Vera Wang Reveals Details of Michelle Kwan's Wedding Dress

By Cynthia Wang

01/21/2013 at 07:00 PM EST

Michelle Kwan and Clay Pell

Courtesy of Caitlin Maloney

Although she was a singles figure skater throughout her successful career, Michelle Kwan did have one steadfast partner on the ice – fashion designer Vera Wang.

"I wore so many skating dresses designed by her, whole skating shows and everything," Kwan, 32, tells PEOPLE. "I have a long relationship with her."

And that made picking a wedding dress designer a fairly easy decision.

For Kwan's Rhode Island nuptials on Jan. 19 to Clay Pell, 31, Wang put plenty of consideration into her creation.

"She is marrying someone whose family has a political history, and Michelle is living and working in Washington, D.C.," the designer says. "[The dress] had to have a certain dignity and a certain classicism, and I think it was a lot about a new way of looking at tradition."

So Wang created an ivory, strapless mermaid gown for Kwan, made with layers of silk organza and featuring lace appliqué.

"The fact that it's got an inordinate amount of handwork in terms of lace is really a tribute to the art of hand-piecing lace," Wang says. "There is a princess-slash-queenly level of sophistication and quiet without sacrificing a lot of detail."

To complement the formal wedding gown, Kwan asked Wang what she thought of designing a second dress for the reception. "She said, 'Yeah, I got it,' " Kwan says. "She said, 'First dance, yes, and then you've got to change into something else.' "

Her history with the skater was not lost on Wang. "I'm really very honored and very thrilled that a, Michelle has found the love of her life and b, that I am the one to dress her for that special day just as I did for world championships, national championships, and Olympics," she said. "It's just the ongoing saga of our friendship."

For more on Kwan's wedding, including photos and details from the ceremony, pick up a copy of next week's PEOPLE, on newsstands Friday

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Asian shares edge down, yen eases as BoJ meeting eyed

TOKYO (Reuters) - Asian shares edged lower on Monday, taking a breather after hitting multimonth highs, while the yen touched a new low ahead of the outcome of the Bank of Japan policy meeting this week amid expectations for bold monetary easing measures.

The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> was down 0.1 percent after closing at a 17-1/2-month high on Friday.

Australian shares <.axjo> inched up 0.1 percent while South Korean shares <.ks11> slipped 0.6 percent after opening nearly flat.

The focus in Japan was on the BoJ's policy meeting, with Tokyo's benchmark Nikkei average <.n225> sliding 1.1 percent after opening up 0.3 percent. The Nikkei surged 2.9 percent for its biggest daily gain in 22 months on Friday after the yen resumed its weakening track, posting a 10th straight week of gains, its longest since 1987. <.t/>

Early on Monday, the dollar touched a fresh 2-1/2-year high of 90.25 yen, and the euro rose to a high of 120.27 yen, near its peak since May 2011 of 120.73 hit on Friday.

The Bank of Japan starts its two-day policy meeting on Monday under growing political pressure to pursue bolder measures to beat deflation, with speculation ranging from an open-ended commitment to buy assets until a 2 percent inflation target is achieved to simply boosting its asset buying schemes.

Friday's data showed while currency speculators slightly cut their bets against the yen in the week to Jan 15, they remained overwhelmingly negative on the currency.

"We expect the door for further easing will likely be left open irrespective of the outcome of BoJ policy meeting, either explicitly by the BoJ or implicitly through government's plan to nominate doves to replace the governor and deputy governors," Barclays Capital said in a note to clients.

The steady showing in Asia equities followed a rise in global equities late last week when positive U.S. and Chinese data and signs Washington may avert a fiscal crisis lifted sentiment.

Republicans said the House will consider a bill to raise the U.S. debt ceiling enough to allow the country to pay its bills for another three months. The strategy would buy time for the Democratic-controlled Senate to pass a budget plan that shrinks the federal deficit.

"Another sharp decline in market uncertainty with respect to the US fiscal negotiations provided support to risky assets at the end of last week," said Barclays Capital in a separate research note.

The Dow Jones industrial average <.dji> and the Standard & Poor's 500 Index <.spx> ended Friday at five-year highs on a solid start to the quarterly earnings season. U.S. markets are closed on Monday for the Martin Luther King Jr. holiday.

RISK APPETITE RETURNING

EPFR Global said on Friday EPFR Global-tracked Emerging Markets Bond Funds hit a 50-week high in the second week of January as investors saw some value in the riskier fixed income asset classes. Its Emerging Markets Equity Funds outdid Developed Markets Equity Funds for the sixth time in the past seven weeks, with diversified Global Emerging Markets Equity Funds and funds linked to China favored.

Last year, when several Asian stock markets rallied, many bigger hedge funds failed to beat benchmark returns but nimbler, small to medium-sized funds fared better.

Oil prices rose on Friday on supply disruption fears reinforced by the Islamist militant attack and hostage-taking at a gas plant in Algeria, a member of the Organization of Petroleum Exporting Countries.

U.S. crude futures eased 0.2 percent to $95.36 a barrel early on Monday.

(Additional reporting by Ian Chua in Sydney; Editing by Shri Navaratnam)

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Algeria toll rises as attack claimed for al Qaeda

ALGIERS, Algeria (Reuters) - The death toll has risen to at least 48 hostages killed during a four-day siege at a gas plant deep in the Sahara as a veteran Islamist fighter claimed responsibility on behalf of al Qaeda for the attack.

Prime Minister Abdelmalek Sellal is expected to give details at a Monday news conference about one of the worst international hostage crises in decades, which left American, British, French, Japanese, Norwegian and Romanian workers dead or missing.

A security source said on Sunday Algerian troops had found the bodies of 25 hostages, raising the number of militants and their captives killed to at least 80. He said six militants were captured alive and troops were still searching for others.

One-eyed veteran Islamist fighter Mokhtar Belmokhtar claimed responsibility on Sunday for the attack on behalf of al Qaeda.

"We in al Qaeda announce this blessed operation," he said in a video, according to Sahara Media, a regional website. He said about 40 attackers participated in the raid, roughly matching the government's figures for fighters killed and captured.

The fighters swooped out of the desert and seized the base on Wednesday, capturing a plant that produces 10 percent of Algeria's natural gas exports, as well as a nearby residential barracks.

They demanded an end to French air strikes against Islamist fighters in neighboring Mali that had begun five days earlier. However, U.S. and European officials doubt such a complex raid could have been organized quickly enough to have been conceived as a direct response to the French military intervention.

The siege turned bloody on Thursday when the Algerian army opened fire saying fighters were trying to escape with their prisoners. Survivors said Algerian forces blasted several trucks in a convoy carrying both hostages and their captors.

Nearly 700 Algerian workers and more than 100 foreigners escaped, mainly on Thursday when the fighters were driven from the residential barracks. Some captors remained holed up in the industrial complex until Saturday when they were overrun.

The bloodshed has strained Algeria's relations with its Western allies, some of whom have complained about being left in the dark while the decision to storm the compound was being taken. Nevertheless, Britain and France both defended the Algerian military action.

"It's easy to say that this or that should have been done. The Algerian authorities took a decision and the toll is very high but I am a bit bothered ... when the impression is given that the Algerians are open to question," said French Foreign Minister Laurent Fabius. "They had to deal with terrorists."

British Prime Minister David Cameron said in a televised statement: "Of course people will ask questions about the Algerian response to these events, but I would just say that the responsibility for these deaths lies squarely with the terrorists who launched this vicious and cowardly attack.

"We should recognize all that the Algerians have done to work with us and to help and coordinate with us. I'd like to thank them for that. We should also recognize that the Algerians too have seen lives lost among their soldiers."

Algeria had given a preliminary death toll of 55 people killed - 23 hostages and 32 militants - on Saturday and said it would rise as more bodies were found.

The security source said that toll did not include the bodies of 25 hostages found on Sunday, which meant the total number of captives killed - foreign and local - was at least 48. The search was not over, and more could yet be found, he said.

Among foreigners confirmed dead by their home countries were three Britons, one American and two Romanians. The missing include at least 10 Japanese, five Norwegians, three other Britons, and a British resident. The security source said at least one Frenchman was also among the dead.

LAST WORDS?

Alan Wright, now safe at home in Scotland, said he had escaped with a group of Algerian and foreign workers after hiding for a day and a night. While hiding inside the compound, he managed to call his wife at home with their two daughters.

"She asked if I wanted to speak to Imogen and Esme, and I couldn't because I thought, I don't want my last ever words to be in a crackly satellite phone, telling a lie, saying you're OK when you're far from OK," he recalled to Sky News.

Despite the incident, Algeria is determined to press on with its energy industry. Oil Minister Youcef Yousfi visited the site and said physical damage was minor, state news service APS reported. The plant would start back up in two days, he said.

The Islamists' assault has tested Algeria's relations with the outside world and exposed the vulnerability of multinational oil operations in the Sahara.

Algeria, scarred by the civil war with Islamist insurgents in the 1990s which claimed 200,000 lives, insisted from the start of the crisis there would be no negotiation in the face of terrorism.

France especially needs close cooperation from Algeria to crush Islamist rebels in northern Mali.

(Additional reporting by Balazs Koranyi in Oslo, Estelle Shirbon and David Alexander in London, Brian Love in Paris and Daniel Flynn in Dakar; Writing by Peter Graff; Editing by Sophie Hares and Myra MacDonald)

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Mobile revolution in Myanmar is on the cards, but too slow for many

YANGON (Reuters) – Myanmar is on the cusp of a mobile revolution. Only it’s happening way too slowly for many locals.

Last week the government invited expressions of interest for two mobile phone licenses – a first step towards increasing mobile penetration from its current 5-10 percent to 80 percent in three years. That would lift it off the bottom of the world’s ladder of mobile use and put it on a par with neighbors like Bangladesh.

In the meantime, users are chafing at the pace and price of adding connections.

A year ago the informal technology conference Barcamp Yangon was buzzing with rumours of a SIM card that would cost about $ 6 – or 1 percent of its actual price at the time.

A year on, Barcamp is back but the talk is much less dramatic: whether the state-owned operator might this week release SIM cards costing between around $ 100. That would still be half of what the last tranche sold for, but it still leaves many unhappy.

“The clock is ticking,” says Ravi Chhabra, a local technology entrepreneur. “People are frustrated. There is lots of speculation and this creates anxiety.”

Nobody questions the need for more connections, and foreign operators have salivated at what amounts to one of the last major untapped markets.

President Thein Sein has made it clear that mobile telephony is a cornerstone of his policy, and has also vowed that mobile communications would be cheap – a promise he reiterated to a conference of donors on Saturday.

Still, getting it done is not proving easy.

The notice inviting expressions of interest in two licenses was a welcome sign that things were moving, but IT experts and sources close to the communications ministry said the timing was surprising, given that the revised telecommunications law which would define the nature of any investment had yet to be passed by the parliament.

The government said in an appendix to the notice that a new draft of the law – which had been quietly withdrawn last year after criticism about its contents – had been submitted to parliament and was expected to be passed by June.

“After the law is finished then there should be a clear policy before any expression of interest is sought,” said Zaw Min Oo, secretary general of the Myanmar Computer Federation.

On top of that, the next day Telecommunications Minister Thein Tun, who had overall responsibility for mobile licensing, resigned. No reason has been given, and officials declined to comment.

“BIT OF AN EARTHQUAKE”

Sources close to the ministry say his departure had been rumored for several months, but the timing was unexpected, and raises questions about what might happen next.

“It’s been a bit of an earthquake; now we need to sit back and watch, see which buildings fall down,” said one source close to the ministry who, like others interviewed, declined to be named for fear of jeopardizing business relationships with the ministry and its companies.

Not everyone is concerned. Romain Caillaud, a Yangon-based consultant with Vriens and Partners, says both the notice and the resignation “should accelerate the liberalization and growth of the telecom sector.”

Major foreign telecommunications companies are likely to submit expressions of interest ahead of the deadline of January 25, say experts.

Alessio Polastri, a lawyer who represents several such firms in Myanmar, says whatever delay in the process there has been will benefit the government.

“It’s almost an asset in that initial concerns about political stability have disappeared, so, most likely, not only more telecommunications companies will take part in the tender process but also the winners shall be more confident in committing higher investment,” he said.

More thorny for the government, however, may be assuaging local interests. By inviting expressions of interest for two licenses, the government appeared to be committing itself to offering four licenses – two for foreign companies, and two for local ones: state-owned Myanmar Posts and Telecommunications, or MPT, and Yatanarpon Teleport, an internet service provider which is 51 percent owned by MPT.

Some local businesspeople are questioning the wisdom of this, saying that MPT should not effectively own more than one license.

CHEAP SIM CARDS

Dozens of local IT entrepreneurs last November formed the Myanmar Technologies and Investment Corporation to bid for a license, and are currently lobbying parliament to merge the two local licenses, giving them a better chance of either winning one or setting up with a partner.

“So far the ministries have come back with positive responses and encouraged us,” said Thaung Su Nyein, who is also managing director of local media and IT company Information Matrix. “Even if we don’t get this license we’ve been led to understand we’ll get other business licenses.”

But more pressing is growing public frustration at the lack of progress on the ground.

Last year’s talk of cheaper SIM cards was fuelled partly by MPT’s decision to press ahead with expanding its own network, promising to add 30 million GSM connections by 2016 – financed by allowing contractors building the towers to sell a certain number of SIM cards.

Since then, the rumor mill has been alive with chatter about when new tranches of SIM cards might be available, and how much they might cost. A few weeks before the tech meet up, a previously obscure businessman held a press conference at which he promised SIM cards costing only 5,000 kyat (around $ 6).

While the promise went unfulfilled and the businessman disappeared from view, it started a movement of sorts: stickers appeared demanding 5,000 kyat SIM cards and several people were arrested in small demonstrations, according to exile media.

Those hopes have been dashed, but the shortfall of SIM cards ensures interest in a steady stream of sometimes conflicting reports about another imminent sale. One local media report quoted officials as saying more than 1.5 million SIM cards would be sold on Monday for 100,000 kyat each, or about $ 112.

That would still be out of the reach of most people in Myanmar.

“People want to see faster progress,” said a source close to the ministry. “At least half the country want a phone, and they want it soon.”

(Editing by Daniel Magnowski)

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Selena Gomez vs. Justin Bieber: Who Sang It Better?

By Alison Schwartz

01/20/2013 at 06:00 PM EST

Selena Gomez and Justin Bieber

Bryan Bedder/Getty; Steve Mack/FilmMagic

Selena Gomez didn't officially comment on the status of her relationship with on-again, off-again beau Justin Bieber at her New York City acoustic concert benefit for UNICEF. She didn't have to: her song choices seemed to do all the talking.

Along with a cover of industry pal Taylor Swift's "I Knew You Were Trouble," she also performed a rousing rendition of Justin Timberlake's ultimate breakup anthem: "Cry Me a River."

"I’ve kind of been through a lot these past couple of months, and it’s been really interesting and fun at the same time – and weird and sad, but cool," Gomez, 20, told the audience gathered Saturday night before launching into the 2002 pop single. "This song has helped me through a lot, and if anybody knows 'N Sync or, you know, some J.T., you’re gonna know what I’m talking about. But this song definitely speaks to me."

Of course, true Be-liebers know who made the first move: At his November concert in Boston, Bieber, 18, grabbed his acoustic guitar for a stripped-down version of Timberlake's hit, which takes on the feeling of finding out a partner has been cheating. (According to Vulture, he also covered the song in 2008.)

Watch the former couple try their hands at Timberlake's tune, and tell us in the comments below: Who deserves a standing ovation?

• Reporting by GABRIELLE OLYA

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Flu season fuels debate over paid sick time laws

NEW YORK (AP) — Sniffling, groggy and afraid she had caught the flu, Diana Zavala dragged herself in to work anyway for a day she felt she couldn't afford to miss.

A school speech therapist who works as an independent contractor, she doesn't have paid sick days. So the mother of two reported to work and hoped for the best — and was aching, shivering and coughing by the end of the day. She stayed home the next day, then loaded up on medicine and returned to work.

"It's a balancing act" between physical health and financial well-being, she said.

An unusually early and vigorous flu season is drawing attention to a cause that has scored victories but also hit roadblocks in recent years: mandatory paid sick leave for a third of civilian workers — more than 40 million people — who don't have it.

Supporters and opponents are particularly watching New York City, where lawmakers are weighing a sick leave proposal amid a competitive mayoral race.

Pointing to a flu outbreak that the governor has called a public health emergency, dozens of doctors, nurses, lawmakers and activists — some in surgical masks — rallied Friday on the City Hall steps to call for passage of the measure, which has awaited a City Council vote for nearly three years. Two likely mayoral contenders have also pressed the point.

The flu spike is making people more aware of the argument for sick pay, said Ellen Bravo, executive director of Family Values at Work, which promotes paid sick time initiatives around the country. "There's people who say, 'OK, I get it — you don't want your server coughing on your food,'" she said.

Advocates have cast paid sick time as both a workforce issue akin to parental leave and "living wage" laws, and a public health priority.

But to some business owners, paid sick leave is an impractical and unfair burden for small operations. Critics also say the timing is bad, given the choppy economy and the hardships inflicted by Superstorm Sandy.

Michael Sinensky, an owner of seven bars and restaurants around the city, was against the sick time proposal before Sandy. And after the storm shut down four of his restaurants for days or weeks, costing hundreds of thousands of dollars that his insurers have yet to pay, "we're in survival mode."

"We're at the point, right now, where we cannot afford additional social initiatives," said Sinensky, whose roughly 500 employees switch shifts if they can't work, an arrangement that some restaurateurs say benefits workers because paid sick time wouldn't include tips.

Employees without sick days are more likely to go to work with a contagious illness, send an ill child to school or day care and use hospital emergency rooms for care, according to a 2010 survey by the University of Chicago's National Opinion Research Center. A 2011 study in the American Journal of Public Health estimated that a lack of sick time helped spread 5 million cases of flu-like illness during the 2009 swine flu outbreak.

To be sure, many employees entitled to sick time go to work ill anyway, out of dedication or at least a desire to project it. But the work-through-it ethic is shifting somewhat amid growing awareness about spreading sickness.

"Right now, where companies' incentives lie is butting right up against this concern over people coming into the workplace, infecting others and bringing productivity of a whole company down," said John A. Challenger, CEO of employer consulting firm Challenger, Gray & Christmas.

Paid sick day requirements are often popular in polls, but only four places have them: San Francisco, Seattle, Washington, D.C., and the state of Connecticut. The specific provisions vary.

Milwaukee voters approved a sick time requirement in 2008, but the state Legislature passed a law blocking it. Philadelphia's mayor vetoed a sick leave measure in 2011; lawmakers have since instituted a sick time requirement for businesses with city contracts. Voters rejected a paid sick day measure in Denver in 2011.

In New York, City Councilwoman Gale Brewer's proposal would require up to five paid sick days a year at businesses with at least five employees. It wouldn't include independent contractors, such as Zavala, who supports the idea nonetheless.

The idea boasts such supporters as feminist Gloria Steinem and "Sex and the City" actress Cynthia Nixon, as well as a majority of City Council members and a coalition of unions, women's groups and public health advocates. But it also faces influential opponents, including business groups, Mayor Michael Bloomberg and City Council Speaker Christine Quinn, who has virtually complete control over what matters come to a vote.

Quinn, who is expected to run for mayor, said she considers paid sick leave a worthy goal but doesn't think it would be wise to implement it in a sluggish economy. Two of her likely opponents, Public Advocate Bill de Blasio and Comptroller John Liu, have reiterated calls for paid sick leave in light of the flu season.

While the debate plays out, Emilio Palaguachi is recovering from the flu and looking for a job. The father of four was abruptly fired without explanation earlier this month from his job at a deli after taking a day off to go to a doctor, he said. His former employer couldn't be reached by telephone.

"I needed work," Palaguachi said after Friday's City Hall rally, but "I needed to see the doctor because I'm sick."

___

Associated Press writer Susan Haigh in Hartford, Conn., contributed to this report.

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Follow Jennifer Peltz at http://twitter.com/jennpeltz

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Wall Street Week Ahead: Earnings, money flows to push stocks higher

NEW YORK (Reuters) - With earnings momentum on the rise, the S&P 500 seems to have few hurdles ahead as it continues to power higher, its all-time high a not-so-distant goal.

The U.S. equity benchmark closed the week at a fresh five-year high on strong housing and labor market data and a string of earnings that beat lowered expectations.

Sector indexes in transportation <.djt>, banks <.bkx> and housing <.hgx> this week hit historic or multiyear highs as well.

Michael Yoshikami, chief executive at Destination Wealth Management in Walnut Creek, California, said the key earnings to watch for next week will come from cyclical companies. United Technologies reports on Wednesday while Honeywell is due to report Friday.

"Those kind of numbers will tell you the trajectory the economy is taking," Yoshikami said.

Major technology companies also report next week, but the bar for the sector has been lowered even further.

Chipmakers like Advanced Micro Devices , which is due Tuesday, are expected to underperform as PC sales shrink. AMD shares fell more than 10 percent Friday after disappointing results from its larger competitor, Intel . Still, a chipmaker sector index <.sox> posted its highest weekly close since last April.

Following a recent underperformance, an upside surprise from Apple on Wednesday could trigger a return to the stock from many investors who had abandoned ship.

Other major companies reporting next week include Google , IBM , Johnson & Johnson and DuPont on Tuesday, Microsoft and 3M on Thursday and Procter & Gamble on Friday.

CASH POURING IN, HOUSING DATA COULD HELP

Perhaps the strongest support for equities will come from the flow of cash from fixed income funds to stocks.

The recent piling into stock funds -- $11.3 billion in the past two weeks, the most since 2000 -- indicates a riskier approach to investing from retail investors looking for yield.

"From a yield perspective, a lot of stocks still yield a great deal of money and so it is very easy to see why money is pouring into the stock market," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.

"You are just not going to see people put a lot of money to work in a 10-year Treasury that yields 1.8 percent."

Housing stocks <.hgx>, already at a 5-1/2 year high, could get a further bump next week as investors eye data expected to support the market's perception that housing is the sluggish U.S. economy's bright spot.

Home resales are expected to have risen 0.6 percent in December, data is expected to show on Tuesday. Pending home sales contracts, which lead actual sales by a month or two, hit a 2-1/2 year high in November.

The new home sales report on Friday is expected to show a 2.1 percent increase.

The federal debt ceiling negotiations, a nagging worry for investors, seemed to be stuck on the back burner after House Republicans signaled they might support a short-term extension.

Equity markets, which tumbled in 2011 after the last round of talks pushed the United States close to a default, seem not to care much this time around.

The CBOE volatility index <.vix>, a gauge of market anxiety, closed Friday at its lowest since April 2007.

"I think the market is getting somewhat desensitized from political drama given, this seems to be happening over and over," said Destination Wealth Management's Yoshikami.

"It's something to keep in mind, but I don't think it's what you want to base your investing decisions on."

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

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Algeria ends desert siege with 23 hostages dead

ALGIERS/IN AMENAS, Algeria (Reuters) - Algerian troops ended a siege by Islamist militants at a gas plant in the Sahara desert where 23 hostages died, with a final assault which killed all the remaining hostage-takers.

Believed to be among the 32 dead militants was their leader, Abdul Rahman al-Nigeri, a Nigerien close to al Qaeda-linked commander Mokhtar Belmokhtar, presumed mastermind of the raid.

An Algerian interior ministry statement on the death toll gave no breakdown of the number of foreigners among hostages killed since the plant was seized before dawn on Wednesday.

Details are only slowly emerging on what happened during the siege, which marked a serious escalation of unrest in northwestern Africa, where French forces are ratcheting up a war against Islamist militants in neighboring Mali.

Algeria's interior ministry said on Saturday that 107 foreign hostages and 685 Algerian hostages had survived, but did not give a detailed breakdown of those who died.

"We feel a deep and growing unease ... we fear that over the next few days we will receive bad news," said Helge Lund, Chief Executive of Norway's Statoil, which ran the plant along with Britain's BP and Algeria's state oil company.

"People we have spoken to describe unbelievable, horrible experiences," he said.

British Prime Minister David Cameron said he feared for the lives of five British citizens unaccounted for at the gas plant near the town of In Amenas, which was also home to expatriate workers from Japanese engineering firm JGC Corp and others.

One American and one British citizen have been confirmed dead. Statoil said five of its workers, all Norwegian nationals, were still missing. Japanese and American workers are also unaccounted for.

The Islamists' attack has tested Algeria's relations with the outside world, exposed the vulnerability of multinational oil operations in the Sahara and pushed Islamist radicalism in northern Africa to center stage.

Some Western governments expressed frustration at not being informed of the Algerian authorities' plans to storm the complex. Algeria, scarred by a civil war with Islamist insurgents in the 1990s which claimed 200,000 lives, had insisted there would be no negotiation in the face of terrorism.

President Barack Obama said on Saturday the United States was seeking from Algerian authorities a fuller understanding of what took place, but said "the blame for this tragedy rests with the terrorists who carried it out."

Official sources had no immediate confirmation of newspaper reports suggesting some of the hostages may have been executed by their captors as the Algerian army closed in for the final assault on Saturday.

One source close to the crisis said 16 foreign hostages were freed, including two Americans and one Portuguese.

BP's chief executive Bob Dudley said on Saturday four of its 18 workers at the site were missing. The remaining 14 were safe.

PLANNED BEFORE FRENCH LANDED IN MALI

The attack on the heavily fortified gas compound was one of the most audacious in recent years and almost certainly planned long before French troops launched a military operation in Mali this month to stem an advance by Islamist fighters.

Hundreds of hostages escaped on Thursday when the army launched a rescue operation, but many hostages were killed.

Before the interior ministry released its provisional death toll, an Algerian security source said eight Algerians and at least seven foreigners were among the victims, including two Japanese, two Britons and a French national. One British citizen was killed when the gunmen seized the hostages on Wednesday.

The U.S. State Department said on Friday one American, Frederick Buttaccio, had died but gave no further details.

U.S. Defense Secretary Leon Panetta said nobody was going to attack the United States and get away with it.

"We have made a commitment that we're going to go after al Qaeda wherever they are and wherever they try to hide," he said during a visit to London. "We have done that obviously in Afghanistan, Pakistan, we've done it in Somalia, in Yemen and we will do it in North Africa as well."

Earlier on Saturday, Algerian special forces found 15 unidentified burned bodies at the plant, a source told Reuters.

Mauritanian news agencies identified the field commander of the group that attacked the plant as Nigeri, a fighter from one of the Arab tribes in Niger who had joined the Algerian Salafist Group for Preaching and Combat (GSPC) in early-2005.

That group eventually joined up with al Qaeda to become Al Qaeda in the Islamic Maghreb (AQIM). It and allied groups are the targets of the French military operation in Mali.

The news agencies described him as "one of the closest people" to Belmokhtar, who fought in Afghanistan and then in Algeria's civil war of the 1990s. Nigeri was known as a man for "difficult missions", having carried out attacks in Mauritania, Mali and Niger.

NO NEGOTIATION

Britain, Japan and other countries have expressed irritation that the Algerian army assault was ordered without consultation.

But French President Francois Hollande said the Algerian military's response seemed to have been the best option given that negotiation was not possible.

"When you have people taken hostage in such large number by terrorists with such cold determination and ready to kill those hostages - as they did - Algeria has an approach which to me, as I see it, is the most appropriate because there could be no negotiation," Hollande said.

The apparent ease with which the fighters swooped in from the dunes to take control of an important energy facility, which produces some 10 percent of the natural gas on which Algeria depends for its export income, has raised questions over the country's outwardly tough security measures.

Algerian officials said the attackers may have had inside help from among the hundreds of Algerians employed at the site.

Security in the half-dozen countries around the Sahara desert has long been a preoccupation of the West. Smugglers and militants have earned millions in ransom from kidnappings.

The most powerful Islamist groups operating in the Sahara were severely weakened by Algeria's secularist military in the civil war in the 1990s. But in the past two years the regional wing of al Qaeda gained fighters and arms as a result of the civil war in Libya, when arsenals were looted from Muammar Gaddafi's army.

(Additional reporting by Balazs Koranyi in Oslo, Estelle Shirbon and David Alexander in London, Brian Love in Paris; Writing by Giles Elgood and Myra MacDonald)

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Timeline: Kim Dotcom’s year, from Megaupload to Mega

AUCKLAND (Reuters) – Here are the milestones in the past year for Megaupload founder Kim Dotcom. Dotcom plans to launch on January 20 a new online file storage system, known as Mega.

January 20, 2012 – Seventy armed New Zealand police raid Megaupload founder Kim Dotcom’s mansion outside Auckland, acting on a request from the U.S. Federal Bureau of Investigation.

Dotcom and his colleagues Finn Batato, Mathias Ortmann and Bram van der Kolk are served extradition and search warrants, arrested, and taken into custody. As operators of the website, they are charged with online piracy, fraud and money laundering, and their computers and files are seized. Megaupload is closed down. The raid occurs on the same day U.S. lawmakers axe anti-piracy legislation following heavy public opposition.

February 22 – Dotcom is released on bail, but his movements are restricted and he is prohibited from leaving New Zealand. His bail conditions are eventually relaxed to allow him free movement within the country, while the millionaire is given some access to his frozen funds to pay his legal team and living costs.

June 28 – A New Zealand court rules that search warrants used by local police to raid the Dotcom mansion were illegal, and moves by the FBI to copy data from Dotcom’s computers to take offshore were also unlawful. The court’s action is seen by many as weakening the extradition case against Megaupload.

August 16 – U.S. efforts to extradite Dotcom are dealt another blow as a New Zealand court rules that prosecutors must show evidence to support charges of internet piracy and copyright breaches. The judge in the case says withholding evidence from Dotcom would give Washington a significant advantage in the extradition hearing. She also rules that the document used to order his extradition was illegal.

September 27 – New Zealand’s Prime Minister admits that the country’s spy agency illegally carried out surveillance on Dotcom, a resident of the country, despite a law which prohibits monitoring citizens and residents.

October 10 – A U.S. federal judge rules that the U.S. government’s criminal case against Megaupload will proceed, while leaving open the option of dismissing the case at a later date on grounds including the possibility that delays in proceedings have denied Megaupload to its right to due process.

January 20, 2013 – Dotcom is due to launch his new cyberlocker, Mega.co.nz, whose encryption system is designed to offer water-tight privacy protection of user files. The launch comes as Dotcom and his colleagues await their extradition hearing, which has been delayed until August.

(Reporting by Naomi Tajitsu)

Internet News Headlines – Yahoo! News

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Lilly drug chosen for Alzheimer's prevention study

Researchers have chosen an experimental drug by Eli Lilly & Co. for a large federally funded study testing whether it's possible to prevent Alzheimer's disease in older people at high risk of developing it.

The drug, called solanezumab (sol-ah-NAYZ-uh-mab), is designed to bind to and help clear the sticky deposits that clog patients' brains.

Earlier studies found it did not help people with moderate to severe Alzheimer's but it showed some promise against milder disease. Researchers think it might work better if given before symptoms start.

"The hope is we can catch people before they decline," which can come 10 years or more after plaques first show up in the brain, said Dr. Reisa Sperling, director of the Alzheimer's center at Brigham and Women's Hospital in Boston.

She will help lead the new study, which will involve 1,000 people ages 70 to 85 whose brain scans show plaque buildup but who do not yet have any symptoms of dementia. They will get monthly infusions of solanezumab or a dummy drug for three years. The main goal will be slowing the rate of cognitive decline. The study will be done at 50 sites in the U.S. and possibly more in Canada, Australia and Europe, Sperling said.

In October, researchers said combined results from two studies of solanezumab suggested it might modestly slow mental decline, especially in patients with mild disease. Taken separately, the studies missed their main goals of significantly slowing the mind-robbing disease or improving activities of daily living.

Those results were not considered good enough to win the drug approval. So in December, Lilly said it would start another large study of it this year to try to confirm the hopeful results seen patients with mild disease. That is separate from the federal study Sperling will head.

About 35 million people worldwide have dementia, and Alzheimer's is the most common type. In the U.S., about 5 million have Alzheimer's. Current medicines such as Aricept and Namenda just temporarily ease symptoms. There is no known cure.

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Online:

Alzheimer's info: http://www.alzheimers.gov

Alzheimer's Association: http://www.alz.org

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Follow Marilynn Marchione's coverage at http://twitter.com/MMarchioneAP

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