Obama to Congress: 'We Are Not a Deadbeat Nation'

President Obama says the U.S. economy is "poised for a good year" but that progress could be threatened by political brinksmanship on the nation's debt limit.

"While I'm willing to compromise and find common ground over how to reduce our deficits, America cannot afford another debate with this Congress about whether or not they should pay the bills they've already racked up," Obama said at a White House news conference.

"We are not a deadbeat nation," he said. "The consequences of us not paying our bills would be disastrous."

Lawmakers have until the end of February to raise the nation's debt limit and address the delayed $1.2 trillion in automatic cuts to defense and domestic spending.

Failure to raise the debt limit would set the stage for a U.S. default on its loan obligations or force immediate cuts to government spending that could threaten hundreds of thousands of federal employees and beneficiaries of government aid, including Social Security recipients and active-duty military personnel.

Republicans have said they plan to use the debate on a debt-limit increase to extract spending cuts from the Obama administration. They note a legislative precedent, including most recently in 2011, of coupling the debt ceiling with deficit-reduction legislation.

Chip Somodevilla/Getty Images

"The president and his allies need to get serious about spending, and the debt-limit debate is the perfect time for it," Senate Minority Leader Mitch McConnell said in response to Obama's remarks.

"We are hoping for a new seriousness on the part of the president with regard to the single biggest issue confronting the country," he said. "And we look forward to working with him to do something about this huge, huge problem."

Obama says he will "not negotiate" on an increase to the debt limit, which covers spending obligations that have already been passed into law, insisting that the issue should be independent of a debate on new limits on future spending.

"The financial well being of the American people is not leverage to use," Obama said. "The full faith and credit of the U.S.A. is not a bargaining chip to use."

The White House said the news conference would be Obama's last of his first term, coming six days before the inauguration and at a critical juncture in an ongoing fight with Congress on federal deficits and debt.

It also comes one day before Vice President Joe Biden will present to Obama his task force's recommendations for curbing gun violence in the wake of the deadly Newtown, Conn., shooting.

"They've presented me now with a list of sensible, common-sense steps that can be taken to make sure that the kinds of violence we saw at Newtown doesn't happen again," Obama said.

"I expect to have a fuller presentation later in the week to give people some specifics about what I think we need to do. My starting point is not to worry about the politics," he said. "My starting point is to focus on what makes sense, what works."

ABC News' Mary Bruce contributed to this report.

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France bombs Islamist stronghold in north Mali

BAMAKO/PARIS (Reuters) - French fighter jets pounded an Islamist rebel stronghold in northern Mali on Sunday as Paris poured more troops into the capital Bamako, awaiting a West African force to dislodge al Qaeda-linked insurgents from the country's north.

The attack on Gao, the largest city in the desert region controlled by the Islamist alliance, marked a decisive drive northwards on the third day of French air strikes, moving deep into the vast territory seized by rebels in April.

France is determined to end Islamist domination of north Mali, which many fear could act as a base for attacks on the West and for links with al Qaeda in Yemen, Somalia and North Africa.

France's Defence Minister Jean-Yves Le Drian said French intervention on Friday had prevented rebels driving southward to seize Bamako itself. He said air raids would continue in the coming days.

"The president is totally determined that we must eradicate these terrorists who threaten the security of Mali, our own country and Europe," he told French television.

In Gao, a dusty town on the banks of the Niger river where Islamists have imposed an extreme form of Sharia law, residents said French fighters and attack helicopters pounded the airport and rebel positions. A huge cloud of black smoke rose from the militants' camp in the north of the city.

"The planes are so fast you can only hear their sound in the sky," resident Soumaila Maiga said by telephone. "We are happy, even though it is frightening. Soon we will be delivered."

A Malian rebel spokesman said the French had also bombed targets in the towns of Lere and Douentza.

France has deployed about 550 soldiers to Mali, split between Bamako and the town of Mopti, 500 km (300 miles) north, Le Drian said. State-of-the-art Rafale fighter jets were also dispatched to reinforce "Operation Serval" - named after an African wildcat.

In Bamako, a Reuters cameraman saw more than 100 French troops disembark on Sunday from a military cargo plane at the international airport, on the outskirts of the capital.

The city itself was calm, with the sun streaking through the dust enveloping the city as the seasonal Harmattan wind blew from the Sahara. Some cars drove around with French flags draped from the windows to celebrate Paris's intervention.

AFRICAN TROOPS EXPECTED

More than two decades of peaceful elections had earned Mali a reputation as a bulwark of democracy, but that image unraveled in a matter of weeks after a military coup last March that left a power vacuum for the Islamist rebellion.

French President Francois Hollande's intervention in Mali has won plaudits from leaders in Europe, Africa and the United States, but it is not without risks.

It raised the risk level for eight French hostages held by al Qaeda allies in the Sahara and for the 30,000 French expatriates living in neighboring, mostly Muslim states.

Concerned about reprisals, France has tightened security at public buildings and on public transport. It advised its 6,000 citizens in Mali to leave as spokesmen for the Islamist groups have promised to exact revenge.

In its first casualty of the campaign, Paris said a French pilot was killed on Friday when rebels shot down his helicopter.

Hours earlier, a French intelligence officer held hostage in Somalia by al Shabaab extremists linked to al Qaeda was killed in a botched commando raid to free him.

President Hollande says France's aim is simply to support a mission by West African bloc ECOWAS to retake the north, as mandated by a U.N. Security Council resolution in December.

With Paris pressing West African nations to send their troops quickly, Ivory Coast President Alassane Ouattara, who holds the rotating ECOWAS chairmanship, kick-started the operation to deploy 3,300 African soldiers.

Ouattara, installed in power with French military backing in 2011, convened a summit of the 15-nation bloc for Saturday in Ivory Coast to discuss the mission.

"The troops will start arriving in Bamako today and tomorrow," said Ali Coulibaly, Ivory Coast's African Integration Minister. "They will be convoyed to the front."

Military analysts expressed doubt, however, that African nations would be able to mount a swift operation to retake north Mali - a harsh, sparsely populated terrain the size of France - as neither the equipment nor ground troops were prepared.

The United States is considering sending a small number of unarmed surveillance drones to Mali as well as providing logistics support, a U.S. official told Reuters. Britain and Canada have also promised logistical support.

Former French colonies Senegal, Niger and Burkina Faso have all pledged to deploy 500 troops within days. In contrast, regional powerhouse Nigeria, due to lead the ECOWAS force, has suggested it would take time to train and equip the troops.

HOUSE-TO-HOUSE SEARCHES

France, however, appeared to have assumed control of the operation on the ground. Its airstrikes allowed Malian troops to drive the Islamists out of the town of Konna, which they had briefly seized this week in their southward advance.

Calm returned to the town on Sunday after three nights of combat as the Malian army mopped up any rebel fighters. A senior Malian army official said more than 100 rebels had been killed.

"Soldiers are patrolling the streets and have encircled the town," one resident, Madame Coulibaly, told Reuters by phone. "They are searching houses for arms or hidden Islamists."

Human Rights Watch said at least 11 civilians, including three children, had been killed in the fighting.

A spokesman for Doctors Without Borders in neighboring Mauritania said about 200 Malian refugees had already fled across the border to a camp at Fassala and more were on their way.

In Bamako, civilians tried to contribute to the war effort.

"We are very proud and relieved that the army was able to drive the jihadists out of Konna. We hope it will not end there, that is why I'm helping in my own way," said civil servant Ibrahima Kalossi, 32, one of over 40 people who queued to donate blood for wounded soldiers.

(Additional reporting by Adama Diarra, Tiemoko Diallo and Rainer Schwenzfeier in Bamako, Joe Bavier in Abidjan, Leila Aboud in Paris and Phil Stewart in Washington; Writing by Daniel Flynn; Editing by Alison Williams and Will Waterman)

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Grieving relatives mark Italy shipwreck anniversary

GIGLIO ISLAND: Grieving relatives of the 32 victims of the Costa Concordia cruise ship disaster laid flowers by the giant wreck on Sunday in an emotional one-year anniversary commemoration on the Italian island of Giglio to try and heal the wounds of the tragedy.

Salvage workers on a tugboat also used a crane to lower into the sea a piece of the enormous rock that the Costa Concordia crashed into and then tore from its base before veering sharply and keeling over with 4,229 people from 70 countries on board.

A ship's horn sounded out 32 times under a leaden sky in memory of those who died, echoing across the water as the rock slowly descended into the sea and tearful families looked on from another ship.

"I want justice for my family and for all the victims," said Susy Albertini, mother of a five-year-old girl who perished with her father.

Twelve of the victims on the luxury liner were from Germany, seven from Italy, six from France, two from Peru, two from the United States, one from Hungary, one from India and one from Spain.

Survivors of the disaster who came for the ceremony re-lived the panic of that night, when hundreds had to jump into the freezing waters, clamber down a rope ladder in the dark or be evacuated by helicopter after several lifeboats failed to deploy.

"We came because we wanted to express our gratitude. We survived," said Ronald Dots, who was with his wife and son when tragedy struck.

"It was a painful night and at first we cried a lot. Even now, when I see the sea I shake," he said.

French passenger Daniele Dubuc broke down in tears upon stepping off a ferry -- the first time she had been back on a ship since that night.

Dubuc said she and her husband loved ballroom dancing and had enjoyed dances on the cruise, but "the tragedy has made us lose the will to dance."

Many said they also came to thank local residents who rushed to pluck shivering survivors from the water and bring them food and blankets.

Ten people are being investigated including the ship's infamous captain Francesco Schettino -- who is accused of reckless seamanship and abandoning the ship early -- and three executives from owner Costa Crociere, but a trial is still months away.

"From last January 13 and for the rest of my life I will always have something in my heart that will tie me to that event and to the families of the victims," Schettino said in a television interview from his home in southern Italy where he has been confined pending the investigation.

Costa Crociere, Europe's biggest cruise operator, had asked passengers in a letter to stay away from the ceremony on the island because of a lack of space, infuriating many survivors.

Costa Crociere said it would mark the day by holding masses in the chapels of all its vessels around the world and flying their flags at half-mast.

Among those attending the ceremony on Giglio was coast guard official Gregorio De Falco, who upbraided Schettino with an expletive in a phone call when the man dubbed "Captain Coward" refused to get back on the ship to aid the evacuation.

At a mass in the same church that served as a temporary refuge for many survivors, objects from the ship were put on display -- a life jacket, a rope, some bread and a statue of the Virgin Mary.

Of the 32 people who died that night, two -- an Indian waiter and an Italian passenger -- are still officially missing.

Elio Vincenzi, whose wife's body has never been found, could hardly speak for tears as he presented the island with a statue of the Virgin Mary.

Kevin Rebello, who is still searching for his brother's body, gave the island a plaque with four lions on it, the emblem of India -- which he said stood for power, courage, pride and confidence, characteristics "also shared by Giglio."

The 290-metre liner crashed into a group of rocks just off Giglio, veered sharply and keeled over just as many passengers were sitting down for supper on the first night of a Mediterranean cruise.

Salvage workers on Saturday said an unprecedented US$400 million operation to refloat and remove the ship for scrapping will be completed by September.

- AFP/jc

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RSS will support strong laws against rape: Bhagwat

GOYESHPUR (WB): Expressing displeasure over the incidents of rape and harassment of women in the country, RSS chief MohanBhagwat today said the organization will support strong laws and steps needed to stop such incidents.

"There is need for strong laws and steps to deal with the incidents and the perpetrators of rape," Bhagwat, whose comment that rapes took place in "India" but not in "Bharat" had created a controversy, told a function here in Nadia district in connection with the sesquicentennial of Swami Vivekananda.

But there is also a need to change the mindset of the society because the people who will make the laws (against rape) are also from the same society. "If there is no change in the mindset of the society then nothing will change," he said.

"In a country like India where women were worshipped as 'Jagat Janani' are now being harassed and raped. It is the same country where a war was fought because a woman was harassed (Mahabharata).

"We have forgotten our values and principles. It is a country where woman used to idolise Sita, Savitri and Damayanti," Bhagwat said

Referring to the country's development, he said it should become a superpower to serve the poor and the underprivileged.

"We don't want to become a superpower like China or the USA ... But we have to be fearless," he added.

Former ISRO chairman G Madhavan Nair, who was also present on the occasion, spoke on the contribution of Swami Vivekananda.

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Flu more widespread in US; eases off in some areas

NEW YORK (AP) — Flu is now widespread in all but three states as the nation grapples with an earlier-than-normal season. But there was one bit of good news Friday: The number of hard-hit areas declined.

The flu season in the U.S. got under way a month early, in December, driven by a strain that tends to make people sicker. That led to worries that it might be a bad season, following one of the mildest flu seasons in recent memory.

The latest numbers do show that the flu surpassed an "epidemic" threshold last week. That is based on deaths from pneumonia and influenza in 122 U.S. cities. However, it's not unusual — the epidemic level varies at different times of the year, and it was breached earlier this flu season, in October and November.

And there's a hint that the flu season may already have peaked in some spots, like in the South. Still, officials there and elsewhere are bracing for more sickness

In Ohio, administrators at Miami University are anxious that a bug that hit employees will spread to students when they return to the Oxford campus next week.

"Everybody's been sick. It's miserable," said Ritter Hoy, a spokeswoman for the 17,000-student school.

Despite the early start, health officials say it's not too late to get a flu shot. The vaccine is considered a good — though not perfect — protection against getting really sick from the flu.

Flu was widespread in 47 states last week, up from 41 the week before, the Centers for Disease Control and Prevention said on Friday. The only states without widespread flu were California, Mississippi and Hawaii.

The number of hard-hit states fell to 24 from 29, where larger numbers of people were treated for flu-like illness. Now off that list: Florida, Arkansas and South Carolina in the South, the first region hit this flu season.

Recent flu reports included holiday weeks when some doctor's offices were closed, so it will probably take a couple more weeks to get a better picture, CDC officials said Friday. Experts say so far say the season looks moderate.

"Only time will tell how moderate or severe this flu season will be," CDC Director Dr. Thomas Frieden said Friday in a teleconference with reporters.

The government doesn't keep a running tally of adult deaths from the flu, but estimates that it kills about 24,000 people in an average year. Nationally, 20 children have died from the flu this season.

Flu vaccinations are recommended for everyone 6 months or older. Since the swine flu epidemic in 2009, vaccination rates have increased in the U.S., but more than half of Americans haven't gotten this year's vaccine.

Nearly 130 million doses of flu vaccine were distributed this year, and at least 112 million have been used. Vaccine is still available, but supplies may have run low in some locations, officials said.

To find a shot, "you may have to call a couple places," said Dr. Patricia Quinlisk, who tracks the flu in Iowa.

In midtown Manhattan, Hyrmete Sciuto got a flu shot Friday at a drugstore. She skipped it in recent years, but news reports about the flu this week worried her.

During her commute from Edgewater, N.J., by ferry and bus, "I have people coughing in my face," she said. "I didn't want to risk it this year."

The vaccine is no guarantee, though, that you won't get sick. On Friday, CDC officials said a recent study of more than 1,100 people has concluded the current flu vaccine is 62 percent effective. That means the average vaccinated person is 62 percent less likely to get a case of flu that sends them to the doctor, compared to people who don't get the vaccine. That's in line with other years.

The vaccine is reformulated annually, and this year's is a good match to the viruses going around.

The flu's early arrival coincided with spikes in flu-like illnesses caused by other bugs, including a new norovirus that causes vomiting and diarrhea, or what is commonly known as "stomach flu." Those illnesses likely are part of the heavy traffic in hospital and clinic waiting rooms, CDC officials said.

Europeans also are suffering an early flu season, though a milder strain predominates there. China, Japan, the West Bank, the Gaza Strip, Algeria and the Republic of Congo have also reported increasing flu.

Flu usually peaks in midwinter. Symptoms can include fever, cough, runny nose, head and body aches and fatigue. Some people also suffer vomiting and diarrhea, and some develop pneumonia or other severe complications.

Most people with flu have a mild illness. But people with severe symptoms should see a doctor. They may be given antiviral drugs or other medications to ease symptoms.

Some shortages have been reported for children's liquid Tamiflu, a prescription medicine used to treat flu. But health officials say adult Tamiflu pills are available, and pharmacists can convert those to doses for children.

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Associated Press writers Dan Sewell in Cincinnati, Catherine Lucey in Des Moines, and Malcolm Ritter in New York contributed to this report.

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Online:

CDC flu: http://www.cdc.gov/flu/index.htm

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Poisoned Lottery Winner's Kin Were Suspicious

Urooj Khan had just brought home his $425,000 lottery check when he unexpectedly died the following day. Now, certain members of Khan's family are speaking publicly about the mystery -- and his nephew told ABC News they knew something was not right.

"He was a healthy guy, you know?" said the nephew, Minhaj Khan. "He worked so hard. He was always going about his business and, the thing is: After he won the lottery and the next day later he passes away -- it's awkward. It raises some eyebrows."

The medical examiner initially ruled Urooj Khan, 46, an immigrant from India who owned dry-cleaning businesses in Chicago, died July 20, 2012, of natural causes. But after a family member demanded more tests, authorities in November found a lethal amount of cyanide in his blood, turning the case into a homicide investigation.

"When we found out there was cyanide in his blood after the extensive toxicology reports, we had to believe that ... somebody had to kill him," Minhaj Khan said. "It had to happen, because where can you get cyanide?"

In Photos: Biggest Lotto Jackpot Winners

Authorities could be one step closer to learning what happened to Urooj Khan. A judge Friday approved an order to exhume his body at Rosehill Cemetery in Chicago as early as Thursday to perform further tests.

Lottery Winner Murdered: Widow Questioned By Police Watch Video

Moments after the court hearing, Urooj Khan's sister, Meraj Khan, remembered her brother as the kind of person who would've shared his jackpot with anyone. Speaking at the Cook County Courthouse, she hoped the exhumation would help the investigation.

"It's very hard because I wanted my brother to rest in peace, but then we have to have justice served," she said, according to ABC News station WLS in Chicago. "So if that's what it takes for him to bring justice and peace, then that's what needs to be done."

Khan reportedly did not have a will. With the investigation moving forward, his family is waging a legal fight against his widow, Shabana Ansari, 32, over more than $1 million, including Urooj Khan's lottery winnings, as well as his business and real estate holdings.

Khan's brother filed a petition Wednesday to a judge asking Citibank to release information about Khan's assets to "ultimately ensure" that [Khan's] minor daughter from a prior marriage "receives her proper share."

Ansari may have tried to cash the jackpot check after Khan's death, according to court documents, which also showed Urooj Khan's family is questioning if the couple was ever even legally married.

Ansari, Urooj Khan's second wife, who still works at the couple's dry cleaning business, has insisted they were married legally.

She has told reporters the night before her husband died, she cooked a traditional Indian meal for him and their family, including Khan's daughter and Ansari's father. Not feeling well, Khan retired early, Ansari told the Chicago Sun-Times, falling asleep in a chair, waking up in agony, then collapsing in the middle of the night. She said she called 911.

"It has been an incredibly hard time," she told ABC News earlier this week. "We went from being the happiest the day we got the check. It was the best sleep I've had. And then the next day, everything was gone.

"I am cooperating with the investigation," Ansari told ABC News. "I want the truth to come out."

Ansari has not been named a suspect, but her attorney, Steven Kozicki, said investigators did question her for more than four hours.

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Russia rejects Assad exit as precondition for Syria deal

MOSCOW/BEIRUT (Reuters) - Russia voiced support on Saturday for international peace envoy Lakhdar Brahimi but insisted Syrian President Bashar al-Assad's exit cannot be a precondition for a deal to end the country's conflict.

Some 60,000 Syrians have been killed during the 21-month-old revolt and world powers are divided over how to stop the escalating bloodshed. Government aircraft bombed outer districts of Damascus on Saturday after being grounded for a week by stormy weather, opposition activists in the capital said.

A Russian Foreign Ministry statement following talks on Friday with the United States and Brahimi reiterated calls for an end to violence in Syria, but there was no sign of a breakthrough.

Brahimi said the issue of Assad, whom the United States, European powers and Gulf-led Arab states insist must step down to end the civil war, appeared to be a sticking point at the meeting in Geneva.

Russia's Foreign Ministry said: "As before, we firmly uphold the thesis that questions about Syria's future must be decided by the Syrians themselves, without interference from outside or the imposition of prepared recipes for development."

Russia has been Assad's most powerful international backer, joining with China to block three Western- and Arab-backed U.N. Security Council resolutions aimed to pressure him or push him from power. Assad can also rely on regional powerhouse Iran.

In Geneva, Russia called for "a political transition process" based on an agreement by foreign powers last June.

Brahimi, who is trying to build on the agreement reached in Geneva on June 30, has met three times with senior Russian and U.S. diplomats since early December and met Assad in Damascus.

Russia and the United States disagreed over what the June agreement meant for Assad, with Washington saying it sent a clear signal he must go and Russia contending it did not.

CONFLICT INTENSIFIES

Moscow has been reluctant to endorse the "Arab Spring" popular revolts of the last two years, saying they have increased instability in the Middle East and created a risk of radical Islamists seizing power.

Although Russia sells arms to Syria and rents one of its naval bases, the economic benefit of its support for Assad is minimal. Analysts say President Vladimir Putin wants to prevent the United States from using military force or support from the U.N. Security Council to bring down governments it opposes.

However, as rebels gain ground in the war, Russia has given indications it is preparing for Assad's possible exit, while continuing to insist he must not be forced out by foreign powers.

Opposition activists say a military escalation and the hardship of winter have accelerated the death toll.

Rebel forces have acquired more powerful anti-tank and anti-aircraft weapons during attacks on Assad's military bases.

President Assad's forces have employed increasing amounts of military hardware including Scud-type ballistic missiles in the past two months. New York-based Human Rights Watch said they had also used incendiary cluster bombs that are banned by most nations.

STALEMATE IN CITIES

The week-long respite from aerial strikes has been marred by snow and thunderstorms that affected millions displaced by the conflict, which has now reached every region of Syria.

On Saturday, the skies were clear and jets and helicopters fired missiles and dropped bombs on a line of towns to the east of Damascus where rebels have pushed out Assad's ground forces, the Syrian Observatory for Human Rights said.

The British-based group, which is linked to the opposition, said it had no immediate information on casualties from the strikes on districts including Maleiha and farmland areas.

Rebels control large swathes of rural land around Syria but are stuck in a stalemate with Assad's forces in cities, where the army has reinforced positions.

State TV said government forces had repelled an attack by terrorists - a term it uses for the armed opposition - on Aleppo's international airport, now used as a helicopter base.

Reuters cannot independently confirm reports due to severe reporting restrictions imposed by the Syrian authorities and security constraints.

On Friday, rebels seized control of one of Syria's largest helicopter bases, Taftanaz in Idlib province, their first capture of a military airfield.

Eight-six people were killed on Friday, including 30 civilians, the Observatory said.

(Writing by Oliver Holmes; Editing by Tom Pfeiffer)

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Several killed in failed French raid to free Somalia hostage

MOGADISHU: A French soldier and 17 Islamists were killed in a failed bid to free an intelligence officer captured in Somalia in 2009 and whose fate remained unclear, the defence minister said Saturday.

The overnight operation involving some 50 troops and at least five helicopters to free the intelligence agent, with the alias of Denis Allex, was launched by elite forces from the DGSE secret service, Jean-Yves Le Drian said.

"All indications are (that Allex was) killed by his captors," Le Drian told reporters, adding that one French soldier was killed and another missing. He had earlier spoken of two dead troops.

The Shebab, Al Qaeda's local franchise which has held the Frenchman for more than three years, denied Le Drian's assertion that Allex was killed by his captors during the raid and even claimed to have captured a member of the commando team.

"In the end, it will be the French citizens who will inevitably taste the bitter consequences of their government's devil-may-care attitude towards hostages," a Shebab statement said.

Le Drian said the raid in Bulomarer, some 110 kilometres (70 miles) south of Mogadishu, was sparked by the "intransigence of the terrorists who have refused to negotiate for three and a half years and were holding Denis Allex in inhuman conditions."

It came on the same day that French troops launched air strikes on Islamist militants in Mali, in west Africa, but the minister said the operations were not connected.

Allex is among nine French hostages in Africa of whom at least six are held by Al-Qaeda in the Islamic Maghreb (AQIM).

French President Francois Hollande expressed his great distress over the deaths and extended his condolences to the families of victims.

A French expert involved in several hostage negotiations said "talks with the Somali Islamists had become impossible due to the huge ransom demanded and the marked opposition of the Americans to the payment of ransom.

"Denis Allex became a human shield and an operation had become indispensable," the expert said, speaking on condition of anonymity.

A source close to the case also speaking on condition of anonymity said the DGSE had been preparing a raid to free Allex for more than a year, adding they had "been cancelled at the last-minute three or four times as we did not have a solid confirmation of his location."

The Shebab statement said the French carried away "several" of their dead.

"The helicopters attacked a house... upon the assumption that Denis Allex was being held at that location, but owing to a fatal intelligence blunder, the rescue mission turned disastrously wrong.

"The injured French soldier is now in the custody of the mujahedeen and Allex still remains safe and far from the location of the battle," it said.

A Bulomarer resident, Idris Youssouf, told AFP: "We don't know exactly what happened because the attack took place at night, but this morning we saw several corpses including that of a white man.

"Three civilians were also killed in the gunfight," he said.

Allex was kidnapped in Somalia on Bastille day in July 2009 along with a colleague. The second hostage, named as Marc Aubriere, was freed in August in what the French government said was an escape.

The Al-Qaeda linked Shebab lost their main strongholds in the south and centre of the country following an offensive launched in mid-2011 by an African Union force, but they still control some rural areas.

Allex appeared in a video in June 2010 appealing to Paris to drop its support for the Somali government.

He last appeared in another video in October looking gaunt and calling on Hollande to work for his release.

Somalia has not had an effective central government since 1991.

France has a recent history of botched operations, including a failed joint raid with Niger forces in 2011 that left both hostages dead, another in Mali that led to the hostage's execution.

In 2009, French commandos launched a raid to free a French family whose yacht had been hijacked by Somali pirates. They retook the boat but accidentally shot the father.

-AFP/ac

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Fresh exchange of fire along LoC in Poonch sector

JAMMU: Indian and Pakistan troops traded heavy gunfire along the Line of Control in Poonch sector after the movement of a group of suspected infiltrators was detected on Saturday night, in fresh escalation of tension.

"There was a movement of 6 to 7 persons close to LoC opposite Krishagati sub-sector in Poonch sector at around 9.45pm", defence spokesman Col R K Palta said.

There was no immediate report of casualty or injury on the Indian side.

Indian troops opened fire on the suspected infiltrators, the spokesman said adding that thereafter exchange of heavy fire took place.

After about half-an-hour of exchange of fire, the suspected infiltrators disappered from the scene, Col Palta said adding the intensity of firing from both sides has reduced but is going on.

It is suspected that either a groups of militants or Border Action Team (BAT) could have been undertaking movement close to LoC opposite Krishnagati sub-sector in Poonch tonight.

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Flu season puts businesses and employees in a bind

WASHINGTON (AP) — Nearly half the 70 employees at a Ford dealership in Clarksville, Ind., have been out sick at some point in the past month. It didn't have to be that way, the boss says.

"If people had stayed home in the first place, a lot of times that spread wouldn't have happened," says Marty Book, a vice president at Carriage Ford. "But people really want to get out and do their jobs, and sometimes that's a detriment."

The flu season that has struck early and hard across the U.S. is putting businesses and employees alike in a bind. In this shaky economy, many Americans are reluctant to call in sick, something that can backfire for their employers.

Flu was widespread in 47 states last week, up from 41 the week before, the Centers for Disease Control and Prevention said Friday. The only states without widespread flu were California, Mississippi and Hawaii. And the main strain of the virus circulating tends to make people sicker than usual.

Blake Fleetwood, president of Cook Travel in New York, says his agency is operating with less than 40 percent of its staff of 35 because of the flu and other ailments.

"The people here are working longer hours and it puts a lot of strain on everyone," Fleetwood says. "You don't know whether to ask people with the flu to come in or not." He says the flu is also taking its toll on business as customers cancel their travel plans: "People are getting the flu and they're reduced to a shriveling little mess and don't feel like going anywhere."

Many workers go to the office even when they're sick because they are worried about losing their jobs, says John Challenger, CEO of Challenger, Gray & Christmas, an employer consulting firm. Other employees report for work out of financial necessity, since roughly 40 percent of U.S. workers don't get paid if they are out sick. Some simply have a strong work ethic and feel obligated to show up.

Flu season typically costs employers $10.4 billion for hospitalization and doctor's office visits, according to the CDC. That does not include the costs of lost productivity from absences.

At Carriage Ford, Book says the company plans to make flu shots mandatory for all employees.

Linda Doyle, CEO of the Northcrest Community retirement home in Ames, Iowa, says the company took that step this year for its 120 employees, providing the shots at no cost. It is also supplying face masks for all staff.

And no one is expected to come into work if sick, she says.

So far, the company hasn't seen an outbreak of flu cases.

"You keep your fingers crossed and hope it continues this way," Doyle says. "You see the news and it's frightening. We just want to make sure that we're doing everything possible to keep everyone healthy. Cleanliness is really the key to it. Washing your hands. Wash, wash, wash."

Among other steps employers can take to reduce the spread of the flu on the job: holding meetings via conference calls, staggering shifts so that fewer people are on the job at the same time, and avoiding handshaking.

Newspaper editor Rob Blackwell says he had taken only two sick days in the last two years before coming down with the flu and then pneumonia in the past two weeks. He missed several days the first week of January and has been working from home the past week.

"I kept trying to push myself to get back to work because, generally speaking, when I'm sick I just push through it," says Blackwell, the Washington bureau chief for the daily trade paper American Banker.

Connecticut is the only state that requires some businesses to pay employees when they are out sick. Cities such as San Francisco and Washington have similar laws.

Challenger and others say attitudes are changing, and many companies are rethinking their sick policies to avoid officewide outbreaks of the flu and other infectious diseases.

"I think companies are waking up to the fact right now that you might get a little bit of gain from a person coming into work sick, but especially when you have an epidemic, if 10 or 20 people then get sick, in fact you've lost productivity," Challenger says.

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Associated Press writers Mike Stobbe in Atlanta, Eileen A.J. Connelly in New York, Paul Wiseman in Washington, Barbara Rodriguez in Des Moines, Iowa, and Jim Salter in St. Louis contributed to this report.

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