New whooping cough strain in US raises questions


NEW YORK (AP) — Researchers have discovered the first U.S. cases of whooping cough caused by a germ that may be resistant to the vaccine.


Health officials are looking into whether cases like the dozen found in Philadelphia might be one reason the nation just had its worst year for whooping cough in six decades. The new bug was previously reported in Japan, France and Finland.


"It's quite intriguing. It's the first time we've seen this here," said Dr. Tom Clark of the Centers for Disease Control and Prevention.


The U.S. cases are detailed in a brief report from the CDC and other researchers in Thursday's New England Journal of Medicine.


Whooping cough is a highly contagious disease that can strike people of any age but is most dangerous to children. It was once common, but cases in the U.S. dropped after a vaccine was introduced in the 1940s.


An increase in illnesses in recent years has been partially blamed on a version of the vaccine used since the 1990s, which doesn't last as long. Last year, the CDC received reports of 41,880 cases, according to a preliminary count. That included 18 deaths.


The new study suggests that the new whooping cough strain may be why more people have been getting sick. Experts don't think it's more deadly, but the shots may not work as well against it.


In a small, soon-to-be published study, French researchers found the vaccine seemed to lower the risk of severe disease from the new strain in infants. But it didn't prevent illness completely, said Nicole Guiso of the Pasteur Institute, one of the researchers.


The new germ was first identified in France, where more extensive testing is routinely done for whooping cough. The strain now accounts for 14 percent of cases there, Guiso said.


In the United States, doctors usually rely on a rapid test to help make a diagnosis. The extra lab work isn't done often enough to give health officials a good idea how common the new type is here, experts said.


"We definitely need some more information about this before we can draw any conclusions," the CDC's Clark said.


The U.S. cases were found in the past two years in patients at St. Christopher's Hospital for Children in Philadelphia. One of the study's researchers works for a subsidiary of Johnson & Johnson, which makes a version of the old whooping cough vaccine that is sold in other countries.


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JournaL: http://www.nejm.org


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Global shares, euro pause ahead of ECB decision

London (Reuters) - The euro, German bonds and shares steadied on Thursday, as investors awaited the European Central Bank's policy meeting later in the day and President Mario Draghi's views on the region's growth prospects.


Testimony from the new head of the Bank of England, bond auctions from France and Spain, earnings reports from a host of major European companies and the start of a two-day European Union summit provide more reasons for investors to be cautious.


The euro was nearly flat at $1.3530, holding above this week's low of $1.3458 plumbed on Tuesday but well shy of a 15-month peak of $1.3711 set last Friday.


The common currency has now soared 20 percent against Japan's yen in just three months, risen 8 percent on sterling and 7 percent on the dollar, increasing tensions among policymakers across the recession-hit region.


The gains will put the spotlight on ECB president Draghi at his 1330 GMT news conference, which follows the bank's meeting, at which interest rates are not expected to be changed.


"The market will want to hear stronger words on the foreign exchange front to stop the upwards trend that's in place, but we doubt this will happen," said Nomura economist Nick Matthews.


Equity markets were being held in check ahead of the news conference, with the FTSEurofirst 300 index <.fteu3> index of top European shares, London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> all little changed in early trading. <.eu/>


"The medium and long-term positive trend is still intact, although on the short term, we're turning 'neutral'; indexes are very close to key support levels," said Aurel BGC chartist Gerard Sagnier.


German Bund futures reflected the cautious mood, edging up 5 ticks to 142.61, with early attention on a Spanish auction of up to 4.5 billion euros of new debt following a rise in political tensions in Madrid as a corruption scandal threatens to engulf prime minister Mariano Rajoy.


Brent crude was steady in a tight range around $117 per barrel, while gold inched up to about $1,680 an ounce, with traders in all commodity markets wary of the impact of Draghi's comments on the outlook for the euro.


(Additional reporting by Francesco Canepa; Editing by Will Waterman)



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Ally of Ahmadinejad Freed Amid Political Fight, Reports Say





TEHRAN — As President Mahmoud Ahmadinejad escalated a bitter political fight this week with Iran’s most influential political family by disclosing secret film recordings of what he purported were fraudulent business deals, Iran’s political maneuvring took a new turn Wednesday when an imprisoned associate of the president was reported to have been freed.




The release of Saeed Mortazavi, reported by two Iranian news agencies, came as the latest chapter in several days of political drama playing out with prominence in the public eye.


During a Sunday session of Parliament, broadcast on state radio, Mr. Ahmadinejad singled out the head of the Parliament, Ali Larijani, a political rival with strong links to influential Shiite Muslim clerics and one of several brothers who have held top positions in the Iranian government.


His younger brother Sadegh, 52, heads Iran’s judiciary, while his oldest brother, Mohammad Javad, a Berkeley-educated mathematician, is also a judiciary official.


On Monday, a conservative newspaper, Kayhan, hinted that the nation’s supreme leader, Ayatollah Ali Khamenei, had been forced to step in to prevent both men from giving potentially damaging news conferences, which were both canceled at the last minute.


This was not the first time Ayatollah Khamenei has been forced to intervene in this feud. In October, he issued an edict aimed at stopping the infighting, saying that those creating divisions before the June 14 presidential elections “betray” the country.


Mr. Ahmadinejad, who went to the Parliament in a failed attempt to head off the impeachment of his labor minister, Abdolreza Sheikholeslami, said Mr. Larijani and his fellow lawmakers had obstructed the government, stepped beyond their constitutional boundaries and written letters ordering the annulment of government decisions.


Instructed by Mr. Larijani to stick to the subject of the impeachment, Mr. Ahmadinejad said, “Don’t order me to close my mouth because you say it’s the law.”


With that, Mr. Ahmadinejad, who for years has threatened to reveal the names of corrupt officials, played a video clip of a conversation in which another of Mr. Larijani’s brothers, Fazel, appeared to discuss the purchase of a state company under favorable terms, the semiofficial Tabnak Web site reported. While Fazel Larijani used to head a medical association in Iran, his current position is unclear.


The public accusation, rare in Iran, could signal a new phase in an already intense conflict between Mr. Ahmadinejad, who represents a powerful group of young, ambitious politicians, and Mr. Larijani, who is the official representative of the holy city of Qum, the center of Shiite scholarship in Iran.


Mr. Ahmadinejad said his associate, Mr. Mortazavi, 45, was also at the taped meeting. In January, Mr. Mortazavi was dismissed as the head of Iran’s enormous social welfare organization under pressure from Parliament. Some days later, however, he was rehired by the president in the same position, this time as official caretaker.


During the conversation, read out in part by Mr. Ahmadinejad to astonished lawmakers, Fazel Larijani appears to try to use his family connections to buy a factory from the social welfare organization. He promises leniency for Mr. Mortazavi, the former Tehran prosecutor who faces several criminal proceedings over accusations that he played a role in the deaths of three protesters in a substandard prison in 2009.


Mr. Mortazavi was arrested Monday evening, the Fars news agency reported, though no reason was given. But, in a new turn to what is likely to be a protracted saga, he was freed on Wednesday, news reports quoted Iranian media as saying. The terms of his release were unclear.


In Parliament on Sunday, the Iranian Students’ News Agency said, Mr. Ahmadinejad declared: “These are audio and video, and the tape is clear.”


He added: “If the honorable Parliament speaker sees fit, we can turn over the 24 to 25 hours to you,” he said of the recordings. On Monday, Iran’s Islamic Republic News Agency, a mouthpiece for Mr. Ahmadinejad, deepened the split by publishing the audiotape on its Web site.


Ali Larijani, cheered on by the Parliament, which has lost nearly every serious political battle with the president, silenced the room, saying: “Let him tell his words. If there is anything about my family, then let him talk about it.”


Mr. Larijani called the video a “mafia film” and recalled how he had a meeting with Mr. Ahmadinejad’s estranged brother, Davoud. “He said many things against you,” Mr. Larijani told the president, “about economic corruption, about your inner circle and your relations with foreign countries.”


For his part, Fazel Larijani strongly denied any wrongdoing, saying that while he did appear in the clip, the words were not his, but rather had been added in a voiceover. Calling Mr. Ahmadinejad and Mr. Mortazavi “mafialike individuals,” he said he would sue them both for “spreading lies and disturbing public opinion.”


On Monday, several officials criticized Mr. Ahmadinejad and Ali Larijani, accusing them of lacking self-control and bringing shame on the country. “They broke the leader’s heart and gave the friends of the Islamic republic almost a seizure,” said Mojtaba Zolnour, a special consultant to the supreme leader, Ayatollah Khamenei, the semiofficial Iranian Labor News Agency reported. “They provided ammunition for the foreign media on the eve of our election.”


Alan Cowell contributed reporting from Paris.



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Kim Kardashian's Pregnancy Is No Reason to Speed Divorce, says Kris Humphries















02/05/2013 at 09:20 PM EST







Kris Humphries and Kim Kardashian


Seth Browarnik/StarTraks


Kim Kardashian's baby is not even born yet and already is being drawn into mama's divorce.

Kardashian, carrying boyfriend Kanye West's child, has bristled at what she sees as stall tactics by estranged husband Kris Humphries to close the legal books on their 72-day marriage.

But Humphries's lawyer Marshall W. Waller writes that "what is really going on here is that an 'urgency' in the form of an apparently unplanned pregnancy" is being used by Kardashian as "an opportunity to gain a litigation advantage (to) prematurely set this matter for trial."

He adds parenthetically that the pregnancy is "something (Humphries) had nothing to do with."

Waller explains his reasoning for calling the pregnancy as unplanned: "Indeed, why would (she) plan to get pregnant in the midst of divorce proceedings?"

Kardashian, herself, recently addressed the timing.

"God brings you things at a time when you least expect it," she said last month. "I'm such a planner and this was just meant to be. What am I going to? Wait years to get a divorce? I'd love one. It's a process."

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Critics seek to delay NYC sugary drinks size limit


NEW YORK (AP) — Opponents are pressing to delay enforcement of the city's novel plan to crack down on supersized, sugary drinks, saying businesses shouldn't have to spend millions of dollars to comply until a court rules on whether the measure is legal.


With the rule set to take effect March 12, beverage industry, restaurant and other business groups have asked a judge to put it on hold at least until there's a ruling on their lawsuit seeking to block it altogether. The measure would bar many eateries from selling high-sugar drinks in cups or containers bigger than 16 ounces.


"It would be a tremendous waste of expense, time, and effort for our members to incur all of the harm and costs associated with the ban if this court decides that the ban is illegal," Chong Sik Le, president of the New York Korean-American Grocers Association, said in court papers filed Friday.


City lawyers are fighting the lawsuit and oppose postponing the restriction, which the city Board of Health approved in September. They said Tuesday they expect to prevail.


"The obesity epidemic kills nearly 6,000 New Yorkers each year. We see no reason to delay the Board of Health's reasonable and legal actions to combat this major, growing problem," Mark Muschenheim, a city attorney, said in a statement.


Another city lawyer, Thomas Merrill, has said officials believe businesses have had enough time to get ready for the new rule. He has noted that the city doesn't plan to seek fines until June.


Mayor Michael Bloomberg and other city officials see the first-of-its-kind limit as a coup for public health. The city's obesity rate is rising, and studies have linked sugary drinks to weight gain, they note.


"This is the biggest step a city has taken to curb obesity," Bloomberg said when the measure passed.


Soda makers and other critics view the rule as an unwarranted intrusion into people's dietary choices and an unfair, uneven burden on business. The restriction won't apply at supermarkets and many convenience stores because the city doesn't regulate them.


While the dispute plays out in court, "the impacted businesses would like some more certainty on when and how they might need to adjust operations," American Beverage Industry spokesman Christopher Gindlesperger said Tuesday.


Those adjustments are expected to cost the association's members about $600,000 in labeling and other expenses for bottles, Vice President Mike Redman said in court papers. Reconfiguring "16-ounce" cups that are actually made slightly bigger, to leave room at the top, is expected to take cup manufacturers three months to a year and cost them anywhere from more than $100,000 to several millions of dollars, Foodservice Packaging Institute President Lynn Dyer said in court documents.


Movie theaters, meanwhile, are concerned because beverages account for more than 20 percent of their overall profits and about 98 percent of soda sales are in containers greater than 16 ounces, according to Robert Sunshine, executive director of the National Association of Theatre Owners of New York State.


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


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Asian shares, industrial commods recover on economic optimism

TOKYO (Reuters) - Nascent global economic recovery buoyed risk assets from Asian shares to industrial commodities on Wednesday, while the prospect of a dovish new governor for the Bank of Japan sent the yen to a three-year low.


The signs of a recovery taking hold in Europe, the United States and China have helped improve the demand outlook for oil, copper and platinum while a solid reading for euro zone business activity supported the euro.


The slide in the yen bolstered Japanese equities to their highest since October 2008 while expectations of more monetary easing pushed two-year Japanese government bond yields down to a nine-year low of 0.045 percent.


The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> added 0.3 percent, tracking a more than 1 percent gain overnight in the Standard & Poor's 500 Index <.spx> and the Nasdaq Composite Index <.ixic> on data showing the U.S. services sector extended a three-year expansion in January.


In Asia, investors have been quick to book profits as prices approached their highs, but analysts and traders say any dip was likely to be seen as a chance to buy back into the market.


The pan-Asian index scaled a 18-month high on Monday, and was up about 2.3 percent so far this year, still modest compared to the S&P's nearly 6 percent gain in the same period.


Australian shares <.axjo> rose 0.8 percent, leading regional peers.


"Investors are positioning themselves for further upside moves while global economic data provides cause for optimism," said Tim Waterer, senior trader at CMC Markets.


Brent crude futures were up 0.1 percent to $116.64 a barrel, while U.S. crude was steady at $96.65, hovering near a 20-week high.


London copper rose 0.3 percent to $8,291.25 a tonne after nearing a four-month high of $8,322, while platinum hit a four-month high of $1,714.75 an ounce.


European markets are seen inching higher, with financial spreadbetters predicting London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> would open flat to up 0.1 percent. A 0.1 percent gain in U.S. stock futures suggested a firm open on Wall Street. <.l><.eu><.n/>


YEN TAKES CENTRE STAGE


Expectations for stronger reflationary policies from the Band of Japan intensified after BOJ Governor Masaaki Shirakawa said he would step down on March 19, three weeks earlier than the official end of his five-year term, leaving at the same time as his two deputies. His decision raised the prospect that the next BOJ governor will more readily adopt the expansionist monetary policy demanded by Prime Minister Shinzo Abe.


The dollar touched 94.075 yen to its highest since May 2010, while the euro also rose to 127.71 yen, its strongest since April 2010. The Aussie reached a 4-1/2 year peak around 97.42 yen. The pound touched a 3-year high near 147.25 yen.


Japan's benchmark Nikkei stock average <.n225> soared 3.8 percent to close at a 52-month high. <.t/>


"The momentum in Japan is continuing to favour yen weakening and a risk-on mood," said Stefan Worrall, director of cash equity sales at Credit Suisse in Tokyo.


Despite recent rallies, the Nikkei remains below levels before the 2008 financial crisis while the S&P 500 and Germany's benchmark stock index have both already exceeded that level.


EURO ALSO RESILIENT


The euro was steady around $1.3570, above a key technical support of its 14-day moving average at $1.34653.


The euro drew support from growing confidence in the region's economy and improving funding conditions for deeply-indebted euro zone members.


News the European Central Bank's balance sheet fell to an 11-month low of 2.8 trillion euros ($3.8 trillion) as markets unwound some of the ECB's crisis funding measures underpinned the euro, appearing in stark contrast to the U.S. Federal Reserve and the BOJ which keep expanding asset buying.


"Flows matter more than stock in currency markets when comparing central bank balance sheets ... highlighting the euro's outperformance over the last few months," said Ashraf Laidi, chief global strategist at City Index, in a note to clients.


The ECB is expected to keep interest rates unchanged at its policy meeting on Thursday, but its president may face a grilling over an Italian banking scandal.


Spanish and Italian yields fell on Tuesday after jumping on worries over a corruption scandal in Spain and polls showing Italy's former prime minister Silvio Berlusconi regaining ground before elections this month.


The yen's fall lifted benchmark Tokyo gold futures to a record high of 5,067 yen per gram on Wednesday.


(Additional reporting by Thuy Ong in Sydney and Ayai Tomisawa and Sophie Knight in Tokyo; Editing by Sanjeev Miglani and Eric Meijer)



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British Ministers Seek Support for Gay Marriage Law





LONDON — As the British Parliament prepared to vote Tuesday on a law permitting same-sex marriage that has divided church and state, senior cabinet ministers launched a last-minute attempt to deflect an embarrassing rebellion by Conservative lawmakers against Prime Minister David Cameron’s support for the new legislation.




A day after the newly-confirmed archbishop of Canterbury, Justin Welby, took office saying he shares the Church of England’s opposition to marriage between people of the same gender, three cabinet officials said in a letter published in The Daily Telegraph that the new legislation was “the right thing to do at the right time.”


“Marriage has evolved over time. We believe that opening it up to same-sex couples will strengthen, not weaken, the institution. Attitudes toward gay people have changed. A substantial majority of the public now favor allowing same sex couples to marry, and support has increased rapidly.”


The three ministers — George Osborne, the chancellor of the Exchequer, Foreign Secretary William Hague and Home Secretary Theresa May — also asked whether it was “any longer acceptable to exclude people from marriage simply because they love someone of the same sex.”


The debate has divided Britain’s Conservatives, who rule in uneasy coalition with the smaller Liberal Democrats. Political analysts forecast that, when the vote is held on Tuesday evening in Parliament, it will be approved despite opposition by scores of Conservative lawmakers because the bulk of Liberal Democrat and opposition Labour legislators are in favor.


However, that outcome could embarrass Mr. Cameron since he will be securing approval for a change that he has championed with the support of his political adversaries and in the teeth of opposition from within his own ranks. The size of the likely revolt among Conservative lawmakers is uncertain, but Mr. Cameron’s allies are trying to reduce it, seeing the vote as a test of his authority.


Opponents of the legislation say it will alienate traditional Conservative voters, jeopardizing Mr. Cameron’s prospects at the 2015 national election. But supporters say it will bring in new backing from outside the party.


Coincidentally, the vote is scheduled a day after Archbishop Welby, 57, was confirmed in his new post to replace the Most Rev. Rowan Williams, who has retired 10 years in office.


The new archbishop, the spiritual head of the world’s 77 million Anglicans, endorsed the traditional view that while the Church of England has no objection to civil partnerships between people of the same gender, it is, as a recent church statement put it, “committed to the traditional understanding of the institution of marriage as being between one man and one woman.”


Ed Miliband, the leader of the opposition Labour Party, said Monday that he would be “voting for equal marriage in the House of Commons, and I’ll be doing so proudly.” He also said he would urge his 255 legislators in the 649-member body to vote with him, although a small group will likely vote against.


“I’ll be voting for equal marriage for a very simple reason: I don’t think that the person you love should determine the rights you have,” Mr. Miliband said on Monday.


The legislation, which applies to England and Wales, would permit civil marriage between same-sex couples, but specifically exempt the Church of England and other faiths from an obligation to perform such ceremonies. Some faith groups, including the Quakers, have said they want the legal right to perform same-sex marriages.


In their letter, Mr. Osborne, Mr. Hague and Ms. May said: “Our party also has a strong belief in religious freedom, a vital element of a free society. The Bill ensures that no faith group will be forced to conduct same-sex marriages. The legal advice is clear that these protections for religious groups cannot be overturned by the courts.”


“Religious freedom works both ways. Why should faith groups, such as the Quakers, that wish to conduct gay marriages be forbidden from doing so? This Bill will enhance religious freedom, not restrict it.”


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Jillian Michaels: My Son Phoenix Is 'Fiery' Like Me




Celebrity Baby Blog





02/04/2013 at 03:00 PM ET



Jillian Michaels Biggest Loser TCAs
Gregg DeGuire/WireImage


Jillian Michaels‘ son Phoenix is already taking after his mama — just not the expected one!


Although The Biggest Loser trainer expected her baby boy to inherit her partner’s laidback approach to life — Heidi Rhoades delivered their son in May — the 8-month-old’s budding personality is the polar opposite.


“He wants to walk and he gets really pissed about it when he can’t. He gets frustrated,” Michaels, 38, told PEOPLE at the recent TCAs.


“He’s a fiery little sucker, he’s just like me. I’m like, ‘You were supposed to be like Heidi!’ But he’s not. It’s not good, not good.”

Admitting she is “terrified for when he’s a teenager,” Michaels has good reason to be: Recently she spotted her son — who is “crawling aggressively” — putting his electrician skills to the test in the family room.


“He’s into everything, which is kind of a nightmare to be totally honest,” she says. “We have an outlet in the floor in the living room and I caught him eating the outlet on the floor … I was like, ‘Mother of God!’”


Phoenix’s big sister Lukensia, 3, has also been busy keeping her mamas on their toes. “Lu just had her first ski trip and she had a little crush on her teacher, Ollie,” Michaels shares.


“At first I was like, ‘Oh my God, we’re letting our baby go!’ The second day we took her she ran right to him — loves Ollie.”


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Bullying study: It does get better for gay teens


CHICAGO (AP) — It really does get better for gay and bisexual teens when it comes to being bullied, although young gay men have it worse than their lesbian peers, according to the first long-term scientific evidence on how the problem changes over time.


The seven-year study involved more than 4,000 teens in England who were questioned yearly through 2010, until they were 19 and 20 years old. At the start, just over half of the 187 gay, lesbian and bisexual teens said they had been bullied; by 2010 that dropped to 9 percent of gay and bisexual boys and 6 percent of lesbian and bisexual girls.


The researchers said the same results likely would be found in the United States.


In both countries, a "sea change" in cultural acceptance of gays and growing intolerance for bullying occurred during the study years, which partly explains the results, said study co-author Ian Rivers, a psychologist and professor of human development at Brunel University in London.


That includes a government mandate in England that schools work to prevent bullying, and changes in the United States permitting same-sex marriage in several states.


In 2010, syndicated columnist Dan Savage launched the "It Gets Better" video project to encourage bullied gay teens. It was prompted by widely publicized suicides of young gays, and includes videos from politicians and celebrities.


"Bullying tends to decline with age regardless of sexual orientation and gender," and the study confirms that, said co-author Joseph Robinson, a researcher and assistant professor of educational psychology at the University of Illinois in Urbana-Champaign. "In absolute terms, this would suggest that yes, it gets better."


The study appears online Monday in the journal Pediatrics.


Eliza Byard, executive director of the Gay, Lesbian & Straight Education Network, said the results mirror surveys by her anti-bullying advocacy group that show bullying is more common in U.S. middle schools than in high schools.


But the researchers said their results show the situation is more nuanced for young gay men.


In the first years of the study, gay boys and girls were almost twice as likely to be bullied as their straight peers. By the last year, bullying dropped overall and was at about the same level for lesbians and straight girls. But the difference between men got worse by ages 19 and 20, with gay young men almost four times more likely than their straight peers to be bullied.


The mixed results for young gay men may reflect the fact that masculine tendencies in girls and women are more culturally acceptable than femininity in boys and men, Robinson said.


Savage, who was not involved in the study, agreed.


"A lot of the disgust that people feel when you bring up homosexuality ... centers around gay male sexuality," Savage said. "There's more of a comfort level" around gay women, he said.


Kendall Johnson, 21, a junior theater major at the University of Illinois, said he was bullied for being gay in high school, mostly when he brought boyfriends to school dances or football games.


"One year at prom, I had a guy tell us that we were disgusting and he didn't want to see us dancing anymore," Johnson said. A football player and the president of the drama club intervened on his behalf, he recalled.


Johnson hasn't been bullied in college, but he said that's partly because he hangs out with the theater crowd and avoids the fraternity scene. Still, he agreed, that it generally gets better for gays as they mature.


"As you grow older, you become more accepting of yourself," Johnson said.


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Online:


Pediatrics: http://www.pediatrics.org


It Gets Better: http://www.itgetsbetter.org


___


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


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Euro, oil slide on European worries, shares flat

LONDON (Reuters) - The euro and oil fell on Tuesday while European shares were largely flat as renewed worries over political risks in the euro zone trimmed demand for riskier assets for a second day.


A rise in political uncertainty in Spain, where the prime minister is facing calls to resign, and in Italy, which holds a general election later this month, provoked a big sell off on Monday, ending a solid new year rally.


The euro, which has taken the brunt of the selling, had risen 2.3 percent against the U.S. dollar this year to a high of just over $1.37 on Friday, before the selloff began and was down 0.4 percent at $1.3460 in early European trade.


The broad FTSE Eurofirst 300 index <.fteu3> of top European shares dropped 1.5 percent to its lowest level of the year on Monday, steadied to open up 0.1 percent up. Across Europe London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> were all recovering from the previous days sharp falls.


Most analysts see this week's selloff as a correction to a rally linked to signs of growing euro zone economic stability and an improving global outlook, which has been underpinned by the easier monetary policies of major central banks.


"What we are looking at, at the moment, is a correction, a consolidation or even a 'baby risk off', " said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.


"Nevertheless our working hypothesis remains that after the correction the trends in place before will continue as the two main drivers are still there; namely central banks continuing to inject liquidity and more and more proof of an economic recovery," he said.


Bond markets have also stabilized after a sharp rise in yields on Spanish and Italian debt and growing demand for safe-haven German government bonds. This followed a narrowing of spreads this year between peripheral and core government debt.


"We had a very strong rally in peripheral markets, strong spread compression in January which was probably faster than fundamentals were favoring, so we are in a correction. It's not a new trend, it's just a correction," Patrick Jacq, European rate strategist at BNP Paribas said.


(Additional reporting by Ana Nicolaci da Costa and Atul Prakash.)



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