Dow briefly negative; S&P 500 pares gain

Perhaps the most exciting thing about Peter Jackson's landmark, blockbuster Lord of the Rings films was that they made fans, through a combination of stunning landscapes and intricate special effects and soaring music and dramatic spectacle, feel as though we were seeing an almost impossible elevation of the potential size and scope of movies. Here was a rich, dense, sprawling series of films that thundered like myths, that were breathtaking in their realization of some pretty huge ambitions. ...
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Afghan Army Still Needs Support, Pentagon Says





WASHINGTON — As President Obama considers how quickly to withdraw the remaining 68,000 American troops in Afghanistan and turn over the war to Afghan security forces, a bleak new Pentagon report has found that only one of the Afghan National Army’s 23 brigades is able to operate independently without air or other military support from the United States and NATO partners.




The report, released Monday, also found that violence in Afghanistan is higher than it was before the surge of American forces into the country two years ago, although it is down from a high in the summer of 2010.


The assessment found that the Taliban remain resilient, that widespread corruption continues to weaken the central Afghan government and that Pakistan persists in providing critical support to the insurgency. Insider attacks by Afghan security forces on their NATO coalition partners, while still small, are up significantly: there have been 37 so far in 2012, compared with 2 in 2007.


As bright spots the report identified the continued transition by Afghan security forces into taking the lead on most routine patrols throughout the country and a decline in violence in populated areas like Kabul, the Afghan capital, and Kandahar, the largest city in the south.


The assessment, “Report on Progress Toward Security and Stability in Afghanistan,” is required twice a year by Congress and covers the six-month period from April 1 through the end of September. Although the problems in the report have been familiar for years to national security officials in Washington, the report’s publication comes at an important juncture in the war.


American officials say that Gen. John R. Allen, the senior American commander in Afghanistan, wants to keep a large majority of the 68,000 troops in Afghanistan through the fighting season next fall so that Afghan forces have as much support as possible as they move out on their own by 2014. But military officials anticipate that the White House may push for a more rapid withdrawal to cut losses in an increasingly unpopular war.


More than 2,000 American service members have died in the war, which has cost the United States more than $500 billion since 2001. More than 1,200 American service members have died in Afghanistan from the beginning of 2010 to the present, which is roughly the period of the surge.


Obama administration officials have said that progress in the war in large part depends on whether the Taliban could rebuild after the hammering it took during the surge, when American forces, with 33,000 additional troops, aggressively pursued insurgents and drove them from critical territory in the south.


But the report was blunt in its assessment of the Taliban’s current strength. “The Taliban-led insurgency remains adaptive and determined, and retains the capability to emplace substantial numbers of I.E.D.s and to conduct isolated high-profile attacks,” the report said, using the term for homemade bombs. “The insurgency also retains a significant regenerative capacity.”


The report said that although the insurgents had less capability to directly attack American and Afghan forces, they had increasingly resorted to “assassinations, kidnappings, intimidation tactics, encouraging insider attacks and strategic messaging campaigns.”


A defense official who briefed reporters at the Pentagon sought to offer a more positive picture of the Afghan security forces’ abilities than the report would suggest. Acknowledging that the progress of the security forces had been “incremental,” the official said that many of the forces patrol and carry out some operations independently, without help from NATO. “They often don’t rely on any assistance from us at all,” said the official, who declined to be named under ground rules imposed by the Pentagon.


But the official said there were nonetheless broad problems with the Afghan National Army and the Afghan National Police, which together number 350,000 personnel. The security forces still depend over all on American air power, communications, intelligence gathering, logistics and leadership. That is true especially at the level of a brigade, which typically is composed of 3, 000 to 5,000 troops.


The official acknowledged that it would be a “challenge” to have the security forces ready to defend their own country by the end of 2014, when most American troops are to be out of Afghanistan. The White House is debating how many American forces should be left in the country after 2014 and it has opened negotiations with the Afghans on what their mission should be.


The defense official said that the rise in violence in Afghanistan — measured by what the report termed “enemy initiated attacks” — was a result of Afghan security forces pushing into Taliban-dominated areas, forcing the Taliban to fight back. The official cited three volatile districts in Kandahar Province — Maiwand, Panjwai and Zhari — as highly contested, violent areas.


Although the report did not provide month-by-month specific numbers of enemy-initiated attacks, it plotted them on a bar graph that showed, for example, that in July 2012 there were slightly more than 3,000 enemy-initiated attacks. In July 2009, before the surge began, the graph showed some 2,000 enemy-initiated attacks.


The official said it was a sign of progress that the report found that enemy-initiated attacks had declined in the city of Kandahar by 62 percent from a year ago.


The report found many problems with the Afghan government that American security officials have been aware of for years. The government, the report said, suffers from “widespread corruption, limited human capacity, lack of access to rural areas due to a lack of security, a lack of coordination between the central government and the Afghan provinces and districts, and an uneven distribution of power among the judicial, legislative and executive branches.”


One area of improvement, the report said, was the American relationship with Pakistan, which has been acrimonious in recent years. The report noted that the Pakistanis had agreed to reopen their country to trucks transporting matériel for the war in Afghanistan. However, the report said that “tensions remain” over insurgent sanctuaries in Pakistan and cross-border attacks.


The report had been due to be released in early November, before the presidential election, but was delayed. The Pentagon did not give a reason for the delay.


Michael R. Gordon contributed reporting.



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Man Builds Full-Scale Replica of Noah's Ark















12/11/2012 at 02:15 PM EST







Johan Huibers and his ark


Peter Dejong/AP


He may have trouble finding two animals of every kind, but Johan Huibers of the Netherlands isn't one to be dissuaded.

After 20 years, the professional builder completed his goal of building a full-scale, fully-operational version of Noah's Ark, using Genesis, books 6-9, in The Bible as his guide.

Huibers converted cubits to modern measurements to pull off the feat, reports the Associated Press, leading to an impressive wooden vessel that is 427 feet long, 95 feet wide and 75 feet high.

But just to be clear, the Dutchman, a Christian, is not expecting a flood of Biblical proportions anytime soon.

"I had a call from American television," he told AP with a laugh. "This has nothing to do with the end of the Mayan calendar."

Instead, citing what The Bible predicts might be in store for Earth, Huibers says, "I want to make people question that so that they go looking for answers." He also hopes people will ultimately find salvation through God and eternal life.

And while the ark is not currently occupied with multitudes of four-legged creatures – though there are reportedly some plastic and stuffed replicas of larger species onboard for atmosphere – there is a small petting zoo with ponies, dogs, sheep, rabbits and exotic birds aboard the ship, which is moored just south of Rotterdam, as well as a restaurant and movie theater that can seat 50.

See more photos inside the ark on CNN.com.

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APNewsBreak: DA investigating Texas cancer agency


AUSTIN, Texas (AP) — The Texas prosecutor responsible for investigating public corruption among state officials said Tuesday that he has opened an investigation into the state's troubled $3 billion cancer-fighting agency.


Gregg Cox, director of the Travis County district attorney's public integrity unit, told The Associated Press that an investigation has begun into the Cancer Prevention and Research Institute of Texas. The agency also is under investigation by the Texas attorney general's office after an $11 million grant to a private company did not receive the proper review.


Cox said his unit, which prosecutes crimes related to the operation of state government, is beginning its investigation not knowing "what, if any, crime occurred" at CPRIT.


His announcement came on the same day that CPRIT said its executive director had submitted his resignation letter and amid escalating scrutiny over the management of the nation's second-biggest pot of cancer research dollars.


CPRIT has not been able to focus on fighting the disease due to "wasted efforts expended in low value activities" during the past tumultuous eight months, Executive Director Bill Gimson wrote in a resignation letter dated Monday. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.


Gimson has led the state agency since it launched in 2009. But he fell under mounting criticism over the recent disclosure that an $11 million award to a private company was never reviewed. It was the second time this year that a lucrative taxpayer-funded grant instigated backlash and raised questions about oversight.


"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote.


The Texas attorney general's office has said it is looking into CPRIT's $11 million grant to Dallas-based Peloton Therapeutics. An internal audit performed by the agency revealed that Peloton's proposal was approved for funding in 2010 without being reviewed by an outside panel.


Gimson said last week that Peloton's funding was the result of an honest mistake that happened when the agency was still young and in the process of installing checks and balances. Agency emails surrounding the Peloton grant are no longer available, Gimson said, and state investigators said they will work to find them.


Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far. The agency's former chief science officer, Nobel laureate Alfred Gilman, resigned earlier this year over a separate $20 million award that Gilman claimed received a thin review. That led some of the nation's top scientists to accuse the agency of charting a politically-driven path.


___


Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber


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Tech titans, "cliff" hopes push indexes up

NEW YORK (Reuters) - Rising shares in technology companies helped push major stock indexes up around 1 percent on Tuesday, as the S&P 500 reached its best levels since mid-October, recouping its post-election selloff.


A 3.1 percent gain in Apple Inc's stock lifted the Nasdaq, as the largest U.S. company by market value rebounded from a week in which investors took profits before a possible tax rise next year. Prior to Tuesday's trading, Apple shares had lost 25 percent from an all-time intraday high hit in September.


Other major tech stocks also rose. Texas Instruments gained 3.8 percent to $30.97 after bumping up its profit target late Monday. That helped other chipmakers rally, with the PHLX Semiconductor index <.sox> up 2 percent. Microsoft rose 1.8 percent to $27.44.


"I see a lot of buying in tech, and that's taking the whole market up with it," said Tom Donino, co-head of trading at First New York Securities in New York.


The Dow Jones industrial average <.dji> gained 112.57 points, or 0.85 percent, at 13,282.45. The Standard & Poor's 500 Index <.spx> was up 13.23 points, or 0.93 percent, at 1,431.78. The Nasdaq Composite Index <.ixic> rose 40.95 points, or 1.37 percent, at 3,027.91.


Retailers like luggage maker Tumi Holding Inc and Michael Kors Holding gained on Tuesday after a positive report from Goldman Sachs Equity Research. Tumi was up 4.1 percent to $21.80, and Michael Kors gained 2.6 percent, reaching $51.08.


Traders voiced cautious optimism as the pace of negotiations over the "fiscal cliff" quickened. However, representatives from both parties cautioned that an agreement remains uncertain.


Republican House Speaker John Boehner called on President Barack Obama to propose a counter-offer on Tuesday.


"I guess in our own dysfunctional way, there is progress," said Frank Davis, director of sales and trading at LEK Securities in New York.


"Since conversations are occurring, it clarifies at least they are taking some action. My personal gut is they'll jostle this into the holiday week and try to do a last minute push."


Lawmakers worked toward a deal to avoid a series of automatic tax hikes and spending cuts that would hurt U.S. economic growth next year.


The lack of demonstrable progress has kept investors from making aggressive bets in recent weeks.


Still, stocks have steadily marched higher on thin volume. The S&P 500 hovered around 1433.38 on Tuesday, retracing losses incurred in the first seven sessions after Obama's re-election. Gains were broad, with more than two shares rising for every one falling on the New York Stock Exchange and winners outpacing losers on the Nasdaq Stock Exchange by nearly three-to-one.


The U.S. Treasury is selling its remaining stake in insurer American International Group Inc . AIG's shares were up 4.7 percent at $34.94.


The Fed began a two-day policy-setting meeting on Tuesday. The central bank is expected to announce a new round of Treasury bond purchases when the meeting ends on Wednesday to replace its "Operation Twist" stimulus which expires at the end of the year.


(Editing by Kenneth Barry and Nick Zieminski)



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Changing of the Guard: Signals of a More Open Economy in China


Carlos Barria/Reuters


In November, Xi Jinping made his official debut as party chief at the 18th party congress, which military officers attended.







BEIJING — In a strong signal of support for greater market-oriented economic policies, Xi Jinping, the new head of the Communist Party, made a visit over the weekend to the special economic zone of Shenzhen in south China, which has stood as a symbol of the nation’s embrace of a state-led form of capitalism since its growth over the last three decades from a fishing enclave to an industrial metropolis.




The trip was Mr. Xi’s first outside Beijing since becoming party chief on Nov. 15. Mr. Xi visited a private Internet company on Friday and went to Lotus Hill Park on Saturday to lay a wreath at a bronze statue of Deng Xiaoping, the leader who opened the era of economic reforms in 1979, when Shenzhen was designated a special economic zone. Mr. Deng famously later visited the city in 1992 to encourage reviving those economic policies after they had stalled following the violent crackdown on pro-democracy protests in 1989.


“Reform and opening up is a guiding policy that the Communist Party must stick to,” Mr. Xi said, according to Phoenix Television, one of several Hong Kong news organizations that covered the trip. “We must keep to this correct path. We must stay unwavering on the road to a prosperous country and people, and there must be new pioneering.”


In the months before the transition, there were widespread calls, including from people close to Mr. Xi, to adopt more liberal economic policies and even to experiment with greater political openness as a way for the party to maintain its rule. Without much success so far, reformers have long been encouraging the leadership to move toward a more sustainable growth model for China, one that relies more on domestic consumption rather than infrastructure investment and exports, and where state enterprises play less of a role.


Mr. Xi, known as a skillful consensus builder, has kept his ideas carefully veiled throughout his career, but his trip to Shenzhen is the strongest sign yet that he may favor more open policies. In a speech in Beijing on Nov. 29, Mr. Xi spoke of the “Chinese dream” of realizing the nation’s “revival,” which, besides being a call for renewal, also signaled strong nationalist leanings.


Mr. Xi’s father, Xi Zhongxun, was a revered senior official handpicked by Mr. Deng to help shape the new economic policies and oversee the creation of the Shenzhen zone. Mr. Xi’s mother lives in Shenzhen, and he visited her on his trip, according to Hong Kong news reports.


“If he indeed went to Shenzhen, that means he intends to make reform a subject of priority,” said Li Weidong, a liberal political analyst. “That would really be a phenomenon.”


Mr. Li cautioned, though, that the so-called reform policies that followed Mr. Deng’s 1992 southern tour, in his view, “ended up being fake” because China’s boom resulted in widespread corruption and the expansion of state enterprises at the expense of private entrepreneurship.


When Mr. Xi’s predecessor, Hu Jintao, became party chief in 2002, he was seen by many as a potential reformer, but his tenure was marked by conservative policies. For his first trip outside Beijing as party chief, Mr. Hu went in December 2002 to Xibaipo, a hallowed site for the revolution, where he reiterated a speech given by Mao Zedong.


Over the weekend, video footage from Phoenix Television showed a line of minibuses and police cars winding its way through Shenzhen. Mr. Xi and other officials walked outdoors in dark suits. The party’s official news organizations did not immediately report on the trip, but some prominent mainland Chinese news Web sites cited the Hong Kong reports.


Mr. Xi’s early moves as party leader seem aimed at emphasizing national “revival,” a theme he highlighted when he appeared on Nov. 29 with the party’s new seven-man Politburo Standing Committee in a history museum at Tiananmen Square. According to People’s Daily, the party mouthpiece, Mr. Xi stood in front of an exhibition called “The Road to Rejuvenation” and said, “After the 170 or more years of constant struggle since the Opium Wars, the great revival of the Chinese nation enjoys glorious prospects.”


He added: “Now everyone is discussing the Chinese dream, and I believe that realizing the great revival of the Chinese nation is the greatest dream of the Chinese nation in modern times.”


The emphasis on a “Chinese dream” is particular to Mr. Xi, and could prove to be a recurring motif throughout his tenure. The notion of a grand revival — “fu xing” in Mandarin — has been popular with Chinese leaders for at least a century, but Mr. Xi appears to be tapping more deeply into that nationalist vein than his recent predecessors, perhaps recognizing that traditional Communist ideology no longer has popular appeal.


Patrick Zuo contributed research.



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Karina Smirnoff Appears on Don't Trust the B-- in Apt. 23

She's acting with the stars of Don't Trust the B–– in Apt. 23!

Dancing with the Stars pro Karina Smirnoff, who recently made it to week nine with Apolo Ohno in the all-stars season, will appear an upcoming episode of the ABC sitcom.

On the show, James Van Der Beek is participating in Smirnoff's popular televised ballroom dance competition. And he's up against Smirnoff and her partner, Dean Cain, who's also guest starring on the episode, which will air Dec. 11.

Don't Trust the B–– in Apt. 23, which also stars Krysten Ritter and Dreama Walker, isn't the only acting gig for Smirnoff. She's also teaming up with her former DWTS partner, Ralph Macchio, for a movie he's directing that also stars Marsha Mason.

Karina Smirnoff Appears on Don't Trust the B–– in Apt. 23| Dancing With the Stars, James Van Der Beek, Karina Smirnoff

James Van Der Beek

Kelsey McNeal / ABC

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Surprise: New insurance fee in health overhaul law


WASHINGTON (AP) — Your medical plan is facing an unexpected expense, so you probably are, too. It's a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Barack Obama's health care overhaul.


The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.


Employee benefits lawyer Chantel Sheaks calls it a "sleeper issue" with significant financial consequences, particularly for large employers.


"Especially at a time when we are facing economic uncertainty, (companies will) be hit with a multi-million dollar assessment without getting anything back for it," said Sheaks, a principal at Buck Consultants, a Xerox subsidiary.


Based on figures provided in the regulation, employer and individual health plans covering an estimated 190 million Americans could owe the per-person fee.


The Obama administration says it is a temporary assessment levied for three years starting in 2014, designed to raise $25 billion. It starts at $63 and then declines.


Most of the money will go into a fund administered by the Health and Human Services Department. It will be used to cushion health insurance companies from the initial hard-to-predict costs of covering uninsured people with medical problems. Under the law, insurers will be forbidden from turning away the sick as of Jan. 1, 2014.


The program "is intended to help millions of Americans purchase affordable health insurance, reduce unreimbursed usage of hospital and other medical facilities by the uninsured and thereby lower medical expenses and premiums for all," the Obama administration says in the regulation. An accompanying media fact sheet issued Nov. 30 referred to "contributions" without detailing the total cost and scope of the program.


Of the total pot, $5 billion will go directly to the U.S. Treasury, apparently to offset the cost of shoring up employer-sponsored coverage for early retirees.


The $25 billion fee is part of a bigger package of taxes and fees to finance Obama's expansion of coverage to the uninsured. It all comes to about $700 billion over 10 years, and includes higher Medicare taxes effective this Jan. 1 on individuals making more than $200,000 per year or couples making more than $250,000. People above those threshold amounts also face an additional 3.8 percent tax on their investment income.


But the insurance fee had been overlooked as employers focused on other costs in the law, including fines for medium and large firms that don't provide coverage.


"This kind of came out of the blue and was a surprisingly large amount," said Gretchen Young, senior vice president for health policy at the ERISA Industry Committee, a group that represents large employers on benefits issues.


Word started getting out in the spring, said Young, but hard cost estimates surfaced only recently with the new regulation. It set the per capita rate at $5.25 per month, which works out to $63 a year.


America's Health Insurance Plans, the major industry trade group for health insurers, says the fund is an important program that will help stabilize the market and mitigate cost increases for consumers as the changes in Obama's law take effect.


But employers already offering coverage to their workers don't see why they have to pony up for the stabilization fund, which mainly helps the individual insurance market. The redistribution puts the biggest companies on the hook for tens of millions of dollars.


"It just adds on to everything else that is expected to increase health care costs," said economist Paul Fronstin of the nonprofit Employee Benefit Research Institute.


The fee will be assessed on all "major medical" insurance plans, including those provided by employers and those purchased individually by consumers. Large employers will owe the fee directly. That's because major companies usually pay upfront for most of the health care costs of their employees. It may not be apparent to workers, but the insurance company they deal with is basically an agent administering the plan for their employer.


The fee will total $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016. That means the per-head assessment would be smaller each year, around $40 in 2015 instead of $63.


It will phase out completely in 2017 — unless Congress, with lawmakers searching everywhere for revenue to reduce federal deficits — decides to extend it.


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Wall Street inches up as McDonald's and tech lead the way

NEW YORK (Reuters) - Stocks edged higher on Monday, helped by gains in McDonald's after the fast-food giant posted strong sales results, and a move up in technology shares.


Technology stocks were the S&P 500's best-performing sector as Hewlett-Packard Co climbed 2.9 percent to $14.20 on rumors that activist investor Carl Icahn is building a stake in the PC maker. The stock is down 44.5 percent for the year and ranks as the Dow's worst performer.


Tech was also supported by Cisco Systems , which gained 2.4 percent to $19.79 after the company presented its midterm growth strategy on Friday. Monday's rally put the stock on track for its fifth advance in the past six sessions.


U.S. President Barack Obama met with Republican House Speaker John Boehner on Sunday to negotiate a budget deal. A Boehner aide said Monday that talks are continuing.


Persistent worries about the negotiations over the "fiscal cliff," a series of automatic tax hikes and spending cuts that could hurt economic growth next year, have kept market moves small of late.


"There is a general sense that if a deal is struck, that we could have a further advance in the market at the end of this year as well as the first part of next year," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.


The benchmark S&P 500 index has yet to see a move greater than 0.5 percent in either direction for December, and hasn't moved more than 1 percent either way since November 23. However, the market has regained most of the losses incurred post-election as investors refocused on the fiscal cliff.


McDonald's Corp gave the Dow a jolt, gaining 1.4 percent to $89.69, as its November sales were stronger than expected and showed a bounce back from a decline in October.


The Dow Jones industrial average <.dji> was up 23.03 points, or 0.18 percent, at 13,178.16. The Standard & Poor's 500 Index <.spx> was up 0.71 of a point, or 0.05 percent, at 1,418.78. The Nasdaq Composite Index <.ixic> was up 7.35 points, or 0.25 percent, at 2,985.39.


News out of Italy kept sentiment in check as Prime Minister Mario Monti said he would resign after the approval of the 2013 budget. The move added to uncertainty about progress being made to tackle the euro zone's debt problem and drove Italy's borrowing costs higher.


(Reporting by Gabriel Debenedetti and Caroline Valetkevitch; Editing by Jan Paschal)



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Fear of Fighting Haunts Once-Tranquil Damascus


Muzaffar Salman/Reuters


A portrait of President Bashar al-Assad outside the venue of a charity concert by the Syrian National Symphony Orchestra in Damascus on Nov. 21.







DAMASCUS, Syria — Business has been terrible for Abu Tareq, a taxi driver, so last week, without telling his wife, he agreed to drive a man to the Damascus airport for 10 times the usual rate. But, he said later, he will not be doing that again.




On the airport road, he could hear the crash of artillery and the whiz of sniper fire. Dead rebels and soldiers lay on the roadsides. Abu Tareq saw a dog eating the body of a soldier.


“I will never forget this sight,” said Abu Tareq, 50, who gave only a nickname for safety reasons. “It is the road of the dead.”


Damascus, Syria’s capital, is one of the world’s oldest continuously inhabited cities, a touchstone of history and culture for the entire region. Through decades of political repression, the city preserved, at least on the surface, an atmosphere of tranquillity, from its wide downtown avenues to the spacious, smooth-stoned courtyard of the Umayyad Mosque and the vine-draped alleys of the Old City, where restaurants and bars tucked between the storehouses of medieval merchants hummed with quiet conversation.


Now, though, the rumble of distant artillery echoes through the city, and its residents are afraid to leave their neighborhoods. Cocooned behind rows of concrete blocks that close off routes to the center, they huddle in fear of a prolonged battle that could bring destruction and division to a place where secular and religious Syrians from many sects — Sunni, Shiite, Alawite, Christian and others — have long lived peacefully.


For more than a week, Syrian rebels and government forces have fought for the airport road, as the military tries to seal off the capital city, the core of President Bashar al-Assad’s power, from a semicircle of rebellious suburbs. Rebels have now kept the pressure on the government for as long as they did during their previous big push toward Damascus last summer. This time, improved supply lines and tactics, some rebels and observers say, may provide a more secure foothold.


But the security forces wield overwhelming firepower, and while it has been unable to subdue the suburbs, some rebel fighters say they lack the intelligence information, arms and communication to advance. That raises the specter of a destructive standoff like the one that has devastated the commercial hub of Aleppo.


“Damascus was the city of jasmine,” Mahmoud, 40, a public-school teacher, said in an interview in the capital. “It is not the city I knew just a few weeks ago.”


Car bombs have ripped through neighborhoods, their targets and perpetrators only guessed at. Checkpoints choke traffic, turning 20-minute jaunts into three-hour ordeals. Wealthy residents find it quicker and safer to drive to Beirut, Lebanon, for a weekend trip than to the Old City.


Shells have been fired from Mount Qasioun overlooking Damascus, a favorite destination from which to admire the city’s sparkling lights. West of downtown, where the palace stands on a plateau, things are relatively quiet. But from the mountain, puffs of smoke can now be seen over suburbs in an arc from northeast to southwest.


Mahmoud, unable to find heating oil and medicine for his sick wife, said his grocer has lectured him daily on shortages and soaring prices. The once-ubiquitous government, he said, now appears to have no role beyond flooding streets with soldiers and security officers, “who are sometimes good and sometimes rude.”


People with roots in other towns have left, he said, “but what about me, who is a Damascene, and has no other city?”


The sense of claustrophobia has grown as rebels have declared the airport a legitimate target and the government has blocked Baghdad Street, a main avenue out of the city. On Sunday, it blocked the highway south to Dara’a.


In some outlying neighborhoods and nearby suburbs, the front lines seem to be hardening.


On the route into Qaboun, a neighborhood less than two miles from the center of Damascus, the last government checkpoint in recent days was near the municipal building. Less than a quarter-mile on, rebels controlled the area around the Grand Mosque.


An employee of The New York Times reported from Damascus, Syria, and Anne Barnard from Beirut, Lebanon. Neil MacFarquhar contributed reporting from Beirut.



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