Israel Sticks to Tough Approach in Conflict With Hamas





TEL AVIV — With rockets landing on the outskirts of Tel Aviv and Jerusalem on Friday and the Egyptian prime minister making a solidarity visit to Gaza, the accelerating conflict between Israel and Hamas — reminiscent in many ways of so many previous battles — has the makings of a new kind of Israeli-Palestinian face-off.




The combination of longer-range and far deadlier rockets in the hands of more radicalized Palestinians, the arrival in Gaza and Sinai from North Africa of other militants pressuring Hamas to fight more, and the growing tide of anti-Israel fury in a region where authoritarian rulers have been replaced by Islamists means that Israel is engaging in this conflict with a different set of challenges.


The Middle East of 2012 is not what it was in late 2008, the last time Israel mounted a military invasion to reduce the rocket threat from Gaza. Many analysts and diplomats outside Israel say the country today needs a different approach to Hamas and the Palestinians based more on acknowledging historic grievances and shifting alliances.


“As long as the crime of dispossession and refugeehood that was committed against the Palestinian people in 1947-48 is not redressed through a peaceful and just negotiation that satisfies the legitimate rights of both sides, we will continue to see enhancements in both the determination and the capabilities of Palestinian fighters — as has been the case since the 1930s, in fact,” Rami G. Khouri, a professor at the American University of Beirut, wrote in an online column. “Only stupid or ideologically maniacal Zionists fail to come to terms with this fact.”


But the government in Israel and the vast majority of its people have drawn a very different conclusion. Their dangerous neighborhood is growing still more dangerous, they agree. That means not concessions, but being tougher in pursuit of deterrence, and abandoning illusions that a Jewish state will ever be broadly accepted here.


“There is a theory, which I believe, that Hamas doesn’t want a peaceful solution and only wants to keep the conflict going forever until somehow in their dream they will have all of Israel,” Eitan Ben Eliyahu, a former leader of the Israeli Air Force, said in a telephone briefing. “There is a good chance we will go into Gaza on the ground again.”


What is striking in listening to the Israelis discuss their predicament is how similar the debate sounds to so many previous ones, despite the changed geopolitical circumstances. In most minds here, the changes do not demand a new strategy, simply a redoubled old one.


The operative metaphor is often described as “cutting the grass,” meaning a task that must be performed regularly and has no end. There is no solution to security challenges, officials here say, only delays and deterrence. That is why the idea of one day attacking Iranian nuclear facilities, even though such an attack would set the nuclear program back only two years, is widely discussed as a reasonable option. That is why frequent raids in the West Bank and surveillance flights over Lebanon never stop.


And that is why this week’s operation in Gaza is widely viewed as having been inevitable, another painful but necessary maintenance operation that, officials here say, will doubtless not be the last.


There are also those who believe that the regional upheavals are improving Israel’s ability to carry out deterrence. One retired general who remains close to the military and who spoke on the condition of anonymity said that with Syria torn apart by civil war, Hezbollah in Lebanon discredited because of its support for the Syrian government, and Egypt so weakened economically, Israel should not worry about anything but protecting its civilians.


“Should we let our civilians be bombed because the Arab world is in trouble?” he asked.


So much was happening elsewhere in the region — the Egyptian and Libyan revolutions, the Syrian civil war, dramatic changes in Yemen and elections in Tunisia — that a few rockets a day that sent tens of thousands of Israeli civilians into bomb shelters drew little attention. But in the Israeli view, the necessity of a Gaza operation has been growing steadily throughout the Arab Spring turmoil.


In 2009, after the Israeli invasion pushed Hamas back and killed about 1,400 people in Gaza, 200 rockets hit Israel. The same was true in 2010. But last year the number rose to 600, and before this week the number this year was 700, according to the Israeli military. The problem went beyond rockets to mines planted near the border aimed at Israeli military jeeps and the digging of explosive-filled tunnels.


“In 2008 we managed to minimize rocket fire from Gaza significantly,” said Lt. Col. Avital Leibovich, a military spokeswoman. “We started that year with 100 rockets a week and ended it with two a week. We were able to give people in our south two to three years. But the grass has grown, and other things have as well. Different jihadist ideologies have found their way into Gaza, including quite a few terrorist organizations. More weapons have come in, including the Fajr-5, which is Iranian made and can hit Tel Aviv. That puts nearly our entire population in range. So we reached a point where we cannot act with restraint any longer.”


Gazans see events in a very different light. The problem, they say, comes from Israel: Israeli drones fill the Gazan skies, Israeli gunboats strafe their waters, Palestinian militants are shot at from the air, and the Gaza border areas are declared off limits by Israel with the risk of death from Israeli gunfire.


But there is little dissent in Israel about the Gaza policy. This week leaders of the leftist opposition praised the assassination of Ahmed al-Jabari, the Hamas military commander, on Wednesday. He is viewed here as the equivalent of Osama bin Laden. The operation could go on for many days before there is any real dissent.


The question here, nonetheless, is whether the changed regional circumstances will make it harder to “cut the grass” in Gaza this time and get out. A former top official who was actively involved in the last Gaza war and who spoke on the condition of anonymity said it looked to him as if Hamas would not back down as easily this time.


“They will not stop until enough Israelis are killed or injured to create a sense of equality or balance,” he said. “If a rocket falls in the middle of Tel Aviv, that will be a major success. But this government will go back at them hard. I don’t see this ending in the next day or two.”


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Smartphones, tablets spark “post-pie” Thanksgiving sales
















(Reuters) – Retailers are targeting “post-pie” commerce, the jump in shopping created by the boom in smartphones and tablet computers which Thanksgiving diners grab as they collapse onto the couch after eating turkey and pumpkin pie.


While people relax with family and friends or watch football on TV, they are increasingly shopping online with these mobile gadgets, creating a surge in traffic and purchases that retailers are beginning to target for the first time this year.













“This is a new shoppable moment,” said Steve Yankovich, who heads the mobile business of eBay Inc, operator of the largest online marketplace.


Before the rise of smartphones and tablets, it was socially unacceptable to pull out a laptop after Thanksgiving dinner, or head to a home office to fire up a desktop computer, Yankovich explained.


“With a tablet or smartphone you don’t get that reaction,” he added.


EBay recently surveyed more than 1,000 shoppers in the United States about their holiday shopping plans. Almost two thirds said holiday sales should begin after Thanksgiving dinner and respondents said their meals would end, on average, at 5:23 p.m. EST.


Based on that feedback, eBay plans to launch 20 mobile-only deals through its eBay Mobile application at 5:23 p.m. EST this Thanksgiving. The company plans 20 more at 5:23 p.m. PST for West Coast shoppers.


Other retailers including Toys “R” Us, HSN Inc, Rue La La and ideeli are also targeting mobile shoppers this Thanksgiving in the evening.


“The iPad holiday sales season starts at the point of indigestion while you’re sitting on the couch after Thanksgiving dinner,” said Ben Fischman, chief executive of Rue La La, which specializes in online limited-time fashion sales events known as flash sales.


Post-pie commerce is the latest example of how mobile devices, in particular Apple Inc’s iPad and iPhone, are changing consumer behavior and forcing retailers to adapt quickly.


The holiday shopping season traditionally kicks off with Black Friday, the day after Thanksgiving when shoppers use a day off from work to head to stores.


The following Monday became a big online shopping day known as Cyber Monday because people returned to the office and shopped using their office computers.


Now Thanksgiving is emerging as a big new shopping day online. The value of e-commerce transactions on Turkey Day has surged 128 percent to $ 479 million over the past five years, outpacing the growth of Black Friday, Cyber Monday and other big holiday shopping days, according to comScore Inc.


That’s a far cry from the $ 1.25 billion spent online on Cyber Monday last year, but the growth has caught retailers’ attention.


“It’s still a smaller day, but it is growing much faster,” said Andrew Lipsman of comScore. “We’re seeing a lot more talk about Thanksgiving becoming a more important shopping day.”


Several big retailers, including Target Corp, are opening physical stores on Thanksgiving to make sure they don’t lose sales to online rivals.


“Consumers that would rather shop than watch 12 hours of football on Thanksgiving Day should be given the chance to shop,” Marshal Cohen of The NPD Group wrote in a blog on Thursday. “If online is open, why should brick-and-mortar close just to give away those precious shopping hours to the competition?”


Thanksgiving evening is where the action is online. By 3 p.m. EST last year online sales were up about 20 percent compared to the same period in 2010, according to IBM Software Group, a unit of International Business Machines Corp.


But by midnight PST on Thanksgiving 2011, online sales were up 39 percent versus the same period the previous year, IBM data show. Overall, November 2011 online sales rose 15.6 percent compared to the year-earlier period.


“Post-pie shopping this year will be fueled mostly by tablet shoppers, especially iPad users,” said Jay Henderson, global strategy director for IBM’s enterprise marketing management business.


In September and October, the iPad accounted for at least 7.5 percent of all traffic to retailers’ websites, beating out the iPhone with about 6 percent and Android devices at just over 4 percent, IBM data show.


“This is the first time the iPad has shown sustained leadership over all other mobile devices,” Henderson said.


Last Thanksgiving, retailers were surprised by the surge in tablet traffic in the evening. They also did not expect the devices would be used to complete so many purchases, instead expecting them to be browsing devices mostly, according to Steve Tack, chief technology officer for APM Solutions, a unit of Compuware Corp.


“Tablet users are not waiting for Black Friday or Cyber Monday to purchase, they are doing it on Thursday night on the couch in front of the game,” he said. “This is a significant new shopping event.”


This year, retailers are more prepared, he added.


Rue La La will launch an online boutique called “The Holiday Dash” at 8 p.m. EST on Thanksgiving, “specifically to go after the shopper who will be sitting at home after dinner on the couch,” CEO Fischman said.


More than half of Rue La La‘s sales over Thanksgiving, Black Friday and the following weekend will come from mobile devices. Half of those mobile purchases will be on an iPad, he said.


Fischman said the conversion rate on an iPad is close to double the conversion rate on a smart phone, meaning shoppers are more than twice as likely to purchase using the tablet device.


“The tablet offers the luxury of a larger screen with the convenience and portability of the phone,” Fischman said. “It’s the killer e-commerce device.”


Ideeli, a rival to Rue La La, plans a “Think Fast” online sales event at 6 p.m. EST on Thanksgiving to target tablet shoppers. Ideeli usually runs sales at noon every day.


Toys “R” Us, the largest toy retailer, launched a new tablet-optimized website on Tuesday and the company plans to make all its Black Friday deals available online at 8 p.m. EST on Thanksgiving.


HSN, which runs the Home Shopping Network and has traditionally focused on TV sales, on Tuesday unveiled an online holiday gift guide designed for tablet shoppers.


The company plans to send discounted deals to mobile shoppers on Thanksgiving.


“When people are done with the holiday meal and go back into the screen world, we will have great products on sale,” said Jill Braff, executive vice president of Digital Commerce at HSN.


(Reporting by Alistair Barr in San Francisco; additional reporting by Lisa Baertlein in Los Angeles; Editing by Phil Berlowitz)


Gadgets News Headlines – Yahoo! News



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Justin Bieber & Selena Gomez Reunite in L.A.















11/16/2012 at 04:00 PM EST







Selena Gomez and Justin Bieber in April 2012


Noel Vasquez/Getty


Oh, young love.

Less than a week after PEOPLE confirmed that Justin Bieber, 18, and Selena Gomez, 20, called it quits, the pair reunited in Los Angeles.

On Wednesday, Bieber met Gomez at LAX airport where a source says he picked her up and drove her home.

According to TMZ, which has photos of the pair separately entering the Four Seasons hotel the following morning, Bieber stayed the night at Gomez's house.

Meanwhile, a source close to Gomez tells PEOPLE "of course" Bieber is trying to win his ex back.

Of the initial split, the insider says Gomez "was heartbroken. It wasn't easy." But, the pal says the former Disney star – who was all smiles at the Glamour Women of the Year event in New York earlier this week – is "being a trouper."

With reporting by PERNILLA CEDENHEIM

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EU drug regulator OKs Novartis' meningitis B shot

LONDON (AP) — Europe's top drug regulator has recommended approval for the first vaccine against meningitis B, made by Novartis AG.

There are five types of bacterial meningitis. While vaccines exist to protect against the other four, none has previously been licensed for type B meningitis. In Europe, type B is the most common, causing 3,000 to 5,000 cases every year.

Meningitis mainly affects infants and children. It kills about 8 percent of patients and leaves others with lifelong consequences such as brain damage.

In a statement on Friday, Andrin Oswald of Novartis said he is "proud of the major advance" the company has made in developing its vaccine Bexsero. It is aimed at children over two months of age, and Novartis is hoping countries will include the shot among the routine ones for childhood diseases such as measles.

Novartis said the immunization has had side effects such as fever and redness at the injection site.

Recommendations from the European Medicines Agency are usually adopted by the European Commission. Novartis also is seeking to test the vaccine in the U.S.

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Wall Street little changed following "fiscal cliff" talks

NEW YORK (Reuters) - Stocks were little changed on Friday as initial optimism after congressional leaders vowed to find common ground on a deal on tax and spending changes faded in the late afternoon.


The three major indexes had turned higher following the comments, but gave up the gains to trade flat. Worries about what the ultimate outcome of the "fiscal cliff" discussions will be have caused investors to pull out of stocks over the last two weeks. The S&P 500 is down 1.7 percent for the week.


Democrats said they recognized the need to curb spending and Republicans said they had agreed to put "revenue on the table" following a meeting with President Barack Obama.


"Everyone is realizing the policy decisions are not going to happen any time soon, but they could also have a large impact," said Kate Warne, investment strategist at Edward Jones in St Louis.


"So we're seeing the market in a wait-and-see mode, hoping that we'll see a resolution, but not being certain at this point."


Investors worry the economy could contract again if no deal is reached in Washington to avoid the large, automatic budget cuts and tax hikes that begin to take effect in the new year.


The Dow Jones industrial average <.dji> dipped 18.97 points, or 0.15 percent, to 12,523.41. The Standard & Poor's 500 Index <.spx> was off 1.32 points, or 0.10 percent, to 1,352.01. The Nasdaq Composite Index <.ixic> edged up 0.43 points, or 0.02 percent, at 2,837.36.


Dell Inc helped limit the Nasdaq's gains after lower PC sales hurt the company's profit. Dell slumped 6.5 percent to $8.94.


More violence in the Middle East also kept investors wary after Palestinian militants nearly hit Jerusalem with a rocket for the first time in decades and fired at Tel Aviv for a second day.


Shares of Penn National Gaming Inc surged 29 percent to $48.55 after the owner of gaming and pari-mutuel properties said late Thursday it will split its business into two separate publicly traded companies - a gaming focused real estate investment trust and a gaming operator.


Sears Holdings Corp late Thursday reported a quarterly loss that was narrower than expected, but same-store sales fell on weak demand for electronics, sending shares down 19.1 percent to $47.27.


(Editing by Kenneth Barry)


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Belize prime minister says McAfee “bonkers,” should help in murder case
















BELIZE CITY (Reuters) – Belize‘s prime minister on Wednesday urged anti-virus software pioneer John McAfee to help the country’s police with a murder inquiry, calling McAfee “bonkers” for recent media statements.


“I don’t want to be unkind, but he seems to be extremely paranoid – I would go so far as to say bonkers,” Prime Minister Dean Barrow said in Belize City. “He ought to man up and respect our laws and go in and talk to the police.”













Belizean police want to question McAfee, 67, about the murder of his neighbor and fellow U.S. citizen, Gregory Viant Faull, 52, with whom McAfee had quarreled.


Police have been unable to track down McAfee since finding Faull dead on Sunday in his house on Ambergris Caye, an island off the coast. In an interview on Tuesday, McAfee said he had gone into hiding because he believed Belizean authorities were trying to frame him for Faull’s murder.


“You can say I’m paranoid about it, but they will kill me, there is no question. They’ve been trying to get me for months,” Wired magazine’s website quoted McAfee as saying. “I am not well liked by the prime minister.


According to the magazine, which has published details of several interviews with the entrepreneur, McAfee says he has been riding in boats, hunkering down on the floorboards of taxis, and sleeping in a bed that he said was infested with lice.


Since he went into hiding, McAfee has repeatedly told Wired he had nothing to do with Faull’s death. Explaining his actions, McAfee said he does not want to give himself up because he is afraid the authorities will torture or kill him.


But McAfee said they would track him down in the end. On Wednesday, the magazine said that McAfee claimed to have dyed his hair, eyebrows, beard, and mustache jet black.


“I’ll probably look like a murderer, unfortunately,” it quoted him as saying.


PUBLIC SPOTLIGHT


Barrow called McAfee’s statements “nonsense,” noting he had “never met the man” and that the media attention McAfee had attracted was offering him “the best possible safeguard.”


“It’s not as if the police have said he is a suspect and certainly there is no question at this point of charges pending,” Barrow said. “The fact that this is smeared across international headlines means the police would have to act extremely cautiously in the full glare of the public spotlight.”


McAfee, who invented the anti-virus software that bears his name, has homes and businesses in Belize, and is believed to have settled around 2010 in the tiny Central American nation bordered by Mexico and Guatemala.


There is already a case pending in Belize against McAfee for possession of illegal firearms, and police previously suspected him of running a lab to make the synthetic drug crystal meth.


On Wednesday, Belizean police said they had charged McAfee’s British bodyguard William Mulligan, 29, and Mulligan’s wife, Stefanie, 22, for having unlicensed weapons and ammunition.


Barrow rejected statements made by McAfee and an associate that the software pioneer was being targeted for refusing to donate to Belize’s ruling United Democratic Party (UDP) to help fund its successful re-election bid in March.


“I know of no individual in the UDP who has spoken to McAfee about contributions,” Barrow said.


McAfee was one of Silicon Valley’s first entrepreneurs to build an Internet fortune. The ex-Lockheed systems consultant started McAfee Associates in 1989. He now has no relationship with the company, which was sold to Intel Corp.


(Writing by Gabriel Stargardter; Editing by Dave Graham and Eric Walsh)


Internet News Headlines – Yahoo! News



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Ariel Winter: How Her Family Drama Exploded in Court















11/15/2012 at 04:00 PM EST



Is Ariel Winter's mother an out-of-control child abuser – or a pushy but protective stage mom doing the best she can with a temperamental teenager?

Those are among the issues facing a judge who'll decide as early as Nov. 20 who will raise the 14-year-old Modern Family star: her mother Chrisoula Workman or her 34-year-old sister Shannon Gray.

The long-brewing family drama exploded at an Oct. 3 emergency guardianship hearing, where mother and daughter traded incendiary allegations, according to a newly released court transcript that contains previously unreported claims.

Among them, an attorney for Gray alleged that Ariel had come close to being fired from the ABC comedy several times "because of the mother's harassment and interference."

Troubles on the Set?

"She has been a terror on the set," lawyer Michael Kretzmer told Los Angeles Superior Court judge Michael Levanas. "The producers and others there have expressed grave concern."

He said he had "detailed horror stories" from cast members.

"They're having to sneak this child food because the mother deprives the child of food," Kretzmer claimed, according to the transcript, adding that the allegations were immediately reported to the county's Department of Children and Family Services.

He then held up his iPhone to the judge, showing a photo of Winter.

"The child looks 10 years older than her sister and is dressed up to show off her breasts and otherwise," Kretzmer said. "And the mother does not let the child out of the home without being dressed in a particular way, which is highly inappropriate for a child of this age."

He added, "The child is, apparently, slapped, hit, pushed – not so as to leave marks. Mother is smart enough not to do that," according to the transcript.

Ariel Winter: How Her Family Drama Exploded in Court| Trials & Lawsuits, Modern Family

Ariel Winter and mom Chris Workman

Splash News Online

The Mother Responds

When she joined the hearing later that day, Workman told the judge she's a great mom and that Ariel manufactured the abuse allegations after Workman snuffed Ariel's relationship with an older teenager, Cameron Palatas, an actor on the Disney Channel show A.N.T. Farm.

"I caught my daughter with her boyfriend in bed. She's 14 – he's 18. And I threw him out, and I broke them up," she said. "And ever since I did that, I've paid. And, you know, I had to do it."

Workman added that during the five months that Ariel and Palatas had been dating, there'd been "other things which I told them they can't do."

According to several sources, after the hearing, Workman filed a police complaint with the Los Angeles County Sheriff's Department alleging that Palatas made inappropriate sexual contact with Ariel.

Palatas could not be reached for comment. But his mother tells PEOPLE the allegation is unfounded and that the case was closed. An attorney for Workman, however, says the case is still active. The Sheriff's Department declined to comment because the case involves a minor.

Workman also testified that it was easy for her daughter to make the abuse claims because "she can cry at the drop of a hat … you can watch her movies and see it."

She insisted that the court side with her, interjecting "I'm an amazing mother" and "I'm the one who gave birth." She referred to Kretzmer as a "moron," then apologized, according to the transcript.

No Comment from Modern Family

Workman could not be reached Wednesday to respond specifically to allegations of her misbehaving on the Modern Family set. Earlier she gave a blanket denial to PEOPLE of the allegations that she abused or sexualized her daughter.

Cast and producers of Modern Family, as well as ABC reps, have all declined to comment, although show creator Steve Levitan has frequently commended all the child actors for their professionalism and talent, saying they've been integral to the success of the show.

An assistant on Ariel's 2011 movie The Chaperone described mother and daughter as having similar personalities, which could often be prickly. "They were both difficult, but it was definitely more her mother," the assistant tells PEOPLE.

At the emergency hearing, Gray alleged that the abuse didn't start with Ariel. She testified that her mother physically abused her when she was Ariel's age, which led to her living with other family members for three years.

Gray held out hope that her mother could "get help" and return to being a mom. "I would love for my mother and my sister to be able to work out their differences," she told the judge. "This can be better."

The judge took the allegations against Workman seriously enough to give Gray temporary guardianship of Ariel and issue a temporary restraining order against Workman. At the next hearing, he could extend the guardianship or reunite mother and daughter.

With reporting by PATRICK GOMEZ

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GOP-led states start warming up to health care law

WASHINGTON (AP) — From the South to the heartland, cracks are appearing in the once-solid wall of Republican resistance to President Barack Obama's health care law.

Ahead of a federal deadline Friday for states to declare their intentions, Associated Press reporters interviewed governors and state officials around the country, finding surprising openness to the changes in some cases. Opposition persists in others, and there is a widespread, urgent desire for answers on key unresolved details.

The law that Republicans have derided as "Obamacare" was devised in Washington, but it's in the states that Americans will find out if it works, delivering promised coverage to more than 30 million uninsured people.

States have a major role to play in two of the overhaul's main components: new online insurance markets for individuals and small businesses to shop for subsidized private coverage, and an expanded Medicaid program for low-income people.

Friday is the day states must declare if they'll build the new insurance markets, called exchanges, or let Washington do it for them. States can also opt for a partnership with the feds to run their exchanges, and they have until February to decide on that option.

Some glimpses of grudging acceptance across a shifting scene:

— One of the most visible opponents of Obama's overhaul, Florida Republican Gov. Rick Scott, now says "if I can get to 'yes,' I want to get to 'yes.'"

Florida was a leader in the failed effort to overturn the law in the Supreme Court, and a group formed by Scott ran TV ads opposing it before it passed Congress. But the governor told the AP this week he wants to negotiate with the federal government to try to help the nearly 4 million uninsured people in his state.

— In Iowa, GOP Gov. Terry Branstad says he is postponing a decision because Washington has not provided enough information about key details. But his spokesman, Tim Albrecht, said Iowa is exploring a partnership exchange that could include several states. Albrecht said they're confident they can get to a state option if needed.

Ohio, like Florida and Iowa a state Obama carried in the election, is leaning toward a partnership with the federal government despite GOP officials' continued misgivings about the law.

— In Mississippi, Republican insurance commissioner Mike Chaney formally notified Washington on Wednesday that his agency will proceed with a state-run exchange, disappointing GOP Gov. Phil Bryant, who remains staunchly opposed to Obama's law.

Chaney, too, says he wishes the law could be repealed, but he worries that "if you default to the federal government, you forever give the keys to the state's health insurance market to the federal government."

As for trying to fight the feds, Chaney observed: "We tried that 150 years ago in the South, and it doesn't work."

— In New Mexico, the administration of Republican Gov. Susana Martinez had been quietly working to put the law into place as the political storm swirled. With a fifth of its population uninsured, the state is planning to run its own exchange.

"The party is over. The opposition is over," New Mexico Human Services Secretary Sidonie Squier told the AP. "Whatever states didn't think they were going to do it, I think they're going to have to do it whether they like it or not. It's a done deal now."

Policy experts in Washington are noticing the shift.

"I think it's a very practical decision for states now," said Alan Weil, executive director of the nonpartisan National Academy for State Health Policy. "We are going to have a significant number of states running their own exchanges, a significant number where the federal government is running the exchange, and a significant number of partnerships. The bottom line is we are going to have to figure out how to make all three models work."

Although the public remains divided about the health care law, the idea of states running the new insurance markets is popular, especially with Republicans and political independents. A recent AP poll found that 63 percent of Americans would prefer states to run the exchanges, with 32 percent favoring federal control.

The breakdown among Republicans was 81-17 in favor of state control, while independents lined up 65-28 for states taking the lead. Democrats were almost evenly divided, with a slim majority favoring state control.

There are several potential benefits to a state operating its own exchange, experts say.

The biggest advantage may be that states would be more closely involved in coordinating between the exchanges and Medicaid programs. Because many people are going to be going back and forth between Medicaid and private coverage in the exchanges, states would probably be better served by a hands-on role.

States can also decide whether to allow open access to all insurers, or work only with a panel of pre-screened companies that meet certain requirements.

Also, the exchanges will offer coverage to people buying in the individual and small business markets, areas that states have traditionally regulated. Without a state-run exchange, states could be dealing their own regulators out of the equation, as Mississippi's insurance commissioner Chaney noted.

When the legislation was being considered in Congress, Democrats in the House wanted to have a national exchange administered by the federal government. But they lost the argument with their centrist Democratic counterparts in the Senate, who wanted state exchanges in order to preserve a state role.

Despite signs of movement toward going along with implementation of the overhaul, some major Republican-led states are holding fast. In Texas, the election results did not change any of the opposition to expanding Medicaid or to setting up insurance exchanges. The same holds for Louisiana, South Carolina, Missouri, Kansas and others.

"Adding more people to an already sinking ship with money that is either being borrowed from China or coming out of taxpayers' pockets is bad policy and bad for Texans," said Catherine Frazier, spokeswoman for Gov. Rick Perry. Twenty-seven percent of that state's residents are uninsured, the largest percentage for any state.

Many Republican state officials complain that the Obama administration simply hasn't given them enough information. Indeed, several major regulations affecting the exchanges have yet to be released. But that doesn't seem to have stopped states that made an early decision to proceed.

Virginia, a Republican-led state that voted for Obama on Nov. 6 and also elected a Democratic U.S. senator, is among those defaulting to Washington. But a spokesman for Gov. Bob McDonnell said things may change.

"This is not a final decision," said Jeff Caldwell. "The fact is, states still need far more information before any final decisions can be made on behalf of Virginia's taxpayers." The final call, he added, belongs to the state Legislature.

___

Associated Press writers Gary Fineout and Kelli Kennedy in Florida, Grant Schulte in Nebraska, Ann Sanner in Ohio, Jeff Amy and Emily Wagster Pettus in Mississippi, Barry Massey in New Mexico and Chris Tomlinson in Texas contributed to this report.

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Wall Street dips on "fiscal cliff" fear but off lows

NEW YORK (Reuters) - The S&P 500 was on track to fall for a third day on Thursday as Wal-Mart Stores Inc reported disappointing results and investors feared the "fiscal cliff" will harm the economy.


Stocks have struggled recently to hold onto even slight gains, dropping more than 1 percent on Wednesday after starting the session higher.


Investors worry the economy could slip into recession if no deal is reached in Washington to avoid the fiscal cliff - budget cuts and tax hikes that begin to take effect in the new year. The S&P 500 is off about 2 percent for the week so far.


"Presently, investors are grappling with over-arching market issues, such as fears about the looming 'fiscal cliff,' as well as typical seasonal issues such as year-end portfolio repositioning," said Melissa Roberts, lead analyst at quantitative research of Keefe Bruyette & Woods in New York.


"Individual stock performance is now more impacted by overall market performance and broad macro issues rather than company-specific fundamentals."


Investors will closely watch for any clues coming out of Friday's meeting at the White House between President Barack Obama and Republican and Democratic leaders of Congress over deficit reduction.


"In terms of the market, all eyes now are on the congressional meeting tomorrow with the White House," said Peter Boockvar, managing director at Miller Tabak & Co in New York.


"With a very oversold market and bearishness at the individual investor level at the highest since August 2011, a bounce is due if there is any positive commentary in that meeting," he added.


The Dow Jones industrial average <.dji> was down 29.07 points, or 0.23 percent, at 12,541.88. The Standard & Poor's 500 Index <.spx> was down 1.69 points, or 0.12 percent, at 1,353.80. The Nasdaq Composite Index <.ixic> was down 9.54 points, or 0.34 percent, at 2,837.27.


The benchmark S&P 500 index closed on Wednesday at the lowest level since July 25, while the Dow and Nasdaq ended at their lowest since late June. Since the November 6 election the S&P 500 is down about 5 percent.


Wal-Mart fell 4 percent to $68.50 after reporting third-quarter revenue that missed expectations. The world's largest retailer said economic conditions were weighing on customers' spending decisions.


Apple Inc shares also weighed on the market, falling 1 percent to $531.85 and down about 24 percent since September's high.


But retailer Target Corp rose 1.5 percent to $62.32 after it reported a profit that beat expectations.


Despite the recent decline, the S&P 500 is up 7.5 percent so far this year, though at its 2012 peak the benchmark index was up about 17 percent.


Weekly jobless benefits claims spiked last week, reflecting the impact of superstorm Sandy. The storm also hurt economic activity in the mid-Atlantic states. The Philadelphia Federal Reserve Bank's business activity index for last month fell more than expected, sending stocks lower.


The index is one of the early indicators of a national manufacturing report later from the Institute for Supply Management.


NetApp Inc surged 10.7 percent to $30.04 a day after reporting adjusted second-quarter earnings that beat expectations and forecasting a strong current quarter.


(Editing by Kenneth Barry)


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