The Lede Blog: Fire at a Nightclub in Southern Brazil

Victims of the fire are attended by medics.

An intense fire ripped through a nightclub crowded with university students in southern Brazil early on Sunday morning, leaving behind a scene of horror, with bodies piled in the club’s bathrooms and on the street.

At least 232 people were killed, many of them students in the agronomy and veterinary medicine programs at a local university, police officials said.

As Simon Romero reports, a flare from a band’s pyrotechnic show ignited the fire in the nightclub, called Kiss, in the southern city of Santa Maria. Rescue workers continued to haul bodies from the still-smoldering building on Sunday.

Amateur videos posted to YouTube showed scenes of chaos as medics scurried over the bodies of victims who appeared to be unconscious, checking for signs of life.

Medics rush to care for victims of the fire.

Officials and witnesses say that security guards at the club had locked some exits, sewing panic as people attempted to flee the flames and smoke.

“Only after a multitude pushed down the security guards did they see the crap they had done,” Murilo de Toledo Tiecher, 26, a medical student who survived the fire, said in comments posted on Facebook.

Shortly before the fire, a club D.J. posted a photo on Facebook from inside the crowded club apparently showing the pyrotechnic display on stage.

A short time later, another photo that was said to be taken outside the club and widely disseminated through social media showed smoke billowing from the front entrance.

BOATE KISS PEGANDO FOGO! http://t.co/tdV2DO4q

— Boatos SM ® #LUTO (@BoatoSM) 27 Jan 13

The fire quickly engulfed the building.

Firefighters and volunteers who used T-shirts to protect themselves from the smoke struggled to pull people from the burning building.

Firefighters and volunteers tried to pull people from the burning building

Photos from the scene showed frantic friends and family members gathered outside the club and a hospital.

As Mr. Romero reports, witnesses said the fire started about 2 a.m. after the band, Gurizada Fandangueira, took the stage. At least one member of the five-person band, which is based in Santa Maria and advertised its use of pyrotechnics, was said to have been killed in the fire.

Overcrowding and a disregard for fire safety codes have led to deadly blazes at nightclubs in the past, though Sunday’s tragedy in Brazil is among the worst.

In 2003 in Rhode Island, also fire set off by a pyrotechnic display at a club killed about 100 people. A fire that erupted under similar circumstances in Russia left almost as many dead in 2009.

And in Luoyang, China in 2000, 309 people were killed in a fire that broke out at a dance hall, forcing some to leap from high-rise windows.

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Adam Levine & Friends Have 'Laid Back' Lunch in N.Y.C.

Caught in the Act

01/27/2013 at 03:30 PM EST

Before Adam Levine proved he was hilarious when he hosted Saturday Night Live, he kept his friends in stitches in New York on Monday.

Levine was spotted at The Mercer Kitchen around 2 p.m., an onlooker tells PEOPLE.

"He looked really laid back and seemed to be in a great mood," the source adds. "He was laughing a lot and was really enthralled in the conversation the whole table was having."

Joined by a group of guys and one girl – who was wearing a very big hat – Levine, 33, kept things casual in a gray hoodie and jeans.

– Jennifer Cress

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CDC: Flu seems to level off except in the West

New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.

The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.

Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.

There is still vaccine available although it may be hard to find. The CDC has a website that can help.

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CDC: http://www.cdc.gov/flu/

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Fed waits for job market to perk up

LONDON (Reuters) - The Federal Reserve's ultra-loose monetary policy is a root cause of the "currency wars" that some see as a looming threat to the world economy, but don't expect the U.S. central bank to signal a shift back to normal any time soon.

The Fed, whose policy-setting Federal Open Market Committee concludes a two-day meeting on Wednesday, said just last month that it expects to keep short-term interest rates exceptionally low until the U.S. unemployment rate falls to 6.5 percent, inflation permitting.

That goal is still distant. Figures on Friday are likely to show that the jobless rate was unchanged in January at 7.8 percent, while the economy created 155,000 jobs, the same as in December, according to economists polled by Reuters.

So it would be a huge surprise if the Fed were to do anything other than reaffirm last month's decision to anchor short-term interest rates in a range of zero to 0.25 percent and to keep buying $85 billion of bonds each month to hold down long-term rates.

The only question mark is whether the FOMC vote will be unanimous now that Richmond Fed President Jeffrey Lacker, who opposes the current round of bond-buying, has rotated off the panel, said Harm Bandholz, an economist with UniCredit Bank in New York.

Most economists polled by Reuters expect the Fed to keep its open-ended bond-buying program in place well into next year, even though the economic news flow and market confidence are improving markedly.

True, Wednesday's preliminary report on fourth-quarter GDP is likely to show that growth slowed to an annualized rate of 1.2 percent from 3.1 percent in the July-September period.

And the current quarter will also be soft as the expiry of a 2 percent payroll tax cut is dampening consumer spending.

But then Bandholz expects an average growth rate of 2.8 percent over the rest of the year. That would be the strongest three-quarter period of the recovery so far, he said.

"The outlook has improved a lot in the U.S. I've been on the cautious side for the last three years, but this time I'm a bit more bullish," he said.

THE FED BIDES ITS TIME

The recovery in housing would add at least half a percentage point to GDP growth in 2013, while capital spending was likely to revive now that uncertainty over budget talks in Washington had been largely allayed, Bandholz said.

"There's a lot of pent-up demand in the system. I don't think all these investments have been abandoned; they've just been postponed," he said.

At some point, investors' exuberance over the super-easy stance of the world's major central banks will give way to worries that they are about to take away the punch bowl.

Gustavo Reis, an economist with Bank of America Merrill Lynch in New York, said concerns about the costs of money-printing were likely to spread but would be offset by uncertainty over the impact on growth of fiscal tightening in the United States and Europe.

"All told, although global activity seems more robust now than at any point in 2012, we expect policymakers to continue to worry predominantly about downside risks," he said in a note.

The bank does not expect the Fed to consider halting asset purchases before 2014, while the latest episode of monetary easing announced by the Bank of Japan is likely to be ‘long-lived and significant'.

Many economists argue that bold monetary action is long overdue in Japan, whose nominal output has not grown in 20 years, saddling the government with a debt-to-GDP ratio of more than 220 percent.

But Douglas McWilliams, who heads the Centre for Economics and Business Research, a London consultancy, fears Japan's decision will lead the global economy into unpredictable currency wars.

"It's a bit like if someone's rude to you, you're rude to them back. You get tit-for-tat behavior," McWilliams said.

CURRENCY FRICTION, BUT NO WAR

Olivier Blanchard, the chief economist of the International Monetary Fund, last week called talk of currency wars overblown and said countries had to pull the right policy levers to get their economies back on track, with corresponding consequences for exchange rates.

However, McWilliams said the problem was that it was difficult to get countries to agree NOT to wage currency wars.

Tellingly, Chancellor Angela Merkel voiced German concerns last week that Japan might be deliberately seeking to cheapen the yen to give its exporters a competitive edge.

"So we may well find that there is a period of very heavy volatility before the authorities involved try and get some kind of agreement," McWilliams said.

In a relatively quiet week for economic data in the euro zone - money supply figures and confidence surveys from the European Commission are the highlights - the focus is likely to remain squarely on the euro, which has been rising briskly as traders price in the policy shifts that Blanchard had in mind.

While the Fed and the Bank of Japan are expanding their balance sheets, the European Central Bank is starting to soak up some of the emergency cash it lent to banks a year ago.

The central bank said on Friday that banks would repay early 137 billion euros of cheap borrowed money.

"I'm not sure if we have too strong a euro for the moment but certainly we would not want to see a currency war of competitive devaluations which would have a negative effect on the euro," the European Union's top monetary official, Olli Rehn, told Reuters.

(Additional reporting by Paul Taylor in Davos; editing by Jason Neely)

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Factory Fire Kills 7 Workers in Bangladesh

A.M. Ahad/Associated Press

Firefighters and volunteers worked to extinguish the fire at a small garment factory in Bangladesh’s capital on Saturday.

DHAKA, Bangladesh — In the latest blow to Bangladesh’s garment industry, seven workers died on Saturday after a fire swept through a factory here not long after seamstresses had returned from a lunch break. Workers said supervisors had locked one of the factory exits, forcing some people to jump out of windows to save their lives.

The fatal fire comes roughly two months after the horrific blaze at the Tazreen Fashions factory, which left 112 workers dead and focused global attention on unsafe conditions in Bangladesh’s garment industry. Tazreen Fashions, located just outside Dhaka, the capital, had been making clothing for some of the world’s biggest brands and retailers, including Walmart.

In the aftermath of the Tazreen Fashions fire, Bangladeshi political and industrial leaders pledged to quickly improve fire safety and even conducted high-profile, nationwide inspections of many of the country’s 5,000 apparel factories. Global brands, meanwhile, promised consumers that they would not buy clothes from unsafe factories.

But Saturday’s fire in a densely populated section of Dhaka, is a grim reminder that the problems remain. The blaze erupted at about 2 p.m. at Smart Garment Export, a small factory that employed about 300 people, most of them young women who were making sweaters and jackets. All seven of the dead workers were women.

Masudur Rahman Akand, a supervisor in the Bangladesh Fire Department, said workers were returning from lunch when the blaze erupted in a storage area. The factory was located on the second-floor of a building, above a bakery, and it lacked proper exits and fire prevention equipment, Mr. Akand said.

“We did not find fire extinguishers,” he said. “We did not find any safety measures.”

With smoke filling the factory floor, workers apparently panicked. Mr. Akand said the seven workers who died either suffocated or were trampled by others trying to escape. Eight other workers were hospitalized with injuries. Workers told rescuers that many people could not quickly escape because one of the exits was blocked by a locked steel gate. Witnesses said people began jumping out of windows before the gate was finally unlocked.

Azizul Hoque, a police supervisor, said investigators initially suspected that the fire was caused by an electrical short circuit in a room where fabrics and materials were being stored. But Mr. Hoque said the investigation was continuing.

“We do not know the reason or the source or the origin of the fire,” he said.

It was unclear whether the Smart Garment factory was making clothing for international brands or retailers. Dhaka’s industrial areas are filled with factories, large and small, that produce clothing for much of the Western world. Bangladesh is now the world’s second-biggest exporter of apparel, trailing only China.

An American delegation with four members of Congress arrived in Dhaka on Saturday to meet with political leaders and garment industry executives for a discussion of trade issues, including efforts by Bangladesh to win tariff-free access to the American market for the country’s clothing exports.

Julfikar Ali Manik reported from Dhaka, and Jim Yardley from New Delhi.

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Hackers claim attack on Justice Department website

WASHINGTON (Reuters) – Hackers sympathetic to the late computer prodigy Aaron Swartz claimed on Saturday to have infiltrated the website of the U.S. Justice Department’s Sentencing Commission, and said they planned to release government data.

The Sentencing Commission site, www.ussc.gov , was shut down early Saturday.

Identifying themselves as Anonymous, a loosely organized group of unknown provenance associated with a range of recent online actions, the hackers voiced outrage over Swartz’ suicide on January 11.

In a video posted online, the hackers criticized the government’s prosecution of Swartz, who had been facing trial on charges that he used the Massachusetts Institute of Technology‘s computer networks to steal more than 4 million articles from JSTOR, an online archive and journal distribution service.

Swartz had faced a maximum sentence of 31 years in prison and fines of up to $ 1 million.

The FBI is investigating the attack, according to Richard McFeely, of the bureau’s Criminal, Cyber, Response, and Services Branch.

“We were aware as soon as it happened and are handling it as a criminal investigation,” McFeely said in an emailed statement. “We are always concerned when someone illegally accesses another person’s or government agency’s network.”

(Reporting by Deborah Zabarenko; Editing by Vicki Allen)

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Ashton Kutcher Parties in Sundance After jOBS Premiere

Caught in the Act

01/26/2013 at 01:50 PM EST

Ashton Kutcher's much-hyped movie jOBS premiered at the Sundance Film Festival on Friday, and the star was on hand – minus girlfriend Mila Kunis – for all the festivities.

Kutcher was one of the first to arrive at the official after party, hosted by Nur Khan Presents NK on Main Street for the cast and filmmakers and sponsored by Red Touch Media.

Kutcher was captivated by a floor-to-ceiling portrait of late Apple visionary Steve Jobs, whom Kutcher portrays in the film. Guests were quick to snap a photo of the actor admiring the subject of his role.

Without Kunis by his side, Kutcher very much remained a one-man guy, focusing his attention all night on his table of male friends and colleagues and posing for pictures with fans, according to an observer. The pride he takes in jOBS was palpable, as Kutcher was incredibly excited to chat about his film and role with all the guests who came up to greet him.

Co-star Ahna O'Reilly spent the evening in a very social mood, dancing to the beats of DJ Cash and catching up with co-star Josh Gad. Not to live down his "funny man" persona, Gad went into the evening entertaining all the guests and causing an uproar of laughter with Kutcher and O'Reilly while catching up about filming and their time at Sundance.


– Jennifer Garcia

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CDC: Flu seems to level off except in the West

New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.

The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.

Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.

There is still vaccine available although it may be hard to find. The CDC has a website that can help.

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CDC: http://www.cdc.gov/flu/

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Wall Street Week Ahead: Bears hibernate as stocks near record highs

NEW YORK (Reuters) - Stocks have been on a tear in January, moving major indexes within striking distance of all-time highs. The bearish case is a difficult one to make right now.

Earnings have exceeded expectations, the housing and labor markets have strengthened, lawmakers in Washington no longer seem to be the roadblock that they were for most of 2012, and money has returned to stock funds again.

The Standard & Poor's 500 Index <.spx> has gained 5.4 percent this year and closed above 1,500 - climbing to the spot where Wall Street strategists expected it to be by mid-year. The Dow Jones industrial average <.dji> is 2.2 percent away from all-time highs reached in October 2007. The Dow ended Friday's session at 13,895.98, its highest close since October 31, 2007.

The S&P has risen for four straight weeks and eight consecutive sessions, the longest streak of days since 2004. On Friday, the benchmark S&P 500 ended at 1,502.96 - its first close above 1,500 in more than five years.

"Once we break above a resistance level at 1,510, we dramatically increase the probability that we break the highs of 2007," said Walter Zimmermann, technical analyst at United-ICAP, in Jersey City, New Jersey. "That may be the start of a rise that could take equities near 1,800 within the next few years."

The most recent Reuters poll of Wall Street strategists estimated the benchmark index would rise to 1,550 by year-end, a target that is 3.1 percent away from current levels. That would put the S&P 500 a stone's throw from the index's all-time intraday high of 1,576.09 reached on October 11, 2007.

The new year has brought a sharp increase in flows into U.S. equity mutual funds, and that has helped stocks rack up four straight weeks of gains, with strength in big- and small-caps alike.

That's not to say there aren't concerns. Economic growth has been steady, but not as strong as many had hoped. The household unemployment rate remains high at 7.8 percent. And more than 75 percent of the stocks in the S&P 500 are above their 26-week highs, suggesting the buying has come too far, too fast.

MUTUAL FUND INVESTORS COME BACK

All 10 S&P 500 industry sectors are higher in 2013, in part because of new money flowing into equity funds. Investors in U.S.-based funds committed $3.66 billion to stock mutual funds in the latest week, the third straight week of big gains for the funds, data from Thomson Reuters' Lipper service showed on Thursday.

Energy shares <.5sp10> lead the way with a gain of 6.6 percent, followed by industrials <.5sp20>, up 6.3 percent. Telecom <.5sp50>, a defensive play that underperforms in periods of growth, is the weakest sector - up 0.1 percent for the year.

More than 350 stocks hit new highs on Friday alone on the New York Stock Exchange. The Dow Jones Transportation Average <.djt> recently climbed to an all-time high, with stocks in this sector and other economic bellwethers posting strong gains almost daily.

"If you peel back the onion a little bit, you start to look at companies like Precision Castparts , Honeywell , 3M Co and Illinois Tool Works - these are big, broad-based industrial companies in the U.S. and they are all hitting new highs, and doing very well. That is the real story," said Mike Binger, portfolio manager at Gradient Investments, in Shoreview, Minnesota.

The gains have run across asset sizes as well. The S&P small-cap index <.spcy> has jumped 6.7 percent and the S&P mid-cap index <.mid> has shot up 7.5 percent so far this year.

Exchange-traded funds have seen year-to-date inflows of $15.6 billion, with fairly even flows across the small-, mid- and large-cap categories, according to Nicholas Colas, chief market strategist at the ConvergEx Group, in New York.

"Investors aren't really differentiating among asset sizes. They just want broad equity exposure," Colas said.

The market has shown resilience to weak news. On Thursday, the S&P 500 held steady despite a 12 percent slide in shares of Apple after the iPhone and iPad maker's results. The tech giant is heavily weighted in both the S&P 500 and Nasdaq 100 <.ndx> and in the past, its drop has suffocated stocks' broader gains.

JOBS DATA MAY TEST THE RALLY

In the last few days, the ratio of stocks hitting new highs versus those hitting new lows on a daily basis has started to diminish - a potential sign that the rally is narrowing to fewer names - and could be running out of gas.

Investors have also cited sentiment surveys that indicate high levels of bullishness among newsletter writers, a contrarian indicator, and momentum indicators are starting to also suggest the rally has perhaps come too far.

The market's resilience could be tested next week with Friday's release of the January non-farm payrolls report. About 155,000 jobs are seen being added in the month and the unemployment rate is expected to hold steady at 7.8 percent.

"Staying over 1,500 sends up a flag of profit taking," said Jerry Harris, president of asset management at Sterne Agee, in Birmingham, Alabama. "Since recent jobless claims have made us optimistic on payrolls, if that doesn't come through, it will be a real risk to the rally."

A number of marquee names will report earnings next week, including bellwether companies such as Caterpillar Inc , Amazon.com Inc , Ford Motor Co and Pfizer Inc .

On a historic basis, valuations remain relatively low - the S&P 500's current price-to-earnings ratio sits at 15.66, which is just a tad above the historic level of 15.

Worries about the U.S. stock market's recent strength do not mean the market is in a bubble. Investors clearly don't feel that way at the moment.

"We're seeing more interest in equities overall, and a lot of flows from bonds into stocks," said Paul Zemsky, who helps oversee $445 billion as the New York-based head of asset allocation at ING Investment Management. "We've been increasing our exposure to risky assets."

For the week, the Dow climbed 1.8 percent, the S&P 500 rose 1.1 percent and the Nasdaq advanced 0.5 percent.

(Reporting by Ryan Vlastelica; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)

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From Front Lines, Women Offer Evidence on Ability in Combat

Stacy Pearsall

Staff Sgt. Stacy Pearsall, who was a photographer in Iraq, in a self-portrait over Baghdad during her first deployment in 2003.

During her second deployment to Iraq, Staff Sgt. Stacy Pearsall of the Air Force found herself attached to an Army ground unit that was clearing roadside bombs. They had just found their 26th device of the day when one of their armored personnel carriers exploded. An ambush was on.

The chaos that unfolded over the next few hours was not a typical day for Sergeant Pearsall. But under the Pentagon’s decision to allow women into front-line combat units, officially announced Thursday, it could become much closer to the norm for women in American uniforms.

As Sergeant Pearsall tells the story, her vehicle came under intense fire that day in 2007, near the city of Baquba. The male soldiers in her carrier had already dashed out to join the fight, so she jumped onto the machine gun and began returning fire.

Outside a soldier lay unconscious. Sergeant Pearsall opened the rear door and crawled to the man, who was 6-foot-2 and more than 200 pounds, twice her weight. From behind him, she clasped him in a bear hug and dragged him toward the vehicle. She fell once, then again. Somehow, she hauled him into the armored safety of the carrier.

After tearing off his protective vest, she realized his carotid artery had been torn by shrapnel. As blood spurted all over, she closed her eyes, stuck her fingers into his neck and squeezed. He screamed, and she thanked the heavens. He was still kicking.

What happened next seemed almost cinematic. Emerging from a purplish haze outside, a medic jumped into the carrier and set his kit beside her. “Are you a medic?” he asked.

Heck no, Sergeant Pearsall replied. “I’m the photographer.”

The question that now looms over the Pentagon as it moves toward full gender integration is whether female service members like Sergeant Pearsall, for all their bravery under fire, can perform the same dangerous and physically demanding tasks day in and day out, for weeks at a time, as permanent members of ground combat units like the infantry or armored cavalry.

Since 1994, women have technically been barred from serving in those front-line units. But throughout the post-9/11 wars in Iraq and Afghanistan, women — working as medics, intelligence officers, photographers, military police officers and in a host of other jobs — have been routinely “attached” to all-male ground combat units, where they have come under fire, returned fire, been wounded and been killed.

To supporters of Secretary of Defense Leon E. Panetta’s decision to rescind the prohibition on women in combat, the experiences of those women proved that the distinction between being “attached” to a combat unit and actually serving in one was outdated, and pointless.

“When the military goes to full integration, it allows commanders to put the best person in the job, not just the best man,” said Greg Jacob, a former Marine Corps officer who is now policy director for the Service Women’s Action Network, an advocacy group for women in the military. “If the best shot in the platoon is a woman, I can make her a sniper. But until now, I couldn’t do that.”

But to skeptics of the policy change, it is one thing for women to perform well when they come under fire while temporarily attached to all-male combat units. It is a far different thing, they argue, to carry out the daily mission of hunting down and engaging enemy forces as an infantry soldier or tank commander.

Representative Duncan Hunter, Republican of California and a Marine Corps veteran with combat tours in Iraq and Afghanistan, defines it as a difference between “incidental combat,” as women have faced in convoys or attacks on bases, and “the direct combat duties of our advanced and most elite ground operators.”

Representative Hunter said in a statement, “The question here is whether this change will actually make our military better at operating in combat, specifically finding and targeting the enemy.”

Ask Sergeant Pearsall, who was decorated for her actions in Baquba and received a medical retirement from the Air Force in 2008, and the answer is simple: Yes, women can do it, and I already have.

This article has been revised to reflect the following correction:

Correction: January 25, 2013

An earlier version of this article misstated the standards that female service members have to meet to pass their physical fitness tests. They must meet the same sit-up standard as men, they are not allowed to pass with fewer sit-ups. Women are also allowed to run a slower 2-mile run, not a 1.5-mile run.

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