Israel goes to polls, set to re-elect Netanyahu

JERUSALEM (Reuters) - Israelis voted on Tuesday in an election that is expected to see Prime Minister Benjamin Netanyahu win a third term in office, pushing the Jewish state further to the right, away from peace with the Palestinians and towards a showdown with Iran.

However, Netanyahu's own Likud party, running alongside the ultra-nationalist Yisrael Beitenu group, looks set to have fewer seats than in the previous parliament, with opinion polls showing a surge in support for the far-right Jewish Home party.

Political sources said Netanyahu, concerned by his apparent fall in popularity, might approach centre-left parties after the vote in an effort to broaden his coalition and present a more moderate face to Washington and other concerned allies.

"We want Israel to succeed, we vote Likud-Beitenu ... The bigger it is, the more Israel will succeed," Netanyahu said after casting his ballot alongside his wife and two sons.

Some 5.66 million Israelis are eligible to vote, with polling stations closing at 10 p.m. (2000 GMT). Full results are due by Wednesday morning, opening the way for coalition talks that could take several weeks.

The lackluster election campaign failed to focus on any single issue and with a Netanyahu victory predicted by every opinion poll, the two main political blocs seemed to spend more time on internal feuding than confronting each other.

"There is a king sitting on the throne in Israel and I wanted to dethrone him, but it looks like that won't happen," said Yehudit Shimshi, a retired teacher voting in central Israel, on a bright, hot mid-winter morning.

No Israeli party has ever secured an absolute majority, meaning that Netanyahu, who says that dealing with Iran's nuclear ambitions is his top priority, will have to bring various allies onboard to control the 120-seat Knesset.

The former commando has traditionally looked to religious, conservative parties for backing and is widely expected to seek out the surprise star of the campaign, self-made millionaire Naftali Bennett who heads the Jewish Home party.

Bennett has ruled out any peace pact with the Palestinians and calls for the annexation of much of the occupied West Bank.

His youthful dynamism has struck a chord amongst Israelis, most of whom no longer believe in the possibility of a Palestinian deal, and has eroded Netanyahu's support base.

The Likud has also shifted further right in recent months, with hardline candidates who reject the so-called two-state solution, dominating the top of the party list.

"TRENDY PARTIES"

Surveys suggest Bennett may take up to 14 seats, many at the expense of Likud-Beitenu, which was projected to win 32 in the last round of opinion polls published on Friday -- 10 less than the two parties won in 2009 when they ran separate lists.

Acknowledging the threat, Netanyahu's son Yair urged young Israelis not to abandon the old, established Likud.

"Even if there are more trendy parties, there is one party that has a proven record," he said on Tuesday.

Amongst the new parties standing for the first time in an election were Yesh Atid (There is a Future), a centrist group led by former television host Yair Lapid, seen winning 13 seats.

"All our lives we voted Likud, but today we voted for Lapid because we want a different coalition," said Ahuva Heled, 55, a retired teacher voting with her husband north of Tel Aviv.

Lapid has not ruled out joining a Netanyahu cabinet, but is pushing hard for ultra-Orthodox Jews to do military service -- a demand fiercely rejected by some allies of the prime minister.

Israel's main opposition party, Labour, which is seen capturing up to 17 seats, has already ruled out a repeat of 2009, when it initially hooked up with Netanyahu, promising to promote peace negotiations with the Palestinians.

U.S.-brokered talks collapsed just a month after they started in 2010 following a row over settlement building, and have laid in ruins ever since. Netanyahu blamed the Palestinians for the failure and says his door remains open to discussions.

Palestinian President Mahmoud Abbas says he won't return to the table unless there is a halt to settlement construction.

That looks unlikely, with Netanyahu approving some 11,000 settler homes in December alone, causing further strains to his already notoriously difficult relations with U.S. President Barack Obama, who was sworn in for a second term on Monday.

IRAN THREAT

Tuesday's vote is the first in Israel since Arab uprisings swept the region two years ago, reshaping the Middle East.

Netanyahu has said the turbulence - which has brought Islamist governments to power in several countries long ruled by secularist autocrats, including neighboring Egypt - shows the importance of strengthening national security.

If he wins on Tuesday, he will seek to put Iran back to the top of the global agenda. Netanyahu has said he will not let Tehran enrich enough uranium to make a single nuclear bomb - a threshold Israeli experts say could arrive as early as mid-2013.

Iran denies it is planning to build the bomb, and says Israel, widely believed to have the only nuclear arsenal in the Middle East, is the biggest threat to the region.

The issue has barely registered during the election campaign, with a poll in Haaretz newspaper on Friday saying 47 percent of Israelis thought social and economic issues were the most pressing concern, against just 10 percent who cited Iran.

One of the first problems to face the next government, which is unlikely to take power before the middle of next month at the earliest, is the stuttering economy.

Data last week showed the budget deficit rose to 4.2 percent of gross domestic product in 2012, double the original estimate, meaning spending cuts and tax hikes look certain.

(Additional reporting by Ori Lewis, Jeffrey Heller and Tova Cohen; Editing by Giles Elgood)

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Cycling-No sympathy for Armstrong on social media

LONDON, Jan 21 (Reuters) – Lance Armstrong’s televised doping confession has done nothing to restore his shattered reputation, a study of responses posted to the Twitter social media site showed.

“What was particularly noticeable in our analysis of the Armstrong revelation was the sheer lack of sympathy out there,” said Charlie Dundas of sports market research company Repucom.

“The tone of the discussion around the Oprah Winfrey interview highlighted the level of disappointment and anger that exists. It’s clear the public are far from ready to forgive Lance Armstrong,” he added.

In the interview, Armstrong admitted to using performance-enhancing drugs on his way to his seven Tour de France titles. The Texan also said he hoped a lifetime ban would one day be lifted to allow him to compete in events like marathons.

The Armstrong interview generated 1.9 million Twitter posts between Jan. 14-20, Repucom said. America accounted for more than a quarter of these, with Australia the second most active nation on the site. (Writing by Keith Weir, editing by Mark Meadows)

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Vera Wang Reveals Details of Michelle Kwan's Wedding Dress

By Cynthia Wang

01/21/2013 at 07:00 PM EST

Michelle Kwan and Clay Pell

Courtesy of Caitlin Maloney

Although she was a singles figure skater throughout her successful career, Michelle Kwan did have one steadfast partner on the ice – fashion designer Vera Wang.

"I wore so many skating dresses designed by her, whole skating shows and everything," Kwan, 32, tells PEOPLE. "I have a long relationship with her."

And that made picking a wedding dress designer a fairly easy decision.

For Kwan's Rhode Island nuptials on Jan. 19 to Clay Pell, 31, Wang put plenty of consideration into her creation.

"She is marrying someone whose family has a political history, and Michelle is living and working in Washington, D.C.," the designer says. "[The dress] had to have a certain dignity and a certain classicism, and I think it was a lot about a new way of looking at tradition."

So Wang created an ivory, strapless mermaid gown for Kwan, made with layers of silk organza and featuring lace appliqué.

"The fact that it's got an inordinate amount of handwork in terms of lace is really a tribute to the art of hand-piecing lace," Wang says. "There is a princess-slash-queenly level of sophistication and quiet without sacrificing a lot of detail."

To complement the formal wedding gown, Kwan asked Wang what she thought of designing a second dress for the reception. "She said, 'Yeah, I got it,' " Kwan says. "She said, 'First dance, yes, and then you've got to change into something else.' "

Her history with the skater was not lost on Wang. "I'm really very honored and very thrilled that a, Michelle has found the love of her life and b, that I am the one to dress her for that special day just as I did for world championships, national championships, and Olympics," she said. "It's just the ongoing saga of our friendship."

For more on Kwan's wedding, including photos and details from the ceremony, pick up a copy of next week's PEOPLE, on newsstands Friday

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Flu season fuels debate over paid sick time laws

NEW YORK (AP) — Sniffling, groggy and afraid she had caught the flu, Diana Zavala dragged herself in to work anyway for a day she felt she couldn't afford to miss.

A school speech therapist who works as an independent contractor, she doesn't have paid sick days. So the mother of two reported to work and hoped for the best — and was aching, shivering and coughing by the end of the day. She stayed home the next day, then loaded up on medicine and returned to work.

"It's a balancing act" between physical health and financial well-being, she said.

An unusually early and vigorous flu season is drawing attention to a cause that has scored victories but also hit roadblocks in recent years: mandatory paid sick leave for a third of civilian workers — more than 40 million people — who don't have it.

Supporters and opponents are particularly watching New York City, where lawmakers are weighing a sick leave proposal amid a competitive mayoral race.

Pointing to a flu outbreak that the governor has called a public health emergency, dozens of doctors, nurses, lawmakers and activists — some in surgical masks — rallied Friday on the City Hall steps to call for passage of the measure, which has awaited a City Council vote for nearly three years. Two likely mayoral contenders have also pressed the point.

The flu spike is making people more aware of the argument for sick pay, said Ellen Bravo, executive director of Family Values at Work, which promotes paid sick time initiatives around the country. "There's people who say, 'OK, I get it — you don't want your server coughing on your food,'" she said.

Advocates have cast paid sick time as both a workforce issue akin to parental leave and "living wage" laws, and a public health priority.

But to some business owners, paid sick leave is an impractical and unfair burden for small operations. Critics also say the timing is bad, given the choppy economy and the hardships inflicted by Superstorm Sandy.

Michael Sinensky, an owner of seven bars and restaurants around the city, was against the sick time proposal before Sandy. And after the storm shut down four of his restaurants for days or weeks, costing hundreds of thousands of dollars that his insurers have yet to pay, "we're in survival mode."

"We're at the point, right now, where we cannot afford additional social initiatives," said Sinensky, whose roughly 500 employees switch shifts if they can't work, an arrangement that some restaurateurs say benefits workers because paid sick time wouldn't include tips.

Employees without sick days are more likely to go to work with a contagious illness, send an ill child to school or day care and use hospital emergency rooms for care, according to a 2010 survey by the University of Chicago's National Opinion Research Center. A 2011 study in the American Journal of Public Health estimated that a lack of sick time helped spread 5 million cases of flu-like illness during the 2009 swine flu outbreak.

To be sure, many employees entitled to sick time go to work ill anyway, out of dedication or at least a desire to project it. But the work-through-it ethic is shifting somewhat amid growing awareness about spreading sickness.

"Right now, where companies' incentives lie is butting right up against this concern over people coming into the workplace, infecting others and bringing productivity of a whole company down," said John A. Challenger, CEO of employer consulting firm Challenger, Gray & Christmas.

Paid sick day requirements are often popular in polls, but only four places have them: San Francisco, Seattle, Washington, D.C., and the state of Connecticut. The specific provisions vary.

Milwaukee voters approved a sick time requirement in 2008, but the state Legislature passed a law blocking it. Philadelphia's mayor vetoed a sick leave measure in 2011; lawmakers have since instituted a sick time requirement for businesses with city contracts. Voters rejected a paid sick day measure in Denver in 2011.

In New York, City Councilwoman Gale Brewer's proposal would require up to five paid sick days a year at businesses with at least five employees. It wouldn't include independent contractors, such as Zavala, who supports the idea nonetheless.

The idea boasts such supporters as feminist Gloria Steinem and "Sex and the City" actress Cynthia Nixon, as well as a majority of City Council members and a coalition of unions, women's groups and public health advocates. But it also faces influential opponents, including business groups, Mayor Michael Bloomberg and City Council Speaker Christine Quinn, who has virtually complete control over what matters come to a vote.

Quinn, who is expected to run for mayor, said she considers paid sick leave a worthy goal but doesn't think it would be wise to implement it in a sluggish economy. Two of her likely opponents, Public Advocate Bill de Blasio and Comptroller John Liu, have reiterated calls for paid sick leave in light of the flu season.

While the debate plays out, Emilio Palaguachi is recovering from the flu and looking for a job. The father of four was abruptly fired without explanation earlier this month from his job at a deli after taking a day off to go to a doctor, he said. His former employer couldn't be reached by telephone.

"I needed work," Palaguachi said after Friday's City Hall rally, but "I needed to see the doctor because I'm sick."

___

Associated Press writer Susan Haigh in Hartford, Conn., contributed to this report.

___

Follow Jennifer Peltz at http://twitter.com/jennpeltz

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European shares test two-year highs, yen volatile before BOJ

LONDON (Reuters) - European shares inched towards two-year highs and German Bund futures dipped on Monday, as a political attempt to break a budget impasse in the United States revived appetite for shares and dented demand for safe-haven assets.

U.S. House Republican leaders said on Friday they would seek to pass a three-month extension of federal borrowing authority in the coming days to buy time for the Democrat-controlled Senate to pass a plan to shrink budget deficits.

European shares <.fteu3> were supported by the news <.eu>, but with no clear response from the Democrats and a thin session expected due to a market holiday in the United States, the impact on other assets such as Bunds is likely to be limited.

An early morning push by London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> was beginning to fade by mid-morning, leaving the pan-European FTSEurofirst 300 up 0.1 percent and MSCI's world index <.miwd00000pus> steady at a 20-month high. <.l><.eu/>

"There's a bit of encouragement coming out of the U.S.," said Toby Campbell-Gray, head of trading at Tavira Securities in Monaco.

He added that equity markets had remained resilient in the face of an uncertain economic outlook as many investors had stepped in to buy "on the dip" on days when shares had fallen.

Ahead of the region's first finance ministers' meeting of the year, the euro was down slightly at just over $1.33 against the dollar, while the yen firmed after touching a new low, ahead of a Bank of Japan decision expected to deliver bold monetary easing.

According to sources familiar with the Bank of Japan's thinking, the government of new Prime Minister Shinzo Abe and the central bank have agreed to set 2 percent inflation as a new target, supplanting a softer 1 percent 'goal'.

The dollar rose to as high as 90.25 yen earlier on Monday, its highest since June 2010. It later slipped 0.7 percent on the day to 89.39 yen, as traders cut short positions given the BOJ has often fallen short of market expectations.

"Investors are being mindful that the moves we have seen over the course of the last month or two are just worth locking in at least until we understand how the BOJ are really going to play in the future," said Jeremy Stretch, head of currency strategy at CIBC World Markets.

CURRENCY WAR

Japanese equities have surged in recent weeks in anticipation of a more aggressive monetary policy stance, but not everyone is happy.

The slump in the yen has prompted Russia's deputy central bank governor to warn of a new round of 'currency wars' and the medium-term risk of running ultra-loose monetary policies is likely to be a theme of the World Economic Forum in Davos, which opens on Wednesday.

With little in the way of economic data or debt issuance and U.S. markets shut for the Martin Luther King public holiday, the rest of the day was expected to be a fairly quite day for investors.

In bond markets, German Bund yields rose close to the top of this year's 30 basis points range, after Republican lawmakers' efforts to give the U.S. government leeway to pay its bills for another three months. Most other euro zone bonds were trading virtually flat.

The U.S. Treasury needs congressional authorisation to raise the current $16.4 trillion limit on U.S. debt sometime between mid-February and early March. A failure to achieve that could lead to a debt default.

"This is part of the political game, it remains to be seen whether the Democrats will accept it," KBC strategist Piet Lammens said, adding that investors' working scenario was that a solution to raise the ceiling would be eventually found anyway.

OIL OVERSUPPLY

German markets showed no reaction after the country's centre-left opposition party edged Chancellor Angela Merkel's conservatives from power in a regional election on Sunday, reviving its flagging hopes for September's national election.

Oil prices took their cues from a report in the United States at the end of last week that showed consumer sentiment at its weakest in a year as a result of the uncertainty surrounding the country's debt crisis.

Concerns about demand overshadowed supply disruption fears reinforced by the Islamist militant attack and hostage-taking at a gas plant in Algeria, a member of the Organization of Petroleum Exporting Countries.

Brent futures were down by 17 cents to $111.72 per barrel by 1030 GMT. U.S. crude shed 40 cents to $95.16 per barrel after touching a four-month high last week.

"The over-riding fundamental feeling in the market is that crude oil is over-supplied in 2013," said Tony Nunan, an oil risk manager at Mitsubishi.

Last week's data showing a pick-up in the Chinese economy helped keep growth-sensitive copper prices steady at roughly $8,058 an ounce. Gold, meanwhile, reversed Friday's losses to stand at $1,688 an ounce.

(Additional reporting by Sudip Kar-Gupta, Marious Zaharia and Anooja Debnath; Editing by Will Waterman and Giles Elgood)

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Algeria finds dead Canadian militants as siege toll rises

ALGIERS (Reuters) - Algerian special forces have found the bodies of two Canadian Islamist fighters after a bloody siege at a desert gas plant, a security source said on Monday, as the death toll reached at least 80 after troops stormed the complex to end the hostage crisis.

Algerian Prime Minister Abdelmalek Sellal is expected to give details later in the day about the siege near the town of In Amenas, which left American, British, French, Japanese, Norwegian, Filipino and Romanian workers dead or missing.

The Algerian security source told Reuters that documents found on the bodies of the two militants had identified them as Canadians, as forces scoured the plant following Saturday's bloody end to the crisis.

Veteran Islamist fighter Mokhtar Belmokhtar claimed responsibility for the attack on behalf of al Qaeda, and an official Algerian source has said the militants included people from outside the African continent, as well as Arabs and Africans.

A security source said on Sunday that Algerian troops had found the bodies of 25 hostages, raising the number of hostages killed to 48 and the total number of deaths to at least 80. He said six militants were captured alive and troops were still searching for others.

A Japanese government source said the Algerian government had informed Tokyo that nine Japanese had been killed, the biggest toll so far among foreigners at the plant. Six Filipinos died and four were wounded, a government spokesman in Manila said.

The raid has exposed the vulnerability of multinational-run oil and gas installations in an important producing region and pushed the growing threat from Islamist militant groups in the Sahara to a prominent position in the West's security agenda.

ONE-EYED JIHADIST

Belmokhtar - a one-eyed jihadist who fought in Afghanistan and Algeria's civil war of the 1990s when the secular government fought Islamists - tied the desert attack to France's intervention across the Sahara against Islamist rebels in Mali.

"We in al Qaeda announce this blessed operation," he said in a video, according to Sahara Media, a regional website. About 40 attackers participated in the raid, he said, roughly matching the government's figures for fighters killed and captured.

Belmokhtar demanded an end to French air strikes against Islamist fighters in neighboring Mali. These began five days before the fighters swooped out of the desert before dawn on Wednesday and seized a plant that produces 10 percent of Algeria's natural gas exports.

However, U.S. and European officials doubt such a complex raid could have been organized quickly enough to have been conceived as a direct response to the French military intervention.

The group behind the raid, the Mulathameen Brigade, also threatened to carry out more such attacks if Western powers did not end what it called an assault on Muslims in Mali, according to the SITE service, which monitors militant statements.

In a statement published by the Mauritania-based Nouakchott News Agency, the hostage takers said they had offered talks about freeing the captives, but the Algerian authorities had been determined to use military force.

"We opened the door for negotiations with the Westerners and the Algerians, and granted them safety from the beginning of the operation, but one of the senior (Algerian) intelligence officials confirmed to us in a phone call that they will destroy the place with everyone in it," SITE quoted the statement as saying.

BLOODY SIEGE

The siege turned bloody on Thursday when the Algerian army opened fire, saying fighters were trying to escape with their prisoners. Survivors said Algerian forces blasted several trucks in a convoy carrying both hostages and their captors.

Nearly 700 Algerian workers and more than 100 foreigners escaped, mainly on Thursday when the fighters were driven from the residential barracks. Some captors remained holed up in the industrial complex until Saturday when they were overrun.

The bloodshed has strained Algeria's relations with its Western allies, some of which have complained about being left in the dark while the decision to storm the compound was being taken.

Nevertheless, Britain and France both defended the military action by Algeria, the strongest military power in the Sahara and an ally the West needs in combating the militants.

Among other foreigners confirmed dead by their home countries were three Britons, one American and two Romanians. The missing include five Norwegians, three Britons and a British resident. An Algerian security source said at least one Frenchman was also among the dead.

The raid on the plant, which was home to expatriate workers from Britain's BP, Norway's Statoil, Japanese engineering firm JGC Corp and others, exposed the vulnerability of multinational oil operations in the Sahara.

However, Algeria is determined to press on with its energy industry. Oil Minister Youcef Yousfi visited the site and said physical damage was minor, state news service APS reported. The plant would start up again in two days, he said.

Algeria, scarred by the civil war with Islamist insurgents in the 1990s which claimed 200,000 lives, insisted from the start of the crisis there would be no negotiation in the face of terrorism. France especially needs close cooperation from Algeria to crush Islamist rebels in northern Mali.

(Additional reporting by Anton Slodkowski in Tokyo, Balazs Koranyi in Oslo, William Maclean in Dubai, Estelle Shirbon and David Alexander in London, Brian Love in Paris and Daniel Flynn in Dakar; Writing by David Stamp; Editing by Giles Elgood)

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Notre Dame hoax tip was emailed: Deadspin.com editor

CHICAGO (Reuters) – The tip that led to the revelation that one of the most widely recounted U.S. sports narratives of the past year was a hoax came to the editors of an online sports blog as many of their news tips do: an unsolicited email.

That email led Deadspin.com assignment editor Timothy Burke on the hunt of a story that exposed the heart-wrenching tale of standout Notre Dame linebacker Manti Te’o's dead girlfriend as a fabrication, Burke said on CNN on Thursday.

Te’o sprang to national prominence last fall when the senior co-captain was seen heroically leading the Fighting Irish to an underdog victory against the Michigan State Spartans within days of learning his grandmother had died. Moreover, it was widely reported, Te’o's girlfriend had died of leukemia just hours after his grandmother’s death.

From that point, Te’o's narrative was a prominent feature in coverage of the team, which has a dedicated following and whose games are televised nationally each week.

Notre Dame went on to an undefeated regular season, culminating in a berth in the national championship game, which the Fighting Irish lost to the Alabama Crimson Tide on January 7.

“We got an email last week at Deadspin.com that said ‘Hey, there’s something real weird about Lennay Kekua, Manti Te’o's allegedly dead girlfriend. You guys should check it out,’” Burke said.

The email prompted Burke and co-author Jack Dickey to begin searching online for background on Kekua. “So we start Googling the name Lennay Kekua. We can’t find any evidence of this person that wasn’t attached to stories about her being Manti Te’o's dead girlfriend.”

Their investigation led about a week later to a 4,000-word expose, published Wednesday under the headline “Blarney,” that painstakingly debunked the story of Kekua’s existence. The story went viral online.

Within hours of its publication, officials at Notre Dame, one of the most powerful institutions in college football and U.S. collegiate athletics overall, held a hastily organized press conference to assert that Te’o had been duped in a hoax perpetrated by a friend of his.

The girlfriend, who called herself Kekua and claimed to be a Stanford University graduate, was merely an online persona who “ingratiated herself with Manti and then conspired with others to lead him to believe she had tragically died of leukemia,” university spokesman Dennis Brown said in a statement.

Notre Dame Athletic Director Jack Swarbrick said the university learned of the hoax from Te’o on December 26. Te’o answered questions forthrightly and private investigators uncovered several things that pointed to Te’o being a victim in the case, Swarbrick said.

Deadspin’s Burke said he remains skeptical of this being a hoax perpetrated on Te’o rather than by Te’o.

“Ask yourself why and what incentive a person would have to execute such a lengthy, time-consuming and expensive con that would involve multiple people and essentially consume his entire life just to screw around with a guy that he knows?” Burke said on CNN.

Deadspin.com said the woman whose photograph was frequently shown on TV and in news reports about Kekua was actually a young California woman who had never met or communicated with Te’o. The website declined to identify her by name.

On Thursday, TV newsmagazine “Inside Edition” said the woman in the photograph was a 23-year-old marketing professional in Los Angeles named Diane O’Meara. Inside Edition, which is syndicated by CBS Television Distribution, said O’Meara was a former classmate of one of Te’o's friends. It Aredid not give the friend’s name.

In the expose published Wednesday, Deadspin.com said a friend of Te’o's named Ronaiah Tuiasosopo was “the man behind” the hoax.

Outside Tuiasosopo’s home in Palmdale, California on Thursday, a member of his family who did not identify himself told reporters, “Please, we have no comment. Please respect that.”

The Te’o hoax is the latest black eye Notre Dame’s legendary football program has suffered in recent years.

In 2011, the school was fined $ 42,000 by an Indiana agency over the death of football videographer Declan Sullivan, 20, who died in October 2010 after a hydraulic lift he was using to record practice toppled over in high winds.

In 2010, Elizabeth “Lizzy” Seeberg, a freshman at nearby St. Mary’s College, killed herself ten days after accusing a Notre Dame football player of sexual battery. Her family began questioning the campus police department’s reluctance to gather evidence and a 15-day delay in interviewing the accused.

After a federal investigation into the matter, the school agreed to revise its policies on sexual misconduct.

(Additional reporting by Dan Burns, Dana Feldman, David Bailey and Mary Wisniewski.; Editing by Vicki Allen, Greg McCune and Andrew Hay)

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It's a Boy for American Idol's Danny Gokey

Mom & Babies
Celebrity Baby Blog

01/21/2013 at 12:00 AM ET

Courtesy Danny Gokey

Now he’s got a little Idol of his own!

American Idol season eight finalist Danny Gokey and his wife Leyicet welcomed their first child, son Daniel Emanuel Gokey, on Sunday, Jan. 20, PEOPLE confirms exclusively.

Weighing in at 8 lbs. 11 oz., Daniel arrived at 9:52 p.m. EST on his due date.

“Leyicet and I are overjoyed to welcome the new member of our family. I’m ecstatic to be a first time dad and to have a new little buddy to hang out with,” Gokey tells PEOPLE.

“Thankfully, because of what I do, it will also allow me the flexibility to spend a lot of quality time with him. I have so many exciting projects ahead this year but a brand new baby is an amazing way to get the new year started. We feel really blessed!”

The timing for their newborn couldn’t be better. Almost exactly one year ago, Gokey, 32, and his model wife, 26, tied the knot in a low-key affair in Florida on January 29. Six months later, they shared the happy news of their pregnancy.

This is the second marriage for Gokey, who tragically lost his first wife Sophia in 2008 after a routine surgery for congenital heart disease. Gokey now runs the Sophia’s Heart Foundation, which helps homeless families, in her honor.

– Kevin O’Donnell

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Lilly drug chosen for Alzheimer's prevention study

Researchers have chosen an experimental drug by Eli Lilly & Co. for a large federally funded study testing whether it's possible to prevent Alzheimer's disease in older people at high risk of developing it.

The drug, called solanezumab (sol-ah-NAYZ-uh-mab), is designed to bind to and help clear the sticky deposits that clog patients' brains.

Earlier studies found it did not help people with moderate to severe Alzheimer's but it showed some promise against milder disease. Researchers think it might work better if given before symptoms start.

"The hope is we can catch people before they decline," which can come 10 years or more after plaques first show up in the brain, said Dr. Reisa Sperling, director of the Alzheimer's center at Brigham and Women's Hospital in Boston.

She will help lead the new study, which will involve 1,000 people ages 70 to 85 whose brain scans show plaque buildup but who do not yet have any symptoms of dementia. They will get monthly infusions of solanezumab or a dummy drug for three years. The main goal will be slowing the rate of cognitive decline. The study will be done at 50 sites in the U.S. and possibly more in Canada, Australia and Europe, Sperling said.

In October, researchers said combined results from two studies of solanezumab suggested it might modestly slow mental decline, especially in patients with mild disease. Taken separately, the studies missed their main goals of significantly slowing the mind-robbing disease or improving activities of daily living.

Those results were not considered good enough to win the drug approval. So in December, Lilly said it would start another large study of it this year to try to confirm the hopeful results seen patients with mild disease. That is separate from the federal study Sperling will head.

About 35 million people worldwide have dementia, and Alzheimer's is the most common type. In the U.S., about 5 million have Alzheimer's. Current medicines such as Aricept and Namenda just temporarily ease symptoms. There is no known cure.

___

Online:

Alzheimer's info: http://www.alzheimers.gov

Alzheimer's Association: http://www.alz.org

___

Follow Marilynn Marchione's coverage at http://twitter.com/MMarchioneAP

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Wall Street Week Ahead: Earnings, money flows to push stocks higher

NEW YORK (Reuters) - With earnings momentum on the rise, the S&P 500 seems to have few hurdles ahead as it continues to power higher, its all-time high a not-so-distant goal.

The U.S. equity benchmark closed the week at a fresh five-year high on strong housing and labor market data and a string of earnings that beat lowered expectations.

Sector indexes in transportation <.djt>, banks <.bkx> and housing <.hgx> this week hit historic or multiyear highs as well.

Michael Yoshikami, chief executive at Destination Wealth Management in Walnut Creek, California, said the key earnings to watch for next week will come from cyclical companies. United Technologies reports on Wednesday while Honeywell is due to report Friday.

"Those kind of numbers will tell you the trajectory the economy is taking," Yoshikami said.

Major technology companies also report next week, but the bar for the sector has been lowered even further.

Chipmakers like Advanced Micro Devices , which is due Tuesday, are expected to underperform as PC sales shrink. AMD shares fell more than 10 percent Friday after disappointing results from its larger competitor, Intel . Still, a chipmaker sector index <.sox> posted its highest weekly close since last April.

Following a recent underperformance, an upside surprise from Apple on Wednesday could trigger a return to the stock from many investors who had abandoned ship.

Other major companies reporting next week include Google , IBM , Johnson & Johnson and DuPont on Tuesday, Microsoft and 3M on Thursday and Procter & Gamble on Friday.

CASH POURING IN, HOUSING DATA COULD HELP

Perhaps the strongest support for equities will come from the flow of cash from fixed income funds to stocks.

The recent piling into stock funds -- $11.3 billion in the past two weeks, the most since 2000 -- indicates a riskier approach to investing from retail investors looking for yield.

"From a yield perspective, a lot of stocks still yield a great deal of money and so it is very easy to see why money is pouring into the stock market," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.

"You are just not going to see people put a lot of money to work in a 10-year Treasury that yields 1.8 percent."

Housing stocks <.hgx>, already at a 5-1/2 year high, could get a further bump next week as investors eye data expected to support the market's perception that housing is the sluggish U.S. economy's bright spot.

Home resales are expected to have risen 0.6 percent in December, data is expected to show on Tuesday. Pending home sales contracts, which lead actual sales by a month or two, hit a 2-1/2 year high in November.

The new home sales report on Friday is expected to show a 2.1 percent increase.

The federal debt ceiling negotiations, a nagging worry for investors, seemed to be stuck on the back burner after House Republicans signaled they might support a short-term extension.

Equity markets, which tumbled in 2011 after the last round of talks pushed the United States close to a default, seem not to care much this time around.

The CBOE volatility index <.vix>, a gauge of market anxiety, closed Friday at its lowest since April 2007.

"I think the market is getting somewhat desensitized from political drama given, this seems to be happening over and over," said Destination Wealth Management's Yoshikami.

"It's something to keep in mind, but I don't think it's what you want to base your investing decisions on."

(Reporting by Rodrigo Campos, additional reporting by Chuck Mikolajczak and Caroline Valetkevitch; Editing by Kenneth Barry)

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