billions of dollars of potential civil and criminal liability claims resulting from the April 20, 2010, explosion aboard the Deepwater Horizon rig.


The sources did not disclose the amount of BP's payment, but one said it would be the largest criminal penalty in U.S. history. That record is now held by Pfizer Inc, which paid a $1.3 billion fine in 2009 for marketing fraud related to its Bextra pain medicine.


The DoJ declined to comment.


The deal could resolve a significant share of the liability that BP faces after the explosion killed 11 workers and fouled the shorelines of four Gulf Coast states in the worst offshore spill in U.S. history. BP, which saw its market value plummet and replaced its CEO in the aftermath of the spill, still faces economic and environmental damage claims sought by U.S. Gulf Coast states and other private plaintiffs.


The fine would far outstrip BP's last major settlement with the DoJ in 2007, when it payed about $373 million to resolve three separate probes into a deadly 2005 Texas refinery explosion, an Alaska oil pipeline leak and fraud for conspiring to corner the U.S. propane market.


The massive settlement, which comes a week after the U.S. presidential election, could ignite a debate in Congress about how funds would be shared with Gulf Coast states, depending on how the deal is structured. Congress passed a law last year that would earmark 80 percent of BP penalties paid under the Clean Water Act to the spill-hit states of Louisiana, Mississippi, Alabama, Florida and Texas.


POTENTIAL LIABILITY


In an August filing, the DoJ said "reckless management" of the Macondo well "constituted gross negligence and willful misconduct" which it intended to prove at a civil trial set to begin in New Orleans in February 2013. The U.S. government has not yet filed any criminal charges in the case.


Given that the deal will not resolve any civil charges brought by the Justice Department, it is also unclear how large a financial penalty BP might pay to resolve the charges, or other punishments that BP might face.


Negligence is a central issue to BP's potential liability. A gross negligence finding could nearly quadruple the civil damages owed by BP under the Clean Water Act to $21 billion in a straight-line calculation.


Still unresolved is potential liability faced by Swiss-based Transocean Ltd, owner of the Deepwater Horizon vessel, and Halliburton Co, which provided cementing work on the well that U.S. investigators say was flawed. Both companies were not immediately available for comment.


According to the Justice Department, errors made by BP and Transocean in deciphering a pressure test of the Macondo well are a clear indication of gross negligence.


"That such a simple, yet fundamental and safety-critical test could have been so stunningly, blindingly botched in so many ways, by so many people, demonstrates gross negligence," the government said in its August filing.


Transocean in September disclosed it is in discussions with the Justice Department to pay $1.5 billion to resolve civil and criminal claims.


The mile-deep Macondo well spewed 4.9 million barrels of oil into the Gulf of Mexico over a period of 87 days. The torrent fouled shorelines from Texas to Florida and eclipsed in severity the 1989 Exxon Valdez spill in Alaska.


BP has already announced an uncapped class-action settlement with private plaintiffs that the company estimates will cost $7.8 billion to resolve litigation brought by over 100,000 individuals and businesses claiming economic and medical damages from the spill.


(Additional reporting by Andrew Callus in London; Editing by Edward Tobin and David Stamp)


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Panetta: Don't jump to conclusions about Allen

PERTH, Australia (AP) — Defense Secretary Leon Panetta cautioned Wednesday against reaching early conclusions about the veracity of allegations against the top U.S. commander in Afghanistan, Gen. John Allen, who is under investigation for what Pentagon officials have said may be "inappropriate" correspondence with a Florida woman linked to the David Petraeus sex scandal.

At a news conference in Australia's Indian Ocean coastal city of Perth, Panetta sought to tamp down a wave of speculation about the nature of Allen's actions, which have added a new dimension to the Petraeus matter.

"No one should leap to any conclusions here," Panetta said in his first public comments on the matter when a reporter asked what Allen might have done wrong. Panetta declined to characterize Allen's actions in any way.

Panetta said he supports Allen, who has been in command in Kabul since July 2011. He took over that summer for Petraeus, who retired from the Army to head the CIA.

"He certainly has my continued confidence to lead our forces and to continue the fight," Panetta said.

The Pentagon chief declined to explain the nature of Allen's correspondence with Jill Kelley, the Florida socialite connected to the scandal that led to Petraeus' resignation last week as director of the CIA.

Secretary of State Hillary Rodham Clinton, who appeared with Panetta and their Australian counterparts at Wednesday's news conference, declined to comment on the Allen case except to suggest it has not harmed the war effort.

She said U.S. officials have discussed the matter with allied officials.

"There has been a lot of conversation, as you might expect, but no concern whatsoever being expressed to us because the mission has been set forth and it's being carried out," Clinton said.

Panetta announced Tuesday while flying to Australia that he had ordered the Defense Department's inspector general to investigate Allen based on material referred to the Pentagon on Sunday by the FBI. Pentagon officials said the material included at least 20,000 pages of Allen correspondence.

Allen told Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, that he is innocent of misconduct, according to Col. David Lapan, Dempsey's spokesman.

Lapan said Wednesday that Dempsey called Allen on Tuesday from Perth, where Dempsey attended meetings with Panetta. Dempsey has not commented publicly.

Panetta had also announced Tuesday that the Obama administration put on hold Allen's nomination to be the next commander of U.S. European Command and the top NATO general. Allen's Senate confirmation hearing was to have been held Thursday.

Panetta said in Perth that putting a hold on the nomination was the "prudent" thing to do.

Allen, who was in Washington when Panetta announced the investigation and has not yet returned to his headquarters in Kabul, has not publicly commented on the matter.

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Cellphones may get smaller Holiday lift: Gartner
















(Reuters) – The pre-Christmas shopping season is likely to boost cellphone sales less that usual this year as a weaker global economy forces consumers to cut back, research firm Gartner said on Wednesday.


“It will be a cautious quarter. Consumers are either cautious with their spending or finding new gadgets like tablets, as more attractive presents,” Gartner analysts said.













Gartner said sales of cellphones declined 3 percent in the third quarter from a year earlier, falling for the third quarter in a row, while sales of smartphones grew 47 percent.


Smartphone growth this year is boosted by strong demand in China, where annual sales will grow to 165-170 million from 78 million a year earlier, it said.


“There is huge growth coming from the Chinese market,” said Gartner analyst Anshul Gupta.


This is helping local players to climb in global cellphone rankings, with ZTE, Huawei and TCL now among the seven largest cellphone vendors globally, Gartner said.


Samsung Electronics continues to lead the global cellphone sales ranking, ahead of Nokia and Apple. In smartphone sales Nokia, which still lead the market early last year, dropped to No 7, Gartner said.


(Reporting By Tarmo Virki)


Gadgets News Headlines – Yahoo! News



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