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KL shares open higher Posted: 14 Jan 2013 06:01 PM PST Share prices on Bursa Malaysia were higher in early trade driven by gains in major heavyweights, dealers said. As at 9.24 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 4.38 points better at 1,689.01, after opening 3.26 points higher at 1,687.89. Elsewhere in regional markets, Japan stocks surged to a record high with the yen's weakness while other major markets were mixed. The Finance Index rose 8.13 points to 15,425.81, the Plantation Index gained 23.75 points to 8,182.56, and the Industrial Index gained 9.86 points to 2,804.13. The FBM Emas Index added 32.18 points to 11,479.38, the FBMT100 perked 32.021 points to 11,322.49, FBM Ace Index added 2.16 points to 4,283.82 and the FBM Mid 70 Index increased 36.29 points to 12,445.97. Gainers beat losers 134 to 68, with 163 counters unchanged, 1,284 untraded and 23 others were suspended. Volume stood at 125.5 million shares worth RM59.86 million. Actives, Patimas Computers and Ingenuity Consolidated gained one sen each to 17 sen and 10 sen, respectively. Karambunai Corp rose half-a-sen to 13 sen and Hubline warrant 2009/2019 was unchanged at two sen. Heavyweights, Maybank rose five sen to RM9.08, Sime Darby increased six sen to RM9.62, CIMB Group gained two sen to RM7.69 but Axiata Group slipped one sen to RM6.68. -- Bernama

US stocks mixed; Apple weighs on Nasdaq Posted: 14 Jan 2013 03:18 PM PST NEW YORK: Stock markets had a mixed day on Monday as the Dow Jones industrials finished in positive territory while other leading indices closed in the red as earnings season gets under way. The Dow Jones Industrial Average finished with a gain of 18.89 points (0.14 per cent) at 13,507.32. But the broad-based S&P 500 fell 1.37 (0.09 per cent) to 1,470.68. Also lower was the Nasdaq Composite, which fell 8.13 (0.26 per cent) to 3,117.50. Monday lacked major economic indicators; later this week, several major companies will report quarterly earnings. "In general, there is a wait-and-see mentality in the marketplace," said Patrick O'Hare of Briefing.com. Participants are eager to hear the guidance coming out of upcoming earnings reports, "which can either be a catalyst for an extended breakout or a cause for a breakdown," O'Hare said. Dell shares soared on rumours that the computer maker would go private. Dell, which declined to comment on the issue, jumped 13 per cent. Dell's rival Hewlett-Packard rose 4.9 per cent. The Nasdaq index took a hit on reports of weak demand for Apple's new iPhone 5. Apple shares were 3.6 per cent lower. Apple's decline Monday also led lower telecommunications providers Verizon (down 1.6 per cent), AT&T (down 0.7 per cent) and Sprint Nextel (down 3.9 per cent). BlackBerry maker Research in Motion rose 10.3 per cent in anticipation of a product launch scheduled at month-end. United Parcel Service rose 1.7 per cent after it abandoned a proposed US$7.03 billion acquisition of Dutch TNT Express following objections from European antitrust regulators. US aerospace giant Boeing, which was under pressure last week due to problems with its latest 787 aircraft, rallied Monday, closing 1.9 per cent higher. -- AFP

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Malian Rebels Take Town and Vow to Avenge French Attack - New York Times Posted: 14 Jan 2013 08:31 AM PST By STEVEN ERLANGER, ALAN COWELL and ADAM NOSSITER Published: January 14, 2013 PARIS — The French Defense Ministry said on Monday that a town in central Mali had fallen to Islamist insurgents from the north, hours after Foreign Minister Laurent Fabius said his country's dramatic intervention there had succeeded in blocking a rebel advance that could have had "appalling consequences." At the same time, an Islamist leader in Mali said France had "opened the gates of hell" for all its citizens by intervening, reinforcing concerns that the far-flung military operation in Africa could inspire vengeance in mainland France. French forces, Mr. Fabius said in a radio interview late Sunday, were now "taking care" of rear bases used by Islamists who took control of much of the north of the country last year after a military coup in the capital, Bamako. The duration of the French operation was "a question of weeks," Mr. Fabius said, unlike the American-led military campaign in Afghanistan. But within hours, reports began to emerge of a rebel counterattack in the small town of Diabaly, north of Ségou on the approaches to the capital — the first indication that the insurgents had regrouped after a wave of French airstrikes. The fighting in the town pitted government forces against rebels seeking to press southward under heavy fire from the air. Reuters quoted residents and Malian military officials as saying that Islamists counterattacked after the insurgents infiltrated overnight in small groups. The French defense minister, Jean-Yves Le Drian, said the rebels "took Diabaly after fierce fighting and resistance from the Malian Army that couldn't hold them back." The French intervention, which began on Friday and continued over the weekend, appeared to halt the main thrust of an Islamist rebel advance farther east, as West African nations authorized what they said would be a faster deployment of troops in support of the weak government. French aircraft dropped bombs and fired rockets from helicopter gunships and jet fighters after the Islamists, who already control the north of Mali, pressed southward and overran the village of Konna, which had been the de facto line of government control. The French struck two columns of Islamist fighters, the French Defense Ministry said. The first was in and around Konna, driving out the rebels from the village, and the second was to the west, across the Niger River, heading south toward Ségou. That second column appeared from local accounts to still be advancing, with the rebels taking the small town of Alatona as well as Diabaly, a military camp on a main road to Ségou, the administrative capital of central Mali, according to The Associated Press. A spokesman for the Malian Army, Lt. Col. Diarran Kone, confirmed the rebel attack on Diabaly. The French defense minister, Mr. Le Drian, said on Monday that the situation in Mali "is evolving favorably," but he acknowledged that fighting continued. "There is still a difficult spot in the west, where we're dealing with extremely well-armed groups and where the operations are ongoing," he said. The rebel takeover of northern Mali began after the fall of Col. Muammar el-Qaddafi in Libya in October 2011, when Tuareg fighters from northern Mali, who had been fighting alongside Colonel Qaddafi's forces, returned home with weapons from Libyan arsenals. They joined with Qaeda-affiliated Islamist militants who had moved to the lightly policed region from Algeria, and the two groups easily drove out the weakened Malian Army in late March and early April last year. The Islamists then turned on the Tuaregs, routing them and consolidating control in the region in May and June. The rebels struck a defiant posture on Monday. Oumar Ould Hamaha, an insurgent leader, said the French intervention had "opened the gates of hell for all the French." He taunted French forces to launch a ground offensive, saying French warplanes had bombed from high altitude. "Let them come down onto the ground, if they are men," he said. "We will greet them with open arms." France, he told Europe 1 radio, "has fallen into a trap which is much more dangerous than Iraq, Afghanistan or Somalia. And that is only the beginning." On Sunday evening, French jets attacked the northern town of Gao, an insurgent stronghold. 1 2 Next Page » Steven Erlanger reported from Paris, Alan Cowell from London, and Adam Nossiter from Bamako, Mali.

Obama Presses House GOP on Debt Limit - New York Times Posted: 14 Jan 2013 08:47 AM PST By JACKIE CALMES and MICHAEL D. SHEAR Published: January 14, 2013 WASHINGTON — President Obama on Monday warned Republicans against refusing to raise the nation's debt ceiling, calling such talk "irresponsible" and "absurd" and saying it would set off an economic crisis and financial hardship. "They will not collect a ransom in exchange for not crashing the American economy," Mr. Obama said during his final news conference of his first term in office. "The full faith and credit of the United States of America is not a bargaining chip." The president repeated his vow to seek what he called a "balanced" approach to reduce the nation's deficit during the months ahead. But he said he would not negotiate on the debt ceiling, and he said Republicans in Congress would be responsible for the effects of a refusal to raise it. "It would be a self-inflicted wound on the economy. It would slow down our growth and tip us into recession," Mr. Obama said. "To even entertain the idea of this happening is irresponsible. It's absurd." He added: "America cannot afford another debate with this Congress about whether or not they should pay the bills they've already racked up." Mr. Obama disclosed that Vice President Joseph R. Biden Jr. had already presented him with proposals to combat gun violence and promised to unveil them publicly later this week. He said his package would include a ban on assault weapons and on high-caliber magazines, as well as expanded background checks. But he declined to say how hard he would push for an assault weapons ban, and acknowledged that it and other gun measures might not pass. "We're going to have to come up with answers that set politics aside. And that's what I expect Congress to do," he said, reiterating his support for gun measures. "Will all of them get through this Congress? I don't know. But what's uppermost in my mind is making sure I'm honest with the American people and Congress about what I think will work." Mr. Biden said last week that he would present his recommendations to Mr. Obama on Tuesday, so the president's comments suggested that the timetable had been moved up. He said the vice president's working group has "presented me now with a list of sensible common sense steps" and that he would meet with Mr. Biden later on Monday. He added that he expected to make a "fuller presentation" later in the week in advance of his inauguration on Sunday. Six days before he is to be inaugurated again, Mr. Obama is preparing a rapid-fire agenda for the early days of his second term. In addition to negotiations over the debt limit, Mr. Obama is preparing for a difficult debate over spending cuts and has said he will propose a comprehensive overhaul of the nation's immigration system. The president is also seeking approval of a new team to lead his government, having made nominations to replace his secretaries of state, defense and the Treasury. The efforts to reshape his administration — some of which are already proving difficult — are likely to dominate much of the next several weeks. Holding a news conference now suggests that the president is eager to begin pushing that agenda even in advance of his inaugural speech next Monday and his State of the Union speech on Feb. 12. Mr. Obama rejected the idea of a "Plan B" that might avoid a clash with Republicans over the debt ceiling. Some ideas that have been floated include minting a $1 trillion platinum coin that could allow the government to spend beyond the debt ceiling. The president did not directly address the idea of such a coin, but he said: "There are no magic tricks here. There are no loopholes. There are no easy outs." Mr. Obama said he understood the "impulse to get around this in a simple way," but he said that there was no way around the need for Congress to authorize enough debt as is necessary to pay for spending that had already been approved. "What Congress can't do is tell me to spend 'X' and then say we're not going to give you the authority to pay the bills," Mr. Obama said. 1 2 Next Page »

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KL shares open higher in early trade Posted: 13 Jan 2013 06:04 PM PST Share prices on Bursa Malaysia opened higher in early trading Monday on renewed buying interest, dealers said. After 30 minutes of trading, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 2.93 points to 1,685.63 after opening 3.71 points better at 1,686.41. HwangDBS Vickers Research, however, said the local bourse may extend its consolidation mode today in the absence of new market leads. "On the chart, its benchmark FBM KLCI could struggle to overcome the support-turned-resistance level of 1,685," it said. Meanwhile, Wall Street ended broadly flat on Friday as profit-taking activity set in following recent run-ups. On the local front, pending the emergence of fresh market directions, stocks that could add interest include SP Setia, after getting an overwhelming response for its first phase of the Battersea Power Station property project in London. Others include Malaysia Airports Holdings Bhd amid a business weekly report saying that its non-aeronautical income is set to grow when KLIA2 comes on stream and Sime Darby following the Securities Commission's approval for its US$1.5 billion multi-currency Sukuk fund-raising programme. On the scoreboard, the Finance Index rose 11.55 points to 15,411.15, the Industrial Index improved 6.83 points to 2,804.70 and the Plantation Index added 8.97 points to 8,158.30. The FBM Emas Index gained 21.39 points to 11,460.69, the FBMT100 increased 19.79 points to 11,304.59, the FBM Mid 70 Index rose 22.67 points to 12,448.18 but the FBM Ace Index was 6.48 points lower at 4,271.85. Gainers led losers 159 to 99 with 173 counters unchanged, 1,211 untraded and 26 others were suspended. Volume was thin at 192 million shares worth RM56.67 million. Among actives, Patimas Computers earned half-a-sen to 15 sen, Kassets-CB:CW gained five sen to 10 sen but ETI Tech Corp fell one sen to 5.5 sen. Heavyweights, Maybank and Sime Darby added two sen each to RM9.02 and RM9.61, respectively, but CIMB eased two sen to RM7.64. -- Bernama

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France bombs Islamist stronghold in north Mali - Reuters Posted: 13 Jan 2013 08:26 AM PST By Bate Felix and Chine Labbe BAMAKO/PARIS | Sun Jan 13, 2013 11:24am EST (Reuters) - French fighter jets pounded an Islamist rebel stronghold in northern Mali on Sunday as Paris poured more troops into the capital Bamako, awaiting a West African force to dislodge al Qaeda-linked insurgents from the country's north. The attack on Gao, the largest city in the desert region controlled by the Islamist alliance, marked a decisive drive northwards on the third day of French air strikes, moving deep into the vast territory seized by rebels in April. France is determined to end Islamist domination of north Mali, which many fear could act as a base for attacks on the West and for links with al Qaeda in Yemen, Somalia and North Africa. France's Defence Minister Jean-Yves Le Drian said French intervention on Friday had prevented rebels driving southward to seize Bamako itself. He said air raids would continue in the coming days. "The president is totally determined that we must eradicate these terrorists who threaten the security of Mali, our own country and Europe," he told French television. In Gao, a dusty town on the banks of the Niger river where Islamists have imposed an extreme form of Sharia law, residents said French fighters and attack helicopters pounded the airport and rebel positions. A huge cloud of black smoke rose from the militants' camp in the north of the city. "The planes are so fast you can only hear their sound in the sky," resident Soumaila Maiga said by telephone. "We are happy, even though it is frightening. Soon we will be delivered." A Malian rebel spokesman said the French had also bombed targets in the towns of Lere and Douentza. France has deployed about 550 soldiers to Mali, split between Bamako and the town of Mopti, 500 km (300 miles) north, Le Drian said. State-of-the-art Rafale fighter jets were also dispatched to reinforce "Operation Serval" - named after an African wildcat. In Bamako, a Reuters cameraman saw more than 100 French troops disembark on Sunday from a military cargo plane at the international airport, on the outskirts of the capital. The city itself was calm, with the sun streaking through the dust enveloping the city as the seasonal Harmattan wind blew from the Sahara. Some cars drove around with French flags draped from the windows to celebrate Paris's intervention. AFRICAN TROOPS EXPECTED More than two decades of peaceful elections had earned Mali a reputation as a bulwark of democracy, but that image unraveled in a matter of weeks after a military coup last March that left a power vacuum for the Islamist rebellion. French President Francois Hollande's intervention in Mali has won plaudits from leaders in Europe, Africa and the United States, but it is not without risks. It raised the risk level for eight French hostages held by al Qaeda allies in the Sahara and for the 30,000 French expatriates living in neighboring, mostly Muslim states. Concerned about reprisals, France has tightened security at public buildings and on public transport. It advised its 6,000 citizens in Mali to leave as spokesmen for the Islamist groups have promised to exact revenge. In its first casualty of the campaign, Paris said a French pilot was killed on Friday when rebels shot down his helicopter. Hours earlier, a French intelligence officer held hostage in Somalia by al Shabaab extremists linked to al Qaeda was killed in a botched commando raid to free him. President Hollande says France's aim is simply to support a mission by West African bloc ECOWAS to retake the north, as mandated by a U.N. Security Council resolution in December. With Paris pressing West African nations to send their troops quickly, Ivory Coast President Alassane Ouattara, who holds the rotating ECOWAS chairmanship, kick-started the operation to deploy 3,300 African soldiers. Ouattara, installed in power with French military backing in 2011, convened a summit of the 15-nation bloc for Saturday in Ivory Coast to discuss the mission. "The troops will start arriving in Bamako today and tomorrow," said Ali Coulibaly, Ivory Coast's African Integration Minister. "They will be convoyed to the front." Military analysts expressed doubt, however, that African nations would be able to mount a swift operation to retake north Mali - a harsh, sparsely populated terrain the size of France - as neither the equipment nor ground troops were prepared. The United States is considering sending a small number of unarmed surveillance drones to Mali as well as providing logistics support, a U.S. official told Reuters. Britain and Canada have also promised logistical support. Former French colonies Senegal, Niger and Burkina Faso have all pledged to deploy 500 troops within days. In contrast, regional powerhouse Nigeria, due to lead the ECOWAS force, has suggested it would take time to train and equip the troops. HOUSE-TO-HOUSE SEARCHES France, however, appeared to have assumed control of the operation on the ground. Its airstrikes allowed Malian troops to drive the Islamists out of the town of Konna, which they had briefly seized this week in their southward advance. Calm returned to the town on Sunday after three nights of combat as the Malian army mopped up any rebel fighters. A senior Malian army official said more than 100 rebels had been killed. "Soldiers are patrolling the streets and have encircled the town," one resident, Madame Coulibaly, told Reuters by phone. "They are searching houses for arms or hidden Islamists." Human Rights Watch said at least 11 civilians, including three children, had been killed in the fighting. A spokesman for Doctors Without Borders in neighboring Mauritania said about 200 Malian refugees had already fled across the border to a camp at Fassala and more were on their way. In Bamako, civilians tried to contribute to the war effort. "We are very proud and relieved that the army was able to drive the jihadists out of Konna. We hope it will not end there, that is why I'm helping in my own way," said civil servant Ibrahima Kalossi, 32, one of over 40 people who queued to donate blood for wounded soldiers. (Additional reporting by Adama Diarra, Tiemoko Diallo and Rainer Schwenzfeier in Bamako, Joe Bavier in Abidjan, Leila Aboud in Paris and Phil Stewart in Washington; Writing by Daniel Flynn; Editing by Alison Williams and Will Waterman)

Survivors, relatives mark anniversary of Costa Concordia shipwreck - CTV News Posted: 13 Jan 2013 07:55 AM PST The Associated Press Published Sunday, Jan. 13, 2013 10:54AM EST GIGLIO, Italy -- Survivors of the Costa Concordia shipwreck and relatives of the 32 people who died marked the first anniversary of the grounding Sunday with the unveiling of memorials to the victims, a Mass in their honour and a minute of silence to recall the exact moment that the cruise ship rammed into a reef off Tuscany. The first event of Sunday's daylong commemoration was the return to the sea of part of the massive rock that tore a 70-meter (230-foot) gash into the hull of the ocean liner on Jan. 13, 2012. The boulder remained embedded in the mangled steel as the 112,000-ton vessel capsized along with its 4,200 passengers and crew. As fog horns wailed, a crane on a tug lowered the boulder onto the reef off Giglio, returning it to the seabed affixed with a memorial plaque. Relatives of the dead threw flowers into the sea and embraced as they watched the ceremony from a special ferry that bobbed in the waves under a slate grey sky. A land-based memorial was being unveiled after a Mass and ceremony honouring rescue crews. A minute of silence was scheduled for 9:45 p.m., the exact moment when the Concordia slammed into the reef after the captain took the ship off course in a stunt to bring it closer to Giglio. The captain, Francesco Schettino, is accused of multiple manslaughter, causing a shipwreck and leaving the ship before all passengers were evacuated. He hasn't been charged but is living under court-ordered restrictions pending a decision on whether to indict him. Schettino maintains he saved lives by bringing the ship closer to shore rather than letting it sink in the open sea, and claims the reef he hit wasn't on his nautical charts. In an interview broadcast Sunday with RAI state television, Schettino again defended his actions and said he wanted to "share in the pain of all the victims and the families of the victims." Taking part in the anniversary commemoration was Capt. Gregorio De Falco of the Italian coast guard, who became something of a hero to survivors after his recorded conversations with Schettino during the evacuation were made public. In them, De Falco excoriated Schettino for having abandoned the ship before all passengers were off and ordered him to return, shouting the now-infamous order "Go on board (expletive)!" De Falco said he wanted to go to Giglio to "embrace the victims, and the relatives of the victims." De Falco, who has shied from all media attention since the disaster, said he did so out of respect for the victims. "I'm not a hero," he told reporters in Giglio on Sunday. "I just did my job." Also on hand was Kevin Rebello, brother of Costa waiter Russel Rebello, one of the two victims whose bodies were never recovered. Kevin Rebello spent weeks on Giglio in the aftermath of the disaster awaiting word of the fate of his brother and said he couldn't sleep ahead of Sunday's anniversary. "I have been constantly thinking it is going to be again the same agony, even tonight, because it is going to be the same exact moment when all this happened," he told Associated Press on Sunday. "So my heart is beating a bit faster I guess." The Concordia remains on its side, grounded off Giglio's port. Officials now say it will take until possibly September to prepare the ship to be rolled upright and towed from the rocks to a port to be dismantled. The cost has also swelled to (euro)400 million ($530 million). While Sunday's commemoration was focused on the relatives of those who died, Giglio's residents were also being remembered for having opened their doors to the survivors who came ashore that night, cold, wet and traumatized after a chaotic evacuation. "It was something that was too big for us," said Giglio resident Silvana Anichini. "We are just not used to things like this, and then it turned out to be one of the biggest shipwrecks in the world." Italian President Giorgio Napolitano sent a message of thanks to the island, praising its people for their "high sense of civic duty and humanity." Many survivors have stayed in touch with their Giglio hosts, connected in ways they didn't ever expect. Claudia Urru, who stayed home in Sardinia on the anniversary, says she speaks monthly with the Giglio family that took her family and the two other families she was travelling with into their home that night, giving them warm clothes and food. For Christmas, her Giglio family sent a package of local sweets, and they have discussed having a reunion in Sardinia. "This is the only thing good that has come of it," Urru said by phone last week.

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French Airstrikes Push Back Islamist Rebels in Mali - New York Times Posted: 12 Jan 2013 09:04 AM PST By STEVEN ERLANGER and SCOTT SAYARE Published: January 12, 2013 PARIS — French airstrikes overnight in Mali pushed back Islamist rebels from a key village and destroyed a rebel command center, France said Saturday, as West African nations authorized what they said would be a fast deployment of troops to Mali in support of the weak government there. France intervened Friday, dropping bombs and firing rockets from helicopter gunships and jet fighters after the Islamist rebels who already control the north of Mali pressed southward, overrunning the village of Konna. The French, who had earlier said they would not intervene militarily but only help African troops, took action in response to an appeal by the Malian president. France, the United States and other Western nations have been increasingly anxious about the Islamists' tightening grip on the north of the country, which they said was becoming a haven for militants, including those with links to Al Qaeda, who threaten not only their neighbors, but the West. On Saturday, Adm. Édouard Guillaud, the chief of staff of the French armed forces, said that French forces had no current plans to extend operations to northern areas controlled by the Islamists, but would expect to help African forces do the job when they arrive. "The quicker the African mission is on the ground, the less we will need to help the Malian army," Admiral Guillaud said. He said more military planes had been sent to Africa for possible use in Mali. "We are in the build-up phase of operations," he said. The United Nations Security Council had earlier agreed that troops from the 15-nation regional bloc known as Ecowas, the Economic Community of West African States, and European Union trainers would help the fragile government in Bamako win back the north of the country, where the Islamists have set up harsh rule under Sharia law in the nine months since the army fled the area. But both groups had been slow to deploy. With the fall of Konna and the movement of the Islamist fighters south, the Ecowas commission president, Kadré Désiré Ouédraogo, said Saturday that the group had authorized an immediate deployment of troops "in light of the urgency of the situation," according to news reports. But he did not specify how many troops would be sent to Mali or give a date for their deployment. Also on Saturday, the foreign minister of Mali's neighbor, Niger, said that the country would send a battalion of 500 soldiers to fight alongside Ecowas troops. In the fighting Friday, one French helicopter pilot, Lt. Damien Boiteux, died from small-arms fire, the French defense minister, Jean-Yves Le Drian, said at a news conference. Mr. Le Drian said that French forces, led by helicopter gunships, had driven the Islamists back from Konna, but it remained unclear if Malian forces had established control. Konna is about 45 miles north of the major town of Mopti, a port city on the Niger River that the Mali government feels it cannot lose. A spokesman for the Islamist group Ansar Dine told The Associated Press that he could not confirm if some of the group's fighters were still in Konna. The spokesman, Sanda Ould Boumama, told Reuters that French intervention in Mali will have "consequences, not only for French hostages, but also for all French citizens wherever they find themselves in the Muslim world." Fear of those consequences, at least for several French hostages held in North Africa, may have been a motivation for a failed French rescue mission early on Saturday in Somalia, where French commandos tried to free a French intelligence agent held there since 2009. Mr. Le Drian said that France needed to act in Mali to forestall the collapse of the government there and the establishment of another area controlled by radical Islamists with ties to terrorist groups. "The threat is the establishment of a terrorist state within range of Europe and of France," he said. France is also acting because it has some 6,000 citizens in Mali, a former French colony. French troops have been moved into Bamako, the capital, to protect citizens there.

France believes hostage killed in Somalia rescue bid - Reuters Posted: 12 Jan 2013 08:53 AM PST By John Irish and Abdi Sheikh PARIS/MOGADISHU | Sat Jan 12, 2013 11:52am EST (Reuters) - France sent special forces into Somalia to rescue a secret agent but insurgents apparently killed their hostage during the raid along with a commando, Defense Minister Jean-Yves Le Drian said on Saturday. The intelligence agency team flew into southern Somalia by helicopter under cover of darkness to try to free Denis Allex, held since 2009, by al Qaeda-linked al Shabaab, on the same day France launched air strikes against Islamist militants in Mali. "Commandos broke into where Allex was being detained last night and immediately faced strong resistance," Le Drian told a news conference. "Intense combat took place, during which - and now I speak with caution - everything leads us to believe that Denis Allex was unfortunately killed by his captors." Sowing confusion, Al Shabaab said in a statement that Allex was still alive. Paris has been concerned that various French hostages held in Africa would be at risk if it intervened militarily against the al Qaeda-allied fighters in Mali, but Le Drian said the Somalia raid was "totally unconnected" to the Mali operation. The deaths in Somalia coincided with the killing of a pilot in air strikes in Mali, however, striking a double blow to the start of a campaign that represents President Francois Hollande's biggest foreign policy test since his May election. A French commando died from wounds sustained in the Somali raid and a second was missing, Le Drian said. The defense ministry said earlier that 17 Somali fighters were killed in a mission prompted by "the intransigence of the terrorists, who refused to negotiate for three and half years". Al Shabaab said in a statement that Allex was alive and being held at a location far from the base where French military helicopters attacked overnight. "The injured French soldier is now in the custody of the mujahideen and Allex still remains safe and far from the location of the battle," it said. "Several French soldiers were killed in the battle and many more were injured before they fled from the scene of battle, leaving behind some military paraphernalia and even one of their comrades on the ground." When asked about whether the missing commando was now in the hands of Al Shabaab, French Army chief Admiral Edouard Guillaud said: "If he is alive then he could be, but he could also be hiding." France has eight nationals in Islamist hands in the Sahel area after a string of kidnappings, and has cited concern over their safety as a reason for its initial reluctance to spearhead any military action against the Islamist rebels in Mali. A spokesman for Malian insurgents Ansar Dine said France's intervention in the country will put French citizens at risk. "There are consequences, not only for French hostages, but also for all French citizens wherever they find themselves in the Muslim world," Sanda Ould Boumama told Reuters. " A French military analyst, Jean-Dominique Merchet, said he doubted the raid had been mounted in coordination with the Mali operation and it appeared to be a case of unfortunate timing. "The Mali intervention was not planned, it was launched in two days, whereas the other raid had been in the works for a week or two. There is no reason for them to have been coordinated," he said. PLEADING FOR LIFE Allex was one of two officers from the DGSE intelligence agency kidnapped by al Shabaab in Mogadishu in July 2009. His colleague, Marc Aubriere, escaped a month later but Allex had been held ever since in what Paris called "inhumane conditions". The ministry said he was kidnapped while carrying out an aid mission with the Somali government. France has previously said the two men were in the Somali capital to train local forces. A video of Allex pleading with Hollande to negotiate his release and save his life appeared on a website in October used by Islamist militant groups around the world. Reuters could not verify its authenticity. Hollande said at the time the government was seeking to start talks with any party able to facilitate Allex's release. After his abduction, al Shabaab issued a series of demands, which included an end to French support for the Somali government and the withdrawal of African Union peacekeepers, whose 17,600-strong troops are helping battle the rebels. Under pressure from the peacekeeping troops and Somali government forces, al Shabaab has lost many of its major urban strongholds in south-central Somalia since it launched a rebellion against the Western-backed government in 2007. The rebels, who want to impose their strict interpretation of sharia, or Islamic law, across the Horn of Africa state, withdrew from the capital Mogadishu in August last year and lost their last major bastion of Kismayu six weeks ago. A Somali official in Bula Mareer, about 120 km (75 miles) south of Mogadishu, said French helicopters attacked overnight. "Helicopters attacked al Shabaab at 2.00 a.m. this morning. Two civilians died in the crossfire," Ahmed Omar Mohamed, deputy chairman for lower Shabelle region, told Reuters. An al Shabaab official who asked not to be named said they exchanged fire with French commandos. "Three helicopters dropped French commandos. We exchanged fire," the official told Reuters. (Additional reporting by Feisal Omar in Mogadishu and Leila Abboud and Catherine Bremer in Paris; Editing by Alison Williams and Jason Webb)

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KL bourse seen remaining firm Posted: 11 Jan 2013 07:27 PM PST Share prices on Bursa Malaysia are expected to remain firm next week, driven by stronger-than-expected Chinese trade data and optimism that the global economy is on its way to recovery, dealers said. Affin Investment Bank Vice-President and Head of Retail Research Dr Nazri Khan said with the recent encouraging US economic data, easing Eurozone sovereign debt tensions and expectation of positive fourth-quarter earnings, the regional equity indices including the FBMKLCI, was expected to hit fresh cyclical highs in the near-term. "The next major resistance is pegged between 1,700 and 1,720 points level while major support stood between 1,670 and 1,660 points," he said. Meanwhile, Nazri said the one-off rally held on Saturday would only have minimal impact on the stock market. "Besides, we have enough catalyst and momentum in the economy now both from an investment and stock market perspective with the FBMKLCI at all time high and on the verge of breaking the 1,700 points psychological barrier. "Ultimately, we believe the dissolution of Parliament and the 13th General Election polling date is more important than the rally as the two factors would ultimately impact market sentiment and business confidence," he added. On the local front, some of the newsflow that will excite the bourse includes AirAsia Bhd which plans to launch an Indian airline, Lingui Development Bhd's proposed privatisation by Samling Group and rumours that Malaysia Airports and YTL Corp are bidding for the 1 billion pound UK Stansted Airport. Meanwhile, on a Friday-to-Friday basis, the FBM KLCI declined 9.88 points to 1,682.70 compared with last Friday's 1,692.58. The Finance Index improved 58.24 points to 15,399.60 but the Industrial Index fell 16.47 points to 2,797.87 and the Plantation Index lost 105.86 points to 8,149.33. The FBM Emas Index decreased 5.02 points to 11,439.30, the FBMT100 slipped 55.85 points to 11,284.80, the FBM 70 Index edged down 14.09 points to 12,425.51 while the FBM ACE Index rose 19.06 points to 4,278.83. Weekly turnover surged to 5.94 billion units, valued at RM7.653 billion, from last week's 4.093 billion shares, worth RM6.02 billion. The Main Market volume improved to 4.487 billion shares, worth RM7.462 billion, from 3.187 billion units, valued at RM5.892 billion, transacted last week. The ACE market volume rose to 1.05 billion shares, worth RM109.776 million, compared with 659.884 million shares, worth RM126.779 million, recorded last week. Warrants were up at 388.452 million shares, valued at RM47.092 million, versus 239.007 million units, valued at RM27 million, recorded previously. -- BERNAMA

Ringgit expected to trade higher Posted: 11 Jan 2013 07:20 PM PST The ringgit is expected to trade higher against the US dollar next week, on more signs of a global economic recovery. A dealer said the local unit would likely move towards the 3.000 level next week given the positive trend on the equity market. The ringgit hit 3.0155 per dollar, its strongest since March 12, 2012 on Friday as investors continued to add bullish positions. The unit's underlying sentiment was boosted by positive trade data released for November and the overall interest in Asian currencies. On a weekly basis, the ringgit closed at 3.0200/0220 against the US dollar from 3.0455/0485 last Friday. It appreciated against the Singapore dollar to 2.4639/4657, from 2.4793/4811, previously and increased against the yen to 3.3933/3967 from 3.4514/4563, last week. The local currency was up against the British pound at 4.8758/8805 from 4.8880/8941 previously but fell against the euro to 4.0039/0069 versus last Friday's 3.9634/9682. -- BERNAMA

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CDC: Flu vaccine 62% effective; 47 states report widespread illness - CBS News Posted: 11 Jan 2013 08:48 AM PST Flu activity continues to rise in the U.S., according to new surveillance statistics released by the Centers for Disease Control and Prevention on Friday. Forty-seven states have now reported widespread influenza activity, according to the CDC's latest FluView report, three more states than officials estimated Wednesday. Two more children have died since last week's report, raising the total to 20 kids who have succumbed to the virus. 9 Photos Flu season in U.S. strikes early The report covers the week of Dec. 30 through Jan. 5, and the CDC releases a revision every Friday. Twenty-four states and New York City have experienced high influenza activity, with 16 states reporting moderate activity. Last week's report showed high activity in 29 states. A complete look at how your state stacks up can be found on the CDC's website. From Oct. 1 of 2012 through the report, an estimated 13.3 per 100,000 people were hospitalized with flu. The hardest hit group were adults ages 65 and older. Adults with underlying conditions such as diabetes, heart disease, obesity and lung disease (excluding asthma) were more likely to be hospitalized. Underlying conditions like asthma, neurological disorders or diseases that weaken the immune system were commonly reported in hospitalized kids; however, more than 40 percent of them did not have an underlying medical condition. Play Video Flu outbreak swamps hospitals nationwide Hospitals around the country have reported influxes of flu patients. In Chicago, several hospitals had to divert ambulances while one Pennsylvania hospital had to set up tents to deal with the extra patients. Dr. Robert Glatter, an emergency medicine physician at Lenox Hill Hospital in New York City, told CBSNews.com Friday that his hospital set up additional treatment areas for flu patients. "Many patients seem to have more severe illness this year as opposed to last year," Glatter said in an email. "In fact, a number of patients have required mechanical ventilation (respirator) due to difficulty breathing. We have also seen a number of children under the age of 5 with severe symptoms including muscle aches along with vomiting." Play Video Mass. hospital nearing full capacity with flu patients The CDC does not track adult death rates -- state health departments do -- but about 24,000 die each year from influenza. The CDC said the predominant virus causing flu nationwide is influenza A (H3N2), followed by influenza B viruses. Cases of H1N1, or "swine flu," -- the virus behind a 2009 pandemic -- have rarely been seen. The CDC also released a new study Jan. 11 in its journal Morbidity and Mortality Weekly Report, that found this year's flu vaccine is about 62 percent effective. That's based on test results collected from 1,155 children and adults who reported to doctors with respiratory infections. The agency still says this year's vaccine matches well to the strains that are out there, and recommends everyone over the age of 6 months gets a flu shot. "However, these early [vaccine effectiveness] estimates underscore that some vaccinated persons will become infected with influenza," wrote the CDC researchers. "Therefore, antiviral medications should be used as recommended for treatment in patients, regardless of vaccination status." Prescription drugs such as Tamiflu (generic name oseltamivir) and Relenza (generic name zanamivir) are usually prescribed for about five days, although people who are hospitalized may need to take the medicine longer. The drugs can reduce symptoms and shorten the time people are sick by one to two days, in addition to helping prevent more serious flu complications like pneumonia, according to the CDC.

FAA Opens Review of Boeing 787 Dreamliner - Wall Street Journal Posted: 11 Jan 2013 09:19 AM PST Article Excerpt BY ANDY PASZTOR U.S. regulators on Friday opened a full review of how Boeing Co. builds its new 787 jet, while reiterating that the aircraft is safe to fly despite the recent spate of technical problems. Airlines continued to operate the Dreamliner, and the move doesn't ground any of the planes, or require immediate inspections or repairs. The Federal Aviation Administration said it plans to launch a "comprehensive safety review of Boeing 787 critical systems," including the "design, manufacture and assembly" of electrical and other components. "I believe this plane is safe," U.S. Transportation Secretary Ray LaHood said at a news conference Friday ... Continue reading article with pop up player

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