U.S. State Dept officials resign under pressure over Benghazi killings

WASHINGTON (Reuters) - Three senior U.S. State Department officials were asked to resign after an official inquiry harshly criticized their offices for failing to provide adequate security at the U.S. mission in Benghazi, Libya, before it came under attack in September, a U.S. official said on Wednesday.

The official, who spoke on condition of anonymity, said Eric Boswell, the assistant secretary for diplomatic security; one of his deputies, Charlene Lamb; and an unnamed official in the Bureau of Near Eastern Affairs were asked to step down because of the inquiry panel's report, which did not fault Secretary of State Hillary Clinton in connection with the attack.

State Department officials declined to comment on the matter, saying it was a personnel issue. The Associated Press first reported that the three officials had resigned.

An unclassified version of the report released Tuesday by the State Department concluded that the mission was completely unprepared to deal with a September 11 attack that killed U.S. Ambassador Chris Stevens and three other Americans.

"We did conclude that certain State Department bureau-level senior officials in critical positions of authority and responsibility in Washington demonstrated a lack of leadership and management ability appropriate for senior ranks," retired Admiral Michael Mullen, one of the leaders of the inquiry, told reporters on Wednesday.

The inquiry's chair, retired Ambassador Thomas Pickering, said the panel had determined that responsibility for security shortcomings in Benghazi belonged at levels lower than Clinton's office.

"We fixed (responsibility) at the assistant secretary level, which is, in our view, the appropriate place to look for where the decision-making in fact takes place, where - if you like - the rubber hits the road," Pickering said after closed-door meetings with congressional committees.

The report by the Accountability Review Board probing the attack and comments by its two lead authors suggested that Clinton, who accepted responsibility for the incident, would not be held personally culpable.

"The secretary of state has been very clear about taking responsibility here, (yet) it was from my perspective not reasonable in terms of her having a specific level of knowledge," said Mullen, the former chairman of the U.S. Joint Chiefs of Staff.

Pickering and Mullen spoke to the media after briefing members of the House of Representatives Foreign Affairs Committee and Senate Foreign Relations Committee behind closed doors on classified elements of their report.

Clinton had been expected to appear at an open hearing on Benghazi on Thursday, but is recuperating after suffering a concussion, dehydration and a stomach bug last week and will instead be represented by her top two deputies.

"GROSSLY INADEQUATE"

The unclassified version of the report cited "leadership and management" deficiencies, poor coordination among officials and "real confusion" in Washington and in the field over who had the authority to make decisions on policy and security concerns.

The scathing report could tarnish Clinton's four-year tenure as secretary of state, which has seen her consistently rated as the most popular member of President Barack Obama's Cabinet.

Clinton, who intends to step down in January, said in a letter accompanying the review that she would adopt all of its recommendations, which include stepping up security staffing and requesting more money to fortify U.S. facilities.

The National Defense Authorization Act for 2013, which is expected to go to Congress for final approval this week, includes a measure directing the Pentagon to increase the Marine Corps presence at diplomatic facilities by up to 1,000 Marines.

Some Capitol Hill Republicans who had criticized the Obama administration's handling of the Benghazi attacks said they were impressed by the report.

"It was very thorough," said Senator Johnny Isakson. Senator John Barrasso said: "It was very, very critical of major failures at the State Department at very high levels." Both spoke after the closed-door briefing.

Others, however, kept up their criticism of the administration and called for Clinton to testify as soon as she is able.

"The report makes clear the massive failure of the State Department at all levels, including senior leadership, to take action to protect our government employees abroad," Representative Mike Rogers, the Republican chairman of the House Intelligence Committee, said in a statement.

Senator Bob Corker, who will be the top Republican on the Senate Foreign Relations Committee when the new Congress is seated early next year, said Clinton should testify about Benghazi before her replacement is confirmed by the Senate.

"I do think it's imperative for all concerned that she testify in an open session prior to any changing of the regime," Corker said.

Republicans have focused much of their firepower on U.S. Ambassador to the United Nations Susan Rice, who appeared on television talk shows after the attack and suggested it was the result of a spontaneous protest rather than a premeditated attack.

The report concluded that there was no such protest.

Rice, widely seen as President Barack Obama's top pick to succeed Clinton, withdrew her name from consideration last week.

(Additional reporting by Tabassum Zakaria and Susan Cornwell; Editing by Doina Chiacu and Philip Barbara)

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Blake Shelton Says The Voice Winner Cassadee Pope Can Do Anything

TV Watch

The Voice

By Andrea Billups and Jessica Herndon

12/19/2012 at 07:00 PM EST

Cassadee Pope and Blake Shelton

Trae Patton/NBC

Cassadee Pope won Tuesday night's The Voice competition, and already her team leader and star mentor Blake Shelton says she has the right frame of mind for success.

Even as last week, when her rendition of "Stupid Boy" went No. 1 on iTunes, she was nervously telling Shelton her time on the show was over – much to his chagrin.

"That's what makes an artist," Shelton praised her after the results were announced Tuesday night. "We are never satisfied. But I hope she's really happy that she won."

Pope, 23, who beat out finalists Terry McDermott, who came in second, and Nicholas Davis, who was third, said after her victory that she's eyeing a crossover record as her first professional effort.

"I would love to do the pop/rock thing, but I know that I gained some amazing country fans and I know how hard it is to get into that world," the Florida native said. "I'd love to add a country music element to it a bit. I used to cover country music when I was a kid and it's stylistically part of my voice somehow."

Shelton said the versatile Pope can take many directions for her future success in music.

"She's got a lot of options," he said. "She's adored by rock fans, pop fans, country fans. She connects with a lyric the way few people can. The door is wide open."

Season 4 of The Voice premieres March 25, 2013, with Usher and Shakira joining Shelton and Adam Levine as team leaders.

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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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Wall Street falls as "cliff" talks sour, but hopes remain

NEW YORK (Reuters) - U.S. stocks sold off late in the day to close at session lows on Wednesday as talks to avert a year-end fiscal crisis turned sour, even as investors still expect a deal.

The S&P 500 slipped after a two-day rally that took the benchmark index to its highest close in two months. Defensive-oriented shares led the decliners, including health care and consumer staples.

General Motors bucked the overall weakness to surge 6.6 percent to $27.18 after the automaker said it will buy back 200 million of its shares from the U.S. Treasury, which plans to sell the rest of its GM stake over the next 15 months.

President Barack Obama and congressional Republicans are struggling to come up with a deal to avoid early 2013 tax hikes and spending cuts that many economists say could send the U.S. economy into recession.

House Speaker John Boehner, the top Republican in Congress, said in a one-minute press conference that his chamber will pass a proposal that Obama had already threatened to veto as it spares many wealthy Americans from tax hikes needed to balance the budget. Obama has already agreed to reductions in benefits for senior citizens.

"My guess is they're close to a deal, and right before, it looks like the deal is about to blow up either on manufactured or legitimate reasons," said Uri Landesman, president of hedge fund Platinum Partners in New York.

He said if the market thought a deal was in real danger, the S&P 500 would slide below 1,400. It stands now near 1,435, not far from a two-month high.

The CBOE Volatility Index <.vix> surged 11.5 percent to 17.36, but has remained relatively stable. Its 14- 50- and 200-day averages are all within 1.1 points.

Landesman said the VIX's stability indicates "the bulls have control of this market still."

Banks and energy shares - groups that outperform during periods of economic expansion - have led recent gains, indicating a shift to focusing on a growing economy as Wall Street looks past the budget talks.

Defensive sectors led Wednesday's downturn, with the S&P health care sector index <.gspa> down 1.1 percent.

The Dow Jones industrial average <.dji> dropped 98.99 points, or 0.74 percent, to 13,251.97. The S&P 500 <.spx> lost 10.98 points, or 0.76 percent, to 1,435.81. The Nasdaq Composite <.ixic> fell 10.17 points, or 0.33 percent, to 3,044.36.

Herbalife Ltd shares tumbled 12.1 percent to $37.34 after William Ackman, one of the world's biggest hedge fund managers, said he is shorting the stock of the weight management products company.

Oracle shares helped cap the Nasdaq's loss after the company reported earnings that beat expectations on strong software sales growth. Oracle jumped 3.7 percent to $34.09.

Knight Capital Group Inc climbed 5.4 percent to $3.51 after it agreed to be bought by Getco Holdings in a deal valued at $1.4 billion. The stock, which nearly collapsed after a trading error in August, remains down about 70 percent so far this year.

Shares of Chinese display advertising provider Focus Media Holding Ltd jumped 6.7 percent to $25.52 after it agreed to be bought by a consortium of private equity funds led by the Carlyle Group for about $3.6 billion.

Data showed homebuilding permits touched their highest level in nearly 4-1/2 years in November. The PHLX housing index <.hgx> fell 0.8 percent, but has gained 66.4 percent this year as the housing market has turned the corner.

About 6.9 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, slightly above the daily average so far this year of about 6.45 billion shares.

Advancing and declining issues were almost even on both the NYSE and the Nasdaq.

(Reporting by Rodrigo Campos; Editing by Jan Paschal)

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Egypt opposition protests against constitution

CAIRO (Reuters) - Opponents of Egyptian President Mohamed Mursi staged protests in Cairo on Tuesday against an Islamist-backed draft constitution that has divided Egypt but looks set to be approved in the second half of a referendum this weekend.

Several hundred protesters outside the presidential palace chanted "Revolution, revolution, for the sake of the constitution" and called on Mursi to "Leave, leave, you coward!". While the protest was noisy, numbers were down on previous demonstrations.

Mursi obtained a 57 percent "yes" vote for the constitution in the first part of the referendum last weekend, state media said, less than he had hoped for.

The opposition, which says the basic law is too Islamist, will be encouraged by the result but is unlikely to win the second part this Saturday, which is to be held in districts seen as even more sympathetic towards Mursi's Muslim Brotherhood.

The National Salvation Front opposition coalition said there were widespread voting violations last Saturday and called for protests to "bring down the invalid draft constitution".

The Ministry of Justice said it was appointing judges to investigate complaints of voting irregularities.

Opposition marchers converged on Tahrir Square, cradle of the revolution that toppled Hosni Mubarak almost two years ago, and Mursi's presidential palace, still ringed with tanks after earlier protests.

A protester at the presidential palace, Mohamed Adel, 30, said: "I have been camping here for weeks and will continue to do so until the constitution that divided the nation, and for which people died, gets scrapped."

Shortly after midnight, a few hundred protesters who had planned to spend the night in tents set up around the presidential palace were attacked with stones.

"Unknown people threw stones at us from behind the walls the army had built at all entrances to the palace, and some of the protesters were injured in the leg and head," protester Karim el-Shaer told Reuters.

The build-up to the first day of voting saw clashes between supporters and opponents of Mursi in which eight people died. Recent demonstrations in Cairo have been more peaceful, although rival factions clashed on Friday in Alexandria, Egypt's second city.

RESIGNATION

A judges' club urged its members on Tuesday not to supervise Saturday's vote. But the call is not binding and balloting is expected to go ahead.

If the constitution is passed, national elections can take place early next year, something many hope will help end the turmoil that has gripped Egypt since the overthrow of Hosni Mubarak almost two years ago.

But the closeness of the first day of voting and the low turnout suggest more difficulties ahead for Mursi as he seeks to rally support for difficult economic reforms.

"This percentage ... will strengthen the hand of the (opposition) National Salvation Front, and the leaders of this Front have declared they are going to continue this fight to discredit the constitution," said Mustapha Kamal Al-Sayyid, a professor of political science at Cairo University.

Mursi is likely to become more unpopular with the introduction of planned austerity measures, Sayyid told Reuters.

To tackle the budget deficit, the government needs to raise taxes and cut fuel subsidies. Uncertainty surrounding economic reform plans has already prompted the postponement of a $4.8 billion loan from the International Monetary Fund. The Egyptian pound has fallen to eight-year lows against the dollar.

Mursi and his backers say the constitution is needed to move Egypt's democratic transition forward. Opponents say it is too Islamist and ignores the rights of women and of minorities, including 10 percent of Egyptians who are Christian.

Demonstrations erupted when Mursi awarded himself extra powers on November 22 and then fast-tracked the constitution through an assembly dominated by his Islamist allies and boycotted by many liberals.

The referendum has had to be held over two days because many of the judges needed to oversee polling staged a boycott in protest. In order to pass, the constitution must be approved by more than 50 percent of those voting.

(Additional reporting by Tamim Elyan and Edmund Blair; Writing by Giles Elgood; Editing by Kevin Liffey)

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Samsung Galaxy Muse is like an iPod Shuffle that Syncs with Your Phone

In perhaps the most awkwardly titled tech press release ever, Samsung Mobile announced the launch of the new Samsung Galaxy Muse, a device which appears to have nothing to do with “CORRECTING and REPLACING and ADDING MULTIMEDIA” but everything to do with being a music player crossed with a smartphone accessory.

​Say goodbye to iTunes?

While most handheld music players (and smartphone or tablets with music apps) sync with a PC or Mac music app, like iTunes or Banshee, the Samsung Galaxy Muse syncs with your Android phone itself. It uses the Muse Sync app, which Google Play says will install on devices like the Nexus 7 tablet but which Samsung says will only work with the Galaxy S II, Galaxy S III, Galaxy Note and Galaxy Note II smartphones.

​Plug it in, turn it on

The pebble-shaped Muse connects to your Samsung phone via its headset jack. It doesn’t have a screen, so you have to control it iPod Shuffle style, and use the Muse Sync app to see how much of its 4 GB of space are free and decide which playlists to sync. Since it only has those 4 GB, it can only hold a fraction of the music that can be put on the much more powerful smartphones.

​Who is Samsung selling the Galaxy Muse to?

Samsung says “users can sync the songs they want and leave their phone behind,” the usefulness of which may depend on whether or not you feel limited by having to bring your smartphone with you. The press release mentions its “wearable design and small form factor,” and suggests taking it “in place of [your] smartphone … at the gym or on the go.”

​What other gadgets are like the Galaxy Muse?

The most obvious comparison is to the iPod Shuffle, Apple’s similarly tiny and screen-less portable music player. At $ 49, it costs the same as the Galaxy Muse (although a Droid-Life tipster found a $ 25 off coupon code for the Muse), but comes in seven different colors and has an embossed click-wheel controller instead of a flat and featureless surface. It requires you to use iTunes on a desktop PC or Mac, though.

​On the upside

The Galaxy Muse’s six hours of battery life may not be suitable for all-day listening, but may at least take the pressure off of a battery-hungry smartphone (so long as it’s one of Samsung’s flagship models). And as PCMag’s Chloe Albanesius notes, “it’s not very convenient to strap a 5.5-inch Galaxy Note II to your arm when you hit the gym.”

Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.
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Kristen Stewart Apologizes for Making Everyone 'So Angry'

12/18/2012 at 06:30 PM EST

Kristen Stewart

Lorenzo Bevilaqua/Disney/Getty

Kristen Stewart is once again saying she's sorry.

A few months after publicly expressing regret over cheating on boyfriend Robert Pattinson with her Snow White and the Huntsman director Rupert Sanders, the actress has some words for everybody else.

"I apologize to everyone for making them so angry," the typically press-shy On the Road star, 22, tells Newsweek. "It was not my intention."

Stewart, who has been the subject of both vitriolic criticism and tremendous support from fans, adds, "It's not a terrible thing if you're either loved or hated."

But at the end of the day, the former Twilight star is primarily focused on her craft.

"I don't care [about people's opinions]," she explains. "It doesn't keep me from doing my s–––."

Addressing her most famous role, that of Bella Swan in the Twilight franchise, she says, "The only relief when it comes to Twilight is that the story is done ... I start every project to finish the mother––, and to extend that [mentality] over a five-year period adapting all of these treasured moments over four books, it was constantly worrying."

As for always being know to a generation of moviegoers as Bella, she says, "As long as people's perspective of me doesn't keep me from doing what I want to do, it doesn’t matter.”

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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.

Read More..

Shares, euro up on hopes of U.S. "cliff" deal, BOJ easing

SINGAPORE (Reuters) - Asian shares rose and the euro hovered around multi-month highs on Wednesday as signs of progress in resolving the U.S. "fiscal cliff" budget crisis boosted demand for riskier assets.

Expectations of more aggressive monetary easing under Japan's new government also drove stocks higher, with the Bank of Japan (BOJ) starting a two day meeting on Wednesday.

The BOJ will ease monetary policy this week and consider adopting a 2 percent inflation target in January, double its current price goal, sources say, after pressure from next Prime Minister Shinzo Abe for stronger efforts to beat deflation.

Tokyo's Nikkei share average <.n225> opened up more than 1 percent, topping 10,000 points for the first time since April.

"The market is already in overbought territory, but investors are increasingly being alarmed that there is a risk of not having Japanese stocks in their portfolios," said Hiroichi Nishi, general manager at SMBC Nikko Securities.

Australian shares <.axjo> rose 0.6 percent to a new 17-month high, lead by miners and banks. MSCI's broadest index of Asia Pacific shares outside Japan <.miapj0000pus> edged up 0.1 percent. <.t/>

On Wall Street the S&P 500 <.spx> rose more than 1 percent on Tuesday to notch up the index's best two-day run in a month, on growing confidence a deal can be reached to avoid a U.S. fiscal cliff of spending cuts and tax rises in January. <.n/>

The euro was steady around $1.3226, just shy of its highest since May, and against the yen it fetched 111.53, having risen as far as 111.60, its highest since late August 2011.

"Unless U.S. fiscal cliff talks take an unexpected turn for the worse, we believe that EUR/USD will meet our 1.3300 year-end target," analysts at BNP Paribas wrote in a note.

The greater appetite for riskier assets also supported oil, with U.S. benchmark crude edging up to $88 a barrel.

(Additional reporting by Ayai Tomisawa in Tokyo and Ian Chua in Sydney: Editing by Michael Perry)

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Clinton gets accountability report on Benghazi attacks

WASHINGTON (Reuters) - Secretary of State Hillary Clinton on Monday received an official review of the September attack on a U.S. diplomatic mission in Benghazi, Libya, setting the stage for testimony on an incident that prompted a political furor and sharp questions about security at U.S. diplomatic facilities overseas.

The State Department said Clinton - who is convalescing after suffering a concussion last week - received the report from the Accountability Review Board formed to probe the attack which killed U.S. Ambassador Christopher Stevens and three other Americans.

"The ARB has completed its work. Its report has gone to the secretary this morning. She now has it," State Department spokeswoman Victoria Nuland said.

The committee has been meeting in private and State Department officials have declined to discuss almost all specifics of the Benghazi attack pending its reports.

The findings are expected to cover questions on whether enough attention was given to potential threats and how Washington responded to security requests from U.S. diplomats in Libya.

A determination that top State Department officials turned down those requests, as Republican congressional investigators allege, could refuel criticism of the officials - and possibly even end the careers of some of them.

Clinton had been expected to testify to Congress on December 20 on the report's results, but is under doctors' orders to remain at home this week.

Deputy Secretary William Burns and Deputy Secretary Thomas Nides will testify in her stead at Thursday's open hearings of the Senate and House foreign affairs committees, Nuland said.

Prior to that, the Accountability Review Board's two leaders - retired Ambassador Thomas Pickering and retired chairman of the U.S. Joint Chiefs of Staff Michael Mullen - will testify in closed door hearings of the two committees on Wednesday, she said.

POLITICAL FALLOUT

The political uproar over the September 11 Benghazi attack has already claimed one victim.

U.S. Ambassador to the United Nations Susan Rice, widely tipped as a front-runner to replace Clinton when she steps down as secretary of state early next year, last week withdrew her name from consideration, saying she wished to avoid a potentially disruptive Senate confirmation process.

Republican lawmakers had blasted Rice for televised comments she made in the aftermath of the attack in which she said preliminary information suggested the assault was the result of protests over an anti-Muslim video made in California rather than a premeditated strike.

Rice has said she was relying on talking points drawn up by U.S. intelligence officials.

Nuland said the final report could contain both classified and unclassified sections, and that only the latter would be made publicly available.

Central questions raised include why the ambassador was in such an unstable part of Libya on the anniversary of the September 11, 2001, attacks on New York and the Pentagon.

The five-person independent board usually includes retired ambassadors, a former CIA officer and a member of the private sector. It has the power to issue subpoenas, and members are required to have appropriate security clearances to review classified information.

Nuland said that Clinton - who intends to step down toward the end of January when President Barack Obama is sworn in for his second term - was "on the mend" following her concussion, which occurred when she fell as a result of dehydration due to a stomach virus.

She added that Clinton remained open to discussing the attack with lawmakers herself next month.

"She looks forward to continuing to engage with them in January and she will be open to whatever they consider appropriate in that regard," Nuland said. (Editing by Warren Strobel and Mohammad Zargham)

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