Agency checks water after body found in hotel tank

LOS ANGELES (AP) — British tourist Michael Baugh and his wife said water had only dribbled out of the taps at the downtown Cecil Hotel for days.

On Tuesday, after showering, brushing their teeth and drinking some of the tap water, they headed down to the lobby and found out why.

The body of a Canadian woman had been discovered at the bottom of one of four cisterns on the roof of the historic hotel near Skid Row. The tanks provide water for hotel taps and would have been used by guests for washing and drinking.

"The moment we found out, we felt a bit sick to the stomach, quite literally, especially having drank the water, we're not well mentally," Michael Baugh, 27, said.

Los Angeles County Department of Public Health officials issued a do-not-drink order Tuesday while its lab analyzes the water, said Allen Solomon, a spokesman for the department. The disclosure contradicts a previous police statement that the water had been deemed safe.

Solomon said the water was also used for cooking in the hotel. Results of the testing were expected Thursday.

A call to the hotel was not returned.

The remains of Elisa Lam, 21, were found by a maintenance worker at the 600-room hotel that charges $65 a night after guests complained about the low water pressure.

Police detectives were working to determine if her death was the result of foul play or an accident.

Lopez called it suspicious and said a coroner's investigation will determine Lam's cause of death.

Before she died, hotel surveillance footage showed Lam inside an elevator pushing buttons and sticking her head out the doors, looking in both directions. She was later found in the water tank.

The discovery turned the Baughs' two-week vacation into a nightmare.

"We'd hop in the shower, imagine, the water sprinkles out, and this is the only appropriate word, it dribbled out," Baugh said.

He and his wife Sabina, 27, who were on their first trip to the U.S., had booked their room as part of a tour package and had "no idea that it was in a dodgy area," he said.

The hotel is on Main Street in a part of downtown where efforts at gentrification often conflicts with homelessness and crime.

"When you look at the area, it's not surprising," Baugh said of the discovery of the body. "Everyone we spoke to said why are you staying there? Don't walk at night in that area, stay indoors."

Lam, of Vancouver, British Columbia, traveled alone to Los Angeles on Jan. 26 and was last seen five days later by workers at the hotel.

Lopez said the hotel has four cisterns on its roof that are each about 10 feet tall, 4.5 feet wide and hold at least 1,000 gallons of water.

Lam's body was found Tuesday morning at the bottom of one cistern that was about three-quarters full of water, Lopez said.

The opening at the top of the cistern is too small to accommodate firefighters and equipment, so they had to cut a hole in the storage tank to recover Lam's body.

The cisterns are on a platform at least 10 feet above the roof.

To get to the tanks, someone would have to go to the top floor then take a staircase with a locked door and emergency alarm preventing roof access.

Another ladder would have to be taken to the platform and a person would have to climb the side of the tank.

Lopez said there are no security cameras on the roof.

Lam intended to travel to Santa Cruz, about 350 miles north of Los Angeles. Officials said she tended to use public transportation and had been in touch with her family daily until she disappeared.

The Cecil Hotel was built in the 1920s and refurbished several years ago. It had once been the occasional home of infamous serial killers such as Richard Ramirez, known as the Night Stalker, and Austrian prison author Jack Unterweger, who was convicted of murdering nine prostitutes in Europe and the U.S., the Los Angeles Times reported.

Baugh and his wife had planned to go to SeaWorld on Wednesday but instead camped in the hotel lobby for more than 12 hours because they refused to sign a health risk waiver to stay in their rooms as they waited to hear back from their tour agency to be placed elsewhere.

"We've got nowhere to go, we've got all our luggage with us," Michael Baugh said.

They also called their family and the British Embassy trying to figure out what to do.

The couple hadn't touched any water at the hotel since learning the body had been discovered.

Eventually, they were placed at another downtown hotel with a less than sterling reputation, from what they heard.

"We're just going from one dodgy place to another," Baugh said, resigned, "but at least there's water."

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Tami Abdollah can be reached at http://www.twitter.com/latams. Shaya Tayefe Mohajer contributed to this report.

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Brazen Jewel Robbery at Brussels Airport Nets $50 Million in Diamonds

BRUSSELS — They arrived at Brussels Airport armed with automatic weapons and dressed in police uniforms aboard two vehicles equipped with blue police lights. But their most important weapon was information: the eight hooded gangsters who on Monday evening seized diamonds worth tens of millions of dollars from a passenger plane preparing to depart for Switzerland knew exactly when to strike — just 20 minutes before takeoff.

Forcing their way through the airport’s perimeter fence, the thieves raced, police lights flashing, to flight LX789, which had just been loaded with diamonds from a Brinks armored van from Antwerp, Belgium, and was getting ready for an 8:05 p.m. departure for Zurich.

“There is a gap of only a few minutes” between the loading of valuable cargo and the moment the plane starts to move, said Caroline De Wolf, a spokeswoman for the Antwerp World Diamond Centre, an industry body that promotes the diamond business in Belgium. “The people who did this knew there was going to be this gap and when.”

They also knew they had to move swiftly in a secure airport zone swarming with police officers and security guards. Waving guns that the Brussels prosecutors office described as “like Kalashnikovs,” they calmly ordered ground staff and the pilot, who was outside the plane making a final inspection, to back off and began unloading scores of gem-filled packets from the cargo hold. Without firing a shot, they then sped away into the night with a booty that the Antwerp Diamond Centre said was worth around $50 million but which some Belgian news media reported as worth much more.

The thieves’ only mishap: they got away with 120 packets of diamonds but left some gems behind in their rush.

“They were very, very professional,” said the Brussels prosecutor Ine Van Wymersch, who said the whole operation lasted barely five minutes. The police, she added, are now examining whether the thieves had inside information. “This is an obvious possibility,” she said.

Passengers, already on board the plane awaiting takeoff, had no idea anything was amiss until they were told to disembark as their Zurich-bound flight, operated by Helvetic Airways, had been canceled.

“I am certain this was an inside job,” said Doron Levy, an expert in airport security at a French risk management company, Ofek. The theft, he added, was “incredibly audacious and well organized,” and beyond the means of all but the most experienced and strong-nerved criminals. “In big jobs like this we are often surprised by the level of preparation and information: they know so much they probably know the employees by name.”

He said the audacity of the crime recalled in some ways the so-called Pink Panther robberies, a long series of brazen raids on high-end jewelers in Geneva, London and elsewhere blamed on criminal gangs from the Balkans. But he said the military precision of Monday’s diamond robbery and the targeting of an airport suggested a far higher level of organization than the cruder Pink Panther operations.

The police have yet to make any arrests related to the airport robbery, said the prosecutor, but have found a burned-out white van that they believe may have been used by the robbers. It was found near the airport late on Monday.

Scrambling to crack a crime that has delivered an embarrassing blow to the reputation of Brussels Airport and Antwerp’s diamond industry, the Belgian police are now looking into possible links with earlier robberies at the same airport. The airport, which handles nearly daily deliveries of diamonds to and from Antwerp, the world’s leading diamond trading center, has been targeted on three previous occasions since the mid-1990s by thieves using similar methods to seize gems and other valuables. Most of the culprits in those robberies have been caught.

Jan Van Der Cruysse, a spokesman for the airport, insisted that security was entirely up to international standards, but “what we face is organized crime with methods and means not addressed in aviation security measures as we know them today.” Precautions designed to combat would-be bombers and other threats, he added, could not prevent commando-style raids by heavily armed criminals. “This involves much more than an aviation security problem.”

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Kelly Clarkson: 'I Refuse to Be Bullied' by Clive Davis

By Patrick Gomez

02/19/2013 at 06:00 PM EST

Kelly Clarkson; Clive Davis

Kevin Mazur/Wireimage; Dan Hallman/Invision/AP

Clive Davis may have made headlines by revealing his bisexuality in his new memoir, but Kelly Clarkson is more concerned about what he's written in regards to her career.

"I refuse to be bullied and I just have to clear up his memory lapses and misinformation," the recent Grammy winner wrote Tuesday on WhoSay. "It feels like a violation."

In his newly released memoir The Soundtrack of My Life, Davis recalls a meeting with Clarkson that was "a very tough conversation, and it didn't get any easier when Kelly burst in to hysterical sobbing," while discussing the inclusion of "Since U Been Gone" on her second album, Breakaway.

"Not true at all," Clarkson says. "His stories and songs are mixed up. I couldn't be more proud of that song. I resent him dampening that song in any way."

Clarkson goes on to state that she did cry in the meeting but not about "Since U Been Gone."

"I cried after I played him a song I had written about my life called 'Because of You,' " she says. "He hated it and told me verbatim that I was a 's–––ty writer who should be grateful for the gifts that he bestows upon me.' "

Davis recalls a completely different version of the "Because of You" conflict in his book, released Tuesday.

"In subsequent interviews Kelly said that she had to fight to get "Because of You" on the album, but that simply wasn't the case," Clive writes. "I have no idea where she heard that."

Despite the difference in memories, the engaged Clarkson remained positive in her blog.

"I love my job. I love my music. I love my fans," she says. "Growing up is awesome because you learn you don't have to cower to anyone – even Clive Davis."

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Drug overdose deaths up for 11th consecutive year

CHICAGO (AP) — Drug overdose deaths rose for the 11th straight year, federal data show, and most of them were accidents involving addictive painkillers despite growing attention to risks from these medicines.

"The big picture is that this is a big problem that has gotten much worse quickly," said Dr. Thomas Frieden, head of the Centers for Disease Control and Prevention, which gathered and analyzed the data.

In 2010, the CDC reported, there were 38,329 drug overdose deaths nationwide. Medicines, mostly prescription drugs, were involved in nearly 60 percent of overdose deaths that year, overshadowing deaths from illicit narcotics.

The report appears in Tuesday's Journal of the American Medical Association.

It details which drugs were at play in most of the fatalities. As in previous recent years, opioid drugs — which include OxyContin and Vicodin — were the biggest problem, contributing to 3 out of 4 medication overdose deaths.

Frieden said many doctors and patients don't realize how addictive these drugs can be, and that they're too often prescribed for pain that can be managed with less risky drugs.

They're useful for cancer, "but if you've got terrible back pain or terrible migraines," using these addictive drugs can be dangerous, he said.

Medication-related deaths accounted for 22,134 of the drug overdose deaths in 2010.

Anti-anxiety drugs including Valium were among common causes of medication-related deaths, involved in almost 30 percent of them. Among the medication-related deaths, 17 percent were suicides.

The report's data came from death certificates, which aren't always clear on whether a death was a suicide or a tragic attempt at getting high. But it does seem like most serious painkiller overdoses were accidental, said Dr. Rich Zane, chair of emergency medicine at the University of Colorado School of Medicine.

The study's findings are no surprise, he added. "The results are consistent with what we experience" in ERs, he said, adding that the statistics no doubt have gotten worse since 2010.

Some experts believe these deaths will level off. "Right now, there's a general belief that because these are pharmaceutical drugs, they're safer than street drugs like heroin," said Don Des Jarlais, director of the chemical dependency institute at New York City's Beth Israel Medical Center.

"But at some point, people using these drugs are going to become more aware of the dangers," he said.

Frieden said the data show a need for more prescription drug monitoring programs at the state level, and more laws shutting down "pill mills" — doctor offices and pharmacies that over-prescribe addictive medicines.

Last month, a federal panel of drug safety specialists recommended that Vicodin and dozens of other medicines be subjected to the same restrictions as other narcotic drugs like oxycodone and morphine. Meanwhile, more and more hospitals have been establishing tougher restrictions on painkiller prescriptions and refills.

One example: The University of Colorado Hospital in Aurora is considering a rule that would ban emergency doctors from prescribing more medicine for patients who say they lost their pain meds, Zane said.

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Stobbe reported from Atlanta.

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Online:

JAMA: http://www.jama.ama-assn.org

CDC: http://www.cdc.gov

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AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com

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M&A deals lift Wall Street shares nearer a record high

NEW YORK (Reuters) - U.S. stocks rose on Tuesday as this year's ongoing surge in merger activity suggested investors were still finding value in the market even as indexes closed in on all-time highs.

Office Depot Inc surged 9.4 percent to $5.02 after a person familiar with the matter said the No. 2 U.S. office supply retailer was in advanced talks to merge with smaller rival OfficeMax Inc , which jumped more than 20 percent.

News of the potential move came just days after Berkshire Hathaway and a partner agreed to acquire H.J. Heinz Co for $23 billion, and following a revised $20 billion takeover of Mexican brewer Grupo Modelo by Anheuser-Busch InBev .

Deal activity has helped equities resist a pullback as investors use dips in stocks as buying opportunities. The S&P is up about 7 percent so far in 2013 and has climbed for the past seven weeks in its longest weekly winning streak since January 2011, though most of the weekly gains have been slim.

The Dow industrials closed 0.9 percent away from their record high while S&P 500 was 2.2 percent off its peak.

"Deals are good for the market," said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago. "The fact that they're being done is a positive."

More than $158 billion in deals has been announced so far in 2013, more than double the activity in the same period last year and accounting for 57 percent of global deal volumes, according to Thomson Reuters Deals Intelligence.

The Dow Jones industrial average <.dji> gained 53.91 points, or 0.39 percent, to 14,035.67. The Standard & Poor's 500 Index <.spx> gained 11.15 points, or 0.73 percent, to 1,530.94. The Nasdaq Composite Index <.ixic> gained 21.56 points, or 0.68 percent, to 3,213.59.

Other stocks in the office supplies sector also rose. Larger rival Staples Inc shot up 13.1 percent to $14.65 as the best performer on the S&P 500.

"Equity investors have to be encouraged by M&A since, if the number crunchers are offering large premiums, that shows how much value is still in the market," said Mike Gibbs, co-head of the equity advisory group at Raymond James in Memphis, Tennessee.

On the downside, health insurance stocks tumbled, led by a 6.4 percent drop in Humana Inc to $73.01. The company said the government's proposed 2014 payment rates for Medicare Advantage participants were lower than expected and would hurt its profit outlook.

UnitedHealth Group lost 1.2 percent to $56.66. The Morgan Stanley healthcare payor index <.hmo> dropped 1.2 percent.

Wall Street's strong start to the year was fueled by better-than-expected corporate earnings, as well as a compromise in Washington that temporarily averted automatic spending cuts and tax hikes that are predicted to damage the economy.

The compromise on across-the-board spending cuts postponed the matter until March 1, at which point the cuts take effect. Ahead of the debate over the cuts, known as sequestration, further gains for stocks may be difficult to come by.

Some investors say the debate could be the catalyst for a long anticipated sell-off after the market's recent strong run.

Carter Worth, a technical analyst at Oppenheimer, pointed to the "especially complacent action of the past six weeks," noting that, as of Friday, stocks have gone 33 sessions without a dip of more than 1.5 percent.

"We would be selling aggressively into the market's current strength," he said in a research note.

Economic data showed the NAHB/Wells Fargo Housing Market index unexpectedly edged down to 46 in February from 47 in the prior month as builders faced higher material costs.

According to the Thomson Reuters data through Monday morning, of the 391 companies in the S&P 500 that have reported results, 70.1 percent have exceeded analysts' expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters.

Fourth-quarter earnings for S&P 500 companies have risen 5.6 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

Express Scripts rose 2.5 percent to $56.98 after the pharmacy benefits manager posted fourth-quarter earnings.

About two stocks rose for everyone that fell on the New York Stock Exchange and Nasdaq. About 6.48 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, in line with the daily average so far this year.

(Additional reporting by Chuck Mikolajczak Ryan Vlastelica and Rodrigo Campos; Editing by Chizu Nomiyama, Kenneth Barry and Nick Zieminski)

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As Assad Holds Firm, Obama Could Revisit Arms Policy

Reuters

A member of the Free Syrian Army inside a weapons factory in Aleppo on Monday. President Obama has decided against providing arms to rebels in the past.

WASHINGTON — When President Obama rebuffed four of his top national security officials who wanted to arm the rebels in Syria last fall, it put an end to a months-long debate over how aggressively Washington should respond to the strife there that has now left nearly 70,000 dead.

But the decision also left the White House with no clear strategy to resolve a crisis that has bedeviled it since a popular uprising erupted against President Bashar al-Assad almost two years ago. Despite an American program of nonlethal assistance to opponents of the Syrian government and $365 million in humanitarian aid, Mr. Obama appears to be running out of options to speed Mr. Assad’s exit.

With conditions continuing to deteriorate, officials said, the president could reopen the question of whether to provide weapons to select members of the resistance in an effort to break the impasse in Syria. The question is whether a wary Mr. Obama, surrounded by a new national security team, would come to a different conclusion.

“This is not a closed decision,” a senior administration official insisted. “As the situation evolves, as our confidence increases, we might revisit it.”

Mr. Obama’s refusal to provide arms when the proposal was broached before the November election, officials said, was driven by his reluctance to get drawn into a proxy war and his fear that the weapons would end up in unreliable hands, where they could be used against civilians or Israeli and American interests.

As the United States struggles to formulate a policy, however, Mr. Assad has given no sign that he is ready to yield power, and the Syrian resistance is adamant that it will not negotiate a transition in which he has a role. Mr. Obama, in his State of the Union address, did not repeat his oft-stated confidence that Mr. Assad’s days are numbered.

Even if Mr. Assad was overthrown, the convulsion could fragment Syria along sectarian and ethnic lines, each supported by competing outside powers, said Paul Salem, who runs the Beirut-based Middle East office for the Carnegie Endowment for International Peace. “Syria,” he said, “is in the process, not of transitioning, but disintegrating.”

The State Department has funneled $50 million of nonlethal assistance to the Syrian opposition, including satellite telephones, radios, broadcasting equipment, computers, survival equipment and the training in how to use them. This support, officials say, has helped Syrians opposed to the Assad regime communicate with one another and the outside world, despite efforts by Syrian forces to target rebel communications using Iranian-supplied equipment. A Syria-wide FM radio network is to connect broadcasting operations in several cities in the next several days. The State Department has also helped train local councils in areas that have freed from the Syrian government’s control.

But the State Department does not provide non-lethal assistance to armed rebel factions. This has greatly limited the influence the United States has with armed groups that are likely to control much of Syria if Mr. Assad is ousted.

“The odds are very high that, for better or worse, armed men will determine Syria’s course for the foreseeable future,” said Frederic C. Hof, a former senior State Department official and a senior fellow at the Atlantic Council. “For the U.S. not to have close, supportive relationships with armed elements, carefully vetted, is very risky.”

Because units of the anti-Assad Free Syria Army have captured prisoners and detained criminals in the areas they control, Mr. Hof said, it is essential that either the United States or an ally train rebel staff officers in judicial procedures and make them sensitive to human rights concerns.

While the White House has focused on the risks of providing weapons, other nations have had no such reservations. Russia has continued to provide arms and financial support to the Assad government. Iran has supplied the regime with weapons and Quds Force advisers. Hezbollah has sent militants to Syria to help Mr. Assad’s forces. On the other side of the struggle, anti-government Qaeda-affiliated fighters have been receiving financial and other support from their backers in the Middle East.

The arming plan that was considered last year originated with David H. Petreaus, then the director of the Central Intelligence Agency, and was supported by former Secretary of State Hillary Rodham Clinton. The goal was to create allies in Syria with whom the United States could work during the conflict and if Mr. Assad was removed from power. Each had their reasons for supporting it.

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Mindy McCready: Under Police Scrutiny at Time of Suicide?

By Steve Helling and Mike Fleeman

02/18/2013 at 06:00 PM EST

Mindy McCready and David Wilson

Courtesy Mindy McCready

When Mindy McCready talked to police in recent weeks, her account of how her boyfriend came to be found with a fatal gunshot wound to the head concerned police, a law enforcement source tells PEOPLE.

"At first, she said she hadn't heard the gunshot because the TV was too loud. Then she said she had heard the gunshot," the source says. "So obviously there were a lot of questions, and the Sheriff was asking for clarification."

But before investigators could re-interview her, the long-troubled country singer also would die under eerily similar circumstances, her body discovered at the same Heber Springs, Ark., house just feet away from where David Wilson died.

McCready's death was blamed on what "appears to be a single self-inflicted gunshot wound," the Cleburne County Sheriff's Office said in a statement.

This differed from how the sheriff characterized Wilson's case. His cause and manner of death still have not been established by the coroner. It was McCready's publicist, and not a law enforcement official, who announced that Wilson had died of a self-inflicted gunshot wound.

After Wilson's death, McCready, 37, spoke to investigators three times, but they didn't feel as if they were through with her.

"At no point did [police] tell her she was a suspect, and she wasn't officially one," says the source. "But she knew that some of her answers didn't stand up to questioning. She was very cooperative, but she just wasn't making a lot of sense."

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Hip implants a bit more likely to fail in women

CHICAGO (AP) — Hip replacements are slightly more likely to fail in women than in men, according to one of the largest studies of its kind in U.S. patients. The risk of the implants failing is low, but women were 29 percent more likely than men to need a repeat surgery within the first three years.

The message for women considering hip replacement surgery remains unclear. It's not known which models of hip implants perform best in women, even though women make up the majority of the more than 400,000 Americans who have full or partial hip replacements each year to ease the pain and loss of mobility caused by arthritis or injuries.

"This is the first step in what has to be a much longer-term research strategy to figure out why women have worse experiences," said Diana Zuckerman, president of the nonprofit National Research Center for Women & Families. "Research in this area could save billions of dollars" and prevent patients from experiencing the pain and inconvenience of surgeries to fix hip implants that go wrong.

Researchers looked at more than 35,000 surgeries at 46 hospitals in the Kaiser Permanente health system. The research, published Monday in JAMA Internal Medicine, was funded by the U.S. Food and Drug Administration.

After an average of three years, 2.3 percent of the women and 1.9 percent of the men had undergone revision surgery to fix a problem with the original hip replacement. Problems included instability, infection, broken bones and loosening.

"There is an increased risk of failure in women compared to men," said lead author Maria Inacio, an epidemiologist at Southern California Permanente Medical Group in San Diego. "This is still a very small number of failures."

Women tend to have smaller joints and bones than men, and so they tend to need smaller artificial hips. Devices with smaller femoral heads — the ball-shaped part of the ball-and-socket joint in an artificial hip — are more likely to dislocate and require a surgical repair.

That explained some, but not all, of the difference between women and men in the study. It's not clear what else may have contributed to the gap. Co-author Dr. Monti Khatod, an orthopedic surgeon in Los Angeles, speculated that one factor may be a greater loss of bone density in women.

The failure of metal-on-metal hips was almost twice as high for women than in men. The once-popular models were promoted by manufacturers as being more durable than standard plastic or ceramic joints, but several high-profile recalls have led to a decrease in their use in recent years.

"Don't be fooled by hype about a new hip product," said Zuckerman, who wrote an accompanying commentary in the medical journal. "I would not choose the latest, greatest hip implant if I were a woman patient. ... At least if it's been for sale for a few years, there's more evidence for how well it's working."

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Online:

Journal: http://www.jamainternalmed.com

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Yen resumes fall after G20, U.S. holiday thins trade

LONDON (Reuters) - The yen resumed falling on Monday after Japan signaled it would push ahead with expansionist monetary policies having escaped criticism from the world's 20 biggest economies at the weekend.

Industrial metals also dipped and European shares were soft on lingering worries about the economic outlook, especially for the euro zone. While the risk of an inconclusive outcome in Italy's forthcoming election added to investor concerns.

However, activity was curtailed by the closure of markets in the United States for the Presidents' Day holiday.

The yen, which has dropped 20 percent against the dollar since mid-November, fell further after financial leaders from the G20 promised not to devalue their currencies to boost exports and avoided singling out Japan for any direct criticism.

The dollar rose 0.5 percent to 93.95 yen, near a 33-month peak of 94.47 yen set a week ago. The euro added 0.3 percent to 125.40 yen, to be midway between Friday's two-week low of 122.90 and a 34-month high of 127.71 yen hit earlier this month.

Strategists said the yen was likely to stay weak, though its decline could lose momentum until it becomes clear who will be taking the helm at the Bank of Japan when the current governor steps down on March 19.

"The yen probably will weaken a little further in anticipation of more aggressive easing under a new leadership team at the Bank of Japan," said Julian Jessop, chief global economist at Capital Economics.

Japan's Prime Minister Shinzo Abe is poised to nominate the new governor in the next few days. Sources have told Reuters that former financial bureaucrat Toshiro Muto, considered likely to be less radical than other candidates, was leading the field.

Meanwhile the euro dipped slightly against the dollar when European Central Bank president Mario Draghi said the currency's recent gains made any rise in inflation less likely and added that he had yet to see any improvement in the euro zone economy.

Speaking before the European Parliament, Draghi said the euro's exchange rate was not a policy target but was important for growth and stability, adding that appreciation of the euro "is a risk".

The comments left the euro down 0.2 percent at $1.3334.

Elsewhere in the currency market, sterling hit a seven-month low against the dollar, after a key policymaker made comments about the need for further weakness and recent poor data which has kept alive worries of another British recession.

Sterling fell 0.25 percent to $1.5476 having earlier touched $1.5438, its lowest since July 13.

DATA LOOMS

A big week for data on the outlook for the world's economy weighed on other riskier asset markets following the recent dire fourth-quarter growth numbers for the euro zone and Japan, along with Friday's soft U.S. manufacturing figures.

In European markets, attention is focused on the euro area Purchasing Managers' Indexes for February and German sentiment indices due later in the week which could affect hopes for a recovery this year.

Analysts expect Thursday's euro area flash PMI indices, which offer pointers to economic activity around six months out, to show growth stabilizing across the recession-hit region, leaving intact hopes for a recovery in the second half of 2013.

Concerns over an inconclusive outcome in the Italian election on Sunday and Monday have added to the weaker sentiment as a fragmented parliament could hamper a future government's efforts to reform the struggling economy.

The worries about the outlook for Italy were encouraging investors back into safe-haven German government bonds on Monday, with 10-year Bund yields easing 3.5 basis points to be around 1.63 percent.

"Political uncertainty will keep Bunds well bid this week," ING rate strategist Alessandro Giansanti said, adding that only better than expected economic data could create selling pressure on German debt in the near term.

Italian 10-year yields were 4 basis points higher on the day at 4.41 percent.

EARNINGS HIT

European equity markets were taking their lead from corporate earnings reports which have been reflecting the sluggish economic conditions across the region.

Danish brewer Carlsberg , which generates just over 60 percent of its sales in western Europe, became the latest to report a weaker-than-expected quarterly profit, sending its shares to their lowest level in almost a month.

The 5.8-percent drop for shares in the world's fourth biggest brewery helped send the FTSEurofirst 300 index <.fteu3> of top European shares down 0.2 percent. Germany's DAX <.gdaxi>, France's CAC-40 <.fchi> and Britain's FTSE-100 <.ftse> ranged between 0.4 percent up and 0.15 percent lower.

Earlier, the G20 statement and subsequent comment from Prime Minster Abe indicating a renewed drive to stimulate the Japanese economy lifted the Nikkei stock index <.n225> by 2.1 percent, near to its highest level since September 2008.

MSCI's world equity index <.miwd00000pus> was flat as markets extended a two-week period of consolidation that has followed the big run-up in January, when demand was buoyed by the efforts of central banks to stimulate the world economy.

Data from EPFR Global, a U.S.-based firm that tracks the flows and allocations of funds globally, shows investors pulled $3.62 billion from U.S. stock funds in the latest week, the most in 10 weeks after taking a neutral stance the prior week.

But demand for emerging market equities remained strong, with investors putting $1.81 billion in new cash into stock funds, the fund-tracking firm said.

CHINA RETURN

In the commodity markets, traders played catch-up after a week-long holiday last week in China, the world's second biggest consumer of many raw materials, which had kept activity subdued, with worries about the economic outlook weighing on sentiment.

Copper, for which China is the world's largest consumer, dipped to a near three-week low at $8,125.25 a metric ton (1.1023 tons) on the London futures market. Benchmark tin and nickel also touched three-week lows.

Gold managed to edge away from six-month lows as jewelers in China returned to the physical market after the Lunar New Year holiday but a lack of demand from U.S. markets saw the precious metal slip back to be down 0.1 percent to $1,607.06 an ounce.

Crude oil markets were mostly steady after the weak U.S. industrial production data on Friday [ID:nL1N0BF44A] was seen dampening demand, while tensions in the Middle East lent some support.

"We continue to see a mixed picture out of the United States. Industry output was lower than expected but that shouldn't affect the general upward direction," Olivier Jakob, analyst at Geneva-based Petromatrix, said.

Brent crude was down 20 cents at $117.46 a barrel after posting its first weekly loss since the first half of January. U.S. crude slipped 24 cents to $95.62.

(Additional reporting by Marius Zaharia and Ron Bousso; Editing by Philippa Fletcher and Alastair Macdonald)

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Death Toll Grows in Pakistan Explosion

Agence France-Presse — Getty Images

A bomb killed scores of people on Saturday at a market in Quetta, Pakistan, in a Shiite minority neighborhood.

ISLAMABAD, Pakistan — Hundreds of Shiite women staged a sit-in in the western city of Quetta on Sunday evening to mourn the 84 people who were killed in an explosion a day earlier in a crowded market there, and they demanded that the government arrest the attackers.

Grieving relatives declined to bury their dead until the government promised to track down those responsible for carrying out brazen attacks against Hazaras, a Shiite ethnic minority, in the city.

Government officials said a team, led by a high-ranking police official, was investigating.

Protests and sit-ins were also held in other major cities on Sunday, as Shiite leaders condemned the government’s inability of the government to curb the killings.

The attack on Saturday took place in Hazara Town, one of two enclaves in Quetta for Hazaras, who have suffered numerous attacks at the hands of Sunni death squads in recent years.

The police said that explosives were hidden in a water-supply truck. It remained unclear how the truck had managed to enter the busy market, avoiding detection by police and intelligence specialists. The police said the bomb was apparently set off by a remote-controlled device, possibly hidden in a rickshaw. The explosion caused a building to collapse, and three other structures were heavily damaged.

Shiite leaders have also called for a strike in Karachi, the southern port city, on Monday. The Muttahida Qaumi Movement, Karachi’s most powerful political party, said it would support a strike.

The growing sense of insecurity and vulnerability felt by Shiites was evident in angry speeches by leaders across the country on Sunday.

Allama Asghar Askari, a Shiite leader, sharply criticized the country’s law enforcement authorities at a rally here in the nation’s capital. “If the law-enforcement forces had targeted the militant strongholds with real intent, people would not have seen such a day,” Mr. Askari said to hundreds of protesters. One was holding up a placard that said “Stop Shiite genocide.”

Some Shiites have suggested that Army troops should be sent to Quetta to quell the sectarian violence, but for now neither the government nor the military has given any indication of a deployment.

The police in Quetta and the Frontier Corps, a provincial paramilitary force, have come under heavy criticism as violence has escalated and militants belonging to Lashkar-e-Jhangvi, the largest sectarian group, have targeted Shiites with impunity in Baluchistan Province, where Quetta is the capital.

“Militants term Hazaras as ‘impure’ and have vowed to ‘cleanse Quetta of their presence,’ ” Tahir Hussain, the city’s representative for the Human Rights Commission of Pakistan, said in an interview.

The killings have forced at least 20,000 Hazaras to leave the city, Mr. Hussain said, adding that militants have a heavy presence in the Mastung district of Baluchistan Province. More than 300 Shiites, many of them Hazaras, have been killed in Baluchistan since 2008, according to Human Rights Watch.

The Frontier Corps and the police have shown little willingness to clamp down on militant strongholds in Mastung, Mr. Hussain said.

“They know who are the perpetrators,” he said. “But apart from giving empty assurances, the high-ups of law-enforcement have not done anything.”

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