Brain image study: Fructose may spur overeating


This is your brain on sugar — for real. Scientists have used imaging tests to show for the first time that fructose, a sugar that saturates the American diet, can trigger brain changes that may lead to overeating.


After drinking a fructose beverage, the brain doesn't register the feeling of being full as it does when simple glucose is consumed, researchers found.


It's a small study and does not prove that fructose or its relative, high-fructose corn syrup, can cause obesity, but experts say it adds evidence they may play a role. These sugars often are added to processed foods and beverages, and consumption has risen dramatically since the 1970s along with obesity. A third of U.S. children and teens and more than two-thirds of adults are obese or overweight.


All sugars are not equal — even though they contain the same amount of calories — because they are metabolized differently in the body. Table sugar is sucrose, which is half fructose, half glucose. High-fructose corn syrup is 55 percent fructose and 45 percent glucose. Some nutrition experts say this sweetener may pose special risks, but others and the industry reject that claim. And doctors say we eat too much sugar in all forms.


For the study, scientists used magnetic resonance imaging, or MRI, scans to track blood flow in the brain in 20 young, normal-weight people before and after they had drinks containing glucose or fructose in two sessions several weeks apart.


Scans showed that drinking glucose "turns off or suppresses the activity of areas of the brain that are critical for reward and desire for food," said one study leader, Yale University endocrinologist Dr. Robert Sherwin. With fructose, "we don't see those changes," he said. "As a result, the desire to eat continues — it isn't turned off."


What's convincing, said Dr. Jonathan Purnell, an endocrinologist at Oregon Health & Science University, is that the imaging results mirrored how hungry the people said they felt, as well as what earlier studies found in animals.


"It implies that fructose, at least with regards to promoting food intake and weight gain, is a bad actor compared to glucose," said Purnell. He wrote a commentary that appears with the federally funded study in Wednesday's Journal of the American Medical Association.


Researchers now are testing obese people to see if they react the same way to fructose and glucose as the normal-weight people in this study did.


What to do? Cook more at home and limit processed foods containing fructose and high-fructose corn syrup, Purnell suggested. "Try to avoid the sugar-sweetened beverages. It doesn't mean you can't ever have them," but control their size and how often they are consumed, he said.


A second study in the journal suggests that only severe obesity carries a high death risk — and that a few extra pounds might even provide a survival advantage. However, independent experts say the methods are too flawed to make those claims.


The study comes from a federal researcher who drew controversy in 2005 with a report that found thin and normal-weight people had a slightly higher risk of death than those who were overweight. Many experts criticized that work, saying the researcher — Katherine Flegal of the Centers for Disease Control and Prevention — painted a misleading picture by including smokers and people with health problems ranging from cancer to heart disease. Those people tend to weigh less and therefore make pudgy people look healthy by comparison.


Flegal's new analysis bolsters her original one, by assessing nearly 100 other studies covering almost 2.9 million people around the world. She again concludes that very obese people had the highest risk of death but that overweight people had a 6 percent lower mortality rate than thinner people. She also concludes that mildly obese people had a death risk similar to that of normal-weight people.


Critics again have focused on her methods. This time, she included people too thin to fit what some consider to be normal weight, which could have taken in people emaciated by cancer or other diseases, as well as smokers with elevated risks of heart disease and cancer.


"Some portion of those thin people are actually sick, and sick people tend to die sooner," said Donald Berry, a biostatistician at the University of Texas MD Anderson Cancer Center in Houston.


The problems created by the study's inclusion of smokers and people with pre-existing illness "cannot be ignored," said Susan Gapstur, vice president of epidemiology for the American Cancer Society.


A third critic, Dr. Walter Willett of the Harvard School of Public Health, was blunter: "This is an even greater pile of rubbish" than the 2005 study, he said. Willett and others have done research since the 2005 study that found higher death risks from being overweight or obese.


Flegal defended her work. She noted that she used standard categories for weight classes. She said statistical adjustments were made for smokers, who were included to give a more real-world sample. She also said study participants were not in hospitals or hospices, making it unlikely that large numbers of sick people skewed the results.


"We still have to learn about obesity, including how best to measure it," Flegal's boss, CDC Director Dr. Thomas Frieden, said in a written statement. "However, it's clear that being obese is not healthy - it increases the risk of diabetes, heart disease, cancer, and many other health problems. Small, sustainable increases in physical activity and improvements in nutrition can lead to significant health improvements."


___


Online:


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


___


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


Mike Stobbe can be followed at http://twitter.com/MikeStobbe


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Asia holds breath as U.S. fiscal talks go to the wire


SYDNEY (Reuters) - Markets were eerily quiet in Asia as trade resumed on Wednesday with investors anxiously waiting to see if the U.S. Congress could strike a last-minute deal to avoid triggering tax rises and spending cuts that could threaten the global economy.


The U.S. Senate early on Tuesday passed a bill that aims to avoid the "fiscal cliff" of $600 billion in automatic spending cuts and tax increases.


However, the package immediately ran into opposition from House Republicans, who were meeting to decide whether to reject or amend the bill .


"Frankly, we don't know what to make of it all. It's like a circus there," said one exasperated forex dealer at an Australian bank in Sydney.


"The markets have always assumed they would eventually strike a deal that would avoid the worst affects of the fiscal cliff, but it's getting harder and harder to stay optimistic."


He suspected equity markets would be on the defensive as they opened, with safe-haven bonds in demand. Getting a read on trends was tricky as U.S. Treasuries and stock futures were yet to trade, while Tokyo was off on holiday.


Currencies were trading, but the only major move was further weakness in the Japanese yen as investors wagered the Bank of Japan would have to take ever more aggressive easing steps to support the economy and satisfy the new government.


The dollar held firm on the yen at 86.75 yen, having touched its highest level since August 2010. The Japanese currency also dropped to depths not seen in over four years against the Australian and New Zealand dollars.


The euro was a shade firmer against the U.S. dollar at $1.3216, but turnover was extremely thin.


Spot gold was little changed at $1,674 an ounce, while oil futures dipped 20 cents to $91.62.


(Reporting by Wayne Cole; Editing by Eric Meijer)



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Residents Flee Bangui, Capital of Central African Republic


Sia Kambou/Agence France-Presse — Getty Images


Soldiers from Congo arrived at Central African Republic's capital Bangui Monday.







JOHANNESBURG — As efforts to broker a deal to stop a rebel advance failed, residents of the capital of the Central African Republic were packing up their belongings and fleeing into the country’s vast hinterlands, fearing a major battle between government troops and guerrilla fighters.




Rebels rejected an offer from the country’s president, François Bozizé. It was brokered by the African Union and proposed forming a government of national unity. But the rebels balked, saying that previous agreements with the president had been made and quickly broken.


“Bozizé speaks, but does not keep his word,” said a rebel spokesman, Juma Narkoyo. “That is why we have taken up arms to make our voices heard.”


The rebel coalition, known as Seleka, is made up of several groups of fighters opposed to the government of Mr. Bozizé, who came to power after a brief civil war in 2003 and has had a tenuous grip on the presidency ever since, winning two elections but facing a constant threat of rebellions aimed at toppling him.


The Seleka rebels say that Mr. Bozizé has not lived up to the terms of a peace agreement signed in 2007. Mr. Narkoyo said the rebels had no plans to seize the capital, Bangui, but in the past they have advanced despite claims that they would stay put.


Government officials, meanwhile, said that the rebels were not actually from the Central African Republic, but were instead foreign provocateurs bent on destabilizing one of the most fragile nations in Africa in order to exploit its mineral wealth.


“They are Chadians, Sudanese and Nigerians,” said Louis Oguéré Ngaïkouma, secretary general of Mr. Bozizé’s political party. “It is a conspiracy against the people of the Central African Republic and its president to steal our riches.”


Suspicion of one’s neighbors is no idle thing in this part of Africa, where local wars often become wider conflagrations. The Democratic Republic of Congo, which lies to the south of the Central African Republic, has been caught up in one of the deadliest conflicts of the last half-century as Rwandan, Ugandan and Congolese troops fought over the country’s bounty of diamonds, coltan and tin.


War in Sudan, which lies north of the Central African Republic, has also spilled over into its neighbors, especially Chad, which also borders the Central African Republic.


Hugues Kossi, a college student in Bangui, said he feared all-out war in his city.


“I am afraid of combat and stray bullets,” he said. But he said he was also tired of the poverty and misrule of Mr. Bozizé’s government.


“It is bad governance that has led us to this situation,” Mr. Kossi said.


The United States has closed its embassy in Bangui and evacuated its staff members. The French government has said it will not help Mr. Bozizé fight the rebels, but that it has deployed an extra contingent of soldiers from a neighboring country to help protect French citizens.


Christian Panika contributed reporting from Bangui, Central African Republic.



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Ban on demanding Facebook passwords among new 2013 state laws






CHICAGO (Reuters) – Employers in California and Illinois will be prohibited from demanding access to workers’ password-protected social networking accounts and teachers in Oregon will be required to report suspected student bullies thanks to new laws taking effect in 2013.


In all, more than 400 measures were enacted at the state level during 2012 and will become law in the new year, according to the National Conference of State Legislatures (NCSL).






Some of the statutes, which deal with everything from consumer protection to gun control and healthcare, take effect at the stroke of midnight. Others will not kick in until later in the year.


The raft of measures includes a new abortion restriction in New Hampshire, public-employee pension reform in California and Alabama, same-sex marriage in Maryland, and a requirement that private insurers in Alaska cover autism in kids and young adults, NCSL said.


In New Hampshire, a rarely used form of late-term abortion will become illegal except to save the life of the mother – and even then only if two doctors from separate hospitals certify the procedure is medically necessary.


John Lynch, the state’s outgoing Democratic governor, had vetoed the measure, saying it would threaten the lives of women in rural areas. But the state’s Republican-controlled legislature later overrode him.


In California and Illinois, laws that take effect at 12:01 a.m. local time will make it illegal for bosses to request social networking passwords or non-public online account information from their employees or job applicants.


Michigan’s Republican Governor Rick Snyder signed a similar measure into law earlier this month that took effect immediately. The Michigan law also penalizes educational institutions for dismissing or failing to admit a student who does not provide passwords and other account information used to access private internet and email accounts, including social networks like Facebook and Twitter.


But workers and job seekers in all three states will still need to be careful what they post online: Employers may continue to use publicly available social networking information. So inappropriate pictures, tweets and other social media indiscretions can still come back to haunt them.


Gun violence – in places where it’s all too common, such as Chicago, and in places where it’s unexpected, such as Sandy Hook Elementary School in Newtown, Connecticut – was big news in 2012. But only a handful of new state firearms laws are set to take effect in 2013.


In Michigan, the definition of a “pistol” under the law will now include any firearm less than 26 inches in length. The new definition encompasses some rifles with folding stocks and will make the weapons subject to the same restrictions as pistols.


In Illinois, certain guns currently regulated by state law, including paintball guns, will be excluded from the definition of a firearm and participants in military re-enactments will be exempt from some weapons laws.


Another big story in 2012 was the effort by lawmakers in a number of cash-strapped states to put their public employee pension funds on a sounder financial footing.


In California and Alabama, reforms designed to begin to address the unfunded liabilities of those retirement systems will take effect in 2013.


Among the other new laws on the books in 2013:


* In California, prison workers and peace officers will now be prohibited from having sex with inmates and prisoners in transport.


* In Illinois, sex offenders will be prohibited from distributing candy on Halloween, or playing Santa or the Easter Bunny.


* In Oregon, employers won’t be allowed to advertise a job vacancy if they won’t consider applicants who are currently out of work.


* In Kentucky, residents will be prohibited from releasing feral or wild hogs back into the wild and Illinois will ban the possession and sale of shark fins.


* And in Florida, the term “motor vehicle” will no longer apply to the specialized all-terrain vehicles with over-sized tires known as “swamp buggies” that are popular in some parts of the state.


(Reporting by James B. Kelleher; Editing by Greg McCune and Nick Zieminski)


Tech News Headlines – Yahoo! News





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Clinton's blood clot an uncommon complication


The kind of blood clot in the skull that doctors say Hillary Rodham Clinton has is relatively uncommon but can occur after an injury like the fall and concussion the secretary of state was diagnosed with earlier this month.


Doctors said Monday that an MRI scan revealed a clot in a vein in the space between the brain and the skull behind Clinton's right ear.


The clot did not lead to a stroke or neurological damage and is being treated with blood thinners, and she will be released once the proper dose is worked out, her doctors said in a statement.


Clinton has been at New York-Presbyterian Hospital since Sunday, when the clot was diagnosed during what the doctors called a routine follow-up exam. At the time, her spokesman would not say where the clot was located, leading to speculation it was another leg clot like the one she suffered behind her right knee in 1998.


Clinton had been diagnosed with a concussion Dec. 13 after a fall in her home that was blamed on a stomach virus that left her weak and dehydrated.


The type of clot she developed, a sinus venous thrombosis, "certainly isn't the most common thing to happen after a concussion" and is one of the few types of blood clots in the skull or head that are treated with blood thinners, said neurologist Dr. Larry Goldstein. He is director of Duke University's stroke center and has no role in Clinton's care or personal knowledge of it.


The area where Clinton's clot developed is "a drainage channel, the equivalent of a big vein inside the skull — it's how the blood gets back to the heart," Goldstein explained.


It should have no long-term consequences if her doctors are saying she has suffered no neurological damage from it, he said.


Dr. Joseph Broderick, chairman of neurology at the University of Cincinnati College of Medicine, also called Clinton's problem "relatively uncommon" after a concussion.


He and Goldstein said the problem often is overdiagnosed. They said scans often show these large "draining pipes" on either side of the head are different sizes, which can mean blood has pooled or can be merely an anatomical difference.


"I'm sure she's got the best doctors in the world looking at her," and if they are saying she has no neurological damage, "I would think it would be a pretty optimistic long-term outcome," Broderick said.


A review article in the New England Journal of Medicine in 2005 describes the condition, which more often occurs in newborns or young people but can occur after a head injury. With modern treatment, more than 80 percent have a good neurologic outcome, the report says.


In the statement, Clinton's doctors said she "is making excellent progress and we are confident she will make a full recovery. She is in good spirits, engaging with her doctors, her family, and her staff."


___


Online:


Medical journal: http://dura.stanford.edu/Articles/Stam_NEJM05.pdf


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Wall Street ends 2012 riding high on "cliff" deal optimism

NEW YORK (Reuters) - U.S. stocks closed out 2012 with their strongest day in more than a month, putting the S&P 500 up 13.4 percent for the year, as lawmakers in Washington closed in on a resolution to the "fiscal cliff" negotiations.


The S&P 500's gain for the year marks its best performance since 2009, as stocks navigated through debt crises in Europe and the United States that dominated the headlines. Still, with numerous issues involving budget talks unresolved, markets could still be open to a shock should the deal break down unexpectedly.


Fittingly, in the last session of the year, stocks bounced back and forth on the headlines out of Washington, as both President Barack Obama and Republican Senate leader Mitch McConnell issued statements indicating a deal to avert the cliff was close.


"The worst news could have been the president coming out and saying, 'We don't have a deal and we've giving up,' and he didn't say that," said Ron Florance, managing director of investment strategy for Wells Fargo Private Bank, based in Scottsdale, Arizona.


"My personal skepticism, I don't trust anything out of Washington until it is signed, sealed and delivered, and it is not signed, sealed and delivered."


While a deal on the cliff is not yet official, investors may be ready to take on more risk next year in hopes of a greater reward.


McConnell said an agreement had been reached with Democrats on all of the tax issues in the potential deal, removing a large hurdle in the talks. An agreement is needed in order to avert a combination of tax hikes and spending cuts that many believe could push the U.S. economy into recession.


A source familiar with the matter said an emerging deal, if adopted by Congress and President Barack Obama, would raise $600 billion in revenue over the next 10 years by increasing tax rates for individuals making more than $400,000 and households earning above $450,000 annually.


Despite the uncertainty, the market encountered only occasional bouts of volatility this year. For the first time since 2006, the CBOE Volatility Index or VIX <.vix>, the market's favored indicator of anxiety, did not surpass the 30 level, a threshold that usually signals heightened worry among investors.


"Given all the threats in 2012, the VIX was relatively tranquil," said Bill Luby, the author of the VIX and More blog in San Francisco, citing the crises in Spain and Greece, along with constant intervention from the Federal Reserve.


The Dow Jones industrial average <.dji> gained 166.03 points, or 1.28 percent, to end at 13,104.14. The Standard & Poor's 500 Index <.spx> gained 23.76 points, or 1.69 percent, to finish at 1,426.19. The Nasdaq Composite Index <.ixic> gained 59.20 points, or 2.00 percent, to close at 3,019.51.


Monday's gains enabled the S&P 500 to snap a five-day losing streak, its longest skid since September.


The S&P 500 closed out 2012 with a 13.4 percent gain for the year, compared with a flat performance in 2011. The Dow rose 7.3 percent in 2012 and the Nasdaq climbed 15.9 percent.


Financials <.gspf> were the strongest of the S&P's 10 industry sectors this year, gaining more than 26 percent, led by Bank of America , which more than doubled in 2012, and was the best performer of the Dow industrials.


Of the S&P's 10 sectors, only defensively oriented utilities <.gspu> ended the year lower, falling 2.9 percent.


Gains in Apple Inc , the most valuable U.S. company, helped lift the Nasdaq. The stock rose 4.4 percent to $532.17, lifting the S&P information technology sector index <.gspt> up 2.2 percent. For the year, Apple rose 31.4 percent, ending with a market value of about $501.4 billion.


Each of the Dow's 30 components finished the session in positive territory, led by a 3.2 percent climb in Caterpillar Inc to $89.58.


Volume was modest, with about 6.06 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, slightly below the daily average of 6.42 billion.


Advancing stocks outnumbered declining ones on the NYSE by a ratio of 6 to 1, while on the Nasdaq, four stocks rose for every one that fell.


(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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Afghan Army Deaths on the Rise





KABUL, Afghanistan — The Afghan government has hit a grim record in its quest to take over the country’s security from coalition forces: more than 1,000 soldiers died in 2012, a roughly 20 percent increase from 2011.




Though the Afghan Army’s death rates have outstripped those for international forces in recent years, the new figures show the widest margin yet, as more and more Afghan units have taken the field. International forces were reported to have lost about 400 soldiers in 2012, the lowest number since 2008.


The progress of the Afghan National Army in being able to fight the insurgency is crucial to the international coalition’s exit strategy as the formal end of NATO combat operations looms in 2014. Afghan officials say that Afghan forces now plan and lead 80 percent of combat operations across the country. And as the army has filled out its ranks, the number of those killed has risen as well. Since 2008, the number of enlisted soldiers has nearly tripled, to 195,000.


Depending on how one reads the numbers, the latest figures can be both hopeful and troubling. Inasmuch as the uptick in deaths indicates a more active role for the army, the data is encouraging: Afghan-led operations would be expected to result in more Afghan casualties, after all. But for some, the statistics also raise questions about whether the army is ready to take over control of the country’s security.


“These high figures send a message to Afghans as well as the international community that the Afghan security forces are not ready to take over and that we will witness even more severe casualties in the next couple of years,” said Jawid Kohistani, a military analyst based in Kabul. “The only thing preventing the Taliban from taking over a district or a province or carrying out more audacious attacks is the presence of foreign forces who are equipped with modern and advanced technology.”


Progress has been uneven on numerous fronts. Accidents make up a significant number of the Afghan Army deaths. Almost no units can operate without assistance from coalition forces. And defections and low re-enlistment rates are also troubling — the government has to replace about a third of its troops every year.


Even the Defense Ministry acknowledged weaknesses when announcing the updated figures Sunday. Gen. Zahir Azimi, the ministry’s spokesman, said that poor equipment and training left soldiers exposed. Homemade bombs and mines caused about 85 percent of the deaths this year, a figure he said would come down with proper equipment. Intelligence gathering is also a weak spot for the national army.


“We are still heavily relying on foreigners for our intelligence,” he said. “We are hopeful that by the end of 2014 our army is equipped with intelligence capabilities and equipment.”


Among other concerns the government must consider while building the army is how to keep soldiers from being killed by the Taliban. In recent weeks, the Taliban have mounted a campaign to kidnap and kill soldiers who are on leave from their jobs. On Saturday, the Taliban killed a soldier returning from vacation to his base in Laghman Province.


“They take soldiers out of their homes and brutally execute them,” General Azimi said. “Can anyone see even a small bit of respect for human rights?”


But if the general sounded somewhat chastened by the task ahead, commanders on the ground struck a more upbeat note about the future.


“The army is getting better every day and our soldiers will not face any problem next year,” said Gen. Zamarai, commander of the second brigade of the Afghan National Army in Paktika Province, who uses only one name. “As the foreign forces leave, the army is filling the districts and bases, and so far we have managed to provide tight security for the residents of the province.”


Farooq Jan Mangal contributed reporting from Khost Province, Afghanistan.



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The 12 Biggest Stories of the Year on Social Media









UPDATED
12/28/2012 at 04:00 PM EST

Originally published 12/30/2012 at 06:45 PM EST







Liam and Miley; Blake and Ryan


Wireimage(2)


Question: What do Miley Cyrus, Blake Lively and a teeny-weeny piglet have in common?

Answer: They're all among the most popular PEOPLE.com stories on social media!

That's right – this year, you cared most about weddings, engagements – and one super-small swine. Check out PEOPLE.com stories that showed up the most in users' Twitter and Facebook feeds!

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Kenya hospital imprisons new mothers with no money


NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.


Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.


Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.


"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."


"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."


The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.


Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.


"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.


She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.


A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.


"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.


Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.


One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.


Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.


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Associated Press reporter Tom Odula contributed to this report.


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Fiscal deal stalls as clock ticks to deadline


WASHINGTON (Reuters) - Efforts to prevent the economy from tumbling over a "fiscal cliff" stalled on Sunday as Democrats and Republicans remained at loggerheads over a deal that would prevent taxes for all Americans from rising on New Year's Day.


One hour before they had hoped to present a plan, Democratic and Republican Senate leaders said they were still unable to reach a compromise that would stop the automatic tax hikes and spending cuts that could push the U.S. economy back into recession.


"There are still serious differences between the two sides," said Senate Democratic leader Harry Reid.


Progress still appeared possible after the two sides narrowed their differences on tax increases and Republicans indicated they would withdraw a contentious proposal to slow the growth of Social Security retirement benefits.


Failure to secure a deal would deliver a heavy blow to the U.S. economy just as it is showing signs of a quicker recovery. Planned tax increases and spending cuts would suck $600 billion out of the economy and again force up unemployment, which had shown signs of improving.


Senate Republican leader Mitch McConnell talked several times to Vice President Joe Biden by phone in the hope of breaking the standstill. "I'm willing to get this done, but I need a dance partner," McConnell said.


Any agreement needs to be rushed through both chambers of Congress before midnight on Monday. But, even if the two sides reach a deal, procedural barriers in the Senate and the House of Representatives make quick action difficult.


Buoyed by his re-election in November, President Barack Obama has insisted that any deal must include a tax increase on the wealthiest Americans, who have seen their earnings rise steadily over the past decade at a time when income has stalled for the less affluent.


Many conservative Republicans in the House of Representatives oppose a tax hike on anyone, no matter how wealthy.


The two sides were close to agreeing to raise taxes on households earning around $400,000 or $500,000 a year - higher than Obama's preferred threshold of $250,000 - several senators told reporters.


Republicans aim to pair any tax increase with government spending cuts to benefit programs that are projected to grow ever more expensive as the population ages in coming decades.


But their proposal to slow the growth of Social Security benefits by changing the way they are measured against inflation met fierce resistance from Democrats. Obama included the proposal, known as "chained CPI," in an earlier proposal, but many of his fellow Democrats remain opposed.


'POISON PILL'


"We consider it a poison pill - they know we can't accept it. It is a big step back from where we were on Friday," a Senate Democratic aide said.


Several Senate Republicans said they would support taking that idea out of the discussion. "Most of us agree the chained CPI is off the table in these negotiations," Senator John McCain said on Twitter.


In a rare appearance on NBC's "Meet the Press," Obama pressured lawmakers to reach a deal.


"If people start seeing that on January 1st this problem still hasn't been solved... then obviously that's going to have an adverse reaction in the markets," he said, adding that he had offered Republicans significant compromises that had been rejected repeatedly.


Obama said he would try to reverse the tax hikes for most Americans if Congress fails to act.


John Boehner, the House speaker, rejected Obama's accusations that Republicans were not being amenable to compromise.


"The president's comments today are ironic, as a recurring theme of our negotiations was his unwillingness to agree to anything that would require him to stand up to his own party," he said in a statement. (Additional reporting by Tabassum Zakaria, Jeff Mason, David Lawder, Fred Barbash and Richard Cowan. Writing by Andy Sullivan; editing by Alistair Bell and Jackie Frank)



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