Saturday, June 30, 2012

Reuters: Most Read Articles: Assad's fate unclear in world powers' Syria plan

Reuters: Most Read Articles
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Assad's fate unclear in world powers' Syria plan
Jun 30th 2012, 22:59

Kofi Annan, Joint Special Envoy of the United Nations and the Arab League for Syria, emerges from the Action Group on Syria meeting at the United Nations' Headquarters in Geneva, June 30, 2012. REUTERS/Haraz N. Ghanbari/Pool

1 of 7. Kofi Annan, Joint Special Envoy of the United Nations and the Arab League for Syria, emerges from the Action Group on Syria meeting at the United Nations' Headquarters in Geneva, June 30, 2012.

Credit: Reuters/Haraz N. Ghanbari/Pool

By Tom Miles and Stephanie Nebehay

GENEVA | Sat Jun 30, 2012 6:59pm EDT

GENEVA (Reuters) - World powers struck an agreement that a transitional government should be set up in Syria to end the conflict there but they remained at odds over what part President Bashar al-Assad might play in the process.

Peace envoy Kofi Annan said after the talks in Geneva on Saturday the government should include members of Assad's administration and the Syrian opposition and that it should arrange free elections.

"Time is running out. The conflict must be resolved through peaceful dialogue and negotiations," Annan told reporters.

The talks had been billed as a last-ditch effort to halt the worsening violence in Syria but hit obstacles as Russia, Assad's most powerful ally, opposed Western and Arab insistence that he must quit the scene.

The final communiqué said the transitional government should be formed "on the basis of mutual consent".

In a victory for Russia, it omitted text in a previous draft which explicitly said the plan would exclude from government anyone whose participation would undermine the transition's credibility and jeopardize stability and reconciliation.

After the meeting, the United States and Russia contradicted each other over what that meant for Assad, who has ruled Syria for 11 years since succeeding his father Hafez and has been condemned internationally for the ferocity of his crackdown on the uprising against him.

Russian Foreign Minister Sergei Lavrov said he was "delighted" with the result. The key point was that the deal did not attempt to impose a process on Syria, he said

It did not imply at all that Assad should step down as there were no preconditions excluding any group from the proposed national unity government, Lavrov said.

But U.S. Secretary of State Hillary Clinton said it sent a clear message to Assad that he must quit.

"Assad will still have to go," Clinton told reporters. "What we have done here is to strip away the fiction that he and those with blood on their hands can stay in power."

Annan convened the meeting at the United Nations complex on the shores of Lake Geneva to salvage a peace plan that has largely been ignored by the Assad government. He said at the opening that the conflict was in danger of growing into a regional and international crisis.

At its conclusion, the Nobel peace laureate fielded a question on whether people with blood on their hands could be part of a transitional government by saying:

"I would doubt that the Syrians who have fought so hard for their independence to be able to have a say in how they are governed and who governs them will select people with blood on their hands to lead them.

"I cannot say that I am really happy but I am content with the outcome today."

Annan's plan for a negotiated solution to the 16-month-old conflict is the only one on the table. More than 10,000 people have been killed since the anti-Assad uprising began and the past few weeks have been among the bloodiest.

Assad's government forces killed more than 30 people in Damascus on Saturday when they fired a mortar bomb into a funeral procession for a man who died in shelling a day before, said opposition activists.

Government forces pushed their way into Douma on the outskirts of the capital after weeks of siege and shelling. Fleeing residents spoke of corpses in the streets.

Britain's ITV showed footage of clouds of black smoke over houses and said warplanes had struck at targets there.

The army also attacked pro-opposition areas in Deir al-Zor, Homs, Idlib and the outskirts of Damascus, activists said.

BRAVE FACE

The foreign ministers of the U.N. Security Council's five permanent members - Russia, the United States, China, France and Britain - all attended the Geneva talks along with Turkey, Kuwait, Qatar, U.N. Secretary-General Ban Ki-moon, Arab League head Nabil Elaraby and EU foreign policy chief Catherine Ashton.

Notably absent from the guest list were Iran, Syria's closest regional ally, and Saudi Arabia, a foe of both Damascus and Tehran and leading backer of the rebel forces. Nor was anyone from the Syrian government or opposition represented.

British Foreign Minister William Hague put a brave face on the Western compromise.

"These have been difficult talks as you can gather from the fact that we've spent more than nine hours discussing it. I think the result is a step forward, it is only a step forward but it is a step forward that is worth having," he said.

He welcomed the fact that Russia and China had signed up to the idea for a transitional government. But he lamented that no agreement had been reached on the question of arms sales to Syria and any future action, including sanctions, at the Security Council.

The agreement also called for people to be free to demonstrate peacefully and the release of political detainees as well as an immediate halt to the violence.

Middle East analyst Hayat Alvi of the U.S. Naval War College said he doubted the Assad government would accept the plan and enforcement of it would be almost impossible.

"The U.S. and other Western powers will not find any flexibility on the part of the Syrian regime, and its allies, namely Russia," he told Reuters from the United States.

"The proof is in the Assad regime's continuous acts of violence against the Syrian people, even while the diplomatic wheels have been turning. The wheels clearly are going in circles without moving forward."

That would likely be the scenario for months as long as Russia continued to support the Syrian government, Alvi said.

The conflict has evolved from peaceful protests against the Assad family's four-decade rule to something akin to a civil war with a sectarian dimension.

The British-based Syrian Observatory for Human Rights said at least 56 people were killed across Syria on Saturday.

Syria's border with Turkey was also tense after a Turkish military build-up in response to Syria's shooting down of a Turkish warplane last week.

A Syrian witness said Turkish forces stationed on the border opposite the Syrian town of Jandaris fired machineguns in the air in response to Syrian army bombardment of rebel areas.

(Reporting by Andrew Quinn, Tom Miles, Stepahnie Nebehay, Robert Evans and Emma Farge in Geneva, Oliver Holmes and Mariam Karouny in Beirut, Peter Apps in London; Writing by Angus MacSwan; Editing by Ralph Gowling)

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Reuters: Most Read Articles: Lethal eastern U.S. storms kill 12; millions lose power

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Lethal eastern U.S. storms kill 12; millions lose power
Jul 1st 2012, 03:14

People survey storm damage in the Capitol Hill neighborhood in Washington, June 30, 2012. Wind gusts clocked at speeds of up to 79 mph were reported in and around the U.S. capital, knocking out power to hundreds of thousands of homes in the Washington area. REUTERS/Jonathan Ernst

1 of 12. People survey storm damage in the Capitol Hill neighborhood in Washington, June 30, 2012. Wind gusts clocked at speeds of up to 79 mph were reported in and around the U.S. capital, knocking out power to hundreds of thousands of homes in the Washington area.

Credit: Reuters/Jonathan Ernst

By Ian Simpson

WASHINGTON | Sat Jun 30, 2012 11:14pm EDT

WASHINGTON (Reuters) - Millions of people across the eastern United States baked in record heat on Saturday after deadly thunderstorms downed powerlines from Indiana to Maryland, killing at least 12 people and leaving over 3 million homes and businesses without power.

Emergencies were declared in Washington D.C., Ohio, Virginia and West Virginia because of damage from overnight storms, which unleashed hurricane-force winds across a 500-mile (800-km) stretch of the mid-Atlantic region.

President Barack Obama on Saturday authorized the Federal Emergency Management Agency, or FEMA, to coordinate all disaster relief efforts in the storm-ravaged Ohio.

The storms' rampage was followed by roasting temperatures that topped 100 Fahrenheit (37 Celsius) in several southern cities, including Atlanta, where the mercury hit 106 degrees (41 Celsius), and Charlotte, North Carolina, where it reached 102 F (38 C), according to Accuweather.com.

Restoring power in some areas could take up to a week. Utilities in Ohio, Virginia and Maryland described storm damage to their power grids as catastrophic.

"It's going to be a while before some folks get power, and with the heat, that's our big concern," said Bob Spieldenner, a spokesman for the Virginia Department of Emergency Management.

Six people were killed in Virginia in storm-related incidents, and more than 1 million customers were left without power in the worst outage not linked to a hurricane in the state's history, he said.

Two Maryland residents died in the storm, one struck by a falling tree in Anne Arundel County, the other electrocuted after a tree crashed into a house in Montgomery County, said state emergency management agency spokesman Edward Hopkins.

In New Jersey, two cousins aged 2 and 7 were killed by a falling tree in a state park. And in eastern Tennessee, heat was blamed for the deaths of two brothers, ages 3 and 5, in Bradley County. They had been playing outside in 105-degree heat.

In Maryland, about 800,000 customers were without power with outages reported throughout the state, Hopkins said.

Several high voltage transmission lines that carry power long distances were significantly damaged by the storm, he said. "In many cases, it could take up to five to six days for the restoration of services to those lines," he added.

Ohio, where one storm-related death was reported, faced similar difficulties. Outages hit two-thirds of the state with about 1 million homes and businesses left without electricity. Governor John Kasich said it could take a week to fully restore power.

West Virginia was also hard hit by storm-related outages, with about 614,000 customers without power, said Terrance Lively, spokesman for the state emergency management agency.

FEELING THE HEAT

Further north, the storm caused outages from Indiana, where 135,000 customers lost power, to New Jersey where Atlantic County declared a state of emergency and at least 206,000 customers were without power.

The storm also knocked out Amtrak passenger rail service between Washington and Philadelphia, Amtrak said.

Power companies called in crews from utilities in neighboring states to help restore electricity.

The widespread power outages came as the National Weather Service forecast more heat and severe thunderstorms across the Ohio Valley, through the mid-Atlantic states and into New York.

Blazing temperatures in New York, where thermometer readings were in the 90s on Saturday, came ahead of a possible strike by 8,500 Consolidated Edison workers over a new contract.

The union membership has authorized its leaders to call a strike at midnight Saturday, when their collective bargaining agreement expires.

If the 8,500 Con Ed workers do walk off, that would leave managers and any crews the company can hire to fix whatever problems arise as 8.2 million New Yorkers crank up their air conditioners to beat the heat.

Up and down the East Coast, state and local officials urged residents to seek air-conditioned spaces, drink lots of water and wear light-colored clothing. They also called on people to watch out for those most vulnerable to high heat - the elderly, small children and the mentally ill.

"Our biggest concern right now is temperatures going up to 100 degrees today," said Ed McDonough, spokesman for the Maryland emergency management agency.

Records for June were broken on Friday in Washington, Atlanta, Nashville, Tennessee and Louisville, Kentucky. The temperature hit at least 104 F (40 C) in all four cities, according to the National Weather Service.

The high heat prompted the AT&T National golf tournament at the Congressional Country Club in Bethesda, Maryland, to close the competition to spectators and volunteers on Saturday.

Weather even struck the Internet. The storms disrupted power for Amazon.com Inc cloud computing operations and disrupted online services such as the video streaming website Netflix, photo sharing company Instagram and online pinboard Pinterest, the Wall Street Journal reported.

A representative from Amazon could not be reached for comment. Netflix and Pinterest reported on their Twitter pages by early Saturday that they had resolved their problems.

(Additional reporting by Alex Dobuzinskis in Los Angeles, Paul Thomasch in New York, Susan Guyett in Indianapolis, Tim Ghianni in Nashville and Alistair Bull in Washington; Editing by Tim Gaynor and Todd Eastham)

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Reuters: Most Read Articles: Ruling ups support for Obama healthcare, still unpopular

Reuters: Most Read Articles
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Ruling ups support for Obama healthcare, still unpopular
Jul 1st 2012, 04:08

Supporters of the Affordable Healthcare Act celebrate in front of the Supreme Court after the court upheld the legality of the law in Washington June 28, 2012. REUTERS/Joshua Roberts

1 of 2. Supporters of the Affordable Healthcare Act celebrate in front of the Supreme Court after the court upheld the legality of the law in Washington June 28, 2012.

Credit: Reuters/Joshua Roberts

By Patricia Zengerle

WASHINGTON | Sun Jul 1, 2012 12:08am EDT

WASHINGTON (Reuters) - Voter support for President Barack Obama's healthcare overhaul rose after the U.S. Supreme Court upheld it but most people still oppose the law, according to a Reuters/Ipsos poll on Sunday.

The online survey showed increased backing from Republicans and, crucially, the political independents whose support will be essential to winning the November 6 presidential election.

Thirty-eight percent of independents support the healthcare overhaul in the poll conducted after the court ruled Thursday the law was constitutional. That was up from 27 percent from a Reuters/Ipsos poll taken days before the justices' ruling.

Among all registered voters, support for the law rose to 48 percent, from 43 percent before the court decision.

"This is a win for Obama. This is his bill. There's not really any doubt in people's minds, that it belongs to him," said Julia Clark, vice president a Ipsos Public Affairs. "It's his baby. It's literally been labeled Obamacare ... which maybe it works in his favor now that there's a little bit of a victory dance going on."

Republican opposition to the law stayed strong, if somewhat weaker than before the High Court ruled. Eighty-one percent of Republicans opposed it in the most recent survey, down from 86 percent in the poll conducted June 19-23.

Underscoring the intense polarization on the issue, three-quarters of Democrats backed the bill, the same as a week earlier.

FANNING OPPOSITION'S FLAME

In some good news for Republicans, the Supreme Court ruling is energizing opposition to the 2010 healthcare overhaul.

In the new poll, more than half of all registered voters - 53 percent - said they were more likely to vote for their member of Congress if he were running on a platform of repealing the law, up from 46 percent before the ruling.

"This is galvanizing both sides," Clark said.

Obama's Republican challenger, Mitt Romney, has made it clear that he will run against "Obamacare." Within hours of the Supreme Court's ruling, the former Massachusetts governor asked voters to throw Obama out of office to get rid of the law, which he promises to repeal and replace if he wins the White House in November.

There have been some early signs that appeal is working. On Friday, Romney's campaign said the former Massachusetts governor raised $4.6 million in the 24 hours following the Supreme Court's decision.

Romney has offered few specifics on how he would replace the Obama reforms, although he said he would work to retain popular provisions such as blocking insurance companies from forbidding coverage of patients with pre-existing medical conditions.

The Reuters/Ipsos poll showed little change in the strong support for that and most of the other major provisions of the bill, including requiring companies with more than 50 employees to provide insurance for their employees and allowing children to stay on their parents' insurance until age 26.

Most Americans still oppose the requirement that U.S. residents own health insurance, the so-called "individual mandate," which the Supreme Court found was constitutional under the government's right to impose taxes.

Despite the court labeling the mandate a tax - which Republicans have seized on in campaigning against Obama - the new survey found support for it unchanged. Thirty nine percent of all Americans backed the mandate, compared with 61 percent who opposed it.

Obama has credited the state plan Romney instituted as Massachusetts governor, which used a system of subsidies and mandates to expand health coverage, as a blueprint for his national plan.

The survey interviewed 991 Americans online from June 28-30. The precision of the Reuters/Ipsos online polls is measured using a credibility interval. In this case, the poll has a credibility interval of plus or minus 3.6 percentage points.

(Editing by Alistair Bell and Doina Chiacu)

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Reuters: Most Read Articles: Mormons quit church in mass resignation ceremony

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Mormons quit church in mass resignation ceremony
Jul 1st 2012, 01:45

Chelsea Bair reads a declaration of independence from Mormonism during a mass resignation of Mormons from The Church of Jesus Christ of Latter Day Saints in Salt Lake City June 30, 2012. REUTERS/Jeffrey D. Allred

1 of 11. Chelsea Bair reads a declaration of independence from Mormonism during a mass resignation of Mormons from The Church of Jesus Christ of Latter Day Saints in Salt Lake City June 30, 2012.

Credit: Reuters/Jeffrey D. Allred

By Jennifer Dobner

SALT LAKE CITY | Sat Jun 30, 2012 9:45pm EDT

SALT LAKE CITY (Reuters) - A group of about 150 Mormons quit their church in a mass resignation ceremony in Salt Lake City on Saturday in a rare display of defiance ending decades of disagreement for some over issues ranging from polygamy to gay marriage.

Participants from Utah, Arizona, Idaho and elsewhere gathered in a public park to sign a "Declaration of Independence from Mormonism."

"This feels awesome," said Alison Lucas, from West Jordan, Utah, who took part in the rally amid soaring temperatures. "I don't know if I would have had the courage except in a group."

The Utah-based Church of Jesus Christ of Latter-day Saints is known for its culture of obedience, and the mass ceremony was a seldom-seen act of collective revolt.

After gathering in the park, participants hiked a half-mile up nearby Ensign Peak, scaled in 1847 by church President Brigham Young to survey the spot where his Latter-day Saints would build a city.

At the top, those gathered gave three loud shouts of "Freedom," cheered, clapped and hugged.

"It's been a hard journey and this is a symbolic end," said event organizer Zilpha Larsen, of Lehi, Utah. "I just hope that it boosts people up and helps them feel more comfortable in their decision."

The church bills itself as the one "true" Christian faith, and its theology promises families eternal relationships among those who remain faithful, sealing those gifts through special religious rites.

Among the reasons cited by those resigning are the church's political activism against gay marriage and doctrinal teachings that conflict with scientific findings or are perceived as racist or sexist.

Others cite inconsistencies in the Mormons' explanation of its own history, including the practice of polygamy. The church renounced plural marriage over a century ago as Utah was seeking statehood.

Asked about the resignations, a church spokesman said the church loves and respects each member.

"People make their own decisions about the direction they will follow in life," spokesman Michael Purdy said in an email. "While there are very few who take this action, it is sad to see someone choose to leave. We wish them well."

The most recent figures show the Mormon church claims 14.4 million members worldwide. The number of those resigning from the church are not publicly reported.

Among prominent Mormons is Mitt Romney, the presumptive Republican presidential nominee facing off against President Barack Obama in November. Should he win office, Romney would be the first Mormon elected to the White House.

'WE HAVE TO BE CAREFUL'

Some leaving the church Saturday did so with trepidation, as Mormon culture often stigmatizes those who fall away, leaving some without social or business connections.

"It's hard, so we have to be very careful," said Robin Hansen, a participant who said she quit over a "culture of abuse" which she believes is cultivated by church teachings promoting obedience.

Hansen said her husband had not joined her in leaving the faith because he works in a church-related business and could lose his job if he doesn't maintain his membership.

To resign from the church, Mormons must submit a formal letter asking their names be removed from church rolls, a church instructional handbook for lay leaders published on the Internet in 2010 shows.

On Saturday, participants filled a basket with their letters for mailing by Larsen, who split with the church over doubts about the veracity of a translation of ancient Egyptian writings which are included in sacred Mormon texts.

A sixth-generation Mormon, Kris Fielding, 35, traveled from Phoenix for the resignation event in part to represent those who do not yet have the courage to do so, he said, including his wife, who worries about reaction from their families.

Married in a Mormon temple, Fielding said the couples shared disaffection from their faith is tied in part to their local church leader's response to questions Fielding had about polyandry and polygamy - taking multiple husbands and wives - in the early church.

"I went to him looking for a faithful perspective. He called my wife and told her she needed to find a new husband," Fielding said.

He said he felt relief after his decision.

"The monkey's off the back ... I don't feel like I have to explain myself or the positions of the church anymore."

(Editing by Tim Gaynor and Doina Chiacu)

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Reuters: Most Read Articles: Tables turn as Egypt's Islamist president sworn in

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Tables turn as Egypt's Islamist president sworn in
Jun 30th 2012, 19:00

Egypt's first Islamist president Mohamed Mursi attends his swearing in ceremony in this still image from a video footage in Cairo June 30, 2012. Mursi took his oath of office on Saturday, ending six decades of rule by former military men although the generals in charge since Hosni Mubarak was ousted last year have already curbed his powers. REUTERS/Egyptian Television via Reuters TV

1 of 3. Egypt's first Islamist president Mohamed Mursi attends his swearing in ceremony in this still image from a video footage in Cairo June 30, 2012. Mursi took his oath of office on Saturday, ending six decades of rule by former military men although the generals in charge since Hosni Mubarak was ousted last year have already curbed his powers.

Credit: Reuters/Egyptian Television via Reuters TV

By Edmund Blair

CAIRO | Sat Jun 30, 2012 3:00pm EDT

CAIRO (Reuters) - In a day full of memorable images, none on Saturday was more powerful than that of Egypt's first Islamist president, Mohamed Mursi, flanked by generals at a military parade where he was formally handed authority to govern the nation.

For six decades, Mursi's seat had been filled by presidents drawn from the ranks of the military. And for half that time, it was occupied by one man, Hosni Mubarak, a former air force chief who hounded and jailed members of Mursi's Muslim Brotherhood.

Now the tables are turned, even if the presidential office Mursi holds has been shorn by the generals of many of powers Mubarak and his predecessors enjoyed.

"We have kept the promise that we made before God and the people. Now we have an elected president who takes over the keys for ruling Egypt through a direct and free vote," said Field Marshal Hussein Tantawi, addressing his guest as "Mr President".

Before that, state television showed Tantawi, Egypt's top general and Mubarak's loyal defense minister for 20 years, welcoming Mursi as he stepped out of a black sedan at the desert base with a hurried salute before shaking his hand.

It was not just the military ceremony that oozed symbolism.

Mursi addressed the nation from the same stage in Cairo where U.S. President Barack Obama had in 2009 appealed to Arab autocrats to open up. Egypt's new leader was sworn in at a court next to the hospital where imprisoned Mubarak is being treated.

But it was the scene at Heikstep military base that captured Egypt's dramatic transformation most clearly with images unthinkable a year-and-a-half ago before Arab uprisings challenged autocrats who had ruled the region for generations.

"A picture for history: a civilian president in the middle of the military," wrote Dima Khatib on Twitter, one of the social networking sites that was used to galvanize the masses against Mubarak, toppling him on February 11, 2011 after 18 days.

MILITARY HONOURS

Mursi was given a 21-gun salute, helicopters flew past to honor him and troops stood to attention in serried ranks.

Those acts of respect did not however signal generals were retiring to barracks to leave civilians completely in charge.

In a decree issued as this month's run-off presidential elected ended, the military council declared the next president would not command the armed forces and could not declare war alone. It also said the army would have legislative powers until a new parliament is elected to replace one dissolved this month.

But the ceremony showed the military, one of the few state institutions to survive the post-Mubarak turmoil intact, now has to accept that its erstwhile adversary, the Brotherhood, has a popular mandate to help determine Egypt's future.

"The Egyptian people and the ... world are witnessing a unique model, not seen before, of how power is transferred from the Egyptian military forces by the will of the people to an elected, civilian power," Mursi said, hailing the military, but also sending a clear message to the men in uniform.

Tantawi shook Mursi's hand firmly as he handed him a plaque bearing a military shield. Mursi then joined a gaggle of senior officers who lined up around him for a group photo.

Mursi had earlier delivered a speech at Cairo University on the same podium from which Obama addressed the Arab and Muslim world early in his presidency, reaching out to a region angry at U.S.-led wars in Afghanistan and Iraq over the previous decade.

"America respects the right of all peaceful and law-abiding voices to be heard around the world, even if we disagree with them," Obama told the audience at the time.

Yet when protests against Mubarak erupted on January 25, 2011, many Egyptians were dismayed by how long it took Obama to ditch the president who had become a linchpin ally in the region and guardian of the U.S.-sponsored peace treaty with Israel.

CHANTS AND COUNTER-CHANTS

Washington, long wary of political Islam, took several more months before opening formal channels to the Brotherhood.

The Brotherhood was itself slow to send supporters onto Cairo's streets in the uprising, anxious to avoid a crushing response from Mubarak's police after being bruised by earlier crackdowns that the group had struggled to survive.

But the Brotherhood has emerged as the biggest beneficiary of a revolt ignited by young, secular liberals.

In his speech Mursi pledged to serve the whole nation and secure rights for the families of those killed in the uprising.

"Free revolutionaries, we will complete our journey," some in the audience chanted as he wrapped up his address.

Tantawi joined guests in the university hall, applauding when Mursi lauded the armed forces, seated alongside Christian priests, Muslim preachers, veiled women and suited men.

"Down with military rule," some had briefly chanted when Tantawi entered, before an official guided those present towards a more respectful: "The army and people, one hand."

Mursi had pulled up in a cavalcade, but unlike in Mubarak's day, the whole capital was not brought to a grinding halt by police blocking every road to clear the president's route.

Cars passed freely along the Nile-side road in front of the Supreme Constitutional Court even as Mursi swore his oath.

The oath is usually held before parliament, but the location was forced on the Brotherhood man after the same constitutional court, stuffed with judges appointed in Mubarak's era, dissolved the Islamist-led parliament, a ruling the army swiftly enforced.

Yet the venue carried its own mordant twist, standing next to Maadi military hospital where Mubarak, jailed for life for failing to stop the killing of protesters, is being treated. He was moved there from a prison medical centre last week.

In that same Maadi hospital set in lush gardens, Mubarak's predecessor Anwar Sadat was pronounced dead after Islamists gunned him down in 1981. The exiled shah of Iran died there after the 1979 Islamic revolution.

(Editing by Alistair Lyon)

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Reuters: Most Read Articles: Merkel seen as big loser in euro zone showdown

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Merkel seen as big loser in euro zone showdown
Jun 30th 2012, 14:50

German Chancellor Angela Merkel looks on before delivering a government policy statement in the German lower house of parliament, the Bundestag, in Berlin, June 29, 2012. REUTERS/Thomas Peter

German Chancellor Angela Merkel looks on before delivering a government policy statement in the German lower house of parliament, the Bundestag, in Berlin, June 29, 2012.

Credit: Reuters/Thomas Peter

By Erik Kirschbaum and John Irish

BERLIN/PARIS | Sat Jun 30, 2012 10:50am EDT

BERLIN/PARIS (Reuters) - Angela Merkel was portrayed across Europe as the big loser of a euro zone showdown in Brussels after the German chancellor was forced to accept the crisis-fighting measures championed by countries struggling with their debts.

Newspapers in Spain, Italy and France on Saturday toasted the triumph of their leaders - Mario Monti, Mariano Rajoy and Francois Hollande - in pushing Merkel into a U-turn that would long have been unthinkable.

Even German newspapers said Merkel had been made to accept demands for the euro zone rescue fund to be able to inject aid directly into stricken banks from next year and intervene on bond markets to support troubled member states.

"There's no doubt about it - the chancellor was blindsided at the euro summit," wrote influential columnist Nikolaus Blome of Bild, a daily with 12 million readers.

The summit ended on Friday with agreement on new steps to try to prevent a catastrophic breakup of the single currency.

Popular at home for insisting on austerity measures and tough conditions for those indebted euro zone states getting help, Merkel was quick to put a positive spin on the summit, telling reporters: "We had an interest in finding solutions."

There was no sign that the summit had damaged her reputation on Friday as both houses of parliament voted to back the euro zone's permanent bailout scheme. And Merkel does not face any particular political challenge at the moment.

But the concessions of "Frau Nein" were far bigger than earlier compromises in the name of saving the euro.

"Merkel caves in - money for ailing banks," read the headline on Germany's left-leaning Sueddeutsche Zeitung.

Bild wrote: "Italy and Spain got what they wanted: It'll be easier to borrow excessively again... It was the first time in more than two crisis years that euro states didn't follow Germany's orders."

Footballing comparisons have been widespread after Italy knocked Germany out of the Euro 2012 tournament in a shock 2-1 victory on Thursday.

"This time it was worse, the defeat was about the euro," said respected Deutschlandfunk radio.

'1-0 TO HOLLANDE'

In France, left-leaning daily Liberation had a front page splash showing Hollande and Merkel dressed in their national football shirts with "1-0 to Hollande" over the top. It devoted its first four pages to his summit triumph.

Liberation said it was the pressure from Hollande, Monti and Rajoy that made Merkel buckle and accept a growth plan and banking union mechanism. It applauded his negotiating prowess.

"The night the South made Merkel cave in," was the headline over a Liberation report on the Brussels summit.

France's right-leaning daily Le Figaro called Spain and Italy the real winners. "Just like in football, it is thanks to Italy and Spain that the dynamics of the match have changed and that Angela Merkel has been forced back against the wall."

Italy's leading daily, Corriere della Sera, captured the euphoric mood in Italy. A front-page cartoon "A super Mario in Brussels too" showed Monti in the triumphant clenched-fists pose of Italy striker Mario Balotelli after his second goal against Germany. The diminutive figures of an annoyed-looking Merkel and a meek-looking Hollande watch him.

"Italy is not just a great team, it's a great country and it may be good to remember it," the paper wrote, giving credit to Monti for making Italy a leading player in Europe again.

Left-leaning daily La Repubblica noted that after four years during which Germany had "dictated both the music and the lyrics" at euro zone summits, three of the four main countries had refused to dance to Merkel's beat.

"Although the Chancellor retains her undisputed primacy at the heart of the Council, she was forced to listen to them."

Spanish newspapers saw a victory too - particularly in the fact that inspectors from the European Union, International Monetary Fund and European Central Bank would not put Spain under the same scrutiny as countries bailed out earlier.

But El Mundo noted that as Spain gets support for its troubled banks: "the Men in Black... will be atop the Pyrenees watching over everything we do."

In bailed-out Portugal, Publico newspaper mocked Merkel's U-turn, saying: "Nein! Non! No! Yes!".

In the northern European countries aligned with Germany in demanding tough measures for indebted countries getting help, Merkel was also identified as the loser with the softening of terms for the most indebted.

"The southern euro countries are taking the north hostage," wrote Dutch financial daily Het Financieele Dagblad. (Additional reporting by James Mackenzie in Rome, Nigel Davies in Madrid, Andrei Khalip in Lisbon and Gilbert Kreijger in Amsterdam; writing by Erik Kirschbaum in Berlin; Editing by Matthew Tostevin)

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Friday, June 29, 2012

Reuters: Most Read Articles: Storm hits Washington DC area, thousands without power

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Storm hits Washington DC area, thousands without power
Jun 30th 2012, 03:58

WASHINGTON | Fri Jun 29, 2012 11:58pm EDT

WASHINGTON (Reuters) - A powerful storm hit the U.S. capital on Friday, downing trees with wind gusts of up to 79 miles per hour, topping hurricane force levels and knocking out power to hundreds of thousands of homes in the Washington area.

WJAL Television reported one fatality in Fairfax County, Virginia, after a tree fell on a car.

Bands of rain lashed the city and winds toppled power lines and littered the streets with tree limbs as the fast-moving storm, which started in the Midwest after a day of severe heat, reached Washington and its suburbs late in the evening.

WTOP radio said more than 800,000 people in the Washington area were without power.

The Washington Post said it had reports of winds gusting up to 79 miles per hour in Reston, Virginia.

There were power outages in several Washington Metro stations, the Post said, after a day of extreme heat across the southern and eastern United States.

A flash flood warning was issued in Fredrick County, Maryland, until 1:15 a.m. on Saturday, and severe storm warnings were issued in areas between Washington and the Chesapeake Bay to the east.

WUSA television in Washington said "thousands of trees" and tree branches were likely downed by the storm.

The storms had swept across much of the Midwest during the afternoon and early evening, moving at speeds estimated at 50 mph.

Temperature records for the month of June were broken on Friday in Washington, Atlanta and Louisville, Kentucky. In all three cities, the temperature hit at least 104 F (40 C), according to the National Weather Service.

(Reporting by Mohammad Zargham and Eric Walsh; editing by Todd Eastham)

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Reuters: Most Read Articles: Students who viciously bullied bus monitor suspended for a year

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Students who viciously bullied bus monitor suspended for a year
Jun 30th 2012, 02:26

By Chris Francescani

NEW YORK | Fri Jun 29, 2012 10:26pm EDT

NEW YORK (Reuters) - Four New York seventh graders whose bullying of a bus monitor grandmother went viral on YouTube have been suspended from school for a year, a school district official said on Friday.

The students will be sent to a non-school facility where they will be tutored academically.

They will be required to complete 50 hours of community service with senior citizens and will receive formal behavioral training, according to a statement from the head of the Greece Central School District in upstate New York.

The YouTube cellphone video, which has been viewed more than 7 million times, shows four young teens lobbing vicious insults at 68-year-old Karen Klein, bringing her to tears.

The incident occurred June 18th. The video was posted to YouTube on June 20th and public reaction was swift.

Disney offered Klein a trip to Disney World in California and Southwest Airlines volunteered to pay for flights for Klein and her eight grandchildren. She was also given a free week-long vacation to the Hilton Sandestin Beach Golf Resort in Florida.

An online appeal for donations to Klein topped $650,000 earlier this week.

Television couldn't get enough of Klein this week. She appeared on ABC's "Good Morning America" and NBC's "Today" on Thursday morning, and with Anderson Cooper on CNN and on Fox News' "Fox & Friends" later Thursday.

In the 10-minute video, entitled "Making the Bus Monitor Cry," the students taunt Klein, a widow, mercilessly.

At one point, a student tells Klein "you don't have a family because they all killed themselves.

"They don't want to be near you!"

Klein told NBC News she does not know whether the students were aware that her oldest son committed suicide ten years ago.

The four students involved, whose last names have not been released, do not face criminal charges. Their families have agreed to allow the school district to publicly announce the results of an internal investigation.

"Each of the students involved admitted wrongdoing, accepted the recommended consequences and agreed to permit the district to publicly release the terms of the disciplinary action,'' Greece Central School District Superintendent Barbara Deane-Williams said in the statement.

(Reporting By Chris Francescani; Additional reporting by Joseph O'Leary; Editing by Greg McCune and Todd Eastham)

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Reuters: Most Read Articles: Mexico extradites suspect in U.S. consulate killing

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Mexico extradites suspect in U.S. consulate killing
Jun 30th 2012, 03:08

MEXICO CITY | Fri Jun 29, 2012 11:08pm EDT

MEXICO CITY (Reuters) - Mexico has extradited a drug gang leader to face charges that he played a key part in the daylight execution of a U.S. consulate employee two years ago, officials said on Friday.

Arturo Gallegos is suspected of ordering the killing of a U.S. consulate worker on the streets of Ciudad Juarez in an ongoing effort by the Barrio Azteca drug gang to control a smuggling route, officials said.

He was handed over to U.S. law enforcement officials earlier this week, according to a statement from the Mexican attorney general's office.

Local authorities have said the gang ordered the killing on the northern border because the consular officer was thought to have given visas to members of a rival gang, although this might have been a case of mistaken identity.

Two other people, including the woman's American husband, were shot dead in their cars in the two coordinated attacks in March 2010.

Mexico has extradited and U.S. courts have already convicted several men accused of playing a part in the killings.

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Reuters: Most Read Articles: Oil posts fourth biggest daily gain on record

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Oil posts fourth biggest daily gain on record
Jun 29th 2012, 20:43

Fuel pumps are seen at a Cepsa Petroleum petrol station in Cuevas del Becerro, near Malaga, southern Spain March 4, 2011. REUTERS/Jon Nazca

Fuel pumps are seen at a Cepsa Petroleum petrol station in Cuevas del Becerro, near Malaga, southern Spain March 4, 2011.

Credit: Reuters/Jon Nazca

By David Sheppard

NEW YORK | Fri Jun 29, 2012 4:43pm EDT

NEW YORK (Reuters) - Oil surged on Friday in heavy trading to the fourth biggest daily gain on record, as a deal by European leaders to shore up euro zone banks triggered frantic short-covering by funds that had been riding crude's price collapse over the last quarter.

Despite the sharp gains, both international benchmark Brent and U.S. oil futures posted their biggest quarterly declines since the fourth quarter of 2008 due to weak demand, ample supply and economic worries.

Oil's gains for the day came as part of a wider market rally, with the euro and world stocks rising after euro zone leaders agreed on measures to cut soaring borrowing costs in Italy and Spain and recapitalize regional banks.

Brent crude oil futures rose more than $6 a barrel to near $98 while U.S. crude jumped by more than $7 to settle just below $85 a barrel -- the fourth largest daily gains in dollar terms since the contracts were launched.

Crude drew further support from a strike in Norway that cut production of oil and natural gas liquids by 230,000 to 250,000 barrels per day, or up to 13 percent of the capacity of the world's No. 8 crude exporter.

"The NYMEX just went wild. It never looked back. Just up, up and away." said John Troland, an independent energy advisor in Houston, referring to the New York Mercantile Exchange where benchmark U.S. crude oil futures trade.

Throughout the second quarter, hedge funds and other speculators had bet big on lower oil prices. Speculators cut their net long positions by more than half over the quarter, according to data from the U.S. Commodity Futures Trading Commission.

In addition to mounting euro zone worries, oil prices came under pressure in recent months from weaker demand and swelling global inventories as Saudi Arabia boosted output to quell concern about the drop in exports from sanction-hit Iran.

"We had significant second-quarter trends that may all be in the process of reversing, including the risk off trade triggered by the EU instability," said Tim Evans, energy analyst for Citi Futures Perspective, adding oil demand is normally seasonally stronger in the second half of the year.

"What has changed today is the market sentiment, the fundamentals may evolve at a more glacial pace."

Brent crude oil rose $6.44 to settle at $97.80 a barrel, a gain of 7.05 percent and the biggest one day rise since April 2009. Brent started the second-quarter at $122 a barrel.

U.S. crude rose $7.27 to settle at $84.96 a barrel, a gain of 9.36 percent - the biggest since March 2009. U.S. crude started the second-quarter at $103 a barrel.

Brent volume was almost 20 percent above the 30-day average, while U.S. crude futures saw turnover 36 percent above the 30-day average.

Front-month U.S. July RBOB gasoline rallied 4.3 percent while heating oil surged 5.7 percent. Both contracts expired on Friday.

The euro zone optimism swept across commodities markets, with the Thomson Reuters-Jefferies CRB index .CRB up about 3 percent.

THIRD-QUARTER

Analysts said Friday's move could portend stronger fundamentals for oil for the rest of the year as sanctions against Iran cut the OPEC member's output.

"Given it's the last day of the quarter we might be seeing some rebalancing and short-covering (by funds) after the falls we've seen," said Katherine Spector, commodity strategist at the Canadian Imperial Bank of Commerce in New York.

"The supply-and-demand balance looks better for the second half of this year, so we expect to see prices move higher from here. We think there will be further reductions in Iran's exports and at the same time other OPEC members are likely to reign in production slightly."

OPEC's oil output has remained close to its highest since 2008 in June as extra oil from Saudi Arabia and Iraq has compensated for a drop in Iranian supply to its lowest level in more than two decades, a Reuters survey found on Friday.

U.S. and European sanctions, designed to target Tehran's disputed nuclear program, have pushed Iran from second-largest producer in OPEC to now rank third behind Iraq. Iran's crude is subject to a European Union embargo starting on July 1 that also bars EU insurance firms from covering Iran's exports.

Saudi Arabia, OPEC's largest producer, has increased its output to 10.1 million bpd to help make up for the shortfall from Iran.

(Additional reporting by Robert Gibbons and Gene Ramos in New York, Jessica Donati in London and Manash Goswami in Singapore. Editing by Dale Hudson, David Gregorio, and Matthew Robinson)

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Reuters: Most Read Articles: Katie Holmes files for divorce from Tom Cruise

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Katie Holmes files for divorce from Tom Cruise
Jun 29th 2012, 18:36

Actor Tom Cruise and his wife, actress Katie Holmes, arrive at the 2012 Vanity Fair Oscar party in West Hollywood, California February 26, 2012.

Credit: Reuters/Danny Moloshok

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Reuters: Most Read Articles: Analysis: Republicans vow to take Holder to court

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Analysis: Republicans vow to take Holder to court
Jun 28th 2012, 22:33

U.S. Attorney General Eric Holder (L) and Chairman of the Senate Judiciary Committee Sen. Patrick Leahy talk on the South Lawn of the White House during a picnic for Members of Congress, hosted by U.S. President Barack Obama, in Washington June 27, 2012. REUTERS/Larry Downing

U.S. Attorney General Eric Holder (L) and Chairman of the Senate Judiciary Committee Sen. Patrick Leahy talk on the South Lawn of the White House during a picnic for Members of Congress, hosted by U.S. President Barack Obama, in Washington June 27, 2012.

Credit: Reuters/Larry Downing

By David Ingram and Drew Singer

WASHINGTON | Thu Jun 28, 2012 1:08am EDT

WASHINGTON (Reuters) - Perhaps as significant as any contempt citation Congress might issue Attorney General Eric Holder on Thursday is the prospect that Republicans will also go to court to enforce congressional demand for documents - a tactic pursued only twice before in U.S. history.

The Republican-led House of Representatives is due to vote on whether to charge Holder, the country's top law enforcement officer, with contempt of Congress for withholding documents in a botched gun-running sting operation on the U.S.-Mexico border.

But legal scholars say there is no practical way for Congress to get the documents except to go to court.

That will put a spotlight not only on Holder but also on his boss, President Barack Obama, who has claimed he can withhold the documents under executive privilege.

"The contempt citation will go away," said Todd Peterson, a law professor at George Washington University.

"Congress will probably file a lawsuit, in part hoping to find some judicial support but more because it's just another way to publicize the president's refusal to comply with their demands for documents," Peterson said.

Failure to obey a potential court order on the documents would expose Holder to a more serious contempt of court charge, though few expect it to come to that.

Critics complain that high-level legal jousting has become a sport in Washington, D.C., where partisan warriors look for any way to attack their foes.

In both previous cases where Congress went to court, the targets were Republican and the cases had some success. In 1974 a federal appeals court granted a Senate panel's demand for one of President Richard Nixon's tape recordings, although the case was later dismissed on other grounds.

A PRECEDENT

In 2008 Democrats, investigating whether the firings of nine U.S. attorneys were politically motivated, won an order that forced Bush administration aides, including former White House counsel Harriet Miers, to hand over documents and testify.

The aides had refused. The House voted to hold them in contempt and went to federal court in Washington, D.C., where Judge John Bates dismissed the aides' claim that they were "absolutely immune" from having to testify.

It was the first time in U.S. history that a court successfully ordered the White House to turn over information to Congress.

Bates declined to referee the fine points of what documents the White House needed to turn over. Instead he encouraged a negotiated settlement, and the sides reached a compromise one year after Democrats sued.

Now, Republicans are tearing a page from the same playbook to use against Holder, whose cabinet role puts him in charge of the U.S. Justice Department in Obama's Democratic administration.

The court action could entangle the Justice Department in an uncomfortable case and force the Obama administration to give new details of the unreleased documents.

The case pitting House Republicans against Holder would largely mirror the 2008 case, said Washington lawyer Stanley Brand, a former general counsel to the House.

"They'll take the lawsuit that was filed in the previous case, they'll change it to reflect the parties and the facts in this case, and they'll file it," Brand said. "They're following what I'd call the Miers precedent."

FAST AND FURIOUS

At issue is how Holder and the department responded to disclosures about a scheme codenamed Fast and Furious in which federal agents allowed potentially illegal gun purchases to go ahead in hopes of tracking the guns through Mexican drug cartels.

Republicans who disagree generally with Holder on the subject of gun rights say he has not been forthcoming about what he knew of the anti-trafficking program.

Holder says he is willing to negotiate with congressional investigators, although the Justice Department told Congress on June 20 that Obama was invoking executive privilege over the disputed documents.

A lawsuit would serve Republicans by keeping alive public discussion of the Fast and Furious episode, but it could be months before they would get additional documents.

"Even if the House wins the case in court, it's not actually winning. It takes so long to actually win in court," said Josh Chafetz, an associate law professor at Cornell University.

Holder might no longer be attorney general by then, if Republican Mitt Romney unseats Obama in the November 6 election or if Obama chooses a new attorney general for a second term.

In the meantime, a judge could force the Justice Department to disclose - at least to the court, in a document called a privilege log - further details of the documents it is withholding, Peterson said.

(Editing by Howard Goller and Fred Barbash)

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