US consumer spending flat in December






WASHINGTON: US consumers held tight to their wallets in December, the key holiday shopping season, despite a rise in incomes, according to Commerce Department data released on Thursday.

Household spending edged up 0.2 percent from November, only half the growth of the prior month and slightly below the consensus estimate of 0.3 percent.

Consumer spending, the main driver of the US economy, slowed in late 2012 amid the government's looming fiscal cliff of automatic tax hikes and spending cuts set for January 1, which was partly avoided in a last-minute political deal.

Meanwhile, personal incomes rose for the eighth straight month in December, rising a much stronger-than-expected 2.6 percent from the prior month.

The income increase was boosted by accelerated payments of bonuses and other forms of "irregular" pay in anticipation of changes in individual income tax rates, as well as lump-sum payments of social security benefits, the department said.

In the partial fiscal cliff deal, political leaders allowed Bush-era payroll tax cuts on social security benefits to expire and lifted taxes in other areas.

With inflation weak in a tepid economy, the December price index for consumer spending was essentially flat, while so-called real disposable income - excluding price changes - rose 2.8 percent.

- AFP/de



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Omar Abdullah meets PM, seeks security, fund for sarpanches

NEW DELHI: Jammu and Kashmir chief minister Omar Abdullah on Thursday called on Prime Minister Manmohan Singh and sought assistance in providing security and honorarium to newly-elected Panches and sarpanches so that panchayati raj institutions are further strengthened.

The 42-year-old chief minister also met UPA chairperson Sonia Gandhi and the Union home minister discussing issues related to NC-Congress coalition government in the state.

During an hour-long meeting with the PM, the chief minister discussed issues relating to strengthening of panchayat institutions, special assistance for a mono-rail or metro project for Srinagar and Jammu and assistance in power sector so that relief could be given to consumers.

The chief minister sought liberal central funding for devolution of resources to panchayats including payment of honorarium to nearly 33,000 panches and sarpanches.

"The historic panchayat elections have raised expectations of the common man in the development share of the state," Omar was quoted in an official release as saying.

On the part of the state government, transfer of functions, functionaries and funds to panchayat raj institutions is a commitment and a beginning has been made by transferring the functions of 14 departments and ensuring flow of funds, Omar told the Prime Minister.

According to the state government release, the Prime Minister assured the chief minister of active consideration of the proposals made to various Union ministries and said the Centre would continue to support the Jammu and Kashmir government in its efforts to march on the road to peace and prosperity.

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Sex to burn calories? Authors expose obesity myths


Fact or fiction? Sex burns a lot of calories. Snacking or skipping breakfast is bad. School gym classes make a big difference in kids' weight.


All are myths or at least presumptions that may not be true, say researchers who reviewed the science behind some widely held obesity beliefs and found it lacking.


Their report in Thursday's New England Journal of Medicine says dogma and fallacies are detracting from real solutions to the nation's weight problems.


"The evidence is what matters," and many feel-good ideas repeated by well-meaning health experts just don't have it, said the lead author, David Allison, a biostatistician at the University of Alabama at Birmingham.


Independent researchers say the authors have some valid points. But many of the report's authors also have deep financial ties to food, beverage and weight-loss product makers — the disclosures take up half a page of fine print in the journal.


"It raises questions about what the purpose of this paper is" and whether it's aimed at promoting drugs, meal replacement products and bariatric surgery as solutions, said Marion Nestle, a New York University professor of nutrition and food studies.


"The big issues in weight loss are how you change the food environment in order for people to make healthy choices," such as limits on soda sizes and marketing junk food to children, she said. Some of the myths they cite are "straw men" issues, she said.


But some are pretty interesting.


Sex, for instance. Not that people do it to try to lose weight, but claims that it burns 100 to 300 calories are common, Allison said. Yet the only study that scientifically measured the energy output found that sex lasted six minutes on average — "disappointing, isn't it?" — and burned a mere 21 calories, about as much as walking, he said.


That's for a man. The study was done in 1984 and didn't measure the women's experience.


Among the other myths or assumptions the authors cite, based on their review of the most rigorous studies on each topic:


—Small changes in diet or exercise lead to large, long-term weight changes. Fact: The body adapts to changes, so small steps to cut calories don't have the same effect over time, studies suggest. At least one outside expert agrees with the authors that the "small changes" concept is based on an "oversimplified" 3,500-calorie rule, that adding or cutting that many calories alters weight by one pound.


—School gym classes have a big impact on kids' weight. Fact: Classes typically are not long, often or intense enough to make much difference.


—Losing a lot of weight quickly is worse than losing a little slowly over the long term. Fact: Although many dieters regain weight, those who lose a lot to start with often end up at a lower weight than people who drop more modest amounts.


—Snacking leads to weight gain. Fact: No high quality studies support that, the authors say.


—Regularly eating breakfast helps prevent obesity. Fact: Two studies found no effect on weight and one suggested that the effect depended on whether people were used to skipping breakfast or not.


—Setting overly ambitious goals leads to frustration and less weight loss. Fact: Some studies suggest people do better with high goals.


Some things may not have the strongest evidence for preventing obesity but are good for other reasons, such as breastfeeding and eating plenty of fruits and vegetables, the authors write. And exercise helps prevent a host of health problems regardless of whether it helps a person shed weight.


"I agree with most of the points" except the authors' conclusions that meal replacement products and diet drugs work for battling obesity, said Dr. David Ludwig, a prominent obesity research with Boston Children's Hospital who has no industry ties. Most weight-loss drugs sold over the last century had to be recalled because of serious side effects, so "there's much more evidence of failure than success," he said.


___


Online:


Obesity info: http://www.cdc.gov/obesity/data/trends.html


New England Journal: http://www.nejm.org


___


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


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Obama Prods GOP on Immigration Negotiations


Jan 31, 2013 6:00am







gty barack obama nt 130130 wblog Immigration Negotiation: Obama Prods GOP Toward Gang of Eight

                                                                        (Image Credit: John Gurzinski/Getty Images)


President Obama has apparently had enough of leading from behind.


During the health-care push, Obama left Congress to its own devices. On immigration, he’s doing just the opposite, attempting to prod Republican legislators to the middle by demanding a vote on his own plan.


Obama Confident Immigration Overhaul Passes This Year


The president insisted Tuesday that Congress vote on his plan as soon as possible, barring agreement on something else.


“It’s important for us to recognize that the foundation for bipartisan action is already in place,” Obama said, referring to a bipartisan Senate bill offered up by the so-called Gang of Eight senators, which looks much more palatable to Republicans than Obama’s own plan. “And if Congress is unable to move forward in a timely fashion, I will send up a bill based on my proposal and insist that they vote on it right away.”


In doing so, Obama dared Congress to say “no” to something specific.


A Glossary for Immigration Overhaul


It’s the same strategy Obama used in the “fiscal-cliff” talks. With a year-end deadline approaching, he pushed Congress to vote on his own plan: to let higher income tax hikes go into effect if lawmakers couldn’t cut a deal themselves. Obama asked Senate Majority Leader Harry Reid of Nevada to call “an up-or-down vote” on that plan, the president announced in a Dec. 28 appearance before cameras at the White House.


“If members of the House or the Senate want to vote ‘no,’ they can, but we should let everybody vote,” Obama said then.


Republicans hate such a negotiation tactic. Throughout Obama’s White House tenure, GOP aides have griped that the president and congressional Democrats have sought political gain while refusing to negotiate in good faith. On immigration, it’s the same.


The Obama plan includes a faster path to citizenship and nothing to trigger border-security enforcement. It would also clear an easier path for same-sex couples.


Before Obama rolled out his immigration plan in Nevada Tuesday, Sen. Marco Rubio of  Florida raised concerns that the president would launch a “bidding war.”


In a radio interview with Rush Limbaugh, Rubio dismissed the notion of an up-or-down vote: “It’s going to have to go through committees and people are going to have their input. There’s going to be public hearings.  I don’t want to be part of a process that comes up with some bill in secret and brings it to the floor and gives people a take it or leave it.


“I want this place to work the way it’s supposed to work, with every senator having input and the public having input,” Rubio said.


A Senate Republican aide jabbed, “The president’s been gone from the Senate a long time and perhaps he has forgotten that it’s a lot easier to pass legislation if he works with Congress.”


Obama has presented Republicans with a plan they will like much less than what’s been crafted by the bipartisan Senate group. The group plan includes triggers to enforce border-security measures, more unmanned drones and no provisions making it easier for same-sex couples seeking to immigrate or naturalize.


Unless other Republicans come up with a plan of their own, the president has given Republicans a choice between the left and the middle. It’s not hard to tell which they’d prefer.



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Merkel urges Egypt's Mursi to hold crisis dialogue


CAIRO/BERLIN (Reuters) - German Chancellor Angela Merkel urged Egypt's Islamist president on Wednesday to open a dialogue with all political forces in the crisis-ridden Arab country after a week of violence that has killed more than 50 people.


President Mohamed Mursi flew to Germany to try to convince Europe of his democratic credentials, but in a sign of the political tensions back home, he restricted his trip to a few hours and canceled a planned Paris leg.


"One thing that is important for us is that the line for dialogue is always open to all political forces in Egypt, that the different political forces can make their contribution, that human rights are adhered to in Egypt and that of course religious freedom can be experienced," Merkel told Mursi at a joint news conference.


The Egyptian leader, who has faced months of protests by liberal and youth groups opposed to a new Islamic constitution, replied that dialogue was possible and that Egypt would be a state based on the rule of law, not run by the military.


But he refused to give a commitment sought by the opposition to form a national unity government, saying that would be for the new parliament to decide after elections expected in April.


Two more protesters were shot dead before dawn near Cairo's central Tahrir Square on the seventh day of what has become the deadliest wave of unrest since Mursi took power in June.


The army chief warned on Tuesday that the state was on the brink of collapse if Mursi's opponents and supporters did not end street battles that have marked the two-year anniversary of the revolt that toppled autocrat Hosni Mubarak.


Mursi is due to return to Cairo later in the day.


Near Tahrir Square on Wednesday morning, dozens of protesters threw stones at police who fired back teargas, although the scuffles were brief.


"Our demand is simply that Mursi goes, and leaves the country alone. He is just like Mubarak and his crowd who are now in prison," said Ahmed Mustafa, 28, a youth who had goggles on his head to protect his eyes from teargas.


Opposition politician Mohamed ElBaradei called for a meeting of the president, ministers, the ruling party and the opposition to halt the violence. But he also restated the opposition's precondition that Mursi first commit to seeking a national unity government.


Mursi's critics accuse him of betraying the spirit of the revolution by keeping too much power in his own hands and those of his Muslim Brotherhood, the Islamist movement banned under Mubarak which won repeated elections since the 2011 uprising.


Mursi's supporters say the protesters want to overthrow Egypt's first democratically elected leader. The unrest has prevented a return to stability ahead of parliamentary elections due within months, and worsened an economic crisis that has seen the pound currency tumble in recent weeks.


The worst violence has been in the Suez Canal city of Port Said, where rage was fuelled by death sentences passed against soccer fans for deadly riots last year. Mursi responded by announcing on Sunday a month-long state of emergency and curfew in Port Said and two other Suez Canal cities.


Protesters have ignored the curfew and returned to the streets. Human Rights Watch called for Mursi to lift the decree.


Mursi was keen to allay the West's fears over the future of the most populous Arab country in his meetings with Merkel and powerful industry groups in Berlin.


"DISTURBING IMAGES"


"We have seen worrying images in recent days, images of violence and destruction, and I appeal to both sides to engage in dialogue," German Foreign Minister Guido Westerwelle said in a radio interview on Wednesday ahead of Mursi's arrival.


Germany's "offer to help with Egypt's transformation clearly depends on it sticking to democratic reforms", he added.


Germany has praised Mursi's efforts in mediating a ceasefire between Israel and Palestinians in Gaza after a conflict last year, but became concerned at Mursi's efforts to expand his powers and fast-track a constitution last year.


Berlin was also alarmed by video that emerged in recent weeks showing Mursi making vitriolic remarks against Jews and Zionists in 2010 when he was a senior Brotherhood official. Germany's Nazi past and strong support of Israel make it highly sensitive to anti-Semitism.


Mursi's past anti-Jewish remarks were "unacceptable", Westerwelle said. "But at the same time President Mursi has played a very constructive role mediating in the Gaza conflict."


Asked about those remarks at the news conference with Merkel, Mursi said they had been taken out of context and he was not against the Jewish faith.


Egypt's main liberal and secularist bloc, the National Salvation Front, has so far refused talks with Mursi unless he promises a unity government including opposition figures.


"Stopping the violence is the priority, and starting a serious dialogue requires committing to guarantees demanded by the National Salvation Front, at the forefront of which are a national salvation government and a committee to amend the constitution," ElBaradei said on Twitter.


Those calls have also been backed by the hardline Islamist Nour party - rivals of Mursi's Brotherhood. Nour and the Front were due to meet on Wednesday, signaling an unlikely alliance of Mursi's critics from opposite ends of the political spectrum.


Brotherhood leader Mohamed El-Beltagy dismissed the unity government proposal as a ploy for the Front to take power despite having lost elections. On his Facebook page he ridiculed "the leaders of the Salvation Front, who seem to know more about the people's interests than the people themselves".


German industry leaders see potential in Egypt but are concerned about political instability.


"At the moment many firms are waiting on political developments and are cautious on any big investments," said Hans Heinrich Driftmann, head of Germany's Chamber of Industry and Commerce.


Mursi's supporters blame the opposition for preventing an economic recovery by halting efforts to restore stability. The opposition says an inclusive government is needed to bring calm.


(Additional reporting by Yasmine Saleh and Marwa Awad in Cairo, Stephen Brown and Gernot Heller in Berlin and Arshad Mohammed in Washington; Writing by Peter Graff; Editing by Giles Elgood and Paul Taylor)



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Basketball: ABL looking to connect more with fans this season






SINGAPORE: Around 135,000 spectators caught all the ASEAN Basketball League (ABL) matches live last season.

And new measures are being introduced this season to help increase viewership both on and off the court for the six teams including the Singapore Slingers.

The ABL was launched in 2009 and it has raised the profile of the game of basketball.

However, there is still a huge market to tap and ABL hopes to achieve that with greater television coverage and live streaming this year.

Anthony Macri, chief executive officer of ABL, said: "Each one of our teams this year will have a local television broadcast partner. Last year, only half of our teams had one. With technology willing, we are streaming every one of our games live this year through the region."

There will be more play-off matches and the quality of is expected to be high despite the reduction from eight teams last season to six teams this year.

"The quality of play will increase. We have seen an increase (in quality) over the last three seasons and I think this year will be no different," Mr Macri assured.

Improving fan experience is another area that is a big concern.

The Singapore Slingers has one of the best venues among the six teams but its sheer size affects the game atmosphere.

That could soon change once the Sports Hub is completed.

Singapore Slingers' general manager Michael Johnson said: "Once the Sports Hub is up, there will be a multi-purpose facility and there is some talk there might be a situation where we could move there. That would be a 3,000-seater ring.

"At this stage, that would be the ideal size for us. When we have some games, for example against the San Miguel Beers, it would be sold out as we get over 3,000 (spectators)."

The ABL has definitely impacted Singapore basketball in a positive way.

All the 10 local players in the Slingers are part of the national squad and playing in the league provides the critical competition as they gear up for the 2013 and 2015 SEA Games.

- CNA/fa



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Wanting dhoti-clad PM may have caused 'Vishwaroopam' ban: Karunanidhi

CHENNAI: Dravida Munnetra Kazhagham (DMK) president M Karunanidhi on Wednesday wondered whether the Tamil Nadu government's ban on Kamal Haasan's movie "Vishwaroopam" was because the actor wanted a dhoti-clad Tamilian as prime minister.

In a letter to party cadres, Karunanidhi said some sections of people are of the view that the actor earned the ire of the state government after he said that a dhoti-clad Tamilian, referring to Union finance minister P Chidambaram, should become the country's prime minister.

Karunanidhi also said that there is a view among a section of people that a television channel close to the ruling party in the state had offered to buy the rights of "Vishwaroopam", which the actor declined as the price quoted was much lower than what the film was sold for to another channel.

The Tamil Nadu government had earlier banned the release of "Vishwaroopam" for 15 days as it feared the movie could spark a law and order problem because it contained references to the Muslim community that were allegedly derogatory.

Many Muslim organisations had opposed the movie, claiming that it presented the community in poor light.

Earlier in the day, Kamal Haasan told reporters that he was unable to understand why "Vishwaroopam" was banned. The film had cost Rs.95 crore to produce.

Kamal said he would scout for a truly secular Indian state; otherwise, he would settle in some other country that was secular.

"I don't understand what is happening. If I try to understand, I will turn into a politician. I don't want to," the 58-year-old actor said.

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Soldier with new arms determined to be independent


BALTIMORE (AP) — After weeks of round-the-clock medical care, Brendan Marrocco insisted on rolling his own wheelchair into a news conference using his new transplanted arms. Then he brushed his hair to one side.


Such simple tasks would go unnoticed in most patients. But for Marrocco, who lost all four limbs while serving in Iraq, these little actions demonstrate how far he's come only six weeks after getting a double-arm transplant.


Wounded by a roadside bomb in 2009, the former soldier said he could get by without legs, but he hated living without arms.


"Not having arms takes so much away from you. Even your personality, you know. You talk with your hands. You do everything with your hands, and when you don't have that, you're kind of lost for a while," the 26-year-old New Yorker told reporters Tuesday at Johns Hopkins Hospital.


Doctors don't want him using his new arms too much yet, but his gritty determination to regain independence was one of the chief reasons he was chosen to receive the surgery, which has been performed in the U.S. only seven times.


That's the message Marrocco said he has for other wounded soldiers.


"Just not to give up hope. You know, life always gets better, and you're still alive," he said. "And to be stubborn. There's a lot of people who will say you can't do something. Just be stubborn and do it anyway. Work your ass off and do it."


Dr. W.P. Andrew Lee, head of the team that conducted the surgery, said the new arms could eventually provide much of the same function as his original arms and hands. Another double-arm transplant patient can now use chopsticks and tie his shoes.


Lee said Marrocco's recovery has been remarkable, and the transplant is helping to "restore physical and psychological well-being."


Tuesday's news conference was held to mark a milestone in his recovery — the day he was to be discharged from the hospital.


Next comes several years of rehabilitation, including physical therapy that is going to become more difficult as feeling returns to the arms.


Before the surgery, he had been living with his older brother in a specially equipped home on New York's Staten Island that had been built with the help of several charities. Shortly after moving in, he said it was "a relief to not have to rely on other people so much."


The home was heavily damaged by Superstorm Sandy last fall.


"We'll get it back together. We've been through a lot worse than that," his father, Alex Marrocco, said.


For the next few months, Marrocco plans to live with his brother in an apartment near the hospital.


The former infantryman said he can already move the elbow on his left arm and rotate it a little bit, but there hasn't been much movement yet for his right arm, which was transplanted higher up.


Marrocco's mother, Michelle Marrocco, said he can't hug her yet, so he brushes his left arm against her face.


The first time he moved his left arm was a complete surprise, an involuntary motion while friends were visiting him in the hospital, he said.


"I had no idea what was going through my mind. I was with my friends, and it happened by accident," he recalled. "One of my friends said 'Did you do that on purpose?' And I didn't know I did it."


Marrocco's operation also involved a technical feat not tried in previous cases, Lee said in an interview after the news conference.


A small part of Marrocco's left forearm remained just below his elbow, and doctors transplanted a whole new forearm around and on top of it, then rewired nerves to serve the old and new muscles in that arm.


"We wanted to save his joint. In the unlucky event we would lose the transplant, we still wanted him to have the elbow joint," Lee said.


He also explained why leg transplants are not done for people missing those limbs — "it's not very practical." That's because nerves regrow at best about an inch a month, so it would be many years before a transplanted leg was useful.


Even if movement returned, a patient might lack sensation on the soles of the feet, which would be unsafe if the person stepped on sharp objects and couldn't feel the pain.


And unlike prosthetic arms and hands, which many patients find frustrating, the ones for legs are good. That makes the risks of a transplant not worth taking.


"It's premature" until there are better ways to help nerves regrow, Lee said.


Now Marrocco, who was the first soldier to survive losing all four limbs in the Iraq War, is looking forward to getting behind the wheel of his black 2006 Dodge Charger and hand-cycling a marathon.


Asked if he could one day throw a football, Dr. Jaimie Shores said sure, but maybe not like Baltimore Ravens quarterback Joe Flacco.


"Thanks for having faith in me," Marrocco interjected, drawing laughter from the crowd.


His mother said Marrocco has always been "a tough cookie."


"He's not changed that, and he's just taken it and made it an art form," Michelle Marrocco said. "He's never going to stop. He's going to be that boy I knew was going to be a pain in my butt forever. And he's going to show people how to live their lives."


___


Associated Press Chief Medical Writer Marilynn Marchione in Milwaukee and AP writer David Dishneau in Hagerstown, Md., contributed to this report.


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Gunman Kills Bus Driver, Takes Child as Hostage













A gunman shot and killed a school bus driver in Midland City, Ala., Tuesday afternoon and escaped the scene with a 6-year-old passenger, which has prompted a hostage situation that is still going on this morning.


The suspected gunman is identified as Jimmy Lee Dykes, a 60-something military veteran, a police source told ABC News. Dykes and the child are in an underground bunker behind his home.


Dale County Sheriff Wally Olson said Tuesday night that the police had information that the little boy "is OK right now." The boy was delivered some needed medication, police told ABC News.


The police have not identified the child or the dead bus driver.


"Extremely sensitive situation. ... Our agents are working very hard with the locals for the best possible outcome to this situation," a federal law enforcement source told ABC News this morning.






Danny Tindell/Dothan Eagle











Gunmen Sought in California Hostage Situation Watch Video











California Hostage Situation: Dramatic 911 Calls Watch Video





Some people in the area were evacuated Tuesday evening, and everyone in the immediate area was notified of the situation, according to Olson.


"Stay at home and pray," Olson told homeowners living in the area.


Olson said multiple agencies have responded to the hostage situation. The FBI has assumed the lead in the investigation, and SWAT (Special Weapons and Tactics) teams were surrounding the bunker as of Tuesday night.


The incident began a little after 3:30 p.m. local time Tuesday. An unidentified girl, who was on the bus, told ABC News Radio the bus driver had stopped to drop off some children. The alleged gunman boarded the bus and handed the driver a note, she said.


"And then I don't know what happened after that but he started telling them he needed a kid because of the law coming after him," she said.


Dykes got on the bus and originally demanded that he get two children as hostages. All the children on the bus managed to escape except the 6-year-old boy, a police source told ABC News affiliate WDNH.


"He shot the bus driver, and the driver's foot was on the gas and we went backwards. And everybody started screaming. And then the bus driver was still there and we all got off the bus and went to a neighbor's house," the girl said.


Dykes was scheduled to be in court today for a trial related to charges of menacing, according to court records obtained by WDNH.



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Army warning: unrest pushing Egypt to brink


CAIRO, Egypt (Reuters) - Egypt's army chief said political strife was pushing the state to the brink of collapse - a stark warning from the institution that ran the country until last year as Cairo's first freely elected leader struggles to contain bloody street violence.


Abdel Fattah al-Sisi, a U.S.-trained general appointed by President Mohamed Mursi last year to head the armed forces, added in a statement on Tuesday that one of the primary goals of deploying troops in cities on the Suez Canal was to protect the waterway that is vital for Egypt's economy and world trade.


Sisi's comments, published on an official army Facebook page, followed 52 deaths in the past week of disorder and highlighted the mounting sense of crisis facing Egypt and its Islamist head of state who is struggling to fix a teetering economy and needs to prepare Egypt for a parliamentary election in a few months that is meant to cement the new democracy.


Violence largely subsided on Tuesday, although some youths again hurled rocks at police lines in Cairo near Tahrir Square.


It seemed unlikely that Sisi was signaling the army wants to take back the power it held for six decades since the end of the colonial era and through an interim period after the overthrow of former air force chief Hosni Mubarak two years ago.


But it did send a powerful message that Egypt's biggest institution, with a huge economic as well as security role and a recipient of massive direct U.S. subsidies, is worried about the fate of the nation, after five days of turmoil in major cities.


"The continuation of the struggle of the different political forces ... over the management of state affairs could lead to the collapse of the state," said General Sisi, who is also defense minister in the government Mursi appointed.


He said the economic, political and social challenges facing the country represented "a real threat to the security of Egypt and the cohesiveness of the Egyptian state" and the army would remain "the solid and cohesive block" on which the state rests.


Sisi was picked by Mursi after the army handed over power to the new president in June once Mursi had sacked Field Marshal Hussein Tantawi, in charge of Egypt during the transition and who had also been Mubarak's defense minister for 20 years.


DEEPLY POLARISED


The 58-year-old previously headed military intelligence and studied at the U.S. Army War College. Diplomats say he is well known to the United States, which donates $1.3 billion in military aid each year, helping reassure Washington that the last year's changes in the top brass would not upset ties.


One of Sisi's closest and longest serving associates, General Mohamed el-Assar, an assistant defense minister, is now in charge of the military's relations with the United States.


Almost seven months after Mursi took office, Egyptian politics have become even more deeply polarized.


Opponents spurned a call by Mursi for talks on Monday to try to end the violence. Instead, protesters have rallied in Cairo and Alexandria, and in the three Suez Canal cities - Port Said, Ismailia and Suez - where Mursi imposed emergency rule.


On Tuesday, thousands were again on the streets of Port Said to mourn the deaths of two people in the latest clashes there, taking the total toll in Mediterranean port alone to 42 people. Most were killed by gunshots in a city where weapons are rife.


Mohamed Ezz, a Port Said resident speaking by telephone, heard heavy gunfire through the night. "Gunshots damaged the balcony of my flat, so I went to stay with my brother," he said.


Residents in the three canal cities had taken to the streets in protest at a nightly curfew now in place there. The president's spokesman said on Tuesday that the 30-day state of emergency could be shortened, depending on circumstances.


In Cairo on Tuesday afternoon, police again fired teargas as stone-throwing youths in a street near Tahrir Square, the centre of the 2011 uprising. But the clashes were less intense than previous days and traffic was able to cross the area. Street cleaners swept up the remains of burnt tires and other debris.


Street flare-ups are a common occurrence in divided Egypt, frustrating many people desperate for order and economic growth.


Although the general's comments were notably blunt, Egypt's military has voiced similar concerns in the past, pledging to protect the nation. But it has refused to be drawn back into a direct political role after its reputation as a neutral party took a pounding during the 17 months after Mubarak fell.


WARY MILITARY


"Egyptians are really alarmed by what is going on," said Cairo-based analyst Elijah Zarwan, adding that the army was reflecting that broader concern among the wider public.


"But I don't think it should be taken as a sign that the military is on the verge of stepping in and taking back the reins of government," he said.


In December, Sisi offered to host a national dialogue when Mursi and the rivals were again at loggerheads and the streets were aflame. But the invitation was swiftly withdrawn before the meeting went ahead, apparently because the army was wary of becoming embroiled again in Egypt's polarized politics.


Protests initially flared during the second anniversary of the uprising which erupted on January 25, 2011 and toppled Mubarak 18 days later. They were exacerbated in Port Said when residents were angered after a court sentenced to death several people from the city over deadly soccer violence.


Since the 2011 revolt, Islamists who Mubarak spent his 30-year rule suppressing have won 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. Mursi's supporters says protesters want to overthrow Egypt's first ever democratically elected leader by undemocratic means.


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. Sisi reiterated that the army's role would be support the police in restoring order.


The instability has provoked unease in Western capitals, where officials worry about the direction of a powerful regional player that has a peace deal with Israel. The United States condemned the bloodshed and called on Egyptian leaders to make clear violence was not acceptable.


Mursi's invitation to rivals to a national dialogue with Islamists on Monday was spurned by the main opposition National Salvation Front coalition, which described it as "cosmetic".


The only liberal politician who attended, Ayman Nour, told Egypt's al-Hayat channel after the meeting ended late on Monday that attendees agreed to meet again in a week.


He said Mursi had promised to look at changes to the constitution requested by the opposition but did not consider the opposition's request for a government of national unity. Mursi's pushing through last month of a new constitution which critics see as too Islamic remains a bone of contention.


(Additional reporting by Yasmine Saleh and Omar Fahmy in Cairo, Yusri Mohamed in Ismailia and Abdelrahman Youssef in Alexandria; Writing by Edmund Blair; Editing by Alastair Macdonald)



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