1 dead, 1 wounded in Old Town shooting









One man was shot to death and another seriously wounded in the Old Town neighborhood this evening, among at least six people shot since this afternoon in the city, authorities said.


A man, age 31, was shot and a man, age 20, was shot in the back in an attack about 6:15 p.m. in the 1300 block of North Sedgwick Street. The Cook County medical examiner's office identified him as Tyshawn Blanton, of the 1300 block of North Halsted Street.


The 31-year-old was taken to Advocate Illinois Masonic Medical Center, where he was declared dead, said Chicago Police News Affairs Officer Daniel O'Brien, citing preliminary information. He was at least the second shooting victim to die today in Chicago.





The other victim was taken to Northwestern Memorial Hospital in serious-to-critical condition, said Chicago Fire Department spokesman Chief Joe Roccasalva.


The shooting took place in front of a convenience store, police said.


Neighbors said one man was shot inside the store, the other outside. They reported hearing as many as 10 gunshots and later saw one man being taken away in a neck brace, the other being revived by paramedics.


Family members said the man who was killed grew up in the neighborhood and in the Cabrini-Green public housing complex nearby, and recently had a child. Before heading to the hospital, family members huddled in the street near the shop, crying.


The convenience store is a typical neighborhood shop, selling basic food and household items as well as cell phones. Uniformed officers and detectives were inside with store employees this evening as other officers canvassed the area.


Neighbors said they are angered by what they say seems to be an increase in crime in the area.


“You can’t even go to the store without getting shot and killed,” said Chante Morris, 30, who lives nearby.


Another shooting wounded a 21-year-old man about 90 minutes after the homicide. A 21-year-old was shot in the 600 block of East 51st Street about 7 p.m., Chicago Police News Affairs Officer Ron Gaines said. He was taken to John H. Stroger Jr. Hospital in fair condition with wounds to his right forearm and hip, Gaines said.


Earlier, two people were shot and seriously wounded, apparently in the parking lot of a small strip mall on the Southwest Side this afternoon, authorities said.


The shooting took place just after 4 p.m. near 65th Street and Western Avenue, said Chicago Police News Affairs Officer Daniel O'Brien. Photos from the scene showed police checking the pavement of a strip mall on the southwest corner of 65th and Western for shell casings following the shooting.


Two men were wounded in the shooting and both were in serious condition, said Chicago Fire Department spokesman Chief Joe Roccasalva. One was taken to Advocate Christ Medical Center in Oak Lawn for treatment, the other to John H. Stroger Jr. Hospital, he said.


On the scene, a 20-year-old man was shot in the leg was considered in serious condition, and the other man, age 19, shot in the leg, was considered in good condition, O'Brien said. The older of the two was taken to John H. Stroger Jr. Hospital of Cook County and the younger to Advocate Christ Medical Center.


Another man, 24, was shot in the 13000 block of South Drexel Avenue in the Altgeld Gardens housing complex. Though police didn't find a crime scene where the man said he was shot, neighbors did report hearing gunfire. He drove to Roseland Hospital but was later transferred to Advocate Christ Medical Center in serious condition with a gunshot wound to the chest and three more to the left arm, police said.


chicagobreaking@tribune.com

Twitter: @ChicagoBreaking





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Exhausted Egyptians count cost of political turmoil


ZAGAZIG, Egypt (Reuters) - These days, craftsmen, shopkeepers and other inhabitants of the Egyptian Delta town of Zagazig are often too busy making ends meet to ponder why life seems to be getting harder every day.


But when, exhausted, they finally come home and sit down to their evening meal, conversations inevitably turn to growing hardship and the frightening prospect of cuts in food subsidies as the economy slides further into crisis.


With their patience already stretched after years of upheaval, Egyptians - from the capital Cairo to smaller towns like Zagazig - appear to be nearing the point where discontent could explode into a new wave of unrest.


"There is no security. There is nothing," said Soheir Abdel Moneim, a retired school teacher, as she hurried through an open-air market in Zagazig in search of vegetables she could afford.


"The pound is falling. Everything is more expensive. Is there anything that has not become more expensive?" she asked with a shrug, as traders on bicycles loaded with their wares dodged through the chaos of the market.


Nearby, a torn poster of President Mohamed Mursi beams from the wall of a crumbling brick house, with the words "Liars! Liars!" scrawled over his face.


The mood of growing nervousness is bad news for Mursi, who faces a parliamentary election in coming months, and a new round of political feuding that could pitch Egypt back into civil strife.


Egypt's economy, once strong and popular among investors, has been in tatters since the revolt of 2011 that ousted Hosni Mubarak and shook the country to its foundations.


Disagreements over a new national constitution late last year triggered violent protests, dealing another blow to the economy and eroding trust in Mursi's government.


A country where cuts in food subsidies have caused riots in the past now faces the risk of further upheaval as Mursi prepares to impose austerity measures in order to obtain a desperately needed $4.8 billion loan from the International Monetary Fund.


In Zagazig, people worry about the future.


Farouk Sarhan, the 74-year-old manager of a shop selling women's clothes, said sales were already down by almost 50 percent from just a few weeks ago.


"No one is selling or buying. I had more activity last year," he said, stubbing out a cigarette with a deep sigh in his tiny store lined with mannequins of veiled women.


"Customers are not buying as much as before because of the economic situation."


The price of fresh food often goes up in winter but shoppers in the Zagazig market said recent increases had been steep, with tomatoes and cauliflower about 50 percent dearer than at the start of the year.


WHAT NEXT?


Egypt has been on the ropes since investors and tourists fled after the revolt, when people rose up to demand their freedom and also an end to economic policies they said simply lined the pockets of the rich.


On the economic front, the picture remains grim, although Qatar's decision to lend Egypt another $2 billion has offered some respite.


Foreign reserves are dwindling and the pound has been hitting new lows daily. Food and raw materials from abroad have become more expensive, hurting businesses and families in a desert nation which relies on imports to feed itself.


As in other parts of Egypt, people in Zagazig see complex economic trends in terms of the daily hardships they must endure, and it is Mursi's government and his Muslim Brotherhood allies who get the blame.


"Mursi doesn't feel our grievances," said Emad, a man in his late 30s who sells traditional Egyptian clothes by the side of a dusty street. He said he had been forced to raise prices to cover rising costs, upsetting his customers.


Pointing to one of the black embroidered gowns, Emad said: "We used to sell this for 35 pounds ($5.40). Now it's 45 pounds. We didn't raise the prices. Traders did.


"Very few people are buying. I used to sell 50 pieces a day, and now I sell 15 or 20. Today I still haven't sold anything."


Reliable opinion polls are unavailable in Egypt and it is hard to gauge how widespread people's views are. But in Zagazig, most of those interviewed by Reuters echoed Emad's feelings.


Economists worry that continued turmoil could prompt people and businesses to convert their savings into dollars en masse - a risky process known as dollarisation which has caused trouble in many emerging market crises before.


But in Zagazig, people laughed at the idea, saying only the rich could afford to buy foreign currency. "Dollars?" asked Nabil, a local trader, as others burst into laughter. "Give me some dollars! Of course we don't have any!"


SUPPORT FOR MURSI


But some were prepared to give Mursi a chance.


In the nearby village of al-Adwa, where the future president grew up in the family of a local farmer, brick walls and fences were plastered with posters of Mursi.


A crowd of farmers standing by the side of a dirt track cutting through the village shook their fists and shouted "Mursi! Mursi!" when asked about their political views.


But even in Adwa, where Mursi appeared to enjoy rock-solid support, locals said sudden increase in taxes or abrupt cuts to fuel or food subsidies would cost him dearly.


"If that happens that would be the worst thing. What am I going to do as a farmer?" said Said Youssef, his hands black from working the land. "Where are we going to get the money?"


Another man, Aly Saber, 65, said fertilizer prices had gone up by 50 Egyptian pounds in the past year alone, making his business less profitable.


"Things are tough here in the rural areas," he said as others nodded in agreement. "Everything is becoming more expensive."


Mohamed Gamal, the 42-year-old owner of a tiny shop selling kitchen appliances, said business was so bad that he would sometimes go for days without a single customer.


"I import goods all the time. Prices have gone up by 10-40 percent since the revolution. It's gone up even more in recent weeks," said Gamal, who, Like Mursi, grew up in Adwa.


He said his neighbors were suspicious about why he had to keep raising his prices.


"People just don't believe me," he said, hunched over his desk, cigarette smoke swirling above stacks of unsold trays, cups and ironing boards. "They are not convinced why things are getting more expensive. I buy them, and they stack up."


($1 = 6.4809 Egyptian pounds)


(Writing by Maria Golovnina; Editing by Giles Elgood)



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Stock futures flat ahead of earnings season start


NEW YORK (Reuters) - Stock index futures were little changed in low volume on Tuesday ahead of the unofficial start of an earnings season expected to show sluggish corporate growth.


Profits in the fourth quarter were expected to top lackluster results in the previous quarter, but analysts' current estimates are down sharply from where they were in October. Fourth-quarter earnings are expected to grow by 2.8 percent, according to Thomson Reuters data.


S&P 500 futures were up 0.2 point and slightly below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures were unchanged, and Nasdaq 100 futures were also flat.


Shares of Yum Brands Inc fell 5 percent to $64.50 in light premarket trading a day after the KFC parent warned sales in China, its top market, shrank more than expected in the fourth quarter.


ConAgra Foods Inc priced a public offering of 8.1 million common shares at $29.75 per share, the foodmaker said on Monday. ConAgra closed at $30.17 during regular Monday trading.


(Reporting by Rodrigo Campos; Editing by Jeffrey Benkoe)



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'Bama bashes Notre Dame 42-14 in BCS title game


MIAMI GARDENS, Fla. (AP) — Barely taking time to celebrate their latest national championship, Nick Saban and the Alabama Crimson Tide are ready to get back to work.


That's how they make it look so easy.


In what must be an increasingly frustrating scene for the rest of college football, another season ended with Saban and his players frolicking in the middle of a confetti-strewn field. Eddie Lacy ran all over Notre Dame, AJ McCarron turned in another dazzling performance through the air, and the Tide defense shut down the Fighting Irish until it was no longer in doubt.


The result was a 42-14 blowout in the BCS title game Monday night, not only making Alabama a back-to-back champion, but a full-fledged dynasty with three crowns in four years.


This one was especially satisfying to Saban.


"People talk about how the most difficult thing is to win your first championship," he said. "Really, the most difficult one to win is the next one, because there's always a feeling of entitlement."


Rest assured, that feeling won't last long in Tuscaloosa.


While Saban insisted he was "happy as hell" and "has never been prouder of a group of young men," it was hard to tell. He was already talking about reporting to the office Wednesday morning and getting started on next season.


"One of these days, when I'm sitting on the side of the hill watching the stream go by, I'll probably figure it out even more," Saban said. "But what about next year's team? You've got to think about that, too."


So, in short order, he'll be talking with underclassmen about entering the NFL draft, making sure everyone goes back to class on schedule, and getting started on that next depth chart.


"The Process," as he calls it, never stops.


"We're going to enjoy it for 24 hours or so," Saban said.


No. 2 Alabama quieted the top-ranked Irish on the very first drive — so much for waking up the echoes — and could've started the celebration at halftime, heading to the locker room with a commanding 28-0 lead.


The Tide (13-1) pushed it out to 35-0 midway through the third quarter on the third of McCarron's four touchdown passes, a 34-yarder to Amari Cooper with a defender nowhere in sight.


At that point, Alabama was on a 69-0 blitz in national title games, having scored the last 13 points in its 2010 triumph over Texas and blanked LSU 21-0 for last year's BCS crown.


When Everett Golson finally scored for Notre Dame (12-1) with about 4 minutes remaining in the third, it snapped a scoreless stretch of nearly two full games — 108 minutes and 7 seconds — by the Tide.


"It was just a complete game by the offense, defense and special teams," said Alabama linebacker C.J. Mosley, the defensive MVP with eight tackles, one of them behind the line.


Despite the dazzling numbers by McCarron — 20 of 28 for 264 yards — he was denied a second straight offensive MVP award in the title game. That went to Lacy, who finished with 140 yards rushing on 20 carries and scored two TDs. Not a bad finish for the junior, who surely helped his status in the NFL draft should he decide to turn pro.


Lacy also was MVP of the Southeastern Conference championship game, rushing for a career-best 181 yards in the thrilling victory over Georgia that gave Alabama a chance to repeat as champion.


The Tide will have some big holes to fill, no matter who decides to leave school early, with offensive tackle D.J. Fluker and cornerback Dee Milliner also pondering their draft prospects. There's not a lot of seniors on the roster, but All-America linemen Barrett Jones and Chance Warmack and safety Robert Lester are among those who definitely won't be back.


But Alabama had some huge holes to fill a year ago, too, with five players drafted in the first 35 picks.


That worked out just fine.


The Crimson Tide wrapped up its ninth Associated Press national title, breaking a tie with Notre Dame for the most by any school and gaining a measure of redemption for a bitter loss to the Irish almost four decades ago: the epic 1973 Sugar Bowl in which Ara Parseghian's team edged Bear Bryant's powerhouse 24-23.


"The process is ongoing," said Saban, tightlipped as ever and showing little emotion after the fourth BCS national title of his coaching career. "We have a 24-hour rule around here. We enjoy everything for 24 hours."


Notre Dame went from unranked in the preseason to the top spot in the rankings by the end of the regular season, winning two games in overtime and three other times by seven points or less.


But the long wait for a championship — the Irish haven't finished No. 1 since 1988 — will have to wait at least one more year.


"They just did what Alabama does," moaned Manti Te'o, Notre Dame's star linebacker and Heisman Trophy finalist, trying to digest an embarrassing loss in his final college game.


Golson will be back.


He completed his first season as the starter by going 21 of 36 for 270 yards, with a touchdown and an interception. But the young quarterback got no help from the running game, which was held to 32 yards — 170 below its season average.


"We've got to get physically stronger, continue close the gap there," said Brian Kelly, the Irish's third-year coach. "Just overall, we need to see what it looks like. Our guys clearly know what it looks like now — a championship football team. That's back-to-back national champions. That's what it looks like. That's what you measure yourself against there. It's pretty clear across the board what we have to do."


Kelly vowed this was only beginning, insisting the bar has been raised in South Bend no matter what the outcome.


"We made incredible strides to get to this point," he said. "Now it's pretty clear what we've got to do to get over the top."


Alabama is already there but still longing for more, not content even after the second-biggest rout of the BCS era that began in 1999. The only title game that was more of a blowout was USC's 55-19 victory over Oklahoma in the 2005 Orange Bowl, a title that was later vacated because of NCAA violations.


You could almost hear television sets around the country flipping to other channels as Alabama poured it on, a hugely anticipated matchup between two of the nation's most storied programs reduced to a laugher when the Tide scored on its first three possessions.


"We're going for it next year again," said offensive tackle Cyrus Kouandijo, only a sophomore and already the owner of two rings. "And again. And again. And again. I love to win. That's why I came here."


___


Follow Paul Newberry on Twitter at www.twitter.com/pnewberry1963


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Gas prices increasing in New Hampshire






CONCORD, N.H. (AP) — Gas prices are increasing in New Hampshire.


The average retail price for a gallon of gas rose 2.2 cents in the past week, to $ 3.41.






The national average is $ 3.26 a gallon.


The website Gasbuddy.com says prices in New Hampshire were 6.7 cents per gallon higher than the same day a year ago, and 1.2 cents per gallon lower than a month ago.


The national average is 6.8 cents per gallon lower than a year ago, and 9.3 cents per gallon lower than a month ago.


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Why Al Jazeera deal doesn't seem right






STORY HIGHLIGHTS


  • Al Gore sold Current to al Jazeera and could net an estimated $70 million

  • Howard Kurtz: Gore's Current network failed to gain an identity or viewers

  • He says it's odd that the former vice president is selling to an oil-rich potentate

  • Kurtz: Al Jazeera may have a tough time getting traction with U.S. viewers




Editor's note: Howard Kurtz is the host of CNN's "Reliable Sources" and is Newsweek's Washington bureau chief. He is also a contributor to the website Daily Download.


(CNN) -- So Al Gore starts a liberal cable network, which turns into a complete and utter flop, then sells it to a Middle East potentate in a deal that will bring him an estimated $70 million.


Is America a great country or what?


There is something highly unusual -- OK, just plain weird -- about a former vice president of the United States doing this deal with the emir of Qatar, Sheikh Hamad bin Khalifa al-Thani.



Howard Kurtz

Howard Kurtz



Al Jazeera, owned by said emir's government, is trying to buy its way into the American television market by purchasing Current TV for a half billion dollars. The only thing stranger would be if Gore had sold Current to Glenn Beck -- oh wait, Beck did try to buy it and was told no way within 15 minutes.


So the sale was in part about ideology, which opens the door to examining why Gore believes Al Jazeera gives "voice to those who are not typically heard" and speaks "truth to power."


Bill O'Reilly, on Fox News, calls the network "anti-American." Fox pundit Dick Morris says Gore has sold to a fount of "anti-Israel propaganda." Such labels are rooted in the network's role during the height of the war on terror, when it aired smuggled videos of Osama bin Laden and was denounced by Bush administration officials.


Watch: How Lance Armstrong lied to me about doping



But Al Jazeera English, the spinoff channel launched in 2006, doesn't have the same reputation. In fact, no less a figure than Secretary of State Hillary Clinton has praised it as "real news," and the channel has won journalism awards for its reporting on the Arab Spring and other global events.


To be sure, the main Al Jazeera network gives a platform to such figures as Yusuf al-Qaradawi. He's the Muslim cleric in Egypt who, The Washington Post gas reported, frequently appears on air to castigate Jews and America and has praised suicide bombings. But when I went to the home page of Al Jazeera English the other day, there was video of David Frost, the acclaimed British journalist who now works for the main network, interviewing Israeli President Shimon Peres.




That's not to say Al Jazeera America, the working name for the new channel, won't have its own biases. Al Jazeera English is sometimes determined to paint the U.S. in a negative light.


During a report on President Barack Obama signing a renewal of the Foreign Intelligence Surveillance Act, which entails a legitimate controversy over civil liberties, the reporter said flatly that the law "violate(s) U.S. constitutional rights in the name of national security."


Watch: Can Al Jazeera make it in the American market?


Dave Marash, the ABC News veteran who once worked for Al Jazeera English, told me the network has a "post-colonial" view of America and its stories can be infused with that attitude.


And there are real questions about how independent these channels are from the Qatar government that helps bankroll them. The director-general of Al Jazeera, Sheikh Ahmed bin Jassim al-Thani, is a member of the country's royal family and has no background in journalism.


Such details add to the odd spectacle of the ex-veep, who would have been running Mideast policy had he won a few more votes in Florida, selling -- and some say selling out -- to the emir. Not to mention that the crusader against climate change is taking petrodollars from an empire built on oil, the bete noire of environmentalists.


Watch: Hey Fox, Hillary Clinton was sick after all


But what is Al Jazeera buying? The network is going to have a tough time cracking the American market.


Its earlier reputation makes the company highly controversial, and other cable carriers might follow the lead of Time Warner Cable (which is no longer owned by CNN's parent company, Time Warner) in refusing to carry it. These carriers agreed to air Current TV, after all, and contracts generally require them to approve a major change in programming.


Global politics aside, it may just be bad business. There's a reason Al Jazeera English, which will supply 40% of the content to the new channel, has barely gotten a foothold in the United States. Most Americans aren't lusting for a steady diet of international news.


Watch: Did Nancy Pelosi go too far in photoshopping picture of congresswomen?


There's no denying that Gore, a onetime newspaper reporter who had testy relations with the press during his 2000 campaign, presided over a lousy cable channel. No one quite knew what Current was during the years when it aired mostly low-rent entertainment fare and was famous mainly for North Korea taking two of its correspondents, including Lisa Ling's sister Laura, into custody.


Then Gore tried to relaunch it as a talking head channel to the left of MSNBC, hiring Keith Olbermann -- a relationship that ended with his firing and mutual lawsuits -- along with the likes of Eliot Spitzer and Jennifer Granholm, former Michigan governor. Gore himself offered commentary during major political events.


It was the utter failure of that incarnation of Current that prompted Gore and co-founder Joel Hyatt to put the thing up for sale.


Some detractors have slammed Gore for hypocrisy because, while he has advocated higher taxes on the rich, he tried to get the Al Jazeera deal done by December 31 to avoid the Obama tax hike. (The sale didn't close until January 2.) I don't see a problem trying to legally take advantage of changes in the tax code, no matter what your political stance.


Nor do I want to prejudge Al Jazeera America. The marketplace will decide its fate.


But there is something unsettling about Gore making off with such a big payday from a government-subsidized channel after making such bad television. Nice work if you can get it.


Follow @CNNOpinion on Twitter


Join us at Facebook/CNNOpinion


The opinions expressed in this commentary are solely those of Howard Kurtz.






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8 wounded in South, Southwest side shootings









At least 9 people have been shot on the South, Southwest and West sides since Monday evening, according to police.


In the latest attack, a male was shot multiple times about 6:10 a.m. in the 4000 block of West Wilcox Street, Chicago Police News Affairs Officer Laura Kubiak said.


No further details were immediately available about the shooting, which happened in the West Garfield Park neighborhood.





Earlier, a 24-year-old man was shot about 4:20 a.m. this morning in the Brighton Park neighborhood, police said.


Shots rang out as the man was standing on the sidewalk in the 4600 block of South California Avenue, striking the man in the bicep and lower back, Chicago Police News Affairs Officer Hector Alfaro said.


The man managed to drive 15 blocks to the 3100 block of South California, where he was found by first responders. Paramedics transported the man to Mount Sinai Hospital, where his condition was stabilized.


About 2:30 a.m. in the Back of the Yards neighborhood, a 24-year-old man was shot in both thighs while walking in an alley, authorities said.


The shooting happened in the 900 block of West 53rd Street, Alfaro said. The man was taken to John H. Stroger, Jr. Hospital of Cook County, where his condition was stabilized.


About 9:50 p.m., a 17-year-old boy was shot multiple times near the intersection of 30th Street and South Tripp Avenue in the Little Village neighborhood, police said.


Two males exited a black SUV and approached the teenager as he walked down the sidewalk, shooting him multiple times, Alfaro said.


The teen was taken to Stroger, where he was listed in critical condition, Alfaro said.


Police officers found a vehicle matching the description of the suspects' SUV, and after a brief pursuit, the SUV struck a light pole in the 3900 block of West Cermak Road, Alfaro said.


Three occupants were taken into custody and were regarded as possible suspects. No injuries were reported.


Police described the shooting as gang-related, a description shared by a close family friend of the teenager, who asked to remain anonymous when interviewed near the crime scene.


About 8:30 p.m., two men and a woman were shot in the Chicago Lawn neighborhood. Two men emerged from a gangway in the 6200 block of South Rockwell Street and fired shots into a parked vehicle where the three people were sitting, Alfaro said.


A 19-year-old woman was struck in the chest was taken to Mount Sinai Hospital, Alfaro said. A 22-year-old man struck in the thigh and 23-year-old man shot in the chest and buttocks were both taken to Holy Cross Hospital, Alfaro said.


The conditions of all three were stabilized, Alfaro said.


About 7:45 p,m., a 31-year-old man was shot in Marquette Park neighborhood, Chicago Police News Affairs Officer Joshua Purkiss said. The man suffered a gunshot wound to the leg and his condition was stabilized on the scene, said Purkiss.


About 6:30 p.m. in the Washington Park neighborhood, another 31-year-old man was shot in the left arm in the 6000 block of South Indiana Avenue, Purkiss said. His condition was stabilized on the scene, said Purkiss.


Purkiss had no hospital information or information on circumstances in the Marquette Park and Washington Park shootings. Fire Department officials did not respond to attempts to contact them.


lford@tribune.com


asege@tribune.com





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Afghan peace efforts show flickers of life


WASHINGTON/ISLAMABAD (Reuters) - President Barack Obama and Afghan President Hamid Karzai will discuss matters of war, including future U.S. troop levels and Afghanistan's army, when they meet on Friday, but matters of peace may be the most delicate item on their long agenda.


After nearly 10 months in limbo, tentative reconciliation efforts involving Taliban insurgents, the Karzai government and other major Afghan factions have shown new signs of life, resurrecting tantalizing hopes for a negotiated end to decades of war.


Pakistan, which U.S. and Afghan officials have long accused of backing the insurgents and meddling in Afghanistan, has recently signaled an apparent policy shift toward promoting its neighbor's stability as most U.S. combat troops prepare to depart, top Pakistani and Afghan officials said.


In another potentially significant development, Taliban representatives met outside Paris last month with members of the Afghan High Peace Council - although not directly with members of the Karzai government, which they have long shunned.


U.S. officials, speaking on condition of anonymity, said the developments are promising - but that major challenges remain to opening negotiations, let alone reaching an agreement on the war-ravaged country's political future.


Hopes for Afghan peace talks have been raised before, only to be dashed. Last March, the Taliban suspended months of quiet discussions with Washington aimed at getting the insurgents and the Karzai government to the peace table.


Obama is expected to press the Afghan president to bless the formal opening of a Taliban political office in the Gulf state of Qatar as a way to jump-start inter-Afghan talks.


Karzai has been lukewarm to the idea, apparently fearing his government would be sidelined in any negotiations.


TRIP AT A TURNING POINT


Karzai's meeting with Obama, at the end of a three-day visit to Washington, is shaping up to be one of the most critical encounters between the two leaders, as the White House weighs how rapidly to remove most of the roughly 66,000 U.S. troops in Afghanistan and how large a residual force to leave after 2014.


Obama, about to begin his second term in office, appears determined to wrap up U.S. military engagement in Afghanistan. On Monday, he announced as his nominee for Pentagon chief former Nebraska Senator Chuck Hagel, who appears likely to favor a sizeable U.S. troop drawdown.


Other issues on the agenda have plenty of potential for causing friction: the future size and focus of the Afghan military; a festering dispute over control of the country's largest detention center; and the future of international aid after 2014.


Karzai's trip "is one of the most important ones because the discussions we are going to have with our counterparts will define the relations between (the) United States and Afghanistan," Afghan Foreign Minister Zalmay Rassoul told the lower house of parliament this month.


No final announcement on post-2014 U.S. troop levels is expected during Karzai's visit, and the issue is further complicated by Washington's insistence on legal immunity for American troops that remain.


General John Allen, the top U.S. and NATO commander in Afghanistan, recommended keeping between roughly 6,000 and 15,000 U.S. troops in Afghanistan after 2014, but the White House is considering possibly leaving as few as 3,000 troops.


A U.S. official, speaking on condition of anonymity, said the White House had asked for options to be developed for keeping between 3,000 and 9,000 troops in the country.


PAST PEACE HOPES DASHED


Last year, the Obama administration hoped to kick-start peace talks with a deal that would have seen Washington transfer five Taliban prisoners from Guantanamo Bay prison. In return, the Taliban would renounce international terrorism and state a willingness to enter talks with Karzai's representatives.


That deal never came off, and the question now is whether it, or an alternative peace process, can get under way as the U.S. military presence rapidly winds down.


Looking at developments in the last few months, "you could see that there are things happening," said one U.S. official, who was not authorized to speak for the record.


At the end of 2012, Pakistan released four Afghan Taliban prisoners who were close to the movement's reclusive leader, Mullah Mohammed Omar. It appeared to be a step toward meeting Afghanistan's long-standing insistence that Islamabad free those who could help promote reconciliation. A senior Afghan official welcomed the release.


A member of Pakistan's parliament closely involved in Afghan policy-making said there are signs of a shift in the thinking of Pakistan's powerful military. Some in the military, which has long regarded Afghanistan as a battleground in its existential conflict with rival India, are now saying that the graver threat comes from Pakistan's own militants.


"Yes, there is skepticism. The hawks are there. But the fact is that previously there were absolutely no voices in the army with this kind of positive thinking," the parliamentarian said.


"Pakistan has also realized that there won't be a complete withdrawal of the U.S. from Afghanistan," the lawmaker said. "The security establishment realizes it has to compromise somewhere. Hence the Taliban releases. ... Hence the statements from even the most skeptical Afghan officials that there is a change in Pakistani thinking."


Ghairat Baheer, who represented the Hezb-e-Islami faction at last month's peace talks in the Paris suburb of Chantilly, rejected a continued U.S. military presence in Afghanistan, but praised the Pakistan prisoner release as a sign of its good intentions.


WAITING FOR THE TALIBAN


After more than a year of frustration, Obama administration officials are skeptical about luring the Taliban to peace talks, citing what appears to be a deep fissure within the movement between moderates who favor entering the political process and hard-liners committed to ousting both NATO troops and Karzai.


The Taliban's lead negotiator, Tayeb Agha, whom the Obama administration regards as a reliable interlocutor, offered to resign last month in apparent frustration, the Daily Beast website reported.


Taliban envoys have yet to meet officially with Karzai's government, and the insurgents demand a rewriting of the Afghan constitution.


"I don't think anyone knows where (reconciliation) stands. And I mean that because there are a lot of reconciliation talks and a lot of games that are being played in a lot of places," said Fred Kagan, a military analyst at the conservative American Enterprise Institute.


"The likelihood of getting an acceptable deal that actually secures our interests is vanishingly small," he said. "But the probability that you could get the deal and have it implemented in time to make this drawdown timeline make sense is nonsense."


(Additional reporting by Phil Stewart and David Alexander in Washington, and Hamid Shalizi in Kabul. Editing by Christopher Wilson)



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Stock futures slip after stocks hit five-year high


NEW YORK (Reuters) - Stock index futures fell on Monday, with markets expected to consolidate after the S&P 500 index closed at a five-year high on Friday.


Last week was the best for U.S. stocks in more than a year as a budget deal and economic data boosted investor confidence.


Financial shares will be in focus a day after global regulators gave banks four more years and greater flexibility to build up cash buffers, scaling back moves that aimed to help prevent another financial crisis.


By spurring credit, the easing of the bank rule may help support growth, boosting investments in equities and other risk assets.


S&P 500 futures dipped 1.3 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 13 points, and Nasdaq 100 futures added 1 point.


Walt Disney Co started an internal cost cutting review several weeks ago that may include layoffs at its studio and other units, three people with knowledge of the effort told Reuters.


Video-streaming service Netflix Inc said it will carry previous seasons of some popular shows produced by Time Warner's Warner Bros Television.


Major U.S. technology companies could miss estimates for fourth-quarter earnings as budget worries likely led some corporate clients to tighten their belts last month.


Amazon shares rose 2.3 percent in premarket trading after Morgan Stanley raised is rating on the stock to "overweight" from "equal weight."


(Reporting by Rodrigo Campos; Editing by Kenneth Barry)



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Here come the big boys


Here come the big boys.


The NFL's wild-card weekend is over, with nary an upset. Moving on are division winners Green Bay, Houston and Baltimore, along with NFC West runner-up Seattle and the only rookie quarterback still standing: Russell Wilson.


Ahead are some daunting challenges as the Ravens visit Denver, the Texans go to New England, the Packers head to San Francisco and the Seahawks journey to Atlanta.


Only the Seahawks-Falcons isn't a rematch.


Seattle isn't intimidated one bit about facing the NFC's top seed.


"Despite the fact that we have a 'nobody' team," Seattle cornerback Richard Sherman said after Sunday's convincing 24-14 comeback win at Washington, "a team not full of first-rounders and things like that, we have a lot of guys that play at a high level."


Of course, so do the Falcons (13-3), Broncos (13-3), Patriots (12-4) and 49ers (11-4-1).


"They have a great coach and a great quarterback and they have great role players on their team," Texans running back Arian Foster said of the Patriots, who routed Houston 42-14 last month. "I have a lot of respect for them, but we can play ball, too."


The Texans beat Cincinnati 19-13 on Saturday, then Green Bay took out Minnesota 24-10. In Sunday's other game, Baltimore eliminated Indianapolis 24-9.


The playoffs continue next Saturday with Baltimore (11-6) at Denver, followed by Green Bay (12-5) at San Francisco. The Broncos beat the Ravens 34-17 three weeks ago, while the 49ers knocked off the Packers 30-22 in the season opener.


On Sunday, it's Seattle (12-5) at Atlanta, followed by Houston (13-4) visiting New England.


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Ravens at Broncos


Not only is Baltimore thrilled to keep playing and keep star linebacker Ray Lewis' career going, but the Ravens got the opponent they sought for the divisional round.


"I wanted Denver," said Anquan Boldin, who set a franchise record with 145 yards receiving, including the clinching touchdown against Indianapolis (11-6). "Because they beat us. We'll make it different."


Lewis made 13 tackles in his first game back in nearly three months. He ended his last home game in Baltimore before his impending retirement by lining up at fullback for the final kneel-down. Then Lewis went into a short version of his trademark dance before being mobbed by teammates. He followed with a victory lap, his right triceps, covered by a brace, held high in salute to the fans.


Joe Flacco became the first quarterback to win a postseason game in each of his first five seasons and John Harbaugh is the first coach to do so.


"I love our team," Lewis said, "and I'm really looking forward to going out there and playing them next week."


The loss ended the Colts' turnaround season in which they went from 2-14 to the playoffs in coach Chuck Pagano's first year in Indianapolis. Pagano missed 12 weeks while undergoing treatment for leukemia and returned last week.


Andrew Luck completed 28 of 54 passes, the most attempts by a rookie in a playoff game, for 288 yards.


Packers at 49ers


It's been a long time since these teams met on kickoff weekend, and much has changed.


Green Bay has become a bit more balanced on offense and somewhat stingier on defense than it was back in September. San Francisco has second-year quarterback Colin Kaepernick instead of Alex Smith, and receiver Michael Crabtree finally has developed into a threat.


The Packers held league rushing king Adrian Peterson to 99 yards in beating the Vikings (10-7), 100 yards less than he got on them the previous week.


"I don't think we had our identity at that point," QB Aaron Rodgers said of the Packers team San Francisco beat. "We were trying a lot of different things."


Seahawks at Falcons


Atlanta has flopped in its last three playoff games, including losing at home to Green Bay two years ago in a similar scenario.


Seattle won't bring as high-powered an offense as the Packers did to Atlanta, but it's versatile enough with the creative Wilson, bulldozing halfback Marshawn Lynch and a deep group of receivers.


The most significant challenge for the Falcons, though, will be a defense that completely shut down the Redskins and a hobbling Robert Griffin III for the final three quarters of their wild-card game.


Washington (10-7) had 129 yards in the first quarter and 74 for the rest of the game.


"Seventy yards in 3½ quarters is ridiculously good defense," coach Pete Carroll said after his Seahawks won their sixth straight and snapped Washington's seven-game winning streak.


Texans at Patriots


Both teams say the Monday night romp by New England on Dec. 10 is not an indicator of what's ahead. For their sake, the Texans better hope that is true.


"We didn't play our best football up there and we hurt ourselves with penalties and mistakes," said Foster, who rushed for 140 yards and a TD against the Bengals (10-7). "Anytime you give (the Patriots) opportunities, they'll take advantage of them. But we'll play our best up there."


They have no choice, and Patriots coach Bill Belichick fully expects a tighter game.


"When you play a team twice during the season, the games are totally different. They never go the same way," Belichick said. "We'll be able to certainly look at some of the matchups individually, guys that faced each (other) in the game. As far as plays and calls and things like that matching up, I'm sure they'll have some new wrinkles. I'm sure we'll have some, too. It will be totally different."


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


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