Israel goes to polls, set to re-elect Netanyahu

JERUSALEM (Reuters) - Israelis voted on Tuesday in an election that is expected to hand hawkish Prime Minister Benjamin Netanyahu a third term, opening the way for a showdown with Iran and bolstering opponents of Palestinian statehood.

However, Netanyahu's own Likud party, running alongside the ultra-nationalist Yisrael Beitenu group, looks set to win fewer seats than in the previous parliament, with opinion polls showing a surge in support for the far-right Jewish Home party.

By 4 p.m. (9.00 a.m. ET), six hours before polls close, the Israeli election committee said turnout was 46.6 percent, up from 41.9 percent at the same time in 2009 and the highest level since 1999, when Netanyahu, serving his first term as prime minister, was defeated by then-Labour Party leader Ehud Barak.

Ahead of Tuesday's ballot, analysts had speculated that high turnout would benefit center-left parties that have sometimes struggled to motivate their voter base.

In a sign of concern over a possible centrist surge, Netanyahu urged his supporters to go to the polls.

"Go vote, and then go back to the cafes. Go vote so we can lead Israel because ... we don't really know how all of this is going to end," he said in public remarks at Likud party headquarters in Tel Aviv.

Political sources said Netanyahu, worried by his apparent fall in popularity, might approach center-left parties after the ballot in an effort to broaden his coalition and present a more moderate face to Washington and other concerned allies.

British Foreign Secretary William Hague warned Israel it was losing international support, saying prospects for a two-state solution to the Israeli-Palestinian conflict were almost dead because of expanding Jewish settlement in occupied territory.

Some 5.66 million Israelis are eligible to cast a ballot, with polling stations closing at 10 p.m. (3.00 p.m. ET). Full results are due by Wednesday morning, opening the way for coalition talks that could take several weeks.

The lackluster election campaign failed to focus on any single issue and with a Netanyahu victory predicted by every opinion poll, the two main political blocs seemed to spend more time on internal feuding than confronting each other.

"There is a king sitting on the throne in Israel and I wanted to dethrone him, but it looks like that won't happen," said Yehudit Shimshi, a retired teacher voting in central Israel in balmy winter weather that drew out the electorate.

No Israeli party has ever secured an absolute majority, meaning that Netanyahu, who says that dealing with Iran's nuclear ambitions is his top priority, will have to bring various allies on board to control the 120-seat Knesset.

The former commando has traditionally looked to religious, conservative parties for backing and is widely expected to seek out the surprise star of the campaign, self-made millionaire Naftali Bennett, who heads the Jewish Home party.

Bennett has ruled out any peace pact with the Palestinians and calls for the annexation of much of the occupied West Bank.

His youthful dynamism has struck a chord amongst Israelis, disillusioned after years of failed peace initiatives, and has eroded Netanyahu's support base.

The Likud has also shifted further right in recent months, with hardline candidates who reject the so-called two-state solution dominating the top of the party list.

"TRENDY PARTIES"

Surveys suggest Bennett may take up to 14 seats, many at the expense of Likud-Beitenu, which was projected to win 32 in the last round of opinion polls published on Friday - 10 less than the two parties won in 2009 when they ran separate lists.

Acknowledging the threat, Netanyahu's son Yair urged young Israelis not to abandon the old, established Likud.

"Even if there are more trendy parties, there is one party that has a proven record," he said on Tuesday.

Amongst the new parties standing for the first time in an election were Yesh Atid (There is a Future), a centrist group led by former television host Yair Lapid, seen winning 13 seats.

"All our lives we voted Likud, but today we voted for Lapid because we want a different coalition," said Ahuva Heled, 55, a retired teacher voting with her husband north of Tel Aviv.

Lapid has not ruled out joining a Netanyahu cabinet, but is pushing hard for ultra-Orthodox Jews to do military service - a demand fiercely rejected by some allies of the prime minister.

Israel's main opposition party, Labour, which is seen capturing up to 17 seats, has already ruled out a repeat of 2009, when it initially hooked up with Netanyahu, promising to promote peace negotiations with the Palestinians.

U.S.-brokered talks collapsed just a month after they started in 2010 following a row over settlement building, and have lain in ruins ever since. Netanyahu blamed the Palestinians for the failure and says his door remains open to discussions.

Palestinian President Mahmoud Abbas says he won't return to the table unless there is a halt to settlement construction.

That looks unlikely, with Netanyahu approving some 11,000 settler homes in December alone, causing further strains to his already notoriously difficult relations with U.S. President Barack Obama, who was sworn in for a second term on Monday.

IRAN THREAT

Tuesday's vote is 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.

If he wins on Tuesday, he will seek to put Iran back to the top of the global agenda. Netanyahu has said he will not let Tehran enrich enough uranium to make a single nuclear bomb - a threshold Israeli experts say could arrive as early as mid-2013.

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

The issue has 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.

One of the first problems to face the next government, which is unlikely to take power before the middle of next month at the earliest, 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.

(Additional reporting by Ori Lewis, Jeffrey Heller and Tova Cohen; Editing by Alistair Lyon)

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SGX's Q2 net profit rises 17% to S$76m

SINGAPORE : Rising interest in derivatives trading helped lift earnings for the Singapore Exchange (SGX) last quarter.

Asia's second-largest bourse operator reported a 17 per cent on-year rise in second-quarter net profit to S$76 million.

It also attracted a large number of new bond listings in the same quarter.

Derivatives trading has been the star performer in SGX.

Over the October to December quarter, derivatives daily average volume on SGX hit a record of 358,532 contracts, up 30 per cent on-year.

This was supported by rising trading interests in China A50 futures and Japan Nikkei 225 options.

Not to be undone, the securities market performed well too.

Its daily average volume rose 8 per cent for the quarter to hit a trading value of S$1.2 billion.

This translates to a revenue of S$58 million for the securities business segment.

SGX said the better performance was due to improvements in investor sentiment following stability over the Europe debt situation and improved US economy.

Magnus Bocker, chief executive officer of Singapore Exchange, said: "We should remember the enormous amount of liquidity in the market. Not so much in the equity market, but actually more in the fixed income and currency markets, and with chasing yields and lot of very successful and growing companies, I think we can all expect this sentiment to continue. I think we can expect more flows into securities."

Some analysts are bullish on SGX's prospects going forward.

The said the improved investment climate globally may benefit the exchange operator.

Ken Ang, investment analyst at Phillip Securities Research, said: "SGX is very well placed to benefit from this increasing attractiveness of the equity market and therefore resulting in increase in trading value."

SGX attracted eight new listings in its second quarter - raising S$798.9 million.

While the number seems small, it came amid declines in the global initial public offering (IPO) market.

In 2012, global IPO volumes fell 27 per cent, with the lowest level of funds raised since 2009.

Kenneth Ng, head of Singapore research at CIMB Research, said: "I think while that (derivative) is great and that diversified the revenue of SGX, SGX still has a rather pertinent problem of trying to increase the security turnover velocity and value by retail initiatives, attracting listings and so forth."

Apart from seeking more IPOs, SGX also attracted some 90 new bond listings, raising S$39.7 billion for the quarter.

- CNA/ms

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iPhone to shed market share this quarter, says analyst

Apple's iPhone 5

(Credit:
CNET)

The iPhone may be in store for a tough quarter, according to one analyst.

Apple will give up some of its smartphone market share this quarter, "raising concern about the on-going dominance of the iPhone," Citi analyst Glen Yeung said in an investors note out today. He cited strong demand for Samsung devices as the reason.

Recent reports say that Apple slashed iPhone 5 component orders for the current quarter, triggering concerns that demand for the flagship phone has diminished. Several analysts believe such concerns are overblown, instead attributing the cuts to improved manufacturing yields for the latest iPhone.

But Yeung thinks the cuts may be due to rougher competition.

"Our checks mid-December revealed initial signs of order cuts from Apple, now evident across a larger array of suppliers," the analyst said. "We acknowledge the true nature of these cuts is as yet inconclusive, but we suspect they reflect growing demand for competitive offerings (e.g. Samsung), particularly outside the U.S."

Assuming the cuts signal the likely number of shipments, Yeung sees iPhone units sales of 35 million this quarter. That's below Wall Street's consensus of around 42 million.

Will Apple bounce back in the June quarter if it releases an iPhone 5S? Yeung doesn't see that in his crystal ball.

"Based on our understanding of the iPhone5S (same form factor), we do not view the forthcoming launch (scheduled for C2Q13) as a catalyst for market share regain," the analyst said.

Regardless, Apple's December quarter should prove fruitful. Tomorrow, the company will reveal results for the final quarter of 2012. Yeung thinks iPhone sales could reach or even beat Wall Street's forecast of 45 million to 50 million, thanks largely to manufacturing improvements from October to December.

Meanwhile, the
iPad is a mixed bag, according to the analyst.

iPad Mini sales have been strong. Though limited by supply, manufacturing builds of the small
tablet are expected to rise between 20 percent and 40 percent in the next quarter.

However, demand for the Mini's larger cousin has weakened. Sales of the 9.7-inch tablet are forecast at 13 million for the current quarter. But Yeung's supply chain checks say production will drop by 30 percent to 40 percent next quarter.

Looking at the year ahead, Citi expects Apple to unveil the iPhone 5S in June, followed by a Retina Display
iPad Mini, an iPad 5, and a low-end iPhone in September.

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U.K. grandma gets death sentence in Bali

BALI An Indonesian court sentenced a British grandmother to death on Tuesday for smuggling cocaine worth $2.5 million in her suitcase onto the resort island of Bali — even though prosecutors had sought only a 15-year sentence.

Lindsay June Sandiford, 56, wept when judges handed down the sentence and declined to speak to reporters on her way back to prison, covering her face with a floral scarf. She had claimed in court that she was forced into taking the drugs into the country by a gang that was threatening to hurt her children.

Indonesia, like many Asian countries, is very strict on drug crimes, and most of the more than 40 foreigners on its death row were convicted of drug charges.

Sandiford's lawyer said she would appeal. Appeals take several years, and the country has not carried out an execution since 2008, when 10 people were put to death.

A verdict is expected in the trial of Sandiford's alleged accomplice, British man Julian Anthony Pounder, on Wednesday. He is accused of receiving the drugs in Bali, which has a busy bar and nightclub scene where party drugs such as cocaine and ecstasy are bought and sold between foreigners. Two other British citizens and an Indian have already been convicted and sentenced to prison in connection with the bust.

In its verdict, a judge panel at the Denpasar District Court concluded that Sandiford had damaged the image of Bali as a tourism destination and weakened the government's drug prevention program.

"We found no reason to lighten her sentence," said Amser Simanjuntak, who headed the judicial panel.

Prosecutors had been seeking a 15-year prison sentence for Sandiford, who was arrested in May when customs officers at Bali's airport discovered 8.4 pounds of cocaine in the lining of her luggage.

State prosecutor Lie Putra Setiawan told reporters that the verdict was "appropriate," explaining that prosecutors had been demanding 15 years because of Sandiford's age.

Indonesia has 114 prisoners on death row, according to a March 2012 study by Australia's Lowy Institute for International Policy. Five foreigners have been executed since 1998, all for drug crimes, according to the institute.

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Group Finds More Fake Ingredients in Popular Foods

It's what we expect as shoppers—what's in the food will be displayed on the label.

But a new scientific examination by the non-profit food fraud detectives the U.S. Pharmacopeial Convention (USP), discovered rising numbers of fake ingredients in products from olive oil to spices to fruit juice.

"Food products are not always what they purport to be," Markus Lipp, senior director for Food Standards for the independent lab in Maryland, told ABC News.

In a new database to be released Wednesday, and obtained exclusively by ABC News today, USP warns consumers, the FDA and manufacturers that the amount of food fraud they found is up by 60 percent this year.

USP, a scientific nonprofit that according to their website "sets standards for the identity, strength, quality, and purity of medicines, food ingredients, and dietary supplements manufactured, distributed and consumed worldwide" first released the Food Fraud Database in April 2012.

The organization examined more than 1,300 published studies and media reports from 1980-2010. The update to the database includes nearly 800 new records, nearly all published in 2011 and 2012.

Among the most popular targets for unscrupulous food suppliers? Pomegranate juice, which is often diluted with grape or pear juice.

"Pomegranate juice is a high-value ingredient and a high-priced ingredient, and adulteration appears to be widespread," Lipp said. "It can be adulterated with other food juices…additional sugar, or just water and sugar."

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Lipp added that there have also been reports of completely "synthetic pomegranate juice" that didn't contain any traces of the real juice.

USP tells ABC News that liquids and ground foods in general are the easiest to tamper with:

• Olive oil: often diluted with cheaper oils


• Lemon juice: cheapened with water and sugar


• Tea: diluted with fillers like lawn grass or fern leaves


• Spices: like paprika or saffron adulterated with dangerous food colorings that mimic the colors

Milk, honey, coffee and syrup are also listed by the USP as being highly adulterated products.

Also high on the list: seafood. The number one fake being escolar, an oily fish that can cause stomach problems, being mislabeled as white tuna or albacore, frequently found on sushi menus.

National Consumers League did its own testing on lemon juice just this past year and found four different products labeled 100 percent lemon juice were far from pure.

"One had 10 percent lemon juice, it said it had 100 percent, another had 15 percent lemon juice, another...had 25 percent, and the last one had 35 percent lemon juice," Sally Greenberg, Executive Director for the National Consumers League said. "And they were all labeled 100 percent lemon juice."

Greenberg explains there are indications to help consumers pick the faux from the food.

"In a bottle of olive oil if there's a dark bottle, does it have the date that it was harvested?" she said. While other products, such as honey or lemon juice, are more difficult to discern, if the price is "too good to be true" it probably is.

"$5.50, that's pretty cheap for extra virgin olive oil," Greenberg said. "And something that should raise some eyebrows for consumers."

Many of the products USP found to be adulterated are those that would be more expensive or research intensive in its production.
"Pomegranate juice is expensive because there is little juice in a pomegranate," Lipp said.

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37 foreigners killed in Algeria hostage crisis: PM

ALGIERS: Thirty-seven foreigners of eight different nationalities were killed during the hostage crisis at an Algerian gas plant that was overrun by Islamist gunmen, Prime Minister Abdelmalek Sellal said on Monday.

"Thirty-seven foreigners of eight different nationalities," were killed during the four-day siege, Sellal told a news conference in Algiers, without specifying their nationalities.

One Algerian also lost his life, bringing the giving an overall toll of 38, while five foreigners were still missing, he added.

Among those that other official sources have already confirmed to have died in the siege were one Frenchman, one American, two Romanians, three Britons, six Filipinos and seven Japanese.

During the army's final assault on the plant, Sellal said the remaining gunmen executed several hostages by shooting them in the head.

The interior ministry had on Saturday given a preliminary toll of 23 foreign and Algerian hostages killed during the siege, which ended on Saturday with Algerian forces storming the remaining part of the complex still in militant hands.

The ministry said 685 Algerian and 107 foreign hostages were freed.

Sellal also said that the 32 militants who overran the In Amenas gas facility, taking hundreds of workers hostage, came from northern Mali. Twenty-nine of them were killed and three arrested.

He said the group's leader was Mohamed el-Amine Bencheneb, an Algerian militant known to the country's security services, and that he was killed during the army's assault.

As well as the three Algerians among them, the kidnappers had six foreign nationalities, namely Canadian, Egyptian, Tunisian, Malian, Nigerian and Mauritanian.

- AFP/xq

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Flacco leads Ravens past Pats for Super Bowl bid

FOXBOROUGH, Mass. Joe Flacco outdueled Tom Brady, throwing three touchdown passes in the second half and leading the Baltimore Ravens to their first Super Bowl in 12 years with a 28-13 victory over the New England Patriots on Sunday for the AFC championship.

Jim Harbaugh, left, and John Harbaugh

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Getty Images

The win sets up the first Super Bowl coached by brothers, Baltimore's John Harbaugh and San Francisco's Jim. The 49ers won the NFC title earlier Sunday 28-24 at Atlanta.

The 49ers have been listed as 5-point favorites.

Baltimore linebacker Ray Lewis' final season will conclude in two weeks in New Orleans; he was the MVP of the 2001 game, the Ravens' only Super Bowl win.

Flacco had two touchdown passes to Anquan Boldin and one to Dennis Pitta as the Ravens outscored the Patriots 21-0 in the second half. Baltimore's defense made Brady look ordinary and stymied the league's top offense. Brady was 67-0 at home when leading at halftime.

23 Photos

2013 NFL Postseason: Conference Title Games

Flacco's three touchdown passes came in just over 10 minutes in the second half. He connected with Bolden for two TDs in the first four minutes of the fourth quarter — a 3-yarder and an 11-yarder — after hitting Pitta with a 5-yard strike with 6:14 left in the third.

The Ravens (13-6) gained just 130 yards in the first half before Flacco guided them on scoring drives of 87 and 63 yards.

New England (13-5) suffered three injuries in the first half. Cornerback Aqib Talib hurt his thigh and defensive tackle Kyle Love injured his knee. The return of both starters was questionable. Backup safety Patrick Chung was helped off the field after one play.

The Patriots played without tight end Rob Gronkowski, who broke his left arm a week earlier in their 41-28 divisional win over the Houston Texans.

Stephen Gostkowski had given the Patriots a 3-0 lead with a 31-yard field goal with 6:21 left in the first quarter. But the Ravens went ahead on Ray Rice's 2-yard touchdown run with 9:28 to go in the second.

Wes Welker then scored with just over 4 minutes remaining in the half on a 1-yard pass from Brady and the Patriots increased their lead on Gostkowski's 25-yard field goal on the final play before intermission.

New England outgained Baltimore 214 yards to 130 in the half. Brady completed 14 of 24 passes for 139 yards, while Flacco went 6 for 12 for 81 yards. Neither team committed a turnover.

The scoring pass to Bolden ended a drive on which Flacco completed five of six passes, the longest a 23-yarder to Torrey Smith.

The touchdown by Pitta capped the Ravens' best drive of the game, covering 87 yards in 10 plays. It started with a 15-yard defensive pass interference penalty. Then, Flacco completed six of his other nine passes on the series. Three of them went for first downs — 22 yards to Pitta, 15 to Rice and 12 to Bolden that gave the Ravens a first-and-goal at the Patriots 10-yard line.

Flacco then connected with Pitta for a 5-yard pass and finished the drive with another 5-yarder to Pitta, who easily beat single coverage by safety Steve Gregory.

The Patriots began the scoring on Gostkowski's kick, ending a 13-play, 67-yard drive during which Brady completed five of seven passes for 55 yards.

Rice's touchdown ended a 13-play, 90-yard drive that lasted 5:51. Flacco threw completions for first downs of 17 yards to Pitta, 11 yards to Rice, 8 yards to Bernard Pierce and 25 yards to Smith. With a first down at the Patriots 15-yard line, Rice ran for 8 and 5 yards, giving the Ravens a first down at the 2.

After Flacco threw an incompletion out of bounds, Rice took a handoff, ran to the left and scored easily.

Welker's touchdown came 4:18 before intermission and capped an 11-play, 79-yard drive. He scored on a pass to the right as cornerbacks Corey Graham and Chykie Brown appeared to get crossed up on their assignments.

On the first play of the series, Baltimore's Dannell Ellerbe was penalized 15 yards for a blow to the head. Then a 24-yard completion from Brady to Welker gave the Patriots a first down at the Ravens 16-yard line.

Both teams punted on their first possession before the Patriots began their scoring drive at their 21-yard line after a 50-yard punt by Sam Koch.

The Patriots began the series with Brady's 8-yard completion to Brandon Lloyd. The pair teamed up for three completions, gaining 37 yards, on the drive.

The Ravens punted on their first three possessions in the first quarter. The Patriots punted on three of their four series, forcing Baltimore to start deep in its territory.

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Veteran jihadist claims bloody Algeria siege for al Qaeda

ALGIERS/IN AMENAS, Algeria (Reuters) - A veteran Islamist fighter claimed responsibility on behalf of al Qaeda for the Algerian hostage crisis, a regional website reported on Sunday, tying the bloody desert siege to France's intervention across the Sahara in Mali.

Algeria said it expected to raise its preliminary death tolls of 23 hostages and 32 militants killed in the four-day siege at a gas plant deep in the Sahara.

Western governments whose citizens died nevertheless held back from criticizing tactics used by their ally in the struggle with Islamists across the vast desert.

"We in al Qaeda announce this blessed operation," Mokhtar Belmokhtar said in a video, according to the Sahara Media website, which quoted from the recording but did not immediately show it.

"We are ready to negotiate with the West and the Algerian government provided they stop their bombing of Mali's Muslims," said Belmokhtar, a one-eyed veteran guerrilla who fought in Afghanistan in 1980s and in Algeria's civil war in the 1990s.

Belmokhtar's fighters launched their attack on the In Amenas gas plant before dawn on Wednesday, just five days after French warplanes began strikes to halt advances by Islamists in neighboring northern Mali.

European and U.S. officials say the raid was almost certainly too elaborate to have been planned in so short a time, although the French campaign could have been one trigger for fighters to launch an assault they had already prepared.

"We had around 40 jihadists, most of them from Muslim countries and some even from the West," Sahara Media quoted Belmokhtar as saying. Algerian officials say Belmokhtar's group was behind the attack but he was not present himself.

Some Western governments have expressed frustration at not being informed in advance of the Algerian authorities' plans to storm the complex. However, Britain and France both defended the Algerian action in public.

"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. They had to deal with terrorists," French Foreign Minister Laurent Fabius said.

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."

OIL VULNERABILITIES EXPOSED

The Islamists' assault 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 centre stage.

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

France especially needs close cooperation from Algeria to have a chance of crushing Islamist rebels in northern Mali. Algiers has promised to shut its porous 1,000-km border with Mali to prevent al Qaeda-linked insurgents simply melting away into its empty desert expanses and rugged mountains.

Algeria's permission for France to use its airspace, confirmed by Fabius last week, also makes it much easier to establish direct supply lines for its troops which are trying to stop the Islamist rebels from taking the whole of Mali.

Algeria's Interior Ministry had reported on Saturday that 23 hostages and 32 militants were killed during the assaults launched by Algerian special forces to end the crisis, with 107 foreign hostages and 685 Algerian hostages freed.

Minister of Communication Mohamed Said said the toll would rise when final numbers were issued in the next few hours: "I am afraid unfortunately to say that the death toll will go up," Said was quoted as saying by the official APS news agency.

Private Algerian television station Ennahar said on Sunday that 25 bodies had been discovered at the Tiguentourine plant, adding that the operation to clear the base would last 48 hours.

The bodies were believed to belong to hostages executed by the militants, said Ennahar TV, which is known to have good sources within Algerian security.

With so much still unknown about the fates of foreigners held at the sites, countries that have faced casualties have yet to issue full counts of the dead. The plant was run jointly by Britain's BP and Norway's Statoil with the Algerian state oil company. A Japanese engineering firm and a French catering company also operated there.

In London, Cameron said three British nationals were confirmed killed and another three plus a British resident were also believed to be dead. One American has been confirmed killed. Statoil says five Norwegians are missing. Japanese and French citizens are also among those missing or presumed dead.

MULTINATIONAL HOSTAGE-TAKERS

Said reported that the militants had six different nationalities and the operation to clear the plant of mines laid by the hostage-takers was still under way.

Believed to be among the 32 dead militants was their leader, Abdul Rahman al-Nigeri, a Nigerien close to Belmokhtar.

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 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, Daniel Flynn in Dakar; Writing by David Stamp; Editing by Peter Graff)

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No more measures for Greece if reforms carried out: Lagarde

ATHENS: No additional measures would be necessary for Greece if it carries out the reforms under its bailout programme, IMF chief Christine Lagarde said in an interview with the Sunday edition of Kathimerini.

"But if the structural reforms are not carried out... then more cuts would be necessary," the head of the International Monetary Fund told the Greek newspaper.

Entering a sixth year straight of recession, the heavily indebted country is relying on EU-IMF bailout packages.

It also received a private-sector debt cut early last year. Since 2010, the EU and IMF have committed 240 billion euros ($320 billion) in rescue loans to Greece, while last week the IMF unblocked a frozen tranche of 3.2 billion euros from its pending aid package.

"Greece holds its future in its own hands... It is up to the country itself to succeed in its programme," Lagarde said.

The IMF chief said she had a very good working relationship with both the Greek prime minister and finance minister.

Prime Minister Antonis Samaras and I "have a very good and honest relationship," she said, adding that the premier has even "surprised" her with his stance following his election.

Lagarde also said she believed the co-existence of three different parties in Greece's coalition government is beneficial.

"Regarding the implementation of the programme and the responsibilities towards the people, a wide coalition is much more important than a tight majority," she said.

Conservative Prime Minister Antonis Samaras's coalition government has lost 16 deputies since coming to power in June, as a result of opposition to continued austerity.

It now counts a majority of 163 seats out of an overall 300.

On Friday, the IMF's mission chief for Greece Poul Thomsen said the country will still need additional help from its European partners next year.

- AFP/fa

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WikiLeaks says Aaron Swartz may have been a 'source'

WikiLeaks said late yesterday that recently deceased Internet activist Aaron Swartz assisted the organization, was in contact with Julian Assange, and may have been one of the organization's sources.

Reached in Iceland on Saturday evening, California time, WikiLeaks representative Kristinn Hrafnsson confirmed to CNET that the tweets were authentic but declined to elaborate.

In the tweets, the organization said it was revealing the information "due to the investigation into the Secret Service involvement" with Swartz.

Here are screenshots of the tweets:

The phrasing of the last tweet ("strong reasons to believe, but cannot prove") may be related to the precautions WikiLeaks says it takes to ensure its sources' anonymity. WikiLeaks' policy says:

...we operate a number of servers across multiple international jurisdictions and we we do not keep logs. Hence these logs can not be seized. Anonymization occurs early in the WikiLeaks network, long before information passes to our web servers. Without specialized global internet traffic analysis, multiple parts of our organisation must conspire with each other to strip submitters of their anonymity.

The Secret Service has a legal mandate to investigate computer crime, a task it shares with the FBI and other federal agencies, which the agency describes including "unauthorized access to protected computers" -- which Swartz is alleged to have been guilty of. It also investigates forgery, identity fraud, visa fraud, money laundering, food stamp fraud, wire fraud, and a host of other federal offenses.

It would not be unusual, in other words, for the Secret Service to be involved in a criminal probe of Swartz's alleged bulk downloading from the JSTOR database. Some other examples: The Secret Service, which is now part of the Department of Homeland Security, has investigated an artist who installed photo-taking software in Apple stores, a credit card theft ring, spyware installed on college campuses, and a possible theft of GOP candidate Mitt Romney's income tax returns.

The ambiguous WikiLeaks tweets have prompted speculation about what the group was trying to suggest. The Verge's Tim Carmody wrote that "the aim of these tweets could be to imply that the US Attorney's Office and Secret Service targeted Swartz in order to get at WikiLeaks, and that Swartz died still defending his contacts' anonymity. Taking that implied claim at face value would be irresponsible without more evidence." And blog emptywheel wrote that if true, the tweets "strongly indicate" that "the US government used the grand jury investigation into Aaron's JSTOR downloads as a premise to investigate WikiLeaks."

Until WikiLeaks elaborates on what it intended to say by highlighting the Secret Service's involvement, and provides supporting evidence, it will be difficult to draw any conclusions.

After confirming the authenticity of the tweets, WikiLeaks representative Hrafnsson asked that we contact him later with any further questions. We'll do that and let you know what we find out.

It seems the only thing that's now certain is that criticisms of, and speculation about, the government's handling of the Swartz-Jstor case isn't likely to die down overnight.

CNET's Declan McCullagh contributed to this report.

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