Worries grow in east Congo with fighter buildup

DAKAR, Senegal (AP) — Aid workers warned Wednesday that armed groups are setting up new front lines in and around the city of Goma in eastern Congo, where the U.N. said it now has documented at least 126 rape cases last month.

Thousands of fighters from the M23 rebel group withdrew several weeks ago from Goma, and the fighters have since taken steps toward negotiating with the Congolese government.

However, residents in Goma say M23 and other armed fighters are now positioning themselves in an around the city — including inside camps for people displaced by the violence.

The arrival of several thousand fighters within the last week is prompting fear among civilians, who already have experienced years of fighting and rebellions, said Tariq Riebl, Oxfam’s humanitarian coordinator there.

“They are very concerned — people are seeing this and they don’t know what it means,” he said. “I think what everyone is scared about is that it seems like people are ramping up, ramping up but for what purpose?”

Oxfam warns that more than 1 million people could come under attack if violence again flares in Goma, where more than 100,000 people already have fled from elsewhere in the region.

“Goma is typically the last refuge safe haven and now it’s being directly called into question. If Goma falls in a big battle, where are people going to go?” Riebl said.

“This is very, very disconcerting because you have a population of over 1 million people and if war were to break out, we’re looking at a horrific situation.”

The M23 rebel group, which is believed to be backed by neighboring Rwanda, is made up of hundreds of soldiers who deserted the Congolese army in April.

They took control of many villages and towns in the mineral-rich east over the last seven months, culminating in the seizure of Goma on Nov. 20. It took days of negotiations and intense international pressure, including from the U.N., for the thousands of fighters from M23 to finally withdraw from the regional capital.

The U.N. mission says it’s received allegations of serious rights violations, including killings and wounding of civilians, rape, looting, and forced recruitment of children, by elements of the M23 rebels in Goma and neighboring areas.

Congo’s armed forces are also blamed for a series of attacks as they fled Goma in retreat in late November.

The U.N. said Tuesday it now has been able to document at least 126 rapes during that period in the Minova area, about 60 kilometers (40 miles) south of Goma.

U.N. spokesman Martin Nesirky said that two Congolese soldiers so far have been arrested in connection with the rapes, while seven others had been implicated in looting in the area.

“The Congolese Armed Forces have started investigating those human rights violations,” he said. “The U.N. Mission is supporting the military justice procedure in conducting thorough investigations into these allegations to ensure that the perpetrators are identified and held accountable.”

Rape has long been used as a brutal weapon of war in eastern Congo, where both soldiers and various armed groups use sexual violence to intimidate, punish and control the population.

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Changes in law aim to protect kids’ online data

WASHINGTON (AP) — Aiming to prevent companies from exploiting online information about children under 13, the Obama administration on Wednesday imposed sweeping changes in regulations designed to protect a young generation with easy access to the Internet.

Two years in the making, the amended rules to the decade-old Children’s Online Privacy Protection Act go into effect in July. Privacy advocates said the changes were long overdue in an era of cellphones, tablets, social networking services and online stores with cellphone apps aimed at kids for as little as 99 cents.

Siphoning details of children’s personal lives — their physical location, contact information, names of friends and more — from their Internet activities can be highly valuable to advertisers, marketers and data brokers.

The Obama administration has largely refrained from issuing regulations that might stifle growth in the technology industry, one of the U.S. economy’s brightest spots. Yet the Federal Trade Commission pressed ahead with the new kids’ privacy guidelines despite loud complaints — particularly from small businesses and software apps developers — that the revisions would be too costly to comply with and cause responsible companies to abandon the children’s marketplace.

As evidence of online risks, the FTC last week said it was investigating an unspecified number of software developers that may have illegally gathered information without the consent of parents.

Under the changes to the law, known as COPPA, information about children that cannot be collected unless a parent first gives permission now includes the location data that a cellphone generates, as well as photos, videos and audio files containing a human image or voice.

The Congressional Bipartisan Privacy Caucus commended the FTC for writing the new rules. “Keeping kids safe on the Internet is as important as ensuring their safety in schools, in homes, in cars,” caucus co-chairman Rep. Edward Markey, D-Mass., said at a Capitol Hill news conference.

Data known as “persistent identifiers,” which allow a person to be tracked over time and across websites, are also considered personal data and covered by the rules, the agency said. But parental consent is not required when a website operator collects this data solely to support its internal operations, which can include advertising, site analysis and network communications.

The rules offer several new methods for verifying a parent’s consent, including electronically scanned consent forms, video conferencing and email.

The FTC sought to achieve a balance between protecting kids and spurring innovation in the technology industry, said Jon Leibowitz, the agency’s chairman.

The final rules expand the definition of a website or online service directed at children to include plug-ins and advertising networks that collect personal information from kids.

But the rules were also tightened in a way favorable to some Internet heavyweights, Google and Apple. Their online apps stores, which dominate the marketplace for mobile applications, won’t be held liable for violations because they “merely offer the public access to child-directed apps,” the FTC said.

Google and Apple had warned that if the rule were written to include their stores, they would jettison many apps specifically intended for kids. They said that would hurt the nation’s classrooms, where new and interactive apps are used by teachers and students.

A Washington trade group that represents independent apps developers criticized the agency for addressing the concerns of large businesses while doing too little for the startups that make educational apps parents and teachers want. The FTC’s belief that the apps industry will figure out how to thrive under the new rules is akin to jumping off a cliff then building a parachute, said Morgan Reed, executive director of the Association for Competitive Technology.

“While that may work for big companies, small companies lack the silk and line to build that parachute before they hit the ground,” Reed said.

Companies are not excluded from advertising on websites directed at children, allowing business models that rely on advertising to continue, Leibowitz said. But behavioral marketing techniques that target children are prohibited unless a parent agrees. “You may not track children to build massive profiles,” he said.

The agency included in the rules new methods for securing verifiable consent after the software industry and Internet companies raised concerns over how to confirm that the permission actually came from a parent. Electronic scans of signed consent forms are acceptable, as is video-teleconferencing between the website operator or online service and the parent, according to the agency.

The FTC also said it is encouraging technology companies to recommend additional verification methods. Leibowitz said he expects that this will “unleash innovation around consent mechanisms.”

Emailed consent is also acceptable as long as the business confirms it by sending an email back to the parent or calling or sending a letter. In cases of email confirmation, the information collected can only be used for internal use by that company and not shared with third parties, the agency said.

The FTC’s investigation of apps developers came after the agency examined 400 kids’ apps that it purchased from Apple’s iTunes store and Google’s apps store, Google Play. It determined that 60 percent of them transmitted the user’s unique device identification to the software maker or, more frequently, to advertising networks and companies that compile, analyze and sell consumer information for marketing campaigns.

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Music, roses at singer Jenni Rivera’s memorial

UNIVERSAL CITY, Calif. (AP) — Jenni Rivera‘s “celestial graduation” was marked by festive music, heartfelt speeches in Spanish and English and passionate chants of “Jen-ni! Jen-ni!”

Rivera’s children and famed singers Olga Tanon and Joan Sebastian performed during the nearly 2 ½-hour memorial service Wednesday at the Gibson Amphitheatre, where thousands of fans gathered to salute the “Diva de la Banda” who died in a plane crash Dec. 9.

One fan, Veronika Flores, drove nearly eight hours from her home in Woodland, Calif., near Sacramento, to be united with other fans at the service.

“I just came to say goodbye to a Latina woman, La Gran Senora,” she said, invoking the name of one of Rivera’s most beloved songs.

Famed Mexican singers Marco Antonio Solis and Ana Gabriel and actors Lou Diamond Phillips and Kate del Castillo were also among the guests at Wednesday’s service.

A red casket sat onstage amid a sea of white roses as images of Rivera played on three big screens. Family members embraced and kissed the casket at the conclusion of the service, laying more white roses atop it.

While most of the speeches and songs were delivered in Spanish, Rivera’s children spoke in English, often directly to their late mother.

“We’re not here to mourn the death,” said son Michael, 21. “We’re here to celebrate the life and graduation of a singer, an entertainer, a diva, a fighter, an entrepreneur, a philanthropist, and more than anything, a mother — the best mother.”

He then called for 27 seconds of silence for the victims of the massacre in Newtown, Conn.

Rivera’s youngest child, 11-year-old Johnny, was heartbreakingly poised as he said, “The person that everyone’s talking about is my mom.”

“Mama, I’ve been crying so much these last few days. I miss you so much,” said the little boy, wearing a red bow tie like many of his family members. “I hope you’re taking care of my dad and I hope he’s taking care of you, too.”

Rivera’s second husband, Juan Lopez, died in 2009. The couple divorced in 2003.

Rivera’s brothers and sisters spoke lovingly of the singer, calling her “the queen of queens,” ”perfectly imperfect” and an “eternal diva.” Her father said Rivera’s “happiness, smile and care for the public will never be forgotten.” He then performed a song he wrote about his daughter, a woman who rose from humble roots to become “la Diva de la Banda.”

One of Rivera’s brothers said his sister “made it OK for women to be who they are. Jenni also made it OK to be from nothing with the hopes of being something.”

The family asked that Latin radio stations play Rivera’s song “La Gran Senora” at noon Thursday in her honor.

The service was closed to most media, although a broadcast of the proceedings was made available.

The burial will be private.

Rivera’s last album before her death, “La Misma Gran Senora,” topped the Latin albums chart this week, selling 27,000 copies — the best sales week for any Latin album this year. Rivera also holds three spots on the Billboard 200 albums chart.

Rivera and six other people died Dec. 9 in a northern Mexico plane crash that remains under investigation. Rivera, a mother of five children and grandmother of two, was 43.

Rivera sold more than 15 million copies of her 12 major-label albums. Her soulful singing style and honesty about her tumultuous personal life won her fans on both sides of the U.S.-Mexico border. She was also an actress and reality TV star.

Born in Los Angeles, Rivera launched her career by selling cassette tapes at flea markets. By the end of the 90s, she won a major-label contract and built a loyal following.

Many of her songs deal with themes of dignity in the face of heartbreak, which Rivera spoke of openly with her fans.

She had recently filed for divorce from her third husband, was once detained at a Mexico City airport with tens of thousands of dollars in cash, and publicly apologized after her brother assaulted a drunken fan who verbally attacked her in 2011.

“She was a fighter, a woman who can push boundaries,” said Flores. “That’s why I liked her, because I’m just like her.”

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Sanofi to pay $109 million to settle U.S. kickback charges

(Reuters) – French drugmaker Sanofi has agreed to pay $ 109 million to settle charges that it violated the False Claims Act by providing free drugs as a form of kickbacks to physicians, the U.S. Justice Department announced on Wednesday.

The settlement resolves allegations that Sanofi submitted false average sales price reports for the drug Hyalgan, a knee injection to treat arthritis, that did not account for free units distributed contingent on future purchases.

Average sales prices are used to determine reimbursement rates by government health programs, such as Medicare. The Justice Dept said the practice caused government programs to pay inflated amounts for Hyalgan and a competing product.

Sanofi sales representatives were given thousands of free “sample” Hyalgan syringes and used the free drug as kickbacks with a promise to provide negotiated numbers of the syringes in order to lower Hyalgan’s effective price, the government claimed.

The drugmaker said it had taken “strong, proactive and effective steps” to address the issue and voluntarily halted the Hyalgan sampling program in 2009.

The settlement with the U.S. Attorney’s Office, District of Massachusetts, the U.S. Department of Justice and several states resolves all claims arising out of the investigation into sampling of Hyalgan, Sanofi said.

In addition to the $ 109 million payment, Sanofi said it expects to enter into a Corporate Integrity Agreement with the Office of the Inspector General of the United States Department of Health and Human Services that will place its operations under enhanced scrutiny.

There are no criminal charges against the company related to the Hyalgan allegations.

(Reporting by Bill Berkrot; Editing by M.D. Golan)

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Dublin opposes Aer Lingus deal

18 December 2012 Last updated at 17:17 ET

The Irish government has voiced its opposition to Ryanair’s bid to buy rival Aer Lingus, saying the deal risked damaging competition.

However, despite Dublin holding a 25% stake in Aer Lingus, it is the European Union that will decide whether the takeover can go ahead.

Ryanair responded that the Irish government has no power to block its bid. It already owns 30% of Aer Lingus.

Brussels will rule on the deal early next year.

Ryanair wants to buy Aer Lingus for 694m euros ($ 917m; £565m).

It is the third time the airline has attempted to take full control of Aer Lingus, having seen its first bid turned down by the Commission in 2007. Ryanair subsequently dropped a second offer in 2009.

Last month, the Commission gave Ryanair a list of objections, but the airline offered new concessions to Brussels, including selling some of Aer Lingus’ landing slots at London Heathrow to British Airways.

The Republic of Ireland’s Transport Minister, Leo Varadkar, said: “The Ryanair offer and at least the remedies that are being reported are not sufficient in our view, so we won’t support their bid and, in addition, won’t co-operate with their remedies package.

“The Commission will make its own decision, but we have given our views and they are around connectivity, competition and employment.

“We don’t see any advantages for Ireland in what’s being proposed and we see very significant potential risks.”

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NBC’s Engel, TV crew escape abduction in Syria

BEIRUT (AP) — NBC‘s chief foreign correspondent Richard Engel said Tuesday he and members of his network crew escaped unharmed after five days of captivity in Syria, where more than a dozen pro-regime gunmen dragged them from their car, killed one of their rebel escorts and subjected them to mock executions.

Appearing on NBC’s “Today” show, an unshaven Engel said he and his team escaped during a firefight Monday night between their captors and rebels at a checkpoint. They crossed into Turkey on Tuesday.

NBC did not say how many people were kidnapped with Engel, although two other men, producer Ghazi Balkiz and photographer John Kooistra, appeared with him on the “Today” show. It was not confirmed whether everyone was accounted for.

Engel said he believes the kidnappers were a Shiite militia group loyal to the Syrian government, which has lost control over swaths of the country’s north and is increasingly on the defensive in a civil war that has killed 40,000 people since March 2011.

“They kept us blindfolded, bound,” said the 39-year-old Engel, who speaks and reads Arabic. “We weren’t physically beaten or tortured. A lot of psychological torture, threats of being killed. They made us choose which one of us would be shot first and when we refused, there were mock shootings,” he added.

“They were talking openly about their loyalty to the government,” Engel said. He said the captors were trained by the Iranian Revolutionary Guard and allied with Hezbollah, the Lebanese Shiite militant group, but he did not elaborate.

There was no mention of the kidnapping by Syria’s state-run news agency.

Both Iran and Hezbollah are close allies of the embattled Syrian government of President Bashar Assad, who used military force to crush mostly peaceful protests against his regime. The crackdown on protests led many in Syria to take up arms against the government, and the conflict has become a civil war.

Engel said he was told the kidnappers wanted to exchange him and his crew for four Iranian and two Lebanese prisoners being held by the rebels.

“They captured us in order to carry out this exchange,” he said.

Engel and his crew entered Syria on Thursday and were driving through what they thought was rebel-controlled territory when “a group of gunmen just literally jumped out of the trees and bushes on the side of the road.”

“There were probably 15 gunmen. They were wearing ski masks. They were heavily armed. They dragged us out of the car,” he said.

He said the gunmen shot and killed at least one of their rebel escorts on the spot and took the hostages into a waiting truck nearby.

Around 11 p.m. Monday, Engel said he and the others were being moved to another location in northern Idlib province.

“And as we were moving along the road, the kidnappers came across a rebel checkpoint, something they hadn’t expected. We were in the back of what you would think of as a minivan,” he said. “The kidnappers saw this checkpoint and started a gunfight with it. Two of the kidnappers were killed. We climbed out of the vehicle and the rebels took us. We spent the night with them.”

Engel and his crew crossed back into neighboring Turkey on Tuesday.

The network said there was no claim of responsibility, no contact with the captors and no request for ransom during the time the crew was missing.

NBC sought to keep the disappearance of Engel and the crew secret for several days while it investigated what happened to them. Major media organizations, including The Associated Press, adhered to a request from the network to refrain from reporting on the issue out of concern it could make the dangers to the captives worse. News of the disappearance did begin to leak out in Turkish media and on some websites on Monday.

Syria has become a danger zone for reporters since the conflict began.

According to the Committee to Protect Journalists, Syria is by far the deadliest country for the press in 2012, with 28 journalists killed in combat or targeted for murder by government or opposition forces.

Among the journalists killed while covering Syria are award-winning French TV reporter Gilles Jacquier, photographer Remi Ochlik and Britain’s Sunday Times correspondent Marie Colvin. Also, Anthony Shadid, a correspondent for The New York Times, died after an apparent asthma attack while on assignment in Syria.

The Syrian government has barred most foreign media coverage of the civil war in Syria. Those journalists whom the regime has allowed in are tightly controlled in their movements by Information Ministry minders. Many foreign journalists sneak into Syria illegally with the help of smugglers and travel with rebel escorts or drivers.

Engel joined NBC in 2003 and was named chief foreign correspondent in 2008. He previously worked as a freelance journalist for ABC News, including during the U.S. invasion of Iraq. He has lived in the Middle East since graduating from Stanford University in 1996.

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Google Music adds free iTunes-like song-matching feature

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Naomi Watts pulls off “The Impossible” to critical acclaim

LOS ANGELES (Reuters) – Days after the devastating 2004 Indian Ocean tsunami, actress Naomi Watts took part in a fundraising telethon spearheaded by George Clooney to help the region’s hundreds of thousands of people in 14 nations whose lives were shattered.

Little did Watts know that eight years later she would be starring in “The Impossible,” out in the U.S. movie theaters on Friday, about a real family’s experience in Thailand. The tsunami and earthquake killed more than 5,000 people, and resulted in 2,800 missing in that country alone.

Yet when the actress was first approached to star in the film, directed by Spanish filmmaker Juan Antonio Bayona, she hesitated.

“I thought, how do you make a movie about a tsunami without it becoming some sort of spectacular disaster movie?” Watts, 44, told Reuters. “That would be so wrong.”

However once Watts read the script, she said was moved by the story based on the real-life Spanish family of Maria Belon, her husband Enrique Alvarez – played by Ewan McGregor in the movie – and their three sons.

Belon’s family were spending their Christmas holiday in Thailand when the tsunami hit. The film follows their struggle to survive, injured and separated, in the aftermath and their perseverance in finding each other amidst the chaos.

“I felt a huge amount of pressure because of the responsibility to Maria’s story,” said Watts. “And on her back, she carries the stories of everybody else because hers is connected to the lives of hundreds of thousands of people. I felt a sense of responsibility.”

PLAUDITS FOR WATTS’ PERFORMANCE

The British-born, Australian actress delivered, despite her fears. So far, her performance has earned Watts best actress nominations from the Golden Globes, the Screen Actors Guild and the Broadcast Film Critics Association.

The New York Observer wrote in its review that “Watts seems almost spiritually committed to her role” while The Hollywood Reporter said she “packs a huge charge of emotion as the battered, ever-weakening Maria whose tears of pain and fear never appear fake or idealized.”

Watts credits the real Maria Belon for being “an open book” when it came to recalling her personal experience during that harrowing time.

The two met before shooting began, and Belon was on the film set. Belon, a physician in Spain, also wrote detailed letters chronicling her experience, including taking refuge in a tree and the Thai villagers who discovered her weak and injured body.

One of the more challenging aspects of the shoot was recreating the tsunami, a 10-minute sequence in the film that Watts said took six weeks to shoot on location in Spain. Rather than creating the tidal wave digitally, actors were anchored in water tanks with the current pushing at them and “debris being chucked at you.”

Watts said that while the challenge of shooting the sequence was incomparable to the suffering of those who went through the ordeal in 2004, it was “physically the most demanding thing I’ve ever done.”

There was much more dialogue scripted during that sequence but “you were struggling to breathe and we quickly learned that once you open your mouth, water is going in and nothing is coming out.

“Though it was difficult, I’m grateful we got that kind of level of fear and intensity,” she added.

What offset the intensity during the shoot was having her sons Sasha, 5, and Sammy, 4, visiting Watts on the set. “We had them paint stuff on themselves like scars and wounds, then rub them off so they could see it wasn’t real,” recalled Watts.

It’s a far cry from the way she used to approach her work before having kids, such as her Oscar-nominated performance as a grief-stricken mother the 2003 film “21 Grams.”

“I was taking everything home with me, staying up all hours, writing, thinking, researching … just living with torment,” Watts recalled of that time. “I can’t live like that at this point in my life with little ones. I am a mom of two small kids and once I put the key in the door, it’s my duty to be totally present.”

(Editing By Jill Serjeant; Editing by Alden Bentley)

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Experts: Kids are resilient in coping with trauma

WASHINGTON (AP) — They might not want to talk about the gunshots or the screams. But their toys might start getting into imaginary shootouts.

Last week’s school shooting in Connecticut raises the question: What will be the psychological fallout for the children who survived?

For people of any age, regaining a sense of security after surviving violence can take a long time. They’re at risk for lingering anxiety, depression, post-traumatic stress disorder.

But after the grief and fear fades, psychiatrists say most of Newtown‘s young survivors probably will cope without long-term emotional problems.

“Kids do tend to be highly resilient,” said Dr. Matthew Biel, chief of child and adolescent psychiatry at MedStar Georgetown University Hospital.

And one way that younger children try to make sense of trauma is through play. Youngsters may pull out action figures or stuffed animals and re-enact what they witnessed, perhaps multiple times.

“That’s the way they gain mastery over a situation that’s overwhelming,” Biel explained, saying it becomes a concern only if the child is clearly distressed while playing.

Nor is it unusual for children to chase each other playing cops-and-robbers, but now parents might see some also pretending they’re dead, added Dr. Melissa Brymer of the UCLA-Duke National Center for Child Traumatic Stress.

Among the challenges will be spotting which children are struggling enough that they may need professional help.

Newtown’s tragedy is particularly heart-wrenching because of what such young children grappled with — like the six first-graders who apparently had to run past their teacher’s body to escape to safety.

There’s little scientific research specifically on PTSD, post-traumatic stress disorder, in children exposed to a burst of violence, and even less to tell if a younger child will have a harder time healing than an older one.

Overall, scientists say studies of natural disasters and wars suggest most children eventually recover from traumatic experiences while a smaller proportion develop long-term disorders such as PTSD. Brymer says in her studies of school shootings, that fraction can range from 10 percent to a quarter of survivors, depending on what they actually experienced. A broader 2007 study found 13 percent of U.S. children exposed to different types of trauma reported some symptoms of PTSD, although less than 1 percent had enough for an official diagnosis.

Violence isn’t all that rare in childhood. In many parts of the world — and in inner-city neighborhoods in the U.S., too — children witness it repeatedly. They don’t become inured to it, Biel said, and more exposure means a greater chance of lasting psychological harm.

In Newtown, most at risk for longer-term problems are those who saw someone killed, said Dr. Carol North of the University of Texas Southwestern Medical Center, who has researched survivors of mass shootings.

Friday’s shootings were mostly in two classrooms of Sandy Hook Elementary School, which has about 450 students through fourth-grade.

But those who weren’t as close to the danger may be at extra risk, too, if this wasn’t their first trauma or they already had problems such as anxiety disorders that increase their vulnerability, she said.

Right after a traumatic event, it’s normal to have nightmares or trouble sleeping, to stick close to loved ones, and to be nervous or moody, Biel said.

To help, parents will have to follow their child’s lead. Grilling a child about a traumatic experience isn’t good, he stressed. Some children will ask a lot of questions, seeking reassurance, he said. Others will be quiet, thinking about the experience and maybe drawing or writing about it, or acting it out at playtime. Younger children may regress, becoming clingy or having tantrums.

Before second grade, their brains also are at a developmental stage some refer to as magical thinking, when it’s difficult to distinguish reality and fantasy. Parents may have to help them understand that a friend who died isn’t in pain or lonely but also isn’t coming back, Brymer said.

When problem behaviors or signs of distress continue for several weeks, Brymer says it’s time for an evaluation by a counselor or pediatrician.

Besides a supportive family, what helps? North advises getting children back into routines, together with their friends, and easing them back into a school setting. Studies of survivors of the Sept. 11 terrorist attacks found “the power of the support of the people who went through it with you is huge,” she said.

Children as young as first-graders can benefit from cognitive-behavioral therapy, Georgetown’s Biel said. They can calm themselves with breathing techniques. They also can learn to identify and label their feelings — anger, frustration, worry — and how to balance, say, a worried thought with a brave one.

Finally, avoid watching TV coverage of the shooting, as children may think it’s happening all over again, Biel added. He found that children who watched the 9/11 clips of planes hitting the World Trade Center thought they were seeing dozens of separate attacks.

___

EDITOR’S NOTE — Lauran Neergaard covers health and medical issues for The Associated Press in Washington.

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Optimism about “cliff” boost market; financials lead

NEW YORK (Reuters) – The S&P 500 ended at its highest level in almost two months on Monday on rising hopes that negotiations over the “fiscal cliff” were making progress and that a deal could be reached in days.

After weeks of stalemate, President Barack Obama and Republican House Speaker John Boehner met at the White House on Monday, raising hopes that Washington will be able to head off steep tax hikes and spending cuts that threaten the economy.

All of the S&P 500‘s 10 sectors were higher, led by financials and other growth-oriented sectors. The S&P Financial Index <.gspf> gained 2.1 percent, and shares of Bank of America jumped 4 percent to $ 11. In a research note Monday, Meredith Whitney Advisory Group shifted to a positive stance on financials and upgraded Bank of America, Citigroup and Discover Financial shares.</.gspf>

The S&P consumer distretionary index <.gspd>, up 1.8 percent, was the second-best performing sector. Investors worry the U.S. economy could slide into recession if the tax and spending changes are implemented.</.gspd>

Boehner has edged closer to Obama’s position by proposing to extend lower tax rates for everyone who earns less than $ 1 million. Still, his position remains far from that of President Obama.

“Trumping everything right now are the fiscal cliff talks. It seems like progress is being made. I think it’s getting to the nitty gritty,” said Alan Lancz, president of Alan B. Lancz & Associates Inc. in Toledo, Ohio. “The bet right now is that something will come by the end of this week.”

The Dow Jones industrial average <.dji> was up 100.38 points, or 0.76 percent, at 13,235.39. The Standard & Poor’s 500 Index <.spx> was up 16.78 points, or 1.19 percent, at 1,430.36, its highest close since October 22. The Nasdaq Composite Index <.ixic> was up 39.27 points, or 1.32 percent, at 3,010.60.</.ixic></.spx></.dji>

The gains, which came on lighter-than-usual volume, ended a two-day losing streak on the S&P 500. The index also had its best daily percentage gain since November 23. Volume was roughly 6.2 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the year-to-date average daily closing volume of 6.4 billion.

In the financial sector, American International Group Inc. shares rose 3 percent to $ 34.95 on plans to sell as much as $ 6.5 billion of AIA Group Ltd. Advancing stocks also included those in the home construction sector <.djushb>, which rose 4.5 percent.</.djushb>

“People are looking for sectors to play, and I think Bank of America broke out of some long-standing price levels, and it got everything going in that sector,” said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.

Shares of Citigroup were up 4.1 percent at $ 39.15 while shares of Discover Financial were up 1.6 percent at $ 40.18.

Clearwire Corp agreed to sell the rest of the company to Sprint Nextel Corp for a slightly sweetened $ 2.2 billion offer just days after minority shareholders criticized the previous bid as too low. Clearwire tumbled 13.6 percent to $ 2.91, while Sprint was up 0.2 percent to $ 5.56.

Apple Inc shares edged up after recent losses, rising 1.8 percent to $ 518.83 even though two firms cut their price targets on the stock Monday.

The tech giant said it sold more than 2 million of its new iPhone 5 smartphones in China during the three days after its launch there on Friday, but the figures did not ease worries about stiffer competition. Apple shares have tumbled more than 25 percent in about three months.

Compuware Corp rose 12.9 percent to $ 10.76 after hedge fund Elliott Management offered to buy the business software maker for $ 2.3 billion and S&P Capital IQ raised the target price and moved it to “hold” from “strong sell.

Advancers outnumbered decliners on the NYSE by about 2 to 1, and on the Nasdaq by nearly 9 to 4.

(Editing by Kenneth Barry and Nick Zieminski)

Business News Headlines – Yahoo! News

Title Post: Optimism about “cliff” boost market; financials lead
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