Chad says it killed Algeria hostage mastermind in Mali

N'DJAMENA (Reuters) - Chadian soldiers in Mali have killed Mokhtar Belmokhtar, the al Qaeda commander who masterminded a bloody hostage-taking at an Algerian gas plant in January, Chad's military said on Saturday.

The death of one of the world's most wanted jihadists would be a major blow to al Qaeda in the region and to Islamist rebels already forced to flee towns they had seized in northern Mali by an offensive by French and African troops.

"On Saturday, March 2, at noon, Chadian armed forces operating in northern Mali completely destroyed a terrorist base. ... The toll included several dead terrorists, including their leader Mokhtar Belmokhtar," Chad's armed forces said in a statement read on national television.

On Friday, Chad's president, Idriss Deby, said his soldiers had killed another al Qaeda commander, Adelhamid Abou Zeid, among 40 militants who died in an operation in the same area as Saturday's assault - Mali's Adrar des Ifoghas mountains near the Algerian border.

France - which has used jet strikes against the militants' mountain hideouts - has declined to confirm the killing of either Abou Zeid or Belmokhtar.

In Washington, an Obama administration said the White House could not confirm the killing of Belmokhtar.

Analysts said the death of two of al Qaeda's most feared commanders in the Sahara desert would mark a significant blow to Mali's Islamist rebellion.

"Both men have extensive knowledge of northern Mali and parts of the broader Sahel and deep social and other connections in northern Mali, and the death of both in such a short amount of time will likely have an impact on militant operations," said Andrew Lebovich, a Dakar-based analyst who follows al Qaeda in the Islamic Maghreb (AQIM).

Anne Giudicelli, managing director of security consultancy Terrorisc, said the al Qaeda commanders' deaths - if confirmed - would temporarily disrupt the Islamist rebel network but would also raise concern over the fate of seven French hostages believed to be held by Islamists in northern Mali.

Chad is one of several African nations that have contributed forces to a French-led military intervention in Mali aimed at ridding its vast northern desert of Islamist rebels who seized the area nearly a year ago following a coup in the capital.

Western and African countries are worried that al Qaeda could use the zone to launch international attacks and strengthen ties with African Islamist groups like al Shabaab in Somalia and Boko Haram in Nigeria.

'MARLBORO MAN'

Belmokhtar, 40, who lost an eye while fighting in Afghanistan in the 1990s, claimed responsibility for the seizure of dozens of foreign hostages at the In Amenas gas plant in Algeria in January in which more than 60 people were killed.

That attack put Algeria back on the map of global jihad, 20 years after its civil war, a bloody Islamist struggle for power. It also burnished Belmokhtar's jihadi credentials by showing that al Qaeda remained a potent threat to Western interests despite U.S. forces killing Osama bin Laden in Pakistan in 2011.

Before In Amenas, some intelligence experts had assumed Algerian-born Belmokhtar had drifted away from jihad in favor of kidnapping and smuggling weapons and cigarettes in the Sahara where he earned the nickname "Marlboro Man".

In a rare interview with a Mauritanian news service in late 2011, Belmokhtar paid homage to bin Laden and his successor, Ayman al-Zawahri. He cited al Qaeda's traditional global preoccupations, including Iraq, Afghanistan and the fate of the Palestinians, and stressed the need to "attack Western and Jewish economic and military interests".

He shared command of field operations for AQIM - al Qaeda's North African franchise - with Abou Zeid, although there was talk the two did not get along and were competing for power.

A former smuggler turned jihadi, Algerian-born Abou Zeid imposed a violent form of sharia, Islamic law, in the ancient desert town of Timbuktu, including amputations and the destruction of ancient Sufi shrines.

Robert Fowler, a former Canadian diplomat held hostage by Belmokhtar from 2008 to 2009, told Reuters, "While I cannot consider reports of the death of both Abou Zeid and Mokhtar Belmokhtar as anything but good news ... I must temper my enthusiasm by the fact that this is by no means the first time Belmokhtar's death has been reported."

President Francois Hollande said on Friday that the assault to retake Mali's vast desert north from AQIM and other Islamist rebels that began on January 11 was in its final stage and so could not confirm Abou Zeid's death.

A U.S. official and a Western diplomat said, however, the reports about Abou Zeid's death appeared to be credible.

U.S. Representative Ed Royce, Republican chairman of the House Foreign Affairs Committee, said the killing of Belmokhtar "would be a hard blow to the collection of jihadists operating across the region that are targeting American diplomats and energy workers."

Washington has said it believes Islamists operating in Mali were involved in the killing of the U.S. ambassador in Libya's eastern city of Benghazi in September.

After its success in dislodging al Qaeda fighters from northern Mali's towns, France and its African allies have faced a mounting wave of suicide bombings and guerrilla-style raids by Islamists in northern Malian towns.

U.N. Secretary-General Ban Ki-moon said on Friday that a U.N. peacekeeping force to replace French troops in Mali should be discussed as soon as possible.

Chad was among the quickest to respond to Mali's appeals for help alongside the French, rushing in hundreds of troops experienced in desert warfare, led by Deby's son, General Mahamat Deby.

The country's president may be hoping to polish his regional and international credentials by assisting in this war, while bolstering his own position in power in Chad, which has been threatened in the past by eastern neighbor Sudan.

(Additional reporting by John Irish and David Lewis in Dakar, Gus Trompiz in Paris, and Mark Hosenball and Mark Felsenthal in Washington; Writing by Richard Valdmanis; Editing by Robin Pomeroy and Peter Cooney)

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China village defies officials to demand democracy

SHANGPU, China: Villagers in southern China were locked in a stand-off with authorities on Sunday and were demanding democratic polls after a violent clash with thugs linked to a local official over a land transfer.

Just over a week ago, residents of Shangpu in Guangdong province fought with scores of attackers whom they claimed were sent by the village communist party chief and a business tycoon after they protested against a land deal.

Police are blockading the settlement to outsiders while residents refuse to let officials inside, days before the annual meeting of the country's legislature, the National People's Congress (NPC).

The situation recalls a similar episode in Wukan, also in Guangdong and around 100 kilometres (62 miles) from Shangpu, which made headlines worldwide 15 months ago.

At the main entrance of the village of 3,000 people, 40 police and officials stood guard, barring outside vehicles from entering. Not far away, a cloth banner read: "Strongly request legal, democratic elections."

Shangpu's two-storey houses and low-slung family-run workshops are surrounded by fields awaiting spring planting. But the main street is lined with the wrecks of cars damaged in the clash, with glass and metal littering the ground.

Residents said they should have the right to vote both for the leader who represents them and on whether to approve a controversial proposal to transform rice fields into an industrial zone.

"This should be decided by a vote by villagers," said one of the protest leaders, adding: "The village chief should represent our interests, but he doesn't."

Locals fear that once the NPC -- which starts on Tuesday -- ends, authorities will move in with force.

Chinese leaders have repeatedly ruled out Western-style democracy for the country.

"For the purpose of maintaining stability, they (authorities) don't want to use forceful measures before the meetings," another villager said. "We are afraid of them coming back."

The unidentified attackers, some of whom wore orange hard hats and red armbands, drove into the village and turned on residents with shovels and other weapons.

Villagers drove the interlopers off by hitting them with bamboo poles and throwing bricks from a nearby construction site, according to first-hand accounts and video of the incident provided to AFP.

They said they then vented their fury on the attackers' cars, overturning and smashing as many as 29 vehicles.

Residents claimed some of the group had knives and a gun. A video showed a man firing a handgun into the air and villagers said he was a plainclothes police officer trying to intercede. At least eight villagers were injured.

In Wukan in late 2011, a protest by residents against a land grab by local officials accused of corruption escalated after one of their leaders died in police custody.

Villagers barricaded roads and faced off against security forces for 10 days, until authorities backed down and promised them rare concessions. Residents were later allowed to hold open village elections -- a first in Wukan.

The people of Shangpu had heard of Wukan indirectly, and had similar demands: free elections for their leader.

They claim the current village chief Li Baoyu, who is also the party head, was foisted on them by higher authorities.

Residents allege Li fraudulently obtained signatures to support the transfer of 33 hectares (82 acres) of farmland to the Wanfeng Investment Co, backed by businessman Wu Guicun, to be used for factories producing electrical cables.

The village's ruling committee will receive compensation based on the yield of rice that would have been planted on the land. But residents fear they themselves will not be paid and say the compensation does not reflect the true value.

"Village cadres have illegally dealt in land and leased land at a low price," they said in a petition to higher officials.

In the government's only official statement on the case, Jiexi county, which administers the village, pledged to pursue those responsible for the attack and bring criminal prosecutions.

No one from Wanfeng Investment Co could be reached for comment.

- AFP/xq

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23-year-old questioned in connection with Hyderabad blasts

MUMBAI: The Maharashtra ATS, in a joint operation with the Nampally police in Karnataka, have detained a man in connection with the recent twin blasts in Hyderabad that killed 16 people.

The detainee, Shaikh Aqueel (23), originally a Bhiwandi resident, had shifted to Karnataka some time ago with his parents.

Aqueel's name cropped up while the police was inquiring into several issues including the bomb blast cases.

"Shaikh is currently getting a diploma in fire services. He was detained for his alleged association with the banned outfit, Indian Mujahideen," a source said.

"We don't know what happened or what he said during his interrogation," said a source.

Aqueel was first identified by the ATS and later in a joint operation with the Karnataka police, the ATS picked him up and brought him to its Nanded unit.

"Shaikh was questioned, not arrested," said ATS chief Rakesh Maria.

The ATS had in September busted an IM sleeper cell and arrested four persons who were planning to target fundamentalist Hindu leaders.

During that time, the Karnataka police arrested 11 persons who had some connection with the Nanded group.

The Delhi police a week before that had arrested two persons, Sayyed Maqbool and Imran Khan. The duo have admitted that they did a recee of Dilsukh Nagar, where the twin bombs exploded.

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WHO: Slight cancer risk after Japan nuke accident

LONDON (AP) — Two years after Japan's nuclear plant disaster, an international team of experts said Thursday that residents of areas hit by the highest doses of radiation face an increased cancer risk so small it probably won't be detectable.

In fact, experts calculated that increase at about 1 extra percentage point added to a Japanese infant's lifetime cancer risk.

"The additional risk is quite small and will probably be hidden by the noise of other (cancer) risks like people's lifestyle choices and statistical fluctuations," said Richard Wakeford of the University of Manchester, one of the authors of the report. "It's more important not to start smoking than having been in Fukushima."

The report was issued by the World Health Organization, which asked scientists to study the health effects of the disaster in Fukushima, a rural farming region.

On March 11, 2011, an earthquake and tsunami knocked out the Fukushima plant's power and cooling systems, causing meltdowns in three reactors and spewing radiation into the surrounding air, soil and water. The most exposed populations were directly under the plumes of radiation in the most affected communities in Fukushima, which is about 150 miles (240 kilometers) north of Tokyo.

In the report, the highest increases in risk are for people exposed as babies to radiation in the most heavily affected areas. Normally in Japan, the lifetime risk of developing cancer of an organ is about 41 percent for men and 29 percent for women. The new report said that for infants in the most heavily exposed areas, the radiation from Fukushima would add about 1 percentage point to those numbers.

Experts had been particularly worried about a spike in thyroid cancer, since radioactive iodine released in nuclear accidents is absorbed by the thyroid, especially in children. After the Chernobyl disaster, about 6,000 children exposed to radiation later developed thyroid cancer because many drank contaminated milk after the accident.

In Japan, dairy radiation levels were closely monitored, but children are not big milk drinkers there.

The WHO report estimated that women exposed as infants to the most radiation after the Fukushima accident would have a 70 percent higher chance of getting thyroid cancer in their lifetimes. But thyroid cancer is extremely rare and one of the most treatable cancers when caught early. A woman's normal lifetime risk of developing it is about 0.75 percent. That number would rise by 0.5 under the calculated increase for women who got the highest radiation doses as infants.

Wakeford said the increase may be so small it will probably not be observable.

For people beyond the most directly affected areas of Fukushima, Wakeford said the projected cancer risk from the radiation dropped dramatically. "The risks to everyone else were just infinitesimal."

David Brenner of Columbia University in New York, an expert on radiation-induced cancers, said that although the risk to individuals is tiny outside the most contaminated areas, some cancers might still result, at least in theory. But they'd be too rare to be detectable in overall cancer rates, he said.

Brenner said the numerical risk estimates in the WHO report were not surprising. He also said they should be considered imprecise because of the difficulty in determining risk from low doses of radiation. He was not connected with the WHO report.

Some experts said it was surprising that any increase in cancer was even predicted.

"On the basis of the radiation doses people have received, there is no reason to think there would be an increase in cancer in the next 50 years," said Wade Allison, an emeritus professor of physics at Oxford University, who also had no role in developing the new report. "The very small increase in cancers means that it's even less than the risk of crossing the road," he said.

WHO acknowledged in its report that it relied on some assumptions that may have resulted in an overestimate of the radiation dose in the general population.

Gerry Thomas, a professor of molecular pathology at Imperial College London, accused the United Nations health agency of hyping the cancer risk.

"It's understandable that WHO wants to err on the side of caution, but telling the Japanese about a barely significant personal risk may not be helpful," she said.

Thomas said the WHO report used inflated estimates of radiation doses and didn't properly take into account Japan's quick evacuation of people from Fukushima.

"This will fuel fears in Japan that could be more dangerous than the physical effects of radiation," she said, noting that people living under stress have higher rates of heart problems, suicide and mental illness.

In Japan, Norio Kanno, the chief of Iitate village, in one of the regions hardest hit by the disaster, harshly criticized the WHO report on Japanese public television channel NHK, describing it as "totally hypothetical."

Many people who remain in Fukushima still fear long-term health risks from the radiation, and some refuse to let their children play outside or eat locally grown food.

Some restrictions have been lifted on a 12-mile (20-kilometer) zone around the nuclear plant. But large sections of land in the area remain off-limits. Many residents aren't expected to be able to return to their homes for years.

Kanno accused the report's authors of exaggerating the cancer risk and stoking fear among residents.

"I'm enraged," he said.

___

Mari Yamaguchi in Tokyo and AP Science Writer Malcolm Ritter in New York contributed to this report.

__

Online:

WHO report: http://bit.ly/YDCXcb

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Man's Body Recovery Effort Ends; Sinkhole 'Unstable'

Authorities have discontinued the rescue effort for a Florida man who was swallowed by a sinkhole when his home's foundation collapsed and said it is unlikely his body will ever be recovered.

"We feel we have done everything we can," Hillsborough County administrator Mike Merrell said at a news conference this afternoon. "At this point, it's not possible to recover the body."

Merell said officials would bring in heavy equipment to begin demolishing the home on Sunday.

"We're dealing with a very unusual sinkhole," he said. "It's very deep. It's very wide. It's very unstable."

Jeff Bush was in his bedroom when a sinkhole opened up and trapped him underneath his home at 11 p.m. Thursday.

Two homes next door to Bush's residence were evacuated today after authorities said they had been compromised by the growing sinkhole.

With the assistance of rescuers, the homeowners will be allowed to enter their home for only 30 minutes to gather valuables, authorities said.

Rescuers returned to the site in Seffner, Fla., early this morning to conduct further testing, but decided it was too dangerous for the family initially affected by the sinkhole to enter their home, which was declared condemned.

Florida Sinkhole Opens Up Beneath Man's Home Watch Video

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While the sinkhole was initially estimated to be 15 feet deep on Thursday night, the chasm has continued to grow. Officials now estimate it measures 30 feet across and is up to 100 feet deep.

The Hillsborough County Fire Rescue has set up a relief fund for all families affected by the growing sink hole.

MORE: How Sinkholes Can Develop

Rescue operations were halted Friday night after it became too dangerous to approach the home.

Bill Bracken, an engineer with Hillsborough County Urban Search and Rescue team said the house "should have collapsed by now, so it's amazing that it hasn't."

RELATED: Florida Man Swallowed by Sinkhole: Conditions Too Unstable to Approach

Using ground penetrating radar, rescuers have found a large amount of water beneath the house, making conditions even more dangerous for them to continue the search for Bush.

Hillsborough County lies in what is known as Florida's "Sinkhole Alley." More than 500 sinkholes have been reported in the area since 1954, according to the state's environmental agency.

Meanwhile, Bush's brother, Jeremy Bush, is still reeling from Thursday night.

Jeremy Bush had to be rescued by a first responder after jumping into the hole in an attempt to rescue his brother when the home's concrete floor collapsed, but said he couldn't find him.

"I just started digging and started digging and started digging, and the cops showed up and pulled me out of the hole and told me the floor's still falling in," he said.

"These are everyday working people, they're good people," said Deputy Douglas Duvall of the Hillsborough County sheriff's office. "And this was so unexpected, and they're still, you know, probably facing the reality that this is happening."

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3 dead in new Bangladesh war crimes protests: police

CHITTAGONG, Bangladesh: Bangladesh police on Saturday opened fire at Islamists protesting the conviction for war crimes of one of their leaders, killing three people outside the port city of Chittagong.

The deaths brought the total number killed since a war crimes tribunal delivered its first verdict on January 21 to at least 56, according to police figures.

The number includes 40 who have died in the last three days, since Jamaat-e-Islami party vice president Delwar Hossain Sayedee was sentenced to death, police said.

Sayedee was found guilty on Thursday of murder, religious persecution and rape during the 1971 independence war, triggering violent clashes between rampaging Jamaat supporters and police across the country.

The 73-year-old firebrand preacher was the third person to be convicted by the war crimes tribunal, whose verdicts have been met by outrage from Islamists.

The Islamists say the process is more about settling scores than delivering justice.

The latest violence came a day after the United States called for calm in the impoverished South Asian nation.

"While engaging in a peaceful protest is a fundamental democratic right, we believe violence is never the answer," US State Department deputy acting spokesman Patrick Ventrell told reporters in Washington.

But he stressed the United States believes "it is important to bring justice to those who have committed war crimes and atrocities" while ensuring that the trials be "free, fair, transparent".

In the new clashes, police said they fired live rounds after hundreds of student activists of Jamaat barricaded a key highway and attacked officers with stones and sticks as they tried to clear the road.

"We were forced to open fire. Three people were killed in the clashes," senior Chittagong police official Rabiul Islam told AFP, adding 10 people, including policemen, were wounded.

The war crimes trials of a dozen Jamaat and main opposition Bangladesh Nationalist Party (BNP) leaders have opened old wounds and divided the nation.

The opposition has accused the government of staging a witchhunt.

The government, which says the war claimed three million lives, rejects the claims and accuses Jamaat leaders of being part of pro-Pakistani militias blamed for much of the carnage during the 1971 independence war.

Independent estimates put the death toll from the war in which Bangladesh won its independence from Pakistan at a much lower figure of 300,000 to 500,000.

- AFP/ck

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Rajnath lauds Modi as most popular CM

NEW DELHI: Amid calls for a larger role for him, Narendra Modi on Saturday won singular praise from BJP president Rajnath Singh for being the "most popular" chief minister having registered "never before" three consecutive electoral wins for the party in Gujarat.

The BJP national council meeting began here with Singh exhorting the delegates to give a standing ovation to Modi and garlanding him.

"We have never seen the BJP winning three elections under one leadership," Singh said as Modi stepped forward on the dais to accept plaudits from the delegates.

"It won't be proper to welcome Modi with mere words. He deserves a good round of applause, a standing ovation," Singh said.

The BJP chief also lauded chief ministers of Madhya Pradesh and Chhatisgarh Shivraj Singh Chouhan and Raman Singh respectively for leading "successful" governments. He also had words of praise for Goa chief minister Manohar Parrikar, Bihar deputy chief minister Sushilkumar Modi and leader of the BJP legislature party in Punjab, where the party is sharing power with the Akali Dal.

Singh also defended his predecessor Nitin Gadkari, saying the allegations against the former BJP president were completely false and baseless.

Singh accused the UPA government of failure of various counts including in ensuring security, maintaining diplomatic relations, particularly with neighbouring countries, tackling naxalism and handling of the economy and sought to project the BJP as an alternative.

"We haven't seen a strong leadership in the Congress-led UPA," the BJP president said.

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WHO: Slight cancer risk after Japan nuke accident

LONDON (AP) — Two years after Japan's nuclear plant disaster, an international team of experts said Thursday that residents of areas hit by the highest doses of radiation face an increased cancer risk so small it probably won't be detectable.

In fact, experts calculated that increase at about 1 extra percentage point added to a Japanese infant's lifetime cancer risk.

"The additional risk is quite small and will probably be hidden by the noise of other (cancer) risks like people's lifestyle choices and statistical fluctuations," said Richard Wakeford of the University of Manchester, one of the authors of the report. "It's more important not to start smoking than having been in Fukushima."

The report was issued by the World Health Organization, which asked scientists to study the health effects of the disaster in Fukushima, a rural farming region.

On March 11, 2011, an earthquake and tsunami knocked out the Fukushima plant's power and cooling systems, causing meltdowns in three reactors and spewing radiation into the surrounding air, soil and water. The most exposed populations were directly under the plumes of radiation in the most affected communities in Fukushima, which is about 150 miles (240 kilometers) north of Tokyo.

In the report, the highest increases in risk are for people exposed as babies to radiation in the most heavily affected areas. Normally in Japan, the lifetime risk of developing cancer of an organ is about 41 percent for men and 29 percent for women. The new report said that for infants in the most heavily exposed areas, the radiation from Fukushima would add about 1 percentage point to those numbers.

Experts had been particularly worried about a spike in thyroid cancer, since radioactive iodine released in nuclear accidents is absorbed by the thyroid, especially in children. After the Chernobyl disaster, about 6,000 children exposed to radiation later developed thyroid cancer because many drank contaminated milk after the accident.

In Japan, dairy radiation levels were closely monitored, but children are not big milk drinkers there.

The WHO report estimated that women exposed as infants to the most radiation after the Fukushima accident would have a 70 percent higher chance of getting thyroid cancer in their lifetimes. But thyroid cancer is extremely rare and one of the most treatable cancers when caught early. A woman's normal lifetime risk of developing it is about 0.75 percent. That number would rise by 0.5 under the calculated increase for women who got the highest radiation doses as infants.

Wakeford said the increase may be so small it will probably not be observable.

For people beyond the most directly affected areas of Fukushima, Wakeford said the projected cancer risk from the radiation dropped dramatically. "The risks to everyone else were just infinitesimal."

David Brenner of Columbia University in New York, an expert on radiation-induced cancers, said that although the risk to individuals is tiny outside the most contaminated areas, some cancers might still result, at least in theory. But they'd be too rare to be detectable in overall cancer rates, he said.

Brenner said the numerical risk estimates in the WHO report were not surprising. He also said they should be considered imprecise because of the difficulty in determining risk from low doses of radiation. He was not connected with the WHO report.

Some experts said it was surprising that any increase in cancer was even predicted.

"On the basis of the radiation doses people have received, there is no reason to think there would be an increase in cancer in the next 50 years," said Wade Allison, an emeritus professor of physics at Oxford University, who also had no role in developing the new report. "The very small increase in cancers means that it's even less than the risk of crossing the road," he said.

WHO acknowledged in its report that it relied on some assumptions that may have resulted in an overestimate of the radiation dose in the general population.

Gerry Thomas, a professor of molecular pathology at Imperial College London, accused the United Nations health agency of hyping the cancer risk.

"It's understandable that WHO wants to err on the side of caution, but telling the Japanese about a barely significant personal risk may not be helpful," she said.

Thomas said the WHO report used inflated estimates of radiation doses and didn't properly take into account Japan's quick evacuation of people from Fukushima.

"This will fuel fears in Japan that could be more dangerous than the physical effects of radiation," she said, noting that people living under stress have higher rates of heart problems, suicide and mental illness.

In Japan, Norio Kanno, the chief of Iitate village, in one of the regions hardest hit by the disaster, harshly criticized the WHO report on Japanese public television channel NHK, describing it as "totally hypothetical."

Many people who remain in Fukushima still fear long-term health risks from the radiation, and some refuse to let their children play outside or eat locally grown food.

Some restrictions have been lifted on a 12-mile (20-kilometer) zone around the nuclear plant. But large sections of land in the area remain off-limits. Many residents aren't expected to be able to return to their homes for years.

Kanno accused the report's authors of exaggerating the cancer risk and stoking fear among residents.

"I'm enraged," he said.

___

Mari Yamaguchi in Tokyo and AP Science Writer Malcolm Ritter in New York contributed to this report.

__

Online:

WHO report: http://bit.ly/YDCXcb

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Obama Signs Order to Begin Sequester Cuts

President Obama and congressional leaders today failed to reach a breakthrough to avert a sweeping package of automatic spending cuts, setting into motion $85 billion of across-the-board belt-tightening that neither had wanted to see.

President Obama officially initiated the cuts with an order to agencies Friday evening.

He had met for just over an hour at the White House Friday morning with Republican leaders House Speaker John Boehner and Senate Minority Leader Mitch McConnell and his Democratic allies, House Minority Leader Nancy Pelosi, Senate Majority Leader Harry Reid and Vice President Joe Biden.

But the parties emerged from their first face-to-face meeting of the year resigned to see the cuts take hold at midnight.

"This is not a win for anybody," Obama lamented in a statement to reporters after the meeting. "This is a loss for the American people."

READ MORE: 6 Questions (and Answers) About the Sequester

Officials have said the spending reductions immediately take effect Saturday but that the pain from reduced government services and furloughs of tens of thousands of federal employees would be felt gradually in the weeks ahead.

Sequestration Deadline: Obama Meets With Leaders Watch Video

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Federal agencies, including Homeland Security, the Pentagon, Internal Revenue Service and the Department of Education, have all prepared to notify employees that they will have to take one unpaid day off per week through the end of the year.

The staffing trims could slow many government services, including airport screenings, air traffic control, and law enforcement investigations and prosecutions. Spending on education programs and health services for low-income families will also get clipped.

"It is absolutely true that this is not going to precipitate the crisis" that would have been caused by the so-called fiscal cliff, Obama said. "But people are going to be hurt. The economy will not grow as quickly as it would have. Unemployment will not go down as quickly as it would have. And there are lives behind that. And it's real."

The sticking point in the debate over the automatic cuts -- known as sequester -- has remained the same between the parties for more than a year since the cuts were first proposed: whether to include more new tax revenue in a broad deficit reduction plan.

The White House insists there must be higher tax revenue, through elimination of tax loopholes and deductions that benefit wealthier Americans and corporations. Republicans seek an approach of spending cuts only, with an emphasis on entitlement programs. It's a deep divide that both sides have proven unable to bridge.

"This discussion about revenue, in my view, is over," Boehner told reporters after the meeting. "It's about taking on the spending problem here in Washington."

Boehner: No New Taxes to Avert Sequester

Boehner says any elimination of tax loopholes or deductions should be part of a broader tax code overhaul aimed at lowering rates overall, not to offset spending cuts in the sequester.

Obama countered today that he's willing to "take on the problem where it exists, on entitlements, and do some things that my own party doesn't like."

But he says Republicans must be willing to eliminate some tax loopholes as part of a deal.

"They refuse to budge on closing a single wasteful loophole to help reduce the deficit," Obama said. "We can and must replace these cuts with a more balanced approach that asks something from everybody."

Can anything more be done by either side to reach a middle ground?

The president today claimed he's done all he can. "I am not a dictator, I'm the president," Obama said.

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Bertelsmann buys out KKR in music rights business BMG

FRANKFURT: German media giant Bertelsmann said Friday it has agreed to buy out the US investment fund KKR in their jointly-owned music rights management company BMG for an undisclosed sum.

Bertelsmann said in a statement it will acquire the 51-percent stake that KKR has held in BMG since 2009, finally bringing the unit back under full ownership.

BMG was originally set up in 2008 and KKR acquired its 51-percent stake in 2009.

According to the Financial Times last week, the estimated cost of the deal is around 500 million euros ($654 million).

The deal is still subject to regulatory approval, but is scheduled to close "during the first half of this year," the statement said.

Bertelsmann said BMG manages the rights to more than one million songs, including works by such artists as Bruno Mars, Duran Duran, Gossip, Johnny Cash, and Will.i.am.

It also represents the master rights -- composition and recording -- of artists such as Brian Ferry, Nena and Anastacia.

"This is a great day for Bertelsmann. We are bringing the music home to our group. We are happy to have BMG as our own company again," said Bertelsmann chief executive Thomas Rabe.

Rabe said KKR had been a good partner, but taking full ownership of BMG was "an important step in putting Bertelsmann's growth strategy into practice," Rabe said.

-AFP/sb

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