Longer tamoxifen use cuts breast cancer deaths

Breast cancer patients taking the drug tamoxifen can cut their chances of having the disease come back or kill them if they stay on the pills for 10 years instead of five years as doctors recommend now, a major study finds.

The results could change treatment, especially for younger women. The findings are a surprise because earlier research suggested that taking the hormone-blocking drug for longer than five years didn't help and might even be harmful.

In the new study, researchers found that women who took tamoxifen for 10 years lowered their risk of a recurrence by 25 percent and of dying of breast cancer by 29 percent compared to those who took the pills for just five years.

In absolute terms, continuing on tamoxifen kept three additional women out of every 100 from dying of breast cancer within five to 14 years from when their disease was diagnosed. When added to the benefit from the first five years of use, a decade of tamoxifen can cut breast cancer mortality in half during the second decade after diagnosis, researchers estimate.

Some women balk at taking a preventive drug for so long, but for those at high risk of a recurrence, "this will be a convincer that they should continue," said Dr. Peter Ravdin, director of the breast cancer program at the UT Health Science Center in San Antonio.

He reviewed results of the study, which was being presented Wednesday at a breast cancer conference in San Antonio and published by the British medical journal Lancet.

"The result of this trial will have a major, immediate impact on premenopausal women," Ravdin said.

About 50,000 of the roughly 230,000 new cases of breast cancer in the United States each year occur in women before menopause. Most breast cancers are fueled by estrogen, and hormone blockers are known to cut the risk of recurrence in such cases.

Tamoxifen long was the top choice, but newer drugs called aromatase inhibitors — sold as Arimidex, Femara, Aromasin and in generic form — do the job with less risk of causing uterine cancer and other problems.

But the newer drugs don't work well before menopause. Even some women past menopause choose tamoxifen over the newer drugs, which cost more and have different side effects such as joint pain, bone loss and sexual problems.

The new study aimed to see whether over a very long time, longer treatment with tamoxifen could help.

Dr. Christina Davies of the University of Oxford in England and other researchers assigned 6,846 women who already had taken tamoxifen for five years to either stay on it or take dummy pills for another five years.

Researchers saw little difference in the groups five to nine years after diagnosis. But beyond that time, 15 percent of women who had stopped taking tamoxifen after five years had died of breast cancer versus 12 percent of those who took it for 10 years. Cancer had returned in 25 percent of women on the shorter treatment versus 21 percent of those treated longer.

Tamoxifen had some troubling side effects: Longer use nearly doubled the risk of endometrial cancer. But it rarely proved fatal, and there was no increased risk among premenopausal women in the study — the very group tamoxifen helps most.

"Overall the benefits of extended tamoxifen seemed to outweigh the risks substantially," Dr. Trevor Powles of the Cancer Centre London wrote in an editorial published with the study.

The study was sponsored by cancer research organizations in Britain and Europe, the United States Army, and AstraZeneca PLC, which makes Nolvadex, a brand of tamoxifen, which also is sold as a generic for 10 to 50 cents a day. Brand-name versions of the newer hormone blockers, aromatase inhibitors, are $300 or more per month, but generics are available for much less.

The results pose a quandary for breast cancer patients past menopause and those who become menopausal because of their treatment — the vast majority of cases. Previous studies found that starting on one of the newer hormone blockers led to fewer relapses than initial treatment with tamoxifen did.

Another study found that switching to one of the new drugs after five years of tamoxifen cut the risk of breast cancer recurrence nearly in half — more than what was seen in the new study of 10 years of tamoxifen.

"For postmenopausal women, the data still remain much stronger at this point for a switch to an aromatase inhibitor," said that study's leader, Dr. Paul Goss of Massachusetts General Hospital. He has been a paid speaker for a company that makes one of those drugs.

Women in his study have not been followed long enough to see whether switching cuts deaths from breast cancer, as 10 years of tamoxifen did. Results are expected in about a year.

The cancer conference is sponsored by the American Association for Cancer Research, Baylor College of Medicine and the UT Health Science Center.

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

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Dow, S&P rebound on banks, but Nasdaq sours with Apple

NEW YORK (Reuters) - Stocks mostly rose on Wednesday, boosted by a rally in bank shares, though a steep drop in Apple limited the advance and kept the Nasdaq in negative territory.

Trading was volatile, with the S&P 500 dropping into negative territory at one point and the Nasdaq falling more than 1 percent before rebounding. The Dow, which doesn't contain Apple Inc as a component, climbed 1 percent by midday.

Apple, the largest U.S. company by market capitalization and a big weight in both the S&P 500 and the Nasdaq, fell 4.7 percent to $548.88. Apple is down more than 22 percent from an all-time high reached in late September.

The S&P 500 reversed course after briefly falling below the 1,400 level, seen as a key support point over the past two weeks.

"There's still psychological interest in buying the market," said John Brady, managing director at R.J. O'Brien & Associates in Chicago. At the 1,400 level, "we find again ‘dip buyers' there. They strongly believe a deal (on the fiscal cliff) is going to get done."

For several weeks, investors have reacted quickly to whiffs of sentiment from Washington in headlines about negotiations between the White House and congressional leaders over a deal on how to avoid the "fiscal cliff" - a series of mandatory spending cuts and tax increases effective in early January that could push the U.S. economy into recession next year.

President Barack Obama told the Business Roundtable, a group of chief executives, on Wednesday that a fiscal cliff deal was possible "in about a week" if Republicans acknowledged the need to raise taxes on the wealthiest Americans.

The Dow Jones industrial average <.dji> was up 115.44 points, or 0.89 percent, at 13,067.22. The Standard & Poor's 500 Index <.spx> was up 5.71 points, or 0.41 percent, at 1,412.76. But the Nasdaq Composite Index <.ixic> was down 13.75 points, or 0.46 percent, at 2,982.94.

Apple's slide weighed heavily on the Nasdaq. Market participants cited a host of reasons for the drop in the iPad maker's stock, including a consultant's report about the company losing share in the tablet market and reports that margin requirements had been raised by at least one clearing firm.

Apple has "to hit another home run to get $700 again," said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago. "They need another new product that hits it out of the park. Without that, they could get a gradual grind-down in confidence ... this is not going to be a short-term trend."

On the upside, The Travelers Cos Inc rose 5.1 percent to $74.111 and ranked as the Dow's top gainer after the property and casualty insurance company said its preliminary estimate of net losses from Superstorm Sandy was about $650 million after tax.

Banks were also strong, with the S&P financial sector index <.gspf> climbing 1.5 percent. The rally was led by a 7.3 percent climb in Citigroup to $36.79 after the company said it would cut 4 percent of its workforce in a cost-cutting move. The KBW Bank Index <.bkx> rose 2 percent.

Bank of America shares shot up 6.1 percent to $10.51, just a touch off a new 52-week high at $10.52.

Freeport-McMoRan Copper & Gold Inc fell 15.2 percent to $32.47 as the S&P 500's biggest percentage decliner. The company said it was acquiring Plains Exploration & Production Co and McMoRan Exploration Co in two separate deals for $9 billion in cash and stock in a major expansion into energy.

McMoRan Exploration soared 83.6 percent to $15.53 and Plains Exploration & Production surged 24.4 percent to $44.83.

Economic data from payrolls processor ADP showed U.S. private-sector hiring took a hit in November due to the impact of Superstorm Sandy, which ravaged consumers and businesses in the Northeastern United States, but the huge services sector kept expanding albeit at a modest pace, according to the Institute for Supply Management.

(Additional reporting by Rodrigo Campos; Editing by Jan Paschal)

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Chancellor Angela Merkel of Germany Opens Campaign for a Third Term

BERLIN — Angela Merkel began her campaign for re-election on Tuesday with a display of the down-to-earth pragmatism that has helped make her immensely popular among Germans and well positioned to win a third term as chancellor next year.

Wielding two bouquets of bright orange flowers after delegates in her center-right Christian Democratic Union elected her to a seventh term as their party leader with a record 97.9 percent of the votes, Ms. Merkel took the podium and thanked the cheering crowd.

“Those who know me know that I’m overwhelmed and touched,” she said. “And now, let’s get to work. We have a lot to do.”

With overall approval ratings close to 70 percent, Ms. Merkel, a 58-year-old daughter of a Lutheran pastor who grew up in East Germany, is viewed as being at the height of her powers. Surveys show her comfortably ahead of her closest rival, Peer Steinbrück of the center-left Social Democrats, before parliamentary elections next September.

Analysts point to her combination of pragmatism and readiness to compromise the driving force behind her popularity. Nils Diederich, a professor of political science at the Free University of Berlin, said Ms. Merkel had succeeded in shifting her party away from its traditionalist ideology, making it more attractive to mainstream Germans. In addition, she has shepherded her country through Europe’s worst economic crisis in recent history and into a leadership role.

“During Ms. Merkel’s tenure, she has led Germany into a position of greater strength than it has ever known,” Mr. Diederich said. “Ms. Merkel has shown people that we have nothing to hide.”

That confidence was on display in the chancellor’s speech to delegates, who gathered on Tuesday for a two-day congress in the central city of Hanover. She praised her government as the country’s most successful since its postwar reunification in 1990, despite the challenges it faces.

“These are turbulent times, and sometimes we find ourselves in stormy waters,” Ms. Merkel said. She went on to highlight her government’s successes, including low unemployment and economic stability in the face of the economic crisis crippling much of the rest of Europe.

“In such times, no other government could lead the country as successfully as our conservative-liberal coalition,” Ms. Merkel told members.

In spite of the fact that the chancellor is personally popular, her government — an alliance of her own conservative Christian Democratic Union with the sister party for the state of Bavaria, the Christian Social Union, and the pro-business Free Democrats — is not.

Recent months have seen the Free Democrats bleeding support, opening the discussion for other possible alliances, with a so-called grand coalition of Ms. Merkel’s conservatives and the Social Democrats — a combination that Ms. Merkel governed during her first term as chancellor, from 2005 to 2009.

Increasingly the talk has been about whether the country’s traditional conservative party would form an alliance with the more left-leaning and environmentalist Green party, which earned about 15 percent support in a survey released Tuesday by the polling group Insa.

Ms. Merkel’s conservatives earned 35 percent, placing them in the strongest position, but requiring they find a coalition partner, according to the poll published in the Bild newspaper.

For the first time in weeks, the poll showed the Free Democrats earning 5 percent support, enough to secure representation in Parliament, making them available to form a coalition.

Nevertheless, the chancellor is keeping her options open. In a playful dig at her coalition partner, Ms. Merkel drew laughs from the crowd by citing a recent satire as saying, “Perhaps God created the F.D.P. only to test us.”

Compared with all other possible constellations from Germany’s political scene, Ms. Merkel said nevertheless that the current government of conservatives and economic liberals had the most in common.

“We share common values and principles,” she said. “And these are the values and principles that we need to successfully overcome today’s challenges.”

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China goes crazy for iPhone 5: Preorders hit 100,000 units in under 24 hours

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Frankie Muniz Recovering from a 'Mini-Stroke'

By Mike Fleeman

12/04/2012 at 03:50 PM EST

Malcolm's in the middle of a health scare.

Former child star Frankie Muniz is recovering from "mini-stroke" that sent him to the hospital last Friday.

Muniz, who turns 27 on Wednesday, tells his Twitter followers that the experience was "not fun at all."

"Have to start taking care of my body!" he writes. "Getting old!"

Muniz provided no more details. But a "mini-stroke" is commonly used to describe a transient ischemic attack, or TIA, when blood temporarily stops reaching the brain, causing stroke-like symptoms for one to 24 hours.

Doctors believe a TIA can be a warning sign for a possible full stroke in the future without preventative measures.

Muniz grew up in front of TV audiences on Malcolm in the Middle from 2000 to 2006. He's moved on to racecar driving and music – he drums for the band Kingsfoil – though recently made a cameo on Don't Trust the B---- in Apartment 23.

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CDC says US flu season starts early, could be bad

NEW YORK (AP) — Flu season in the U.S. is off to its earliest start in nearly a decade — and it could be a bad one.

Health officials on Monday said suspected flu cases have jumped in five Southern states, and the primary strain circulating tends to make people sicker than other types. It is particularly hard on the elderly.

"It looks like it's shaping up to be a bad flu season, but only time will tell," said Dr. Thomas Frieden, director of the Centers for Disease Control and Prevention.

The good news is that the nation seems fairly well prepared, Frieden said. More than a third of Americans have been vaccinated, and the vaccine formulated for this year is well-matched to the strains of the virus seen so far, CDC officials said.

Higher-than-normal reports of flu have come in from Alabama, Louisiana, Mississippi, Tennessee and Texas. An uptick like this usually doesn't happen until after Christmas. Flu-related hospitalizations are also rising earlier than usual, and there have already been two deaths in children.

Hospitals and urgent care centers in northern Alabama have been bustling. "Fortunately, the cases have been relatively mild," said Dr. Henry Wang, an emergency medicine physician at the University of Alabama at Birmingham.

Parts of Georgia have seen a boom in traffic, too. It's not clear why the flu is showing up so early, or how long it will stay.

"My advice is: Get the vaccine now," said Dr. James Steinberg, an Emory University infectious diseases specialist in Atlanta.

The last time a conventional flu season started this early was the winter of 2003-04, which proved to be one of the most lethal seasons in the past 35 years, with more than 48,000 deaths. The dominant type of flu back then was the same one seen this year.

One key difference between then and now: In 2003-04, the vaccine was poorly matched to the predominant flu strain. Also, there's more vaccine now, and vaccination rates have risen for the general public and for key groups such as pregnant women and health care workers.

An estimated 112 million Americans have been vaccinated so far, the CDC said. Flu vaccinations are recommended for everyone 6 months or older.

On average, about 24,000 Americans die each flu season, according to the CDC.

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

A strain of swine flu that hit in 2009 caused a wave of cases in the spring and then again in the early fall. But that was considered a unique type of flu, distinct from the conventional strains that circulate every year.

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Online:

CDC: http://www.cdc.gov/flu/weekly

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Wall Street flat on lack of "fiscal cliff" progress

NEW YORK (Reuters) - Stocks fluctuated between small gains and losses on Tuesday after remarks by President Barack Obama on budget talks dented optimism a solution could be found to prevent the economy from falling into recession.

Obama rejected a Republican proposal to resolve a looming fiscal crisis as "still out of balance" and said any deal must include a rise in income tax rates on the wealthiest Americans.

Obama spoke in an interview with Bloomberg Television.

Republicans in Congress proposed steep spending cuts to bring down the budget deficit on Monday but gave no ground on Obama's call to raise tax rates on the rich. The proposal was quickly dismissed by the White House.

"We have more of the same and what that really means is that you see very public negotiations that seem to be going nowhere," said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.

"If there was any conviction that this was going to be a done deal, that we are going to see some really positive resolution on this fiscal cliff, you would see some real activity in the market."

The market has been sensitive to rhetoric from Washington, and many investors still expect the two sides eventually will reach a deal before the year's end, which could trigger a rally in equities.

Obama meets with U.S. governors at the White House on Tuesday to talk about the fiscal cliff, a $600 billion package of tax hikes and federal spending cuts that would begin January 1.

Volume was light, with about 3.34 billion shares traded on the New York Stock Exchange, NYSE MKT and Nasdaq.

Differences within the Republican Party over how to engage with the Democrats came to the fore on Tuesday as one senator opposed to raising taxes lashed out at House Speaker and fellow Republican John Boehner for proposing to increase revenue by closing some tax loopholes.

Despite the sudden moves in the market, a measure of investor anxiety has held surprisingly flat.

The CBOE volatility index <.vix>, a gauge of market anxiety, was at 17.36 but has not traded above 20 since July following its 2012 high near 28 hit in June. The VIX's 10-day Average True Range, an internal volatility measure, is at its lowest since early 2007.

Coach became the latest company to advance the date of its next dividend payment. Expectations of higher taxes on dividends kicking in in 2013 have pushed many companies to pay special dividends this year or advance their next pay-back to investors. Shares of the upscale leather-goods maker declined 2 percent to $57.06.

The Dow Jones industrial average <.dji> added 16.60 points, or 0.13 percent, to 12,982.20. The Standard & Poor's 500 Index <.spx> dropped 0.27 point, or 0.02 percent, to 1,409.19. The Nasdaq Composite Index <.ixic> dipped 3.81 points, or 0.13 percent, to 2,998.39.

Darden Restaurants Inc plunged 10.3 percent to $47.04 as the worst performer on the S&P 500 after warning its latest quarter would miss expectations after unsuccessful promotions led to a decline in sales at its Olive Garden, Red Lobster and LongHorn Steakhouse chains.

In contrast, Big Lots Inc surged 13.8 percent to $31.95 after the close-out retailer posted a smaller-than-expected loss and boosted its full-year adjusted earnings forecast.

Toll Brothers shares gained 1.1 percent to $32.80 after the largest U.S. luxury homebuilder reported a higher quarterly profit and said new orders rose sharply.

MetroPCS Communications shares tumbled 7.2 percent to $10.00 after Sprint Nextel appeared unlikely to make a counter-offer for the wireless service provider.

Shares of Pep Boys-Manny Moe and Jack slid 13.5 percent at $9.24 a day after the release of the auto parts retailer's results.

(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)

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DealBook: UBS Described as Near Deal With U.S. and Britain on Rate Rigging

UBS, the Swiss banking giant, is close to reaching settlements with American and British authorities over the manipulation of interest rates, the latest case in a multiyear investigation that has rattled the financial industry and spurred a public outcry for broad reform.

UBS is expected to pay more than $450 million to settle claims that some employees reported false rates to increase the bank’s profit, according to officials briefed on the matter who spoke on the condition of anonymity because the talks were private.

If the bank agrees to the deals with various authorities, the collective penalties would yield the largest total fines to date related to the rate-rigging inquiry and would increase the likelihood that other financial institutions would face stiff penalties. Authorities dealt their first blow in the rate-rigging case in June when the British bank Barclays agreed to a $450 million settlement.

A spokeswoman for UBS declined to comment. The agencies leading the UBS investigation, the Commodity Futures Trading Commission, the Justice Department and Britain’s Financial Services Authority, also declined to comment.

The UBS case will provide a window into systemic problems in the rate-setting process, which affects how consumers and companies borrow money around the world. After reviewing thousands of internal bank e-mails and interviewing dozens of employees, the authorities have uncovered patterns of abuse at the major banks that help set benchmark interest rates.

Libor Explained

The sprawling investigation is focused on benchmarks like the London interbank offered rate, or Libor. The rate, a measure of how much banks charge each other for loans, is used to determine the costs of trillions of dollars of mortgages, credit card charges and student loans.

The authorities claim that UBS traders colluded with rival banks to influence rates in an effort to bolster their profits, according to officials briefed on the matter. Some traders at UBS were suspended this year over the matter.

Given the scope of the case, the UBS settlement is expected to heighten calls for a reform of the Libor system. Lawmakers are pushing to change the way banks report rates, providing more transparency to consumers, companies and investors that rely on the benchmark.

The reform movement gained momentum after global authorities secured the settlement with Barclays. Regulators had accused Barclays of reporting false rates, a scandal that prompted the resignation of the chief executive and other top officials at the bank.

Global authorities are now moving forward with civil and criminal cases, setting up the potential for major fines and regulatory sanctions. Some banks are in advanced settlement talks, including UBS and the Royal Bank of Scotland. The Royal Bank said it expected to disclose penalties before the firm’s next earnings release in February. Deutsche Bank said last month that it had set aside money to cover potential fines, although it was too early to predict the size.

American authorities are hoping to complete a deal with UBS by the middle of the month, according to officials briefed on the matter. The officials noted that the discussions could spill into next year. The talks could also break down, in which case the authorities would file a lawsuit against the bank.

It is unclear whether global authorities will act in tandem on the UBS case. The bank and the regulators would prefer to strike a deal together, but the agencies are proceeding at different speeds.

Investigators say the broader Libor case could go on for years.

Canadian, Swiss and Asian authorities as well as the Justice Department, the Commodity Futures Trading Commission and Britain’s Financial Services Authority are investigating the actions of more than a dozen banks. Along with UBS, the futures commission is focused on potential wrongdoing at two American banks, Citigroup and JPMorgan Chase, the officials said. HSBC is also under scrutiny.

In addition to the regulatory cases, the Justice Department has identified potential criminal wrongdoing by traders at Barclays and other banks. The banks also face private lawsuits from large investors like local governments, which claim to have suffered losses as a result of interest rate manipulation. The New York attorney general has subpoenaed 16 banks over their role in the scandal, an action that could foreshadow civil lawsuits. Analysts predict the financial industry could face penalties of up to $20 billion.

“The evidence that comes out of any future settlement is likely to be enormously helpful for our claims,” said David E. Kovel, a partner at the law firm Kirby McInerney who is representing clients in a potential class-action suit related to Libor.

For UBS, the Libor case comes at a difficult time.

It has faced a series of legal problems since the financial crisis. In 2009, the bank agreed to pay $780 million to settle accusations by American authorities that it helped wealthy clients avoid taxes.

In 2011, it announced a $2.3 billion loss prompted by a rogue trader, Kweku M. Adoboli, who received a seven-year jail sentence for fraud last month. The firm agreed to pay a $47.5 million penalty to the British authorities in connection with the trading loss.

In the Libor case, UBS has been eager to cooperate. It has already reached a conditional immunity deal with the antitrust arm of the Justice Department, which could protect the bank from criminal prosecution under certain conditions. It is also cooperating with Canadian antitrust authorities by handing over e-mails and other documents implicating other banks.

But it did acknowledge publicly that such deals would not shield the bank from potential penalties from other regulators. The Justice Department’s criminal unit, for instance, could still take action against the bank.

UBS disclosed last year that it was the subject of investigations related to Libor, saying it had received subpoenas from American and Japanese authorities. Swiss and British regulators have joined the UBS investigation, which involves a number of currencies in the Libor system.

The timing of the Libor cases against UBS depends in large part on cooperation among regulators.

The Financial Services Authority in Britain has worked closely with its American counterparts. In total, the British regulator has about 160 people working on its various cases against banks, which are at different stages of development.

As the top watchdog of London’s financial services industry, the British regulator has positioned itself as a conduit for document requests from international regulators regarding Libor, which is set daily by banks in London. The agency also organizes interviews for its American counterparts with London-based bankers involved in the inquiries, according to an official with direct knowledge of the matter.

British regulators had been ready to move against UBS a month after officials announced a settlement with Barclays, the person added. The settlement has been delayed, however, as global authorities have tried to pursue a joint agreement with the bank.

“We’ve been going at the pace of the slowest regulator,” the official said.

A version of this article appeared in print on 12/03/2012, on page A1 of the NewYork edition with the headline: Ubs Is Reported To Be Near Deal On Rate Rigging.

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Lindsay Lohan Is 'Out of Control,' Says a Source

By Aili Nahas

12/03/2012 at 03:00 PM EST

Things are not looking good for Liz and Dick star Lindsay Lohan.

Less than 24 hours before the well-documented punching incident at an N.Y.C. nightclub that got her arrested, Lohan was "dancing like crazy" past 2 a.m. at The Darby, at one point "causing a scene" when she thought she lost her phone, says an onlooker. "She even demanded that a girl at a nearby table empty her pockets."

The following night, Lohan appeared drunk, according to reports, before she allegedly punched Tiffany Mitchell at a Manhattan nightclub. She is due in court for the altercation on Jan. 7.

Simply put, Lohan, 26, continues to struggle with alcohol, says a friend. "She will fool people into thinking she's changed, but at some point in the night, she always snaps and it's always the same story," says the pal.

After the nightclub incident, Lohan's assistant Gavin Doyle Tweeted to the actress: "@lindsaylohan after bailing you out last night I HOPE and PRAY you get the help you so desperately need. We are ALL rooting for you. xxx."

Lohan is "out of control," adds a second source. "Her friends don't know what to do. She won't ever change."

Meanwhile, another source close to the actress denies that she has a problem and says that it's the "near constant criticism" that's taking a toll on her. "If everything you did was criticized, you'd lash out too," says the pal. "But she'll be fine, she's tough. She'll probably outlive everyone."

For now, Lohan is due in a Los Angeles courtroom on Dec. 12 for a hearing relating to a June 8 car accident that resulted in three misdemeanor charges, including lying to a police officer. Those charges normally wouldn't threaten jail time for a first time offender, but because Lohan is still on informal probation, those charges, combined with a possible assault, could land her in jail.

The last time the starlet appeared before L.A. Superior Court Judge Stephanie Sautner, the judge warned Lohan that she could face 245 days in jail if she slipped up again.

• Reporting by KEN LEE, HOWARD BREUER and EMILY STROHM

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Fossil fuel subsidies in focus at climate talks

DOHA, Qatar (AP) — Hassan al-Kubaisi considers it a gift from above that drivers in oil- and gas-rich Qatar only have to pay $1 per gallon at the pump.

"Thank God that our country is an oil producer and the price of gasoline is one of the lowest," al-Kubaisi said, filling up his Toyota Land Cruiser at a gas station in Doha. "God has given us a blessing."

To those looking for a global response to climate change, it's more like a curse.

Qatar — the host of U.N. climate talks that entered their final week Monday — is among dozens of countries that keep gas prices artificially low through subsidies that exceeded $500 billion globally last year. Renewable energy worldwide received six times less support — an imbalance that is just starting to earn attention in the divisive negotiations on curbing the carbon emissions blamed for heating the planet.

"We need to stop funding the problem, and start funding the solution," said Steve Kretzmann, of Oil Change International, an advocacy group for clean energy.

His group presented research Monday showing that in addition to the fuel subsidies in developing countries, rich nations in 2011 gave more than $58 billion in tax breaks and other production subsidies to the fossil fuel industry. The U.S. figure was $13 billion.

The Paris-based Organization for Economic Cooperation and Development has calculated that removing fossil fuel subsidies could reduce carbon emissions by more than 10 percent by 2050.

Yet the argument is just recently gaining traction in climate negotiations, which in two decades have failed to halt the rising temperatures that are melting Arctic ice, raising sea levels and shifting weather patterns with impacts on droughts and floods.

In Doha, the talks have been slowed by wrangling over financial aid to help poor countries cope with global warming and how to divide carbon emissions rights until 2020 when a new planned climate treaty is supposed to enter force. Calls are now intensifying to include fossil fuel subsidies as a key part of the discussion.

"I think it is manifestly clear ... that this is a massive missing piece of the climate change jigsaw puzzle," said Tim Groser, New Zealand's minister for climate change.

He is spearheading an initiative backed by Scandinavian countries and some developing countries to put fuel subsidies on the agenda in various forums, citing the U.N. talks as a "natural home" for the debate.

The G-20 called for their elimination in 2009, and the issue also came up at the U.N. earth summit in Rio de Janeiro earlier this year. Frustrated that not much has happened since, European Union climate commissioner Connie Hedegaard said Monday she planned to raise the issue with environment ministers on the sidelines of the talks in Doha.

Many developing countries are positive toward phasing out fossil fuel subsidies, not just to protect the climate but to balance budgets. Subsidies introduced as a form of welfare benefit decades ago have become an increasing burden to many countries as oil prices soar.

"We are reviewing the subsidy periodically in the context of the total economy for Qatar," the tiny Persian gulf country's energy minister, Mohammed bin Saleh al-Sada, told reporters Monday.

Qatar's National Development Strategy 2011-2016 states it more bluntly, saying fuel subsides are "at odds with the aspirations" and sustainability objectives of the wealthy emirate.

The problem is that getting rid of them comes with a heavy political price.

When Jordan raised fuel prices last month, angry crowds poured into the streets, torching police cars, government offices and private banks in the most sustained protests to hit the country since the start of the Arab unrest. One person was killed and 75 others were injured in the violence.

Nigeria, Indonesia, India and Sudan have also seen violent protests this year as governments tried to bring fuel prices closer to market rates.

Iran has used a phased approach to lift fuel subsidies over the past several years, but its pump prices remain among the cheapest in the world.

"People perceive it as something that the government is taking away from them," said Kretzmann. "The trick is we need to do it in a way that doesn't harm the poor."

The International Energy Agency found in 2010 that fuel subsidies are not an effective measure against poverty because only 8 percent of such subsidies reached the bottom 20 percent of income earners.

The IEA, which only looked at consumption subsidies, this year said they "remain most prevalent in the Middle East and North Africa, where momentum toward their reform appears to have been lost."

In the U.S., environmental groups say fossil fuel subsidies include tax breaks, the foreign tax credit and the credit for production of nonconventional fuels.

Industry groups, like the Independent Petroleum Association of America, are against removing such support, saying that would harm smaller companies, rather than the big oil giants.

In Doha, Mohammed Adow, a climate activist with Christian Aid, called all fuel subsidies "reckless and dangerous," but described removing subsidies on the production side as "low-hanging fruit" for governments if they are serious about dealing with climate change.

"It's going to oil and coal companies that don't need it in the first place," he said.

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Associated Press writers Abdullah Rebhy in Doha, Qatar, and Brian Murphy in Dubai, United Arab Emirates, contributed to this report

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Karl Ritter can be reached at www.twitter.com/karl_ritter

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