Wall Street surges in wake of fiscal pact

NEW YORK (Reuters) - Stocks surged on the first trading day of 2013 after lawmakers agreed a deal to avoid massive tax hikes and spending cuts that had threatened to hurt economic growth.


The gains come after stocks ended 2012 with their strongest day in more than a month, which put the S&P 500 up 13.4 percent for the year, after a flat performance in 2011.


Late on Tuesday, the House of Representatives voted for a bill that will raise taxes on wealthy individuals and families and preserve certain benefits.


The vote averted immediate austerity measures, like tax hikes for almost all U.S. households, although it didn't resolve other political showdowns on the budget due in coming months. Spending cuts of $109 billion in military and domestic programs were only delayed for two months.


"Many investors are feeling confident heading into 2013 following a year of strong equity market returns, and the recently signed deal," said Jonathan Golub, strategist at UBS in New York.


"Unfortunately, our sense is that the most important structural issues will continue to be pushed off into the future, leaving significant uncertainty about the long-term direction of the economy and corporate profits."


The Dow Jones industrial average <.dji> was up 255.72 points, or 1.95 percent, at 13,359.86. The Standard & Poor's 500 Index <.spx> was up 28.75 points, or 2.02 percent, at 1,454.94. The Nasdaq Composite Index <.ixic> was up 75.18 points, or 2.49 percent, at 3,094.70.


Bank shares rose following news that U.S. regulators are close to securing another multibillion-dollar settlement with the largest banks to resolve allegations that they unlawfully cut corners when foreclosing on delinquent borrowers.


Bank of America Corp rose 4 percent to $12.06 and Wells Fargo shares added 2.4 percent to $35. JPMorgan Chase & Co shares rose 3 percent to $44.96.


Boosting the technology sector, Apple shares rose on a report that the most valuable technology company has started testing a new iPhone and the next version of its iOS software.The stock was up 3.9 percent at $552.86.


Shares of Zipcar Inc jumped 48 percent to $12.21 after Avis Budget Group Inc said it would buy Zipcar for about $500 million in cash to compete with larger rivals Hertz and Enterprise Holdings Inc.


On the macroeconomic front, U.S. manufacturing expanded slightly in December, rebounding from an unexpected contraction the prior month, an industry report showed on Wednesday.


A separate report showed U.S. construction spending fell in November for the first time in eight months, as an extended bout of weakness in the business sector outweighed modest growth in outlays on residential projects. The equity market's reaction to both reports was muted.


On the last day of trading in 2012, the Dow Jones industrial average <.dji> gained 166.03 points, or 1.28 percent, to close at 13,104.14. The Standard & Poor's 500 Index <.spx> gained 23.76 points, or 1.69 percent, to finish at 1,426.19. The Nasdaq Composite Index <.ixic> gained 59.20 points, or 2.00 percent, to close at 3,019.51.


In 2012, the Dow advanced 7.3 percent, while the Nasdaq climbed 15.9 percent.


(Editing by Bernadette Baum)



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Residents Flee Bangui, Capital of Central African Republic


Sia Kambou/Agence France-Presse — Getty Images


Soldiers from Republic of Congo arrived at Central African Republic's capital Bangui Monday. A regional force is bolstering the country's troops.







JOHANNESBURG — As efforts to broker a deal to stop a rebel advance failed, residents of the capital of the Central African Republic were packing up their belongings and fleeing into the country’s vast hinterlands, fearing a major battle between government troops and guerrilla fighters.




Rebels rejected an offer from the country’s president, François Bozizé. It was brokered by the African Union and proposed forming a government of national unity. But the rebels balked, saying that previous agreements with the president had been made and quickly broken.


“Bozizé speaks, but does not keep his word,” said a rebel spokesman, Juma Narkoyo. “That is why we have taken up arms to make our voices heard.”


The rebel coalition, known as Seleka, is made up of several groups of fighters opposed to the government of Mr. Bozizé, who came to power after a brief civil war in 2003 and has had a tenuous grip on the presidency ever since, winning two elections but facing a constant threat of rebellions aimed at toppling him.


The Seleka rebels say that Mr. Bozizé has not lived up to the terms of a peace agreement signed in 2007. Mr. Narkoyo said the rebels had no plans to seize the capital, Bangui, but in the past they have advanced despite claims that they would stay put.


Government officials, meanwhile, said that the rebels were not actually from the Central African Republic, but were instead foreign provocateurs bent on destabilizing one of the most fragile nations in Africa in order to exploit its mineral wealth.


“They are Chadians, Sudanese and Nigerians,” said Louis Oguéré Ngaïkouma, secretary general of Mr. Bozizé’s political party. “It is a conspiracy against the people of the Central African Republic and its president to steal our riches.”


Suspicion of one’s neighbors is no idle thing in this part of Africa, where local wars often become wider conflagrations. The Democratic Republic of Congo, which lies to the south of the Central African Republic, has been caught up in one of the deadliest conflicts of the last half-century as Rwandan, Ugandan and Congolese troops fought over the country’s bounty of diamonds, coltan and tin.


War in Sudan, which lies north of the Central African Republic, has also spilled over into its neighbors, especially Chad, which also borders the Central African Republic.


Hugues Kossi, a college student in Bangui, said he feared all-out war in his city.


“I am afraid of combat and stray bullets,” he said. But he said he was also tired of the poverty and misrule of Mr. Bozizé’s government.


“It is bad governance that has led us to this situation,” Mr. Kossi said.


The United States has closed its embassy in Bangui and evacuated its staff members. The French government has said it will not help Mr. Bozizé fight the rebels, but that it has deployed an extra contingent of soldiers from a neighboring country to help protect French citizens.


Christian Panika contributed reporting from Bangui, Central African Republic.



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Relive the Paralympics’ Most Inspiring Moment of the Year






Back in July, we covered how social media would be critical to the success of the 2012 Paralympic Games. The Paralympics ended in September, but the International Paralympic Committee is still using the web to shine a light on unheralded athletes and tell stories of remarkable inspiration.


[More from Mashable: Watch the Scariest Skiing Lesson of All Time]






The committee revealed its top moment of 2012 in a video posted to YouTube on Sunday. It profiles Italian cyclist Alex Zanardi winning gold in London after losing his legs in an auto racing accident in 2001. The image of a triumphant Zanardi lifting his hand-cycling tricycle above his head with one arm post-race is nothing short of astounding.


[More from Mashable: NBA Star’s Kick to the Groin Sparks Online Debate]


For a longer look at Zanardi’s amazing achievement and to relive one of 2012′s sweetest sports moments, watch the full video above.


BONUS: 2012′s best sports social media moments


1. Devin McCourty Tweets While Playing in the Super Bowl (Sort of)


As New England Patriot Devin McCourty took on the New York Giants in Super Bowl XLVI, his followers were still able to receive real-time updates from his social feeds. But he wasn’t sneaking tweets between plays or during timeouts. Devin and twin brother Jason, who plays for the Tennessee Titans, share their Twitter and Facebook accounts. The Super Bowl showcased one of the more creative approaches to social media in the sports world.


Image courtesy of Devin and Jason McCourty’s Instagram.


Click here to view this gallery.


Thumbnail image credit Getty Images/AFP/Leon Neal


This story originally published on Mashable here.


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Kim Kardashian Steps Out for New Year's Party after Pregnancy Announcement















01/01/2013 at 10:20 AM EST







Kanye West and Kim Kardashian


Denise Truscello/WireImage


The year 2012 was good for Kim Kardashian. But, oh baby, is she ready for 2013! 

"It's been so exciting," she told PEOPLE of the whirlwind of emotions she's felt since finding out she was pregnant. "We're very, very happy." 

With just a hint of a baby bump showing under her form fitting black Julian McDonald dress, the reality star rang in the new year in Las Vegas with the man she's spent 2012 with: Beau and baby daddy Kanye West.

"I wish I could share a drink with you all, but I can't for a little while," she told the crowd at Mirage's 1 OAK just before leading a countdown to 2013. 

With the crowd cheering and confetti flying as the clock struck midnight, Kardashian stood on an elevated banquet adjacent to the deejay booth and passionately kissed West. And for the next 25 minutes, the deejay played nothing but West's songs – much to the delight of his pregnant girlfriend, who smiled and sang along.

As the night continued, the duo rarely left each other's side, with Kardashian dancing behind West while her party sipped Grey Goose cocktails. Kardashian stuck to water as the Grammy award-winning rapper occasionally rubbed her belly.

Her VIP table littered with party hats, streamers and black and gold balloons, Kardashian appeared happy throughout the night, kissing West and chatting with friends and family in attendance, including mom Kris Jenner, longtime friend Brittny Gastineau and Lance Bass.

Now that the new year has begun, Kardashian is working on being healthy for her unborn child. 

"I've felt good. I've felt no morning sickness but it isn't the easiest," she said. "People always say pregnancy is so easy and fun. It's definitely an adjustment; It's learning about your body, but I've felt really good."

While the announcement of Kardashian's pregnancy came as a surprise to a lot of people, she doesn't want to be surprised when it comes the sex of the baby.

She said, "Of course I do want to know!"

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Clinton receiving blood thinners to dissolve clot


WASHINGTON (AP) — Doctors treating Secretary of State Hillary Rodham Clinton for a blood clot in her head said blood thinners are being used to dissolve the clot and they are confident she will make a full recovery.


Clinton didn't suffer a stroke or neurological damage from the clot that formed after she suffered a concussion during a fainting spell at her home in early December, doctors said in a statement Monday.


Clinton, 65, was admitted to New York-Presbyterian Hospital on Sunday when the clot turned up on a follow-up exam on the concussion, Clinton spokesman Phillipe Reines said.


The clot is located in the vein in the space between the brain and the skull behind the right ear. She will be released once the medication dose for the blood thinners has been established, the doctors said.


In their statement, Dr. Lisa Bardack of the Mount Kisco Medical Group and Dr. Gigi El-Bayoumi of George Washington University said Clinton was making excellent progress and was in good spirits.


Clinton's complication "certainly isn't the most common thing to happen after a concussion" and is one of the few types of blood clots in the skull or head that are treated with blood thinners, said Dr. Larry Goldstein, a neurologist who is director of Duke University's stroke center. He is not involved in Clinton's care.


The area where Clinton's clot developed is "a drainage channel, the equivalent of a big vein inside the skull. It's how the blood gets back to the heart," Goldstein said.


Blood thinners usually are enough to treat the clot and it should have no long-term consequences if her doctors are saying she has suffered no neurological damage from it, Goldstein said.


Clinton returned to the U.S. from a trip to Europe, then fell ill with a stomach virus in early December that left her severely dehydrated and forced her to cancel a trip to North Africa and the Middle East. Until then, she had canceled only two scheduled overseas trips, one to Europe after breaking her elbow in June 2009 and one to Asia after the February 2010 earthquake in Haiti.


Her condition worsened when she fainted, fell and suffered a concussion while at home alone in mid-December as she recovered from the virus. It was announced Dec. 13.


This isn't the first time Clinton has suffered a blood clot. In 1998, midway through her husband's second term as president, Clinton was in New York fundraising for the midterm elections when a swollen right foot led her doctor to diagnose a clot in her knee requiring immediate treatment.


Clinton had planned to step down as secretary of state at the beginning of President Barack Obama's second term. Whether she will return to work before she resigns remained a question.


Democrats are privately if not publicly speculating: How might her illness affect a decision about running for president in 2016?


After decades in politics, Clinton says she plans to spend the next year resting. She has long insisted she had no intention of mounting a second campaign for the White House four years from now. But the door is not entirely closed, and she would almost certainly emerge as the Democrat to beat if she decided to give in to calls by Democratic fans and run again.


Her age — and thereby health — would probably be a factor under consideration, given that Clinton would be 69 when sworn in, if she were elected in 2016. That might become even more of an issue in the early jockeying for 2016 if what started as a bad stomach bug becomes a prolonged, public bout with more serious infirmity.


Not that Democrats are willing to talk openly about the political implications of a long illness, choosing to keep any discussions about her condition behind closed doors. Publicly, Democrats reject the notion that a blood clot could hinder her political prospects.


"Some of those concerns could be borderline sexist," said Basil Smikle, a Democratic strategist who worked for Clinton when she was a senator. "Dick Cheney had significant heart problems when he was vice president, and people joked about it. He took the time he needed to get better, and it wasn't a problem."


It isn't uncommon for presidential candidates' health — and age — to be an issue. Both in 2000 and 2008, Sen. John McCain, R-Ariz., had to rebut concerns he was too old to be commander in chief or that his skin cancer could resurface.


Two decades after Clinton became the first lady, signs of her popularity — and her political strength — are ubiquitous.


Obama had barely declared victory in November when Democrats started zealously plugging Clinton as their strongest White House contender four years from now, should she choose to take that leap.


"Wouldn't that be exciting?" House Democratic leader Nancy Pelosi declared in December. "I hope she goes. Why wouldn't she?"


Even Republicans concede that were she to run, Clinton would be a force to be reckoned with.


"Trying to win that will be truly the Super Bowl," Newt Gingrich, the former House Speaker and 2012 GOP presidential candidate, said in December. "The Republican Party today is incapable of competing at that level."


Americans admire Clinton more than any other woman in the world, according to a Gallup poll released Monday — the 17th time in 20 years that Clinton has claimed that title. And a recent ABC News/Washington Post poll found that 57 percent of Americans would support Clinton as a candidate for president in 2016, with just 37 percent opposed. Websites have already cropped up hawking "Clinton 2016" mugs and tote bags.


Beyond talk of future politics, Clinton's three-week absence from the State Department has raised eyebrows among some conservative commentators who questioned the seriousness of her ailment after she canceled planned Dec. 20 testimony before Congress on the deadly attack on the U.S. diplomatic mission in Benghazi, Libya.


Clinton had been due to discuss with lawmakers a scathing report she had commissioned on the attack. It found serious failures of leadership and management in two State Department bureaus were to blame for insufficient security at the facility. Clinton took responsibility for the incident before the report was released, but she was not blamed. Four officials cited in the report have either resigned or been reassigned.


___


Associated Press writer Ken Thomas in Washington and AP Chief Medical Writer Marilynn Marchione in Milwaukee contributed to this report.


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Senate approves "fiscal cliff" deal, crisis eased


WASHINGTON (Reuters) - The Senate moved the U.S. economy back from the edge of a "fiscal cliff" on Tuesday, voting to avoid imminent tax hikes and spending cuts in a bipartisan deal that could still face stiff challenges in the House of Representatives.


In a rare New Year's session at around 2 a.m. EST (0700 GMT), senators voted 89-8 to raise some taxes on the wealthy while making permanent low tax rates on the middle class that have been in place for a decade.


But the measure did little to rein in huge annual budget deficits that have helped push the U.S. debt to $16.4 trillion.


The agreement came too late for Congress to meet its own deadline of New Year's Eve for passing laws to halt $600 billion in tax hikes and spending cuts which strictly speaking came into force on Tuesday.


But with the New Year's Day holiday, there was no real world impact and Congress still had time to draw up legislation, approve it and backdate it to avoid the harsh fiscal measures.


That will need the backing of the House where many of the Republicans who control the chamber complain that President Barack Obama has shown little interest in cutting government spending and is too concerned with raising taxes.


All eyes are now on the House which is to hold a session on Tuesday starting at noon (1700 GMT).


Obama called for the House to act quickly and follow the Senate's lead.


"While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay," he said in a statement.


"There's more work to do to reduce our deficits, and I'm willing to do it. But tonight's agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans," Obama said.


Members were thankful that financial markets were closed, giving them a second chance to return to try to head off the fiscal cliff.


But if lawmakers cannot pass legislation in the coming days, markets are likely to turn sour. The U.S. economy, still recovering from the 2008/2009 downturn, could stall again if Congress fails to fix the budget mess.


"If we do nothing, the threat of a recession is very real. Passing this agreement does not mean negotiations halt, far from it. We can all agree there is more work to be done," Majority Leader Harry Reid, a Democrat, told the Senate floor.


A new, informal deadline for Congress to legislate is now Wednesday when the current body expires and it is replaced by a new Congress chosen at last November's election.


The Senate bill, worked out after long negotiations on New Year's Eve between Vice President Joe Biden and Senate Republican Minority Leader Mitch McConnell, also postpones for two months a $109 billion "sequester" of sweeping spending cuts on military and domestic programs.


It extends unemployment insurance to 2 million people for a year and makes permanent the alternative minimum tax "patch" that was set to expire, protecting middle-income Americans from being taxed as if they were rich.


'IMPERFECT SOLUTION'


The tax hikes do not sit easy with Republicans but conservative senators held their noses and voted to raise rates for the rich because not to do so would have meant increases for almost all working Americans.


"It took an imperfect solution to prevent our constituents from a very real financial pain, but in my view, it was worth the effort," McConnell said.


House Speaker John Boehner - the top Republican in Congress - said the House would consider the Senate deal. But he left open the possibility of the House amending the Senate bill, which would spark another round of legislating.


"The House will honor its commitment to consider the Senate agreement if it is passed. Decisions about whether the House will seek to accept or promptly amend the measure will not be made until House members ... have been able to review the legislation," Boehner and other House Republican leaders said in a statement.


Boehner has struggled for two years to get control over a group of several dozen Tea Party fiscal conservatives in his caucus who strongly oppose tax increases and demand that he force Obama to make savings in the Medicare and Social Security healthcare and retirement programs.


A campaign-style event held by Obama in the White House as negotiations with Senate leaders were taking place on Monday may have made it more difficult for Republicans to back the deal. In remarks to a group of supporters that resembled a victory lap, the president noted that his rivals were coming around to his way of seeing things.


"Keep in mind that just last month Republicans in Congress said they would never agree to raise tax rates on the wealthiest Americans. Obviously, the agreement that's currently being discussed would raise those rates and raise them permanently," he said to applause before the Senate deal was sealed.


Obama's words and tone annoyed Republican lawmakers who seemed to feel that the Democrat was gloating.


"That's not the way presidents should lead," said Republican Senator John McCain, Obama's rival in the 2008 election.


A deal with the House on Tuesday, while uncertain, would not mark the end of congressional budget fights. The "sequester" spending cuts will come up again in February as will the contentious "debt ceiling," which caps how much debt the federal government can hold.


Republicans may see those two issues as their best chance to try to rein in government spending and clip Obama's wings at the start of his second term.


(Additional reporting by Richard Cowan, Mark Felsenthal, Rachelle Younglai, Kim Dixon and Jeff Mason; Writing by Alistair Bell; Editing by Eric Walsh)



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Ruthless Smuggling Rings Put Rhinos in the Cross Hairs


Joao Silva/The New York Times


A veterinary team removed the horns from a white rhino at a ranch outside Johannesburg, in an attempt to prevent poaching. Rhino horn is valued at nearly $30,000 a pound.







KRUGER NATIONAL PARK, South Africa — They definitely did not look like ordinary big-game hunters, the stream of slender young Thai women who showed up on the veld wearing tight blue jeans and sneakers.




But the rhinoceros carcasses kept piling up around them, and it was only after dozens of these hulking, relatively rare animals were dead and their precious horns sawed off that an extravagant scheme came to light.


The Thai women, it ends up, weren’t hunters at all. Many never even squeezed off a shot. Instead, they were prostitutes hired by a criminal syndicate based 6,000 miles away in Laos to exploit loopholes in big game hunting rules and get its hands on as many rhino horns as possible — horns that are now literally worth more than gold.


“These girls had no idea what they were doing,” said Paul O’Sullivan, a private investigator in Johannesburg who helped crack the case. “They thought they were going on safari.”


The rhino horn rush has gotten so out of control that it has exploded into a worldwide criminal enterprise, drawing in a surreal cast of characters — not just Thai prostitutes, but also Irish gangsters, Vietnamese diplomats, Chinese scientists, veterinarians, chopper pilots, antiques dealers and recently an American rodeo star looking for a quick buck who used Facebook to find some horns.


Driven by a common belief in Asia that ground-up rhino horns can cure cancer and other ills, the trade has also been embraced by criminal syndicates that normally traffic drugs and guns, but have branched into the underground animal parts business because it is seen as “low risk, high profit,” American officials say.


“Get caught smuggling a kilo of cocaine, you will receive a very significant prison sentence,” said Ed Grace, a deputy chief with the United States Fish and Wildlife Service. But with a kilogram of rhino horn, he added, “you may only get a fine.”


The typical rhino horn is about two feet long and 10 pounds, much of it formed from the same substance as fingernails. Yet it can fetch nearly $30,000 a pound, more than crack cocaine, and conservationists worry that this “ridiculous price,” as one wildlife manager put it, could drive rhinos into extinction.


Gangs are so desperate for new sources of horn that criminals have even smashed into dozens of glass museum cases all across Europe to snatch them from exhibits.


“Astonishment and rage, that’s what we felt,” said Paolo Agnelli, a manager at the Florence Museum of Natural History, after three rhino horns were stolen last year, including a very rare one from 1824.


American federal agents recently staged a cross-country undercover rhino horn sting operation, called Operation Crash, “crash” being the term for a herd of rhinos.


Among the 12 people arrested: Wade Steffen, a champion steer wrestler from Texas, who pleaded guilty in May to trafficking dozens of horns that he found through hunters, estate sales and Facebook; and two members of an Irish gang — the same gang suspected of breaking into the museums across Europe.


In an e-mail to an undercover agent, an Irish gangster bragged: “Believe me WE NEVER LOSES A HORN TO CUSTOMS, we have so many contacts and people payed off now we can bring anything we want out of nearly any country into Europe.”


Corruption is a huge element, just like in the illegal ivory trade, in which rebel groups, government armies and threadbare hunters have been wiping out tens of thousands of elephants throughout Africa, selling the tusks to sophisticated criminal networks that move them across the globe with the help of corrupt officials.


Here in South Africa, home to the majority of the world’s last surviving 28,000 rhinos or so, the country is throwing just about everything it has to stop the slaughter — thousands of rangers, the national army, a new spy plane, even drones — but it is losing.


The number of rhinos poached in South Africa has soared in the past five years, from 13 killed in 2007 to more than 630 this year. The prehistoric, battleship-gray animals are often found on their knees, bleeding to death from a gaping stump on their face.


“Ever seen a dead rhino?” said Philip Jonker, who works for a private security firm that has gone into wildlife protection. “It’s worse than going to a funeral.”


Gaia Pianigiani contributed reporting from Rome.



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Kim Kardashian: From Divorce Drama to Baby Mama in 5 Clicks





Follow her odyssey from her messy split with Kris Humphries to her great expectation with Kanye West








Credit: Prahl/Winslow/Splash News Online



Updated: Monday Dec 31, 2012 | 11:45 AM EST




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FDA approves 1st new tuberculosis drug in 40 years


WASHINGTON (AP) — The Food and Drug Administration on Monday approved a Johnson & Johnson tuberculosis drug that is the first new medicine to fight the deadly infection in more than four decades.


The agency approved J&J's pill, Sirturo, for use with older drugs to fight a hard-to-treat strain of tuberculosis that has not responded to other medications. However, the agency cautioned that the drug carries risks of potentially deadly heart problems and should be prescribed carefully by doctors.


Roughly one-third of the world's population is estimated to be infected with the bacteria causing tuberculosis. The disease is rare in the U.S., but kills about 1.4 million people a year worldwide. Of those, about 150,000 succumb to the increasingly common drug-resistant forms of the disease. About 60 percent of all cases are concentrated in China, India, Russia and Eastern Europe.


Sirturo, known chemically as bedaquiline, is the first medicine specifically designed for treating multidrug-resistant tuberculosis. That's a form of the disease that cannot be treated with at least two of the four primary antibiotics used for tuberculosis.


The standard drugs used to fight the disease were developed in the 1950s and 1960s.


"The antibiotics used to treat it have been around for at least 40 years and so the bacterium has become more and more resistant to what we have," said Chrispin Kambili, global medical affairs leader for J&J's Janssen division.


The drug carries a boxed warning indicating that it can interfere with the heart's electrical activity, potentially leading to fatal heart rhythms.


"Sirturo provides much-needed treatment for patients who have don't have other therapeutic options available," said Edward Cox, director of the FDA's antibacterial drugs office. "However, because the drug also carries some significant risks, doctors should make sure they use it appropriately and only in patients who don't have other treatment options."


Nine patients taking Sirturo died in company testing compared with two patients taking a placebo. Five of the deaths in the Sirturo group seemed to be related to tuberculosis, but no explanation was apparent for the remaining four.


Despite the deaths, the FDA approved the drug under its accelerated approval program, which allows the agency to clear innovative drugs based on promising preliminary results.


Last week, the consumer advocacy group Public Citizen criticized that approach, noting the drug's outstanding safety issues.


"The fact that bedaquiline is part of a new class of drug means that an increased level of scrutiny should be required for its approval," the group states. "But the FDA had not yet answered concerns related to unexplained increases in toxicity and death in patients getting the drug."


The FDA said it approved the drug based on two mid-stage studies enrolling 440 patients taking Sirturo. Both studies were designed to measure how long it takes patients to be free of tuberculosis.


Results from the first trial showed most patients taking Sirturo plus older drugs were cured after 83 days, compared with 125 days for those taking a placebo plus older drugs. The second study showed most Sirturo patients were cured after 57 days.


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Wall Street up slightly in choppy trade over "cliff" worry

NEW YORK (Reuters) - Wall Street edged higher in a choppy session on Monday, with the S&P 500 on track for double-digit gains for the year, as politicians bargained for a deal to avert the "fiscal cliff."


Taxes were set to rise for many Americans this week unless U.S. lawmakers could cut a last-minute deal, an outcome that was possible but seemed unlikely.


Senate Majority Leader Harry Reid said the Senate would reconvene at 11 a.m. Washington time (1600 GMT) to continue discussions on the fiscal cliff - $600 billion in automatic tax hikes and spending cuts that kick in January 1.


The last trading session of the year is expected to be volatile on low volume and as investors keep a close eye on headlines out of Washington.


"Even if we end up with a deal, it will be just a band-aid, not a real fix. So we will see a volatile session today, with all eyes on the debates, comments out of Washington," said Tim Ghriskey, chief investment officer at Solaris Group in Bedford Hills, New York.


"I'm not expecting a major rally or a selloff," Ghriskey added.


Despite recent declines over the stalemated budget talks, the S&P 500 is up about 11.5 percent for the year compared with a nearly flat performance in 2011. The Dow industrials are about 6 percent higher and the Nasdaq composite is up about 14 percent for 2012.


The Dow Jones industrial average <.dji> was up 7.45 points, or 0.06 percent, at 12,945.56. The Standard & Poor's 500 Index <.spx> was up 4.53 points, or 0.32 percent, at 1,406.96. The Nasdaq Composite Index <.ixic> was up 17.63 points, or 0.60 percent, at 2,977.95.


Bank stocks rose after a New York Times report that U.S. regulators are nearing a $10 billion settlement with several banks that would end the government's efforts to hold lenders responsible for faulty foreclosure practices.


Bank of America Corp was up 0.4 percent at $11.41 and Citigroup rose 0.2 percent to $39.08.


While midnight is the deadline for a fiscal deal, the government can pass legislation in 2013 that retroactively cancels or moderates the impact of going over the fiscal cliff.


Investors have remained relatively sanguine about the process, believing it will eventually be solved. In the past two months markets have not shown the kind of volatility that was present during the fight to raise the debt ceiling in 2011.


Rather, equities have largely performed well in the last two months, buoyed by signs of economic recovery, an improving housing market and monetary policy designed to stimulate growth and lower unemployment.


However, U.S. stocks dropped on Friday, with significant losses in the last minutes of trading, as prospects for a deal worsened at the beginning of the weekend.


On Sunday, President Barack Obama said on NBC's "Meet the Press" investors could begin to show greater concerns in the new year.


(Reporting By Angela Moon; Editing by Kenneth Barry)



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