Wall Street ends slightly higher, helped by acquisitions

NEW YORK (Reuters) - The S&P 500 eked out a small gain for a third straight session on Thursday, helped by a flurry of merger activity, though investors see no catalysts to lift the market further with major averages near multi-year highs.


The market's slowed advance took the S&P 500 to its highest intraday level since November 2007 on Wednesday. While the index notched its third straight day of gains, none was more than 0.2 percent.


Shares of H.J. Heinz Co jumped 20 percent to $72.50 after it said Warren Buffett's Berkshire Hathaway and 3G Capital will buy the food company for $72.50 a share, or $28 billion including debt. Berkshire's class B shares rose 1.3 percent to $99.21.


Also supporting the market was data showing the number of Americans filing new claims for unemployment benefits fell more than expected in the latest week. The CBOE Volatility index <.vix> fell 2.4 percent, dropping to 12.67.


"While I'm not bearish, I don't see many upside motivations at these levels," said Donald Selkin, chief market strategist at National Securities in New York, who cited the low level of the VIX as a sign the market was overbought.


Equities have struggled to break above current levels where they have been hovering for almost two weeks. The S&P 500 is up more than 6 percent so far this year.


"We need to digest some of our gains to go higher, but people are so eager to buy on the dips that we're not even seeing dips anymore. People are just chasing the market higher," said Selkin, who helps oversee about $3 billion in assets.


Stocks fell earlier after a report the euro zone's gross domestic product contracted by the steepest amount since the first quarter of 2009. In addition, Japan's GDP shrank 0.1 percent in the fourth quarter, crushing expectations of a modest return to growth.


The Dow Jones industrial average <.dji> was down 9.52 points, or 0.07 percent, at 13,973.39. The Standard & Poor's 500 Index <.spx> was up 1.05 points, or 0.07 percent, at 1,521.38. The Nasdaq Composite Index <.ixic> was up 1.78 points, or 0.06 percent, at 3,198.66.


Constellation Brands soared 37 percent to $43.75 after AB InBev's deal to take over Mexican brewer Grupo Modelo was revised to grant Constellation perpetual rights to distribute Corona and other Modelo brands in the United States. U.S. shares of AB InBev gained 5.1 percent to $92.77.


American Airlines and US Airways Group said they plan to merge in a deal that will form the world's biggest air carrier, with an equity valuation of about $11 billion. US Airways shares fell 4.6 percent to $13.99.


Weakness in Europe contributed to a 5 percent drop in revenue from the region for Cisco Systems , which nonetheless beat estimates as it reported its results late Wednesday. The company's shares dipped 0.7 percent to $20.99.


General Motors Co reported a weaker-than-expected fourth-quarter profit, also citing bigger losses in Europe alongside lower prices in its core North American market. The stock was off 3.3 percent to $27.73.


Only five more stocks rose than fell on the New York Stock Exchange, while 51 percent of Nasdaq-listed shares closed higher.


Volume was light, with about 6.36 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average so far this year of about 6.48 billion shares.


(Editing by Nick Zieminski and Kenneth Barry)



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Israel Museum’s Herod Show Draws Anger Over Use of West Bank Objects


Jim Hollander/European Pressphoto Agency


The exhibition “Herod the Great: The King’s Final Journey” includes a reconstruction of his tomb, with his sarcophagus, center.







JERUSALEM — In one room sits a sarcophagus of reddish-pink limestone believed to have held the body of King Herod, painstakingly reconstructed after having been smashed to bits centuries ago. In another, there are frescoes from Herod’s elaborate underground palace, pieced together like a jigsaw puzzle. Throughout, elaborate animated videos show the king’s audacious construction — atop the desert fortress Masada; at his burial place, Herodium; and his most famous work, the Second Temple of Jerusalem.




The Israel Museum on Tuesday opened its most ambitious archaeological exhibition and the world’s first devoted to Herod, the lionized and demonized Rome-appointed king of Judea, who reigned from 37 to 4 B.C.E. and is among the most seminal and contentious figures in Jewish history. But the exhibition, which the museum director described as a “massive enterprise” that involved sifting through 30 tons of material from Herodium and reconstructing 250 artifacts, has also brought its own bit of controversy.


The Palestinian Authority says the exhibition is a violation of international law because much of its material was taken from near Bethlehem and Jericho, both in the Israeli-occupied West Bank. An Israeli group of archaeologists and activists complains that the museum, however unwittingly, is helping the Jewish settlement movement advance its contention that the West Bank should be part of Israel and not a Palestinian state.


“What the Israel Museum is doing is like coming and saying, ‘Listen, the heritage of the West Bank is part of our heritage first of all,’ ” said Yonathan Mizrachi, an archaeologist who helped found the Israeli group, Emek Shaveh, in 2009. “It’s part of the idea to create the narrative that those sites, no matter what the political solution,” are “part of the Israeli identity.”


James S. Snyder, the director of the museum, dismissed such criticism as propaganda and political opportunism, saying the Oslo Accords signed by the Israelis and Palestinians in the 1990s give Israel responsibility for antiquities in the West Bank until a final-status arrangement is in place. The accords call for the two sides to work together to protect archaeological sites and allow for excavation, with a gradual transfer of control to the Palestinians.


Mr. Snyder said all the material taken from Palestinian territory would be returned if the conflict could be resolved and an appropriate place to keep it was created. He noted that the museum had spent a “huge” sum — he would not specify how much — to restore and make available for public consumption artifacts that might otherwise have been lost, like many of the antiquities in Iraq and Egypt.


“We’re not about geopolitics, we’re not about minefields, we’re about trying to do the best and the right thing for the long term for material cultural heritage,” Mr. Snyder said. “Our goal was to invest in the preservation of this material and return it to the sites. We are but custodians, and we are always ready for it to be where it belongs.”


But Hamdan Taha, director of the Palestinian Authority’s department of antiquities and cultural heritage, said that while Oslo provides for Israel’s excavation in the West Bank, exhibiting the material was another story. He complained that the Palestinians were never consulted about the project, which he called “an aggression against Palestinian cultural rights in their own land,” and said it would “not help to reconstruct peace between the Palestinians and Israel.”


The exhibition is dedicated to the memory of Ehud Netzer, a Hebrew University archaeologist who spent 40 years searching for Herod’s burial place before discovering it in 2007 at Herodium. He died after being injured in a fall at the site in 2010. The tholos, a circular set of columns that topped the tomb, is partly rebuilt in the exhibition, along with the sarcophagus said to be that of Herod and two others.


The many rooms are filled with pottery, coins, busts and frescoes that illustrate the legend of Herod. The king has been admired by historians for his remarkable buildings, but condemned for the murder of his wife and children, among many others. His Judaism was questioned, and he was often denounced as a puppet of Rome, an image the exhibition does little to defy as it explores his relationships with Antony and Cleopatra, Augustus and Marcus Agrippa.


Shmuel Browns, a tour guide and expert on Herodium who helped Netzer excavate the site as a volunteer, said he was awed by the meticulous reconstruction, particularly of a large basin adorned with several heads that was found in pieces in two disparate places at the site, now an Israeli national park.


“They’ve built things from what was found that you could never imagine from what you saw at the site,” Mr. Browns said. “The message is very, very strong about who Herod is and what he did. He wasn’t intimidated by topography, he wasn’t intimidated by material, he wasn’t intimidated by lack of water.


“He’s a fascinating character,” Mr. Browns added. “He just got very, very bad press.”


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Lady Gaga Cancels Born This Way Ball Tour Due to Severe Injury















02/13/2013 at 08:50 PM EST



It's a somber week for Lady Gaga – and her Little Monsters.

Following Tuesday's Facebook announcement that she was "devastated and sad" because she couldn't walk and had to postpone several Born This Way Ball concerts, the pop star, 26, has officially canceled the remaining dates of her world tour.

"After additional tests this morning to review the severity of the issue, it has been determined that Lady Gaga has a labral tear of the right hip," the singer's rep told PEOPLE Wednesday in a statement. "She will need surgery to repair the problem, followed by strict down time to recover. This unfortunately, will force her to cancel the tour, so she can heal."

Refunds for the cancelled performances will be available at point of purchase starting on Thursday.

"I hope you can forgive me, as it is nearly impossible for me to forgive myself," she wrote the previous day of postponing the dates. "I hate this. I hate this so much. I love you and I'm sorry."

Get well, Gaga!

Reporting by CHUCK ARNOLD

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Clues to why most survived China melamine scandal


WASHINGTON (AP) — Scientists wondering why some children and not others survived one of China's worst food safety scandals have uncovered a suspect: germs that live in the gut.


In 2008, at least six babies died and 300,000 became sick after being fed infant formula that had been deliberately and illegally tainted with the industrial chemical melamine. There were some lingering puzzles: How did it cause kidney failure, and why wasn't everyone equally at risk?


A team of researchers from the U.S. and China re-examined those questions in a series of studies in rats. In findings released Wednesday, they reported that certain intestinal bacteria play a crucial role in how the body handles melamine.


The intestines of all mammals teem with different species of bacteria that perform different jobs. To see if one of those activities involves processing melamine, researchers from the University of North Carolina at Greensboro and Shanghai Jiao Tong University gave lab rats antibiotics to kill off some of the germs — and then fed them melamine.


The antibiotic-treated rats excreted twice as much of the melamine as rats that didn't get antibiotics, and they experienced fewer kidney stones and other damage.


A closer look identified why: A particular intestinal germ — named Klebsiella terrigena — was metabolizing melamine to create a more toxic byproduct, the team reported in the journal Science Translational Medicine.


Previous studies have estimated that fewer than 1 percent of healthy people harbor that bacteria species. A similar fraction of melamine-exposed children in China got sick, the researchers wrote. But proving that link would require studying stool samples preserved from affected children, they cautioned.


Still, the research is pretty strong, said microbiologist Jack Gilbert of the University of Chicago and Argonne National Laboratory, who wasn't involved in the new study.


More importantly, "this paper adds to a growing body of evidence which suggests that microbes in the body play a significant role in our response to toxicity and in our health in general," Gilbert said.


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Wall Street pauses after rally to five-year high

NEW YORK (Reuters) - Stocks drifted in light volume on Wednesday, ending little changed, as investors remained cautious after the S&P 500 index briefly hit its highest intraday level since November 2007.


The S&P 500 was buoyed by General Electric after cable company Comcast Corp said it will buy from GE the the part of NBCUniversal it didn't already own for $16.7 billion.


Comcast's stock hit the highest since 1999 before closing up 3 percent at $40.13 and GE gained 3.6 percent to $23.39.


The S&P 500 is up 6.6 percent so far this year, partly due to stronger-than-expected corporate earnings and a better economic outlook. The Dow industrials is about 1 percent away from an all-time intraday high, reached in October 2007.


Volume has been weak in recent days with the S&P moving sideways around 1,520. The index is about 3 percent away from closing at a record high.


A scarcity of sellers after a consistent string of gains is a positive sign and shows the uptrend is intact, King Lip, chief investment officer at Baker Avenue Asset Management in San Francisco, said.


"Last year we had double-digit returns in the first quarter. It's fairly possible we can move higher from here," he said.


The Dow Jones industrial average <.dji> fell 35.79 points or 0.26 percent, to 13,982.91, the S&P 500 <.spx> gained 0.9 point or 0.06 percent, to 1,520.33 and the Nasdaq Composite <.ixic> added 10.38 points or 0.33 percent, to 3,196.88.


The S&P gained 12 percent in the first three months of 2012.


Deere & Co , the world's largest farm equipment maker, forecast a modest increase in sales this year despite the prospect of the biggest corn crop in U.S. history. The forecast fell short of analysts' expectations, sending shares of Deere down 3.5 percent to $90.68.


In extended trading, shares of technology bellwether Cisco Systems fell 2 percent after it posted results.


Dr Pepper Snapple fell 5.8 percent to $42.69 after it forecast profit for the current year below analysts' estimates.


Cliffs Natural Resources lost a fifth of its market value a day after the miner reported a quarterly loss and slashed its dividend by 76 percent. Its shares fell 20 percent to 429.29.


According to the latest Thomson Reuters data, of the 364 companies in the S&P 500 that have reported results, 70.3 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters.


About 5.9 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average in February last year of 6.94 billion.


On the NYSE, roughly seven issues rose for every five that fell and on Nasdaq more than six rose for every five decliners.


(Editing by Kenneth Barry and Bernadette Baum)



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Taking Guns to Holy Ground in Mexico City


Adriana Zehbrauskas for The New York Times


Mexican soldiers evaluated guns last month in Mexico City. The city has largely been spared the violence of other areas.







MEXICO CITY — A young woman cradling a large crucifix left Mexico’s holiest shrine, the Basilica of St. Mary of Guadalupe, on a recent afternoon and stopped at a tent outside, where soldiers were piling up pistols and rifles on a table, part of a citywide cash-for-guns program.




The woman had brought the crucifix to be blessed, but the sight of the tent reminded her father, who was with her, that he could finally get rid of the .22-caliber pistol and the .38-caliber revolver he kept at home.


“I have had them for 40 years, and I have never used them or will use them,” said the 67-year-old man, who declined to give his name, citing the gun plan’s anonymity. “So I might as well exchange them.”


Mexico City officials have invited residents to drop off their antique pistols, rusted rifles, Saturday night specials, air guns, even their grenades — no names, no questions — hoping to put a dent in the number of weapons they believe are hidden in people’s homes, avoid accidents and maybe even reduce violent crime.


They chose the basilica in the belief that people would feel more confident turning over their weapons on holy ground.


“It’s neutral territory,” said Rosa Icela Rodríguez, the city’s secretary of social development. People may not trust the police or the government, she said, but “who doesn’t know the basilica?”


The capital has largely been spared the gun violence that has ravaged much of the country. The city of nearly nine million had an average of slightly more than two killings a day last year, a rate lower than that of many large cities in the United States.


But in November, a 10-year-old boy at the movies was killed when a stray bullet fired into the air outside pierced the cinema’s roof. The killing struck a nerve here, leading to calls for action.


City officials responded by shifting the desultory and poorly publicized efforts of the past into overdrive.


They are sending social workers door to door to remind residents that it is illegal to have a gun without a permit and that a gun at home does not guarantee protection. The workers have been spreading the word about the exchange and compiling an informal census on attitudes about guns. The buyback program, which began in December, has so far collected almost 3,500 guns, as well as ammunition and grenades.


Unlike the United States, where proposals for stricter gun laws are driving a heated political debate, Mexico has strict gun laws and little formal opposition to them. Mexico’s Constitution guarantees the right to bear arms, but that right has been severely restricted.


It is virtually impossible to buy a gun legally; there is only one gun shop in the country, and it is run by the army. The kinds of guns people can buy are sharply limited and require a permit first. Private gun sales also require a permit, and carrying a gun outside one’s home requires a separate document.


The Small Arms Survey, a research project at the Graduate Institute of Research and Development in Geneva, estimates that Mexico has 15.5 million civilian-owned guns, about 15 guns for every 100 residents, compared with 99 per 100 in the United States.


But the number of legal guns in Mexico is even lower: only 2.8 million are registered, according to the Organization of American States.


The vast majority of guns here come from the United States, either smuggled in by criminal gangs or diverted from legal purchases by corrupt officials, according to Magda Coss, who has written about Mexico’s gun trade. Mexican leaders have blamed lax gun laws north of the border for the gun violence here, which the government says has taken about 50,000 lives in the past six years.


Long before the drug wars, Mexicans had an ambivalent relationship with guns. The history of insurrection and revolution created a popular mythology studded with armed folk heroes like Emiliano Zapata, the revolutionary depicted in a famous photograph with a rifle and bandoleers across his chest.


Village festivals to celebrate the patron saint often end with drunken men lumbering down starlit country roads shooting their weapons into the air. Mexico’s fast-forward urbanization has simply moved the festivals and their shooting into densely populated working-class streets.


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Lady Gaga: I Can't Walk Due to Injury















02/12/2013 at 06:45 PM EST



Lady Gaga is feeling like a little monster for postponing concerts because of an injury.

"I barely know what to say," she writes on her Facebook page, Tuesday. "I've been hiding a show injury and chronic pain for some time now, [and] over the past month it has worsened. I've been praying it would heal. I hid it from my staff. I didn't want to disappoint my amazing fans. However, after last night's performance I could not walk and still can't."

The pop star, 26 – whose Twitter page explains that she has a case of synovitis, which is severe inflammation of the joints – was forced to postpone two concerts in Chicago, one in Detroit and one in Hamilton, Ontario.

"I hope you can forgive me, as it is nearly impossible for me to forgive myself," the rest of her Facebook post says. "I'm devastated & sad. It will hopefully heal as soon as possible. I hate this. I hate this so much. I love you and I'm sorry."

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Study questions kidney cancer treatment in elderly


In a stunning example of when treatment might be worse than the disease, a large review of Medicare records finds that older people with small kidney tumors were much less likely to die over the next five years if doctors monitored them instead of operating right away.


Even though nearly all of these tumors turned out to be cancer, they rarely proved fatal. And surgery roughly doubled patients' risk of developing heart problems or dying of other causes, doctors found.


After five years, 24 percent of those who had surgery had died, compared to only 13 percent of those who chose monitoring. Just 3 percent of people in each group died of kidney cancer.


The study only involved people 66 and older, but half of all kidney cancers occur in this age group. Younger people with longer life expectancies should still be offered surgery, doctors stressed.


The study also was observational — not an experiment where some people were given surgery and others were monitored, so it cannot prove which approach is best. Yet it offers a real-world look at how more than 7,000 Medicare patients with kidney tumors fared. Surgery is the standard treatment now.


"I think it should change care" and that older patients should be told "that they don't necessarily need to have the kidney tumor removed," said Dr. William Huang of New York University Langone Medical Center. "If the treatment doesn't improve cancer outcomes, then we should consider leaving them alone."


He led the study and will give results at a medical meeting in Orlando, Fla., later this week. The research was discussed Tuesday in a telephone news conference sponsored by the American Society of Clinical Oncology and two other cancer groups.


In the United States, about 65,000 new cases of kidney cancer and 13,700 deaths from the disease are expected this year. Two-thirds of cases are diagnosed at the local stage, when five-year survival is more than 90 percent.


However, most kidney tumors these days are found not because they cause symptoms, but are spotted by accident when people are having an X-ray or other imaging test for something else, like back trouble or chest pain.


Cancer experts increasingly question the need to treat certain slow-growing cancers that are not causing symptoms — prostate cancer in particular. Researchers wanted to know how life-threatening small kidney tumors were, especially in older people most likely to suffer complications from surgery.


They used federal cancer registries and Medicare records from 2000 to 2007 to find 8,317 people 66 and older with kidney tumors less than 1.5 inches wide.


Cancer was confirmed in 7,148 of them. About three-quarters of them had surgery and the rest chose to be monitored with periodic imaging tests.


After five years, 1,536 had died, including 191 of kidney cancer. For every 100 patients who chose monitoring, 11 more were alive at the five-year mark compared to the surgery group. Only 6 percent of those who chose monitoring eventually had surgery.


Furthermore, 27 percent of the surgery group but only 13 percent of the monitoring group developed a cardiovascular problem such as a heart attack, heart disease or stroke. These problems were more likely if doctors removed the entire kidney instead of just a part of it.


The results may help doctors persuade more patients to give monitoring a chance, said a cancer specialist with no role in the research, Dr. Bruce Roth of Washington University in St. Louis.


Some patients with any abnormality "can't sleep at night until something's done about it," he said. Doctors need to say, "We're not sticking our head in the sand, we're going to follow this" and can operate if it gets worse.


One of Huang's patients — 81-year-old Rhona Landorf, who lives in New York City — needed little persuasion.


"I was very happy not to have to be operated on," she said. "He said it's very slow growing and that having an operation would be worse for me than the cancer."


Landorf said her father had been a doctor, and she trusts her doctors' advice. Does she think about her tumor? "Not at all," she said.


___


Online:


Kidney cancer info: http://www.cancer.net/cancer-types/kidney-cancer


and http://www.cancer.gov/cancertopics/types/kidney


Study: http://gucasym.org


___


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


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Militant Threats Test Pentagon’s Role in Africa


Pool photo by


Gen. William E. Ward, left, departed as Africa Command leader under a cloud, succeeded by Gen. Carter F. Ham in 2011.







NIAMEY, Niger — Created five years ago to focus on training the armed forces of dozens of African nations and strengthening social, political and economic programs, the Pentagon’s Africa Command now finds itself on a more urgent mission: confronting a new generation of Islamist militants who are testing the United States’ resolve to fight terrorism without being drawn into a major conflict.




Some military and Congressional critics question whether the command is up to dealing with its dual mission, and some influential lawmakers warn that Africom, with its headquarters in Germany, is understaffed and poorly financed for challenges that include countering Al Qaeda’s fighters in Mali, Islamic extremists in Libya, drug traffickers in West Africa and armed rebels in the Democratic Republic of Congo.


The leader of the command, Gen. Carter F. Ham, must straddle the new and the old missions, as he demonstrated one day last month when he flew to the northern reaches of this largely desert nation to watch United States troops train Niger’s fledgling border corps in basic skills to help combat Al Qaeda’s branch in North and West Africa. Then, within hours, he was back here in the capital for an urgent secure phone call from Washington to weigh what kind of advanced military support or surveillance the Pentagon could provide a French-led operation to blunt an Islamist offensive in neighboring Mali.


“The command is searching to find the right balance between the press of current military operations and the vision of longer-term engagement, helping Africans develop greater capacity for themselves,” said Christopher W. Dell, a former United States ambassador to Angola and Zimbabwe, who is General Ham’s deputy for civil-military activities.


Africom has an annual budget of about $300 million and 2,000 employees worldwide — an operation that Senator Carl Levin, a Michigan Democrat who is chairman of the Armed Services Committee, calls “an ‘economy of force’ effort.” By comparison, the military’s Central Command, which oversees Afghanistan and the Middle East, has a yearly budget of about $800 million and 5,000 employees.


With no assigned forces in the region except for those at a base in Djibouti, in the Horn of Africa, the command was caught napping last Sept. 11, critics contend, when it had no military forces poised to respond to the attack on the diplomatic mission in Benghazi, Libya, that killed four Americans, including Ambassador J. Christopher Stevens. An independent review of the attack concluded that events had unfolded too quickly for any American forces to make a difference.


Still, controversy has dogged the command since its creation in 2008. Initial statements about its mission and scope of activity alarmed some African leaders and State Department officials, who feared that the Pentagon was trying to militarize diplomacy and development on the continent. These concerns led the command to set up its headquarters in Stuttgart.


The command’s first boss, Gen. William E. Ward, left two years ago under a cloud. Pentagon investigators later found that General Ward had lavishly overspent on official trips. He was ordered to repay the government $82,000 and was forced to retire as a lieutenant general, a one-rank demotion.


Enter General Ham, who turns 61 this week and is the rare Army officer to have risen from private to four-star commander in a 40-year career. He has led troops in northern Iraq, overseen military operations at the Pentagon’s Joint Staff and helped lead reviews into the Defense Department’s “don’t ask, don’t tell” policy and the fatal shootings at Fort Hood, Tex.


His combat mettle was tested almost immediately. Within days of assuming command in March 2011, General Ham was leading the initial phase of the Libya air campaign, for which he earned high marks from his civilian bosses at the Pentagon and the White House.


But the general, who will retire this spring, acknowledged in one of three interviews during his recent trip to Niger that the command’s ability to address the terrorist threat in Africa had been “mixed.”


His grades? “Pretty good” in Somalia, where the Shabab, Islamist militants, have been dealt several setbacks in the past year. “Less good” in Libya, Mali and other parts of North and West Africa, where the United States is hunting Mokhtar Belmokhtar, a militant leader who claimed responsibility for the attack on a gas field in Algeria last month. And lacking in Nigeria, where an Islamist extremist group, Boko Haram, poses a major threat.


“Frankly, the intelligence community has not focused a lot on this part of the world,” General Ham said. “But we are starting to, out of necessity.”


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It's a Girl for John Cho




Celebrity Baby Blog





02/11/2013 at 06:30 PM ET



John Cho Welcomes Daughter Exclusive
Paul Drinkwater/NBC


Surprise: Actor John Cho is a dad again!


The Go On star and his wife welcomed a daughter recently, Cho’s rep confirms to PEOPLE exclusively.


Baby girl is the second child for the couple, who are also parents to a son. No further details are available.


Cho currently stars alongside Jason Bateman in Identity Thief and will reprise his role as Hikaru Sulu in Star Trek Into Darkness in May.


He is also well known for his roles in American Pie and the Harold and Kumar films.


– Anya Leon with reporting by Julie Jordan


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