Lilly drug chosen for Alzheimer's prevention study

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

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

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

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

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

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

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

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

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Online:

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

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

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Manti Te'o Hoax Incredibly Detailed and Complex

Fresh details have emerged about how complex and layered was the hoax involving Notre Dame star linebacker Manti Te'o and his fake girlfriend, "Lennay Kekua."

According to ABC News interviews and published reports, Te'o received phone calls, text messages and letters before every football game from his "girlfriend." He was in contact with her family, including a twin brother, a second brother, sister and parents. He called often to check in with them, just as he did with his own family. And "Kekua" kept in contact with Te'o's friends and family, and teammates spoke to her on the phone.

"There are a remarkable number of characters involved. We don't know how many people they represent," Notre Dame Athletic Director Jack Swarbrick said at a news conference this week. "There are male and female characters, brothers, cousins, mother, and we don't know if it's two people playing multiple characters or multiple people."

"It goes to the sophistication of this, that there are all these sort of independent pieces that reinforce elements of the story all the way through," he said.

Click here for a who's who in the Manti Te'o case

One of Te'o's teammates who asked not to be identified told ABC News that it was normal for Te'o to pass his phone around to teammates when he was on the line with "Lennay" so they could say hello to her.

"I talked to her," this teammate said. "I wasn't suspicious."

When Te'o got the call telling him that Lennay had died last fall, he was in the locker room, the teammate said.

"He got real emotional, crying," the teammate said. "He's an emotional guy."

The teammate said he thinks Te'o genuinely got hoaxed. The fact that Te'o talked about meeting her and touching her hand - when really he only "met" her on the internet - makes this teammate think that he was not completely telling the truth about his relationship.

Manti Te'o Hoax: Was He Duped or Did He Know? Watch Video

Manti Te'o Hoax: Notre Dame Star Allegedly Scammed Watch Video

Tale of Notre Dame Football Star's Girlfriend and Her Death an Alleged Hoax Watch Video

"I think he was just embarrassed about it, the whole internet thing," the teammate said. The player said he hasn't talked to Te'o since this story broke.

With so many questions swirling around the revelation that Te'o's fake girlfriend, a source in the Notre Dame athletic department said the school would like Te'o to speak out publicly, but noted that they are not currently in touch with him.

"At some point the ball ends up in his court," the source said. "We're not involved right now."

A newly released transcript of "Sports Illustrated" writer Pete Thamel's Sept. 23 interview with Te'o gives a hint at the staggering depth of the deception.

Te'o told Thamel that Lennay Kekua's real name was Melelengei, but since no one could pronounce it properly it was shortened to Lennay. But her family nicknamed her Lala, he said.

Te'o's knowledge about the details of his girlfriend's life was often murky, including her majors in school, occupation and extent of her injuries after an alleged April 28 car accident with a drunk driver.

What he was absolutely clear about was how much time he spent in contact with her, especially while she was in the hospital recovering from the car accident, which led to the discovery of her leukemia.

"I talked to my girlfriend every single day," Te'o told Themel. "I slept on the phone with her every single day. When she was going through chemo, she would have all these pains and the doctors were saying they were trying to give her medicine to make her sleep. She still couldn't sleep. She would say, 'Just call my boyfriend and have him on the phone with me, and I can sleep.' I slept on the phone with her every single night."

He would spend eight hours a night with someone, somewhere, breathing on the other end, he told Thamel.

Te'o recounted how his girlfriend who was "on a machine" after being in a coma.

"We lost her, actually, twice. She flatlined twice. They revived her twice," he said. "It was just a trippy situation."

For a while Kekua was unable to talk and he described the nurse-deemed "miracle" of how Kekua's breathing would pick up when she heard his voice on the phone.

"There were lengthy, long telephone conversations. There was sleeping with the phone on connected to each other," Swarbrick said. "The issue of who it is, who's playing what role, what's real and what's not here is a more complex question than I can get into."

Perhaps one of the most touching displays of love from Kekua to Te'o, he told the writer, was the one-page letter she would write him on her iPad before each game. One of her siblings, often her twin brother Noa, would then read him the letter over the phone before sending it to him.

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Foreigners still caught in Sahara hostage crisis

ALGIERS/IN AMENAS, Algeria (Reuters) - More than 20 foreigners were still either being held hostage or missing inside a gas plant on Friday after Algerian forces stormed the desert complex to free hundreds of captives taken by Islamist militants.

More than a day after the Algerian army launched an assault to seize the remote desert compound, much was still unclear about the number and fate of the victims, leaving countries with citizens in harm's way struggling to find hard information.

Reports on the number of hostages killed ranged from 12 to 30, with anywhere from dozens to scores of foreigners still unaccounted for.

Norway's Prime Minister Jens Stoltenberg, eight of whose countrymen were missing, said fighters still controlled the gas treatment plant itself, while Algerian forces now held the nearby residential compound that housed hundreds of workers.

Leaders of Britain, Japan and other countries expressed frustration that the assault had been ordered without consultation. Many countries were also withholding information about their citizens to avoid helping the captors.

Night fell quietly on the village of In Amenas, the nearest settlement, some 50 km (30 miles) from the vast and remote desert plant. A military helicopter could be seen in the sky.

An Algerian security source said 30 hostages, including at least seven Westerners, had been killed during Thursday's assault, along with at least 18 of their captors. Eight of the dead hostages were Algerian, with the nationalities of the rest of the dead still unclear, he said.

Algeria's state news agency APS put the total number of dead hostages at 12, including both foreigners and locals.

Norway's Stoltenberg said some of those killed in vehicles blasted by the army could not be identified. "We must be prepared for bad news this weekend but we still have hope."

Northern Irish engineer Stephen McFaul, who survived, said he saw four trucks full of hostages blown up by Algerian troops.

The attack has plunged international capitals into crisis mode and is a serious escalation of unrest in northwestern Africa, where French forces have been in Mali since last week fighting an Islamist takeover of Timbuktu and other towns.

"We are still dealing with a fluid and dangerous situation where a part of the terrorist threat has been eliminated in one part of the site, but there still remains a threat in another part," British Prime Minister David Cameron told his parliament.

A local Algerian source said 100 of 132 foreign hostages had been freed from the facility. However, other estimates of the number of unaccounted-for foreigners were higher. Earlier the same source said 60 were still missing. Some may be held hostage; others may still be hiding in the sprawling compound.

Two Japanese, two Britons and a French national were among the seven foreigners confirmed dead in the army's storming, the Algerian security source told Reuters. One British citizen was killed when the gunmen seized the hostages on Wednesday.

Those still unaccounted for on Friday included 10 from Japan and eight Norwegians, according to their employers, and a number of Britons which Cameron put at "significantly" less than 30

France said it had no information on two Frenchmen who may have been at the site and Washington has said a number of Americans were among the hostages, without giving details. The local source said a U.S. aircraft landed nearby on Friday.

The attackers had initially claimed to be holding 41 Western hostages. Some Westerners were able to evade capture by hiding.

They lived among hundreds of Algerian employees on the compound. The state news agency said the army had rescued 650 hostages in total, 573 of whom were Algerians.

"(The army) is still trying to achieve a ‘peaceful outcome' before neutralizing the terrorist group that is holed up in the (facility) and freeing a group of hostages that is still being held," it said, quoting a security source.

MULTINATIONAL INSURGENCY

Algerian commanders said they moved in on Thursday about 30 hours after the siege began, because the gunmen had demanded to be allowed to take their captives abroad.

A French hostage employed by a French catering company said he had hidden in his room for 40 hours under the bed, relying on Algerian employees to smuggle him food with a password.

"I put boards up pretty much all round," Alexandre Berceaux told Europe 1 radio. "I didn't know how long I was going to stay there ... I was afraid. I could see myself already ending up in a pine box."

The captors said their attack was a response to a French military offensive in neighboring Mali. However, some U.S. and European officials say the elaborate raid probably required too much planning to have been organized from scratch in the single week since France first launched its strikes.

Paris says the incident proves that its decision to fight Islamists in neighboring Mali was necessary.

Security in the half-dozen countries around the Sahara desert has long been a pre-occupation of the West. Smugglers and militants have earned millions in ransom from kidnappings.

The most powerful Islamist groups in the Sahara were severely weakened by Algeria's secularist military in a civil war in the 1990s. But in the past two years the regional wing of Al Qaeda gained fighters and arms as a result of the civil war in Libya, when arsenals were looted from Muammar Gaddafi's army.

Al Qaeda-linked fighters, many with roots in Algeria and Libya, took control of northern Mali last year, prompting the French intervention in that poor African former colony.

The Algerian security source said only two of 11 militants whose bodies were found on Thursday were Algerian, including the squad's leader. The others comprised three Egyptians, two Tunisians, two Libyans, a Malian and a Frenchman, he said.

The plant was heavily fortified, with security, controlled access and an army camp with hundreds of armed personnel between the accommodation and processing plant, Andy Coward Honeywell, who worked there in 2009, told the BBC.

The apparent ease with which the fighters swooped in from the dunes to take control of an important energy facility, which produces some 10 percent of the natural gas on which Algeria depends for its export income, has raised questions over the value of outwardly tough security measures.

Algerian officials said the attackers may have had inside help from among the hundreds of Algerians employed at the site. The attackers benefitted from bases and staging grounds across the nearby border in Libya's desert, Algerian officials said.

U.S. Defense Secretary Leon Panetta said those responsible would be hunted down: "Terrorists should be on notice that they will find no sanctuary, no refuge, not in Algeria, not in North Africa, not anywhere.... Those who would wantonly attack our country and our people will have no place to hide."

WARNING OF MORE ATTACKS

The kidnappers threatened more attacks and warned Algerians to stay away from foreign companies' installations, according to Mauritania's news agency ANI, which maintained contact with the group during the siege.

Hundreds of workers from international oil companies were evacuated from Algeria on Thursday and many more will follow, said BP, which jointly ran the gas plant with Norway's Statoil and the Algerian state oil firm.

The overall commander of the kidnappers, Algerian officials said, was Mokhtar Belmokhtar, a one-eyed veteran of Afghanistan in the 1980s and Algeria's bloody civil war of the 1990s. He appears not to have been present.

Algerian security specialist Anis Rahmani, author of several books on terrorism and editor of Ennahar daily, told Reuters about 70 militants were involved from two groups, Belmokhtar's "Those who sign in blood", who traveled from Libya, and the lesser known "Movement of the Islamic Youth in the South".

Britain's Cameron, who warned people to prepare for bad news and who canceled a major policy speech on Friday to deal with the situation, said he would have liked Algeria to have consulted before the raid. Japan made similar complaints.

U.S. officials had no clear information on the fate of Americans. Washington, like its European allies, has endorsed France's military intervention in Mali.

(Additional reporting by Ali Abdelatti in Cairo, Eamonn Mallie in Belfast, Gwladys Fouche in Oslo, Mohammed Abbas in London and Padraic Halpin and Conor Humprhies in Dublin; Writing by Philippa Fletcher and Peter Graff; Editing by Andrew Roche)

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Snooker: Dott dumps Trump out of Masters tournament

LONDON: Judd Trump produced one of his worst displays in a 6-1 quarter-final loss to Graeme Dott at the Masters on Friday.

Several times Trump, taking on the role of fans' favourite in the ongoing self-imposed exile of crowd pleaser Ronnie O'Sullivan, missed pots by inches or left routine balls in the jaws of the pocket.

Former world champion Dott was not in the best of form himself, with the Scot's only major break a contribution of 111 in the final frame, but he did at least take some of the chances presented by his English opponent.

Judd insisted he would not linger on the disappointment of defeat, telling the BBC: "By the time I've got home, I will have already forgotten about it.

"I couldn't get going. It wasn't there today (Friday)."

He added: "I tried my best out there but it didn't happen. It's the worst I've felt and played since breaking through."

Meanwhile a bemused Dott said: "It's weird, you expect Judd to play well and sometimes, if someone doesn't play well, it puts you off.

"He really struggled from the first frame. I've not had any form for the last four or five months and even today I felt I missed a lot of bad shots. It was going to be hard for Judd to live up to how he had been playing."

- AFP/de

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Obscene MMS clip of wife drives man to suicide

PATIALA: An obscene MMS of his wife drove a young man to suicide on Thursday night. Although police have not recovered the MMS clip so far, they have registered a case against three neighbours of the deceased on the basis of suicide note recovered from his pocket.

Jaswinder Singh, 30, of Dholan Majra village worked on a wood works shop. Some days back his neighbour Dharinder Kaur allegedly showed him an MMS prepared by another neighbor, Sonu, with the wife of the deceased. Though it is still unclear if any money was demanded for not circulating the MMS, Jaswinder's family has complained that he was so depressed after the incident that he had stopped going to work out of humiliation.

"In his statement, Jaswinder's brother Kirpal has alleged that Sonu prepared the MMS clip of his sister-in-law some months back. The same was shown to the deceased a few days ago which led him to take the extreme step," said SHO Shambu Manjit singh.

A mentally strained Jaswinder went to his relatives house in Loha Kheri village on Thursday and went for a walk after dinner. However, he apparently consumed poison at small distance away from the house. His relatives started looking for him when he did not return home even after a long time and found his body near Mardapur village, located on Shambu-Ghanaur road.

Police recovered a suicide note from the pocket of deceased, in which he has mentioned about harassment by Dharinder, Sonu and another neighbor Gurdarshan Kaur. The deceased also described this as the reason for him ending his life.

"We have registered a case against three persons in this connection under 306 IPC ( abetment to suicide). We are conducting investigations to recover the MMS," said SP Rajpura Bhupinder Khatra.

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Flu season 'bad one for the elderly,' CDC says

The number of older people hospitalized with the flu has risen sharply, prompting federal officials to take unusual steps to make more flu medicines available and to urge wider use of them as soon as symptoms appear.

The U.S. is about halfway through this flu season, and "it's shaping up to be a worse-than-average season" and a bad one for the elderly, said Dr. Thomas Frieden, director of the Centers for Disease Control and Prevention.

It's not too late to get a flu shot, and "if you have symptoms, please stay home from work, keep your children home from school" and don't spread the virus, he said.

New figures from the CDC show widespread flu activity in all states but Tennessee and Hawaii. Some parts of the country are seeing an increase in flu activity "while overall activity is beginning to go down," Frieden said. Flu activity is high in 30 states and New York City, up from 24 the previous week.

Nine more children or teens have died of the flu, bringing the nation's total this flu season to 29. That's close to the 34 pediatric deaths reported during all of the last flu season, although that one was unusually light. In a typical season, about 100 children die of the flu and officials said there is no way to know whether deaths this season will be higher or lower than usual.

The government doesn't keep a running tally of adult deaths from the flu, but estimates that it kills about 24,000 people most years.

So far, half of confirmed flu cases are in people 65 and older. Lab-confirmed flu hospitalizations totaled 19 for every 100,000 in the population, but 82 per 100,000 among those 65 and older, "which is really quite a high rate," Frieden said.

"We expect to see both the number and the rates of both hospitalizations and deaths rise further in the next week or so as the flu epidemic progresses,'" so prompt treatment is key to preventing deaths, he said.

About 90 percent of flu deaths are in the elderly; the very young and people with other health problems such as diabetes are also at higher risk.

If you're worried about how sick you are and are in one of these risk groups, see a doctor, Frieden urged. One third to one half of people are not getting prompt treatment with antiviral medicines, he said.

Two drugs — Tamiflu and Relenza — can cut the severity and risk of death from the flu but must be started within 48 hours of first symptoms to do much good. Tamiflu is available in a liquid form for use in children under 1, and pharmacists can reformulate capsules into a liquid if supplies are short in an area, said Dr. Margaret Hamburg, head of the Food and Drug Administration.

To help avoid a shortage, the FDA is letting Tamiflu's maker, Genentech, distribute 2 million additional doses of capsules that have an older version of package insert.

"It is fully approved, it is not outdated," just lacks information for pharmacists on how to mix it into a liquid if needed for young children, she said.

This year's flu season started about a month earlier than normal and the dominant flu strain is one that tends to make people sicker. Vaccinations are recommended for anyone 6 months or older. There's still plenty of vaccine — an update shows that 145 million doses have been produced, "twice the supply that was available only several years ago," Hamburg said.

About 129 million doses have been distributed already, and a million doses are given each day, Frieden said. The vaccine is not perfect but "it's by far the best tool we have to prevent influenza," he said.

Carlos Maisonet, 73, got a flu shot this week at New York's Brooklyn Hospital Center at the urging of his wife, who was vaccinated in August.

"This is his first time getting the flu shot," said his wife, Zulma Ramos.

Last week, the CDC said the flu again surpassed an "epidemic" threshold, based on monitoring of deaths from flu and a frequent complication, pneumonia. The flu epidemic happens every year and officials say this year's vaccine is a good match for strains that are going around.

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Online:

Flu vaccine finder: http://www.flu.gov

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

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AP Photographer Bebeto Matthews in New York contributed to this report.

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

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'Catfish' Star Reaches Out to Manti Te'o

Nev Schulman, the star and creator of the MTV show "Catfish" that follows Internet dating hoaxes, has reached out to Notre Dame football star Manti Te'o and offered to help solve his girlfriend hoax.

Te'o and Notre Dame claim he was a "catfish" victim when it was revealed that the woman he said was his girlfriend and died of leukemia never existed.

The "Catfish" television show was spawned by a movie of the same name in which Schulman tracked down a person who pretended to be a young woman he had met online.

".@MTeo_5 I know how you feel. It happened 2 me. I want 2 help tell ur story & prevent this from happening to others in the future. Lets talk," Schulman tweeted to Te'o.

Schulman says in his tweets that he has information about the baffling hoax. "I am working on finding out more about this @MTeo_5 #Catfish story. I have been in contact with the woman involved and will get the truth," Schulman tweeted on Wednesday night. It is unclear which woman Schulman has been in contact with.

However, in a statment released to ABC News, Schulman said "I have been in touch with Donna Tei. She reached out to me back in December asking for help regarding the person who had been using her photos to create a fake profile."

It's not clear whether Donna Tei was the woman whose photo was used as "girlfriend" Lennay Kekua or another person in the complicated hoax.

He also tweeted, "However his #Manti story ends, it doesn't change that we are all the victims of a #Catfish."

In a statement on MTV.com, Schulman defended the possibility that Te'o had been duped.

"When you read an article all at once where it reveals all these stories and all these details, it seems crazy, but in the process of it, as it happens very slowly, things don't seem so crazy," Schulman wrote. "And then, of course, when you look at it all in one snapshot, it does sort of seem kind of unbelievable."

ABC News; David J. Phillip/AP Photo

Manti Te'o Hoax: Notre Dame Star Allegedly Scammed Watch Video

'Catfish' Star Nev Schulman's Red Flags for Spotting Online Fakers Watch Video

Tale of Notre Dame Football Star's Girlfriend and Her Death an Alleged Hoax Watch Video

Notre Dame Athletic Director Jack Swarbrick cited the documentary "Catfish" in trying to explain how the star linebacker became a hoax victim.

"I would refer all of you, if you're not already familiar with it, with both the documentary called 'Catfish,' the MTV show which is a derivative of that documentary, and the sort of associated things you'll find online and otherwise about catfish, or catfishing," Swarbrick told reporters Wednesday.

The 2010 film stars Schulman, who was the real-life victim of a "catfish" scam. Schulman wanted to make the documentary to show how he was sucked in by an Internet pretender -- or a "catfish" -- who built an elaborate fake life.

Schulman made the documentary as he was falling for someone named "Megan," a gorgeous 20-something from Michigan. Their online relationship blossomed until Schulman confronted "Megan."

"Megan" turned out to be a middle-aged mom of two named Angela Wesselman, who later said she had been diagnosed with schizophrenia.

Inside 'Catfish': A Tale of Twisted Cyber-Romance

"It was different. It was something new. It was a little mysterious," Schulman told ABC News in an earlier interview, describing his reaction before he discovered Megan's true identity.

Now, a much wiser Schulman is helping others catch the "catfish" in his new hit series on MTV inspired by the real-life documentary, "Catfish: The TV Show."

'Catfish' Stars Nev Schulman's Advice for Online Dating

In one episode, Schulman meets Sunny, who says she has been dating a medical student online named "Jameson" for eight months.

"He's going to be an anesthesiologist. He does online classes," Sunny says of "Jameson" in the episode.

Schulman convinces Sunny to take a road trip to meet "Jameson" face to face and and Sunny later finds out "Jameson" was really a woman who was pretending to be a man online for at least four years.

"I mean who does that?" Sunny said in the episode.

As more become connected through various social media outlets, Schulman says these "catfish" hoaxes will continue.

"So long as we're not looking people in the eye face-to-face, there's always going be room, a lot of room for deception," he said.

WATCH: Deadspin Writer Who Uncovered Hoax Explains the Story

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Some foreign hostages said killed in Algeria assault

ALGIERS (Reuters) - Algeria said several hostages were killed on Thursday when its forces stormed a remote desert gas plant occupied by Islamist militants in retaliation for French intervention in Mali, and local sources said six foreigners were among the dead.

Amid reports of many more casualties in one of the biggest international hostage crises in decades, Western leaders expressed anger they had not been consulted before the operation and scrambled for word of their citizens. Some eight hours after the army assault began, Algerian state media said it was over.

Americans, Britons, Norwegians, French, Romanians and an Austrian, were among those taken, their countries said.

Algeria said its troops had been forced to act to free them due to the "diehard" attitude of their captors.

"When the terrorist group insisted on leaving the facility, taking the foreign hostages with them to neighboring states, the order was issued to special units to attack the position where the terrorists were entrenched," the government spokesman, Communication Minister, Mohamed Said told the state news agency.

The standoff began when gunmen calling themselves the Battalion of Blood stormed the natural gas facility early on Wednesday morning. They said they were holding 41 foreigners and demanded a halt to a French military operation against fellow al Qaeda-linked Islamist militants in neighboring Mali.

Said said the military operation, which Western officials were told had begun around noon (6:00 a.m. EST) on Thursday, resulted in "the liberation of a large number of hostages and the destruction of a large number of terrorists".

The raid increased fears jihadist militants could launch further attacks in Algeria, a vast desert country with large oil and gas reserves that is only just recovering from a protracted conflict with Islamist rebels during the 1990s which cost an estimated 200,000 lives.

A local source told Reuters six foreign hostages were killed along with eight captors when the Algerian military fired on a vehicle being used by the gunmen.

He said 40 Algerians and three foreigners were freed by the army as it continued its operation into Thursday evening. An Algerian security source said earlier that 25 foreign hostages had escaped.

Algeria's official APS news agency said about half the foreign hostages had been freed and about 600 Algerian workers at the site, under less tight guard, had managed to escape.

MILITANTS KNEW THEIR WAY AROUND

In a rare eyewitness account of Wednesday's raid, a local man who had escaped from the facility told Reuters the militants appeared to have good inside knowledge of the layout of the complex and used the language of radical Islam.

"The terrorists told us at the very start that they would not hurt Muslims but were only interested in the Christians and infidels," Abdelkader, 53, said by telephone from his home in the nearby town of In Amenas. "We will kill them, they said."

Mauritanian agency ANI and Qatar-based Al Jazeera said that 34 of the captives and 15 of their captors had been killed when government forces fired from helicopters at a vehicle.

Those death tolls, far higher than confirmed by the local source, would contradict the reports that large numbers of foreigners escaped alive. On Thursday evening, ANI said it had lost its previously regular contact with the kidnappers.

Britain and Norway, whose oil firms BP and Statoil run the plant jointly with the Algerian state oil company, said they had been informed by the Algerian authorities that a military operation was under way.

British Prime Minister David Cameron said people should prepare for bad news about the hostages. He earlier called his Algerian counterpart to express his concern at what he called a "very grave and serious" situation, Cameron's spokesman said.

"The Algerians are aware that we would have preferred to have been consulted in advance," the spokesman added.

Norwegian Prime Minister Jens Stoltenberg said he had been told by his Algerian counterpart the action had started at around noon. He said they had tried to find a solution through the night, but that it had not worked.

"The Algerian prime minister said they felt they had no choice but to go in now," he said.

RAISING THE STAKES

The incident dramatically raises the stakes in the French military campaign in neighboring Mali, where hundreds of French paratroopers and marines are launching a ground offensive against Islamist rebels after air strikes began last week.

"What is happening in Algeria justifies all the more the decision I made in the name of France to intervene in Mali in line with the U.N. charter," French President Francois Hollande said, adding that things seemed to have taken a "dramatic" turn and he was still seeking details.

He said earlier that an unspecified number of French nationals were among the hostages. A French national was also among the hostage takers, a local source told Reuters. A large number of people from the former French colony live in France.

Algerian Interior Minister Daho Ould Kablia said the kidnappers were led by Mokhtar Belmokhtar, a veteran Islamist guerrilla who fought in Afghanistan and set up his own group in the Sahara after falling out with other local al Qaeda leaders.

A holy warrior-cum-smuggler dubbed "The Uncatchable" by French intelligence and "Mister Marlboro" by some locals for his illicit cigarette-running business, Belmokhtar's links to those who seized towns across northern Mali last year are unclear.

A local source told Reuters the hostage takers had blown up a petrol filling station at the plant.

NUMBERS UNCONFIRMED

The precise number and nationalities of foreign hostages could not be confirmed, with some countries reluctant to release information that could be useful to the captors.

Britain said one of its citizens was killed in the initial storming on Wednesday and "a number" of others were held.

The militants had said seven Americans were among their hostages. The White House said it believed Americans were among those held but U.S. officials could not confirm the number. "This is an ongoing situation and we are seeking clarity," White House spokesman Jay Carney told reporters, expressing concern about the reported loss of lives.

Statoil said it had no word on nine of its Norwegian staff who had been held but that three Algerian employees were now free. BP said some of its staff were held but would not say how many or their nationalities.

Japanese media said five workers from Japanese engineering firm JGC Corp. were held, a number the company did not confirm. Vienna said one hostage was Austrian, Dublin said one Irish hostage had been freed and Bucharest said an unspecified number of those held were Romanian.

BP, Statoil and Spanish oil company Cepsa all said they had begun to evacuate personnel from elsewhere in Algeria, an OPEC member.

Hollande has received public backing from Western and African allies who fear that al Qaeda, flush with men and arms from the defeated forces of Libya's Muammar Gaddafi, is building a desert haven in Mali, a poor country helpless to combat fighters who seized its northern oasis towns last year.

However, there is also some concern in Washington and other capitals that the French action in Mali could provoke a backlash worse than the initial threat by militants in the remote Sahara.

The militants, communicating through established contacts with media in neighboring Mauritania, said on Wednesday they had dozens of men armed with mortars and anti-aircraft missiles in the compound and had rigged it with explosives.

They condemned Algeria's secularist government for letting French warplanes fly over its territory to Mali and shutting its border to Malian refugees.

The attack in Algeria did not stop France from pressing on with its campaign in Mali. It said on Thursday it now had 1,400 troops on the ground in Mali, and combat was under way against the rebels that it first began targeting from the air last week.

The French action last week came as a surprise but received widespread international support in public. Neighboring African countries planning to provide ground troops for a U.N. force by September have said they will move faster to deploy them.

Nigeria, the strongest regional power, sent 162 soldiers on Thursday, the first of an anticipated 906.

A day after launching the campaign in Mali, Hollande also ordered a failed rescue in Somalia on Saturday to free a French hostage held by al Qaeda-linked al Shabaab militants since 2009. Al Shabaab said on Thursday it had executed hostage Denis Allex. France said it believed he died in the rescue.

(Additional reporting by Ali Abdelatti in Cairo, Gwladys Fouche in Oslo, Mohammed Abbas in London and Padraic Halpin in Writing by Peter Graff, Giles Elgood and Philippa Fletcher; Editing by Alastair Macdonald)

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Lagarde warns more global recovery work needed

WASHINGTON: International Monetary Fund chief Christine Lagarde warned Thursday that more efforts were needed to get the global economy back on track.

"We stopped the collapse, we should avoid the relapse, and it's not time to relax," Lagarde said at a news conference at the multilateral institution's Washington headquarters.

"There's still a lot of work to be done."

The IMF managing director, while pointing to signs of economic improvement, noted deterioration on the jobs front, which she called "critical from an economic point of view but also from a social point of view."

"We need growth for jobs and jobs for growth," she said.

The eurozone, the centre of the public debt crisis dragging down global growth, and where the IMF together with the European Union has rescued Greece, Ireland and Portugal, has to do more to address its challenges, she said.

Financial firewalls erected by the European Union and the European Central Bank, such as the European Stability Mechanism rescue fund and ECB bond purchases, "have not proven operational."

"Progress needs to be made on the banking union," she added.

Lagarde suggested further monetary easing in Europe may be appropriate to sustain demand.

As for the United States, the IMF chief called on bitterly divided politicians to reach a compromise on the nation's borrowing limit and deficit-reduction plans.

"All sides should pool together in the national interest" to avoid another "avoidable political mistake", she said.

With the mandated US borrowing limit already reached, and the Treasury using extraordinary measures to avoid putting the world's biggest economy into default, Republicans are tying raising the ceiling to spending cuts.

Democratic President Barack Obama has rejected that basis for negotiations.

More than four years after the US financial crisis plunged the global economy into recession, Lagarde also called for completion of financial system reforms.

She expressed concern about the banking sector's tendency to drag its heels with regulation, especially the international Basel III standards.

"It's the constant approach by the industry to actually push back because it's nicer to operate without regulation rather than with regulation."

"I might be a little blunt but that's my experience as a former minister of finance (in France) and having observed the profession close by," she added.

Asked about Japan's desire to curb appreciation of the yen, Lagarde reiterated her firm opposition to currency wars and other competitive devaluations.

"If only the risks of retaliation should actually prevent anybody to go into that sort of monetary policy," she said.

- AFP/jc

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Hike in fuel price a signal to ratings agencies, investors

NEW DELHI: Although deregulation of diesel prices has been in the works for a while, the government bit the bullet around 8 pm on Wednesday when a decision was taken to place the politically knotty proposal before the cabinet committee on political affairs the next morning.

The approval of the Cabinet Committee on Political Affairs is seen as a major step to prune a subsidy bill playing havoc with government finances and is a signal to woo foreign investors ahead of road shows in Asia and Europe and the World Economic Forum's annual meeting at Davos later this month.

The government signaled its determination by defying conventional wisdom that the unpopular decision - that follows a recent hike in rail fares -- would not be taken before the Congress brainstorming session due to begin on Friday.

The unambiguous message the government has sought to convey is that it is serious about nipping the fiscal deficit and hopes its actions will convince ratings agencies that India is taking energetic steps to remain a viable investment destination.

There is a consensus in government that although India remains a relatively attractive investment option in view of Eurozone's problems and slow growth in the US, it must show the resolve to take steps that will improve FDI inflows.

Tackling red tape, reducing corruption and de-stressing government finances are seen as key to boosting investor confidence at home and abroad. The oil subsidy is reportedly in the region of Rs 1.5 lakh crore and the sum earmarked in the 2011-12 budget was consumed settling the previous year's bill.

With disinvestment struggling and fresh auction of 2G spectrum proving a damp squib, the government has little choice but to attack the subsidy on diesel despite the obvious inflationary implications of such a decision.

Disregard for the Jaipur 'chintan shivir' indicates the Congress leadership understands the urgent need to raise fuel prices.

Financial analysts and the markets welcomed the move to reform the oil sector and the government's eye is fixed on finance minister P Chidambaram's tours to woo foreign investors when he travels to Hong Kong and Singapore and a little later to European cities.

By taking some tough calls, the government will hope to convey the right signals ahead of the bwhich will be its last such full-scale exercise before the 2014 general election. The budget will not be bereft of populism, but the giveaways are likely to be limited and focused on key voter groups.

An increase in diesel rates will bring the fuel closer in price parity to petrol and would be seen as an environment friendly decision if the mitigation costs are calculated over the long term.

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