Is the U.S. getting Egypt wrong again?




Egyptian riot police stand guard as people protest against Egypt's President Mohamed Morsy in Cairo on December 29, 2012.




STORY HIGHLIGHTS


  • National protests against Morsy set for second anniversary of Egypt's revolution

  • Cynthia Schneider: U.S. out of step, underestimates the anti-Morsy sentiment

  • She says proponents of secular democracy think the U.S. backs Muslim Brotherhood

  • She says massive protests will show U.S. needs to align itself with the popular will




Editor's note: Cynthia Schneider is a professor in the practice of diplomacy at Georgetown University; dean at the School of Diplomacy, Dubrovnik International University; and a senior nonresident fellow at Brookings Institution. She is also a former U.S. ambassador to the Netherlands.


(CNN) -- Protests planned around Egypt -- particularly in Cairo's Tahrir Square -- on the second anniversary of the January 25 revolution are expected to be an explosion of dissent, revealing the deep divisions in the country between President Mohamed Morsy and the Egyptian people.


Opposition to Morsy's authoritarianism is broader than the world recognizes. In making accommodations for Morsy's government, the United States is -- once again -- out of step with the Egyptian people.



Cynthia P. Schneider

Cynthia P. Schneider



Egyptians may not know exactly what they want, but they know what they don't want. Although an effective political opposition has yet to coalesce, Egyptians from all sectors of society are united in their refusal to accept another repressive regime.


Egypt is on a collision course. An ever growing, if periodically discouraged, portion of the population opposes the government and Morsy's Muslim Brotherhood, and supports the revolution's goals of social and economic justice, accountable government, and basic freedoms, including freedom of expression and protection of minorities. Yet the government is moving in exactly the opposite direction, with its authoritarian control over political, social, and religious life.


The government's investigation of the wildly popular "Egyptian Jon Stewart" Bassem Youssef -- charged with insulting Morsy and undermining his command -- and the forced "retirement" of respected journalist Hani Shukrallah, editor of state-owned Al-Ahram's English-language website, are just two very public examples of the vice tightening on freedom of expression.



In fact, the Arab Network for Human Rights says about 24 lawsuits for insulting Morsy have been filed against journalists and activists since his election in June.


The regime is trying to put the revolution genie back in the bottle. But it is clamping down on a population that has discovered its voice. In opposition to this repression, Egyptians at all levels are increasingly engaged in politics.


A Cairo cab driver -- ever the measure of popular sentiment -- recently debated the failings of the Constitution with a passenger. After reaching the destination, the driver leapt out, grabbed a dogeared copy of the Constitution he kept in the front seat, and pointed to a passage to prove his point to his passenger.


The December demonstrations against President Morsy and the Muslim Brotherhood-backed Constitution, which attracted an even broader segment of the population than those who stood in Tahrir Square in 2011, revealed the broadening chasm between the regime and the people in Egypt.








Assembled outside the Presidential Palace were old and young, veiled and unveiled, rich and poor. Whether they arrived in chauffeur-driven cars or whether they marched from Cairo's outlying shantytowns, the hundreds of thousands joined together in their refusal to accept a state that squashed the dreams of the revolution and dictated political, social, and religious behavior.


Many call the second wave of the revolution in the fall of 2012 the "Mothers' Revolution." Parents and grandparents went into the streets to protest the divided loyalties in their families between the Islamists (Brotherhood or Salafis) and those supporting a democratic, secular Egypt. In Egypt, secular means freedom from state control of religion, not nonreligious.


The clash between these two visions of Egypt -- secular with freedom and social justice, or a religious state run by the Brotherhood with its version of Sharia law -- played out inside families and on the streets.


Soldiers protecting the Presidential Palace during the December demonstrations were moved to tears when an Egyptian woman, referring to Morsy, shouted at them, "Why are you protecting this man who is pitting Egyptians against each other?"


Mohamed El Gindy, a successful businessman who opposes Morsy and spent much of December camping in Tahrir with the young revolutionaries, has experienced this division within families firsthand. A relative who had joined the Salafis informed him that the extreme Islamist group had put El Gindy at No. 5 on its "hit list," which is widely believed by Egyptians to exist. The relative was unapologetic until El Gindy told him that he might as well put El Gindy's mother on the list, too, since the octogenarian also had joined the street protests.


Egypt and its families may be divided, but on one subject, all are united -- in the belief that the United States is supporting the Muslim Brotherhood-dominated government.


Visible in the throngs at the December demonstrations were signs opposing Qatar and the United States -- yes, the U.S. and Qatar were lumped together as supporters of the Muslim Brotherhood regime.


"This is such a historic opportunity to restore the image of the U.S., but instead it is putting itself in the same position as Qatar. ... And this from President Obama -- so disappointing," Riham Bahi, a professor at American University in Cairo, said, reflecting views heard repeatedly last December in Egypt.


Opposition leader and blogger Bassem Sabry was even more blunt: "With the Constitution in play, you are subsidizing an Islamist state." Sabry said he was always pro-U.S. "until the revolution."


In addition, the Pentagon plans to proceed with the delivery of 20 F-16 jets to Egypt, a step that looks to Egyptians like a vote of confidence in Morsy. Unchanged since the revolution, U.S. aid policy toward Egypt still makes the military alliance its priority.


Two years after the Egyptian Revolution, the U.S. government finds itself again backing an authoritarian regime against the popular will. As January 25 approaches, with massive protests planned against Morsy's government, this is a precarious position for both the U.S. and Egypt.


In his second term, Obama should adopt a more agile and informed policy toward Egypt, one that matches the words often heard from the White House -- "The United States always has stood with the Egyptian people" -- with action.


Follow @CNNOpinion on Twitter.


Join us at Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Cynthia Schneider.






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May in January, at least for a day


























































Today is already the warmest Jan. 29 in Chicago history, toppling an almost 100-year-old record 15 minutes before the sun came up.


The previous record – 59 degrees in 1914 – was surpassed at 6:50 a.m. at O'Hare International Airport, according to the National Weather Service.


Chicago is also flirting with a new all-time high for January. The current record is 67 degrees set on Jan. 25, 1950. Today's forecast is for a high of 66 degrees. At 1 p.m., it was 63 at the airport but had dropped to 61 by about 4 p.m.








"This is basically a May air mass in January," said Richard Castro, a meteorologist for the weather service.


Rain is expected all day, with thunderstorms likely as a cold front moves through later today, Castro said.


"Scattered thunderstorms are the rule for the day," he said. "Any thunderstorms that develop could be very efficient in rainfall production."


Anywhere from 1 to 1.5 inches of rain is expected to fall, and the area is under a flood warning because the ground is still frozen.


"The top layers are fairly saturated and beneath that it's rock hard from being frozen from the cold snap last week, so there's nowhere for (the water) to go," Castro said.


The warm, wet weather will give way to colder temperatures Wednesday, Thursday and Friday, with forecasters predicting snow on Wednesday afternoon and highs in the teens on Thursday and Friday.


chicagobreaking@tribune.com


Twitter: @ChicagoBreaking






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Sixty-five found executed in Syria's Aleppo: activists


BEIRUT (Reuters) - At least 65 people were found shot dead with their hands bound in the northern Syrian city of Aleppo on Tuesday in a "new massacre" in the near two-year revolt against President Bashar al-Assad, activists said.


Opposition campaigners blamed the government but it was impossible to confirm who was responsible. Assad's forces and rebels have been battling in Syria's commercial hub since July and both have been accused of carrying out summary executions.


More than 60,000 people are estimated to have been killed in the Syrian war, the longest and deadliest of the revolts that began throughout the Arab world two years ago.


The U.N. refugee agency said on Tuesday the fighting had forced more than 700,000 people to flee. World powers fear the conflict could increasingly envelop Syria's neighbors including Lebanon, Jordan and Turkey, further destabilizing an already explosive region.


Opposition activists posted a video of a man filming at least 51 muddied male bodies alongside what they said was the Queiq River in Aleppo's rebel-held Bustan al-Qasr neighborhood.


The bodies had bullet wounds in their heads and some of the victims appeared to be young, possibly teenagers, dressed in jeans, shirts and trainers.


Aleppo-based opposition activists who asked not to be named for security reasons blamed pro-Assad militia fighters.


They said the men had been executed and dumped in the river before floating downstream into the rebel area. State media did not mention the incident.


The British-based Syrian Observatory for Human Rights, which says it provides objective information about casualties on both sides of Syria's war from a network of monitors, said the footage was evidence of a new massacre and the death toll could rise as high as 80.


"They were killed only because they are Muslims," said a bearded man in another video said to have been filmed in central Bustan al-Qasr after the bodies were removed from the river. A pickup truck with a pile of corpses was parked behind him.


STALEMATE


It is hard for Reuters to verify such reports from inside Syria because of restrictions on independent media.


Rebels are stuck in a stalemate with government forces in Aleppo - Syria's most populous city which is divided roughly in half between the two sides.


The revolt started as a peaceful protest movement against more than four decades of rule by Assad and his family, but turned into an armed rebellion after a government crackdown.


About 712,000 Syrian refugees have registered in other countries in the region or are awaiting processing as of Tuesday, the U.N. refugee agency Said on Tuesday.


"We have seen an unrelenting flow of refugees across all borders. We are running double shifts to register people," Sybella Wilkes, spokeswoman for the U.N. High Commissioner for Refugees (UNHCR), told Reuters in Geneva.


On Monday, the United Nations warned it would not be able to help millions of Syrians affected by the fighting without more money and appealed for donations at an aid conference this week in Kuwait to meet its $1.5 billion target.


Speaking ahead of that conference, Kuwait's foreign minister Sheikh Sabah al-Khaled al-Sabah said on Tuesday there was concern Syria could turn into a failed state and put the entire region at risk.


Aid group Médecins Sans Frontières said the bulk of the current aid was going to government-controlled areas and called on donors in Kuwait to make sure they were even-handed.


MISSILES


In the eastern city of Deir al-Zor, insurgents including al Qaeda-linked Islamist fighters captured a security agency after days of heavy fighting, according to an activist video issued on Tuesday.


Some of the fighters were shown carrying a black flag with the Islamic declaration of faith and the name of the al-Nusra Front, which has ties to al Qaeda in neighboring Iraq.


The war has become heavily sectarian, with rebels who mostly come from the Sunni Muslim majority fighting an army whose top generals are mostly from Assad's Alawite sect, an offshoot of Shi'ite Islam. Assad has framed the revolt as a foreign-backed conspiracy and blames the West and Sunni Gulf states.


Fighting also took place in the northern town of Ras al-Ain, on the border with Turkey, between rebels and Kurdish militants, the Observatory said.


In Turkey, a second pair of Patriot missile batteries being sent by NATO countries are now operational, a German security official said on Tuesday.


The United States, Germany and the Netherlands each committed to sending two batteries and up to 400 soldiers to operate them after Ankara asked for help to bolster its air defenses against possible missile attack from Syria.


(Additional reporting by Sylvia Westall in Kuwait, Sabine Siebold in Berlin and Stephanie Nebehay in Geneva; Editing by Andrew Heavens)



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S&P 500 eases, ends longest winning run in eight years

NEW YORK (Reuters) - The S&P 500 eased slightly on Monday after an eight-day run of gains, while the Nasdaq edged higher as Apple shares rebounded.


The index remained above 1,500, however, after closing above that level on Friday for the first time in more than five years. The S&P 500's eight sessions of gains was its longest winning streak in eight years.


Caterpillar shares helped cap losses in the Dow industrials even as the company posted a 55 percent drop in quarterly profit due to a charge connected with accounting fraud at a Chinese subsidiary and weak demand among its dealers. Caterpillar's shares, down 2.2 percent in the past three sessions, rose 2 percent Monday to $97.45.


"I think this multi-year high is really something that's in play both for shorter-term traders and with folks with money on the sidelines," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.


Bargain hunters lifted Apple after the tech giant's stock dropped 14.4 percent in the previous two sessions. With Apple's stock up 2.3 percent at $449.83, the iPad and iPhone maker regained the title as the largest U.S. company by market capitalization as Exxon Mobil fell 0.7 percent to $91.11 and slipped back to second place.


On the down side, Boeing fell 1.4 percent to $74 on worries about the potential hit from delays in its 787 Dreamliner program.


The Dow Jones industrial average <.dji> was down 14.05 points, or 0.10 percent, at 13,881.93. The Standard & Poor's 500 Index <.spx> was down 2.78 points, or 0.18 percent, at 1,500.18. The Nasdaq Composite Index <.ixic> was up 4.59 points, or 0.15 percent, at 3,154.30.


Investors poured $55 billion in new cash into stock mutual funds and exchange-traded funds in January, the biggest monthly inflow on record, research provider TrimTabs Investment Research said.


"What we have seen this year is, it appears the individual investor is allocating some 401(k) money to equities. Hopefully that's a decision that will be with us for a while," Hellwig said.


Data on Monday pointed to growing economic momentum as companies sensed improved consumer demand.


U.S. durable goods orders jumped 4.6 percent in December, a pace that far outstripped expectations for a rise of 1.8 percent. Pending home sales, however, unexpectedly dropped 4.3 percent. Analysts were looking for an increase of 0.3 percent.


Corporate earnings so far have mostly been stronger than expected. Thomson Reuters data showed that of the 150 companies in the S&P 500 that have reported earnings so far, 67.3 percent have beaten analysts' expectations, which is a higher proportion than over the past four quarters and above the average since 1994.


Stocks have also gained support from a recent agreement in Washington to extend the government's borrowing power. On Monday, Fitch Ratings said that agreement removed the near-term risk to the country's 'AAA' rating.


Hess Corp shares shot up 6.1 percent to $62.48 after the company said it would exit its refining business, freeing up to $1 billion of capital. Separately, hedge fund Elliott Associates is looking for approval to buy about $800 million more in Hess stock.


(Additional reporting by Rodrigo Campos; Editing by Jan Paschal and Nick Zieminski)



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AAA Mich.: Gas prices rise 7 cents from last week






DEARBORN, Mich. (AP) — AAA Michigan says gasoline prices have risen 7 cents during the past week to a statewide average of about $ 3.38 per gallon.


The auto club said Monday the average is about 4 cents per gallon less than last year at this time.






Of the cities it surveys, AAA Michigan said the cheapest price for self-serve unleaded fuel is in the Traverse City area, where it’s about $ 3.32 a gallon. The highest average is in the Ann Arbor, Benton Harbor and Marquette areas at about $ 3.40.


Dearborn-based AAA Michigan surveys 2,800 Michigan gas stations daily.


Energy News Headlines – Yahoo! News





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Who are these guys at QB in Super Bowl?


NEW ORLEANS (AP) — Tom Brady is not playing in the Super Bowl. Neither is Ben Roethlisberger or either of the Mannings.


This Super Bowl has a pair of fresh faces in Colin Kaepernick and Joe Flacco, one of whom will leave New Orleans as the latest and greatest at football's glamour position.


For each, this is new territory.


Flacco, the only quarterback to win a playoff game in each of his first five NFL seasons, will lead the AFC champion Baltimore Ravens into Sunday's matchup with second-year QB Kaepernick and the NFC winners, the San Francisco 49ers. Not exactly a superstar matchup — yet.


It's the first time in a decade that neither Brady, Roethlisberger, Eli Manning or Peyton Manning has gotten to the Super Bowl.


___


Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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Why haven't we learned from fires?






STORY HIGHLIGHTS


  • Pyrotechnics, overcrowding, poor exits have contributed to tragic fires in recent years

  • You would think the world would have learned from past incidents, John Barylick says

  • Concertgoers have to be their own fire marshals, he says




Editor's note: John Barylick, author of "Killer Show," a book on the 2003 Station nightclub fire in Rhode Island, is an attorney who represented victims in wrongful death and personal injury cases arising from the fire.


(CNN) -- Sunday morning we awoke to breaking news of another tragic nightclub fire, this time in Brazil. At last report the death toll exceeded 230.


This tragedy is not without precedent. Next month will mark the 10th anniversary of a similar nightclub fire in Rhode Island. At this sad time, it's appropriate to reflect on what we've learned from club fires -- and what we haven't.


Rhode Island's Station nightclub fire of 2003, in which 100 concertgoers lost their lives, began when fireworks set off by Great White, an 80s heavy metal band, ignited flammable packing foam on the club's walls.


Deadly blazes: Nightclub tragedies in recent history



John Barylick

John Barylick





Panicked patrons stampeded toward the club's main exit, and a fatal pileup ensued. Contributing to the tragedy were illegal use of pyrotechnics, overcrowding and a wall covering that would have failed even the most rudimentary flammability tests.


Video images of the Station fire were broadcast worldwide: A concert begins; the crowd's mood changes from merry, to curious, to concerned, to horrified -- in less than a minute. You'd think the world would have learned from it. You would be wrong.



The following year, the Republica Cromanon nightclub in Argentina went up in flames, killing 194 people. The club was made to hold about 1,000 people, but it was estimated that more than 3,000 fans were packed inside the night of the fire, which began when fans began lighting flares that caught the roof on fire.


Echoes of the past: Rhode Island victims 'can't help but watch'


Then, in January 2009, at least 64 New Year's revelers lost their lives in a nightclub in Bangkok, Thailand, after fire ignited its ceiling. Many were crushed in a rush to get out of the club. In December of that same year, a fire in a Russian nightclub, ignited by pyrotechnics, killed 156 people. Overcrowding, poor exits, and indoor fireworks all played roles in these tragedies; yet no one bothered to learn from mistakes of the past.


While responsibility for concert disasters unquestionably lies with venue operators, performers and promoters, ultimately, we, as patrons of clubs and concerts, can enhance our own safety by taking a few simple steps. The National Fire Protection Association urges concertgoers to:


• Be observant. Is the concert venue rundown or well-maintained? Does the staff look well-trained?


• As you proceed to your seat, observe how long the process takes. Could you reverse it in a hurry? Do you pass through pinch points? Is furniture in the way?


• Once seated, take note of the nearest exit. (In an emergency, most people try to exit by the door they entered, which is usually not the closest, and is always overcrowded.) Then, share the location of that nearest exit with your entire party. Agree that at the first sign of trouble, you will all proceed to it without delay.


• Once the show begins, remain vigilant. If you think there's a problem, LEAVE IMMEDIATELY. Do not stay to "get your money's worth" despite concerns about safety. Do not remain to locate that jacket or bag you placed somewhere. No concert is worth your life. Better to read about an incident the next day than be counted as one of its statistics.


Read more: How to protect yourself in a crowd


To be sure, all fire codes must be vigorously enforced, and club and concert hall operators must be held to the highest standards. A first step is banning indoor pyrotechnics in all but the largest, stadium-type venues.


But, ultimately, we are our own best "fire marshals" when it comes to avoiding, and escaping, dangerous situations. We can still enjoy shows. But it is up to us to look out for our own safety.


In coming days, Rhode Islanders will follow the unfolding news from Brazil with a sense of queasy deja vu -- the rising body counts, the victim identification process, the grieving families, and the assigning (and dodging) of blame. If only they had learned from our tragedy.


The opinions expressed in this commentary are solely those of John Barylick.







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Record temps, heavy rain, possible flooding Tuesday


























































The work week begins with mild weather after the frigid cold and Sunday's wintry mix, with potentially record temperatures and heavy rain with possible flooding Tuesday.


Temperatures will start to climb tonight after peaking in the mid-40s, and by Tuesday they'll hit the mid-60s, according to the weather service. The record high for Jan. 29 in Chicago is 59 degrees set in 1914.


Tuesday will hardly be a day at the beach, though: Heavy rain and thunderstorms are expected starting in the afternoon, and the brewing storm has prompted the weather service to issue a hazardous weather outlook, warning of lightning, fog, downpours and hail.








It has also issued a flood watch from Tuesday morning through Tuesday evening for Cook, Ford, Grundy, Iroquois, Kankakee, Livingston and Will counties in Illinois and Benton, Jasper, Lake, Newton and Porter counties in northwest Indiana.


With frozen ground and predictions of as much as two inches of rain in an area around a line stretching from Pontiac to Gary, the agency warns that a lot of that rain could end up running off into local rivers and streams that can rapidly overflow their banks.


chicagobreaking@tribune.com


Twitter: @ChicagoBreaking






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Egypt protesters defy curfew after emergency rule imposed


ISMAILIA/CAIRO, Egypt (Reuters) - Thousands of Egyptian protesters ignored a curfew on Monday to take to the streets in cities along the Suez canal, defying a state of emergency imposed by Islamist President Mohamed Mursi to end days of violence that has killed at least 51 people.


One man was killed in violence late on Monday in Port Said and another was shot dead earlier in Cairo as a wave of violence raged on, unleashed last week on the eve of the two-year anniversary of the popular revolt that brought down autocrat Hosni Mubarak.


Political opponents spurned a call by Mursi for talks to try to end the violence, with main opposition groups refusing to attend a meeting.


Instead, huge crowds of protesters took to the streets in the capital Cairo, Alexandria and in the three Suez Canal cities - Port Said, Ismailia and Suez - where Mursi imposed emergency rule and a curfew on Sunday.


"Down, down with Mohamed Mursi! Down, down with the state of emergency!" crowds shouted in Ismailia in defiance of the curfew. In Cairo, flames lit up the night sky where protesters set police vehicles ablaze.


In Port Said, men attacked police stations after dark. A security source said some police and troops were injured. A medical source said one man was killed in clashes.


"The people want to bring down the regime," crowds chanted in Alexandria. "Leave means go, and don't say no!" they shouted.


The demonstrators accuse Mubarak's successor Mursi of betraying the revolution that brought down Mubarak. Mursi and his supporters accuse the protesters of seeking to overthrow the country's first ever democratically elected leader through undemocratic means.


Monday was the second anniversary of one of the bloodiest days in the revolution, which erupted on January 25, 2011 and ended Mubarak's iron rule 18 days later.


The past two years have seen the Islamists win two referendums, two parliamentary elections and a presidential vote. But that legitimacy has been challenged by an opposition that accuses Mursi of imposing a new form of authoritarianism, and punctuated by repeated waves of unrest that have prevented a return to stability in the most populous Arab state.


The army has already been deployed in Port Said and Suez and the government agreed a measure to let soldiers arrest civilians as part of the state of emergency.


A cabinet source told Reuters any trials would be in civilian courts, but the step is likely to anger protesters who accuse Mursi of using tactics like those used by Mubarak.


VOLLEYS OF TEARGAS


Propelled to the presidency in a June election by the Muslim Brotherhood, Mursi has lurched through a series of political crises and violent demonstrations while trying to shore up the economy and of prepare for a parliamentary election to cement the new democracy in a few months.


The instability unnerves Western capitals, where officials worry about the direction of a key regional player that has a peace deal with Israel. The United States condemned the deadly violence and called on Egyptian leaders to make clear violence is not acceptable. ID:nW1E8MD01C].


In Cairo on Monday, police fired volleys of teargas at stone-throwing protesters near Tahrir Square, cauldron of the anti-Mubarak uprising. Protesters stormed into the down town Semiramis Intercontinental hotel and burned two police vehicles.


A 46-year-old bystander was killed by a gunshot early on Monday, a security source said. It was not clear who fired.


"We want to bring down the regime and end the state that is run by the Muslim Brotherhood," said Ibrahim Eissa, a 26-year-old cook, protecting his face from teargas wafting towards him.


The political unrest has been exacerbated by street violence linked to death penalties imposed on soccer supporters convicted of involvement in stadium rioting in Port Said a year ago.


As part of emergency measures, a daily curfew will be imposed on the three canal cities from 9 p.m. (1900 GMT) to 6 a.m. (0400 GMT).


The president announced the measures on television on Sunday: "The protection of the nation is the responsibility of everyone. We will confront any threat to its security with force and firmness within the remit of the law," Mursi said.


His demeanor in the address infuriated his opponents, not least when he wagged a finger at the camera.


He offered condolences to families of victims. But his invitation to Islamist allies and their opponents to hold a national dialogue was spurned by the main opposition National Salvation Front coalition. Those who attended were mostly Mursi's supporters or sympathizers.


SENDING A MESSAGE


The Front rejected the offer of talks as "cosmetic and not substantive" and set conditions for any future meeting that have not been met in the past, such as forming a government of national unity. The group also demanded that Mursi declare himself responsible for the bloodshed.


"We will send a message to the Egyptian people and the president of the republic about what we think are the essentials for dialogue. If he agrees to them, we are ready for dialogue," opposition politician Mohamed ElBaradei told a news conference.


The opposition Front has distanced itself from the latest flare-ups but said Mursi should have acted far sooner to impose security measures that would have ended the violence.


"Of course we feel the president is missing the real problem on the ground, which is his own policies," Front spokesman Khaled Dawoud said after Mursi made his declaration.


Other activists said Mursi's measures to try to impose control on the turbulent streets could backfire.


"Martial law, state of emergency and army arrests of civilians are not a solution to the crisis," said Ahmed Maher of the April 6 movement that helped galvanize the 2011 uprising. "All this will do is further provoke the youth. The solution has to be a political one that addresses the roots of the problem."


Rights activists said Mursi's declaration was a backward step for Egypt, which was under emergency law for Mubarak's entire 30-year rule. His police used sweeping arrest provisions to muzzle dissent and round up opponents, including members of the Brotherhood and even Mursi himself.


Heba Morayef of Human Rights Watch in Cairo said the police, still hated by many Egyptians for their heavy-handed tactics under Mubarak, would once again have the right to arrest people "purely because they look suspicious", undermining efforts to create a more efficient and respected police force.


"It is a classic knee-jerk reaction to think the emergency law will help bring security," she said. "It gives so much discretion to the Ministry of Interior that it ends up causing more abuse, which in turn causes more anger."


(Additional reporting by Yasmine Saleh in Cairo, Yusri Mohamed in Ismailia and Abdelrahman Youssef in Alexandria; Editing by Peter Graff)



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Fed waits for job market to perk up


LONDON (Reuters) - The Federal Reserve's ultra-loose monetary policy is a root cause of the "currency wars" that some see as a looming threat to the world economy, but don't expect the U.S. central bank to signal a shift back to normal any time soon.


The Fed, whose policy-setting Federal Open Market Committee concludes a two-day meeting on Wednesday, said just last month that it expects to keep short-term interest rates exceptionally low until the U.S. unemployment rate falls to 6.5 percent, inflation permitting.


That goal is still distant. Figures on Friday are likely to show that the jobless rate was unchanged in January at 7.8 percent, while the economy created 155,000 jobs, the same as in December, according to economists polled by Reuters.


So it would be a huge surprise if the Fed were to do anything other than reaffirm last month's decision to anchor short-term interest rates in a range of zero to 0.25 percent and to keep buying $85 billion of bonds each month to hold down long-term rates.


The only question mark is whether the FOMC vote will be unanimous now that Richmond Fed President Jeffrey Lacker, who opposes the current round of bond-buying, has rotated off the panel, said Harm Bandholz, an economist with UniCredit Bank in New York.


Most economists polled by Reuters expect the Fed to keep its open-ended bond-buying program in place well into next year, even though the economic news flow and market confidence are improving markedly.


True, Wednesday's preliminary report on fourth-quarter GDP is likely to show that growth slowed to an annualized rate of 1.2 percent from 3.1 percent in the July-September period.


And the current quarter will also be soft as the expiry of a 2 percent payroll tax cut is dampening consumer spending.


But then Bandholz expects an average growth rate of 2.8 percent over the rest of the year. That would be the strongest three-quarter period of the recovery so far, he said.


"The outlook has improved a lot in the U.S. I've been on the cautious side for the last three years, but this time I'm a bit more bullish," he said.


THE FED BIDES ITS TIME


The recovery in housing would add at least half a percentage point to GDP growth in 2013, while capital spending was likely to revive now that uncertainty over budget talks in Washington had been largely allayed, Bandholz said.


"There's a lot of pent-up demand in the system. I don't think all these investments have been abandoned; they've just been postponed," he said.


At some point, investors' exuberance over the super-easy stance of the world's major central banks will give way to worries that they are about to take away the punch bowl.


Gustavo Reis, an economist with Bank of America Merrill Lynch in New York, said concerns about the costs of money-printing were likely to spread but would be offset by uncertainty over the impact on growth of fiscal tightening in the United States and Europe.


"All told, although global activity seems more robust now than at any point in 2012, we expect policymakers to continue to worry predominantly about downside risks," he said in a note.


The bank does not expect the Fed to consider halting asset purchases before 2014, while the latest episode of monetary easing announced by the Bank of Japan is likely to be ‘long-lived and significant'.


Many economists argue that bold monetary action is long overdue in Japan, whose nominal output has not grown in 20 years, saddling the government with a debt-to-GDP ratio of more than 220 percent.


But Douglas McWilliams, who heads the Centre for Economics and Business Research, a London consultancy, fears Japan's decision will lead the global economy into unpredictable currency wars.


"It's a bit like if someone's rude to you, you're rude to them back. You get tit-for-tat behavior," McWilliams said.


CURRENCY FRICTION, BUT NO WAR


Olivier Blanchard, the chief economist of the International Monetary Fund, last week called talk of currency wars overblown and said countries had to pull the right policy levers to get their economies back on track, with corresponding consequences for exchange rates.


However, McWilliams said the problem was that it was difficult to get countries to agree NOT to wage currency wars.


Tellingly, Chancellor Angela Merkel voiced German concerns last week that Japan might be deliberately seeking to cheapen the yen to give its exporters a competitive edge.


"So we may well find that there is a period of very heavy volatility before the authorities involved try and get some kind of agreement," McWilliams said.


In a relatively quiet week for economic data in the euro zone - money supply figures and confidence surveys from the European Commission are the highlights - the focus is likely to remain squarely on the euro, which has been rising briskly as traders price in the policy shifts that Blanchard had in mind.


While the Fed and the Bank of Japan are expanding their balance sheets, the European Central Bank is starting to soak up some of the emergency cash it lent to banks a year ago.


The central bank said on Friday that banks would repay early 137 billion euros of cheap borrowed money.


"I'm not sure if we have too strong a euro for the moment but certainly we would not want to see a currency war of competitive devaluations which would have a negative effect on the euro," the European Union's top monetary official, Olli Rehn, told Reuters.


(Additional reporting by Paul Taylor in Davos; editing by Jason Neely)



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