Israel, Gaza fighting rages on as Egypt seeks truce

GAZA/JERUSALEM (Reuters) – Israel bombed Palestinian militant targets in the Gaza Strip from air and sea for a fifth straight day on Sunday, preparing for a possible ground invasion though Egypt saw “some indications” of a truce ahead.

Militant rocket fire into Israel subsided during the night but resumed in the morning with three rockets fired at the nearby coastal city of Ashkelon, the Israeli army said.

“As of now we have struck more than 1,000 targets, so Hamas should do the math over whether it is or isn’t worth it to cease fire,” Israeli Vice Prime Minister Moshe Yaalon, over Twitter.

“If there is quiet in the South and no rockets and missiles are fired at Israel’s citizens nor terrorist attacks engineered from the Gaza Strip, we will not attack.”

Forty-eight Palestinians, about half of them civilians, including 13 children, have been killed in Israel’s raids, Palestinian officials said. More than 500 rockets fired from Gaza have hit Israel, killing three people and injuring dozens.

Israel unleashed intensive air strikes on Wednesday, killing the commander of the Hamas Islamist group that governs Gaza and spurns peace with the Jewish state. Israel’s declared goal is to deplete Gaza arsenals and press Hamas into stopping cross-border rocket fire that has plagued Israeli border towns for years.

Air raids continued past midnight into Sunday, with warships shelling from the sea. A Gaza City media building was hit, witnesses said, wounding 6 journalists and damaging facilities belonging to Hamas’s Al-Aqsa TV as well as Britain’s Sky News.

An Israeli military spokeswoman said the strike had targeted a rooftop “transmission antenna used by Hamas to carry out terror activity”.

Two other predawn attacks on houses in the Jabalya refugee camp killed two children and wounded 13 other people, medical officials said.

These attacks followed a defiant statement by Hamas military spokesman Abu Ubaida, who told a news conference: “This round of confrontation will not be the last against the Zionist enemy and it is only the beginning.”

The masked gunman dressed in military fatigues insisted that despite Israel’s blows Hamas “is still strong enough to destroy the enemy”.

An Israeli attack on Saturday destroyed the house of a Hamas commander near the Egyptian border.

Casualties there were averted however, because Israel had fired non-exploding missiles at the building beforehand from a drone, which the militant’s family understood as a warning to flee, and thus their lives were spared, witnesses said.

Israeli aircraft also bombed Hamas government buildings in Gaza on Saturday, including the offices of Prime Minister Ismail Haniyeh and a police headquarters.

Among those killed in air strikes on Gaza on Saturday were at least four suspected militants riding motorcycles, and several civilians including a 30-year-old woman.

ISRAELI SCHOOLS SHUT

Israel said it would keep schools in its south shut on Sunday as a precaution to avoid casualties from rocket strikes reaching as far as Tel Aviv and Jerusalem in the past few days.

Israel’s “Iron Dome” missile interceptor system destroyed in mid-air a rocket fired by Gaza militants at Tel Aviv on Saturday, where volleyball games on the beach front came to an abrupt halt as air-raid sirens sounded.

Hamas claimed responsibility for the attack on Tel Aviv, the third against the city since Wednesday. It said it had fired an Iranian-designed Fajr-5 at the coastal metropolis, some 70 km (43 miles) north of Gaza.

In the Israeli Mediterranean port of Ashdod, a rocket ripped into several balconies. Police said five people were hurt.

Israel’s operation has drawn Western support for what U.S. and European leaders have called Israel’s right to self-defense, but there was also a growing number of calls from world leaders to seek an end to the violence.

British Prime Minister David Cameron “expressed concern over the risk of the conflict escalating further and the danger of further civilian casualties on both sides,” in a conversation with Israeli Prime Minister Benjamin Netanyahu, a spokesperson for Cameron said.

London was “putting pressure on both sides to de-escalate,” the spokesman said, adding that Cameron had urged Netanyahu “to do everything possible to bring the conflict to an end.”

Ben Rhodes, a deputy national security adviser to President Barack Obama, said the United States would like to see the conflict resolved through “de-escalation” and diplomacy, but also believes Israel has a right to self-defense.

Egyptian President Mohamed Mursi said in Cairo as his security deputies sought to broker a truce with Hamas leaders, that “there are some indications that there is a possibility of a ceasefire soon, but we do not yet have firm guarantees.”

Egypt has mediated previous ceasefire deals between Israel and Hamas, the latest of which unraveled with recent violence.

A Palestinian official told Reuters the truce discussions would continue in Cairo on Sunday, saying “there is hope,” but it was too early to say whether the efforts would succeed.

In Jerusalem, an Israeli official declined to comment on the negotiations. Military commanders said Israel was prepared to fight on to achieve a goal of halting rocket fire from Gaza, which has plagued Israeli towns since late 2000, when failed peace talks led to the outbreak of a Palestinian uprising.

Diplomats at the United Nations said Secretary-General Ban Ki-moon is expected to visit Israel and Egypt in the coming week to push for an end to the fighting.

POSSIBLE GROUND OFFENSIVE

Israel, with tanks and artillery positioned along the frontier, said it was still weighing a ground offensive.

Israeli cabinet ministers decided on Friday to more than double the current reserve troop quota set for the Gaza offensive to 75,000 and around 16,000 reservists have already been called up.

Asked by reporters whether a ground operation was possible, Major-General Tal Russo, commander of the Israeli forces on the Gaza frontier, said: “Definitely.”

“We have a plan. … It will take time. We need to have patience. It won’t be a day or two,” he added.

A possible move into the densely populated Gaza Strip and the risk of major casualties it brings would be a significant gamble for Netanyahu, favored to win a January election.

The last Gaza war, a three-week Israeli blitz and invasion over the New Year of 2008-09, killed 1,400 Palestinians, mostly civilians. Thirteen Israelis died in the conflict.

But the Gaza conflagration has stirred the pot of a Middle East already boiling from two years of Arab revolution and a civil war in Syria that threatens to spread beyond its borders.

One major change has been the election of an Islamist government in Cairo that is allied with Hamas, potentially narrowing Israel’s maneuvering room in confronting the Palestinian group. Israel and Egypt made peace in 1979.

(Writing by Allyn Fisher-Ilan; Editing by Douglas Hamilton)

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Golf-Obsession drove Aussie Batibasaga to mental institution

MELBOURNE, Nov 18 (Reuters) – The desire to improve can drive professional athletes to distraction, but for Australian golfer Rika Batibasaga it became a dangerous obsession that saw him handcuffed and thrown into a Florida mental institution.

In 2008, Batibasaga, whose father played international rugby for Fiji, was a 21-year-old living in Florida and grafting on the Nationwide Tour when his world spectacularly imploded.

“I was living away from home for the first time and it all got too much for me,” Batibasaga told Reuters at the Australian Masters in Melbourne on Sunday.

“I had a psychotic episode – it’s called psychosis. I lost the plot because of a lack of sleep – just due to stress.

“And I couldn’t control it and basically just flipped it out.”

Like hundreds of other young talents drawn to the United States to chase their dreams, Batibasaga felt hard work would prove the difference after he carried countryman and former house-mate Jason Day’s bag at a local tournament.

Feeling his game was not far off the professionals in that tournament, Batibasaga threw himself into a punishing training regime of 10-hour days hitting hundreds of balls, followed by running and gym sessions.

“It was stupid. It became an obsession. I felt I needed to push it a lot harder because I was almost there,” he recalled.

“But my brain just wouldn’t turn off and I would just get so frustrated and angry.

“When I went two or three days without sleep, I panicked and that it made it even worse. It just sort of snowballed.”

Into his sixth consecutive day without sleep, Batibasaga snapped.

Wearing just a pair of underwear, he jumped into a car belonging to the owner of the Orlando house he was living in and crashed it in the garage.

He jumped into another car, this one his house mate’s, and was arrested by police in front of Universal Studios.

“They both had their guns out. I guess it’s just America and they love pulling a gun on someone,” Batibasaga, an affable 25-year-old with a wispy beard, laughed.

“I was just driving around, I had no idea where I was going. I was in no state to drive.

“They put me in an ambulance, they obviously thought I was on drugs. They knocked me out at the hospital and I woke up feeling fine.”

With no phone or identification cards, Batibasaga was taken to a mental hospital where he spent “probably the scariest two days” of his life before being checked out.

The same problems came back to haunt him later, though, and he returned home for further treatment and a course of prescription drugs at a Brisbane hospital where he was diagnosed with bipolar disorder.

Batibasaga, who made the cut in his debut Australian Masters, has not suffered any further mental illness, and has learnt to take a more measured approach to success and failure.

He continues to grind on the minor tours but has shown signs of his promise, winning A$ 18,459 ($ 19,000) at the European Tour co-sanctioned Perth International last month for finishing joint 25th.

Batibasaga still has the green uniform from the Lakeside mental institution in Florida as a souvenir and wore it out to a New Year’s Eve party.

He says dozens of young golfers struggling to make the step up to the A-grade suffer from anxiety and depression that borders and often crosses over into mental illness.

“It’s rife. Because you’re always by yourself and if you’re not playing well, you go back to your hotel alone,” he said.

“When things aren’t going well, that’s when it’s tough.” ($ 1 = 0.9702 Australian dollars) (Editing by Nick Mulvenney)

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Europe’s Economy: Look Out Below, Again

It’s official: Europe has double-dipped. The 17-country euro zone has fallen into its second recession since 2008, as figures released on Nov. 15 showed gross domestic product declining 0.1 percent during the third quarter. That followed a 0.2 percent contraction during the previous three months, according to the European Union’s statistics office.

There were some unexpected bright spots. Germany and France posted 0.2 percent quarter-on-quarter growth, ahead of expectations. Even some of the region’s most troubled economies suffered relatively modest contractions, including 0.3 percent in Spain and 0.2 percent in Italy.

Overall, though, “Europe’s economic downturn has not only deepened; it’s broadened with a vengeance,” says Nicholas Spiro, managing director of Spiro Sovereign Strategy in London. Usually solid economies in such countries as Austria and the Netherlands were among those posting quarterly declines.

In some countries, even worse times could lie ahead. “Whereas austerity is starting to ease in Italy, Spain is heading for the point of maximum pain,” economist Holger Schmieding of Berenberg Bank in London wrote in a research note. Recent austerity measures in Spain “will likely lead to a more pronounced recession” during the current quarter and in early 2013, Schmieding says.

France’s 0.2 percent expansion, which followed three quarters of flat growth, “is probably the result of a temporary rebound at the European level,” says Michel Martinez, an economist at Société Générale in Paris. France “is heading to a moderate recession or at best remaining flat.”

The picture isn’t likely to improve soon, Spiro says. “We’re looking at a period of extreme weakness. This is all because of the repeated failures on the part of politicians to shore up confidence in the single currency area.”

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Larry Clark film wins top prize at Rome fest

ROME (AP) — A film by “Kids” director Larry Clark set in a small Texan town and to be released online only has taken the top award at Rome’s film festival.

“Marfa Girl” explores the inner life of a teenage boy and other characters in a town near the Mexican border and bustling with border patrol police.

The festival jury gave it the Golden Marcus Aurelius prize for best film on Saturday night.

Clark, whose other credits include “Bully” and “Ken Park,” says the new film won’t be distributed in theaters but will be available online later this month to get around the Hollywood system.

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Jamaica to abolish slavery-era flogging law

KINGSTON, Jamaica (AP) — Jamaica is preparing to abolish a slavery-era law allowing flogging and whipping as means of punishing prisoners, the Caribbean country’s justice ministry said Thursday.

The ministry said the punishment hasn’t been ordered by a court since 2004 but the statutes remain in the island’s penal code. It was administered with strokes from a tamarind-tree switch or a cat o’nine tails, a whip made of nine, knotted cords.

Justice Minister Mark Golding says the “degrading” punishment is an anachronism which violates Jamaica’s international obligations and is preventing Prime Minister Portia Simpson Miller‘s government from ratifying the U.N. convention against torture.

“The time has come to regularize this situation by getting these colonial-era laws off our books once and for all,” Golding said in a Thursday statement.

The Cabinet has already approved repealing the flogging law and amendments to other laws in the former British colony, where plantation slavery was particularly brutal.

The announcement was welcomed by human rights activists who view the flogging law as a barbaric throwback in a nation populated mostly by the descendants of slaves.

“We don’t really see that (the flogging law) has any part in the approach of dealing with crime in a modern democracy,” said group spokeswoman Susan Goffe.

But there are no shortage of crime-weary Jamaicans who feel that authorities should not drop the old statutes but instead enforce them, arguing that thieves who steal livestock or violent criminals who harm innocent people should receive a whipping to teach them a lesson.

“The worst criminals need strong punishing or else they’ll do crimes over and over,” said Chris Drummond, a Kingston man with three school-age children. “Getting locked up is not always enough.”

The last to suffer the punishment in Jamaica was Errol Pryce, who was sentenced to four years in prison and six lashes in 1994 for stabbing his mother-in-law.

Pryce was flogged the day before being released from prison in 1997 and later complained to the U.N. Human Rights Committee, which ruled in 2004 that the form of corporal punishment was cruel, inhuman and degrading and violated his rights. Jamaican courts then stopped ordering whipping or flogging.

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Analysis: New Microsoft mantra after Sinofsky – teamwork

SEATTLE/SAN FRANCISCO (Reuters) – The sudden departure of powerful Windows boss Steven Sinofsky this week is the first step in a plan by CEO Steve Ballmer to remodel Microsoft Corp as a much more integrated operation in an attempt to take on Apple Inc and Google Inc at their own game.

After nearly 13 years at the helm of the world’s largest software maker, which just launched its first own-brand computer, sources inside the company say Sinofsky‘s departure signals Ballmer‘s new-found focus on co-operation between its self-sufficient – and sometimes warring – units.

“What I’m hearing over and over is collaboration and horizontal integration is the new mantra,” said one Microsoft insider, who asked not to be named. “They (top management) understand that, if they don’t move to a model where devices and software are more integrated across the entire Microsoft system, they are in a weak position.”

After floundering for most of the last decade, Microsoft is trying emulate the way Apple‘s software and hardware – such as iTunes and the iPhone – work perfectly together; or how Google‘s online suite from Web search to YouTube and Gmail are seamlessly joined.

Microsoft – which Ballmer rechristened as a “devices and services company” last month – has all the parts, analysts say, but has failed to put them together. Now Ballmer looks set to reshape the company to try to make that a reality.

“I certainly expect the org chart to look a lot different six months from now,” said Brad Silverberg, who ran the Windows unit during its massive growth spurt in the 1990s. “There will be attrition from Steven’s (Sinofsky’s) people and Steve Ballmer will have a chance to create a more harmonious organization.”

Ballmer replaced Sinofsky with two executives with a reputation for co-operation. The move marks the third time in the last few years that Ballmer has replaced a single unit head with two leaders sharing responsibilities.

“Sinofsky really centralized all the power under himself. We’ll see how it shakes out from here,” said one manager in the Windows unit.

More fundamental organizational shifts could be in the cards.

“A lot of things are up for grabs,” said David Smith at tech research firm Gartner. “How the management is structured – there could be more changes.”

NO ROOM FOR AN EMPIRE BUILDER

Sinofsky, a 23-year Microsoft veteran, built up a walled empire around his Windows unit.

His hard-charging but methodical style, which took on the name “Sinofskyization,” alienated other groups in the company, especially the Office unit, the other financial pillar of Microsoft‘s success.

“Steven is a brilliant guy who made tremendous contributions to Microsoft,” said Silverberg. “But he was also a polarizing guy and the antibodies ultimately caught up with him.”

The decision not to share the latest internal test versions of Windows 8 and keep the Surface tablet a secret until just before its announcement especially upset the Office group, which insiders say accounts for the lack of a fully featured Office suite on the Surface RT tablet.

“All good leaders create friction, but my guess is the cost of doing business with Sinofsky ended up outweighing the benefits,” said a former Microsoft staffer who saw Sinofsky operate at close quarters.

“If you work in Steven’s team, you love him,” said a former colleague who now works for a financial technology firm in Seattle. “If he’s outside of your team? That’s where his reputation of being hard to work with came from.”

Ballmer has made it clear that executives have to work together better. Next year, top managers will get bonuses based on company-wide performance, not just their own unit, which Ballmer hopes will lead to “deeper cross-organization collaboration.”

But there is no guarantee Ballmer can radically redirect almost four decades of culture at Microsoft – which he is partly responsible for – that gave Windows primacy and intentionally pitted teams against one another to get the best results.

Nothing will change without new leaders from outside the company, said Trip Chowdhry, managing director at Global Equities Research.

“Microsoft is clinging to the past and they keep bringing in the people from the past. This is a fundamental flaw in the logic,” Chowdhry said.

CEO THRONE

Despite urging collaboration, Ballmer – a 32-year Microsoft veteran who took over as CEO from Bill Gates in 2000 – does not let any junior executive get too close to challenging his authority.

Sinofsky, widely touted as Ballmer’s successor for the past three years, was just the latest in a line of would-be CEOs. Over the last five years alone, Ballmer has seen off a clutch of rising stars that were discussed as potential leaders.

Windows and online head Kevin Johnson went to run Juniper Networks Inc, Office chief Stephen Elop went to lead phone maker Nokia, while Ray Ozzie – the software guru Bill Gates designated as Microsoft‘s big-picture thinker – left to start his own project.

“They’ve gone through quite a bit of senior management talent in the past few years. The bench is not what it used to be,” said Smith at Gartner. “The overall management structure, career path, replacements, succession planning – a lot of that is an issue for Microsoft.”

Ballmer’s promotion of Julie Larson-Green and Tami Reller to jointly fill Sinofsky’s role may only be temporary, Microsoft-watchers say.

“The question is what comes after, like in the next three years,” said Rob Helm at Directions on Microsoft, an independent firm that advises business customers on how to deal with Microsoft.

(Reporting By Bill Rigby in Seattle and Alexei Oreskovic in San Francisco.; Editing by Edward Tobin, Martin Howell and Andre Grenon)

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Oklahoma’s Rate of Diabetes Triples in 16-Year Time Span

There’s plenty of bad news to go around much of the nation when it comes to the current rates of type 2 diabetes, but Oklahoma especially so, with a triple rate increase from 1995 through 2010, according to the U.S. Centers for Disease Control and Prevention .

CDC Research

The CDC wanted to learn what, if any, regions of the United States had different rates of diabetes than the nation as a whole and to be able to compare regional rates against each other. To this end, the agency used the Behavioral Risk Factor Surveillance System for each of the years from 1995 through 2010.

People from every state, Washington, D.C., and Puerto Rico were asked, “Have you ever been told by a doctor that you have diabetes?” Randomized telephone calls were made to noninstitutionalized, non-military adults ages 18 and over to find the answer to the question in each of the 16 years of the survey. Diabetes in pregnancy only, pre-diabetes and borderline diabetes answers were excluded from the counted results.

Oklahoma and Its Southern Neighbors

The median percentage of change in the increased rate of diabetes for the nation was determined to be an 82.2 percent increase. For the southern region of the country, including Arkansas, Texas, Oklahoma and Louisiana, the there was a median increase in the chronic disease of 104.2 percent — the largest increase in all the regions of the United States.

Oklahoma, the state that experienced the highest rate of change in people diagnosed with diabetes, had an increase of 226.7 percent. While that statistic is astounding, the state’s prevalence of adults with diabetes, at 9.8 in 2010, does not place it among the top 10 states in the nation in this category.

Bottom Line

As the nation’s waistbands are expanding, the rate of type 2 diabetes is increasing. Linda Geiss, lead author of the CDC’s diabetes survey, stated to the Associated Press , “The rise in diabetes has really gone hand in hand with the rise in obesity.”

Public health officials are concerned about what can be done to stem the tide of type 2 diabetes, a largely preventable disease if proper nutrition, exercise and weight management are followed. But health officials and care providers cannot accomplish this goal without the cooperation of each individual to take personal responsibility for his/her health.

Smack dab in the middle of the baby boomer generation, L.L. Woodard is a proud resident of “The Red Man” state. With what he hopes is an everyman’s view of life’s concerns both in his state and throughout the nation, Woodard presents facts and opinions based on common-sense solutions.

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World stocks flat on Europe, US woes; Japan gains

BANGKOK (AP) — Trading on world stock markets was lethargic Friday after data showed Europe slipped back into recession and several big U.S. retailers disappointed investors with weak forecasts.

The European Union’s statistics agency said Thursday that the combined economy of the 17 countries that use the euro contracted 0.1 percent in the third quarter from the previous quarter. Surveys pointing to difficult conditions ahead suggest the recession could deepen.

“Although unsurprising, data in Europe confirmed that the region fell back into recession, an outcome that will do little to ease tensions,” analysts at Credit Agricole CIB in Hong Kong said in an email commentary.

European stocks were flat in early trading. Britain’s FTSE 100 fell 0.1 percent to 5,672.68. Germany‘s DAX was almost unchanged at 7,044.06. France‘s CAC-40 inched up less than 0.1 percent to 3,385.29.

Wall Street also flat-lined ahead of the open. Dow Jones industrial futures were almost unchanged at 12,524. S&P 500 futures inched up marginally to 1,352.10.

Trading in Asia was slightly more energetic. Hong Kong’s Hang Seng rose 0.2 percent to 21,159.01. South Korea‘s Kospi fell 0.5 percent to 1,860.83. Australia‘s S&P/ASX 200 lost 0.3 percent to 4,336.80.

Benchmarks in Taiwan, New Zealand and mainland China fell. The Shanghai Composite Index lost 0.8 percent to 2,014.72 and the Shenzhen Composite Index fell 0.7 percent to 800.20. Benchmarks in Singapore, Thailand and the Philippines rose.

Japan‘s Nikkei 225 stock index jumped 2.2 percent to close at 9,024.16, rallying for a second straight day on expectations that the opposition Liberal Democratic Party may win elections next month and pursue more aggressive stimulus policies than the current leadership.

LDP leader Shinzo Abe has said he is determined to push for such policies and to find ways to weaken the yen, whose strength against other currencies has hammered exporters.

Stan Shamu, strategist at IG Markets in Melbourne, said Abe wants an inflation target of between 2 and 3 percent as a way to cheapen the Japanese currency, perhaps by printing yen or bulking up on purchases of assets like Japanese government bonds. Still, the target might be difficult to achieve, given the economy’s weakness, he said.

“With such a big export economy, the yen has massive significance on how the local economy performs,” Shamu said.

Japan’s exporters, whose fortunes are linked to the yen’s valuation, were buoyed by the prospect of a changing of the guard. Mazda Motor Corp. soared 7.1 percent. Nissan Motor Co. jumped 5.1 percent. Nikon Corp. surged 7.2 percent and Canon Inc. gained 5.8 percent.

In Australia, Whitehaven Coal fell 1.8 percent after announcing it would scale back some operations due to the decline in global coal prices.

In the U.S., investors were dealt dual blows Thursday: worse-than-expected revenue from global retailing giant Wal-Mart and data showing that manufacturing weakened in the Philadelphia and New York regions, reflecting damage from Superstorm Sandy.

Wal-Mart, Ross Stores and Limited Brands, the owner of Victoria’s Secret, also disappointed investors by issuing profit forecasts that fell short of expectations.

Benchmark oil for December delivery was up 13 cents to $ 85.58 in electronic trading on the New York Mercantile Exchange. The contract fell 87 cents to close at $ 85.45 a barrel in New York on Thursday.

In currencies, the dollar weakened to 80.98 yen from 81.21 yen late Thursday in New York. The euro fell to $ 1.2748 from $ 1.2773.

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“Gangnam Style” song channels New Yorkers’ power woes

NEW YORK (Reuters) – Move over Psy. The next hot thing – at least on Long Island, New York – is a music video parodying the South Korean rapper and dancer’s blockbuster hit, “Gangnam Style.”

While the locally produced “LIPA Style” may not attract millions of YouTube views, it’s channeling the frustration of thousands of disgruntled New Yorkers, many of whom went weeks without power after Sandy slammed the East Coast last month.

“There’s been this outpouring of thanks,” said John “Online” Mingione, a correspondent for a Long Island radio station, who created the video after going more than week without power.

After watching the video, people “are saying this is the first time they’ve been able to smile in weeks,” said Mingione.

The response to the cleanup by the Long Island Power Authority (LIPA) has resulted in lawsuits and investigations. The chief operating officer of the state-owned utility also quit under fire for the company’s slow response in restoring power.

Mingione, 23, did not initially mind going without power at his Long Island home. But after five days, the food and friends were gone, and he started to get lonely and bored. A colleague came up with the idea for the song, which was inspired by thousands of complaints the station – WBLI/106.1 FM – received from listeners.

In less than a week, the video with its lyrics about life without power, pleas for help from LIPA and absurd dance moves performed by Mingione and two co-workers in faux LIPA uniforms with a local 5-year-old has been viewed more than 250,000 times on YouTube.

Mingione’s favorite line: “I’m running out of formula, my baby won’t stop crying” which included footage with a co-worker’s infant son.

“I know they’re working their hardest,” he said. “It’s not the linemen’s fault, but at this point it’s ridiculous that people are still without power.”

(Reporting by Jilian Mincer; Editing by Paul Thomasch and Jackie Frank)

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Canada’s Carney says rate hikes “less imminent”

TORONTO (Reuters) – Interest rate hikes have become less imminent than the Bank of Canada once expected, although rates are still likely to rise, central bank Governor Mark Carney said in an interview published on Saturday.

“Over time, rates are likely to increase somewhat, but over time, so a less imminent timing relative to our expectation,” Carney said in an interview with the National Post newspaper.

Canada’s economy rebounded better than most from the global economic recession, and the Bank of Canada is the only central bank in the Group of Seven leading industrialized nations that is currently hinting at higher interest rates.

But Carney has also made clear that there will be no rate rise for a while, despite high domestic borrowing rates that he sees as a major risk to a still fragile economy.

“We’ve been very clear in terms of lines of defense in addressing financial vulnerabilities,” he said in the interview. “And the most prominent one, obviously, in Canada, is household debt.”

He said the bank was monitoring the impact of four successive government moves to tighten mortgage lending, which aimed to take the froth out of a hot housing market without causing a damaging crash in prices.

A Reuters poll published on Friday showed the majority of 20 forecasters believe the government has done enough to rein in runaway prices, preventing the type of crash that devastated the U.S. market.

The experts expect Canadian housing prices to fall 10 percent over the next several years, but they do not expect the recent property boom to end in a U.S.-style collapse.

(Reporting by Janet Guttsman; Editing by Vicki Allen)

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