Games top App Store revenue in 2012

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Gunman's Father and Brother Are 'in Shock,' Says a Source

By Diane Herbst

12/14/2012 at 08:50 PM EST

State police personnel lead children to safety away from the Sandy Hook Elementary School

Shannon Hicks/Newtown Bee/Reuters/Landov

The father and older brother of the gunman who was blamed for the Connecticut school shooting are being questioned by authorities but are not suspects, a law enforcement source tells PEOPLE.

The Associated Press reports that the gunman has been identified as 20-year-old Adam Lanza.

His unidentified father, who lives in New York City, and his older brother, Ryan, 24, of Hoboken, N.J., are "in shock," the law enforcement source tells PEOPLE.

They were being questioned by the FBI in the Hoboken police station but "are not suspects, they have no involvement," the source says.

"Imagine the 24 year old – he's lost his mother. Imagine the father, his son killed 20 kids," the source says."   

As for Adam, "It looks like there's mental history there," the law enforcement source says.

Adam Lanza died at the scene of the shooting that killed 20 children and six adults at the Sandy Hook Elementary School in Newtown, Conn.

His mother, Nancy Lanza, was found dead at her home, according to CNN.

The source describes the weapons used by Lanza as "legitimate." According to CNN, Lanza used two hand guns that were registered to his mother and a rifle.

Adam's parents were no longer together, the source says.   

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Study: People worldwide living longer, but sicker

LONDON (AP) — Nearly everywhere around the world, people are living longer and fewer children are dying. But increasingly, people are grappling with the diseases and disabilities of modern life, according to the most expansive global look so far at life expectancy and the biggest health threats.

The last comprehensive study was in 1990 and the top health problem then was the death of children under 5 — more than 10 million each year. Since then, campaigns to vaccinate kids against diseases like polio and measles have reduced the number of children dying to about 7 million.

Malnutrition was once the main health threat for children. Now, everywhere except Africa, they are much more likely to overeat than to starve.

With more children surviving, chronic illnesses and disabilities that strike later in life are taking a bigger toll, the research said. High blood pressure has become the leading health risk worldwide, followed by smoking and alcohol.

"The biggest contributor to the global health burden isn't premature (deaths), but chronic diseases, injuries, mental health conditions and all the bone and joint diseases," said one of the study leaders, Christopher Murray, director of the Institute of Health Metrics and Evaluation at the University of Washington.

In developed countries, such conditions now account for more than half of the health problems, fueled by an aging population. While life expectancy is climbing nearly everywhere, so too are the number of years people will live with things like vision or hearing loss and mental health issues like depression.

The research appears in seven papers published online Thursday by the journal Lancet. More than 480 researchers in 50 countries gathered data up to 2010 from surveys, censuses and past studies. They used statistical modeling to fill in the gaps for countries with little information. The series was mainly paid for by the Bill & Melinda Gates Foundation.

As in 1990, Japan topped the life expectancy list in 2010, with 79 for men and 86 for women. In the U.S. that year, life expectancy for men was 76 and for women, 81.

The research found wide variations in what's killing people around the world. Some of the most striking findings highlighted by the researchers: — Homicide is the No. 3 killer of men in Latin America; it ranks 20th worldwide. In the U.S., it is the 21st cause of death in men, and in Western Europe, 57th.

— While suicide ranks globally as the 21st leading killer, it is as high as the ninth top cause of death in women across Asia's "suicide belt," from India to China. Suicide ranks 14th in North America and 15th in Western Europe.

— In people aged 15-49, diabetes is a bigger killer in Africa than in Western Europe (8.8 deaths versus 1 death per 100,000).

— Central and Southeast Asia have the highest rates of fatal stroke in young adults at about 15 cases per 100,000 deaths. In North America, the rate is about 3 per 100,000.

Globally, heart disease and stroke remain the top killers. Reflecting an older population, lung cancer moved to the 5th cause of death globally, while other cancers including those of the liver, stomach and colon are also in the top 20. AIDS jumped from the 35th cause of death in 1990 to the sixth leading cause two decades later.

While chronic diseases are killing more people nearly everywhere, the overall trend is the opposite in Africa, where illnesses like AIDS, malaria and tuberculosis are still major threats. And experts warn again shifting too much of the focus away from those ailments.

"It's the nature of infectious disease epidemics that if you turn away from them, they will crop right back up," said Jennifer Cohn, a medical coordinator at Doctors Without Borders.

Still, she acknowledged the need to address the surge of other health problems across Africa. Cohn said the agency was considering ways to treat things like heart disease and diabetes. "The way we treat HIV could be a good model for chronic care," she said.

Others said more concrete information is needed before making any big changes to public health policies.

"We have to take this data with some grains of salt," said Sandy Cairncross, an epidemiologist at the London School of Hygiene and Tropical Medicine.

He said the information in some of the Lancet research was too thin and didn't fully consider all the relevant health risk factors.

"We're getting a better picture, but it's still incomplete," he said.

___

Online:

www.lancet.com

http://healthmetricsandevaluation.org

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Asian shares mixed after China data, "fiscal cliff" weighs

TOKYO (Reuters) - Asian shares were mixed on Friday with a pick-up in China's manufacturing sector lending support but worries over the progress of U.S. budget talks to avert the "fiscal cliff" weighing on investor sentiment.

European shares were expected to start higher, with financial spreadbetters predicting London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> will open as much as 0.3 percent higher. A 0.3 percent gain in U.S. stock futures hinted at a firm Wall Street open. <.l><.eu><.n/>

A deteriorating business sentiment survey and expectations that the Bank of Japan will ease policy further to support the weak economy next week pushed the yen to a near 9-month low against the dollar and an 8-month low against the euro, helping Japanese equities wipe out earlier losses.

China shares outperformed Asian peers after the HSBC flash purchasing managers' index for December hit a 14-month high of 50.9, the fifth straight monthly gain, showing growth in China's vast manufacturing sector picked up and underlined a brighter outlook for the economy in coming months.

The private survey followed recent positive data suggesting Chinese economic activity has gained some momentum in the fourth quarter after it slowed for seven consecutive quarters.

A state-backed think tank has also forecast China's GDP growth next year at around 8 percent -- above the likely government target -- while calling for an expansion in the central government's fiscal deficit to offset an uncertain external environment.

The Shanghai Composite Index <.ssec> soared 4 percent while Hong Kong shares <.hsi> rose 0.8 percent to a 16-month peak.

"We're seeing positive PMI, industrial data and they are all pointing to the direction of an economic recovery," said Sijin Cheng, a commodities analyst at Barclays Capital. "The underlying demand is going to improve gradually."

MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> was little changed, hovering near 16-month highs which it had hit successively since December 5. The index was set to end the week up 1.4 percent.

Australian shares <.axjo> ended flat, giving up earlier gains as investors remained wary of the stalled U.S. budget talks.

A seven-day rally in world shares came to a halt and commodity prices slipped on Thursday after negotiations over the U.S. "fiscal cliff" hit a wall.

President Barack Obama and House of Representatives Speaker John Boehner held a "frank" face-to-face meeting late on Thursday in an effort to break an impasse in talks to avert the "fiscal cliff" of some $600 billion of tax hikes and spending cuts scheduled to start in January.

"With the end of the year coming up, I can't see anybody taking any significant positions ahead of this political unknown (the fiscal cliff)," the trader added.

Failure to avert the "fiscal cliff" could derail the struggling U.S. economic recovery and also snuff out encouraging signs emerging from China, the world's second-largest economy after the United States.

"You're not going to get a solution that will be a 100 percent, but it may be a third or a quarter. It will be something a bit hard to reduce the deficit, but they'll get a good vote on it which will make it a good rosy story -- the U.S. is not interested in can-kickers any more," said Jonathan Barratt, chief executive of Barratt's Bulletin, a Sydney-based commodity research firm.

China PMI surveys: http://link.reuters.com/rej64t

Japan Tankan: http://link.reuters.com/qet44t

Japan economy, election: http://link.reuters.com/jyc64t

Asset returns in 2012: http://link.reuters.com/nyw85s

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

YEN SELLING ACCELERATES

In the world's third-largest economy, big Japanese manufacturers' sentiment worsened in the three months to December, a Bank of Japan's quarterly tankan survey showed on Friday, hurting an economy already seen to be in a mild recession.

The data will help reinforce market expectations for the Japanese central bank to further ease monetary policy.

The yen fell as low as 83.95 against the dollar. The euro stood at 109.83 yen, its highest in more than eight months and looked set to end the week up over 3 percent on the yen.

Japan's Nikkei share average <.n225> turned up 0.1 percent, rebounding from earlier declines. <.t/>

Japan's conservative Liberal Democratic Party (LDP) is on track for a stunning victory in Sunday's election, gaining momentum to pressure the BOJ for more forceful easing.

"The market is growing confident the next government will be one of the most aggressive about easing that you could think of," said a trader at a Japanese bank.

Oil prices rebounded from Thursday's fall after Chinese manufacturing data raised hopes for firmer demand, with U.S. crude futures rising 0.8 percent to $86.54 a barrel and Brent adding 0.4 percent to $108.39.

Spot gold steadied near $1,696 an ounce after tumbling 1 percent the previous session to push prices below $1,700 for the first time this week. Gold was set for a third weekly decline as funds liquidate positions to lock in profit for the year.

Sluggish stocks weighed on Asian credit markets, keeping the spreads on the iTraxx Asia ex-Japan investment-grade index barely changed from Thursday.

(Additional reporting by Hideyuki Sano in Tokyo, Florence Tan and Melanie Burton in Singapore; Editing by Jacqueline Wong)

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U.S., rebels urge gloomy Moscow to help oust Assad

BEIRUT (Reuters) - Syria's rebel leadership and the United States seized on Russian pessimism over President Bashar al-Assad's future to urge Moscow to help push its ally into ceding power and end the battles closing in around his capital.

"We want to commend the Russian government for finally waking up to the reality and acknowledging that the regime's days are numbered," the U.S. State Department spokeswoman said after a senior Kremlin envoy conceded publicly on Thursday that Assad's opponents could win the 20-month-old civil war.

"The question now is, will the Russian government join those of us in the international community who are working with the opposition to try to have a smooth democratic transition?" U.S. spokeswoman Victoria Nuland added in Washington.

In Marrakech, where his new coalition won recognition from other international powers as the legitimate leadership of Syria, rebel political leader Mouaz al-Khatib said he believed Russia, ally and arms supplier to the Assad dynasty since Soviet times, was looking for ways out of its support for a lost cause.

"I believe that the Russians have woken up and are sensing that they have implicated themselves with this regime, but they don't know how to get out," al-Khatib told Reuters. He held them "particularly responsible" for helping Assad with arms but said Moscow need not "lose everything" in Syria if it changed tack.

Under President Vladimir Putin, wary since last year's Libyan war of what Russia sees as a Western drive to use the United Nations to overthrow national leaders it dislikes, Russia has blocked U.N. efforts to squeeze Assad, who has also had strong support from his long-time sponsor Iran.

But Mikhail Bogdanov, a deputy foreign minister and the Kremlin's special envoy for Middle East affairs, was quoted as saying in Moscow: "One must look the facts in the face."

"Unfortunately, the victory of the Syrian opposition cannot be ruled out." The Syrian government, he said, was "losing control of more and more territory" and Moscow was preparing to evacuate Russian citizens if necessary.

Nuland said Bogdanov's comments demonstrated that Moscow now "sees the writing on the wall" on Syria and said Russia should now rally behind U.N. efforts to prevent a wider bloodbath.

"They can withdraw any residual support for the Assad regime, whether it is material support (or) financial support," she said. "They can also help us to identify people who might be willing, inside of Syria, to work on a transitional structure."

DIPLOMACY

International envoy Lakhdar Brahimi, who has met Russian and U.S. officials twice in the past week, is seeking a solution based on an agreement reached in Geneva in June that called for the creation of a transitional government in Syria.

But Russia has repeated warnings that recognition of al-Khatib's coalition, notably by the United States, is undermining diplomacy, and rejected U.S. contentions that the Geneva agreement sent a clear message that Assad should step down.

Nuland said the Brahimi meetings could lay the framework for a political structure to follow Assad:

"We've said all along to the Russians that we are concerned that the longer that this goes on, and the longer it takes us to get to an alternative political path for Syria, the only path is going to be the military one and that is just going to bring more violence.

"We all ought to be working together."

Bogdanov, whose government has suggested that Assad himself should be allowed to see through a transition he has promised, suggested the rebels and their allies were set on a military solution and he gave little hint of detente with Washington.

"The fighting will become even more intense and (Syria) will lose tens of thousands and, perhaps, hundreds of thousands of civilians," Bogdanov was quoted as saying. "If such a price for the removal of the president seems acceptable to you, what can we do? We, of course, consider it absolutely unacceptable."

The head of NATO, Anders Fogh Rasmussen, said elsewhere: "I think the regime in Damascus is approaching collapse."

A U.S. official said: "Assad probably still believes that Syria is his and illusions can die hard. But Assad and those closest to him have got to be feeling the psychological strain of fighting a long war that is not going their way."

DAMASCUS BATTLES

But Al-Khatib, who played down Western concerns of sectarian Sunni Islamists in rebel ranks, warned that the fighting was far from over, even as it has begun to rattle the heart of Assad's power in Damascus. On Wednesday, a car bomb killed at least 16 people in a nearby town which is home to many military families.

"The noose is tightening around the regime," al-Khatib said.

"(But) the regime still has power. People think that the regime is finished, but it still has power left, but it is demoralized and however long it lasted its end is clear."

Day and night, Damascenes can hear the thunderous sound of bombardment aimed at rebel-held and contested neighborhoods.

The city's streets have now turned into a labyrinth of checkpoints and road blocks, with several major roads permanently closed off to traffic by concrete barriers.

"We escape from one place and trouble follows," said one grandmother, Um Hassan, as she described to Reuters her family's flight from one neighborhood to another as fighting seeps into the capital. "I don't know where we can keep running to."

Nonetheless, al-Khatib played down demands for their allies to provide heavier weaponry - a request long resisted by governments wary of anti-aircraft missiles and other hardware reaching Islamist rebels who might turn them against the West.

"The Syrian people ... no longer need international forces to protect them," he said, not specifying whether he meant a no-fly zone, arms supplies or other military support.

The opposition chief said he was willing to listen to proposals for Assad to escape with his life - "The best thing is that he steps down and stops drinking the blood of the Syrian people" - and outlined three scenarios for a change of power:

Al-Khatib ruled out the Russian proposal suggesting Assad hand over power to a transitional government while remaining president, saying it was "disgraceful for a slaughtered nation to accept to have a killer and criminal at its head".

The British-based Syrian Observatory said war planes bombed rebel-held eastern suburbs of Damascus on Thursday and artillery was hitting Daraya and Moadamiyeh, southwestern areas near the centre where rebels have been fighting for a foothold.

Syria has relied on war planes and helicopters to bombard rebel districts but Damascus denied accusations by U.S. and NATO officials that it had fired Scud missiles in recent days. The foreign ministry said the long-range missiles were not used against "terrorist groups," a term it uses for the rebels.

At least 40,000 people have been killed in Syria's uprising, which started in March 2011 with street protests which were met with gunfire by Assad's security forces, and which spiraled into the most enduring and destructive of the Arab revolts.

(Additional reporting by Steve Gutterman in Moscow and Andrew Quinn in Washington; Writing by Alastair Macdonald; Editing by Michael Roddy) For an interactive look at the uprising in Syria, please click on http://link.reuters.com/rut37s

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Microsoft plots living room domination with 43 new entertainment apps for Xbox 360

Game consoles are no longer simply for video games, as evidenced by last week’s announcement that the PlayStation 3 is the top Netflix (NFLX) streaming device of the year. Yusuf Mehdi, Microsoft’s (MSFT) chief marketing officer for its Interactive Entertainment Division, said this past March that Xbox 360 owners were spending more hours watching online entertainment than playing online games. And now, in a bid to bolster its efforts to conquer the living room, Microsoft Director of Programming for Xbox Live Larry “Major Nelson” Hyrb announced in a blog post that 43 new entertainment apps (mostly video) will launch between now and spring of 2013 in various regions. Ten new apps including ARTE, CinemaNow, CNET, Karaoke, Maxim, Napster, SkyDrive, SPORT1, VEVO and Zattoo will arrive this week. Microsoft’s full list of upcoming apps follows below.

1. All3M (United Kingdom, United States)
2. Ameba TV (Canada, United States)
3. ARTE (Germany, France)
4. Azteca (Mexico)
5. Canalplay Infinity (France)
6. CBC’s Hockey Night (Canada)
7. CrunchyRoll (Majority of LIVE Regions)
8. Deezer (Majority of LIVE Regions)
9. Eredivisie Live (Netherlands)
10. Fightbox (Austria, Germany, Spain, France, Ireland, Italy, Sweden, United Kingdom)
11. Flixster (United States)
12. GameTrailers (Australia, Canada, Germany, Spain, France, Italy, Japan, Mexico, United Kingdom, United States)
13. Globosat Muu (Brazil)
14. Gulli Replay (France)
15. HBO Nordics (Denmark, Finland, Norway, Sweden)
16. IndieFlix (Australia, Canada, Ireland, New Zealand, United Kingdom, United States)
17. Livesport.tv (Austria, Belgium, Germany, Denmark, Spain, Finland, France, Ireland, Italy, Netherlands, Norway, New Zealand, Sweden, United Kingdom)
18. Machinima (Majority of LIVE Regions)
19. Maxim (United States)
20. MTV (United States)
21. MyTF1 (France)
22. MyTF1VOD (France)
23. Napster (Germany, United Kingdom)
24. Pathe Thuis (Netherlands)
25. PBS (United States)
26. PopcornFlix (United States)
27. Rai TV (Italy)
28. Sainsbury (United Kingdom)
29. Saraiva (Brazil)
30. SBS (Netherlands)
31. SF Anytime (Denmark, Finland, Norway, Sweden)
32. Slacker Radio (Canada, United States)
33. SPORT1 (Austria, Germany)
34. The CW Network (United States)
35. Televisa (Mexico)
36. TV3 (Spain)
37. Viaplay (Denmark, Finland, Norway, Sweden)
38. Vidéo à la Demande d’Orange (France)
39. Vimeo (United States)
40. VIVO Play (Brazil)
41. Watchever (Austria, Germany)
42. Zattoo (Germany)
43. Ziggo (Netherlands)

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The X Factor Reveals Season 2 Finalists

TV Watch

The X Factor

12/13/2012 at 09:10 PM EST

Carly Rose Sonenclar, Emblem3, Tate Stevens and Fifth Harmony

Ray Mickshaw/FOX (4)

Sparks will fly at the finale!

On Thursday, The X Factor revealed its top three acts, who will perform next week in the final night of competition – in hopes of taking home the $5 million recording contract.

Simon Cowell said it would take a miracle to get his girl group, Fifth Harmony, to the finale after they performed Shontelle's "Impossible" and Ellie Goulding's "Anything Could Happen" on Wednesday. Keep reading to find out if their dream came true ...

Apparently, miracles do happen! Fifth Harmony was the first act to be sent through to the finale.

They will compete against departing judge L.A. Reid's country singer, Tate Stevens, and Britney Spears's only remaining contestant, Carly Rose Sonenclar.

That means Simon's promising boy band, Emblem3, are out of the running for the big prize.

"This is the way it goes on competitions," Simon said. "I'm gutted really for them ... But it happens."

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Congress examines science behind HGH test for NFL

WASHINGTON (AP) — A congressional committee has opened a hearing to examine the science behind a human growth hormone test the NFL wants to start using on its players.

Nearly two full seasons have passed since the league and the players' union signed a labor deal that set the stage for HGH testing.

The NFL Players Association won't concede the validity of a test that's used by Olympic sports and Major League Baseball, and the sides haven't been able to agree on a scientist to help resolve that impasse.

Among the witnesses before the House Oversight and Government Reform Committee on Wednesday is Pro Football Hall of Fame member Dick Butkus. In his prepared statement, Butkus writes: "Now, let's get on with it. The HGH testing process is proven to be reliable."

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Asian shares rise, yen slips after Fed's stimulus steps

TOKYO (Reuters) - Asian shares extended gains for a seventh day on Thursday, after the U.S. Federal Reserve took new stimulus steps to bolster the economy, pressuring the yen with expectations the Japanese central bank will follow suit with more easing next week.

While stocks gained, oil and gold fell from post-Fed rallies, as investors took profits ahead of the year-end, and concerns over the U.S. budget impasse also weighed on sentiment.

The upside for equities was also contained despite the Fed's fresh dose of liquidity-pumping measures, as investors were worried the United States would miss a year-end deadline to avert the "fiscal cliff," some $600 billion of tax hikes and spending cuts scheduled to start in January.

U.S. House of Representatives Speaker John Boehner said on Wednesday "serious differences" remain with President Barack Obama on the budget talks.

Failure to reach a compromise by the end of the year risks pushing the U.S. economy into recession and has stoked fears that a fragile recovery trend emerging in China and some other countries would be stifled.

Against this backdrop, European shares were expected to start narrowly mixed, with financial spreadbetters predicting London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> will open flat to 0.2 percent higher. A 0.1 percent gain in U.S. stock futures hinted at a firm Wall Street open. <.l><.eu><.n/>

MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> added 0.3 percent to a 16-month peak, having hit successive 16-month highs since December 5. South Korean shares <.ks11> advanced 0.8 percent to a two-month high.

"The Fed's easing measures met the market's expectations, while the setting of clear inflation and unemployment targets exceeded hopes and will clear uncertainty on the monetary front," said Kim Yong-goo, an analyst at Samsung Securities.

The U.S. central bank committed to monthly purchases of $45 billion in Treasuries on top of the $40 billion per month in mortgage-backed bonds it started buying in September. But it also took the unprecedented step of indicating interest rates would remain near zero until unemployment falls to at least 6.5 percent.

YEN WEAKNESS CONTINUES

The dollar advanced to its loftiest in nearly nine months against the yen, touching a high of 83.635 yen. The slumping yen boosted Japan's Nikkei share average <.n225> up 1.6 percent and above 9,700 for the first time in eight months. <.t/>

Japan holds an election on Sunday, with opinion surveys showing conservative former Prime Minister Shinzo Abe's opposition Liberal Democratic Party and its smaller ally heading for a resounding victory.

Abe wants to step up aggressive monetary easing along with heavy public works spending, policy prescriptions dubbed "Abenomics" by the media, and while he threatens to curtail the Bank of Japan's independence, investors reckon the responsibility of power will prevent Abe taking excessive risks that could lead to a bond market meltdown.

"As the Fed sets direction on policy rates for the rest of central banks and equity markets, the Bank of Japan sets the currency vehicle, by stepping up asset purchases and driving down the yen once LDP Chief Abe becomes the likely PM at Sunday's elections," Ashraf Laidi, chief global strategist at City Index, said in a note to clients.

At its December 19-20 meeting, the BOJ is widely expected to further ease monetary policy to support its weak economy.

The Fed's latest move to make the jobless rate a target for its monetary policy could have a longer-term implication on the BOJ.

"While the BOJ's ultimate goal is to pull Japan out of deflation, the Fed's latest move could prompt Japanese politicians or the government to urge the BOJ to also commit itself to growth, not just price stability," said Chotaro Morita, chief fixed income strategist at Barclays.

Morita said that market consensus is for the BOJ to expand its asset-buying and lending program, currently at 91 trillion yen ($1.1 trillion), by another 5-10 trillion yen, and put off taking bolder steps until after a new cabinet is formed.

Rising U.S. Treasury bond yields also drew demand for the dollar against the yen, given the stable and low Japanese yields.

BETTER EUROPEAN NEWS

The euro was relatively more robust than the dollar and the yen, inching up 0.1 percent to $1.3082 to approach Wednesday's high of $1.3098, as some positive news emerged.

Europe clinched a deal on Thursday to give the European Central Bank new powers to supervise euro zone banks, the first step in a new phase of closer integration to help underpin the single currency.

Greece's foreign lenders welcomed a bond buyback, paving the way for Athens to get long-delayed aid to avoid bankruptcy.

In Italy, another debt-straddled euro zone country, Silvio Berlusconi offered to stand back and make way for Mario Monti as Italy's next leader if the outgoing technocrat premier agreed to run as the candidate for a center-right coalition. Monti's intention to resign has raised concerns that his austerity policies may not be carried out.

Oil prices retreated from overnight gains, with U.S. crude futures down 0.2 percent to $86.57 a barrel and Brent falling 0.2 percent to $109.24.

Gold tumbled more than 1 percent on stop-loss selling after touching their highest in nearly two weeks on Wednesday. Spot gold dropped as much as 1 percent to $1,693.80.

($1 = 82.9300 Japanese yen)

(Additional reporting by Somang Yang in Seoul; Editing by Jacqueline Wong)

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Assad's forces fire Scuds in Syria escalation: U.S. official

WASHINGTON/BRUSSELS (Reuters) - Forces loyal to Syrian President Bashar al-Assad have fired Scud missiles at rebels trying to overthrow Syria's government, a senior U.S. official said on Wednesday, a step seen as an escalation in Assad's struggle to retain power.

U.S. officials said they were unaware of any previous instances in which Scuds were used against the rebels since the start of the 20-month-old uprising, which has killed more than 40,000 people.

White House spokesman Jay Carney declined to confirm the reports, saying he was aware of them but could not discuss intelligence matters.

"If true, this would be the latest desperate act from a regime that has shown utter disregard for innocent life," he said. "The idea that the Syrian regime would launch missiles in its borders at its own people is stunning, desperate, a completely disproportionate military escalation."

A senior U.S. official, speaking on condition of anonymity, said Scuds had been used.

In Brussels, a NATO official, who also spoke on condition of anonymity, said a number of "Scud-type" short-range ballistic missiles had been launched inside Syria in recent days.

"Allied intelligence, surveillance and reconnaissance assets have detected the launch of a number of unguided, short-range ballistic missiles inside Syria this week," the official said.

"Trajectory and distance travelled indicate they were Scud-type missiles," the NATO official said.

Thomas Houlahan, a military analyst at the Center for Security and Science, said the weapons were probably North Korean-made Hwasong-6 missiles, an improved variant of the original Soviet Scuds.

"In terms of the short-range battlefield missiles, they produce a pretty good missile and because of North Korea's constant need for hard currency, they sell them pretty cheap. So they have moved a lot of missiles around and Syria has ended up with a lot of them," Houlahan said.

"MORE ACCURATE"

He said the Hwasong-6 was more accurate than the original Scud, could carry a warhead of about 1,800 pounds (820 kg) and had a range of about 450 miles.

But he said the use of the weapon raised questions as to why the Syrians were not using their air force instead, which was a better alternative.

"If I want to dump 1,800 pounds of explosives on somebody with fairly decent accuracy and I have an air force and they don't, why the hell am I not using a plane?" Houlahan said.

"If you see a country or an army that has much better options not using them, you start to ask yourself why," he added. "Is it the old problem where dictators can't always trust their air forces?"

NATO agreed last week to send Patriot anti-missile systems to alliance member Turkey to reinforce its air defenses and calm its fears of coming under missile attack, possibly with chemical weapons, from neighboring Syria.

The NATO official said the Syrian missiles had landed inside Syria and no missiles had hit Turkish territory. He said the Western alliance had no information about what casualties or damage the missiles had caused.

Asked if there was any evidence of Syrian use of chemical weapons, he said: "We have no information concerning the payload."

U.S. President Barack Obama warned Assad last week not to use chemical weapons against Syrian opposition forces, saying there would be unspecified consequences if he did so.

The United States, Germany and Netherlands have all agreed to send Patriot missiles to protect Turkey, but the missile batteries are not expected to arrive for several more weeks.

The New York Times, which initially reported Syria's use of the missiles, quoted one official as saying more than six had been fired at the rebels. Another official said the missiles had been launched from the Damascus area at targets in northern Syria, the Times said.

U.S. officials, speaking on condition of anonymity, told Reuters they would not dispute the Times report.

News of Syria's use of Scud missiles broke as Western and Arab nations sympathetic to the uprising against Assad gave full political recognition to the opposition at a meeting in Morroco.

(Reporting by David Alexander in Washington and Adrian Croft in Brussels; Editing by Michael Roddy and David Brunnstrom)

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