Kansas robber recognizes victim from prison, gives wallet back

KANSAS CITY, Kansas (Reuters) – A Kansas robber who helped seize a man’s cell phone and wallet at gunpoint recognized the victim as an ex-convict he had served time with and gave the possessions back, police said on Thursday.

A Wichita, Kansas man reported that two young men approached him on the street late on Wednesday, one of them brandishing a large semi-automatic handgun, Wichita police Sergeant Joe Schroeder said.

The gunman demanded the victim’s phone and took his wallet while the second man searched his pockets, Schroeder said.

“Then, he (the second man) realized he spent some time in prison with him. He apologized, shook hands and walked away,” Schroeder said.

Although the victim went to police and said he knew one of the robbers in prison, the man said he did not think he could identify them in a suspect line-up, Schroeder said.

(Editing by Greg McCune and Eric Walsh)

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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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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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Body found near burned Gulf oil rig

NEW ORLEANS (AP) -- Divers hired by the owner of an oil platform in the Gulf of Mexico that caught fire recovered a body in the waters near the site Saturday evening, according to the U.S. Coast Guard and the rig's owner.

Coast Guard spokesman Carlos Vega said late Saturday that the remains of the unidentified person were found by divers hired by Houston-based Black Elk Energy, who were inspecting the platform. Vega said the Coast Guard would be turning over the remains to local authorities.

John Hoffman, the president and CEO of Black Elk Energy, wrote in an email late Saturday that the body is apparently that of one of two crew members missing since an explosion and fire on the oil platform Friday morning. Hoffman said the body was found by a contract dive vessel at 5:25 p.m. CST.

"Divers will continue to search for the second missing worker," Hoffman wrote. "Our thoughts and prayers are with the families."

Hoffman said the body was found close to the leg of the platform, near where the explosion occurred, in about 30 feet of water. He said the missing men were employees of oilfield contractor Grand Isle Shipyard.

"We have notified next of kin of all individuals involved, but in respect for their families and their privacy, we will not be releasing their names," GIS CEO Mark Pregeant said in a statement, according to WWL-TV in New Orleans.

The news came shortly after the Coast Guard suspended a 32-hour-long search for the two missing workers that covered 1,400 square miles (3626 sq. kilometers) near the oil platform, located about 20 miles (40 kilometers) southeast of Grand Isle, La.

"We have saturated the search area several times — the 1400-square-foot area," Vega said. "We saw no signs of life. We have suspended the search... pending further development. If we receive any credible information that there are signs of life, we can resume the search at any time."

Four other workers who were severely burned remained at Baton Rouge General Medical Center on Saturday night.

Coast Guard Chief Petty Officer Bobby Nash said the Guard's search was ended early Saturday evening. Helicopters and a fixed-wing aircraft had been searching by air, while cutters and boat crews searched the sea.

The blaze erupted Friday morning while workers were using a torch to cut an oil line on the platform, authorities said.

Pregeant stressed in his statement that the cause of the fire and explosion is unknown, and said "initial reports that a welding torch was being used at the time of the incident or that an incorrect line was cut are completely inaccurate."

Four workers were severely burned, though Black Elk Energy spokeswoman Leslie Hoffman said their burns were not as extensive as initially feared.

Officials at Baton Rouge General Medical Center said Saturday that two men remained in critical condition, while two men remained in serious condition. The four, being treated in a burn unit, are also employees of Grand Isle Shipyard and are from the Philippines. The hospital said it and Grand Isle Shipyard are trying to reach the men's families in the Philippines.

Grand Isle Shipyard employed 14 of the 22 workers on the platform at the time of the explosion, WWL-TV reported. A man who answered the phone at the company's Galliano, La., office on Saturday said no one was available to comment.

Separate from the accident, Grand Isle Shipyard is facing a lawsuit by a group of former workers from the Philippines who claim they were confined to cramped living quarters and forced to work long hours for substandard pay. The lawsuit was filed in late 2011 in a Louisiana federal court and is pending. Lawyers for the company have said the workers' claims are false and should be dismissed.

Meanwhile, officials said no oil was leaking from the charred platform, a relief for Gulf Coast residents still weary two years after the BP oil spill illustrated the risk that offshore drilling poses to the region's ecosystem and economy.

Friday's fire sent an ominous black plume of smoke into the air reminiscent of the deadly 2010 Deepwater Horizon explosion that transformed the oil industry and life along the U.S. Gulf Coast

James A. Watson, the director of Louisiana's Bureau of Safety and Environmental Enforcement, said in a statement Saturday that his agency had begun "an investigation into the explosion and fire aboard a Black Elk Energy production platform offshore Louisiana."

"BSEE is committed to determining the direct and indirect causes of the explosion and will take appropriate enforcement action," he said.

The Deepwater Horizon blaze killed 11 workers and led to an oil spill that took months to bring under control. Friday's fire came a day after BP PLC agreed to plead guilty to a raft of charges in the 2010 spill and pay a record $4.5 billion in penalties.

There were a few important differences between this latest blaze and the one that touched off the worst offshore spill in U.S. history: Friday's fire was put out within hours, while the Deepwater Horizon burned for more than a day, collapsed and sank.

The Black Elk Energy facility is a production platform in shallow water, rather than an exploratory drilling rig like the Deepwater Horizon looking for new oil on the seafloor almost a mile (1.6 kilometers) deep.

The depth of the 2010 well blow-out proved to be a major challenge in bringing the disaster under control.

The Black Elk Energy platform is in 56 feet (17 meters) of water — a depth much easier for engineers to manage if a spill had happened.

A sheen of oil about a half-mile (800 meters) long and 200 yards (180 meters) wide was reported on the Gulf surface, but officials believe it came from residual oil on the platform.

"It's not going to be an uncontrolled discharge from everything we're getting right now," Coast Guard Capt. Ed Cubanski said.

Hoffman, the Black Elk Energy spokeswoman, said Saturday that there were still no signs of any leak or spill at the platform site.

BP's blown-out well spewed millions of gallons (liters) of oil into the sea, about 50 miles (80 kilometers) southeast of the mouth of the Mississippi River on the east side of the river delta. The crude fouled beaches, marshes and rich seafood grounds.

After Friday's blaze, 11 people were taken by helicopter to area hospitals or for treatment on shore by emergency medical workers.

The production platform is on the western side of the Mississippi River delta.

"This platform was not in operation and had been shut in since mid-August," Black Elk officials said in a news release Saturday.

Cubanski said the platform appeared to be structurally sound. He said only about 28 gallons (106 liters) of oil were in the broken line on the platform.

David Smith, a spokesman for the Interior Department's Bureau of Safety and Environmental Enforcement in Washington, said an environmental enforcement team was dispatched from a Gulf Coast base by helicopter soon after the Coast Guard was notified of the emergency. Smith said the team would scan for any evidence of oil spilling and investigate the cause of the explosion.

Black Elk Energy is an independent oil and gas company. The company's website says it holds interests in properties in Texas and Louisiana waters, including 854 wells on 155 platforms.

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Associated Press writers Kevin McGill in New Orleans and Jeff Amy in Jackson, Miss., and Norman Gomlak and Greg Schreier in Atlanta contributed to this story.

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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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“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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Rising obesity strains Europe’s shrinking health budgets

LONDON (Reuters) – More than half of Europeans are obese or overweight, adding significant pressure to healthcare costs at a time when spending is being cut by governments, the OECD and European Commission said on Friday.

On average across the European Union, health spending per capita rose by 4.6 percent a year in real terms between 2000 and 2009, but fell 0.6 percent in 2010.

In a report on health across the 27-nation bloc, the Paris-based Organisation for Economic Co-operation and Development and the Brussels-based Commission, said 52 percent of adults in the EU are now overweight or obese.

The report blamed physical inactivity and the widespread availability of energy-dense, sugary and fatty foods.

In 18 countries out of the 27 member states, the proportion of overweight and obese adults now exceeds 50 percent and the obesity rate, at 17 percent on average across the region, has doubled since 1990 in many countries.

“(The rise) is a major public health concern,” the report said. “Because obesity is associated with higher risks of chronic illnesses, it is linked to significant additional healthcare costs.”

The report noted that the growing cost burden coincided with governments around Europe cutting spending to reduce the debts left over from the 2008 financial crisis.

“Spending had already started to fall in 2009 in countries hardest hit by the economic crisis,” it said. “But this was followed by deeper cuts in 2010 in response to growing budgetary pressures and rising debt-to-GDP ratios.”

As a result, EU members spent an average of 9.0 percent of their GDP on health in 2010, up from 7.3 percent in 2000, but down from a peak of 9.2 percent in 2009.

The Netherlands was the highest, devoting 12 pct of its gross domestic product to health in 2010, followed by France and Germany, both at 11.6 percent.

The rate of obesity in France is close to twice what it was in 1990 but at 12.9 percent it is still less than half the rate in Britain of 26.1 percent.

The risk of diseases such as diabetes, hypertension, heart disease, asthma, arthritis and some forms of cancer is increased by obesity.

Although it was affecting all populations, obesity tended to be worse among the poor and less well educated, and was more prevalent in women than men.

People with a body mass index (BMI) of 25 to 30 are classed as overweight while those at 30 or higher are obese. BMI is formula of weight and height that differs slightly depending on whether it is done in kilograms and meters or pounds and inches.

Despite the fall in health spending, life expectancy in the EU continued to rise and stood at an average 79 years in 2010, up more than six years since 1980.

This was driven by improved living and working conditions as well as better access to higher quality healthcare.

But Yves Leterme, the OECD Deputy Secretary-General, and Paola Testori Coggi, head of the Commission’s directorate for health, had a warning for EU governments.

“If the report does not yet show any worsening health outcomes due to the crisis, there is no cause for complacency – it takes time for poor social conditions or poor quality care to take its toll from people’s health,” they said in a joint foreword to the report.

(Editing by Jeremy Gaunt)

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Israel holding fire during Egypt premier's visit to Gaza

JERUSALEM (AP) — Israel offered to suspend its offensive in the Gaza Strip on Friday during a brief visit by Egypt's premier there if militants refrain from firing rockets at Israel, an official said, but the Palestinians unleashed a fresh salvo.

An official in Prime Minister Benjamin Netanyahu's office said the Israeli leader was responding to an Egyptian request.

Gaza militants stepped up their barrages of rocket fire into Israel as Hesham Kandil crossed into Gaza before midday through the only border post with Egypt, heavily guarded by Egyptian security personnel wearing flak jackets and carrying assault rifles.

He was greeted by Gaza's Hamas prime minister, Ismail Haniyeh, who ventured out in public for the first time since Israel launched the offensive Wednesday by assassinating the militant group's military commander.

Israel told the Egyptians the military "would hold its fire on the condition that during that period, there won't be hostile fire from Gaza into Israel," the Israeli official said. "Prime Minister Netanyahu is committed to the peace treaty with Egypt, which is in the strategic interest of both countries," he added, speaking on condition of anonymity to discuss the diplomatic exchange.

There were no immediate reports of Israeli retaliation for the latest salvo. Israeli police spokesman Micky Rosenfeld said the militants were making a clear statement. "There's no intention whatsoever to stop firing into Israel," he said.

Three days of fierce fighting between Israel and Gaza militants has widened the instability gripping the region, straining already frayed Israel-Egypt relations. The Cairo government recalled its ambassador in protest.

Egypt said Kandil's three-hour visit Friday was meant as a show of solidarity with the Palestinian territory's militant Hamas rulers.

Egyptian intelligence officials involved in negotiations to end previous rounds of fighting are accompanying Kandil on his visit, an Egyptian diplomat said, suggesting it was more than a display of support.

The diplomat said Gaza militants have told Egyptian intelligence officials they would be willing to hold their fire if Israel would commit to mediation to stop its military operation and targeted killings.

Word of the possible pause in the fighting came after a night of fierce exchanges and signals that Israel might be preparing to invade Gaza. Overnight, the military said it targeted about 150 of the sites Gaza gunmen use to fire rockets at Israel, as well as ammunition warehouses, bringing to 450 the number of sites struck since the operation began Wednesday.

Israeli troops, tanks and armored personnel carriers massed near the Palestinian territory, signaling a ground invasion might be imminent.

Militants unleashed dozens of rocket barrages overnight.

Fighting between the two sides escalated sharply Thursday with a first-ever rocket attack from Gaza on the Tel Aviv area, menacing Israel's most densely populated area. No casualties were reported there, but three people died in the country's rocket-scarred south when a projectile slammed into an apartment building.

The death toll in Gaza was 19, including five children, according to Palestinian health officials.

Early Friday, 85 missiles exploded within 45 minutes in Gaza City, sending black pillars of smoke towering above the coastal strip's largest city. The military said it was targeting underground rocket-launching sites.

One missile flattened sections of the Interior Ministry, leaving a huge pile of rubble, and another hit an uninhabited house belonging to a senior Hamas commander. Those strikes, together with an attack on a generator building near Haniyeh's home, signaled that Israel was expanding its offensive beyond military targets.

Ten-month-old Haneen Tafesh was killed Thursday when flying shrapnel from an air attack on a field next to her family's shack struck her in the head.

"What did she do? Did she fire any rockets?" asked her 23-year-old father, Khaled Tafesh, as he waited outside the Shifa hospital morgue in Gaza City, waiting for the funeral of his only child to begin.

Israel and Hamas had largely observed an informal truce since Israel's devastating incursion into Gaza four years ago, but rocket fire and Israeli airstrikes on militant operations continued sporadically.

The Israeli offensive has not deterred the militants from firing more than 400 rockets aimed at southern Israel, the military said. On Thursday, they also unleashed for the first time the most powerful weapons in their arsenal — Iranian-made Fajr-5 rockets capable of reaching Tel Aviv.

The two rockets that struck closest to Tel Aviv appear to have landed in the Mediterranean Sea, defense officials said, and another hit an open area on Tel Aviv's southern outskirts.

No injuries were reported, but the rocket fire sowed panic in Tel Aviv and made the prospect of a ground incursion more likely. The government later approved the mobilization of up to 30,000 reservists for a possible invasion.

Netanyahu said the army was hitting Hamas hard with what he called surgical strikes, and warned of a "significant widening" of the Gaza operation. Israel will "continue to take whatever action is necessary to defend our people," said Netanyahu, who is up for re-election in January.

At least 12 trucks were seen transporting tanks and armored personnel carriers toward Gaza late Thursday, and buses carrying soldiers headed toward the border area.

An Israeli ground offensive could be costly to both sides. In the last Gaza war, Israel devastated parts of the territory, setting back Hamas' fighting capabilities but also paying the price of increasing diplomatic isolation because of a civilian death toll numbering in the hundreds.

In the current round of fighting, the civilian casualties have been relatively low and the Israeli strikes seem to be more surgical.

In other ways, the latest hostilities are reminiscent of the first days of that three-week offensive against Hamas. Israel also caught Hamas off guard then with a barrage of missile strikes and threatened to follow up with a ground offensive.

Since then, Israel has improved its missile defense systems, but it is facing a more heavily armed Hamas. Israel estimates the militants have 12,000 rockets, including more sophisticated weapons from Iran and from Libyan stockpiles plundered after the fall of Moammar Gadhafi's regime there last year.

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Laub reported from Gaza City, Gaza Strip.

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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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