Kuwaiti gets five years for insulting ruler

KUWAIT (Reuters) – A Kuwaiti court sentenced a man to five years in prison on Sunday for insulting the emir on Twitter, a rights lawyer and news websites said, in the latest prosecution for criticism of authorities via social media in the Gulf Arab state.

The court gave Kuwaiti Mohammad Eid al-Ajmi the maximum sentence for the comments, news websites al-Rai and alaan.cc reported.

In recent months Kuwait has penalized several Twitter users for criticizing the emir, who is described as “immune and inviolable” in the constitution.

“We call on the government to expand freedoms and adhere to the international (human rights) conventions it has signed,” said lawyer Mohammad al-Humaidi, director of the Kuwait Society for Human Rights, commenting on the case.

Courts in Kuwait generally do not comment to the media.

Amnesty International said in November Kuwait had increased restrictions on freedom of expression and assembly.

It urged Kuwait to ensure protection for users of social media, whether they supported or opposed the government, as long as they did not incite racial hatred or violence.

Kuwait, a U.S. ally and major oil producer, has been taking a firmer line on politically sensitive comments aired on the internet. Twitter is extremely popular in the country of 3.7 million.

In January, a court sentenced two men in separate cases to jail time for insulting the emir on Twitter.

In June 2012, a man was sentenced to 10 years in prison after he was convicted of endangering state security by insulting the Prophet Mohammad and the Sunni Muslim rulers of Saudi Arabia and Bahrain on social media.

Two months later, authorities detained Sheikh Meshaal al-Malik Al-Sabah, a member of the ruling family, over remarks on Twitter in which he accused authorities of corruption and called for political reform.

The recent Twitter cases have been carried out under the state security law and penal code. Last year Kuwait passed new legislation aimed at regulating social media.

Public demonstrations and debates about local issues are common in a state that allows the most dissent in the Gulf, but Kuwait has avoided the kind of mass unrest that unseated four heads of Arab states in 2011.

But tensions intensified between authorities and opposition groups last year ahead of a parliamentary election deemed unfair by opposition politicians and activists.

The opposition movement said new voting rules introduced by Sheikh Sabah by emergency decree in October would skew the December 1 election in favor of pro-government candidates. The emir said the old voting system was flawed and that his changes were constitutional and necessary for Kuwait’s “security and stability”.

(Reporting by Ahmed Hagagy, Writing by Sylvia Westall; editing by Sami Aboudi and Andrew Roche)

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Ben Affleck Wins Directors Guild Award, But Doesn't Consider Himself a 'Real Director'

By Oliver Jones and Alison Schwartz

02/03/2013 at 03:00 PM EST

Ben Affleck at the Directors Guild Awards

Tammie Arroyo/AFF

Oscar, who?

Ben Affleck took home the top prize Saturday night at the 65th Annual Directors Guild Awards in Los Angeles, where he once again reigned supreme following a snub from the Academy Awards.

It was a celebratory evening for Affleck – and it was also date night with his doting wife, Jennifer Garner, by his side (and often with her hand on his back).

"I have to just thank my wife for being the best person in the world. I love you," Affleck, 40, told the audience as he accepted the award for outstanding directorial achievement for Argo. "I don't need to look at the teleprompter to know why I want to thank you. I want to thank you because I love you."

He added: "I want our daughters to break boundaries."

He also tipped his hat to fellow nominee Steven Spielberg, telling the Lincoln director, "Steven, there is nothing to even say about a guy whose got 11 of these ... This is the guy whose face is in Wikipedia when you type in director."

That wasn't Spielberg's only shout-out of the night. As Girls mastermind Lena Dunham, also a first-time winner, accepted honors for television comedy directing, she playfully warned, "Steven Spielberg, I am coming for you. Ben Affleck, I already came for you."

Not that Affleck considers himself a tried-and-true director.

"I worked really, really hard to try to become the best director that I could be," he said. "I don't think that this makes me a real director, but I think it means I'm on my way."

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New rules aim to get rid of junk foods in schools

WASHINGTON (AP) — Most candy, high-calorie drinks and greasy meals could soon be on a food blacklist in the nation's schools.

For the first time, the government is proposing broad new standards to make sure all foods sold in schools are more healthful.

Under the new rules the Agriculture Department proposed Friday, foods like fatty chips, snack cakes, nachos and mozzarella sticks would be taken out of lunch lines and vending machines. In their place would be foods like baked chips, trail mix, diet sodas, lower-calorie sports drinks and low-fat hamburgers.

The rules, required under a child nutrition law passed by Congress in 2010, are part of the government's effort to combat childhood obesity. While many schools already have improved their lunch menus and vending machine choices, others still are selling high-fat, high-calorie foods.

Under the proposal, the Agriculture Department would set fat, calorie, sugar and sodium limits on almost all foods sold in schools. Current standards already regulate the nutritional content of school breakfasts and lunches that are subsidized by the federal government, but most lunchrooms also have "a la carte" lines that sell other foods. Food sold through vending machines and in other ways outside the lunchroom has never before been federally regulated.

"Parents and teachers work hard to instill healthy eating habits in our kids, and these efforts should be supported when kids walk through the schoolhouse door," Agriculture Secretary Tom Vilsack said.

Most snacks sold in school would have to have less than 200 calories. Elementary and middle schools could sell only water, low-fat milk or 100 percent fruit or vegetable juice. High schools could sell some sports drinks, diet sodas and iced teas, but the calories would be limited. Drinks would be limited to 12-ounce portions in middle schools and to 8-ounce portions in elementary schools.

The standards will cover vending machines, the "a la carte" lunch lines, snack bars and any other foods regularly sold around school. They would not apply to in-school fundraisers or bake sales, though states have the power to regulate them. The new guidelines also would not apply to after-school concessions at school games or theater events, goodies brought from home for classroom celebrations, or anything students bring for their own personal consumption.

The new rules are the latest in a long list of changes designed to make foods served in schools more healthful and accessible. Nutritional guidelines for the subsidized lunches were revised last year and put in place last fall. The 2010 child nutrition law also provided more money for schools to serve free and reduced-cost lunches and required more meals to be served to hungry kids.

Sen. Tom Harkin, D-Iowa, has been working for two decades to take junk foods out of schools. He calls the availability of unhealthful foods around campus a "loophole" that undermines the taxpayer money that helps pay for the healthier subsidized lunches.

"USDA's proposed nutrition standards are a critical step in closing that loophole and in ensuring that our schools are places that nurture not just the minds of American children but their bodies as well," Harkin said.

Last year's rules faced criticism from some conservatives, including some Republicans in Congress, who said the government shouldn't be telling kids what to eat. Mindful of that backlash, the Agriculture Department exempted in-school fundraisers from federal regulation and proposed different options for some parts of the rule, including the calorie limits for drinks in high schools, which would be limited to either 60 calories or 75 calories in a 12-ounce portion.

The department also has shown a willingness to work with schools to resolve complaints that some new requirements are hard to meet. Last year, for example, the government relaxed some limits on meats and grains in subsidized lunches after school nutritionists said they weren't working.

Schools, the food industry, interest groups and other critics or supporters of the new proposal will have 60 days to comment and suggest changes. A final rule could be in place as soon as the 2014 school year.

Margo Wootan, a nutrition lobbyist for the Center for Science in the Public Interest, said surveys by her organization show that most parents want changes in the lunchroom.

"Parents aren't going to have to worry that kids are using their lunch money to buy candy bars and a Gatorade instead of a healthy school lunch," she said.

The food industry has been onboard with many of the changes, and several companies worked with Congress on the child nutrition law two years ago. Major beverage companies have already agreed to take the most caloric sodas out of schools. But those same companies, including Coca-Cola and PepsiCo, also sell many of the non-soda options, like sports drinks, and have lobbied to keep them in vending machines.

A spokeswoman for the American Beverage Association, which represents the soda companies, says they already have greatly reduced the number of calories that kids are consuming at school by pulling out the high-calorie sodas.

___

Follow Mary Clare Jalonick on Twitter at http://twitter.com/mcjalonick

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"Great Rotation"- A Wall Street fairy tale?

NEW YORK (Reuters) - Wall Street's current jubilant narrative is that a rush into stocks by small investors has sparked a "great rotation" out of bonds and into equities that will power the bull market to new heights.

That sounds good, but there's a snag: The evidence for this is a few weeks of bullish fund flows that are hardly unusual for January.

Late-stage bull markets are typically marked by an influx of small investors coming late to the party - such as when your waiter starts giving you stock tips. For that to happen you need a good story. The "great rotation," with its monumental tone, is the perfect narrative to make you feel like you're missing out.

Even if something approaching a "great rotation" has begun, it is not necessarily bullish for markets. Those who think they are coming early to the party may actually be arriving late.

Investors pumped $20.7 billion into stocks in the first four weeks of the year, the strongest four-week run since April 2000, according to Lipper. But that pales in comparison with the $410 billion yanked from those funds since the start of 2008.

"I'm not sure you want to take a couple of weeks and extrapolate it into whatever trend you want," said Tobias Levkovich, chief U.S. equity strategist at Citigroup. "We have had instances where equity flows have picked up in the last two, three, four years when markets have picked up. They've generally not been signals of a continuation of that trend."

The S&P 500 rose 5 percent in January, its best month since October 2011 and its best January since 1997, driving speculation that retail investors were flooding back into the stock market.

Heading into another busy week of earnings, the equity market is knocking on the door of all-time highs due to positive sentiment in stocks, and that can't be ignored entirely. The Standard & Poor's 500 Index <.spx> ended the week about 4 percent from an all-time high touched in October 2007.

Next week will bring results from insurers Allstate and The Hartford , as well as from Walt Disney , Coca-Cola Enterprises and Visa .

But a comparison of flows in January, a seasonal strong month for the stock market, shows that this January, while strong, is not that unusual. In January 2011 investors moved $23.9 billion into stock funds and $28.6 billion in 2006, but neither foreshadowed massive inflows the rest of that year. Furthermore, in 2006 the market gained more than 13 percent while in 2011 it was flat.

Strong inflows in January can happen for a number of reasons. There were a lot of special dividends issued in December that need reinvesting, and some of the funds raised in December tax-selling also find their way back into the market.

During the height of the tech bubble in 2000, when retail investors were really embracing stocks, a staggering $42.7 billion flowed into equities in January of that year, double the amount that flowed in this January. That didn't end well, as stocks peaked in March of that year before dropping over the next two-plus years.

MOM AND POP STILL WARY

Arguing against a 'great rotation' is not necessarily a bearish argument against stocks. The stock market has done well since the crisis. Despite the huge outflows, the S&P 500 has risen more than 120 percent since March 2009 on a slowly improving economy and corporate earnings.

This earnings season, a majority of S&P 500 companies are beating earnings forecast. That's also the case for revenue, which is a departure from the previous two reporting periods where less than 50 percent of companies beat revenue expectations, according to Thomson Reuters data.

Meanwhile, those on the front lines say mom and pop investors are still wary of equities after the financial crisis.

"A lot of people I talk to are very reluctant to make an emotional commitment to the stock market and regardless of income activity in January, I think that's still the case," said David Joy, chief market strategist at Columbia Management Advisors in Boston, where he helps oversee $571 billion.

Joy, speaking from a conference in Phoenix, says most of the people asking him about the "great rotation" are fund management industry insiders who are interested in the extra business a flood of stock investors would bring.

He also pointed out that flows into bond funds were positive in the month of January, hardly an indication of a rotation.

Citi's Levkovich also argues that bond investors are unlikely to give up a 30-year rally in bonds so quickly. He said stocks only began to see consistent outflows 26 months after the tech bubble burst in March 2000. By that reading it could be another year before a serious rotation begins.

On top of that, substantial flows continue to make their way into bonds, even if it isn't low-yielding government debt. January 2013 was the second best January on record for the issuance of U.S. high-grade debt, with $111.725 billion issued during the month, according to International Finance Review.

Bill Gross, who runs the $285 billion Pimco Total Return Fund, the world's largest bond fund, commented on Twitter on Thursday that "January flows at Pimco show few signs of bond/stock rotation," adding that cash and money markets may be the source of inflows into stocks.

Indeed, the evidence suggests some of the money that went into stock funds in January came from money markets after a period in December when investors, worried about the budget uncertainty in Washington, started parking money in late 2012.

Data from iMoneyNet shows investors placed $123 billion in money market funds in the last two months of the year. In two weeks in January investors withdrew $31.45 billion of that, the most since March 2012. But later in the month money actually started flowing back.

(Additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)

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Marxist Group Claims Attack on Embassy in Turkey

ISTANBUL — In a statement that called the United States “the murderer of the peoples of the world,” a Marxist group, with a history of political violence in Turkey, claimed responsibility for a suicide bombing at the American Embassy in Ankara.

The statement, which also denounced American foreign policy, was reportedly released by the Revolutionary People’s Liberation Party, and a translation was distributed by the Site Intelligence Group, which monitors the communications of extremist groups. The message, which was released on a Web site that has previously carried statements from the group, condemned Turkey’s policy of supporting Syria’s rebels against the government of Bashar al-Assad.

The statement included details that were similar to those released so far by the Turkish authorities, although the group’s message had a different first name for the bomber than the one given by Turkish officials and reported in the local news media.

The Turkish authorities said Saturday that the man who detonated himself at the American Embassy in Ankara on Friday, killing himself and one other, was a convicted terrorist who had twice attacked government facilities in Istanbul but was released from prison under an amnesty program.

Officials in Ankara said Saturday they were awaiting the results of a DNA test before releasing the bomber’s name, but officials in the Black Sea coastal town of Ordu identified him as Ecevit Sanli, 40, and said he was a registered citizen of their town. Authorities in Ordu said the bomber was identified by relatives through photographs.

The statement by the militant group included two photographs of the bomber (in one, he is holding an assault rifle, and a banner bearing the hammer-and-sickle communist symbol is behind him) that appeared to be the same person seen in photographs published by the news media. The group identified the bomber with the first name “Alisan.”

The attack, coming in the wake of the assault on an American diplomatic facility in Benghazi, Libya, by Islamic extremists, raised fears that it was the work of jihadists. That the bomber appears to have ties to a relatively minor Marxist group, which was responsible for political violence in the 1970s, is likely to challenge assumptions about the nature of international terrorism and the risks to American interests abroad. American officials, however, have not confirmed the identity of the attacker, nor a motive, and the United States plans to conduct an investigation.

The statement from officials in Ordu said on Saturday that Mr. Sanli spent four years in prison after being arrested in 1997 for attacking a military hostel and police station in Istanbul. He was then released in 2001 under an amnesty program for inmates with medical conditions, the statement said.

The authorities said Mr. Sanli lobbed a hand grenade during Friday’s attack just before detonating himself, suggesting there were actually two explosions.

As the investigation continues, the authorities are trying to determine whether Mr. Sanli had any collaborators. The Turkish newspaper Hurriyet reported that Mr. Sanli had fled to Germany after being released from prison, and had returned to Turkey only a few days before the attack.

The group has struck American and western targets in Turkey before, including during the gulf war in the early 1990s, and in its statement Saturday, the group condemned the recent deployment by NATO of Patriot missile batteries in southern Turkey.

In a report published several days before the bombing, Soner Cagaptay, director of the Turkish research program at the Washington Institute for Near East Policy, warned that Turkey’s support of Syrian rebels in their fight against the government of Mr. al-Assad, as well as the deployment by NATO of Patriot missile batteries, was rallying Turkey’s extreme left.

“The country’s political landscape still bears vestiges of violent leftist movements from the 1970s, as well as deeply anti-American ultranationalism,” he wrote. Mr. Cagaptay noted that some militant left-wing groups organized protests against the Patriot missile deployment in the southern port city of Iskenderun, where protesters have fired smoke grenades at NATO troops and burned American flags.

Sebnem Arsu contributed reporting.

This article has been revised to reflect the following correction:

Correction: February 2, 2013

An earlier version of this article misstated, based on information supplied by the authorities, the year when Ecevit Sanli was released from prison. It was 2001, not 2002.

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Twitter, Washington Post targeted by hackers

SAN FRANCISCO (AP) — Social media giant Twitter is among the latest U.S. companies to acknowledge that it is among a growing list of victims of Internet security attacks, saying that hackers may have gained access to information on 250,000 of its more than 200 million active users. And now, The Washington Post is joining the chorus, saying that it discovered that it was the target of a sophisticated cyberattack in 2011.

Twitter said a blog post on Friday it detected attempts to gain access to its user data earlier in the week. It shut down one attack moments after it was detected.

But Twitter discovered that the attackers may have stolen user names, email addresses and encrypted passwords belonging to 250,000 users they describe as ‘a very small percentage of our users.”

Nonetheless, the company reset the pilfered passwords and sent emails advising the affected users.

The online attack comes on the heels of recent hacks into the computer systems of U.S. media and technology companies, including The New York Times and The Wall Street Journal. Both American newspapers reported this week that their computer systems had been infiltrated by China-based hackers, likely to monitor media coverage the Chinese government deems important.

On Friday, The Washington Post disclosed in an article published on its website that it was the target of a sophisticated cyberattack, which was discovered in 2011. The company’s spokeswoman, Kris Coratti, didn’t offer any details including the duration of the attack or the origins. But according to sources that the paper quoted, who it said spoke on condition of anonymity, the intruders gained access as early as 2008 or 2009.

The cyberattack was first reported by an independent cybersecurity blog on Friday.

“Like other companies in the news recently, we face cybersecurity threats,” Coratti was quoted as saying. “We have a number of security measures in place to guard against cyberattacks on an ongoing basis.”

According to Coratti’s comments made to the newspaper, the company worked with security company Mandiant to “detect, investigate and remediate the situation promptly at the end of 2011.”

Coratti couldn’t be reached immediately for comment by The Associated Press.

China has been accused of mounting a widespread, aggressive cyber-spying campaign for several years, trying to steal classified information and corporate secrets and to intimidate critics. The Chinese foreign ministry could not be reached for comment Saturday, but the Chinese government has said those accusations are baseless and that China itself is a victim of cyber-attacks.

“Chinese law forbids hacking and any other actions that damage Internet security,” the Chinese Defense Ministry recently said. “The Chinese military has never supported any hacking activities.”

Twitter’s director of information security, Bob Lord, said in the blog that the attack “was not the work of amateurs, and we do not believe it was an isolated incident.”

“The attackers were extremely sophisticated, and we believe other companies and organizations have also been recently similarly attacked,” Lord said. “For that reason we felt that it was important to publicize this attack while we still gather information, and we are helping government and federal law enforcement in their effort to find and prosecute these attackers to make the Internet safer for all users.”

One expert said that the Twitter hack probably happened after an employee’s home or work computer was compromised through vulnerabilities in Java, a commonly used computing language whose weaknesses have been well publicized.

Ashkan Soltani, an independent privacy and security researcher, said such a move would give attackers “a toehold” in Twitter’s internal network, potentially allowing them either to sniff out user information as it traveled across the company’s system or break into specific areas, such as the authentication servers that process users’ passwords.

The relatively small number of users affected suggested either that attackers weren’t on the network long or that they were only able to compromise a subset of the company’s servers, Soltani said.

Twitter is generally used to broadcast messages to the public, so the hacking might not immediately have yielded any important secrets. But the stolen credentials could be used to eavesdrop on private messages or track which Internet address a user is posting from.

That might be useful, for example, for an authoritarian regime trying to keep tabs on a journalist’s movements.

“More realistically, someone could use that as an entry point into another service,” Soltani said, noting that since few people bother using different passwords for different services, a password stolen from Twitter might be just as handy for reading a journalist’s emails.

___

AP reporters Anne D’Innocenzio in New York, Raphael Satter in London and Didi Tang in Beijing contributed to this report.

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Rihanna & Chris Brown Make Readers Mad, Ashley Judd Split Makes Them Sad

By Andrea Billups

02/02/2013 at 03:00 PM EST

Rihanna (left) and Ashley Judd

Michael Kovac/Getty; Jon Kopaloff/FilmMagic

What's on the minds of PEOPLE readers this week? We love getting your feedback, and as always, you weighed in with plenty of strong reactions.

From your anger over Rihanna's confession that she and Chris Brown are once again in a relationship, to your love as a Houston waiter refused to serve a customer who'd insulted a boy with Down syndrome, you told us what got you talking – and also laughing out loud.

Check out the articles with the top reactions on the site this week, and keep clicking on the emoticons at the bottom of every story to tell us what you think!

After posting plenty of photos of them together, Rihanna finally came clean, much to readers' chagrin, that she and Chris Brown are back on as a couple. The pop star, 24, and Brown, 23, have had a rocky past after he was charged with assaulting her in 2009. She told Rolling Stone magazine, in a cover story, that the reconciled relationship was important to her, despite any public scrutiny it would invite. "Even if it's a mistake, it's my mistake," she says. "After being tormented for so many years, being angry and dark, I'd rather just live my truth and take the backlash. I can handle it."

Readers felt the love for Houston waiter Michael Garcia of Laurenzo's Prime Rib who put his job on the line when he came to the defense of a 5-year-old boy with Down syndrome, the son of Garcia's regular customers. When Milo Castillo, who has delayed speech issues, began to chat loudly about his recent birthday, a male customer nearby announced: "Special needs children need to be special somewhere else." An angry Garcia was angered refused to serve the man, and the story later lit up the restaurant's Facebook page with support.

They're famous and beautiful and now, New England Patriots quarterback Tom Brady and his supermodel wife Gisele Bündchen own a $20 million, 22,000-square-foot castle-style Los Angeles home, replete with a moat. Wow, indeed. Brady, 35, and Bündchen, 32, will have plenty of room for their growing family, which includes son Benjamin, 3, and daughter Vivian, born Dec. 5, along with Brady's son, John, 5, from a previous relationship.

Fans were saddened by the split this week of longtime couple Ashley Judd, 44, and her husband of more than a decade, auto racing star Dario Franchitti, 39. Their exclusive statement to PEOPLE came as a surprise: "We have mutually decided to end our marriage. We'll always be family and continue to cherish our relationship based on the special love, integrity, and respect we have always enjoyed."

Outspoken Miley Cyrus, 20, drew laughs from readers when she referred to herself in a recent interview as already married. The singer, who's been engaged to actor Liam Hemsworth, 23, since May of last year, had also hinted at marriage in the past, posting photos on Twitter (since removed) of the couple wearing rings on their left hands. But she seems to just be jumping the gun. Hemsworth's rep confirmed to PEOPLE that the couple had not yet wed. "Definitely NOT married," said the rep.

Check back next week for another must-read roundup, and see what readers are reacting to here.

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New rules aim to get rid of junk foods in schools

WASHINGTON (AP) — Most candy, high-calorie drinks and greasy meals could soon be on a food blacklist in the nation's schools.

For the first time, the government is proposing broad new standards to make sure all foods sold in schools are more healthful.

Under the new rules the Agriculture Department proposed Friday, foods like fatty chips, snack cakes, nachos and mozzarella sticks would be taken out of lunch lines and vending machines. In their place would be foods like baked chips, trail mix, diet sodas, lower-calorie sports drinks and low-fat hamburgers.

The rules, required under a child nutrition law passed by Congress in 2010, are part of the government's effort to combat childhood obesity. While many schools already have improved their lunch menus and vending machine choices, others still are selling high-fat, high-calorie foods.

Under the proposal, the Agriculture Department would set fat, calorie, sugar and sodium limits on almost all foods sold in schools. Current standards already regulate the nutritional content of school breakfasts and lunches that are subsidized by the federal government, but most lunchrooms also have "a la carte" lines that sell other foods. Food sold through vending machines and in other ways outside the lunchroom has never before been federally regulated.

"Parents and teachers work hard to instill healthy eating habits in our kids, and these efforts should be supported when kids walk through the schoolhouse door," Agriculture Secretary Tom Vilsack said.

Most snacks sold in school would have to have less than 200 calories. Elementary and middle schools could sell only water, low-fat milk or 100 percent fruit or vegetable juice. High schools could sell some sports drinks, diet sodas and iced teas, but the calories would be limited. Drinks would be limited to 12-ounce portions in middle schools and to 8-ounce portions in elementary schools.

The standards will cover vending machines, the "a la carte" lunch lines, snack bars and any other foods regularly sold around school. They would not apply to in-school fundraisers or bake sales, though states have the power to regulate them. The new guidelines also would not apply to after-school concessions at school games or theater events, goodies brought from home for classroom celebrations, or anything students bring for their own personal consumption.

The new rules are the latest in a long list of changes designed to make foods served in schools more healthful and accessible. Nutritional guidelines for the subsidized lunches were revised last year and put in place last fall. The 2010 child nutrition law also provided more money for schools to serve free and reduced-cost lunches and required more meals to be served to hungry kids.

Sen. Tom Harkin, D-Iowa, has been working for two decades to take junk foods out of schools. He calls the availability of unhealthful foods around campus a "loophole" that undermines the taxpayer money that helps pay for the healthier subsidized lunches.

"USDA's proposed nutrition standards are a critical step in closing that loophole and in ensuring that our schools are places that nurture not just the minds of American children but their bodies as well," Harkin said.

Last year's rules faced criticism from some conservatives, including some Republicans in Congress, who said the government shouldn't be telling kids what to eat. Mindful of that backlash, the Agriculture Department exempted in-school fundraisers from federal regulation and proposed different options for some parts of the rule, including the calorie limits for drinks in high schools, which would be limited to either 60 calories or 75 calories in a 12-ounce portion.

The department also has shown a willingness to work with schools to resolve complaints that some new requirements are hard to meet. Last year, for example, the government relaxed some limits on meats and grains in subsidized lunches after school nutritionists said they weren't working.

Schools, the food industry, interest groups and other critics or supporters of the new proposal will have 60 days to comment and suggest changes. A final rule could be in place as soon as the 2014 school year.

Margo Wootan, a nutrition lobbyist for the Center for Science in the Public Interest, said surveys by her organization show that most parents want changes in the lunchroom.

"Parents aren't going to have to worry that kids are using their lunch money to buy candy bars and a Gatorade instead of a healthy school lunch," she said.

The food industry has been onboard with many of the changes, and several companies worked with Congress on the child nutrition law two years ago. Major beverage companies have already agreed to take the most caloric sodas out of schools. But those same companies, including Coca-Cola and PepsiCo, also sell many of the non-soda options, like sports drinks, and have lobbied to keep them in vending machines.

A spokeswoman for the American Beverage Association, which represents the soda companies, says they already have greatly reduced the number of calories that kids are consuming at school by pulling out the high-calorie sodas.

___

Follow Mary Clare Jalonick on Twitter at http://twitter.com/mcjalonick

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"Great Rotation"- A Wall Street fairy tale?

NEW YORK (Reuters) - Wall Street's current jubilant narrative is that a rush into stocks by small investors has sparked a "great rotation" out of bonds and into equities that will power the bull market to new heights.

That sounds good, but there's a snag: The evidence for this is a few weeks of bullish fund flows that are hardly unusual for January.

Late-stage bull markets are typically marked by an influx of small investors coming late to the party - such as when your waiter starts giving you stock tips. For that to happen you need a good story. The "great rotation," with its monumental tone, is the perfect narrative to make you feel like you're missing out.

Even if something approaching a "great rotation" has begun, it is not necessarily bullish for markets. Those who think they are coming early to the party may actually be arriving late.

Investors pumped $20.7 billion into stocks in the first four weeks of the year, the strongest four-week run since April 2000, according to Lipper. But that pales in comparison with the $410 billion yanked from those funds since the start of 2008.

"I'm not sure you want to take a couple of weeks and extrapolate it into whatever trend you want," said Tobias Levkovich, chief U.S. equity strategist at Citigroup. "We have had instances where equity flows have picked up in the last two, three, four years when markets have picked up. They've generally not been signals of a continuation of that trend."

The S&P 500 rose 5 percent in January, its best month since October 2011 and its best January since 1997, driving speculation that retail investors were flooding back into the stock market.

Heading into another busy week of earnings, the equity market is knocking on the door of all-time highs due to positive sentiment in stocks, and that can't be ignored entirely. The Standard & Poor's 500 Index <.spx> ended the week about 4 percent from an all-time high touched in October 2007.

Next week will bring results from insurers Allstate and The Hartford , as well as from Walt Disney , Coca-Cola Enterprises and Visa .

But a comparison of flows in January, a seasonal strong month for the stock market, shows that this January, while strong, is not that unusual. In January 2011 investors moved $23.9 billion into stock funds and $28.6 billion in 2006, but neither foreshadowed massive inflows the rest of that year. Furthermore, in 2006 the market gained more than 13 percent while in 2011 it was flat.

Strong inflows in January can happen for a number of reasons. There were a lot of special dividends issued in December that need reinvesting, and some of the funds raised in December tax-selling also find their way back into the market.

During the height of the tech bubble in 2000, when retail investors were really embracing stocks, a staggering $42.7 billion flowed into equities in January of that year, double the amount that flowed in this January. That didn't end well, as stocks peaked in March of that year before dropping over the next two-plus years.

MOM AND POP STILL WARY

Arguing against a 'great rotation' is not necessarily a bearish argument against stocks. The stock market has done well since the crisis. Despite the huge outflows, the S&P 500 has risen more than 120 percent since March 2009 on a slowly improving economy and corporate earnings.

This earnings season, a majority of S&P 500 companies are beating earnings forecast. That's also the case for revenue, which is a departure from the previous two reporting periods where less than 50 percent of companies beat revenue expectations, according to Thomson Reuters data.

Meanwhile, those on the front lines say mom and pop investors are still wary of equities after the financial crisis.

"A lot of people I talk to are very reluctant to make an emotional commitment to the stock market and regardless of income activity in January, I think that's still the case," said David Joy, chief market strategist at Columbia Management Advisors in Boston, where he helps oversee $571 billion.

Joy, speaking from a conference in Phoenix, says most of the people asking him about the "great rotation" are fund management industry insiders who are interested in the extra business a flood of stock investors would bring.

He also pointed out that flows into bond funds were positive in the month of January, hardly an indication of a rotation.

Citi's Levkovich also argues that bond investors are unlikely to give up a 30-year rally in bonds so quickly. He said stocks only began to see consistent outflows 26 months after the tech bubble burst in March 2000. By that reading it could be another year before a serious rotation begins.

On top of that, substantial flows continue to make their way into bonds, even if it isn't low-yielding government debt. January 2013 was the second best January on record for the issuance of U.S. high-grade debt, with $111.725 billion issued during the month, according to International Finance Review.

Bill Gross, who runs the $285 billion Pimco Total Return Fund, the world's largest bond fund, commented on Twitter on Thursday that "January flows at Pimco show few signs of bond/stock rotation," adding that cash and money markets may be the source of inflows into stocks.

Indeed, the evidence suggests some of the money that went into stock funds in January came from money markets after a period in December when investors, worried about the budget uncertainty in Washington, started parking money in late 2012.

Data from iMoneyNet shows investors placed $123 billion in money market funds in the last two months of the year. In two weeks in January investors withdrew $31.45 billion of that, the most since March 2012. But later in the month money actually started flowing back.

(Additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)

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Deadly Firefight on Lebanon’s Border With Syria

BEIRUT, Lebanon — At least three Lebanese Army soldiers were killed on Friday in a shootout as they tried to arrest a resident of a village that has become a hub of refugees and where Syrian rebel fighters often cross the border. Their target was also fatally shot.

There were conflicting reports about the nature of the clash, in which security forces were ambushed as they pursued a wanted man, but the episode played into fears that the accelerating influx of Syrians could spread the conflict into Lebanon.

The village, Aarsel, lies in the eastern Bekaa Valley, a mountainous region bordering Syria, and is a stronghold of support for the rebellion against the Syrian president, Bashar al-Assad. Syrian refugees who prefer to avoid areas of the Bekaa closely controlled by Hezbollah, an ally of Mr. Assad, have also crammed into the town.

In a statement, the Lebanese Army said that a captain was among those killed and declared without elaborating, “There will be no compromises on attempts to hide armed militants.”

Some reports, citing unnamed security sources, said that the soldiers were attacked by Syrian rebels, while residents said that villagers chased down and attacked plainclothes security personnel who arrived to arrest a Lebanese suspect without coordinating with local leaders.

The suspect, a resident of Aarsel, was identified as Khaled Hummayed. Lebanon’s national news agency said that he was wanted for involvement in the kidnapping of Estonian tourists in the Bekaa in 2011.

Several Lebanese media outlets said that members of the Free Syrian Army, the loose-knit rebel coalition, attacked the soldiers, while Reuters reported that Mr. Hummayed was believed to be a member of a jihadist rebel group that has been active in Syria, Al Nusra Front, who traveled frequently in and out of the country.

The deputy mayor of Aarsel said that Mr. Hummayed was driving a pickup truck when security personnel in civilian cars confronted him, shot him, and left with his body. He said he did not know if Mr. Hummayed was involved with Syrian rebels, but added, “90 percent of Aarsel’s people support the revolution.”

A smuggler from Aarsel, who gave only a nickname, Abu Hussein, said he was on the way to Friday Prayer and witnessed the shootout. He said that Mr. Hummayed’s pickup truck was left behind, smeared with blood, as angry residents pursued the cars. He said that Mr. Hummayed had once draped the flag of the Syrian revolution around his body.

Supporters of the revolution are deeply suspicious of Lebanese security forces, which they see as aiding the Syrian government. Lebanon has officially adopted a policy of “disassociation” from the Syrian conflict.

But in practice, many Lebanese have taken sides, with many Sunni Muslims supporting the rebellion led by Syria’s Sunni majority, while Hezbollah, a Shiite Muslim movement that relies on Syria as an arms conduit, has supported the government dominated by Mr. Assad’s Alawite sect, an offshoot of Shiism.

The border area has been tense, with rebels hiding and resting on the Lebanese side, and Syrian troops sometimes shelling Lebanese territory, crossing the border to fight rebels or shooting civilian refugees as they flee.

New pressures are growing as the flow of refugees — there are already more than 200,000 in Lebanon, a country of 4 million — overtaxes Sunni areas that have hosted most of them and pushes refugees into new areas.

More than 2 million people are displaced inside Syria, and on Friday, the United Nations children’s agency said 420,000 people — half of them children — needed urgent help in the province of Homs.

A spokeswoman for Unicef, Marixie Mercado, told reporters in Geneva that 200 of Homs’s 1,500 schools were damaged, with 65 more housing refugees, news agencies reported.

The United Nations refugee agency said it had for the first time reached the town of Azaz, near the Turkish border, to deliver tents with Syrian government permission, and found 45,000 people living in makeshift tents.

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