New push for most in US to get at least 1 HIV test

WASHINGTON (AP) — There's a new push to make testing for the AIDS virus as common as cholesterol checks.

Americans ages 15 to 64 should get an HIV test at least once — not just people considered at high risk for the virus, an independent panel that sets screening guidelines proposed Monday.

The draft guidelines from the U.S. Preventive Services Task Force are the latest recommendations that aim to make HIV screening simply a routine part of a check-up, something a doctor can order with as little fuss as a cholesterol test or a mammogram. Since 2006, the Centers for Disease Control and Prevention also has pushed for widespread, routine HIV screening.

Yet not nearly enough people have heeded that call: Of the more than 1.1 million Americans living with HIV, nearly 1 in 5 — almost 240,000 people — don't know it. Not only is their own health at risk without treatment, they could unwittingly be spreading the virus to others.

The updated guidelines will bring this long-simmering issue before doctors and their patients again — emphasizing that public health experts agree on how important it is to test even people who don't think they're at risk, because they could be.

"It allows you to say, 'This is a recommended test that we believe everybody should have. We're not singling you out in any way,'" said task force member Dr. Douglas Owens of Stanford University and the Veterans Affairs Palo Alto Health Care System.

And if finalized, the task force guidelines could extend the number of people eligible for an HIV screening without a copay in their doctor's office, as part of free preventive care under the Obama administration's health care law. Under the task force's previous guidelines, only people at increased risk for HIV — which includes gay and bisexual men and injecting drug users — were eligible for that no-copay screening.

There are a number of ways to get tested. If you're having blood drawn for other exams, the doctor can merely add HIV to the list, no extra pokes or swabs needed. Today's rapid tests can cost less than $20 and require just rubbing a swab over the gums, with results ready in as little as 20 minutes. Last summer, the government approved a do-it-yourself at-home version that's selling for about $40.

Free testing is available through various community programs around the country, including a CDC pilot program in drugstores in 24 cities and rural sites.

Monday's proposal also recommends:

—Testing people older and younger than 15-64 if they are at increased risk of HIV infection,

—People at very high risk for HIV infection should be tested at least annually.

—It's not clear how often to retest people at somewhat increased risk, but perhaps every three to five years.

—Women should be tested during each pregnancy, something the task force has long recommended.

The draft guidelines are open for public comment through Dec. 17.

Most of the 50,000 new HIV infections in the U.S. every year are among gay and bisexual men, followed by heterosexual black women.

"We are not doing as well in America with HIV testing as we would like," Dr. Jonathan Mermin, CDC's HIV prevention chief, said Monday.

The CDC recommends at least one routine test for everyone ages 13 to 64, starting two years younger than the task force recommended. That small difference aside, CDC data suggests fewer than half of adults under 65 have been tested.

"It can sometimes be awkward to ask your doctor for an HIV test," Mermin said — the reason that making it routine during any health care encounter could help.

But even though nearly three-fourths of gay and bisexual men with undiagnosed HIV had visited some sort of health provider in the previous year, 48 percent weren't tested for HIV, a recent CDC survey found. Emergency rooms are considered a good spot to catch the undiagnosed, after their illnesses and injuries have been treated, but Mermin said only about 2 percent of ER patients known to be at increased risk were tested while there.

Mermin calls that "a tragedy. It's a missed opportunity."

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France to answer ratings downgrade with reforms

PARIS (Reuters) - France said on Tuesday it would respond to a Moody's credit downgrade by pushing on with reforms but complained the ratings agency had overlooked steps already taken to revamp the euro zone's second-largest economy.


France lost its prized triple-A badge from the Standard & Poor's in January and so Monday's move by Moody's was not surprising but it underlined doubts about Socialist President Francois Hollande's ability to fix France's public finances.


The downgrade also highlighted the divergence with the top-rated regional powerhouse Germany whose finance minister called it a "small warning" to its most important euro zone partner.


Moody's said on Tuesday that it would assess the triple-A ratings of the euro zone's EFSF and ESM bailout funds in light of the French downgrade.


However, its one-notch rating cut to Aa1 with a negative outlook did not affect the perceived status of French bonds which, along with German debt, are seen as a safe haven from the crisis in southern Europe.


"Moody's raised concerns about France's capacity to reform and so it is up to us to show that this time we are going to carry out reforms," Finance Minister Pierre Moscovici, leading a government offensive to play down the move, told journalists.


"The rating change does not call into question either the economic fundamentals of our country, the efforts undertaken by the government or our creditworthiness."


The government is planning the toughest belt-tightening effort in 30 years in 2013 but must also try and halt a growth slow-down that has seen unemployment surge to 13-year highs.


Moody's said it kept a negative outlook on France due to structural challenges and a "sustained loss of competitiveness" in the country, where business leaders blame high labor charges for flagging exports. It also cited "sizable exposures" of its banks to weak, southern euro zone countries.


"The first driver ... is the risk to economic growth, and therefore to the government's finances, posed by the country's persistent structural economic challenges," Moody's said.


The downgrade sent the euro 0.30 percent lower to 1.2770 against the dollar late on Monday but the currency recovered some ground to trade at 1.2810 at 1230 GMT Tuesday.


The benchmark French 10-year government bond yield - which has been trading at historic lows and offering Hollande crucial access to cheap borrowing - was little changed at 2.12 percent versus 2.08 percent before the downgrade.


Deutsche Bank economist Gilles Moec said the fact the downgrade was largely priced-in did not take the pressure off Hollande to show he will pursue more reforms, with an overhaul of rigid hiring and firing rules seen as the most pressing.


"Public opinion in France - as well as the market ultimately - will expect a reaction from the executive," Moec said. "The market ... is giving France the benefit of the doubt, but a further clarification of the policy stance is becoming urgent."


NEGATIVE OUTLOOK


Moody's said it could downgrade France again if efforts to free up the rigid labor market and overhaul an economy where public spending accounts for 57 percent of output ran into trouble.


"We would downgrade the rating further in the event of an additional material deterioration in France's economic prospects or in a scenario in which there were difficulties in implementing the announced reforms," Moody's lead France analyst Dietmar Hornung told Reuters.


He said more big shocks from the euro zone debt crisis would also exert downward pressure on the rating.


The downgrade follows concerns raised by the IMF that France could be left behind as Italy and Spain reform at a faster pace.


But analysts see French bonds remaining resilient for now.


"The French debt market is highly liquid and remains a favored venue for international investors, particularly in a world where 'double-A' is becoming the norm among Western states," Barclays France director Franklin Pichard said.


Yet with Germany one of the few major economies to retain a triple-A rating, the move is likely to reinforce Berlin's role as the capital calling the shots in the 17-country euro zone.


Michael Grosse-Broemer, parliamentary whip of German Chancellor Angela Merkel's ruling CDU party, told Reuters the downgrade gave fresh impulse to France to fulfill its reforms.


Finance Minister Wolfgang Schaeuble said the move should not be overdramatized but it was a warning for everyone in Europe to live up their responsibilities.


With France's 2-trillion-euro economy teetering on the brink of recession, Hollande surprised many this month by granting 20 billion euros in annual tax relief to companies, equivalent to a 6 percent cut in labour costs, to spur competitiveness.


The government also plans 30 billion euros in budget savings next year to trim its deficit and has promised reforms next year to add flexibility to rigid labour laws.


"Certain criticisms are too strong or are too late. I would have preferred that the bold and unprecedented decisions on the crisis were better received," Moscovici said of Moody's.


He said it was unfair to flag concerns over French banks as they have cut exposure to troubled euro states such as Greece.


"I don't expect (the downgrade) to have an immediate knock-on impact today on access to and cost of funding," said Espirito Santo analyst Andrew Lim of any impact on the banking sector.


But he said France's exposure to Spain, Italy and peripheral Europe should be kept in mind.


As far as government borrowing goes, France has completed its issuance for 2012. Demand is strong from foreign buyers, who hold 55 percent of its long-term bonds, but the downgrade could be a trigger to bet on yields rising next year.


"Our view is the market is teeing itself up to short France in 2013. It's the trade everyone wants to get into," said Lyn Graham-Taylor at Rabobank in London.


(Additional reporting by Blaise Robinson, Alexandre Boksenbaum-Granier and Andreas Rinke; Writing by Mark John; editing by Anna Willard)


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Gaza Clash Escalates With Deadliest Israeli Strike


Bernat Armangue/Associated Press


Smoke rose over Gaza City on Sunday, as Israel widened its range of targets to include buildings used by the news media.







CAIRO — Emboldened by the rising power of Islamists around the region, the Palestinian militant group Hamas demanded new Israeli concessions to its security and autonomy before it halts its rocket attacks on Israel, even as the conflict took an increasing toll on Sunday.




After five days of punishing Israeli airstrikes on the Hamas-controlled Gaza Strip and no letup in the rocket fire in return, representatives of Israel and Hamas met separately with Egyptian officials in Cairo on Sunday for indirect talks about a truce.


The talks came as an Israeli bomb struck a house in Gaza on Sunday afternoon, killing 11 people, in the deadliest single strike since the conflict between Israel and Hamas escalated on Wednesday. The strike, along with several others that killed civilians across the Gaza Strip, signaled that Israel was broadening its range of targets on the fifth day of the campaign.


By the end of the day, Gaza health officials reported that 70 Palestinians had been killed in airstrikes since Wednesday, including 20 children, and that 600 had been wounded. Three Israelis have been killed and at least 79 wounded by unrelenting rocket fire out of Gaza into southern Israel and as far north as Tel Aviv.


Hamas, badly outgunned on the battlefield, appeared to be trying to exploit its increased political clout with its ideological allies in Egypt’s new Islamist-led government. The group’s leaders, rejecting Israel’s call for an immediate end to the rocket attacks, have instead laid down sweeping demands that would put Hamas in a stronger position than when the conflict began: an end to Israel’s five-year-old embargo of the Gaza Strip, a pledge by Israel not to attack again and multinational guarantees that Israel would abide by its commitments.


Prime Minister Benjamin Netanyahu of Israel stuck to his demand that all rocket fire cease before the air campaign lets up, and Israeli tanks and troops remained lined up outside Gaza on Sunday. Tens of thousands of reserve troops had been called up. “The army is prepared to significantly expand the operation,” Mr. Netanyahu said at the start of a cabinet meeting.


Reda Fahmy, a member of Egypt’s upper house of Parliament and of the nation’s dominant Islamist party, who is following the talks, said Hamas’s position was just as unequivocal. “Hamas has one clear and specific demand: for the siege to be completely lifted from Gaza,” he said. “It’s not reasonable that every now and then Israel decides to level Gaza to the ground, and then we decide to sit down and talk about it after it is done. On the Israeli part, they want to stop the missiles from one side. How is that?”


He added: “If they stop the aircraft from shooting, Hamas will then stop its missiles. But violence couldn’t be stopped from one side.”


Hamas’s aggressive stance in the cease-fire talks is the first test of the group’s belief that the Arab Spring and the rise in Islamist influence around the region have strengthened its political hand, both against Israel and against Hamas’s Palestinian rivals, who now control the West Bank with Western backing.


It also puts intense new pressure on President Mohamed Morsi of Egypt, a former leader of the Muslim Brotherhood who was known for his fiery speeches defending Hamas and denouncing Israel. Mr. Morsi must now balance the conflicting demands of an Egyptian public that is deeply sympathetic to Hamas and the Palestinian cause against Western pleadings to help broker a peace and Egypt’s need for regional stability to help revive its moribund economy.


Indeed, the Egyptian-led cease-fire talks illustrate the diverging paths of the Muslim Brotherhood and Hamas, a Palestinian offshoot of the original Egyptian Islamist group. Hamas has evolved into a more militant insurgency and is labeled a terrorist organization by the United States and Israel, while the Brotherhood has effectively become Egypt’s ruling party. Mr. Fahmy said in an interview in March that the Brotherhood’s new responsibilities required a step back from its ideological cousins in Hamas, and even a new push to persuade the group to compromise.


Reporting was contributed by Ethan Bronner, Irit Pazner Garshowitz and Isabel Kershner from Jerusalem, and Peter Baker from Bangkok.



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RuPaul's Drag Race Season 5 Contestants Announced















11/19/2012 at 09:30 AM EST



Start your engines ... RuPaul's Drag Race is back!

Fresh on the heels of RuPaul's All Stars Drag Race, the fifth season ofRuPaul's Drag Race is slated to premiere in January 2013.

Not only will 14 contestants from around the world compete for the coveted title of America's Next Drag Superstar, there's also $100,000 cash at stake.

"As we start our fifth season, I'm thrilled to announce that Britney Spears, Demi Lovato, Mariah Carey, Nicki Minaj and Keith Urban will not be joining us as full time judges," RuPaul said in a statement. "Don't get me wrong, I love them all. But we're gonna keep it all hood up in here. Because that's what makes RuPaul's Drag Race the best damn show on TV."

The season five contestants are Alaska, Alyssa Edwards, Coco Montrese, Detox, Honey Mahogany, Ivy Winters, Jade Jolie, Jinkx Monsoon, Lineysha Sparx, Monica Beverly Hillz, Penny Tration, Roxxxy Andrews, Serena ChaCha and Vivienne Pinay.

Get a sneak peek of the new queens below – and try not to gag on all the eleganza.


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EU drug regulator OKs Novartis' meningitis B shot

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

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

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

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

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

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

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Wall Street set to climb on optimism over budget talks

NEW YORK (Reuters) - Wall Street was set to rise sharply at the start of a holiday-shortened week on Monday on signs of progress in talks to resolve the fiscal crunch.


Leading Democratic and Republican lawmakers expressed confidence on Sunday that they could reach a deal to avert the "fiscal cliff" even as they laid down markers on raising taxes and spending cuts that may make any agreement more difficult. European stocks also reacted by rising 1/2 percent a 3 1/2-month low.


Democratic Senator Dick Durbin said on CNN, "What I hear is a perceptible change in rhetoric from the other side."


Also appearing on CNN, Republican Representative Tom Price said, "Every member of our caucus appreciates that this fiscal crisis, this challenge that we have, is ever closer." Opinion polls show that Republicans would shoulder more of the blame if the country goes over the fiscal cliff.


"A deal that doesn't face healthcare spending head on and also raises taxes of substance with economic growth mediocre is not a good deal. This said, the markets will celebrate any deal in the short term but will likely deal with the economic consequences in 2013," said Peter Boockvar, managing director at Miller Tabak & Co in New York.


S&P 500 futures rose 12.9 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 101 points and Nasdaq 100 futures rose 25.5 points.


U.S. financial markets will be closed on Thursday for the Thanksgiving holiday.


UBS introduced a cautious outlook with a year-end 2013 price target on the S&P 500 at 1,425.


"While the 'fiscal cliff' may be avoided, we believe that the most difficult policy issues will be pushed into the future, constraining earnings growth and stock multiples."


"Our cautious stance is predicated upon a belief that a number of macro uncertainties — the most important of which stem from long-term U.S. fiscal imbalances — will hamper earnings growth and constrain valuations in 2013," said Jonathan Golub, strategist at UBS in New York.


Investors awaited data on existing-home sales for October, due at 10 a.m. (1500 GMT). Economists in a Reuters survey forecast an annualized 4.75 million units, a repeat of the September total. Investors also eyed the November NAHB housing market index, also at 10 a.m. (1500 GMT).


Shares of Lowe's Cos Inc , the world's No. 2 home improvement chain, rose 5.5 percent to $33.73 in premarket trade on Monday after the company reported higher-than-expected quarterly profit and raised its full-year sales forecast.


Networking equipment company Cisco Systems Inc said it will buy privately held cloud networking company Meraki for $1.2 billion in cash as part of its cloud and networking strategy. Cisco shares were up 1.3 percent at $18.22 in premarket trade.


General Motors Co and its local Chinese partners, intensifying competition in China in the no-frills car market, on Sunday formally opened another plant for its low-cost Baojun brand. GM shares were up 1.5 percent at $24.20 in premarket trade.


Wal-Mart Stores Inc is taking its first legal step to stop months of protests and rallies outside Walmart stores, targeting the union that it says is behind such actions.


Citigroup Inc has agreed to pay $360 million to the brokerage estate of Lehman Brothers to resolve a dispute over $1 billion in collateral that the investment bank was forced to post in the days leading up to its bankruptcy in 2008. [ID:nnL4N08Z125] Citigroup shares were up 1.5 percent at $35.49 in premarket trade.


Hope that U.S. politicians would find common ground to steer clear of the "fiscal cliff" boosted stocks on Friday, though the gains were not enough to offset the week's losses.


(Reporting by Angela Moon; Editing by Kenneth Barry)


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Israel Warns of ‘Expansion’ as Attack Widens to Media Sites


Mohammed Saber/European Pressphoto Agency


Two children look through the rubble of their house after an airstrike in Beit Lahiya, Gaza, on Sunday.







GAZA CITY — Israel pressed its assault on the Gaza Strip for a fifth day on Sunday, deploying warplanes and naval vessels to pummel the coastal enclave and striking at two media offices here as Prime Minister Benjamin Netanyahu warned of a possible “significant” expansion in the onslaught and President Obama defended Israel’s right to protect itself.




Speaking in Bangkok, Mr. Obama said Israel was within its rights to respond to an attack on its territory.


“There’s no country on earth that would tolerate missiles raining down on its citizens from outside its borders,” Mr. Obama said in his first public comments since the violence broke out. “We are fully supportive of Israel’s right to defend itself.”


The president also said that efforts were under way to address Israel’s security concerns and end the violence. “We’re going to have to see what kind of progress we can make in the next 24, 36, 48 hours,” Mr. Obama said.


Even as the diplomacy intensified on Sunday, the attacks continued in Gaza and Israel.


Mr. Netanyahu’s warning came as militants in Gaza aimed at least one rocket at the Israeli heartland in Tel Aviv, one day after Israeli forces broadened the attack beyond military targets, bombing centers of government infrastructure including the four-story headquarters of the Hamas prime minister.


“We are exacting a heavy price from Hamas and the terrorist organizations and the Israel Defense Forces are prepared for a significant expansion of the operation,” Mr. Netanyahu told his cabinet at its routine Sunday meeting, referring directly to the call-up of thousands of reservists that, coupled with a massing of armor on the Gaza border, many analysts have interpreted as preparations for a possible invasion.


“I appreciate the rapid and impressive mobilization of the reservists who have come from all over the country and turned out for the mission at hand,” Mr. Netanyahu said. “Reservist and conscript soldiers are ready for any order they might receive.”


His remarks were reported shortly after a battery of Israel’s “Iron Dome” defense shield, hastily deployed near Tel Aviv on Saturday in response to the threat of longer-range rockets, intercepted at least one projectile aimed at the city on Sunday, Israeli officials said. The episode was the latest of several salvos that have illustrated Hamas’s ability to extend the reach of its rocket attacks.


Since Wednesday, when the latest escalation of the conflict began, Iron Dome has knocked 245 rockets out of the sky, the military said on Saturday, while 500 have struck Israel.


The American-financed system is designed to intercept only rockets streaking toward towns and cities and to ignore those likely to strike open ground. But on Sunday a rocket fired from Gaza plowed through the roof of an apartment building in the southern Israeli city of Ashkelon. There were no immediate reports of casualties there.


In Gaza City, the crash of explosions pierced the quiet several times throughout the early morning.


Hamas health officials said the Palestinian death toll rose to 53 by early Sunday afternoon, the latest victim a 52-year-old woman whose house in the eastern part of Gaza City was bombed around lunchtime.


A few hours earlier, a Hamas militant was killed and seven people were wounded in an attack on the Beach Refugee Camp, where Ismail Haniyeh, the Hamas prime minister, has a home. Those killed on Sunday included 3 children aged between one and 5, the health officials said.


In Israel, 3 civilians have died and 63 have been injured. Four soldiers were also wounded on Saturday.


The onslaught continued despite talks in Cairo that Egyptian President Mohamed Morsi said Saturday night he thought could soon result in a cease-fire. Prime Minister Netanyahu said he would consider a comprehensive cease-fire if the launches from Gaza stop.


Saturday’s attack on Mr. Haniyeh’s office, one of several on government installations, came a day after he hosted his Egyptian counterpart in the same building, a sign of Hamas’s new legitimacy in a radically redrawn Arab world.


That stature was underscored Saturday by a visit to Gaza from the Tunisian foreign minister and the rapid convergence in Cairo of two Hamas allies, the prime minister of Turkey and the crown prince of Qatar, for talks with the Egyptian president and the chairman of Hamas on a possible cease-fire.


A delegation of Arab ministers plans to visit Gaza on Tuesday, Reuters reported, while Ban Ki-moon, the United Nations Secretary General, is expected in Cairo on Monday.


But Mark Regev, a spokesman for Mr. Netanyahu, denied reports on Saturday that a truce was imminent.


President Obama said Sunday that he had spoken several times with Mr. Netanyahu in Israel, Mr. Morsi in Egypt and Prime Minister Recep Tayyip Erdogan of Turkey in hopes of finding a way to address Israel’s security concerns without ramping up military operations further.


“We are actively working with all the parties in the region to see if we can end those missiles being fired without further escalation of violence in the region,” he said.


Jodi Rudoren reported from Gaza City, Isabel Kershner from Jerusalem and Alan Cowell from London. Reporting was contributed by Fares Akram and Tyler Hicks from the Gaza Strip, Carol Sutherland and Iritz Pazner Garshowitz from Jerusalem, Peter Baker in Bangkok, and David D. Kirkpatrick and Mayy El Sheikh from Cairo.



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Taylor Swift and One Direction's Harry Styles: Are They Dating?















11/17/2012 at 10:40 PM EST







Taylor Swift and Harry Styles


Janet Mayer/Splash News Online; Don Arnold/Wireimage


Taylor Swift appears to be taking her love life in a new direction.

The "Never Ever Getting Back Together" singer is seemingly taking her lyrics to heart as she moves on from recent ex, Conor Kennedy, and enjoys the company of One Direction hottie Harry Styles.

"I had to literally do a double-take," an onlooker tells PEOPLE of finding Styles, 18, with Swift, 22, on the set of The X Factor Thursday morning.

Styles was on hand to watch Swift rehearse the debut of "State of Grace," which she performed later that night on the Fox reality show.

"He was smiling at her while she rehearsed. When she was done he jumped up on stage, picked her up, put her over his shoulder and carried her off stage," the onlooker says. "The whole crew was really surprised."

The young singers were also spotted by X Factor host Mario Lopez, who says he was slapped on the back by Styles during Swift's rehearsal.

"I said, 'What are you doing here,' " Lopez said on his 104.3 MY FM radio show Friday. "And he sort of [pointed] toward Taylor."

Lopez went on to say he later saw the two "hand-in-hand."

A telling sign of the budding relationship may have been a look Styles shared with his bandmate Niall Horan a week earlier after Horan told PEOPLE his favorite song of 2012 was Swift's "Never Ever Getting Back Together."

When asked if he would ever date Swift, Horan gave a small laugh, looked at Styles and answered with a succinct, "no."

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EU drug regulator OKs Novartis' meningitis B shot

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

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

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

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

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

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

Read More..

Wall Street Week Ahead: Going off "cliff" with a bungee cord

NEW YORK (Reuters) - The 1987 crash. The Y2K bug. The debt ceiling debacle of 2011.


All these events, in the end, turned out to be buying opportunities for stocks. So will the "fiscal cliff," some investors say as they watch favorite stocks tumble during the political give-and-take happening in Washington.


The first round of talks aimed at avoiding the "fiscal cliff" caused a temporary rise in equities on Friday, signaling Wall Street's recent declines could be a buying opportunity. The gains were small and sentiment remains weak, but it suggests hope for market bulls.


Though shares ended moderately higher on Friday, it was not enough to offset losses for the week. The S&P was down 1.5 percent, while both the Dow and the Nasdaq fell 1.8 percent.


The S&P 500 is down more than 5 percent in the seven sessions that followed President Barack Obama's re-election. Uncertainty arose as attention turned to Washington's task of dealing with mandated tax hikes and spending cuts that could take the U.S. economy back into recession.


Some see the market's move as an overreaction to hyperbolic headlines about policy gridlock in Washington, believing stocks may start to rebound in what should be a quiet few days ahead of the Thanksgiving holiday next Thursday.


"It just doesn't seem to make any sense that you suddenly wake up the day after the election and realize we've got a fiscal cliff," said Krishna Kumar, partner at New York hedge fund Goose Hollow Alpha Advisors.


Not long ago the S&P was on target for its second-best year in the last 10, riding a 17 percent advance in 2012. That's been halved to about 8 percent, which isn't bad but disappointing compared with just a month ago.


Investors have been selling the year's winners. Apple is down 25 percent from its peak above $700. General Electric is down 14 percent; Google has lost 16 percent. Overall, the stocks that make up the top 10 percent of performers in the month prior to Election Day have been the worst performers since, according to Bespoke Investment Group of Harrison, New York.


"I think it's a good opportunity to be long stocks at these levels," said Kumar.


Hikes on capital gains and dividend taxes are on the line, and Obama has dug in his heels on what he sees as a mandate to make the tax code more progressive.


He seems to have the upper hand in dealings with Congress because Republican lawmakers don't want to see tax rates increase, which is what will happen if no solution is found by the beginning of 2013. Republicans don't want to take the blame for driving the economy over the cliff.


The current crisis is similar to last year's fight to raise the U.S. debt ceiling, which led to the downgrade of the United States' top credit rating in early August 2011.


During the dealings, the S&P 500 lost 18.8 percent between its peak in July 2011 and its bottom in August. As the market slid, the political standoff badly hurt investors' confidence in Washington, setting off a spike in volatility.


In the end a deal was announced that raised the ceiling and put off longer-term fiscal decisions until January 1, 2013, setting the stage for today's "fiscal cliff" crisis.


After staying flat through September 2011, the S&P 500 jumped 31 percent between its October low and the end of March.


BUY THE DIP?


Gridlock in Washington and all that could possibly go wrong with the economy if a deal is not reached have grabbed the headlines, but the negotiations leave room for stock market gains. Congressional leaders said Friday they will work through the Thanksgiving holiday recess to find a solution.


"The debate over how to solve (the fiscal cliff) may be more productive than is commonly recognized," said Brad Lipsig, senior portfolio manager at UBS Financial Services in New York.


"The U.S. is facing a major debt overhang, and serious steps toward addressing it might ultimately be viewed as a positive for future growth," he said. "The market may recognize this and, after a time of hand wringing, recover from the concerns with a renewed sense of optimism."


The recent selling took the S&P 500's relative strength index - a technical measure of internal strength - below 30 this week, indicating the benchmark is oversold and due for a rebound.


The RSI in four of the 10 S&P sectors - utilities, telecoms, consumer staples and technology - is below 30 and the highest RSI reading, for the consumer discretionary sector, is below 40, suggesting a bounce is in store.


"What I want to do is what we did during the decline following the budget negotiations in the summer of 2011: The lower the stock market goes, the more I want to own stock," said Brian Reynolds, chief market strategist at New York-based Rosenblatt Securities.


"If we go off the cliff it will be with a bungee cord attached," he said.


KEEP CALM AND HEDGE


Volatility is expected to rise through the end of November and to spike in late December if no agreement on the fiscal cliff is reached in Congress. Alongside comes opportunity for those with high risk tolerance.


"Recently, volatility has increased in the market overall. You can't really pick it up in the VIX yet, but I think as we get through November, I think you're likely to see the VIX be at a relatively higher level," said Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston.


In 2011, the VIX averaged 19.2 in July and 35 in August. So far this month the average is 17.8 and it is expected to spike if negotiations on the cliff drag into late next month.


"Looking at the range of possibilities, I would say any of them would be better than sitting here waiting. I would even put going off the fiscal cliff in that category," said Jill Cuniff, president of Seattle-based Edge Asset Management Inc, which manages about $20 billion.


"But we don't believe Congress will let that happen; there's going to be some middle ground here."


(Reporting by Rodrigo Campos and Jonathan Spincer, additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)


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