Pentagon to Allow Women in Combat

Defense Secretary Leon Panetta will lift a longstanding ban on women serving in combat, according to senior defense officials.

The services have until this May to come up with a plan to implement the change, according to a Defense Department official.

That means the changes could come into effect as early as May, though the services will have until January 2016 to complete the implementation of the changes.

"We certainly want to see this executed responsibly but in a reasonable time frame, so I would hope that this doesn't get dragged out," said former Marine Capt. Zoe Bedell, who joined a recent lawsuit aimed at getting women on the battlefield.

The military services also will have until January 2016 to seek waivers for certain jobs -- but those waivers will require a personal approval from the secretary of defense and will have to be based on rationales other than the direct combat exclusion rule.

The move to allow women in combat, first reported by the Associated Press, was not expected this week, although there has been a concerted effort by the Obama administration to further open up the armed forces to women.

The Joint Chiefs of Staff unanimously recommended in January to Secretary Panetta that the direct combat exclusion rule should be lifted.

"I can confirm media reports that the secretary and the chairman are expected to announce the lifting of the direct combat exclusion rule for women in the military," said a senior Defense Department official. "This policy change will initiate a process whereby the services will develop plans to implement this decision, which was made by the secretary of defense upon the recommendation of the Joint Chiefs of Staff."

Chairman of the Joint Chiefs Gen. Martin Dempsey sent Panetta a memo earlier this month entitled, "Women in Service Implementation Plan."

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"The time has come to rescind the direct combat exclusion rule for women and to eliminate all unnecessary gender-based barriers to service," the memo read.

"To implement these initiatives successfully and without sacrificing our warfighting capability or the trust of the American people, we will need time to get it right," he said in the memo, referring to the 2016 horizon.

Women have been officially prohibited from serving in combat since a 1994 rule that barred them from serving in ground combat units. That does not mean they have been immune from danger or from combat.

As Martha Raddatz reported in 2009, women have served in support positions on and off the frontlines in Iraq and Afghanistan, where war is waged on street corners and in markets, putting them at equal risk. Hundreds of thousands of women deployed with the military to those two war zones over the past decade. Hundreds have died.

READ MORE: Female Warriors Engage in Combat in Iraq, Afghanistan

"The reality of the battlefield has changed really since the Vietnam era to where it is today," said Rep. Tammy Duckworth, D-Ill., a former military helicopter pilot who lost both her legs in combat. "Those distinctions on what is combat and what is not really are falling aside. So I think that after having seen women, men, folks who -- cooks, clerks, truck drivers -- serve in combat conditions, the reality is women are already in combat."

Woman have been able to fly combat sorties since 1993. In 2010, the Navy allowed them on submarines. But lifting restrictions on service in frontline ground combat units will break a key barrier in the military.

READ MORE: Smooth Sailing for First Women to Serve on Navy Submarines

READ MORE: Female Fighter Pilot Breaks Gender Barriers

Panetta's decision will set a January 2016 deadline for the military service branches to argue that there are military roles that should remain closed to women.

In February 2012 the Defense Department opened up 14,500 positions to women that had previously been limited to men and lifted a rule that prohibited women from living with combat units.

Panetta also directed the services to examine ways to open more combat roles to women.

However, the ban on direct combat positions has remained in place.

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North Korea to target U.S. with nuclear, rocket tests

SEOUL (Reuters) - North Korea said on Thursday it would carry out further rocket launches and a nuclear test that would target the United States, dramatically stepping up its threats against a country it called its "sworn enemy".

The announcement by the country's top military body came a day after the U.N. Security Council agreed a U.S.-backed resolution to censure and sanction the country for a rocket launch in December that breached its bans.

"We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States," North Korea's National Defence Commission said, according to state news agency KCNA.

North Korea is believed by South Korea and other observers to be "technically ready" for a third nuclear test, and the decision to go ahead rests with leader Kim Jong-un who pressed ahead with the December rocket launch in defiance of the U.N. sanctions.

China, the one major diplomatic ally of the isolated and impoverished North, agreed to the U.S.-backed resolution and it also supported resolutions in 2006 and 2009 after Pyongyang's two earlier nuclear tests.

Thursday's statement by North Korea represents a huge challenge to Beijing as it undergoes a leadership transition with Xi Jinping due to take office in March.

North Korea has rejected proposals to restart the so-called six-party talks aimed at reining in its nuclear capacity.

"After all these years and numerous rounds of six-party talks we can see that China's influence over North Korea is actually very limited. All China can do is try to persuade them not to carry out their threats," said Cai Jian, an expert on Korea at Fudan University in Shanghai.

Analysts said the North could test as early as February as South Korea prepares to install a new, untested president or that it could choose to stage a nuclear explosion to coincide with former ruler Kim Jong-il's Feb 16 birthday.

"North Korea will have felt betrayed by China for agreeing to the latest U.N. resolution and they might be targeting (China) as well (with this statement)," said Lee Seung-yeol, senior research fellow at Ewha Institute of Unification Studies in Seoul.

U.S. URGES NO TEST

Washington urged North Korea not to proceed with a third test just as the North's statement was published on Thursday.

"Whether North Korea tests or not is up to North Korea," Glyn Davies, the top U.S. envoy for North Korean diplomacy, said in the South Korean capital of Seoul.

"We hope they don't do it. We call on them not to do it," Davies said after a meeting with South Korean officials. "This is not a moment to increase tensions on the Korean peninsula."

The North was banned from developing missile and nuclear technology under sanctions dating from its 2006 and 2009 nuclear tests.

A South Korean military official said the concern now is that Pyongyang could undertake a third nuclear test using highly enriched uranium for the first time, opening a second path to a bomb.

North Korea's 2006 nuclear test using plutonium produced a puny yield equivalent to one kiloton of TNT - compared with 13-18 kilotons for the Hiroshima bomb - and U.S. intelligence estimates put the 2009 test's yield at roughly two kilotons

North Korea is estimated to have enough fissile material for about a dozen plutonium warheads, although estimates vary, and intelligence reports suggest that it has been enriching uranium to supplement that stock and give it a second path to the bomb.

According to estimates from the Institute for Science and International Security from late 2012, North Korea could have enough weapons grade uranium for 21-32 nuclear weapons by 2016 if it used one centrifuge at its Yongbyon nuclear plant to enrich uranium to weapons grade.

North Korea gave no time-frame for the coming test and often employs harsh rhetoric in response to U.N. and U.S. actions that it sees as hostile.

Its long-range rockets are not seen as capable of reaching the United States mainland and it is not believed to have the technology to mount a nuclear warhead on a long-range missile.

The bellicose statement on Thursday appeared to dent any remaining hopes that Kim Jong-un, believed to be 30 years old, would pursue a different path from his father Kim Jong-il, who oversaw the country's military and nuclear programs.

The older Kim died in December 2011.

"The UNSC (Security Council) resolution masterminded by the U.S. has brought its hostile policy towards the Democratic Peoples Republic of Korea (North Korea) to its most dangerous stage," the commission was quoted as saying.

(Additional reporting by Christine Kim in SEOUL, Ben Blanchard and Sui-Lee Wee in Beijing; Writing by David Chance; Editing by Raju Gopalakrishnan)

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Football: Real Madrid break 500m-euro mark to top money list

LONDON: Real Madrid have become the first club in any sport to generate more than 500 million euros in revenue in a single year, according to the business advisory firm Deloitte.

The company's Football Money League, published for the 16th time on Thursday, sees Spanish champions Madrid retain their hold on first place ahead of perennial rivals Barcelona.

In an unchanged top six, Manchester United remain third, Bayern Munich fourth, European champions Chelsea fifth and Arsenal sixth, but English champions Manchester City soar five places to seventh.

AC Milan fall one place to eighth, with Liverpool remaining ninth and Italian champions Juventus rising three places to complete the top 10.

Madrid's revenue rose by seven percent to 512.6 million euros in the 2011-2012 season, equivalent to £414.7 million or $644.7 million at June 2012 exchange rates.

It enabled the nine-time European champions to hold onto top spot in the ranking for an eighth successive year, matching United's record from 1996-1997 to 2003-2004.

"It is an impressive achievement for Real Madrid to have surpassed 500 million euros in revenue in a single year," said Dan Jones from Deloitte's Sports Business Group.

"Real have led the way in the phenomenal rate of revenue growth achieved by the game's top clubs, with the double-digit (10-percent) increase by the top 20 clubs representing continued strong performance in these tough economic times.

"The combined revenues of the top 20 clubs have quadrupled since we began our analysis in 1996-1997."

Madrid triumphed in the Spanish Liga in 2011-2012, ending three years of dominance by arch-rivals Barcelona, but lost out in the Champions League after being beaten by Bayern in the semi-finals.

Overall, the combined revenue of the world's 20 highest-earning football clubs grew by 10 percent on the previous year to reach 4.8 billion euros.

City's climb of five places was matched by German champions Borussia Dortmund, who rose to 11th, and Italian side Napoli (15th).

"Manchester City's Premier League title-winning season, combined with participation in the UEFA Champions League, helped drive 51-percent revenue growth to 285.6 million euros, the largest absolute and relative growth of any Money League club," said Deloitte's Austin Houlihan.

"The club's progress to the top of the English and European game means that they are set to remain a top 10 Money League club for the foreseeable future."

The only new entry in the list was English side Newcastle United, who moved into the top 20 at the expense of Spanish club Valencia after a surprise fifth-place finish in the Premier League last season.

The English top flight remains the most well-represented league in the ranking, with seven of the 20 clubs hailing from the Premier League.

The Deloitte Football Money League 2013 (position, previous year's position, club, country, revenue in 2011-2012):

1. (1) Real Madrid (ESP) 512.6 million euros (£414.7 million)

2. (2) Barcelona (ESP) 483 million (390.8 million)

3. (3) Manchester United (ENG) 395.9 million (230.3 million)

4. (4) Bayern Munich (GER) 368.4 million (298.1 million)

5. (5) Chelsea (ENG) 322.6 million (261 million)

6. (6) Arsenal (ENG) 290.3 million (234.9 million)

7. (12) Manchester City (ENG) 285.6 million (231.1 million)

8. (7) AC Milan (ITA) 256.9 million (207.9 million)

9. (9) Liverpool (ENG) 233.2 million (188.7 million)

10. (13) Juventus (ITA) 195.4 million (158.1 million)

11. (16) Borussia Dortmund (GER) 189.1 million (153 million)

12. (8) Inter Milan (ITA) 185.9 million (150.4 million)

13. (11) Tottenham Hotspur (ENG) 178.2 million (144.2 million)

14. (10) Schalke 04 (GER) 174.5 million (141.2 million)

15. (20) Napoli (ITA) 148.4 million (120.1 million)

16. (14) Marseille (FRA) 135.7 million (109.8 million)

17. (17) Lyon (FRA) 131.9 million (106.7 million)

18. (18) Hamburg (GER) 121.1 million (98 million)

19. (15) Roma (ITA) 115.9 million (93.8 million)

20. (new) Newcastle United (ENG) 115.3 million (93.3 million)

- AFP/al

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Is Akbaruddin Owaisi in a bad way?

HYDERABAD: In a development which could give the government sleepless nights, doctors attending on Akbaruddin Owaisi, the jailed MIM legislator, said his health was failing and the 41-year-old leader should be moved, at least, to a prison facility which is close to a multi-speciality hospital.

Owaisi junior is being treated at the Adilabad district hospital, which doctors said did not have modern medical facilities. "According to the last ultrasound done a few months ago, several abdominal adhesions, which are basically fibrous bands between tissues and organs were found and if this is not checked, it can quickly turn into sub-acute obstruction, which would need surgery," said Dr Verghese Muthai, a colorectal surgeon at Yashoda Hospital, Somajiguda.

"If left untreated for a long time, this can lead to full intestinal obstruction which is fatal," he added. Owaisi, who has been arrested for a hate speech delivered in Nirmal town last month, has been made to travel for hundreds of kilometres across three districts to appear before different courts after doctors in Adilabad said he was fit for travel.

Off late, his lawyers are moving bail petition on health grounds, which some observers say is quite common and the fact that he had happily attended party meetings regularly before he was jailed could be a further testimony to his fitness. "His health is not bad. He is okay. The stories of his bad health are being spread to get a quick bail," said a doctor who did not want to be named.

But what is perhaps making the government nervous is the absence of quality healthcare facilities in Adilabad and sources said that perhaps prompted authorities to move him to a guest house from the subjail where he was initially lodged.

Owaisi's case-sheet

Akbar suffering from abdominal adhesions.

Is due for three surgeries: For adhesions and hernia, tendon replacement in left arm and removal of bullet in thigh

Both kidneys working at sub-optimal levels

Also suffers from uticaria, a skin infection

Prone to drug allergies

Doc says should be shifted to a prison facility which is close to a multi-speciality hospital

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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.

___

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

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Al Qaeda Commander Killed for the 3rd Time

The second in command of al Qaeda's Yemen affiliate was reportedly killed in an airstrike in Yemen in December, according to a news report by Arabic television network Al Arabiya, the third time the former Guantanamo detainee has been reported dead since 2010.

According to the report, Said al-Shihri died last month after sustaining severe injuries from a joint U.S.-Yemeni airstrike that targeted a convoy in which he was riding. The al Arabiya account, based on information from "family sources," said that the airstrike left al-Shihri in a coma. He allegedly died soon after and was buried in Yemen.

On Tuesday afternoon, hours after the initial report, a Yemeni government official denied having any information regarding the death of al-Shihri, according to Arabic news site al-Bawaba.

No photos of a body have yet surfaced and no mention of his death has appeared on jihadi forums.
This is the third time al-Shihri, the second in command of al Qaeda in the Arabian Peninsula (AQAP), has been reported killed since 2009. In 2010, the Yemeni government claimed it had captured him. In September 2012, Yemeni news sites reported he was killed in an American drone strike.

PHOTOS: Terrorists Who Came Back from the Grave

READ: Gitmo Detainee turned terror commander killed: Reports

Al-Shihri, a "veteran jihadist," traveled to Afghanistan shortly after the Sept. 11, 2001 terror attacks to fight coalition troops, only to be captured weeks later, according to West Point's Combating Terrorism Center. He was sent to the U.S. prison in Guantanamo Bay, Cuba, where he stayed for six years before being released to Saudi Arabia. There, he entered a so-called "jihadi rehab" program that attempted to turn terrorists into art students by getting them to get "negative energy out on paper," as the program's director told ABC News in 2009.

READ: Trading Bombs for Crayons: Terrorists Get 'Art Therapy'

But just months after he supposedly entered the fingerpainting camp, al-Shihri reappeared in Yemen where he was suspected to have been behind a deadly bombing at the U.S. embassy there.

At the time, critics of the "jihadi rehab" program used al-Shihri as evidence that extremists would just go through the motions in order to be freed.

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Netanyahu turns focus to Iran after narrow election win

JERUSALEM (Reuters) - Hawkish Prime Minister Benjamin Netanyahu has claimed victory in Israel's parliamentary election, shrugging off surprise losses to centre-left challengers and vowing to stop Iran from acquiring nuclear weapons.

However, Tuesday's vote, which also disappointed religiously inspired hardliners, may deflect the premier's focus on confronting Tehran and resisting Palestinian demands as Israel's secular middle-class demanded new attention on domestic issues.

That in turn might draw Netanyahu toward a less fractious relationship with his key ally, U.S. President Barack Obama, who himself embarked on a new term this week with great ambitions.

Interim vote count results on Wednesday showed the Israeli leader's right-wing Likud and the ultra-nationalist Yisrael Beitenu would remain the biggest bloc in the 120-member assembly, but with only 31 seats, 11 fewer than the 42 the two parties held in the last parliament.

That put Netanyahu on course for a third term in office, perhaps leading a hardline coalition that would promote Jewish settlement on occupied land.

But his weakened showing in the ballot, which he had called nine months early in the hope of a strong mandate for his struggle with Iran, could complicate his efforts to forge an alliance with a stable and substantial majority in parliament.

"I am proud to be your prime minister, and I thank you for giving me the opportunity, for the third time, to lead the state of Israel," the 63-year-old leader told a cheering crowd in the early hours of Wednesday at his campaign headquarters.

Netanyahu said he planned to form as broad a governing coalition as possible, suggesting he would seek partners beyond his traditional ultra-nationalist and religious allies. His first call may be to Yair Lapid, a former television anchorman whose centrist, secular party came from nowhere to second place.

"The first challenge was and remains preventing Iran from obtaining nuclear weapons," Netanyahu said.

Iran denies it is planning to build an atomic bomb, and says Israel, widely believed to have the only nuclear arsenal in the Middle East, is the biggest threat to the region.

Netanyahu views Tehran's nuclear program as a threat to Israel's existence and has stoked international concern by hinting at possible Israeli military action to thwart it.

He has shunted Palestinian peacemaking well down the agenda despite Western concern to keep the quest for a solution alive.

Wednesday's count forecast an even split between right-wing parties and the centre-left, with each bloc taking 60 of parliament's 120 seats.

Lapid's Yesh Atid (There is a Future) party should have 19 seats, the interim count showed - a stunning result for a newcomer to politics in a field of 32 contending parties.

Lapid won support amongst middle-class, secular voters by promising to resolve a growing housing shortage, abolish military draft exemptions for Jewish seminary students and seek an overhaul of the failing education system.

He urged Netanyahu "to build as broad a government as possible so that we can bring about real change in Israel".

The once dominant Labour party led by Shelly Yachimovich was projected to take third place with 15 seats. She described Likud victory claims as "ridiculous" before final results were in.

"There is a very good chance, a very good chance, that tomorrow morning Benjamin Netanyahu will not be able to form a government," she declared at her party headquarters.

Reconciling views to build a cabinet will certainly be hard.

"YESH ATID SWEEP"

Some in Netanyahu's party acknowledged that the election had gone somewhat awry. "We anticipated we would lose some votes to Lapid, but not to this extent. This was a Yesh Atid sweep," Likud-Yisrael Beitenu campaign adviser Ronen Moshe told Reuters.

Lapid said before the election he would consider joining a Netanyahu-led government. If that happens, the ultra-Orthodox religious parties which often hold the balance of power in parliament might lose some of their leverage.

After a lackluster campaign, Israelis voted in droves on a sunny winter day, registering a turnout of 66.6 percent, the highest since 2003. That buoyed centre-left parties which had pinned their hopes on energizing an army of undecided voters against Netanyahu and his nationalist-religious allies.

"A big majority of middle class Israelis have voted strongly against the priorities of the last government," said Dan Avnon, a political science professor at Hebrew University.

"These are the people who pay the taxes and serve in the army," he said. "I don't think they can be ignored."

Opinion polls before the election had predicted an easy win for Netanyahu, although the last ones suggested he would lose some votes to the Jewish Home party, which opposes a Palestinian state and advocates annexing chunks of the occupied West Bank.

Wednesday's interim count gave 11 seats to Jewish Home.

The biggest casualty was the centrist Kadima party, which teetered between a minimum parliamentary showing of 2 seats and political extinction, depending on the final vote tally due later on Wednesday.

Kadima had gained the highest number in the previous election in 2009, although its then leader Tzipi Livni failed to put together a governing coalition.

Official vote results will be announced on January 30. After that, President Shimon Peres is likely to ask Netanyahu, as leader of the biggest bloc in parliament, to try to form a government.

WESTERN ANXIETY

Whatever permutation finally emerges, a Netanyahu-led government is likely to resist any push for a peace deal with the Palestinians that would come anywhere near satisfying the moderates who seek a viable independent state alongside Israel.

Naftali Bennet, high-tech millionaire son of American immigrants who leads the hard-right, pro-settler Jewish Home party, was a likely coalition partner despite his election showing, which was less than surging opinion polls had predicted.

Bennet, who advocates annexing West Bank land to Israel, told cheering supporters: "There is only one truth and it is simple. The Land of Israel belongs to the people of Israel."

Britain warned Israel on Tuesday it was losing international support, saying Jewish settlement expansion had almost killed off prospects for a two-state solution.

U.S.-brokered peace talks broke down in 2010 amid mutual acrimony. Since then Israel has accelerated construction in the West Bank and east Jerusalem - land the Palestinians want for their future state - much to the anger of Western partners.

Netanyahu's relations with Obama have been notably tense and Martin Indyk, former U.S. ambassador to Israel, told the BBC the election was unlikely to change that.

"President Obama doesn't have high expectations that there's going to be a government in Israel committed to making peace and is capable of the kind of very difficult and painful concessions that would be needed to achieve a two-state solution," he said.

But Aaron David Miller, once a senior U.S. adviser on the peace process, said a weakening of the right might improve ties: "The fact is, if (Netanyahu) goes with Lapid and he reaches out to the centre, you're going to end up with an American-Israeli rapprochement to a certain degree," Miller told CNN.

Tuesday's vote was the first in Israel since Arab uprisings swept the region two years ago, reshaping the Middle East.

Netanyahu has said the turbulence, which has brought Islamist governments to power in several countries long ruled by secularist autocrats, including neighboring Egypt, shows the importance of strengthening national security.

Foreign policy issues barely registered during the election campaign, with a poll in Haaretz newspaper on Friday saying 47 percent of Israelis thought social and economic issues were the most pressing concern, against just 10 percent who cited Iran.

A major problem for the next government, which is unlikely to take power before mid-March, is the stuttering economy.

Data last week showed the budget deficit rose to 4.2 percent of gross domestic product in 2012, double the original estimate, meaning spending cuts and tax hikes look certain.

(Reporting by Jerusalem bureau; Editing by Alastair Macdonald and David Brunnstrom)

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Japan researchers grow kidney tissue from stem cells

TOKYO: Researchers in Japan said Wednesday they have succeeded in growing human kidney tissue from stem cells for the first time in a potential breakthrough for millions with damaged organs who are dependent on dialysis.

Kidneys have a complex structure that is not easily repaired once damaged, but the latest findings put scientists on the road to helping a diseased or distressed organ fix itself.

Kenji Osafune of Kyoto University said his team had managed to take stem cells -- the "blank slates" capable of being programmed to become any kind of cell in the body -- and nudge them specifically in the direction of kidney tissue.

"It was a very significant step," he told AFP.

Osafune said they had succeeded in generating intermediate mesoderm tissue from the stem cells, a middle point between the blank slate and the finished kidney tissue.

"There are about 200 types of cells in the human body, but this tissue grows into only three types of cells," namely adrenal cells, reproductive gland cells and kidney cells, he said, adding that as much as 90 percent of cultures in their research developed into viable mesoderm tissue.

This embryonic intermediary can be grown either in test tubes or in a living host into specific kidney cells.

Osafune and his team created part of a urinary tubule, a small tube in the kidney that is used in the production of urine.

While the research is not aimed at growing an entire working kidney, he said the method his team had developed would help scientists learn more about intermediate mesoderm development and may provide a source of cells for regenerative therapy.

"I would say that we have arrived at the preliminary step on the road to the clinical level," he said.

Osafune's research is published in online science journal Nature Communications.

-AFP/fl

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BJP will gain from Rajnath Singh: Narendra Modi

NEW DELHI: Gujarat chief minister Narendra Modi on Wednesday congratulated BJP leader Rajnath Singh who is set to become party president, and said the party would "gain from this" move.

"I called up Shri Rajnath Singh ji and congratulated him. He brings with him vast experience of both organisation and administration," Modi said on micro-blogging site Twitter.

"Rajnath Singh ji served as agriculture minister in Atal ji's government (AB Vajpayee). He has always been associated with the farmers. BJP will gain from this," he said.

In dramatic developments on Tuesday, incumbent BJP president Nitin Gadkari announced that he would not seek a second term. Former Uttar Pradesh chief minister Rajnath Singh emerged as Gadkari's likely successor.

Rajnath Singh's name emerged after a series of meetings involving party leaders Arun Jaitley, Venkaiah Naidu, Ram Lal and Ananth Kumar.

BJP leaders are meeting in Delhi and name of the new president is likely to be announced later during the day.

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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."

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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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