News Analysis: Obama Nominees in Step on Light Footprint


Carolyn Kaster/Associated Press


President Obama named John O. Brennan, right, as his choice for C.I.A. director and chose Chuck Hagel, left, to be his next defense secretary.







WASHINGTON — With the selection of a new national security team deeply suspicious of the wisdom of American military interventions around the world, President Obama appears to have ended, at least for the moment, many of the internal administration debates that played out in the Situation Room over the past four years.




He has sided, without quite saying so, with Vice President Joseph R. Biden Jr.’s view — argued, for the most part, in the confines of the White House — that caution, covert action and a modest American military footprint around the world fit the geopolitical moment. The question is whether that approach will fit the coming challenges of stopping Iran’s nuclear program and the potential collapse of Syria.


Gone for the second term are the powerful personalities, and more hawkish voices, that pressed Mr. Obama to pursue the surge in Afghanistan in 2009, a gamble championed by Secretary of State Hillary Rodham Clinton and Robert M. Gates, the former secretary of defense. Gone from the C.I.A. is the man who urged Mr. Obama to keep troops there longer, David H. Petraeus.


The new team will include two Vietnam veterans, Senator John Kerry and Chuck Hagel, who bear the scars of a war that ended when the president was a teenager, and a counterterrorism chief, John O. Brennan, who helped devise the “light footprint” strategy of limiting American interventions, whenever possible, to drones, cyberattacks and Special Operations forces. All are advocates of those low-cost, low-American-casualty tools, and all have sounded dismissive of attempts to send thousands of troops to rewire foreign nations as wasteful and ill-conceived.


Most important to Mr. Obama and his national security adviser, Tom Donilon, all three are likely to accommodate themselves, in ways their predecessors often did not, to a White House that has insisted on running national security policy from the West Wing.


“One of the characteristics of this administration has been that decision-making has been centered in the White House,” said Dennis B. Ross, a Mideast expert who left the Obama administration a year ago but never wandered far from some of its key debates. “And most second-term administrations don’t change their sociology.”


But if they grab hold of the national security levers after what many predict will be, for Mr. Hagel and Mr. Brennan, bruising confirmation hearings, they will confront problems that may test whether the light footprint carries enough weight.


“Issues 1 and 2 will be cutting the defense budget and confronting Iran,” said Michael Mandelbaum, a political scientist whose 2010 book, “The Frugal Superpower,” dealt with the challenge of trying to manage the world on the cheap. “And then you will have issues like Syria, which test the question of whether you can manage to control a dangerous situation with no boots on the ground — and unless something dramatic changes, there will be no boots.”


Mr. Hagel, who was both a senator and a cellphone entrepreneur, has long been a critic of Pentagon bloat. But others with business experience, like Donald Rumsfeld, have believed they could bring market discipline to one of the country’s most sprawling enterprises, only to discover that killing off unneeded weapons systems has almost nothing to do with business decisions and everything to do with the politics of Congressional districts and campaign funds.


Mr. Obama’s bet was that by appointing a Republican, he will better his chances of overcoming those obstacles. What he discovered even before announcing Mr. Hagel’s appointment is that the former senator burned many bridges with his Republican colleagues, in part with his outspoken opposition to the Iraq war, despite voting in 2002 to authorize military action, and to the 2008 surge when President George W. Bush was still in office.


“If the president thinks Chuck Hagel can get him the Republican votes to downsize the Pentagon,” said one former senior aide to Mr. Bush, who declined to speak on the record, “I think he is in for a very rude surprise.”


Then there is Iran, which will be a test for all three men, for different reasons. Mr. Hagel has been particularly vocal about the dangers of a military confrontation with Tehran. While both Mr. Gates and his successor, Leon E. Panetta, expressed similar concerns at various points in the first term, Mr. Hagel’s view is considerably to the left of Mr. Obama’s. The president has, gradually, endorsed “coercive diplomacy,” telling the American Israel Public Affairs Committee in March, “As I’ve made clear time and again during the course of my presidency, I will not hesitate to use force when it is necessary to defend the United States and its interests.”


But Mr. Hagel has opposed unilateral sanctions and suggested that threatening Iran just closes down opportunities for dialogue.


“The key to coercive diplomacy is that the side you are trying to influence is convinced you are willing to follow through on the threat,” said Mr. Ross, who drafted some of those threats. “The president has been clear, but from others there have been mixed messages.”


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AP Exclusive: Richardson pressing NKorean test ban






PYONGYANG, North Korea (AP) — Former New Mexico Gov. Bill Richardson said Wednesday that his delegation is pressing North Korea to put a moratorium on missile launches and nuclear tests and to allow more cell phones and an open Internet for its citizens.


Richardson told The Associated Press in an exclusive interview in Pyongyang that the group is also asking for fair and humane treatment for an American citizen detained in North Korea.






“The citizens of the DPRK (North Korea) will be better off with more cell phones and an active Internet. Those are the three messages we’ve given to a variety of foreign policy officials, scientists” and government officials, Richardson said.


He is accompanied by Google Executive Chairman Eric Schmidt and Google Ideas think tank Director Jared Cohen on what Richardson has called a private, humanitarian trip. Schmidt, who is the highest-profile U.S. business executive to visit North Korea since leader Kim Jong Un took power a year ago, has not spoken publicly about the reasons behind the journey to North Korea.


The high-profile visit comes just weeks after North Korea launched a long-range rocket to send a satellite into space. Washington has condemned the launch as a banned test of missile technology.


Schmidt, who oversaw Google‘s expansion into a global Internet giant, speaks frequently about the importance of providing people around the world with Internet access and technology. Google now has offices in more than 40 countries, including all three of North Korea’s neighbors: Russia, South Korea and China, another country criticized for systematic Internet censorship.


He and Cohen have collaborated on a book about the Internet’s role in shaping society called “The New Digital Age” that comes out in April.


Using science and technology to build North Korea’s beleaguered economy was the highlight of a New Year’s Day speech by leader Kim Jong Un.


New red banners promoting slogans drawn from Kim’s speech line Pyongyang’s snowy streets, and North Koreans are still cramming to study the lengthy speech. It was the first time in 19 years for North Koreans to hear their leader give a New Year’s Day speech. During the rule of late leader Kim Jong Il, state policy was distributed through North Korea’s three main newspapers.


___


Follow AP’s bureau chief for Pyongyang and Seoul at www.twitter.com/newsjean.


Wireless News Headlines – Yahoo! News





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Kangaroo Gets Loose at Melbourne Airport















01/08/2013 at 08:00 PM EST



Travelers passing through Australia's Melbourne Airport on Monday may have been greeted by an unexpected baggage handler.

At around 7 a.m., a 3-year-old eastern gray kangaroo was spotted in the airport's parking garage, where it hopped around for almost two hours, giving security officers the slip in the process.

Wildlife officer Manfred Zabinskas was then called in to catch the young animal, who was tranquilized in order to be transported to safety. Analyzing the critter, Zabinskas noted he had been away from his natural habitat for some time, and that the romp through the parking garage had done some damage to his feet. Prior to being re-released into the wild, the kangaroo will be looked at by a veterinarian.

This is the second time a kangaroo has paid a visit to the Melbourne Airport. Last October, another marsupial made its way up to the fifth floor of the parking garage before being spotted.

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Report: Death rates from cancer still inching down


WASHINGTON (AP) — Death rates from cancer are continuing to inch down, researchers reported Monday.


Now the question is how to hold onto those gains, and do even better, even as the population gets older and fatter, both risks for developing cancer.


"There has been clear progress," said Dr. Otis Brawley of the American Cancer Society, which compiled the annual cancer report with government and cancer advocacy groups.


But bad diets, lack of physical activity and obesity together wield "incredible forces against this decline in mortality," Brawley said. He warned that over the next decade, that trio could surpass tobacco as the leading cause of cancer in the U.S.


Overall, deaths from cancer began slowly dropping in the 1990s, and Monday's report shows the trend holding. Among men, cancer death rates dropped by 1.8 percent a year between 2000 and 2009, and by 1.4 percent a year among women. The drops are thanks mostly to gains against some of the leading types — lung, colorectal, breast and prostate cancers — because of treatment advances and better screening.


The news isn't all good. Deaths still are rising for certain cancer types including liver, pancreatic and, among men, melanoma, the most serious kind of skin cancer.


Preventing cancer is better than treating it, but when it comes to new cases of cancer, the picture is more complicated.


Cancer incidence is dropping slightly among men, by just over half a percent a year, said the report published by the Journal of the National Cancer Institute. Prostate, lung and colorectal cancers all saw declines.


But for women, earlier drops have leveled off, the report found. That may be due in part to breast cancer. There were decreases in new breast cancer cases about a decade ago, as many women quit using hormone therapy after menopause. Since then, overall breast cancer incidence has plateaued, and rates have increased among black women.


Another problem area: Oral and anal cancers caused by HPV, the sexually transmitted human papillomavirus, are on the rise among both genders. HPV is better known for causing cervical cancer, and a protective vaccine is available. Government figures show just 32 percent of teen girls have received all three doses, fewer than in Canada, Britain and Australia. The vaccine was recommended for U.S. boys about a year ago.


Among children, overall cancer death rates are dropping by 1.8 percent a year, but incidence is continuing to increase by just over half a percent a year. Brawley said it's not clear why.


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Wall Street edges off five-year high, awaits earnings

NEW YORK (Reuters) - Stocks lost ground on Monday, as investors drew back from recent gains that lifted the S&P 500 to a five-year high, in anticipation of sluggish growth in corporate profits.


Shares of financial companies dipped after a group of major U.S. banks agreed to pay a total of $8.5 billion to end a government inquiry into faulty mortgage foreclosures. The KBW bank index <.bkx>, a gauge of U.S. bank stocks, was down 0.3 percent.


Other sectors were hit as well, most notably energy and utilities. The S&P 500 energy sector index <.gspe> fell 0.8 percent and the utilities sector <.gspu> was off 1.1 percent.


The day's decline came a session after the S&P 500 finished at a five-year high, boosted by a budget deal and strong economic data. The S&P 500 rose 4.6 percent last week, the best weekly gain in more than a year.


"It's a little bit of taking some risk off the table ahead of profit season, you're not going to see anything all that great" on earnings, said Larry Peruzzi, senior equity trader at Cabrera Capital Markets Inc in Boston.


Earnings are expected to be only slightly better than the third-quarter's lackluster results, and analysts' current estimates are down sharply from where they were in October. Fourth-quarter earnings growth is expected to come in at 2.8 percent, according to Thomson Reuters data.


Aluminum company Alcoa Inc begins the reporting season by announcing its results after Tuesday's market close. Alcoa shares fell 1.7 percent at $9.10.


The Dow Jones industrial average <.dji> dropped 50.92 points, or 0.38 percent, to 13,384.29. The Standard & Poor's 500 Index <.spx> fell 4.58 points, or 0.31 percent, to 1,461.89. The Nasdaq Composite Index <.ixic> lost 2.84 points, or 0.09 percent, to 3,098.81.


Ten mortgage servicers - including Bank of America , Citigroup , JPMorgan , and Wells Fargo - agreed on Monday to pay $8.5 billion to end a case-by-case review of foreclosures required by U.S. regulators.


In a separate case, Bank of America also announced roughly $11.6 billion of settlements with mortgage finance company Fannie Mae and a $1.8 billion sale of collection rights on home loans.


The bank also entered into agreements with Nationstar Mortgage Holdings and Walter Investment Management to sell about $306 billion of residential mortgage servicing rights.


Bank of America shares lost 0.2 percent at $12.09 while Nationstar Mortgage Holdings jumped 16.8 percent to $38.83.


Citigroup shares were up 0.09 percent to $42.47, and Wells Fargo shares fell 0.5 percent to $34.77.


"The financials probably have the wind behind them now with a lot of the regulations coming out ... the market has to absorb a lot of the gains, and for that reason there's a pullback from this level," said Warren West, principal at Greentree Brokerage Services in Philadelphia.


Shares of U.S. jet maker Boeing Co dropped 2 percent after a Boeing 787 Dreamliner aircraft with no passengers on board caught fire at Boston's Logan International Airport on Monday morning.


Amazon.com shares hit their highest price ever at $269.22 after Morgan Stanley raised is rating on the stock. Shares were up 3.6 percent at $268.46.


Video-streaming service Netflix Inc shares gained 3.4 percent to $99.20 after it said it will carry previous seasons of some popular shows produced by Time Warner's Warner Bros Television.


Walt Disney Co stock fell 2.3 percent to $50.97. The company started an internal cost-cutting review several weeks ago that may include layoffs at its studio and other units, three people with knowledge of the effort told Reuters.


Volume was lower than average, as 4.78 billion shares were traded on the New York Stock Exchange, NYSE MKT and Nasdaq. This is well below the 2012 average of 6.42 billion per session.


Declining stocks outnumbered advancing ones on the NYSE by 1,629 to 1,363, while on the Nasdaq decliners beat advancers 1,438 to 1,066.


(Reporting By Gabriel Debenedetti; Editing by Kenneth Barry and Nick Zieminski)



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Supporters Back Strike at Newspaper in China


James Pomfret/Reuters


Protesters gathered on Monday outside the headquarters of the relatively liberal newspaper Southern Weekend in Guangzhou, China.







BEIJING — Hundreds of people gathered outside the headquarters of a newspaper company in southern China on Monday, intensifying a battle over media censorship that poses a test of the willingness of China’s new leadership to tolerate calls for change.




The demonstration was an outpouring of support for journalists at the relatively liberal newspaper Southern Weekend, who erupted in fury late last week over what they called overbearing interference by local propaganda officials.


At the same time, the embattled newsroom received backing on the Internet from celebrities and other prominent commentators that turned what began as a local censorship dispute into a national display of solidarity.


“Hoping for a spring in this harsh winter,” Li Bingbing, an actress, said to her 19 million followers on a microblog account. Yao Chen, an actress with more than 31 million followers, quoted Aleksandr Solzhenitsyn, the Russian dissident: “One word of truth outweighs the whole world.”


Disputes between media organizations and local party leaders over the limits of reporting and expressions of opinion are common in China, but rarely emerge into public view. This time, calls to support the frustrated journalists spread quickly in Chinese online forums over the weekend, and those who showed up on Monday outside the media offices in Guangzhou, the capital of Guangdong Province, ran the gamut from high school and university students to retirees.


Many carried banners scrawled with slogans and white and yellow chrysanthemums, a flower that symbolizes mourning. One banner read: “Get rid of censorship. The Chinese people want freedom.” Police officers watched, but did not interfere.


The journalists at Southern Weekend have been calling for the ouster of Tuo Zhen, the top propaganda official in Guangdong Province, who took up his post last May.


They blame him for overseeing a change in a New Year’s editorial that originally called for greater respect for constitutional rights under the headline “China’s Dream, the Dream of Constitutionalism.”


The editorial went through layers of changes and ultimately became one praising the direction of the current political system, in which the Communist Party continues to exercise authority over all aspects of governance.


A well-known entrepreneur, Hung Huang, said online that the actions of Mr. Tuo had “destroyed, overnight, all the credibility the country’s top leadership had labored to re-establish since the 18th Party Congress,” the November gathering in Beijing that was the climax of the leadership transition installing Xi Jinping as Communist Party chief. Mr. Xi, who is also scheduled to assume the nation’s presidency in March, has raised expectations that he might pursue a more open-minded approach to molding China’s economic and political models during his planned decade-long tenure.


But more recently, he has said China must respect its socialist roots, which appeared to be a move to placate conservatives in the party.


One journalist for Southern Weekend said Monday night that talks between the various parties had taken place that afternoon, but there were no results to announce. “The negotiations did not go well at all,” the journalist said in a telephone interview.


Signs had emerged earlier that central propaganda officials were moving to dismantle support for the protest. A fiery editorial by Global Times, a populist newspaper, attacked the rebels at Southern Weekend and essentially accused them of conspiring against the government. Xinhua, the state news agency, and other prominent news sites published the editorial online, apparently at the orders of propaganda officials.


“Propaganda is still on the old road,” said an editor at a party media organization.


But by Tuesday morning, the news portals run by large Internet companies like Sina and Sohu rather than by the state had posted disclaimers with the Global Times editorial, saying the opinions did not reflect those of the companies.


It was on the Internet where the campaign to support the beleaguered journalists was reaching full bloom. Bloggers with large readerships, Han Han and Li Chengpeng, urged defiance of press censorship, and calls spread on microblogs for more rallies outside the newspaper offices on Tuesday.


It was unclear how many employees in the Southern Weekend newsroom had heeded calls by reporters for a strike to display their determination to resist censorship. A local journalist who went by the newspaper’s Beijing office on Monday said the building appeared to be open, but quiet. One employee at the site, where about 30 people work, told the journalist that the office was not on strike.


Jonathan Ansfield contributed reporting from Beijing. Mia Li contributed research from Guangzhou, China, and Shi Da from Beijing.



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Intel bets big on thin PCs and phones at Las Vegas show






LAS VEGAS (Reuters) – Top chipmaker Intel Corp on Monday announced shipments of a new low-power chip and showed off next-generation ultra thin laptops and convertible tablets in its latest bid to prove that the struggling PC industry still has a bright future.


At the 2013 Consumer Electronics Show in Las Vegas , Intel said new energy-efficient processors for tablets and laptops are available now, and it outlined features like voice recognition and drastically improved battery life on future PCs.






“Absolutely all-day battery life where you just don’t have to bring your power brick at all anymore,” Kirk Skaugen, corporate vice president and general manager of Intel’s PC Client Group, said of laptops built with the company’s upcoming Haswell processor.


While macroeconomic troubles have weighed on sales for several quarters, the growing popularity of tablets and smartphones is seen as an existential threat to the PC industry.


Anxious to breathe new life into PCs and prove a recent slump in sales is not permanent, Intel and PC manufactures in Las Vegas this week will display a range of ultra thin laptops, dubbed Ultrabooks, and hybrid devices that convert into tablets.


On a stage flanked by dozens of tablets and laptops with rotatable and detachable screens, Skaugen said Intel’s newly available chip based on its current Ivy Bridge architecture sips just 7 watts of energy, more efficient than a previously planned 10 watts of power.


NO-EXCUSES PHONE


The Santa Clara, California-based company has long been king of the PC chip market, particularly through its historic “Wintel” alliance with Microsoft Corp, which led to breathtakingly high profit margins and an 80 percent market share.


But it has struggled to adapt its powerful PC processors for battery-powered smartphones and tablets, a fast-growing market led by Qualcomm Inc, Samsung Electronics Co Ltd, ARM Holdings Plc and others.


Mike Bell, who co-heads Intel’s mobile and wireless business, introduced a new processor platform, code named Lexington, targeted at low-priced smartphones in emerging markets like Latin America and Asia.


“It’s designed to be a no-excuses multimedia phone,” he said.


Acer, Safaricom and Lava have already agreed to use the new chips in future phones, Bell said.


A handful of manufacturers and telecom carriers in Europe and Asia have already launched smartphones using Intel’s Medfield processors this year. Google’s Motorola Mobility in September launched the Razr i in Europe and Latin America as the first handset of a multi-device agreement between the two groups.


But Intel is fighting an uphill battle in a market where chips made using technology from ARM Holdings have become ubiquitous. Intel also has yet to release a chip for 4G telephone networks, keeping it out of the running for major smartphone design wins in the United States.


Sales of smartphone processors soared 58 percent in the third quarter, but Intel had just 0.2 percent of that market, according to a recent report from Strategy Analytics.


By comparison, worldwide PC shipments fell 8.6 percent in the third quarter, according to IDC.


Intel said 3D cameras would be integrated in future Ultrabooks to allow consumers to use gestures and facial recognition to control their devices. Upcoming Ultrabooks will also include voice interaction, Skaugen said.


“We’re basically going to give the PC the same human senses we’ve all had,” he said.


Intel and other tech companies are increasingly looking for ways to let PCs and other devices use cameras, GPS chips, microphones and other kinds of sensors to predict their users’ needs.


“It’s this combination of computer devices doing things before you ask them to do it, in that they’re smart enough to know based on their sensors,” said Patrick Moorhead, principal analyst at Moor Insights & Strategy.


(Reporting By Noel Randewich; Editing by Dan Grebler)


Tech News Headlines – Yahoo! News





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Justin Bartha Is Dating Trainer Lia Smith















01/07/2013 at 07:00 PM EST







Lia and Justin in Hawaii New Years Day


Pacific Coast News


Justin Bartha's "mystery woman" is in fact his girlfriend, trainer Lia Smith, a source reveals to PEOPLE.

The pair recently enjoyed a cozy trip to Smith's native Hawaii and were snapped basking in the sun on Maui on New Year's Day, which got people buzzing about her identity.

"They were very cute with each other," says an eyewitness. "They had their arms around each other and were kissing."

The couple also spent time with Smith's parents on Oahu. Bartha, who currently stars on The New Normal, was previously linked to Scarlett Johansson and dated Ashley Olsen for two years before breaking up in 2011.

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Your medical chart could include exercise minutes


CHICAGO (AP) — Roll up a sleeve for the blood pressure cuff. Stick out a wrist for the pulse-taking. Lift your tongue for the thermometer. Report how many minutes you are active or getting exercise.


Wait, what?


If the last item isn't part of the usual drill at your doctor's office, a movement is afoot to change that. One recent national survey indicated only a third of Americans said their doctors asked about or prescribed physical activity.


Kaiser Permanente, one of the nation's largest nonprofit health insurance plans, made a big push a few years ago to get its southern California doctors to ask patients about exercise. Since then, Kaiser has expanded the program across California and to several other states. Now almost 9 million patients are asked at every visit, and some other medical systems are doing it, too.


Here's how it works: During any routine check of vital signs, a nurse or medical assistant asks how many days a week the patient exercises and for how long. The number of minutes per week is posted along with other vitals at the top the medical chart. So it's among the first things the doctor sees.


"All we ask our physicians to do is to make a comment on it, like, 'Hey, good job,' or 'I noticed today that your blood pressure is too high and you're not doing any exercise. There's a connection there. We really need to start you walking 30 minutes a day,'" said Dr. Robert Sallis, a Kaiser family doctor. He hatched the vital sign idea as part of a larger initiative by doctors groups.


He said Kaiser doctors generally prescribe exercise first, instead of medication, and for many patients who follow through that's often all it takes.


It's a challenge to make progress. A study looking at the first year of Kaiser's effort showed more than a third of patients said they never exercise.


Sallis said some patients may not be aware that research shows physical inactivity is riskier than high blood pressure, obesity and other health risks people know they should avoid. As recently as November a government-led study concluded that people who routinely exercise live longer than others, even if they're overweight.


Zendi Solano, who works for Kaiser as a research assistant in Pasadena, Calif., says she always knew exercise was a good thing. But until about a year ago, when her Kaiser doctor started routinely measuring it, she "really didn't take it seriously."


She was obese, and in a family of diabetics, had elevated blood sugar. She sometimes did push-ups and other strength training but not anything very sustained or strenuous.


Solano, 34, decided to take up running and after a couple of months she was doing three miles. Then she began training for a half marathon — and ran that 13-mile race in May in less than three hours. She formed a running club with co-workers and now runs several miles a week. She also started eating smaller portions and buying more fruits and vegetables.


She is still overweight but has lost 30 pounds and her blood sugar is normal.


Her doctor praised the improvement at her last physical in June and Solano says the routine exercise checks are "a great reminder."


Kaiser began the program about three years ago after 2008 government guidelines recommended at least 2 1/2 hours of moderately vigorous exercise each week. That includes brisk walking, cycling, lawn-mowing — anything that gets you breathing a little harder than normal for at least 10 minutes at a time.


A recently published study of nearly 2 million people in Kaiser's southern California network found that less than a third met physical activity guidelines during the program's first year ending in March 2011. That's worse than results from national studies. But promoters of the vital signs effort think Kaiser's numbers are more realistic because people are more likely to tell their own doctors the truth.


Dr. Elizabeth Joy of Salt Lake City has created a nearly identical program and she expects 300 physicians in her Intermountain Healthcare network to be involved early this year.


"There are some real opportunities there to kind of shift patients' expectations about the value of physical activity on health," Joy said.


NorthShore University HealthSystem in Chicago's northern suburbs plans to start an exercise vital sign program this month, eventually involving about 200 primary care doctors.


Dr. Carrie Jaworski, a NorthShore family and sports medicine specialist, already asks patients about exercise. She said some of her diabetic patients have been able to cut back on their medicines after getting active.


Dr. William Dietz, an obesity expert who retired last year from the Centers for Disease Control and Prevention, said measuring a patient's exercise regardless of method is essential, but that "naming it as a vital sign kind of elevates it."


Figuring out how to get people to be more active is the important next step, he said, and could have a big effect in reducing medical costs.


___


Online:


Exercise: http://1.usa.gov/b6AkMa


___


AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner


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Asian shares drift, Basel ruling supports banks

SINGAPORE (Reuters) - Asian stocks drifted on Monday as investors booked profits from a New Year rally that had pushed markets to multi-month highs, but financial stocks gained after global regulators decided to relax draft plans for tough new bank liquidity rules.


Commodity prices mostly held firm, supported by data showing the U.S. economy continuing on a path of slow but steady recovery that propelled Wall Street stocks to a five-year high.


The dollar sat close to a two-and-a-half-year high against the yen as investors adjusted to the possibility of more monetary stimulus in 2013 from the Bank of Japan and less from the U.S. Federal Reserve.


MSCI's broadest index of Asia Pacific shares outside Japan <.miapj0000pus>, which had reached its highest level since August 2011 on Thursday, was flat, while Tokyo's Nikkei share average <.n225> retreated after touching a 23-month high in early trade to stand down 0.2 percent. <.t/>


"Investors have been carefully waiting for the timing to take profits as they believed the market can't keep rising," said Yutaka Miura, a senior technical analyst at Mizuho Securities.


CASH BUFFERS


The MSCI benchmark's financial sector sub-index <.miapjfn00pus> gained 0.5 percent after the Basel Committee of banking supervisors agreed on Sunday to give banks four more years and greater flexibility to build up cash buffers so they can use some of their reserves to help struggling economies.


HSBC Holdings Hong Kong shares rose 1.3 percent, while Australia and New Zealand Banking Corp gained 0.6 percent. <.hk><.ax/>


Shares in Japanese exporters were supported by a weaker yen, which traded around 88.05 to the dollar, a little firmer on the day, after the U.S. currency rose as far as 88.40 yen, its highest in nearly two-and-a-half years, on Friday.


The dollar posted a gain of around 2.7 percent against the yen last week, its biggest weekly rise in more than a year. Its gains had accelerated after minutes from the Federal Reserve's December meeting showed some policymakers has mulled ending the Fed's bond-buying program as early as this year.


By contrast, many investors are now betting that Japan's new government, led by Prime Minister Shinzo Abe, will push to weaken the yen and drive through aggressive fiscal stimulus, and pressure the Bank of Japan to do the same on the monetary side.


The dollar ticked up slightly against the euro, which traded around $1.3060.


The U.S. benchmark S&P 500 index <.spx> closed at its highest level since December 2007 on Friday after data showed a steady pace of jobs growth and brisk expansion of the services sector in the world's biggest economy.


That offered support to growth-sensitive commodities, with copper edging up 0.2 percent to around $8,100 a tonne, while Brent crude oil gained 0.2 percent to around $111.50 a barrel and U.S. crude stood flat just above $93.


(Editing by Eric Meijer)



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