IHT Rendezvous: Can Armstrong Be Redeemed? How About Galliano?

LONDON — While Lance Armstrong was (not quite) baring his soul to Oprah Winfrey this week, a very different celebrity, the disgraced London fashion designer John Galliano, was taking a small step on the path to redemption.

Two years after he was ousted from Dior in the wake of his arrest for a drunken, anti-Semitic rant in a Paris bar, Mr. Galliano is to make a modest comeback at the New York design studio of Oscar de la Renta.

As Eric Wilson writes over at On the Runway, many had speculated that the man described as “the prince of romantic glamor” would never work in the fashion industry again after his downfall in 2011.

However, with the support of fashion luminaries like Anna Wintour and Grace Coddington of Vogue, he appears set for rehabilitation.

“As far as a comeback strategy, working for Mr. de la Renta in a casual capacity, practically an intern, is, in effect, a way of testing the waters,” Mr. Wilson writes.

The downfall of Mr. Galliano, born in Gibraltar and raised in London,  came after two patrons of a bar in the Marais district of Paris accused him of making an anti-Semitic slur.

An online video later surfaced that showed a previous incident in which a bleary Mr. Galliano told fellow customers in the same bar, “I love Hitler” and, “People like you would be dead.” “Your mothers, your forefathers” would all be “gassed,” he said.

All the more surprising, then, that among those who welcomed the 52-year-old designer’s return was Abraham H. Foxman, leader  of the Anti-Defamation League, the American anti-Semitism watchdog group.

Mr. Foxman said on Friday, “Mr. Galliano has worked arduously in changing his worldview and dedicated a significant amount of time to researching, reading and learning about the evils of anti-Semitism and bigotry.”

The Anti-Defamation League had met the designer on numerous occasions and said it hoped to work with him in the future as a spokesman against bigotry.

A Paris court fined Mr. Galliano €6,000, or $8,000, for racial insults after he offered his apologies, and last year President François Hollande of France stripped him of the Légion d’Honneur that he was awarded in 2009.

The designer’s behavior was widely blamed on drug and alcohol addiction, which he’s sought treatment for over the last two years.

“Under intense pressure to produce at least eight full collections a year, Galliano — like so many other artists — reached for sustenance and oblivion,” Suzy Menkes, the I.H.T.’s fashion editor, wrote in November.

Another celebrity who has admitted to turning to drugs, but for very different reasons, is Lance Armstrong, the disgraced American cycling superstar.

Summing up the response among cycling and anti-doping officials, my colleague Ian Austen wrote: “Many characterized Armstrong’s interview with Oprah Winfrey as being more self-serving than revelatory.”

Has Mr. Armstrong done enough to pave the way for an eventual comeback or were his television appearances indeed self-serving? And what about Mr. Galliano? Should his repentance for his unpardonable remarks lead to a second chance at success? Does either celebrity — or both — deserve redemption? Tell us what you think.

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Notre Dame football star says he was not in on hoax – ESPN

(Reuters) – Notre Dame football star Manti Te’o has denied ever being in on an elaborate hoax, telling ESPN he had believed his relationship with a woman who turned out to be an online fabrication was real.

The tragic story of his girlfriend and her injuries from a car accident and death from leukemia was one of the most widely recounted U.S. sports stories last year as Notre Dame made a drive toward the national championship game.

“I wasn’t faking it,” Te’o told ESPN in an off-camera interview on Friday, excerpts of which were posted on ESPN.com. “I wasn’t part of this.”

When asked whether he had made up the tale to support his chances of winning the Heisman Trophy, the highest individual honor for a college football player, Te’o replied: “Well, when they hear the facts they’ll know. They’ll know that there is no way that I could be part of this.”

The interview was Te’o's first since the sports blog Deadspin.com on Wednesday exposed the heart-wrenching tale of his girlfriend, Lennay Kekua, and her death as a hoax and that a friend of Te’o's named Ronaiah Tuiasosopo was behind it.

Te’o told ESPN that Tuiasosopo called him on Wednesday and admitted he was behind the hoax and it was then Te’o was sure the woman had never existed.

“I don’t wish an ill thing to somebody,” Te’o said of Tuiasosopo, according to ESPN. “I just hope he learns. I think embarrassment is big enough.”

Outside Tuiasosopo’s home in Palmdale, California, on Thursday, a member of his family who did not identify himself told reporters they had no comment.

Te’o acknowledged in a statement on Wednesday that he had never met the woman in person, though he considered her his girlfriend and said he had been duped.

In the ESPN interview, Te’o said he tried to video chat with her several times, but she could never be seen on the other end. He also said he intentionally told people stories about her in a way that would make people believe they had met in person.

“I even knew that it was crazy that I was with somebody that I didn’t meet,” Te’o said.

NATIONAL PROMINENCE

ESPN said the interview was held at a training facility in Florida where Te’o has been preparing for the National Football League draft. The star linebacker was expected to be a high draft pick before the hoax was revealed.

Te’o sprang to national prominence last fall when he led Notre Dame to a victory over Michigan State within days of learning his grandmother and girlfriend had both died. The grandmother’s death was real.

The story grew to become a big feature in coverage of the team, which went undefeated in the regular season and reached the national championship game. Alabama defeated Notre Dame in the title game on January 7.

Notre Dame, one of the most powerful institutions in U.S. collegiate athletics, held a news conference within hours of the Deadspin.com article to say that Te’o had been duped.

Notre Dame Athletic Director Jack Swarbrick said on Friday the Indiana university was comfortable, based on a private investigation it launched and on four years experience with Te’o, that he was the victim and encouraged Te’o to speak publicly.

(Reporting by David Bailey in Minneapolis; Editing by Eric Beech)

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Bethenny Frankel & Warren Lichtenstein Are Just 'Great Friends': Report

Buzz

By Alison Schwartz

01/20/2013 at 01:45 PM EST

Bettheny Frankel and Warren G. Lichtenstein

Gary Gershoff/Getty; Haruyoshi Yamaguchi/Getty

As Bethenny Frankel focuses on healing after filing for divorce from husband Jason Hoppy, she seems to have a very special supporter by her side: hedge fund mogul Warren Lichtenstein, who's reportedly been helping her move past her split.

But is she moving on with Lichtenstein, the chairman and CEO of Steel Partners Holdings L.P.?

"Bethenny and Warren have been great friends for more than 20 years, and he has really been a support system during this sad time," a source tells the U.K.'s Daily Mail.

The source also quelled rumors that the reality star, 42, moved into his $6.3 million Upper East Side, N.Y., apartment. However, she did clock in some time at his Manhattan digs – when he wasn't home.

She reportedly stayed at the billionaire's place for one night with 2-year-old daughter Bryn "so that she and Bryn could have some girl time," adds the source. Hoppy, whom she married in 2010, still lives in the former couple's Tribeca loft, according to the Daily Mail.

It's been just less than a month since Frankel announced her split from Hoppy. "I feel like a failure," she recently told Ellen DeGeneres. "I really put it out there. I wanted the fairy tale."

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Flu season fuels debate over paid sick time laws

NEW YORK (AP) — Sniffling, groggy and afraid she had caught the flu, Diana Zavala dragged herself in to work anyway for a day she felt she couldn't afford to miss.

A school speech therapist who works as an independent contractor, she doesn't have paid sick days. So the mother of two reported to work and hoped for the best — and was aching, shivering and coughing by the end of the day. She stayed home the next day, then loaded up on medicine and returned to work.

"It's a balancing act" between physical health and financial well-being, she said.

An unusually early and vigorous flu season is drawing attention to a cause that has scored victories but also hit roadblocks in recent years: mandatory paid sick leave for a third of civilian workers — more than 40 million people — who don't have it.

Supporters and opponents are particularly watching New York City, where lawmakers are weighing a sick leave proposal amid a competitive mayoral race.

Pointing to a flu outbreak that the governor has called a public health emergency, dozens of doctors, nurses, lawmakers and activists — some in surgical masks — rallied Friday on the City Hall steps to call for passage of the measure, which has awaited a City Council vote for nearly three years. Two likely mayoral contenders have also pressed the point.

The flu spike is making people more aware of the argument for sick pay, said Ellen Bravo, executive director of Family Values at Work, which promotes paid sick time initiatives around the country. "There's people who say, 'OK, I get it — you don't want your server coughing on your food,'" she said.

Advocates have cast paid sick time as both a workforce issue akin to parental leave and "living wage" laws, and a public health priority.

But to some business owners, paid sick leave is an impractical and unfair burden for small operations. Critics also say the timing is bad, given the choppy economy and the hardships inflicted by Superstorm Sandy.

Michael Sinesky, an owner of seven bars and restaurants around the city, was against the sick time proposal before Sandy. And after the storm shut down four of his restaurants for days or weeks, costing hundreds of thousands of dollars that his insurers have yet to pay, "we're in survival mode."

"We're at the point, right now, where we cannot afford additional social initiatives," said Sinesky, whose roughly 500 employees switch shifts if they can't work, an arrangement that some restaurateurs say benefits workers because paid sick time wouldn't include tips.

Employees without sick days are more likely to go to work with a contagious illness, send an ill child to school or day care and use hospital emergency rooms for care, according to a 2010 survey by the University of Chicago's National Opinion Research Center. A 2011 study in the American Journal of Public Health estimated that a lack of sick time helped spread 5 million cases of flu-like illness during the 2009 swine flu outbreak.

To be sure, many employees entitled to sick time go to work ill anyway, out of dedication or at least a desire to project it. But the work-through-it ethic is shifting somewhat amid growing awareness about spreading sickness.

"Right now, where companies' incentives lie is butting right up against this concern over people coming into the workplace, infecting others and bringing productivity of a whole company down," said John A. Challenger, CEO of employer consulting firm Challenger, Gray & Christmas.

Paid sick day requirements are often popular in polls, but only four places have them: San Francisco, Seattle, Washington, D.C., and the state of Connecticut. The specific provisions vary.

Milwaukee voters approved a sick time requirement in 2008, but the state Legislature passed a law blocking it. Philadelphia's mayor vetoed a sick leave measure in 2011; lawmakers have since instituted a sick time requirement for businesses with city contracts. Voters rejected a paid sick day measure in Denver in 2011.

In New York, City Councilwoman Gale Brewer's proposal would require up to five paid sick days a year at businesses with at least five employees. It wouldn't include independent contractors, such as Zavala, who supports the idea nonetheless.

The idea boasts such supporters as feminist Gloria Steinem and "Sex and the City" actress Cynthia Nixon, as well as a majority of City Council members and a coalition of unions, women's groups and public health advocates. But it also faces influential opponents, including business groups, Mayor Michael Bloomberg and City Council Speaker Christine Quinn, who has virtually complete control over what matters come to a vote.

Quinn, who is expected to run for mayor, said she considers paid sick leave a worthy goal but doesn't think it would be wise to implement it in a sluggish economy. Two of her likely opponents, Public Advocate Bill de Blasio and Comptroller John Liu, have reiterated calls for paid sick leave in light of the flu season.

While the debate plays out, Emilio Palaguachi is recovering from the flu and looking for a job. The father of four was abruptly fired without explanation earlier this month from his job at a deli after taking a day off to go to a doctor, he said. His former employer couldn't be reached by telephone.

"I needed work," Palaguachi said after Friday's City Hall rally, but "I needed to see the doctor because I'm sick."

___

Associated Press writer Susan Haigh in Hartford, Conn., contributed to this report.

___

Follow Jennifer Peltz at http://twitter.com/jennpeltz

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Euro zone surveys to offer hope as Japan eases

LONDON (Reuters) - The prospect of stronger European manufacturing surveys and decisive monetary easing in Japan this week ought to bolster confidence that the global economy can look forward to better days.

It is definitely not yet time to break open the champagne.

The index derived from polls of purchasing managers across the euro zone, though recovering, is likely to remain well below the 50 threshold that signals expansion.

If the Bank of Japan bows to political pressure and relaxes policy more boldly, it is because the country's noxious cocktail of a huge debt burden, deflation and dwindling external surpluses threatens an eventual fiscal crunch.

And an expected contraction in Britain's economy when fourth-quarter figures are released on Friday will be a reminder, as was Germany's grim end to 2013, that Europe has to dig itself out of a deep hole.

"The real hard economic data are still very negative," said Bert Colijn, an economist in Brussels with the Conference Board, a business research group. "There are improvements, but it still doesn't look that bright."

However, he said the economic news from the euro zone rim was not quite as troubling, and the mood was brightening among the core countries of the single currency area.

Lena Komileva, managing director of G+ Economics, a London consultancy, said it was hard to argue against investors' new-found appetite for riskier assets given that the volatility of equity prices was approaching historical lows and yields on corporate bonds had fallen sharply.

"Financial stress indicators signal a significant improvement in the health of the global economy," she said.

Friday's solid fourth-quarter economic data from China reinforced that view.

PURCHASERS' PROGRESS

Economists polled by Reuters expect an uptick in Thursday's advance purchasing managers' indexes for France and Germany as well as for the euro zone as a whole.

Germany's IFO business confidence survey on Friday is also projected to have risen for the third month in a row.

"The fact that business confidence measures are coming in more positive is a good sign," Colijn commented.

Commerzbank said its leading indicator for the German economy reached an all-time high in December after the European Central Bank's pledge to buy the bonds of troubled economies eased fears of a break-up of the euro.

"We assume that increasingly more companies are gaining confidence and viewing business prospects more positively," said Commerzbank economist Ralph Solveen.

BNP Paribas is also bullish on Germany and is looking for a marked pick-up in growth.

In addition to the ECB's safety net, the global manufacturing cycle is pointing up, while a strong labor market and easy financial conditions are supporting consumption, economists Evelyn Herrmann and Ken Wattret said in a report.

"Moreover, should the global economy surpass expectations and euro zone market stress ease further, upside surprises would be likely to follow. A key issue in this respect would be higher export growth and confidence triggering a stronger rebound in investment," they said.

That is exactly what Japan would like to see, too.

To that end, the government of new Prime Minister Shinzo Abe and the Bank of Japan have agreed to set 2 percent inflation as a new target, supplanting a softer 1 percent ‘goal', according to sources familiar with the central bank's thinking.

They said the BOJ, which meets on Monday and Tuesday, will also consider making an open-ended commitment to buy assets until the target is in sight.

FOR AND AGAINST EASING

Credit Suisse's global equity strategists said an easier monetary policy is justified to cushion the significant fiscal tightening on which Japan will have to embark before long to whittle down a government debt that has reached some 220 percent of national income.

This task is all the more pressing because Japan is moving towards a current account deficit, which will make it more reliant on foreign investors to finance its budget shortfall, Credit Suisse argued.

Trade figures on Thursday will underline the deterioration in Japan's external accounts, with economists polled by Reuters forecasting the sixth consecutive monthly deficit.

Nomura reckons the deficit for all of 2012 widened to 6.6 trillion yen ($73.4 billion) from 2.7 trillion in 2011.

Japanese equities have surged in anticipation of a more aggressive monetary policy stance, but not everyone is happy.

The accompanying slump in the yen has prompted Russia's deputy central bank governor to warn of a new round of ‘currency wars' and the medium-term risk of running ultra-loose monetary policies is likely to be a theme of the World Economic Forum in Davos, which opens on Wednesday.

"I'm pretty worried about the new policies of Japan's newly elected government," German Finance Minister Wolfgang Schaeuble said last week. "When you think of the surplus of liquidity on global financial markets, it is fuelled further by a wrong understanding of central bank policy.

(Editing by Susan Fenton)

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Africa Must Take Lead in Mali, France Says

Marco Gualazzini for The New York Times

A French armored vehicle patrolled a strategic bridge over the Niger River in Markala, Mali, on Saturday.

PARIS — With French officials saying confidently on Saturday that an advance by Islamist militants on Bamako, Mali’s capital, had been halted, France’s foreign minister told African leaders that “our African friends need to take the lead” in a multilateral military intervention in Mali.

Foreign Minister Laurent Fabius spoke in Abidjan, Ivory Coast, at a summit meeting to discuss how to accelerate the involvement of West African troops in Mali, although he acknowledged that it could be some weeks before they were there in force.

“Step by step, I think it’s a question from what I heard this morning of some days, some weeks,” Mr. Fabius said, referring to the time frame when the bulk of troops from the Economic Community of West African States, the regional group known as Ecowas, would arrive.

“We must, as quickly as possible, furnish the logistical and financial means required by the Malian Army and Ecowas,” he said.

France intervened militarily last week after the Malian government said it was afraid that Islamist militants could continue their push south and take over Bamako with little opposition from a dispirited army.

But once the situation is more stable, France wants African troops to do most of the work to wrest the north of Mali from the Islamists, as called for under a United Nations Security Council resolution passed in December.

French officials conceded, however, that there were disputes over how African participation would be paid for and about the best way to transport troops to Mali. In Paris, French officials said that the United States, while willing to help ferry African troops, wanted to bill France for the use of transport aircraft, which officials said would not go down well with the French.

But the officials said that France and the United States were sharing intelligence about Mali and the Sahel region garnered from drones and other means, and discussions with Washington continued amicably.

The African troops also need equipment and training, and Mr. Fabius pointed to a donors’ summit meeting in Ethiopia scheduled for Jan. 29 as “a key moment.” He called on “all partners of African development” to “make generous contributions to this work of solidarity, peace and security.”

The French defense minister, Jean-Yves Le Drian, said Saturday that France now had 2,000 troops in Mali, with more in the region, and that France was likely to add to its forces there. He said the Mali operation could involve at least 4,000 soldiers in the region, and French officials said that they would put no fixed limit on the number of troops that might be required to restore the territorial integrity of Mali and drive back the Islamist fighters, who have ties to Al Qaeda.

The French officials emphasized that the targets of the mission were the Islamists, not the Tuaregs or other Malians fighting for more autonomy or independence in the north. They also said that Islamist terrorists in Mali had made four or five efforts to carry out operations in France in the last few years.

Despite reports of French forces fighting on the ground in and around the village of Diabaly, Mr. Le Drian said that “there has been no ground combat” there, only airstrikes. He dismissed reports from Malian Army sources that French troops were fighting or even in the town. “I think someone is hallucinating,” he said. “There has been no fighting on the ground in Diabaly.”

Residents have told local news agencies that the Islamists have left Diabaly, which they seized as an important way station on the road to the administrative capital, Ségou, north of Bamako.

French airstrikes have halted the Islamist advance toward Mopti and nearby Sévaré, French officials said, while they confirmed that the village of Konna, north of Mopti, was now back in the hands of Mali’s government. The French have also sent troops along with Malian forces to secure a bridge over the Niger River at Markala, north of Ségou.

Also on Saturday, Human Rights Watch said it had received what it called credible reports of abuses, including killings, being committed by Malian security forces around Niono against Tuareg and Arab civilians, who are associated with the rebellion in the north. The Islamists have also been condemned for abuses, including stoning of women.

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Nintendo’s Wii U problems turn into a crisis

In just a week, the problems Nintendo’s (NTDOY) new home console is facing have cascaded into something sinister. The traditional post-New Year slump hit Nintendo’s home market in the week ending January 12 and exposed cruelly how weak the consumer interest in Wii U truly is. According to Famitsu, Wii U sales slumped from a pace of 70,000 per week to just 21,000. The ancient PlayStation 3 sold the exact same number of units, which is nothing short of a debacle for Nintendo. The hot portable console 3DS saw its sales slow down from 305,000 units to 106,000 units.  This means that Nintendo’s portable machine is now outselling the brand new home console by a 5-to-1 margin in Japan.

[More from BGR: BlackBerry 10 browser smokes iOS 6 and Windows Phone 8 in comparison test [video]]

No matter how weak the Wii U sales are now, they are likely to get worse. The launch dates of key games seem to be slipping from March quarter to June quarter, including the important Pikmin, Wario and Wii Fit franchises. The Wii U now must depend on Rayman and Lego City in coming months.

[More from BGR: Paid apps are history]

This is a scary prospect, because it now seems that Sony (SNE) is planning to unveil the PlayStation 4 in May and Microsoft (MSFT) is expected to announce the Xbox 720 in June. Nintendo rushed its console out in late 2012 to get a running start before the big guns of the home console industry grab the consumer interest with their new machines. That gambit may now be about to backfire in a spectacular manner. As demand for Wii U is already fizzling in Japan and key games slip from the first quarter of 2013, Wii U faces a very hard January-March period. Sony and Microsoft are then inevitably going to start leaking information about their new consoles in April-May time frame in the run-up to their big unveilings in the second half of the spring quarter.

The clock is ticking for Wii U. If consumers start smelling the scent of the grave emanating from the console just when Sony and Microsoft roll out their new gear, Wii U could face a sudden rejection in the market place by early summer. Nintendo needs some big new titles to revive its home machine very soon.

This article was originally published on BGR.com

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'Diet Mom' Defends Her Daughter's Weight Loss in New Book

By Catherine Kast

01/19/2013 at 03:00 PM EST

After making headlines last year with her Vogue story about her then-7-year-old daughter Bea's battle with obesity – and the mother's strict orders about no pizza Fridays at school and no whip cream on hot chocolate – New York City "Diet Mom" Dara-Lynn Weiss has just released a new memoir on their journey, called The Heavy.

"There wasn't a voice from a mom who had lived through this and been an imperfect but very loving and dedicated parent around the issue of childhood obesity," Weiss tells PEOPLE.

"I wanted to be honest about the difficulties. I wanted people to know that this is a lot harder than conventional wisdom would have us believe the solution to childhood obesity is."

To help Bea lose 16 lbs. from her 93-lb., 4'4" frame, Weiss primarily focused on "reducing processed food, increasing fruits and vegetables, and getting a little more exercise," she says.

The Heavy, by Dara-Lynn Weiss

They also changed how they share their quality time together. "We bake less at home now. I think it was really fun to bake cupcakes together, and we have come to realize that's not a great idea."

Weiss, who admits to having her own body image issue as a child, wasn't Bea's only cheerleader during her weight-loss journey.

"My fear of saying the wrong thing, doing the wrong thing, and giving her issues like the ones I struggled with kept me silent for years as she was establishing unhealthy habits and becoming overweight," says Weiss. "Being cognizant of [my issues] was part of the reason why I brought in a nutritionist who specialized with pediatric obesity to give me a sense of how to approach this from a nutrition point of view and an emotional point of view."

Bea, now 9, has since maintained her healthy weight and her new healthy habits.

"I love the fact that she still has the same love for food. And I love the fact that even though she still wants two cupcakes, she knows she can only have one cupcake, and I don't even have to tell her anymore," says Weiss.

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Wall Street Week Ahead: Earnings, money flows to push stocks higher

NEW YORK (Reuters) - With earnings momentum on the rise, the S&P 500 seems to have few hurdles ahead as it continues to power higher, its all-time high a not-so-distant goal.

The U.S. equity benchmark closed the week at a fresh five-year high on strong housing and labor market data and a string of earnings that beat lowered expectations.

Sector indexes in transportation <.djt>, banks <.bkx> and housing <.hgx> this week hit historic or multiyear highs as well.

Michael Yoshikami, chief executive at Destination Wealth Management in Walnut Creek, California, said the key earnings to watch for next week will come from cyclical companies. United Technologies reports on Wednesday while Honeywell is due to report Friday.

"Those kind of numbers will tell you the trajectory the economy is taking," Yoshikami said.

Major technology companies also report next week, but the bar for the sector has been lowered even further.

Chipmakers like Advanced Micro Devices , which is due Tuesday, are expected to underperform as PC sales shrink. AMD shares fell more than 10 percent Friday after disappointing results from its larger competitor, Intel . Still, a chipmaker sector index <.sox> posted its highest weekly close since last April.

Following a recent underperformance, an upside surprise from Apple on Wednesday could trigger a return to the stock from many investors who had abandoned ship.

Other major companies reporting next week include Google , IBM , Johnson & Johnson and DuPont on Tuesday, Microsoft and 3M on Thursday and Procter & Gamble on Friday.

CASH POURING IN, HOUSING DATA COULD HELP

Perhaps the strongest support for equities will come from the flow of cash from fixed income funds to stocks.

The recent piling into stock funds -- $11.3 billion in the past two weeks, the most since 2000 -- indicates a riskier approach to investing from retail investors looking for yield.

"From a yield perspective, a lot of stocks still yield a great deal of money and so it is very easy to see why money is pouring into the stock market," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.

"You are just not going to see people put a lot of money to work in a 10-year Treasury that yields 1.8 percent."

Housing stocks <.hgx>, already at a 5-1/2 year high, could get a further bump next week as investors eye data expected to support the market's perception that housing is the sluggish U.S. economy's bright spot.

Home resales are expected to have risen 0.6 percent in December, data is expected to show on Tuesday. Pending home sales contracts, which lead actual sales by a month or two, hit a 2-1/2 year high in November.

The new home sales report on Friday is expected to show a 2.1 percent increase.

The federal debt ceiling negotiations, a nagging worry for investors, seemed to be stuck on the back burner after House Republicans signaled they might support a short-term extension.

Equity markets, which tumbled in 2011 after the last round of talks pushed the United States close to a default, seem not to care much this time around.

The CBOE volatility index <.vix>, a gauge of market anxiety, closed Friday at its lowest since April 2007.

"I think the market is getting somewhat desensitized from political drama given, this seems to be happening over and over," said Destination Wealth Management's Yoshikami.

"It's something to keep in mind, but I don't think it's what you want to base your investing decisions on."

(Reporting by Rodrigo Campos, additional reporting by Chuck Mikolajczak and Caroline Valetkevitch; Editing by Kenneth Barry)

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British Leader, David Cameron, Sees Wider Threat in Algeria Attack

Oli Scarff/Getty Images

Prime Minister David Cameron en route to Parliament to deliver a statement on the Algeria hostage crisis.

LONDON — With more than 60 hostages still missing and many feared dead, Prime Minister David Cameron told Parliament on Friday that the Qaeda-linked attack on a remote Algerian gas installation demonstrated the need for Britain and its western allies, including the United States, to direct more of their diplomatic, military and intelligence resources to the intensifying threat emanating from “the ungoverned space” of the North African desert, treating it with as much concern as the terrorist challenge in Pakistan and Afghanistan.

Mr. Cameron offered little new information about the showdown at the In Amenas plant, 1,000 miles from Algiers in the oil-and-gas-rich emptiness of the Sahara, saying the information reaching London about what he described as a “continuing situation” remained sketchy. He added that Britain had learned overnight that its fears for British citizens caught up in the hostage-taking and the subsequent shootout now focused on “significantly” fewer than the 30 people feared on Thursday. As part of the effort to learn more, he said, a special plane had been assigned to carry Britain’s ambassador in Algiers and other British diplomats to the area of the gas plant on Friday.

But in an hourlong session in the House of Commons, Mr. Cameron pointed to the somber implications of underestimating recent events in Mali and Algeria as a regional problem for North Africa rather than an increasingly fertile arena for Islamic militants and their hostility to the West. He said he had discussed his concerns in a telephone conversation with President Obama on Thursday night.

The British leader said the growth of Islamic terrorist networks in the countries of the Sahel, the broad area of North Africa that runs more than 3,000 miles from Mauritania in the west to Sudan and Somalia in the east, should be a renewed focus of western counterterrorist concerns and resources. At one point, he cited the need for military assistance to the affected countries to be part of NATO military planning, though he again emphatically ruled out any British combat role in support of France’s campaign against militants in Mali.

Pointing to the leading role played in the Algerian attack by Mokhtar Belmohtar, a terrorist ringleader and smuggler with links to North Africa’s main Islamic terrorist group, Al Qaeda in the Islamic Maghreb, Mr. Cameron warned that the Algerian attack was symptomatic of a far broader threat.

“What we know is that the terrorist threat in the Sahel comes from Al Qaeda in the Islamic Maghreb, which aspires to establish Islamic law across the Sahel and northern Africa, and to attack Western interests in the region and frankly, wherever it can,” Mr. Cameron said. “Just as we have reduced the scale of the Al Qaeda threat in other parts of the world, including in Pakistan and Afghanistan, so it has grown in other parts of the world. We need to be equally concerned about that, and equally focused on it.”

To some British commentators, Mr. Cameron’s remarks sounded as though they may have been crafted as part of a British effort to prompt a deeper involvement in North African security matters by the United States. In last year’s Libyan conflict, the United States stepped back from the lead role it has traditionally taken in NATO military operations and left Britain, France and Italy to conduct the bulk of the bombing in support of the Libyan rebels’ successful campaign to topple Col. Muammar el-Qaddafi.

Since then, high-ranking British officials have voiced concerns that the Obama administration was stepping back from European political and security issues and turning its attentions increasingly to the nations of the Pacific.

With the approach of Mr. Obama’s second inauguration on Sunday, The Spectator, a London-based weekly that is influential in Mr. Cameron’s Conservative Party, devoted its cover this week to an article headlined “The Pacific President,” and an illustration showing Mr. Obama in a brightly colored Hawaiian shirt and shorts surfing off a palm-lined beach. “As Barack Obama is sworn in again as president, his allies in the West will ask themselves the same nervous question they posed four years ago: how much does he care about us,” the accompanying article asked.

White House officials said on Thursday that Mr. Obama had used his telephone conversation with Mr. Cameron to underscore American concerns that Britain remain a robust force within the 27-nation European Union, a hot-button issue for Mr. Cameron. The prime minister had planned — then canceled, amid the Algerian crisis — a landmark speech in Amsterdam on Friday in which he was to have outlined his plan to negotiate a much sparer role for Britain in the European bloc.

In his remarks to lawmakers on Friday, Mr. Cameron offered what could have been construed as an oblique riposte to Mr. Obama, or at least to officials in the Obama administration who have urged that Europe take greater responsibility for confronting terrorist and other security threats in its own region.  He may also have been addressing domestic critics in Britain, or other NATO countries that have been less active than Britain in counterterrorism efforts aimed at confronting the spread of Islamic militant groups.

“There is a great need for not just Britain but other countries to give a priority to understanding better, and working better, with the countries in this region,” he said. “Those who believe that there is a terrorist, extremist Al Qaeda problem in parts of North Africa, but that it is a problem for those places and we can somehow back off and ignore it, are profoundly wrong. That is a problem for those places, and for us.”

Mr. Cameron noted that Britain had been “the first country in the world” to offer France military assistance in its campaign in Mali, deploying one of the largest military transport aircraft it has, an American-made C-17 Globemaster, to ferry French troops and military equipment to Bamako, the Malian capital. He said it was time for Britain and France to move beyond their spheres of influence in Africa dating back to the colonial era, “and recognize that is in our interest to boost the capacity of all African states” confronted by the terrorist threat.

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