Euro gains despite US economic data; yen loses

NEW YORK: The US dollar slipped against the euro Thursday despite encouraging US data on housing and jobs, while the yen slumped to new multi-year lows on speculation of new easing.

The euro benefited from more positive remarks from regional leaders and solid results of a Spanish bond auction, analysts said.

"The Euro rallied to 1.3376 as the European Central Bank and European Union President Herman Van Rompuy stirred hopes of seeing the euro-area return to growth in 2013, but optimism surrounding the single currency may fail to materialize as the debt crisis continues to drag on the real economy," said David Song of DailyFX.

Also helping was strong investor enthusiasm at a US$4.5 billion Spanish bond auction, pushing the troubled government's borrowing costs lower.

At 2200 GMT the euro was at US$1.3375, compared to US$1.3286 late Wednesday.

The US dollar failed to get a boost from a strong fall in weekly jobless claims, a sign of the pace of layoffs, and a rebound in housing starts in December, showing sustained strength in the housing sector.

The yen meanwhile fell to a fresh 30 month low. The dollar topped the 90 yen level briefly before slipping back to 89.86 yen, compared to 88.37 a day earlier.

The euro rose to 120.20 yen, its best level since April 2011, up from 117.42 Wednesday.

David Gilmore of Foreign Exchange Analytics, said speculation was rising that the Bank of Japan could add to stimulus measures in its next policy meeting on January 21-22.

The British pound fell to US$1.5992 from US$1.6006, while the US dollar gained to 0.9322 Swiss francs from 0.9309 francs.

- AFP/jc

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MHA inquiry finds PCR response could have swifter in Nirbhaya case

NEW DELHI: An inquiry by the home ministry into allegations made by Nirbhaya's friend about the "tardy" response of Delhi Police in reaching her to hospital has found that the response time could indeed have been better.

The inquiry report by Veena Kumari Meena, a joint secretary in the home ministry, also said Dinesh Yadav, operator of the bus on which the gang rape took place, had been blatantly flouting norms by plying not only the rogue bus despite repeated challans, but was also running several other buses in his fleet without valid permits.

Sources in the government told TOI that Meena noted that though the PCRs responded to the distress call made on Nirbhaya's behalf within "reasonable" time and, as per PCR logs, left the spot within 15 minutes, this time could have been cut further had the police "reacted better" to the emergency.

Though exact details of the report are still awaited, sources hinted that the inquiry faulted Delhi Police for failing to immediately rush the victims to hospital despite the first PCR having reached the spot at 10.27 pm, by the police's own account. According to the Delhi Police, the control room received a call about the incident at 10.21 pm on December 16. PCR van Z-54 was assigned the call but another PCR, E-74, reached the spot on its own at 10.27 pm. Z-54 was there at 10.29 pm.

Z-54 finally left the spot with Nirbhaya and her friend at 10.39 pm, after arranging bed-sheets from a nearby hotel to cover them.

Nirbhaya's friend had, in an interview to a news channel, alleged that the PCRs which reached the spot wasted crucial time in arguing over jurisdiction and that the police were reluctant to shift an injured Nirbhaya to the PCR.

However, joint commissioner of police Vivek Gogia denied this, saying, "There was no issue over jurisdiction as PCR vans do not operate under police stations."

The inquiry was set up on January 7 to assess the alacrity of Delhi Police as well as the response of Safdarjung Hospital staff to the December 16 rape. Meena was asked to identify lapses and fix responsibility.

The terms of reference also included examining how the rogue bus continued to ply on Delhi roads despite being challaned several times, and to study the responsiveness of Dial 100 helpline.

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Biden Confirms Support for Second Amendment

Jan 17, 2013 6:41pm

Alex Wong/Getty Images

One day after President Obama unveiled the administration’s plan to curb gun violence, Vice President Joe Biden today defended their intentions, answering critics who have spoken out against the plan for potentially infringing on the Second Amendment rights of Americans.

“The president and I support the Second Amendment,”  Biden said definitively.

Biden, who’s led the task force on gun violence since the December shooting at Sandy Hook Elementary School, noted that he owns guns.

“I have two shotguns, a 20-gauge and a 12-gauge shotgun,” he said. Later in the speech he said his son Beau was a better shot than he is but that is because Beau is in the Army.

Biden spoke today before the annual U.S. Conference of Mayors’ meeting in Washington, D.C. Not everyone in the audience, Biden noted today, agrees with recommendations the White House put forward yesterday. But he defended the administration’s move to push this issue, at one point addressing the roomful of mayors as if he were speaking to them individually, saying that “murder rates in both of our towns are …  well beyond … what’s remotely tolerable for a civilized circumstance.”

“We’re going to take this fight to the halls of Congress,” he said. “We’re going to take it beyond that. We’re going to take it to the American people. We’re going to go around the country making our case, and we’re going to let the voices, the voice, of the American people be heard. ”

Biden again noted that there will not be consensus across the nation, given cultural differences among the states. In many states, he added, hunting is  “big deal.”

But, he quipped, addressing the use of high-capacity magazines in hunting, “As one hunter told me, if you got 12 rounds — you got 12 rounds, it means you’ve already missed the deer 11 times. You should pack the sucker in at that point. You don’t deserve to have a gun, period, if you’re that bad.”

High-capacity ammunition magazines “leave victims with no chance,” Biden said.

He summed up saying, “Recognizing those differences doesn’t in any way negate the rational prospect of being able to come up with common-sense approaches how to deal with the myriad of problems that relate to gun ownership.”

Biden said the “time is now” to make these changes and scoffed at some alternative strategies, like the proposal from the NRA for an armed guard to be placed in every school.

“We don’t want rent-a-cops in schools armed,” he said. “We don’t want people in schools who aren’t trained like police officers.”

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Large study confirms flu vaccine safe in pregnancy

NEW YORK (AP) — A large study offers reassuring news for pregnant women: It's safe to get a flu shot.

The research found no evidence that the vaccine increases the risk of losing a fetus, and may prevent some deaths. Getting the flu while pregnant makes fetal death more likely, the Norwegian research showed.

The flu vaccine has long been considered safe for pregnant women and their fetus. U.S. health officials began recommending flu shots for them more than five decades ago, following a higher death rate in pregnant women during a flu pandemic in the late 1950s.

But the study is perhaps the largest look at the safety and value of flu vaccination during pregnancy, experts say.

"This is the kind of information we need to provide our patients when discussing that flu vaccine is important for everyone, particularly for pregnant women," said Dr. Geeta Swamy, a researcher who studies vaccines and pregnant women at Duke University Medical Center.

The study was released by the New England Journal of Medicine on Wednesday as the United States and Europe suffer through an early and intense flu season. A U.S. obstetricians group this week reminded members that it's not too late for their pregnant patients to get vaccinated.

The new study was led by the Norwegian Institute of Public Health. It tracked pregnancies in Norway in 2009 and 2010 during an international epidemic of a new swine flu strain.

Before 2009, pregnant women in Norway were not routinely advised to get flu shots. But during the pandemic, vaccinations against the new strain were recommended for those in their second or third trimester.

The study focused on more than 113,000 pregnancies. Of those, 492 ended in the death of the fetus. The researchers calculated that the risk of fetal death was nearly twice as high for women who weren't vaccinated as it was in vaccinated mothers.

U.S. flu vaccination rates for pregnant women grew in the wake of the 2009 swine flu pandemic, from less than 15 percent to about 50 percent. But health officials say those rates need to be higher to protect newborns as well. Infants can't be vaccinated until 6 months, but studies have shown they pick up some protection if their mothers got the annual shot, experts say.

Because some drugs and vaccines can be harmful to a fetus, there is a long-standing concern about giving any medicine to a pregnant woman, experts acknowledged. But this study should ease any worries about the flu shot, said Dr. Denise Jamieson of the Centers for Disease Control and Prevention.

"The vaccine is safe," she said.

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Online:

Medical journal: http://www.nejm.org

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Sahara Islamists take hostages, spreading Mali war

ALGIERS/BAMAKO (Reuters) - Islamist fighters seized dozens of Western and Algerian hostages in a dawn raid on a natural gas facility deep in the Sahara on Wednesday and demanded France halt a new offensive against rebels in neighboring Mali.

Three people, among them one British and one French, were reported killed, but details were sketchy and numbers of those held at Tigantourine ranged from 41 foreigners - including perhaps seven Americans as well as Japanese and Europeans - to over 100 local staff, held separately and less closely watched.

What is clear is that with a dramatic counterpunch to this week's French build-up in Mali, the region's loosely allied, al Qaeda-inspired radicals have set Paris a daunting dilemma and spread fallout from Mali's hitherto obscure civil war far beyond northwest Africa, challenging Washington as well as Europeans and shutting down a major gas field that pumps energy to Europe.

The attack, which Algeria said was led by a veteran, Afghan-trained holy warrior-cum-smuggler dubbed "The Uncatchable" by French intelligence, came just as French ground troops in Mali launched their first assault after six days of air strikes.

The United States, which like European powers endorsed France's decision to intervene last week against Islamists who have seized vast tracts of northern Mali, confirmed Americans were among the hostages and said it would work to "secure" them.

Western and African governments have been alarmed by a flow of weapons and fighters across the unmarked Sahara borders following the end of Libya's civil war in 2011 and fear that Mali, where Islamists drive the national army from the north nine months ago, could become an Afghan-style al Qaeda haven.

The militants, who said they had dozens of fighters in the gas field, issued no explicit threat but made clear to media in neighboring Mauritania the hostages' lives were at risk.

"We hold the Algerian government and the French government and the countries of the hostages fully responsible if our demands are not met and it is up to them to stop the brutal aggression against our people in Mali," read one statement from the group, which called itself the "Battalion of Blood".

In other comments carried by the Mauritanian news agency ANI, the group said its fighters had rigged explosives around the site and any attempt to free the hostages would lead to a "tragic end". The unusually large numbers of gunmen and hostages involved pose serious problems for any rescue operation.

After dark, ANI quoted a militant source saying fighters had repelled a raid by Algerian troops. He added that the hostage-takers' weaponry included mortars and anti-aircraft missiles.

AMERICANS

The militants said seven Americans were among the 41 foreign hostages - a figure U.S. officials said they could not confirm.

Norwegian energy company Statoil, which operates the gas field in a joint venture with Britain's BP and the Algerian state company Sonatrach, said nine of its Norwegian employees and three of its Algerian staff were being held.

Also reported kidnapped by various sources were five Japanese working for the engineering firm JGC Corp, a French national, an Austrian, an Irishman and a number of Britons.

The Algerian government, which fought a bloody civil war against Islamists in the 1990s, said it would not negotiate.

French media said the militants were also demanding that Algeria release dozens of Islamist prisoners from its jails.

Defense Secretary Leon Panetta said: "I want to assure the American people that the United States will take all necessary and proper steps that are required to deal with this situation."

He said he lacked firm information on whether there were links to the situation in Mali. Analysts pointed to shifting alliances and rivalries among Islamists in the region to suggest the hostage-takers may have a range of motives.

In their own statements, they condemned Algeria's secularist government for "betraying" its predecessors in the bloody anti-colonial war against French rule half a century ago by letting French warplanes fly over its territory to Mali. They also accused Algeria of shutting its border to Malian refugees.

Algerian Interior Minister Daho Ould Kablia told the state news agency APS there were about 20 hostage-takers led by Mokhtar Belmokhtar, an Algerian who fought against Soviet forces in Afghanistan in the 1980s and set up his own group in the Sahara recently after falling out with other al Qaeda leaders.

Some of those held at the facility, near the small town of In Amenas, close to the Libyan border and about 1,300 km (800 miles) inland, had sporadic contact with the outside world.

The head of a French catering company said he had information from a manager who supervised some 150 Algerian employees at the site. Regis Arnoux of CIS Catering told France's BFM television the local staff were being prevented from leaving but were otherwise free to move around inside and keep on working.

"The Westerners are kept in a separate wing of the base," Arnoux said. "They are tied up and are being filmed. Electricity is cut off, and mobile phones have no charge.

"Direct action seems very difficult ... Algerian officials have told the French authorities as well as BP that they have the situation under control and do not need their assistance."

MALI OFFENSIVE

Just days after a bold deployment of French troops to Mali, another former colony, that had largely silenced critics questioning his leadership after eight months in office, French President Francois Hollande faced a possible further escalation of the conflict, with Western targets at risk across Africa.

He has called for international support against insurgents who France says pose a threat to Africa and the West, and admits it faces a long struggle against well-equipped fighters who seized Timbuktu and other oasis towns in northern Mali and have imposed Islamic law, including public amputation and beheading.

Islamists have warned Hollande that he has "opened the gates of hell" for all French citizens.

French army chief Edouard Guillaud said ground forces were stepping up their operation to engage directly "within hours" the alliance of Islamist fighters, grouping al Qaeda's North African wing AQIM and Mali's home grown Ansar Dine and MUJWA.

Residents said a column of some 30 French Sagaie armored vehicles has set off toward rebel positions from the town of Niono, 300 km (190 miles) from the capital Bamako.

A Malian military source said French special forces units were taking part in the operation. Guillaud said France's strikes, involving Rafale and Mirage jet fighters, were being hampered because militants were sheltering among civilians.

Many inhabitants of northern Mali have welcomed the French attacks though some also fear being caught in the cross-fire.

Defense Minister Jean-Yves Le Drian acknowledged that France faced a hard slog, particularly in western Mali where AQIM's mostly foreign fighters have camps: "It's tough. We were aware from the beginning it would be a very difficult operation."

Hollande said on Tuesday that French forces would remain in Mali until stability returned to the West African nation. Hollande said France hoped, however, to hand over to African forces in its former colony, "in the coming days or weeks".

West African military chiefs met for a second day in Bamako to hammer out details of a U.N.-mandated deployment that had been expected to start only in September but was suddenly kick-started by French intervention. They said their aim was to send in the first units of a 2,000-man emergency force on Thursday.

Hollande's intervention in Mali brings risks for eight French hostages held by AQIM in the Sahara as well as the 30,000 French citizens living across West Africa. A French helicopter pilot was killed on Friday, France's only combat death so far.

The conflict in Mali, a landlocked state of 15 million twice the size of France, has displaced an estimated 30,000 people and raised concerns across mostly Muslim West Africa of a radicalization of Islam in the region.

"There is a great hope," one man said from Timbuktu, where he said Islamist fighters were trying to blend into civilian neighborhoods. "We hope that the city will be freed soon."

(Additional reporting by Pascal Fletcher and Andrew Callus in London, Balazs Koranyi in Oslo, Laurent Prieur in Nouakchott, Daniel Flynn in Dakar, John Irish, Catherine Bremer and Nick Vinocur in Paris, David Alexander in Rome and Andrew Quinn in Washington; Writing by Alastair Macdonald; Editing by Kevin Liffey)

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Cricket: Warne faces new ban

SYDNEY: Australian veteran Shane Warne is facing a new ban for an alleged breach of the spirit of the game in a domestic Twenty20 match, Cricket Australia said Thursday.

The bowling great apologised last week after a foul-mouthed rant against West Indian all-rounder Marlon Samuels that earned him a ban and a fine in Australia's Big Bash League.

But in Wednesday night's semi-final Warne, the official Melbourne Stars skipper, was not listed as captain for the match they lost against Perth Scorchers.

Cricket Australia said they had recently sent a memo to BBL teams about the captaincy role.

"If a team's official captain is selected but not named as captain, this will be considered against the spirit of cricket and may attract a code of behaviour charge," CA said.

"Warne has been reported for breaching CA's code of behaviour," it said.

The time and date of Warne's hearing was yet to be fixed.

The 43-year-old spinner, who was banned for one match and fined A$4,500 over the Samuels row, claimed 708 Test wickets in a celebrated career.

But he has also courted controversy, notably when he was fined for accepting money from a bookmaker and sent home from the 2003 World Cup for taking a banned diuretic.

- AFP/jc

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Pak commerce minister’s India visit under cloud

NEW DELHI: Economic engagement can be carried forward in an environment of peace and stability and it is for Pakistan to realize where the well-being of its economy lies, commerce minister Anand Sharma said on Wednesday.

Sharma said the incident along the Line of Control was "horrific, unacceptable and highly provocative", but he did not announce any scrapping of trade ties or a pause in the trade dialogue.

India and Pakistan have made considerable progress in normalizing trade and economic relations. The two countries have held several rounds of discussions while Sharma has led a high profile business delegation to Pakistan. The two sides have also vowed to boost economic ties and Islamabad had promised to accord Most Favoured Nation status to India. Although it has missed the December deadline, expectations are that Pakistan will fulfil its promise shortly.

Pakistani trade minister Makhdoom Amin Fahim is expected to take part in a conference in Agra later this month. Officials say Pakistan is expected to announce full MFN status to India during his visit but the heightened tension between the two nuclear-armed neighbours has cast doubts on the trip.

"As of now, we have not given any consideration to this matter in a negative sense, because, yes what has happened is horrific, it is unacceptable, highly provocative," Sharma said. He added, "And this is for Pakistan to realize that where the well-being of the economies of the countries lies. Economic engagement can be enhanced in an environment of peace and stability and anything which undermines that environment is not conducive."

Sharma said economic engagement was the only way forward to peace and stability. "And there is no other way forward for this region. So it is for Pakistan to take action and hold those who are responsible for this horrific act not only accountable but to punish them. That would be in Pakistan's own interest, not only for bilateral relations but its global image as a responsible nation state," he added.

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NRA President Defends Ad Attacking Obama

Jan 16, 2013 6:40pm

Christian Gooden/St. Louis Post-Dispatch/AP Photo

In an interview with ABC News this evening, NRA President David Keene said the gun-rights lobby is aggressively preparing for “battle” with the White House and Congress over President Obama’s sweeping new proposals to curb gun violence.

Keene criticized Obama’s announcement today, surrounded by four children from around the country, for “using kids to advance an ideological agenda.” And he expressed cautious confidence that few of the legislative measures would ultimately pass.

“It’s going to be very tough for the president to accomplish some of these things, but that doesn’t mean he can’t do it if he really turns it on,” Keene told ABC.

“All bets are off when a president really wants to go to war with you,” he said. “We’re gonna be there and we’re gonna fight it.”

INFOGRAPHIC: Guns in America: By The Numbers

Keene said passage of the 1994 assault weapons ban remains fresh in the minds of NRA leaders, noting that initial widespread congressional opposition gradually gave way to a narrow margin in favor, thanks in part to pressure from then-President Bill Clinton.

NRA members would hold accountable any politicians who “sell them out to some pie-in-the-sky scheme such as the president is proposing,” he said.

The group launched a new “Stand and Fight” advocacy campaign Tuesday night, opposing Obama’s gun control measures, anchored by a controversial new TV ad that began airing online and on the Sportsman Channel.

The ad calls President Obama an “elitist hypocrite” for sending his daughters to a private school with armed guards while questioning whether all other U.S. schools should have the same security measures. The White House blasted the ad as “repugnant and cowardly.”

“When the question is the protection of children, which is what this is all about… it’s perfectly legitimate to ask why some children should be protected and other children should not be protected,” Keene said, defending the ad.

“We were not talking about the president’s kids. We were talking about an elite class who criticizes others in their desire to be safe while making sure that they and their families and their children are always protected.

“We’re not talking about the Secret Service protection the president’s children enjoy — they ought to have that wherever they go,” he added.

PHOTOS: Sandy Hook Elementary School Shooting

Keene also ribbed Obama for using children as “props” for his announcement:  “We didn’t line them up on a stage and pat them on the shoulder while we were urging somebody to take our position,” he said.

The NRA has acknowledged some areas of common ground for curbing gun violence included the Obama proposal — namely beefed up resources for mental health care, better background check data and increased presence of school resource officers (police) at public schools.

But Keene said many of those steps were just “fig leaves.”

“What the president did is say … ‘I care about armed security.’ He can check off that box on the Gallup polls. He can say to the people concerned about it, ‘It’s part of my package.’ … He said the problem of severely, mentally ill — we’re going to study it.”

Obama called for federal aid to states for the hiring of up to 1,000 new resource officers and school counselors.  Currently, there are armed resource officers at 28,000 U.S. schools.

“That’s a drop in the ocean in terms of the problem,” Keene said. “It’s simply a fig leaf so he can pursue an anti-gun agenda. It has less to do with security and more to do with gun.”

SHOWS: Good Morning America World News

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ER visits tied to energy drinks double since 2007

SAN FRANCISCO (AP) — A new government survey suggests the number of people seeking emergency treatment after consuming energy drinks has doubled nationwide during the past four years, the same period in which the supercharged drink industry has surged in popularity in convenience stores, bars and on college campuses.

From 2007 to 2011, the government estimates the number of emergency room visits involving the neon-labeled beverages shot up from about 10,000 to more than 20,000. Most of those cases involved teens or young adults, according to a survey of the nation's hospitals released late last week by the Substance Abuse and Mental Health Services Administration.

The report doesn't specify which symptoms brought people to the emergency room but calls energy drink consumption a "rising public health problem" that can cause insomnia, nervousness, headache, fast heartbeat and seizures that are severe enough to require emergency care.

Several emergency physicians said they had seen a clear uptick in the number of patients suffering from irregular heartbeats, anxiety and heart attacks who said they had recently downed an energy drink.

More than half of the patients considered in the survey who wound up in the emergency room told doctors they had downed only energy drinks. In 2011, about 42 percent of the cases involved energy drinks in combination with alcohol or drugs, such as the stimulants Adderall or Ritalin.

"A lot of people don't realize the strength of these things. I had someone come in recently who had drunk three energy drinks in an hour, which is the equivalent of 15 cups of coffee," said Howard Mell, an emergency physician in the suburbs of Cleveland, who serves as a spokesman for the American College of Emergency Physicians. "Essentially he gave himself a stress test and thankfully he passed. But if he had a weak heart or suffered from coronary disease and didn't know it, this could have precipitated very bad things."

The findings came as concerns over energy drinks have intensified following reports last fall of 18 deaths possibly tied to the drinks — including a 14-year-old Maryland girl who died after drinking two large cans of Monster Energy drinks. Monster does not believe its products were responsible for the death.

Two senators are calling for the Food and Drug Administration to investigate safety concerns about energy drinks and their ingredients.

The energy drink industry says its drinks are safe and there is no proof linking its products to the adverse reactions.

Late last year, the FDA asked the U.S. Health and Human Services to update the figures its substance abuse research arm compiles about emergency room visits tied to energy drinks.

The Substance Abuse and Mental Health Services Administration's survey was based on responses it receives from about 230 hospitals each year, a representative sample of about 5 percent of emergency departments nationwide. The agency then uses those responses to estimate the number of energy drink-related emergency department visits nationwide.

The more than 20,000 cases estimated for 2011 represent a small portion of the annual 136 million emergency room visits tracked by Centers for Disease Control and Prevention.

The FDA said it was considering the findings and pressing for more details as it undertakes a broad review of the safety of energy drinks and related ingredients this spring.

"We will examine this additional information ... as a part of our ongoing investigation into potential safety issues surrounding the use of energy-drink products," FDA spokeswoman Shelly Burgess said in a statement.

Beverage manufacturers fired back at the survey, saying the statistics were misleading and taken out of context.

"This report does not share information about the overall health of those who may have consumed energy drinks, or what symptoms brought them to the ER in the first place," the American Beverage Association said in a statement. "There is no basis by which to understand the overall caffeine intake of any of these individuals — from all sources."

Energy drinks remain a small part of the carbonated soft drinks market, representing only 3.3 percent of sales volume, according to the industry tracker Beverage Digest. Even as soda consumption has flagged in recent years, energy drinks sales are growing rapidly.

In 2011, sales volume for energy drinks rose by almost 17 percent, with the top three companies — Monster, Red Bull and Rockstar — each logging double-digit gains, Beverage Digest found. The drinks are often marketed at sporting events that are popular among younger people such as surfing and skateboarding.

From 2007 to 2011, the most recent year for which data was available, people from 18 to 25 were the most common age group seeking emergency treatment for energy drink-related reactions, the report found.

"We were really concerned to find that in four years the number of emergency department visits almost doubled, and these drinks are largely marketed to younger people," said Al Woodward, a senior statistical analyst with the Substance Abuse and Mental Health Services Administration who worked on the report.

Emergency physician Steve Sun said he had seen an increase in such cases at the Catholic hospital where he works on the edge of San Francisco's Golden Gate Park.

"I saw one young man who had mixed energy drinks with alcohol and we had to admit him to the hospital because he was so dehydrated he had renal failure," Sun said. "Because he was young he did well in the hospital, but if another patient had had underlying coronary artery disease, it could have led to a heart attack."

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Follow Garance Burke on Twitter at http://twitter.com/garanceburke

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France to stay in Mali until stability restored

BAMAKO/DUBAI (Reuters) - France pledged on Tuesday to keep troops in Mali until stability returned to the West African country, raising the specter of a long campaign against al Qaeda-linked rebels who held their ground despite a fifth day of air strikes.

Paris has poured hundreds of soldiers into Mali and carried out 50 bombing raids since Friday in the Islamist-controlled northern half of the country, which Western and regional states fear could become a base for terrorist attacks in Africa and Europe.

Defense Minister Jean-Yves Le Drian said that, despite French air support, Malian forces had not been able to dislodge Islamist fighters from the central Malian towns of Konna or Diabaly, just 350 km (220 miles) northeast of Bamako.

A column of French armored vehicles rolled northward from the dusty riverside capital of Bamako towards rebel lines on Tuesday, the first major northward deployment of ground troops. A military official declined to comment on their objective.

Thousands of African soldiers are due to take over the offensive. Regional armies are scrambling to accelerate an operation which was initially not expected until September and has been brought forward by France's surprise bombing campaign aimed at stopping a rebel advance on a strategic town last week.

President Francois Hollande, on a visit to the United Arab Emirates during which he sought Gulf states' financial backing for the African-led mission, suggested France would retain a major role in its former colony for months to come.

"We have one goal. To ensure that when we leave, when we end our intervention, Mali is safe, has legitimate authorities, an electoral process and there are no more terrorists threatening its territory," Hollande told a news conference.

Paris has said it plans to deploy 2,500 soldiers to bolster the Malian army and work with the intervention force provided by West African states.

AFRICAN TROOPS

West African Defense chiefs met in Bamako on Tuesday to approve plans for the swift deployment of 3,300 regional troops, foreseen in a United Nations-backed intervention plan. After failing to reach a final agreement, they adjourned their talks until Wednesday.

Nigeria pledged to deploy soldiers within 24 hours, and Belgium said it was sending transport planes and helicopters to help, but West Africa's armies need time to become operational.

Mali's north, a vast and inhospitable area of desert and rugged mountains the size of Texas, was seized last year by an Islamist alliance combining al Qaeda's north African wing AQIM with splinter group MUJWA and the home-grown Ansar Dine rebels.

Any delay in following up on the French air bombardments of Islamist bases and fuel depots with a ground offensive could allow the insurgents to slip away into the desert and mountains, regroup and counter-attack.

The rebels, who French officials say are mobile and well armed, have shown they can hit back, dislodging government forces from Diabaly on Monday.

Residents said the town was still under Islamist control on Tuesday despite a number of air strikes that shook houses.

An eye witness near Segou, to the south, told Reuters he had seen 20 French Special Forces soldiers driving toward Diabaly.

In Konna, whose seizure on Thursday sparked French involvement, residents said Islamist fighters were camped just outside town. Army troops had also withdrawn after entering the town on Saturday.

Malians have largely welcomed the French intervention, having seen their army suffer a series of defeats by the rebels.

"With the arrival of the French, we have started to see the situation on the front evolve in our favor," said Aba Sanare, a resident of Bamako.

QUESTIONS OVER READINESS

Aboudou Toure Cheaka, a senior regional official in Bamako, said the West African troops would be on the ground in a week.

The original timetable for the 3,300-strong U.N.-sanctioned African force - to be backed by western logistics, money and intelligence services - did not initially foresee full deployment before September due to logistical constraints.

Senegal, Burkina Faso, Niger, Nigeria and Guinea have all offered troops. Col. Mohammed Yerima, spokesman for Nigeria's Defense ministry, said the first 190 soldiers would be dispatched within 24 hours.

But Nigeria, which is due to lead the mission, has already cautioned that even if some troops arrive in Mali soon, their training and equipping will take more time.

Sub-Saharan Africa's top oil producer, which already has peacekeepers in Sudan's Darfur and is fighting a bloody and difficult insurgency at home against Islamist sect Boko Haram, could struggle to deliver on its troop commitment of 900 men.

One senior government adviser in Nigeria said the Mali deployment was stretching the country's military.

"The whole thing's a mess. We don't have any troops with experience of those extreme conditions, even of how to keep all that sand from ruining your equipment. And we're facing battle-hardened guys who live in those dunes," said the adviser, who asked not to be named.

FRENCH LINING UP SUPPORT

France, which has repeatedly said it has abandoned its role as policeman of its former African colonies, said on Monday that the U.S., Canada, Denmark and Germany had also offered logistical support.

Fabius has said Gulf Arab states would help the Mali campaign, while Belgium said on Tuesday it would send two C130 transport planes and two medical helicopters following a request from Paris.

A meeting of donors for the operation was expected to be held in Addis Ababa at the end of January.

Security experts have warned that the multinational intervention in Mali, couched in terms of a campaign by governments against "terrorism", could provoke a jihadist backlash against France and the West, and African allies.

U.S. officials have warned of links between AQIM, Boko Haram in Nigeria and al Shabaab Islamic militants fighting in Somalia.

Al Shabaab, which foiled a French effort at the weekend to rescue a French secret agent it was holding hostage, urged Muslims around the world to rise up against what it called "Christian" attacks against Islam.

"Our brothers in Mali, show patience and tolerance and you will win. War planes never liberate a land," Sheikh Ali Mohamud Rage, al Shabaab's spokesman, said on a rebel-run website.

U.S. officials said Washington was sharing information with French forces in Mali and considering providing logistics, surveillance and airlift capability.

"We have made a commitment that al Qaeda is not going to find any place to hide," U.S. Defense Secretary Leon Panetta told reporters as he began a visit to Europe. Panetta later said the U.S. had no plans to send troops to Mali.

One U.S. military source said the haphazard nature of French involvement reminded him of the U.S. entry into Afghanistan.

"I don't know what the French endgame is for this," the source said. "Air strikes are fine, but pretty soon you run out of easy targets. Then what do you do? What do you do when they head up into the mountains?"

(Additional reporting by Elizabeth Pineau and Raissa Kasolowsky in Abu Dhabi, Felix Onuah in Abuja and Tim Cocks in Lagos, Abdi Sheikh in Mogadishu, Michelle Nichols and Louis Charbonneau at the United Nations,; Richard Valdmanis in Dakar, Joe Bavier in Abidjan, Jan Vermeylen in Brussels; Writing by Pascal Fletcher, Daniel Flynn and David Lewis; editing by Richard Valdmanis, Giles Elgood and Will Waterman)

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