Hamas Announcement Further Clouds Truce Talks

GAZA — Confusion continued Saturday over the status of cease-fire talks Egypt is conducting between Hamas and Israel, as the Hamas prime minister announced progress regarding restrictions on the movements of fishermen and farmers in the border area, which the Israeli prime minister’s office denied.

One day after Israeli soldiers killed a Palestinian and wounded nine others as they approached the fence on Gaza’s eastern border, some Gaza fishermen said they had ventured past the three-nautical-mile limit, long imposed by Israel, without provoking an Israeli response. The fishermen’s gambit followed an announcement by the office of the Hamas prime minister, Ismail Haniya, that the Egyptian intelligence service, which brokered the initial cease-fire deal announced in Cairo last week, told him the limit had been extended to six nautical miles.

But Mark Regev, a spokesman for Prime Minister Benjamin Netanyahu of Israel, said Saturday that “nothing has changed on the ground or at sea until it is agreed to by Israel and Egypt.” He declined to discuss whether a meeting had been set for Monday, as the Hamas statement said, on the question of Palestinian movements in the so-called buffer zone, the 1,000-foot strip of land on Gaza’s northern and eastern borders where the shooting broke out on Friday.

“The arrangements negotiated with Egypt led to an immediate cessation of hostile activities,” Mr. Regev said. “All other factors will be negotiated in an expeditious manner directly with the Egyptians.”

The mixed messages raised the question of whether Hamas might be trying to provoke the Israelis to break the cease-fire, or perhaps to establish new facts on the ground — farmers tilling the borderland, fishermen fishing farther out — that would increase its leverage in negotiations.

“Hamas is definitely trying to score points here,” said Mkhaimar Abusada, a political scientist at Al Azhar University in Gaza City. “Hamas is trying to say that the cease-fire is in the interest of Hamas and is in the interest of the Palestinians, that the cease-fire agreement is going to gradually put an end to the siege.”

Mr. Abusada noted that Mahmoud Zahar, a high-ranking Hamas leader, had told Arab-speaking reporters at a news conference that Gaza militants had shot down seven Israeli jet during the eight-day conflict, something Mr. Abusada called “a big lie.”

“We know this didn’t happen, so this is part of raising morale, part of playing with the emotions of Palestinians,” Mr. Abusada said, suggesting that the Hamas statement on fishermen and border zones had a similar purpose. “It’s like waging psychological warfare on Israel, that Israel is giving in to the Palestinians, and also on the Palestinian side that Hamas won this war on all levels.”

Nizar Ayyash, the leader of the Gaza fishermen’s syndicate, said that after the Hamas statement, seven or eight large boats sailed out six miles into the sea on Saturday, encountering no resistance from Israeli gunboats that patrol the waters. Mr. Ayyash said that even six miles out, the sea is too sandy, and that during sardine season, the best catch was about 15 nautical miles from the coast. “Any mile we gain is our right,” he added.

With Egypt erupting in turmoil over a decree issued Thursday by President Mohamed Morsi granting himself broad powers unchecked by judicial review, the prospects for further negotiations on the buffer zone, fishing and the expansion of Gaza’s border crossings for people and goods are also unclear.

“Morsi is definitely preoccupied with internal Egyptian problems. He is definitely overwhelmed,” Mr. Abusada said. “That’s where the Egyptian intelligence role comes back. The Egyptian intelligence service is the Egyptian side who has been intervening and coordinating.”

Fares Akram contributed reporting.

This article has been revised to reflect the following correction:

Correction: November 24, 2012

Because of an editing error, an earlier version of this article misspelled the surname of the leader of the Gaza fishermen’s syndicate. It is Nizar Ayyash, not Ayyesh.

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Wall Street Week Ahead: Political wrangling to pinch market's nerves

NEW YORK (Reuters) - Volatility is the name of this game.

With the S&P 500 above 1,400 following five days of gains, traders will be hard pressed not to cash in on the advance at the first sign of trouble during negotiations over tax hikes and spending cuts that resume next week in Washington.

President Barack Obama and U.S. congressional leaders are expected to discuss ways to reduce the budget deficit and avoid the "fiscal cliff" of automatic tax increases and spending cuts in 2013 that could tip the economy into recession.

As politicians make their case, markets could react with wild swings.

The CBOE Volatility Index <.vix>, known as the VIX, Wall Street's favorite barometer of market anxiety that usually moves in an inverse relationship with the S&P 500, is in a long-term decline with its 200-day moving average at its lowest in five years. The VIX could spike if dealings in Washington begin to stall.

"If the fiscal cliff happens, a lot of major assets will be down on a short-term basis because of the fear factor and the chaos factor," said Yu-Dee Chang, chief trader and sole principal of ACE Investments in Virginia.

"So whatever you are in, you're going to lose some money unless you go long the VIX and short the market. The 'upside risk' there is some kind of grand bargain, and then the market goes crazy."

He set the chances of the economy going over the cliff at only about 5 percent.

Many in the market agree there will be some sort of agreement that will fuel a rally, but the road there will be full of political landmines as Democrats and Republicans dig in on positions defended during the recent election.

Liberals want tax increases on the wealthiest Americans while protecting progressive advances in healthcare, while conservatives make a case for deep cuts in programs for the poor and a widening of the tax base to raise revenues without lifting tax rates.

"Both parties will raise the stakes and the pressure on the opposing side, so the market is going to feel much more concerned," said Tim Leach, chief investment officer of U.S. Bank Wealth Management in San Francisco.

"The administration feels really confident at this point, or a little more than the Republican side of Congress may feel," he said. "But it's still a balanced-power Congress so neither side can feel that they can act with impunity."

THE MIDDLE EAST AND EUROPE

Tension in the Middle East and unresolved talks in Europe over aid for Greece could add to the uncertainty and volatility on Wall Street could surge, analysts say.

An Egypt-brokered ceasefire between Israel and Hamas came into force late on Wednesday after a week of conflict, but it was broken with the shooting of a Palestinian man by Israeli soldiers, according to Palestine's foreign minister.

Buoyed by accolades from around the world for mediating the truce, Egyptian President Mohamed Mursi assumed sweeping powers, angering his opponents and prompting violent clashes in central Cairo and other cities on Friday.

"Those kinds of potential large-scale conflicts can certainly overwhelm some of the fundamental data here at home," said U.S. Bank's Leach.

"We are trying to keep in mind the idea that there are a lot of factors that are probably going to contribute to higher volatility."

On a brighter note for markets, Greece's finance minister said the International Monetary Fund has relaxed its debt-cutting target for Greece and a gap of only $13 billion remains to be filled for a vital aid installment to be paid.

Still, a deal has not been struck, and Greece is increasingly frustrated at its lenders, still squabbling over a deal to unlock fresh aid even though Athens has pushed through unpopular austerity cuts.

HOUSING DATA COULD CONFIRM RECOVERY

Next week is heavy on economic data, especially on the housing front. Some of the numbers have been affected by Superstorm Sandy, which hit the U.S. East Coast more than three weeks ago, killing more than 100 people in the United States alone and leaving billions of dollars in damages.

The housing data, though, could continue to confirm a rebound in the sector that is seen as a necessary step to unlock spending and lower the stubbornly high unemployment rate.

Tuesday's S&P/Case-Shiller home price index for September is expected to show the eighth straight month of increases, extending the longest continuous string of gains since prices were boosted by a homebuyer tax credit in 2009 and 2010.

New home sales for October, due on Wednesday, and October pending home sales data, due on Thursday, are also expected to show a stronger housing market.

Other data highlights next week include durable goods orders for October and consumer confidence for November on Tuesday and the Chicago Purchasing Managers Index on Friday.

At Friday's close, the S&P 500 wrapped up its second-best week of the year with a 3.6 percent gain. Encouraging economic data next week could confirm that regardless of the ups and downs that the fiscal cliff could bring, the market's fundamentals are solid.

Jeff Morris, head of U.S. equities at Standard Life Investments in Boston, said that "it's kind of noise here" in terms of whether the market has spent "a few days up or down. It has made some solid gains over the course of the year as the housing recovery has come into view, and that's what's underpinning the market at these levels.

"I would caution against reading too much into the next few days."

(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: rodrigo.campos(at)thomsonreuters.com)

(Reporting by Rodrigo Campos; Editing by Tim Dobbyn and Jan Paschal)

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Protests Erupt After Egypt’s Leader Seizes New Power

CAIRO — Opponents of President Mohamed Morsi were reported to have set fire to his party’s offices in several Egyptian cities on Friday in a spasm of protest and clashes after he granted himself broad powers above any court declaring himself the guardian of Egypt‘s revolution, and used his new authority to order the retrial of Hosni Mubarak.

Maya Alleruzzo/Associated Press

Egyptian protesters chanted antigovernment slogans and waved a national flag in Tahrir Square on Friday.

In the Mediterranean city of Alexandria, the opponents of the Muslim Brotherhood’s Freedom and Justice Party clashed with followers of Mr. Morsi, an Islamist, who won Western and regional plaudits only days ago for brokering a cease-fire to halt eight days of lethal exchanges between Israeli forces and militants in the Gaza Strip.

Mr. Morsi, Egypt’s first democratically elected president, portrayed his decree assuming the new powers as an attempt to fulfill popular demands for justice and protect the transition to a constitutional democracy. He said it was necessary to overcome gridlock and competing interests. But the unexpected breadth of the powers he seized raised immediate fears that he might become a new strongman.

“We are, God willing, moving forward, and no one stands in our way,” Reuters quoted Mr. Morsi as saying on Friday said in a suburban mosque here after Friday prayers.

“I fulfill my duties to please God and the nation and I take decisions after consulting with everyone,” he said. “Victory does not come without a clear plan and this is what I have.”

He spoke as state television reported that his party’s offices in the Suez Canal cities of Suez, Port Said and Ismailia had been burned as his foes rampaged. Thousands of people protesting Mr. Morsi’s power grab gathered in Tahrir Square here — the focal point of protests that, last year, swept away Mr. Mubarak. Elsewhere in the capital, the president’s supporters massed in even larger numbers outside the presidential palace where Mr. Morsi said his aim was “to achieve political, social and economic stability.”

“I am for all Egyptians. I will not be biased against any son of Egypt,” he said on a stage outside the presidential palace, Reuters, reported, adding he was working for social and economic stability. “Opposition in Egypt does not worry me, but it has to be real and strong,” he said.

Sounding defensive at times and employing some of the language favored by his autocratic predecessor, Mr. Morsi justified his power grab as necessary to move Egypt’s revolution forward.

“The people wanted me to be the guardian of these steps in this phase,” he said, reminding his audience that he was freely elected after a contest “that the whole world has witnessed.”

“I don’t like, and don’t want — and there is no need — to use exceptional measures,” he said. “But those who are trying to gnaw the bones of the nation,” he added, “must be held accountable.”

News reports said clashes spread from Alexandria to the southern city of Assyut. But the severity of the clashes was not immediately clear.

Mr. Morsi’s new powers prompted one prominent adversary, Mohamed ElBaradei, to say on Twitter: “Morsi today usurped all state powers & appointed himself Egypt’s new pharaoh.”

“An absolute presidential tyranny,” Amr Hamzawy, a liberal member of the dissolved Parliament and prominent political scientist, wrote in an online commentary. “Egypt is facing a horrifying coup against legitimacy and the rule of law and a complete assassination of the democratic transition.”

Mr. Morsi issued the decree on Thursday at a high point in his five-month-old presidency, when he was basking in praise from the White House and around the world for his central role in negotiating a cease-fire that the previous night had stopped the fighting in the Gaza Strip.

But his political opponents immediately called for demonstrations on Friday to protest his new powers. “Passing a revolutionary demand within a package of autocratic decisions is a setback for the revolution,” Abdel Moneim Aboul Fotouh, a more liberal former leader of the Muslim Brotherhood and a former presidential candidate, wrote online. And the chief of the Supreme Constitutional Court indicated that it did not accept the decree.

In Washington on Thursday, the State Department spokeswoman, Victoria Nuland, released a statement saying: “The decisions and declarations announced on November 22 raise concerns form many Egyptians and the international community,” and noting that “one of the aspirations of the revolution was to ensure that power would not be overly concentrated in that hands of any one person or institution.” The statement called for resolution “through democratic dialogue.”

David D. Kirkpatrick and Kareem Fahim reported from Cairo and Alan Cowell from Paris. Mayy El Sheikh contributed reporting.

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Sony at greater risk than Panasonic in electronics downturn: Fitch

TOKYO (Reuters) – Panasonic Corp has a better chance than rival Sony Corp of surviving Japan‘s consumer electronics slump because of its unglamorous but stable appliance business of washing machines and fridges, credit rating agency Fitch said Friday.

Fitch cut Panasonic‘s rating by two notches to BB and Sony three notches to BB minus on Thursday, the first time one of the three major ratings agencies have put the creditworthiness of either company into junk-bond territory.

Rival agencies Moody’s and S&P rate both of Japan’s consumer electronic giants at the same level, just above junk status. Moody’s last cut its rating on Panasonic on Tuesday.

Panasonic “has the advantage of a relatively stable consumer appliance business that is still generating positive margins”, Matt Jamieson, Fitch’s head of Asia-Pacific, said in a conference call on Friday to explain its ratings downgrades.

But at Sony, he added, “most of their electronic business are loss making, they appear to be overstretched.”

Japan’s TV industry has been bested by cheaper, more innovative models from Samsung Electronics and other foreign rivals, while tablets and smartphones built by Apple Inc have become the dominant consumer electronics devices.

Investors are focusing on the fate of Sony and Panasonic after another struggling Japanese consumer electronics firm, Sharp Corp, maker of the Aquos TV, secured a $ 4.6 billion bail-out by banks including Mizuho Financial Group and Mitsubishi UFJ Financial Group.

Sony and Panasonic have chosen divergent survival paths.

Panasonic, maker of the Viera TV, is looking to expand its businesses in appliances, solar panels, lithium batteries and automotive components. Appliances amount to around only 6 percent of the company’s sales, but they generate margins of more than 6 percent and make up a big chunk of operating profit.

Sony, creator of the Walkman, is doubling down on consumer gadgets in a bid to regain ground from Samsung and Apple in mobile devices while bolstering digital cameras and gaming.

The latest downgrades will curtail the ability of both Japanese companies to raise money in credit markets to help fund restructurings of their business portfolios.

For now, however, that impact is limited, given the support Panasonic and Sony are receiving from their banks.

In October, Panasonic, which expects to lose $ 10 billion in the year to March 31, secured $ 7.6 billion of loan commitments from banks including Sumitomo Mitsui Financial Group and Mitsubishi UFJ, a financing backstop it says will help it avoid having to seek capital in credit markets.

Sony, which has forecast a full-year profit of $ 1.63 billion helped by the sale of a chemicals business to a Japanese state bank, announced plans to raise $ 1.9 billion through a convertible bond before the latest rating downgrade.

Thomson Reuters’ Starmine structural model, which evaluates market views of credit risk, debt levels and changes in asset values gives Panasonic and Sony an implied rating of BB minus. Sharp’s implied rating is three notches lower at B minus.

Standard & Poor’s rates Panasonic and Sony at BBB, the second lowest of the investment grade, while Moody’s Investors Service has them on Baa3, the lowest of its high-grade category. Moody’s has a negative outlook for both firms while S&P sees a stable outlook for Panasonic and a negative one for Sony.

Stock markets in Japan were closed on Friday for a national holiday.

(Reporting by Tim Kelly; Editing by Mark Bendeich)

Tech News Headlines – Yahoo! News

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Wall Street ends higher in short session, led by techs

NEW YORK (Reuters) - Stocks rose for a fifth day during a holiday-shortened, thinly traded session on Friday as investors picked up recently beaten-down shares of large technology companies.

Market participants were also encouraged by signs of progress in talks about releasing aid to debt-saddled Greece and piled into U.S. retail shares as Black Friday got the holiday shopping season under way.

U.S. stock market trading ended early and was closed on Thursday for the Thanksgiving holiday.

Volume was the lightest of the year, though the session was abbreviated. Shares of big-cap technology companies climbed as investors took advantage of the day's upward momentum to add to positions, helping the S&P 500 rack up its second best week of 2012.

"Anyone that was on the sidelines waiting for a pullback like the one we just had in some of the tech names, they're looking for any glimpse of strong price action for 'permission' to enter into those (stocks)," said Todd Salamone, director of research at Schaeffer's Investment Research in Cincinnati, Ohio

Microsoft helped lift the Nasdaq, gaining 2.8 percent to $27.70, while Apple Inc rose 1.7 percent to $571.50.

From mid-September to mid-November, the S&P tech sector <.gspt> shed about 13 percent as the broader market also dropped.

Research in Motion surged on optimism about its soon-to-be-launched BlackBerry 10 devices that will vie against Apple's iPhone and Android-based smartphones. RIM was up 13.6 percent at $11.66.

Greece said the International Monetary Fund had relaxed its debt-cutting target for the country, suggesting lenders were closer to a deal for a vital aid tranche to be paid. But other sources involved in the talks cautioned the funding gap was far bigger than Greece has suggested.

Euro zone finance ministers, the IMF and European Central Bank (ECB) failed earlier this week to agree on how to shrivel the country's debt to a sustainable level and will have a third attempt at resolving the issue on Monday.

The Dow Jones industrial average <.dji> gained 172.79 points, or 1.35 percent, to 13,009.68. The Standard & Poor's 500 Index <.spx> rose 18.12 points, or 1.30 percent, to 1,409.15. The Nasdaq Composite Index <.ixic> climbed 40.30 points, or 1.38 percent, to 2,966.85.

The S&P 500 broke a two-week losing streak to rise 3.6 percent. Stocks had tumbled earlier in the month on worries about the impact of tax and spending changes set to take effect from January, but hopes that politicians will reach a deal to avert the so-called fiscal cliff helped the market recoup some of those declines this week.

The Dow and S&P 500 both closed above key technical levels for the first time since Nov 6, which could provide additional support. The Dow ended above 13,000, while the S&P broke above 1,400.

The Dow rose 3.3 percent for the week, while the Nasdaq jumped 4 percent. The Nasdaq had ended lower for the previous six weeks in a row.

Volume was about 2.8 billion shares on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the year-to-date average daily closing volume of over 6 billion.

Advancers outnumbered decliners on the NYSE by 2,407 to 469 on the New York Stock Exchange. On the Nasdaq, advancers had the lead, with 1,775 stocks gaining and 548 shares declining.

The retail sector rose as investors looked for signs of how much consumers are spending as stores lured shoppers with Black Friday deals and discounts.

Black Friday, the day after Thanksgiving, kicks off the U.S. Christmas shopping season for retailers and is often the busiest shopping day of the year. The National Retail Federation expects sales during the holiday season to grow 4.1 percent this year compared with last year's 5.6 percent increase.

If the traffic and sales numbers look strong early on, "it usually gives a sense that the season will be in line with expectations," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

"The way that could work against a stronger retail season is if there's no follow-through, there could be discounting on the part of retailers."

Wal-Mart rose 1.9 percent to $70.20, while Target gained 1.2 percent to $64.48.

(Editing by Kenneth Barry)

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With Cease-Fire Joy in Gaza, Palestinian Factions Revive Unity Pledges

GAZA — A cease-fire that halted eight days of lethal conflict between Israel and Hamas brought jubilation to Gaza on Thursday as thousands of flag-waving residents poured into the streets and competing Palestinian factions sought to use the moment to revive their efforts to unify. In Israel, where the mood was more cynical and subdued, troops deployed to the border began pulling back.

The cease-fire agreement, which took effect on Wednesday night and seemed to be holding through Thursday, averted a full-scale Israeli ground invasion of Gaza. It did not resolve the underlying issues between the antagonists but said they would be addressed later, in a vague process that would not begin until at least 24 hours of calm had elapsed.

The wording of the agreement, reached under strong Egyptian and American diplomatic pressure, allowed both sides to claim some measure of victory in the battle of aerial weaponry that had killed at least 150 Palestinians and five Israelis over the past week. A sixth Israeli, a soldier, died on Thursday from wounds received before the cease-fire.

Whether the agreement succeeds could provide an early test of how Egypt’s new Islamist government might influence the Israeli-Palestinian conflict, the most intractable in the Middle East.

Gaza City roared back to life after more than a week of nonstop Israeli aerial assaults had left the streets vacant. Gazans carried flags not just in the signature green of Hamas, the militant group that governs Gaza, but also the yellow of its rival Fatah faction, the black of Islamic Jihad and the red of the Popular Front for the Liberation of Palestine.

“It’s the first time in 70 years I feel proud and my head held high,” said Mohamed Rajah, 71, a refugee from Haifa, Israel, who rushed to kiss four masked militants of the Islamic Jihad faction as they prepared for a news conference. “It’s a great victory for the people of Palestine. Nobody says it’s Hamas, nobody says it’s Islamic Jihad or Fatah — Palestine only.”

Ismail Haniya, the Hamas prime minister of Gaza who had largely remained in hiding after the initial Israeli assault on Nov. 14 that killed Ahmed al-Jabari, the head of the Hamas military wing, appeared at a unity rally alongside Mustafa Barghouti of the Palestinian National Initiative, a member of the Palestinian leadership that governs the Israeli-occupied West Bank and who has spent the past several days in Gaza. Mr. Barghouti said the leaders of all Palestinian factions would meet in Cairo in coming days to discuss reconciling their differences.

“The Palestinian people have won today,” Mr. Barghouti told hundreds outside the parliament building. “We must continue this victory by making our national unity.” Mr. Haniya, in a televised speech later, said “The blood of Jabari united the people of the nation on the choice of jihad and resistance.”

With Israeli forces still massed on the Gaza border, a tentative calm in the fighting descended after the agreement was announced. But the tens of thousands of Israeli reservists called up during the crisis began to withdraw from staging areas along the Gaza border, where the Israeli military had prepared for a possible invasion of Gaza for the second time in four years.

In southern Israel, the target of more than 1,500 rockets fired from Gaza over the past week, wary residents began to return to routine. But schools within a 25-mile radius of the Palestinian enclave remained closed.

A rocket alert sounded at the small village of Nativ Haasara near the border with Gaza on Thursday morning, sending residents running for shelter. The military said the alert had been a false alarm.

Israel Radio said a dozen rockets were fired from Gaza in the first few hours of the cease-fire, but Israeli forces did not respond. In the rival Twitter feeds that offered a cyberspace counterpoint to the exchanges of airstrikes and rockets, the Israel Defense Forces said they had achieved their objectives of severely damaging Hamas’s military capabilities.

At the same time, Israeli security forces said on Thursday that they had detained 55 Palestinian militants in the West Bank after confrontations. The army said the detentions were designed to “continue to maintain order” and to “prevent the infiltration of terrorists into Israeli communities.”

Jodi Rudoren reported from Gaza, and David D. Kirkpatrick from Cairo. Reporting was contributed by Fares Akram from Gaza, Isabel Kershner from Jerusalem, Mayy El Sheikh from Cairo, Rick Gladstone from New York, and Alan Cowell from Paris.

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Gabriel Aubry, Olivier Martinez In Hospital After Brawl

By Sarah Michaud

11/22/2012 at 05:00 PM EST

Olivier Martinez and Gabriel Aubry with Halle Berry

Getty (3)

As tensions continue to build following this month's court decision denying Halle Berry the right to relocate her daughter to France, the situation came to a head Thursday morning at the actress's California home.

A physical altercation occurred between Berry's ex-boyfriend Gabriel Aubry and fiancé Olivier Martinez as Aubry was dropping 4½-year-old Nahla off at her mother's home to celebrate Thanksgiving, the Los Angeles Police Department confirms to PEOPLE.

According to TMZ, Martinez, 46, approached Aubry, 36, to speak with him and the two began to brawl. Both men were hurt – Martinez may have a broken hand and neck injuries, while Aubry suffered a broken rib, contusions to the face and a possible head injury – and are being treated at the hospital.

Although the site reports that Aubry was placed under citizen's arrest for battery, Sergeant Mike Odle of the LAPD tells PEOPLE that "no arrest was made" by his department, but that "anything is possible – it's an open investigation."

Aubry is required to stay 100 yards away from Berry, Martinez and Nahla as the result of an emergency protective order, TMZ reports.

• Reporting by RAHA LEWIS

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Study finds mammograms lead to unneeded treatment

Mammograms have done surprisingly little to catch deadly breast cancers before they spread, a big U.S. study finds. At the same time, more than a million women have been treated for cancers that never would have threatened their lives, researchers estimate.

Up to one-third of breast cancers, or 50,000 to 70,000 cases a year, don't need treatment, the study suggests.

It's the most detailed look yet at overtreatment of breast cancer, and it adds fresh evidence that screening is not as helpful as many women believe. Mammograms are still worthwhile, because they do catch some deadly cancers and save lives, doctors stress. And some of them disagree with conclusions the new study reached.

But it spotlights a reality that is tough for many Americans to accept: Some abnormalities that doctors call "cancer" are not a health threat or truly malignant. There is no good way to tell which ones are, so many women wind up getting treatments like surgery and chemotherapy that they don't really need.

Men have heard a similar message about PSA tests to screen for slow-growing prostate cancer, but it's relatively new to the debate over breast cancer screening.

"We're coming to learn that some cancers — many cancers, depending on the organ — weren't destined to cause death," said Dr. Barnett Kramer, a National Cancer Institute screening expert. However, "once a woman is diagnosed, it's hard to say treatment is not necessary."

He had no role in the study, which was led by Dr. H. Gilbert Welch of Dartmouth Medical School and Dr. Archie Bleyer of St. Charles Health System and Oregon Health & Science University. Results are in Thursday's New England Journal of Medicine.

Breast cancer is the leading type of cancer and cause of cancer deaths in women worldwide. Nearly 1.4 million new cases are diagnosed each year. Other countries screen less aggressively than the U.S. does. In Britain, for example, mammograms are usually offered only every three years and a recent review there found similar signs of overtreatment.

The dogma has been that screening finds cancer early, when it's most curable. But screening is only worthwhile if it finds cancers destined to cause death, and if treating them early improves survival versus treating when or if they cause symptoms.

Mammograms also are an imperfect screening tool — they often give false alarms, spurring biopsies and other tests that ultimately show no cancer was present. The new study looks at a different risk: Overdiagnosis, or finding cancer that is present but does not need treatment.

Researchers used federal surveys on mammography and cancer registry statistics from 1976 through 2008 to track how many cancers were found early, while still confined to the breast, versus later, when they had spread to lymph nodes or more widely.

The scientists assumed that the actual amount of disease — how many true cases exist — did not change or grew only a little during those three decades. Yet they found a big difference in the number and stage of cases discovered over time, as mammograms came into wide use.

Mammograms more than doubled the number of early-stage cancers detected — from 112 to 234 cases per 100,000 women. But late-stage cancers dropped just 8 percent, from 102 to 94 cases per 100,000 women.

The imbalance suggests a lot of overdiagnosis from mammograms, which now account for 60 percent of cases that are found, Bleyer said. If screening were working, there should be one less patient diagnosed with late-stage cancer for every additional patient whose cancer was found at an earlier stage, he explained.

"Instead, we're diagnosing a lot of something else — not cancer" in that early stage, Bleyer said. "And the worst cancer is still going on, just like it always was."

Researchers also looked at death rates for breast cancer, which declined 28 percent during that time in women 40 and older — the group targeted for screening. Mortality dropped even more — 41 percent — in women under 40, who presumably were not getting mammograms.

"We are left to conclude, as others have, that the good news in breast cancer — decreasing mortality — must largely be the result of improved treatment, not screening," the authors write.

The study was paid for by the study authors' universities.

"This study is important because what it really highlights is that the biology of the cancer is what we need to understand" in order to know which ones to treat and how, said Dr. Julia A. Smith, director of breast cancer screening at NYU Langone Medical Center in New York. Doctors already are debating whether DCIS, a type of early tumor confined to a milk duct, should even be called cancer, she said.

Another expert, Dr. Linda Vahdat, director of the breast cancer research program at Weill Cornell Medical College in New York, said the study's leaders made many assumptions to reach a conclusion about overdiagnosis that "may or may not be correct."

"I don't think it will change how we view screening mammography," she said.

A government-appointed task force that gives screening advice calls for mammograms every other year starting at age 50 and stopping at 75. The American Cancer Society recommends them every year starting at age 40.

Dr. Len Lichtenfeld, the cancer society's deputy chief medical officer, said the study should not be taken as "a referendum on mammography," and noted that other high-quality studies have affirmed its value. Still, he said overdiagnosis is a problem, and it's not possible to tell an individual woman whether her cancer needs treated.

"Our technology has brought us to the place where we can find a lot of cancer. Our science has to bring us to the point where we can define what treatment people really need," he said.

___

Online:

Study: http://www.nejm.org/doi/full/10.1056/NEJMoa1206809

Screening advice: http://www.uspreventiveservicestaskforce.org/uspstf/uspsbrca.htm

___

Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Global shares gain as global economic outlook improves

LONDON (Reuters) - World share markets extended a week-long rally on Thursday as manufacturing surveys in China and the United States boosted confidence in global growth and euro zone data at least did not worsen the already weak outlook for that region.

The euro hit a three high against the dollar on optimism that a funding deal for debt-crippled Greece will ultimately be agreed - and despite data indicating the region's economy is on course for its deepest recession since early 2009.

"The driving factors behind euro/dollar are that the global macroeconomic backdrop seems to be improving and people are pricing out the tail risk on Greece," said Arne Lohmann Rasmussen, head of currency research at Danske Bank.

The euro rose 0.4 percent to $1.2880, its highest since November 2.

The view there will be a deal to help Athens was bolstered on Wednesday when German Chancellor Angela Merkel said after the failure of the latest talks, that an agreement was possible when euro zone ministers meet again on Monday.

The hopes for a Greek deal, combined with the better economic data and a growing view that a solution can be found to the U.S. fiscal crisis, lifted the MSCI world equity index 0.4 percent to 326 points, putting it on track for its best week since mid-September.

Europe's FTSE Eurofirst 300 index rose 0.4 percent to a two-week high of 1,101.70 points, with London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX between 0.3 and 0.7 percent higher.

However, trading was subdued, with U.S. markets closed for the Thanksgiving holiday.

CHINA BOOST

Confidence in the global economic outlook got its biggest boost from the HSBC flash Manufacturing Purchasing Managers Index (PMI) for China, which pointed to an expansion in activity after seven consecutive quarters of slowdown.

The Chinese data followed a report on Wednesday showing U.S. manufacturing grew in November at its quickest pace in five months, indicating strong economic growth in the fourth quarter.

"There are questions over whether the Chinese economy is really that bad or if the U.S. will take a long time to recover, but we are getting signs that the situation is not as bad as assumed," said Peter Braendle, head of European equities at Zurich-based Swisscanto Asset Management.

PMI data on the manufacturing and services sectors in Europe's two biggest economies, Germany and France, added to the better tone, revealing that conditions had not worsened in November, though both economies are still contracting.

However, the PMI numbers for the wider euro zone remain extremely weak, pointing to the recession-hit region shrinking by about 0.5 percent in the current quarter - its sharpest contraction since the first quarter of 2009.

"The weak PMI outturn for November is a major disappointment in light of the increases in the German and French PMI surveys, and suggest the recession on the euro zone's periphery is gathering further pace," said ING economist Martin van Vliet.

BOND DEMAND

In the fixed-income markets, the improving tone enabled Spain to sell 3.88 billion euros ($4.97 billion) of new government bonds on Thursday, even though it has already raised enough funds for this year's needs.

The average yield on the three-year bonds in the auction was 3.617 percent, compared with 3.66 percent at a sale earlier in November and a 2012 average of 3.79 percent.

Ten-year Spanish yields were 6 basis points lower on the day at 5.67 percent, having traded above 6 percent at the start of the week.

"It's a clear reflection that sentiment in Spain has improved markedly," RIA Capital Markets bond strategist Nick Stamenkovic said, adding that the market was expecting Madrid to ask for an international bailout early next year.

Expectations Greece will soon get more cash set Greek yields on course for their 10th consecutive daily fall. The February 2023 bond yield dropped to 16.16 percent, its lowest since it was issued during a debt restructuring in March.

COMMODITIES STEADY

Commodity prices had some support from the improving outlook for world demand, but the prospect of only modest global growth in 2013 kept the gains in check.

Three-month copper on the London Metal Exchange rose 0.6 percent to $7,735.25 a metric tonne, and spot gold inched up to $1,730.30 an ounce.

Oil prices were more mixed as the ceasefire between Israel and Gaza's Hamas rulers on Thursday eased concerns over the impact the unrest might have had on supply from the region, offsetting support from the prospect of more Chinese oil demand.

Brent slipped 7 cents to $110.90 a barrel, while U.S. crude was up 2 cents at $87.40.

($1 = 0.7801 euros)

(Additional reporting by Jessica Mortimer and Marius Zaharia; Editing by Will Waterman and Alastair Macdonald)

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Cease-Fire Between Israel and Hamas Takes Effect

CAIRO — Israel and Hamas agreed to a cease-fire on Wednesday, the eighth day of lethal fighting over the Gaza Strip, in a deal completed under strong American and Egyptian diplomatic pressure that quieted an aerial battle of rockets and bombs and forestalled — for now — an escalation into an Israeli invasion.

The cease-fire, which took effect at 9 p.m. local time (2 p.m. Eastern), was formally announced by Secretary of State Hillary Rodham Clinton and Foreign Minister Mohamed Amr of Egypt after intensive negotiations in Cairo. It was welcomed by all sides, but whether the cease-fire could hold was uncertain.

Even in the minutes leading up to the effective start time, the antagonists were firing at each other, and the Israeli authorities reported at least five Palestinian rockets were lobbed into southern Israel shortly after the cease-fire had begun. But no damage or injuries were reported and the rocket fire seemed to end in the second hour. In Gaza, thousands of residents came outside to celebrate.

“This is a critical moment for the region,” Mrs. Clinton, who rushed to the Middle East late Tuesday in an intensified effort to halt the hostilities, told reporters in Cairo. She thanked Egypt’s president, Mohamed Morsi, who played a pivotal role in the negotiations, for “assuming the leadership that has long made this country a cornerstone of regional stability and peace.”

Mrs. Clinton also pledged to work “with our partners across the region to consolidate this progress, improve conditions for the people of Gaza, provide security for the people of Israel.”

Mr. Amr said Egypt’s role in reaching the agreement reflected its “historical commitment to the Palestinian cause” and Egypt’s efforts to “bring together the gap between the Palestinian factions.”

The top leader of Hamas, Khaled Meshal, also had strong words of praise for the Egyptian leader, a former official in the Muslim Brotherhood, in which Hamas has roots. At a news conference in Cairo, Mr. Meshal thanked Egypt for its role and said Israel had “failed in all its objectives.”

The negotiators reached an agreement after days of nearly nonstop Israeli aerial assaults on Gaza, the Mediterranean enclave run by Hamas, and the firing of hundreds of rockets into Israel from an arsenal Hamas had been amassing since the three-week Israeli invasion four years ago.

Under the terms distributed after the cease-fire was announced, Israel agreed to stop all land, sea and air hostilities in Gaza, including the “targeting of individuals” — a reference to militants of Hamas and its affiliates who have been killed. The cease-fire also called on the Palestinian factions in Gaza to stop all hostilities against Israel, including rocket attacks and attacks along the border.

But the terms also state that underlying grievances of Gazans, most notably the border restrictions Israel has imposed that impede the movement of people and goods through Gaza, will be addressed starting 24 hours after the cease-fire is in effect. Precisely how they will be addressed was left unclear.

Also left unclear was how the agreement would be enforced, but the terms stated that “each party shall commit itself not to perform any acts that would breach this understanding.”

The agreement came despite a bus bombing in Tel Aviv earlier in the day, applauded by Hamas and other Palestinian militant groups, which invited Israeli reprisals and threatened to derail the talks. Also complicating the path to the cease-fire were Israeli strikes overnight on Gaza.

Prime Minister Benjamin Netanyahu of Israel, who had been threatening to start another ground invasion if the Gaza rockets did not stop, said in a statement that he was satisfied, for the moment, with the outcome. But he left open the possibility of more military action.

The statement issued by his office said Mr. Netanyahu had spoken with President Obama and “responded positively to his recommendation to give a chance to the Egyptian proposal for a cease-fire and to allow an opportunity to stabilize the situation and to calm it down before there is a need to use much greater force.”

An agreement had been on the verge of completion on Tuesday, but was delayed over a number of issues, including Hamas’s demands for unfettered access to Gaza via the Rafah crossing into Egypt and other steps that would ease Israel’s economic and border control over other aspects of life for the more than one million Palestinian residents of Gaza, which Israel vacated in 2005 after 38 years of occupation.

David D. Kirkpatrick reported from Cairo, Ethan Bronner from Jerusalem and Rick Gladstone from New York. Reporting was contributed by Jodi Rudoren and Fares Akram from Gaza, Isabel Kershner from Jerusalem, Alan Cowell from London, Andrea Bruce from Rafah and Christine Hauser from New York.

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