US retail sales rebound in November






WASHINGTON: US retail sales rebounded in November, reversing October's decline as auto sales surged, the Commerce Department said on Thursday.

Retail sales rose 0.3 percent after a 0.3 percent drop the prior month.

Excluding automobile sales, up 1.4 percent after a 1.9 percent tumble in October, retail sales were unchanged from October.

The Commerce Department said that Hurricane Sandy, which wreaked havoc on the Northeast in late October and early November, had both positive and negative effects on the two months' data.

The data, which is not adjusted for price changes, showed a mixed performance across sectors in November.

Sales gains for automobiles, furniture and home furnishings, building materials, electronics and other sectors were offset by a sharp drop in gasoline sales.

Year-over-year growth in retail sales was 3.7 percent, unchanged from October.

The retail sales data, which includes restaurant and bar sales, is a key indicator of consumer spending that accounts for about 70 percent of US economic activity.

The modest rise in the headline number masked the true direction of consumer demand, said Joel Naroff of Naroff Economic Advisors.

"Gasoline prices were down sharply over the month and if you exclude them, spending increased sharply," he said.

- AFP/de



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Police plea for lie detector test on Zee journalists dismissed

NEW DELHI: A Delhi court on Thursday dismissed the police plea to subject two Zee news journalists, arrested for an alleged Rs 100-crore extortion bid, to a lie detector test, saying the duo cannot be compelled to undergo it without their consent.

However, the court allowed the plea of Zee Group chief Subhash Chandra to undergo a lie detector test after advice of his doctor and in his lawyer's presence.

Sudhir Chaudhary, head of Zee News, and Samir Ahluwalia, head of Zee Business, both in judicial custody, were accused of demanding Rs 100 crore from the Jindal Group in the form of advertisements to the channel.

Metropolitan magistrate Gaurav Rao, dismissing the plea of Delhi Police for subjecting two journalists to a lie detector test said: "In terms of the statement made by the accused, Ahluwalia and Chaudhary wherein they have not consented to undergo the lie detector test... The application of IO is dismissed as the accused persons cannot be forced or compelled to undergo the same as it violates the right against self-incrimination. Article 20 (3) of the constitution protects their right."

The journalists on Wednesday told the court that they were opposed to the lie detector test but open to giving samples for voice tests.

Chandra, however, agreed to undergo the lie detector test subject to the procedure and techniques used by the investigating agency.

Allowing Chandra's plea, the court said: "As far as accused Subhash Chandra is concerned, he has consented for the test. I have gone through his statement.

"In terms of his statement as well as in terms of input provided by Dr Asha Srivastava, senior scientific officer... which have been made aware to the accused, the accused shall consult his doctor and thereafter undergo the test." "The test shall be conducted. The accused shall have the right to take along with him his counsel."

Chandra and his son Puneet Goenka, who is the managing director of Zee Group, have been questioned twice in the case.

The journalists were arrested here Nov 27 on charges of attempting to extort Rs 100 crore from Congress MP Naveen Jindal's company Jindal Power and Steel Ltd. (JPSL) in exchange for not filing news reports linking the firm to the irregular coal blocks allocation.

Police booked both the journalists under Sections 384 (extortion), 120(b) (criminal conspiracy) and 511 (punishment for attempting to commit offences punishable with imprisonment for life or other imprisonment) of the Indian Penal Code (IPC). Before arresting Chaudhary and Ahluwalia, police also charged them under Section 420 (cheating).

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Dozens sue pharmacy, but compensation uncertain


NASHVILLE, Tenn. (AP) — Dennis O'Brien rubs his head as he details ailments triggered by the fungal meningitis he developed after a series of steroid shots in his neck: nausea, vomiting, dizziness, drowsiness, blurred vision, exhaustion and trouble with his speech and attention.


He estimates the disease has cost him and his wife thousands of dollars in out-of-pocket expenses and her lost wages, including time spent on 6-hour round trip weekly visits to the hospital. They've filed a lawsuit seeking $4 million in damages from the Massachusetts pharmacy that supplied the steroid injections, but it could take years for them to get any money back and they may never get enough to cover their expenses. The same is true for dozens of others who have sued the New England Compounding Center.


"I don't have a life anymore. My life is a meningitis life," the 59-year-old former school teacher said, adding that he's grateful he survived.


His is one of at least 50 federal lawsuits in nine states that have been filed against NECC, and more are being filed in state courts every day. More than 500 people have gotten sick after receiving injections prepared by the pharmacy.


The lawsuits allege that NECC negligently produced a defective and dangerous product and seek millions to repay families for the death of spouses, physically painful recoveries, lost wages and mental and emotional suffering. Thirty-seven people have died in the outbreak.


"The truth is the chance of recovering damages from NECC is extremely low," said John Day, a Nashville attorney who represents several patients who have been sickened by fungal meningitis.


To streamline the process, attorneys on both sides are asking to have a single judge preside over the pretrial and discovery phases for all of the federal lawsuits.


This approach, called multidistrict litigation, would prevent inconsistent pretrial rulings and conserve resources of all parties. But unlike a class-action case, those lawsuits would eventually be returned to judges in their original district for trial, according to Brian Fitzpatrick, a law professor at Vanderbilt University Law School in Nashville.


Even with this approach, Fitzpatrick noted that federal litigation is very slow, and gathering all the evidence, records and depositions during the discovery phase could take months or years.


"Most of the time what happens is once they are consolidated for pretrial proceedings, there is a settlement, a global settlement between all the lawyers and the defendants before anything is shipped back for trial," he said.


A lawyer representing NECC, Frederick H. Fern, described the consolidation process as an important step.


"A Boston venue is probably the best scenario," Fern said in an email. "That's where the parties, witnesses and documents are located, and where the acts subject to these complaints occurred."


Complicating efforts to recover damages, attorneys for the patients said, NECC is a small private company that has now recalled all its products and laid off its workers. The company's pharmacy licenses have been surrendered, and it's unclear whether NECC had adequate liability insurance.


Fern said NECC has insurance, but they were still determining what the policy covers.


But Day says, "It's clear to me that at the end of the day, NECC is not going to have sufficient assets to compensate any of these people, not even 1 percent."


As a result, many attorneys are seeking compensation from other parties. Among the additional defendants named in lawsuits are NECC pharmacist and co-founder Barry Cadden; co-founder Greg Conigliaro; sister company Ameridose and its marketing and support arm, Medical Sales Management.


Founded in 2006 by Cadden and Conigliaro, Ameridose would eventually report annual revenue of $100 million. An NECC spokesman didn't respond to a request for the pharmacy's revenue.


While Federal Drug Administration regulators have also found contamination issues at Westborough, Mass.-based Ameridose, the FDA has said it has not connected Ameridose drugs to infection or illness.


Under tort law, a lawsuit has to prove a defendant has a potential liability, which in this case could be anyone involved in the medical procedure. However, any such suit could take years and ultimately may not be successful.


"I would not be surprised if doctors, hospitals, people that actually injected the drugs, the people that bought the drugs from the compounding company, many of those people will also be sued," said Fitzpatrick.


Plaintiffs' attorneys said they're considering that option but want more information on the relationships between the compounding pharmacy and the hundreds of hospitals and clinics that received its products.


Day, the attorney in Tennessee, said the clinics and doctors that purchase their drugs from compounding pharmacies or manufacturers could be held liable for negligence because they are in a better position to determine the safety of the medicine than the patients.


"Did they use due care in determining from whom to buy these drugs?" Day said.


Terry Dawes, a Michigan attorney who has filed at least 10 federal lawsuits in the case, said in traditional product liability cases, a pharmaceutical distributor could be liable.


"We are looking at any conceivable sources of recovery for our clients including pharmaceutical supply places that may have dealt with this company in the past," he said.


Ten years ago, seven fungal meningitis illnesses and deaths were linked to injectable steroid from a South Carolina compounding pharmacy. That resulted in fewer than a dozen lawsuits, a scale much smaller than the litigations mounting up against NECC.


Two companies that insured the South Carolina pharmacy and its operators tried unsuccessfully to deny payouts. An appellate court ruled against their argument that the pharmacy willfully violated state regulations by making multiple vials of the drug without specific prescriptions, but the opinion was unpublished and doesn't set a precedent for the current litigation.


The lawsuits represent a way for patients and their families recover expenses, but also to hold the pharmacy and others accountable for the incalculable emotional and physical toll of the disease.


A binder of snapshots shows what life is like in the O'Briens' rural Fentress County, Tenn., home: Dennis hooked up to an IV, Dennis in an antibiotics stupor, bruises on his body from injections and blood tests. He's had three spinal taps. His 11-day stay in the hospital cost over $100,000, which was covered by health insurance.


His wife said she sometimes quietly checks at night to see whether her husband of 35 years is still breathing.


"In my mind, I thought we were going to fight this and get over it. But we are not ever going to get over it," said Kaye O'Brien.


Marjorie Norwood, a 59-year-old grandmother of three who lives in Ethridge, Tenn., has spent just shy of two months total in the hospital in Nashville battling fungal meningitis after receiving a steroid injection in her back. She was allowed to come home for almost a week around Thanksgiving, but was readmitted after her symptoms worsened.


Family members are still dealing with much uncertainty about her recovery, but they have not filed a lawsuit, said their attorney Mark Chalos. He said Norwood will likely be sent to a rehabilitation facility after her second stay in the hospital rather than return home again.


Marjorie Norwood's husband, an autoworker, has taken time off work to care for her and they depend on his income and insurance.


"It doesn't just change her life, it changes everyone else's life around her because we care about her and want her to be happy and well and have everything that she needs," said her daughter, Melanie Norwood.


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Mall Shooter Quit Job, Was Hawaii Bound













In the days before he stole a semiautomatic weapon and stormed into an Oregon shopping mall, killing two people in a shooting spree, Jacob Roberts quit his job, sold his belongings and began to seem "numb" to those closest to him.


Roberts' ex-girlfriend, Hannah Patricia Sansburn, 20, told ABC News today that the man who donned a hockey mask and opened fire on Christmas shoppers was typically happy and liked to joke around, but abruptly changed in the week before the shooting.


Roberts unleashed a murderous volley of gunfire on the second floor of the Clackamas Town Center on Tuesday while wearing the mask and black clothing, and carrying an AR-15 semiautomatic weapon and "several" magazines full of ammunition. He ended his barrage by walking down to the first floor of the mall and committing suicide.


READ: Why Mass Shooters Wear Masks


"I don't understand," Sansburn said. "I was just with him. I just talked to him. I didn't believe it was him at all. Not one part of me believed it."


She said that in recent weeks, Roberts quit his job at a gyro shop in downtown Portland and sold all of his belongings, telling her that he was moving to Hawaii. He had even purchased a ticket.


She now wonders if he was really planning to move.








Oregon Mall Shooting: Gunman Identified as Jacob Tyler Roberts Watch Video









Oregon Mall Shooting: Suspect Jacob Tyler Roberts Identified Watch Video









Oregon Mall Shooting: 2 Dead in Clackamas Town Center Watch Video





"He was supposed to catch a flight Saturday and I texted him, and asked how his flight went, and he told me, 'oh, I got drunk and didn't make the flight,'" she said. "And then this happens... It makes me think, was he even planning on going to Hawaii? He quit his job, sold all of his things."


Roberts described himself on his Facebook page as an "adrenaline junkie," and said he is the kind of person who thinks, "I'm going to do what I want."


Roberts, who attended Clackamas Community college, posted a picture of himself on his Facebook page firing a gun at a target. His Facebook photo showed graffiti in which the words "Follow Your Dreams" were painted over with the word "Cancelled."


Sansburn said the pair had dated for nearly a year but had broke up over the summer. Throughout their relationship, she had never seen him act violently or get angry.


"Jake was never the violent type. He didn't go out of his way to try to hurt people or upset people. His main goal was to make you laugh, smile, make you feel comfortable. I never would have guessed him to do anything like this ever," she said.


"You can't reconcile the differences. I hate him for what he did, but I can't hate the person I knew because it was nothing like the person who would go into a mall and go on a rampage. I would never associate the two at all."


The last time she saw him, which was last week, he "seemed numb," and she didn't understand why, she said.


"I just talked to him, stayed the night with him, and he just seemed numb if anything. He's usually very bubbly and happy, and I asked him why, what had changed, and said 'nothing.' He just had so much he had to do before he went to Hawaii that he was trying to distance himself from Portland," Sansburn said.


Sansburn said the last message she sent Roberts was a text, asking him to stay, and saying she didn't want him to leave. He replied "I'm sorry," with a sad face emoticon.


Police are still seeking information about what Roberts was doing in the days leading up to the shooting. They said today they believe Roberts stole the gun he used in the rampage from someone he knew. They have searched his home and his car for other clues into his motive.


Read ABC News' full coverage of the Oregon Mall Shooting


Clackamas County Sheriff Craig Roberts said earlier today on "Good Morning America" that he believes Roberts went into the mall with the goal of killing as many people as he could.


"I believe, at least from the information that's been provided to me at this point in time, it really was a killing of total strangers. To my knowledge at this point in time he was really trying, I think, to kill as many people as possible."


Sansburn said she has not talked to police.






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North Korea launches rocket , raising nuclear arms stakes


SEOUL/TOKYO (Reuters) - North Korea successfully launched a rocket on Wednesday, boosting the credentials of its new leader and stepping up the threat the isolated and impoverished state poses to opponents.


The rocket, which North Korea says put a weather satellite into orbit, has been labeled by the United States, South Korea and Japan as a test of technology that could one day deliver a nuclear warhead capable of hitting targets as far away as the continental United States.


"The satellite has entered the planned orbit," a North Korean television news reader clad in traditional Korean garb announced, after which the station played patriotic songs with the lyrics "Chosun (Korea) does what it says".


The rocket was launched just before 10 a.m. (0100 GMT), according to defense officials in South Korea and Japan, and was more successful than a rocket launched in April that flew for less than two minutes.


The North American Aerospace Defense Command (NORAD) said that it "deployed an object that appeared to achieve orbit", the first time an independent body has verified North Korean claims.


North Korea followed what it said was a similar successful launch in 2009 with a nuclear test that prompted the U.N. Security Council to stiffen sanctions that it originally imposed in 2006 after the North's first nuclear test.


North Korea is banned from developing nuclear and missile-related technology under U.N. resolutions, although Kim Jong-un, the youthful head of state who took power a year ago, is believed to have continued the state's "military first" programs put in place by his late father, Kim Jong-Il.


North Korea hailed the launch as celebrating the prowess of all three members of the Kim family to rule since it was founded in 1948.


"At a time when great yearnings and reverence for Kim Jong-il pervade the whole country, its scientists and technicians brilliantly carried out his behests to launch a scientific and technological satellite in 2012, the year marking the 100th birth anniversary of President Kim Il Sung," its KCNA news agency said. Kim Il Sung, the current leader's grandfather, was North Korea's first leader.


The United States condemned the launch as "provocative" and a breach of U.N. rules, while Japan's U.N. envoy called for a Security Council meeting. However, diplomats say further tough sanctions are unlikely from the Security Council as China, the North's only major ally, will oppose them.


"The international community must work in a concerted fashion to send North Korea a clear message that its violations of United Nations Security Council resolutions have consequences," the White House said in a statement.


U.S. intelligence has linked North Korea with missile shipments to Iran. Newspapers in Japan and South Korea have reported that Iranian observers were in the North for the launch, something Iran has denied.


Japan's likely next prime minister, Shinzo Abe, who is leading in opinion polls ahead of an election on Sunday and who is known as a hawk on North Korea, called on the United Nations to adopt a resolution "strongly criticizing" Pyongyang.


A North Korean Foreign Ministry spokesman reiterated that the rocket was a "peaceful project".


"The attempt to see our satellite launch as a long-range missile launch for military purposes comes from hostile perception that tries to designate us a cause for security tension," KCNA cited the spokesman as saying.


"STUMBLING BLOCK"


China had expressed "deep concern" prior to the launch which was announced a day after a top politburo member, representing new Chinese leader Xi Jinping, met Kim Jong-un in Pyongyang.


On Wednesday, its tone was measured, regretting the launch but calling for restraint on any counter-measures, in line with a policy of effectively vetoing tougher sanctions.


"China believes the Security Council's response should be cautious and moderate, protect the overall peaceful and stable situation on the Korean peninsula, and avoid an escalation," Chinese Foreign Ministry spokesman Hong Lei told journalists.


Bruce Klingner, a Korea expert at the Heritage Foundation, said: "China has been the stumbling block to firmer U.N. action and we'll have to see if the new leadership is any different than its predecessors."


A senior adviser to South Korea's president said last week it was unlikely there would be action from the United Nations and Seoul would expect its allies to tighten sanctions unilaterally.


Kim Jong-un, believed to be 29 years old, took power when his father died on December 17 last year and experts believe the launch was intended to commemorate the first anniversary of his death. The April launch was timed for the centennial of the birth of Kim Il Sung.


Wednesday's success puts the North ahead of the South which has not managed to get a rocket off the ground.


"This is a considerable boost in establishing the rule of Kim Jong-un," said Cho Min, an expert at the Korea Institute of National Unification.


There have been few indications the secretive and impoverished state, where the United Nations estimates a third of people are malnourished, has made any advances in opening up economically over the past year.


North Korea remains reliant on minerals exports to China and remittances from tens of thousands of its workers overseas.


Many of its 22 million people need handouts from defectors, who have escaped to South Korea, for basic medicines.


Given the puny size of its economy - per capita income is less than $2,000 a year - one of the few ways the North can attract world attention is by emphasizing its military threat.


It wants the United States to resume aid and to recognize it diplomatically, although the April launch scuppered a planned food deal.


The North is believed to be some years away from developing a functioning nuclear warhead although it may have enough plutonium for about half a dozen nuclear bombs, according to nuclear experts.


It has also been enriching uranium, which would give it a second path to nuclear weapons as it sits on big natural uranium reserves.


"A successful launch puts North Korea closer to the capability to deploy a weaponized missile," said Denny Roy, a senior fellow at the East-West Center in Hawaii.


"But this would still require fitting a weapon to the missile and ensuring a reasonable degree of accuracy. The North Koreans probably do not yet have a nuclear weapon small enough for a missile to carry."


The North says its work is part of a civil nuclear program although it has also boasted of it being a "nuclear weapons power".


(Additional reporting by Jumin Park and Yoo Choonsik in SEOUL; David Alexander, Matt Spetalnick and Paul Eckert in WASHINGTON; Linda Sieg in TOKYO, Sui-Lee Wee and Michael Martina in BEIJING,; Rosmarie Francisco in MANILA; Writing by David Chance; Editing by Raju Gopalakrishnan and Robert Birsel)



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Fed likely to expand QE with economy still slow






WASHINGTON: Economists expect the Federal Reserve (Fed) to add to its stimulus efforts with an expanded bond-buying program Wednesday when it concludes its last policy board meeting of 2012 amid still-slow growth.

With the US economy still sluggish despite two years and hundreds of billions of US dollars of quantitative easing (QE) operations, the Federal Open Market Committee (FOMC) is expected to stick to its guns at the end of its two day meeting.

Gathering just before its "Twist" asset-swap operation expires at year-end, signs are that the FOMC will replace it with more outright bond purchases aimed at lowering interest rates to encourage businesses to invest and hire.

With unemployment still stubbornly high, inflation low, and politicians still battling over averting the looming fiscal cliff, the FOMC has all the reason it needs to expand its QE operations.

But by how much depends on just how weak or strong the Fed's top officials judge economic growth to be.

Data released on Friday showed US unemployment rates falling to 7.7 per cent in November, which while still unhealthy seems to confirm the slow but steady downtrend in the rate.

Some economists say the figure is innately weak -- and so justifying more Fed easing -- because it has fallen in a large part because of a rise in labour market dropouts, rather than from job creation.

But others argue that, having continued to fall even after the devastating Hurricane Sandy wreaked havoc on the northeast US economy in November, the jobless rate represents a tightening of the labour market, a sign of economic resilience.

How the Fed interprets the data will be clear when it releases its policy conclusions at and its economic forecasts.

With its benchmark interest rate already at a bare-bottom 0-0.25 per cent since December 2008, the Fed's main policy tool is its bond and mortgage-backed security purchases, through which it has been holding down long-term interest rates.

The cutoff of Operation Twist, which involves swapping about US$45 billion a month in short-term assets with long-term ones, will leave the Fed with only its open-ended QE3 bond purchases in place, worth US$40 billion a month.

Public comments from a number of individual Fed officials, and the minutes of the last FOMC meeting, show support for expanding those purchases to ensure liquidity remains easy.

A wild card in all this is the Washington battle over the fiscal cliff, the automatic tax hikes and sharp spending cuts that could send the country back into recession if politicians cannot compromise.

With a deadline at the end of the year, the White House and congressional Republicans appeared still far apart on an alternative deficit reduction plan that could avert the cliff.

The Fed's Beige Book survey of regional economies, compiled to help FOMC members decide their direction, showed widespread worry among businesses over the standoff.

And in late November Fed Chairman Ben Bernanke warned that the cliff's US$500 billion crunch on the economy starting from January 1 "would pose a substantial threat to the recovery."

Asked what the central bank could do, he replied: "I don't think the Fed has the tools to offset that."

That aside, economists differ on how much new QE the Fed could add: US$45 billion a month to match the value of the Twist swaps, or less if the FOMC sees the economy gaining.

"We see some risk that the new purchase program will be somewhat smaller than the US$45 billion per month widely expected," said Jim O'Sullivan of High Frequency Economics.

"The continued downtrend in the unemployment rate is a key reason we think officials might not fully replace the amount of long-term purchases under operation Twist."

The US dollar has steadily weakened since Monday ahead of the FOMC decision, losing more than one cent to the euro to US$1.3036 early Wednesday.

But David Song, a forex markets analyst at Daily FX, was bullish on the greenback.

"It seems as though the central bank is nearing the end of its easing cycle as Chairman Ben Bernanke holds an improved outlook for 2013. In light of the more broad-based recovery in the world's largest economy, Chairman Bernanke may strike a more neutral tone for monetary policy, and a shift in central bank rhetoric may pave the way for a US dollar rally."

- AFP/jc



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Fight for 'Right to Reject' after Lokpal: Hazare

VARANASI: Anna Hazare today said he will re-launch his agitation in Delhi if the government fails to bring a strong Lokpal law before 2014 and he will then focus on getting 'Right to Reject' for the people.

The Gandhian, who is on a two-day visit here along with Former Army Chief V K Singh, said this while addressing a youth meet organised by student organisation of Mahatma Gandhi Kashi Vidyapeeth.

"If the central government does not bring Lokpal soon, I will go on Satyagraha again at the Ramlila ground in New Delhi," he said.

The social activist said that after Lokpal, he plans to rally for a legislation to enact 'Right to Reject'.

Hazare said though the government had gained independence in 1947, the country still was plagued by corruption, hooliganism and loot and there was need to eliminate such features of Indian politics.

Addressing the youth, Hazare urged them to stand against such evils and join in the second fight for freedom.

"The youth can change our country for good. If the youth wants to bring change, nothing can stop them," he said.

Hazare also said that at age of 26, he had come at a crossroad when he had made all plans to commit suicide but then changed his mind and began serving the nation.

"I had decided to commit suicide when I was 26 but changed my decision and decided to give my life to the country," he told the students gathered.

It was this decision that also made him sacrifice marriage and family life, he said, however adding that he did not encourage others to follow his path.

Hazare also provided students with SMS numbers to contact them and said that they were planning on the lines of providing training to youth who plan to join their agitation.

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DA investigating Texas' troubled $3B cancer agency


AUSTIN, Texas (AP) — Turmoil surrounding an unprecedented $3 billion cancer-fighting effort in Texas worsened Tuesday when its executive director offered his resignation and the state's chief public corruption prosecutor announced an investigation into the beleaguered agency.


No specific criminal allegations are driving the latest probe into the Cancer Prevention and Research Institute of Texas, said Gregg Cox, director of the Travis County district attorney's public integrity unit. But his influential office opened a case only weeks after the embattled agency disclosed that an $11 million grant to a private company bypassed review.


That award is the latest trouble in a tumultuous year for CPRIT, which controls the nation's second-largest pot of cancer research dollars. Amid the mounting problems, the agency announced Tuesday that Executive Director Bill Gimson had submitted his letter of resignation.


"Unfortunately, I have also been placed in a situation where I feel I can no longer be effective," Gimson wrote in a letter dated Monday.


Gimson said the troubles have resulted in "wasted efforts expended in low value activities" at the agency, instead of a focused fight against cancer. Gimson offered to stay on until January, and the agency's board must still approve his request to step down.


His departure would complete a remarkable house-cleaning at CPRIT in a span of just eight months. It began in May, when Dr. Alfred Gilman resigned as chief science officer in protest over a different grant that the Nobel laureate wanted approved by a panel of scientists. He warned it would be "the bomb that destroys CPRIT."


Gilman was followed by Chief Commercialization Officer Jerry Cobbs, whose resignation in November came after an internal audit showed Cobbs included an $11 million proposal in a funding slate without a required outside review of the project's merits. The lucrative grant was given to Dallas-based Peloton Therapeutics, a biomedical startup.


Gimson chalked up Peloton's award to an honest mistake and has said that, to his knowledge, no one associated with CPRIT stood to benefit financially from the company receiving the taxpayer funds. That hasn't satisfied some members of the agency's governing board, who called last week for more assurances that no one personally profited.


Cox said he has been following the agency's problems and his office received a number of concerned phone calls. His department in Austin is charged with prosecuting crimes related to government officials; his most famous cases include winning a conviction against former U.S. House Majority Leader Tom DeLay in 2010 on money laundering charges.


"We have to gather the facts and figure what, if any, crime occurred so that (the investigation) can be focused more," Cox said.


Gimson's resignation letter was dated the same day the Texas attorney general's office also announced its investigation of the agency. Cox said his department would work cooperatively with state investigators, but he made clear the probes would be separate.


Peloton's award marks the second time this year that a lucrative taxpayer-funded grant authorized by CPRIT instigated backlash and raised questions about oversight. The first involved the $20 million grant to M.D. Anderson Cancer Center in Houston that Gilman described as a thin proposal that should have first been scrutinized by an outside panel of scientific peer-reviewers, even though none was required under the agency's rules.


Dozens of the nation's top scientists agreed. They resigned en masse from the agency's peer-review panels along with Gilman. Some accused the agency of "hucksterism" and charting a politically-driven path that was putting commercial product-development above science.


The latest shake-up at CPRIT caught Gilman's successor off-guard. Dr. Margaret Kripke, who was introduced to reporters Tuesday, acknowledged that she wasn't even sure who she would be answering to now that Gimson was stepping down. She said that although she wasn't with the agency when her predecessor announced his resignation, she was aware of the concerns and allegations.


"I don't think people would resign frivolously, so there must be some substance to those concerns," Kripke said.


Kripke also acknowledged the challenge of restocking the peer-review panels after the agency's credibility was so publicly smeared by some of the country's top scientists. She said she took the job because she felt the agency's mission and potential was too important to lose.


Only the National Institutes of Health doles out more cancer research dollars than CPRIT, which has awarded more than $700 million so far.


Gov. Rick Perry told reporters in Houston on Tuesday that he wasn't previously aware of the resignation but said Gimson's decision to step down was his own.


Joining the mounting criticism of CPRIT is the woman credited with brainstorming the idea for the agency in the first place. Cathy Bonner, who served under former Texas Gov. Ann Richards, teamed with cancer survivor Lance Armstrong in selling Texas voters in 2007 on a constitutional amendment to create an unprecedented state-run effort to finance a war on disease.


Now Bonner says politics have sullied an agency that she said was built to fund research, not subsidize private companies.


"There appears to be a cover-up going on," Bonner said.


Peloton has declined comment about its award and has referred questions to CPRIT. The agency has said the company wasn't aware that its application was never scrutinized by an outside panel, as required under agency rules.


___


Follow Paul J. Weber on Twitter: www.twitter.com/pauljweber


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Mall Gunman Wanted to Kill 'Total Strangers'













The masked gunman who opened fire in the crowded Clackamas Town Center mall in suburban Portland, Ore., killing two and seriously injuring a third before killing himself, was trying to "kill as many people as possible."


The shooter, wearing a white hockey mask, black clothing and a bullet proof vest, tore through the mall just before 3:30 p.m. Tuesday, entering through a Macy's store and heading to the food court and public areas spraying bullets, according to witness reports.


Police have identified the gunman, but have not released his name, Sheriff Craig Roberts told "Good Morning America."


"We have been able to identify the shooter over this last night," Roberts said. "I believe, at least from the information that's been provided to me at this point in time, it really was a killing of total strangers. To my knowledge at this point in time he was really trying, I think, to kill as many people as possible."


Police have not released the names of the shooter's victims. Clackamas County Sheriff's Department Lt. James Rhodes said authorities are in the process of notifying victims' families.


The injured victim, identified by hospital officials as Kristina Shevchenko, has been taken to a hospital, according to Roberts.


PHOTOS: Oregon Mall Shooting






Craig Mitchelldyer/Getty Images











Oregon Mall Shooting: 'Killing of Total Strangers' Watch Video









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Oregon Mall Shooting: At Least 3 People Dead Watch Video





Nadia Telguz, who said she was a friend of Shevchenko, told ABC News affiliate KATU-TV in Portland that the woman was expected to recover.


"My friend's sister got shot," Teleguz told KATU. "She's on her way to (Oregon Health and Science University Hospital). They're saying she got shot in her side and so it's not life-threatening, so she'll be OK."


Witnesses from the shooting rampage said that a young man who appeared to be a teenager, ran through the upper level of Macy's to the mall food court, firing multiple shots, one right after the other, with what is believed to be a black, semi-automatic rifle.


By 4:40 p.m., police reported finding a group of people hiding in a storeroom. In a surreal moment, even the mall Santa was seen running for his life.


"I didn't know where the gunman was, so I decided to kind of eased my way out," said the mall Santa, who the AP identified as 68-year-old Brance Wilson.


More than 10,000 shoppers were at the mall during the day, according to police. Roberts said that officers responded to the scene of the shooting within minutes, and four SWAT teams swept the 1.4 million-square-foot building searching for the shooter. He was eventually found dead, an apparent suicide.


"I can confirm the shooter is dead of an apparent self-inflicted gunshot wound," Rhodes said. "By all accounts there were no rounds fired by law enforcement today in the mall."


Roberts said more than 100 law enforcement officers responded to the shooting, and the FBI and Bureau of Alcohol, Tobacco and Firearms are working with local agencies to trace the shooter's weapon.


Cell phone video shot at the scene shows the chaos soon after the shooting. When police arrived they were met head on by terrified shoppers, children and employees streaming out. Customers, even a little girl, were being lead out with their hands up.


"I think a variety of things happened that I think this could have been much, much worse," Roberts told "GMA." "And to give you some ideas, we got the call at 3:29, we had someone on scene within a minute, 30 seconds.






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IMF loan to Egypt delayed amid political turmoil


CAIRO (Reuters) - A vital $4.8 billion International Monetary Fund loan to Egypt will be delayed until next month, its finance minister said on Tuesday, intensifying the political crisis gripping the Arab world's most populous nation.


As rival factions gathered in Cairo for a new round of demonstrations, Finance Minister Mumtaz al-Said said the delay in the loan agreement was intended to allow time to explain a heavily criticised package of economic austerity measures to the Egyptian people.


The announcement came after President Mohamed Mursi on Monday backed down on planned tax increases, seen as key for the loan to go ahead. Opposition groups had greeted the tax package, which included duties on alcoholic drinks, cigarettes and a range of goods and services, with furious criticism.


"Of course the delay will have some economic impact, but we are discussing necessary measures (to address that) during the coming period," the minister told Reuters, adding: "I am optimistic ... everything will be well, God willing."


Prime Minister Hisham Kandil said Egypt had requested that the loan be delayed by a month.


"The challenges are economic not political and must be dealt with aside from politics," he told a news conference.


Kandil said the reforms would not hurt the poor. In a bid to rebuild consensus, he said there would be a national dialogue about the economic program next week.


GUNMEN OPEN FIRE


On the streets of the capital, tensions ran high after nine people were hurt when gunmen fired at protesters camping in Tahrir Square, according to witnesses and Egyptian media.


The opposition has called for a major demonstration it hopes will force Mursi to postpone a referendum on a new constitution.


Thousands of flag-waving Islamist Mursi supporters, who want the vote to go ahead as planned on Saturday, assembled at a nearby mosque, setting the stage for further street confrontations in a crisis that has divided the nation of 83 million.


The upheaval following the fall of Hosni Mubarak last year is causing concern in the West, in particular the United States, which has given Cairo billions of dollars in military and other aid since Egypt made peace with Israel in 1979.


The turmoil has also placed a big strain on the economy, sending foreign currency reserves down to about $15 billion, less than half what they were before the revolt two years ago as the government has sought to defend the pound.


"Given the current policy environment, it's hardly a surprise that there's been a delay, but it is imperative that the delay is brief," said Simon Williams, HSBC economist in Dubai. "Egypt urgently needs that IMF accord, both for the funding it brings and the policy anchor it affords."


The IMF deal had been seen as giving a seal of approval to investors and donors about the government's economic plans, vital for drawing more cash into the economy to ease a crushing budget deficit and stave off a balance of payments crisis.


MASKED ATTACKERS


In central Cairo, police cars surrounded Tahrir Square in central Cairo, the first time they had appeared in the area since November 23, shortly after a decree by Mursi awarding himself sweeping temporary powers that touched off widespread protests.


The attackers, some masked, also threw petrol bombs that started a small fire, witnesses said.


"The masked men came suddenly and attacked the protesters in Tahrir. The attack was meant to deter us and prevent us from protesting today. We oppose these terror tactics and will stage the biggest protest possible today," said John Gerges, a Christian Egyptian who described himself as a socialist.


The latest bout of unrest has so far claimed seven lives in clashes between the Islamist Muslim Brotherhood and opponents who are also besieging Mursi's presidential palace.


The elite Republican Guard which protects the palace has yet to use force to keep protesters away from the graffiti-daubed building, now ringed with tanks, barbed wire and concrete barricades.


The army has told all sides to resolve their differences through dialogue, saying it would not allow Egypt to enter a "dark tunnel". For the period of the referendum, the army has been granted police powers by Mursi, allowing it to arrest civilians.


The army has portrayed itself as the guarantor of the nation's security, but so far it has shown no appetite for a return to the bruising front-line political role it played after the fall of Mubarak, which severely damaged its standing.


OPPOSITION MARCHES


Leftists, liberals and other opposition groups have called for marches to the presidential palace later on Tuesday to protest against the hastily arranged constitutional referendum planned for December 15, which they say is polarising the country and could put it in a religious straightjacket.


Mohamed ElBaradei, a prominent opposition leader and Nobel prize winner, called for dialogue with Mursi and said the referendum should be postponed for a couple of months due to the chaotic situation.


"This revolution was not staged to replace one dictator with another," he said in an interview with CNN.


Outside the presidential palace, anti-Mursi protesters huddled together in front of their tents, warming themselves beside a bonfire in the winter air.


"The referendum must not take place. The constitution came after blood was spilt. This is not how a country should be run," said Ali Hassan, a man in his 20s.


Opposition leaders want the referendum to be delayed and hope they can get sufficiently large numbers of protesters on the streets to change Mursi's mind.


Islamists, who dominated the body that drew up the constitution, have urged their followers to turn out "in millions" in a show of support for the president and for a referendum they feel sure of winning.


The opposition says the draft constitution fails to embrace the diversity of the population, a tenth of which is Christian, and invites Muslim clerics to influence lawmaking.


(Writing by Giles Elgood; Editing by Peter Graff and Will Waterman)



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