Apple is tops in US in mobile phones: surveys

SAN FRANCISCO: Apple dethroned Samsung as the top US mobile phone vendor in the final quarter of last year, claiming a record share of 34 per cent, research firm Strategy Analytics reported Friday.

Apple shipped an estimated 17.7 million iPhones as "robust demand" for Internet connections on the move caused overall shipments of mobile phones to grow to 52 million in the United States, up four per cent from the same three-month period in 2011.

"Apple has become the number one mobile phone vendor by volume in the United States for the first time ever," Strategy Analytics said.

"Apple's success has been driven by its popular ecosystem of iPhones and App Store, generous carrier subsidies, and extensive marketing around the new iPhone 5 model."

South Korea-based Samsung shipped 16.8 million mobile phones in the US in the quarter, seeing its share of the market increase five per cent to 32 per cent but "not enough to hold off a surging Apple," according to Strategy Analytics.

Samsung had been the number one mobile phone vendor in the US since 2008 and will "surely be keen to recapture that title," the research firm said.

A separate survey highlighted Apple's top share of the smartphone market in the United States.

Industry tracker NPD Group said Apple held 39 per cent of the US smartphone market, even though its lead narrowed over Samsung, which boosted its market share to 30 per cent. A year earlier, Apple had 41 per cent to 21 per cent for Samsung, NPD figures showed.

"Even taking into account the tremendous sales growth of the Galaxy III and other Samsung smartphones, the iPhone is still king of the US-market hill," said NPD analyst Stephen Baker.

"In addition to strong US sales of iPhone 5, Apple has been bolstered by strong and continued demand for older, less-expensive iPhone models."

NPD said the iPhone 5 was the most popular smartphone in the US market in the past quarter, followed by the Samsung Galaxy S III.

The older versions of Apple's smartphone, the iPhone 4S and iPhone 4, were in third and fourth places, respectively, followed by Samsung's Galaxy S II, NPD said.

- AFP/jc

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Time has come to think in terms of high-speed trains, Bansal says

NEW DELHI: Railway minister Pawan Bansal on Friday said it was high time to think of high-speed trains to cater to the increasing demand of faster inter-city travel in a growing economy.

Considering the monetary constraints and high cost involved, Bansal stressed on the need to develop financial models for high speed train services to make them inclusive and a win-win proposition for all stakeholders.

Bansal called the project "aspirational" which involved very high cost but refused to give any timeframe for the launch of cost intensive bullet trains. "It will be difficult to say when we will have bullet trains. But we have started some preliminary work on it," he said.

"High speed train running at 350 kmph is our aspirational project. We have selected Mumbai-Ahmedabad route as a pilot project. But the cost involved in the 534-km long project is very high. It is estimated to cost about Rs 63,000 crore," Bansal said.

The minister argued that bullet trains should not remain confined to a particular class but should be "affordable for all".

"The experts will have to work on a financial model which will be win-win situation for all stakeholders. While these high-speed services are premium services, the Indian model needs to be worked out which makes it more affordable to bulk of the customers," Bansal said.

The railways has identified six high-speed corridors for techno-economic feasibility studies that includes Delhi-Agra-Patna, Howrah-Haldia, Chennai-Bangalore-Thiruvananthapuram and Pune-Mumbai-Ahmedabad.

The government has already identified Mumbai-Ahmedabad as the pilot project. A project steering group has been constituted to examine the options available for the project and suggest mechanisms for quickly moving forward.

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Healthier schools: Goodbye candy and greasy snacks

WASHINGTON (AP) — Goodbye candy bars and sugary cookies. Hello baked chips and diet sodas.

The government for the first time is proposing broad new standards to make sure all foods sold in schools are more healthful, a change that would ban the sale of almost all candy, high-calorie sports drinks and greasy foods on campus.

Under new rules the Department of Agriculture proposed Friday, school vending machines would start selling water, lower-calorie sports drinks, diet sodas and baked chips instead. Lunchrooms that now sell fatty "a la carte" items like mozzarella sticks and nachos would have to switch to healthier pizzas, low-fat hamburgers, fruit cups and yogurt.

The rules, required under a child nutrition law passed by Congress in 2010, are part of the government's effort to combat childhood obesity. While many schools already have made improvements in their lunch menus and vending machine choices, others still are selling high-fat, high-calorie foods.

Under the proposal, the Agriculture Department would set fat, calorie, sugar and sodium limits on almost all foods sold in schools. Current standards already regulate the nutritional content of school breakfasts and lunches that are subsidized by the federal government, but most lunch rooms also have "a la carte" lines that sell other foods. And food sold through vending machines and in other ways outside the lunchroom has not been federally regulated.

"Parents and teachers work hard to instill healthy eating habits in our kids, and these efforts should be supported when kids walk through the schoolhouse door," said Agriculture Secretary Tom Vilsack.

Most snacks sold in school would have to have less than 200 calories. Elementary and middle schools could sell only water, low-fat milk or 100 percent fruit or vegetable juice. High schools could sell some sports drinks, diet sodas and iced teas, but the calories would be limited. Drinks would be limited to 12-ounce portions in middle schools, and 8-ounce portions in elementary schools.

The standards will cover vending machines, the "a la carte" lunch lines, snack bars and any other foods regularly sold around school. They would not apply to in-school fundraisers or bake sales, though states have the power to regulate them. The new guidelines also would not apply to after-school concessions at school games or theater events, goodies brought from home for classroom celebrations, or anything students bring for their own personal consumption.

The new rules are the latest in a long list of changes designed to make foods served in schools more healthful and accessible. Nutritional guidelines for the subsidized lunches were revised last year and put in place last fall. The 2010 child nutrition law also provided more money for schools to serve free and reduced-cost lunches and required more meals to be served to hungry kids.

Iowa Sen. Tom Harkin, a Democrat, has been working for two decades to take junk foods out of schools. He calls the availability of unhealthful foods around campus a "loophole" that undermines the taxpayer money that helps pay for the healthier subsidized lunches.

"USDA's proposed nutrition standards are a critical step in closing that loophole and in ensuring that our schools are places that nurture not just the minds of American children but their bodies as well," Harkin said.

Last year's rules faced criticism from some conservatives, including some Republicans in Congress, who said the government shouldn't be telling kids what to eat. Mindful of that backlash, the Agriculture Department exempted in-school fundraisers from federal regulation and proposed different options for some parts of the rule, including the calorie limits for drinks in high schools, which would be limited to either 60 calories or 75 calories in a 12-ounce portion.

The department also has shown a willingness to work with schools to resolve complaints that some new requirements are hard to meet. Last year, for example, the government relaxed some limits on meats and grains in subsidized lunches after school nutritionists said they weren't working.

Schools, the food industry, interest groups and other critics or supporters of the new proposal will have 60 days to comment and suggest changes. A final rule could be in place as soon as the 2014 school year.

Margo Wootan, a nutrition lobbyist for the Center for Science in the Public Interest, says surveys done by her organization show that most parents want changes in the lunchroom.

"Parents aren't going to have to worry that kids are using their lunch money to buy candy bars and a Gatorade instead of a healthy school lunch," she said.

The food industry has been onboard with many of the changes, and several companies worked with Congress on the child nutrition law two years ago. Major beverage companies have already agreed to take the most caloric sodas out of schools. But those same companies, including Coca-Cola and PepsiCo, also sell many of the non-soda options, like sports drinks, and have lobbied to keep them in vending machines.

A spokeswoman for the American Beverage Association, which represents the soda companies, says they already have greatly reduced the number of calories kids are consuming at school by pulling out the high-calorie sodas.

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Follow Mary Clare Jalonick on Twitter at http://twitter.com/mcjalonick

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Ala. Hostage Suspect Had Court Date Scheduled

The retired Alabama trucker who shot a school bus driver and is now holding a kindergarten student in an underground bunker was scheduled to be in court Wednesday to answer for allegedly shooting at his neighbors in a dispute over a damaged speed bump.

Jimmy Lee Dykes, 65, has been holed up in a 6 by 8 foot bunker 4 feet underground with a 5-year-old autistic boy named Ethan since Tuesday, when he boarded a school bus and asked for two 6 to 8 year old boys. School bus driver Charles Albert Poland Jr., 66, was shot several times by Dykes, and died trying to protect the children.

Police said that they do not think that Dykes had any connection to Ethan, and that SWAT teams and police are negotiating with Dykes.

"I could tell you that negotiators continue to communicate with the suspect and that there's no reason to believe the child has been harmed," Sheriff Wally Olson said late Thursday.

Dykes' neighbor Claudia Davis told The Associated Press that he had yelled at her and fired his gun at her, her son James Davis, Jr. and her baby grandson after he claimed their truck caused damage to a speed bump in the dirt road near his property. No one was hurt, but Davis, Jr. told the AP that he believes the shooting and kidnapping are connected to the scheduled court hearing.

"I believe he thought I was going to be in court and he was going to get more charges than the menacing, which he deserved, and he had a bunch of stuff to hide and that's why he did it," he said.

Alabama Hostage Standoff: Boy, 5, Held Captive in Bunker Watch Video

Alabama 5-year-old Hostage: Negotiations Continue Watch Video

Alabama Child Hostage Situation: School Bus Driver Killed Watch Video

This was not Dykes' only run-in with people in the neighborhood, where he had come to be known as a menacing figure. Neighbor Ronda Wilbur told the AP that Dykes beat her 120-pound dog with a lead pipe when it entered the side of the dirt rode his trailer sits on. Wilbur said her dog died a week later.

Early last year, two pit bulls belonging to neighbors Mike and Patricia Smith escaped and got into his yard. Patricia Smith said that Dykes threatened to shoot her children when they went to retrieve them.

Neighbor Ronda Wilbur said that Dykes would be seen on his property at all hours of the day.

"It could be 2 o'clock in the morning, it could be midnight. He was out there either digging or moving dirt," she said.

As the underground standoff moved into its fourth day, tensions grow in this small community near Midland City, Ala., which is now enveloped by SWAT teams and police.

"That's an innocent kid. Let him go back to his parents, he's crying for his parents and his grandparents and he does not know what's going on," Midland City Mayor Virgil Skipper told ABC News. "Let this kid go."

Neighbor Jimmy Davis said that he has seen the bunker where Dykes has been known to hunker down for up to eight days.

"He's got steps made out of cinder blocks going down to it, Davis said. "It's lined with those red bricks all in it."

Police say he may have enough supplies to last him weeks.

Former FBI profiler and ABC News consultant Brad Garrett said there's a distinct reason why authorities are keeping details about Dykes under wraps.

"One of reasons they are keeping negations closed and not releasing his picture, is to try to insulate the situation, so they don't have a situation where they don't have to deal with his anger and rage," he said.

Meanwhile, children are trying to understand why this happened to their friend

"He always comes up to my house to play," 10-year-old Trisha Beaty told ABC News. "I miss him. I miss him a lot."

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Syria protests over Israel attack, warns of "surprise"

BEIRUT/AMMAN (Reuters) - Syria protested to the United Nations on Thursday over an Israeli air strike on its territory and warned of a possible "surprise" response.

The foreign ministry summoned the head of the U.N. force in the Israeli-occupied Golan Heights to deliver the protest a day after Israel hit what Syria said was a military research centre and diplomats said was a weapons convoy heading for Lebanon.

"Syria holds Israel and those who protect it in the Security Council fully responsible for the results of this aggression and affirms its right to defend itself, its land and sovereignty," Syrian television quoted it as saying.

The ministry said it considered Wednesday's Israeli attack to be a violation of a 1974 military disengagement agreement which followed their last major war, and demanded the U.N. Security Council condemn it unequivocally.

U.N. Secretary-General Ban Ki-moon expressed "grave concern". "The Secretary-General calls on all concerned to prevent tensions or their escalation," his office said, adding that international law and sovereignty should be respected.

Israel has maintained total silence over the attack, as it did in 2007 when it bombed a suspected Syrian nuclear site - an attack which passed without Syrian military retaliation.

In Beirut on Thursday Syria's ambassador said Damascus could take "a surprise decision to respond to the aggression of the Israeli warplanes". He gave no details but said Syria was "defending its sovereignty and its land".

Diplomats, Syrian rebels and security sources said Israeli jets bombed a convoy near the Lebanese border on Wednesday, apparently hitting weapons destined for Hezbollah. Syria denied the reports, saying the target was a military research centre northwest of Damascus and 8 miles from the border.

Hezbollah, which has supported Assad as he battles an armed uprising in which 60,000 people have been killed, said Israel was trying to thwart Arab military power and vowed to stand by its ally.

"Hezbollah expresses its full solidarity with Syria's leadership, army and people," said the group which fought an inconclusive 34-day war with Israel in 2006.

Russia, which has blocked Western efforts to put pressure on Syria at the United Nations, said any Israeli air strike would amount to unacceptable military interference.

"If this information is confirmed, we are dealing with unprovoked attacks on targets on the territory of a sovereign country, which blatantly violates the U.N. Charter and is unacceptable, no matter the motives," Russia's foreign ministry said.

Iranian deputy foreign minister Hossein Amir Abdullahian said the attack "demonstrates the shared goals of terrorists and the Zionist regime", Fars news agency reported. Syrian President Bashar al-Assad portrays the rebels fighting him as foreign-backed, Islamist terrorists, with the same agenda as Israel.

An aide to Supreme Leader Ayatollah Ali Khamenei said on Saturday Iran would consider any attack on Syria as an attack on itself.

In battle-torn Damascus, residents doubted Syria would fight back. One mother of five said she had heard retaliation would come later. "They always say that. They'll retaliate, but later, not now. Always later," she said, and laughed.

"The last thing we need now is Israeli fighter jets to add to our daily routine. As if we don't have enough noise and firing keeping us awake at night."

BLASTS SHOOK DISTRICT

Details of Wednesday's strike remain sketchy and, in parts, contradictory. Syria said Israeli warplanes, flying low to avoid detection by radar, crossed into its airspace from Lebanon and struck the Jamraya military research centre.

But the diplomats and rebels said the jets hit a weapons convoy heading from Syria to Lebanon and the rebels said they - not Israel - attacked Jamraya with mortars.

One former Western envoy to Damascus said the discrepancy between the accounts might be explained by Jamraya's proximity to the border and the fact that Israeli jets hit vehicles inside the complex as well as a building.

The force of the dawn attack shook the ground, waking nearby residents from their slumber with up to a dozen blasts, two sources in the area said.

"We were sleeping. Then we started hearing rockets hitting the complex and the ground started shaking and we ran into the basement," said a woman who lives adjacent to the Jamraya site.

The resident, who declined to be named because of the sensitivity over the strike, said she could not tell whether the explosions which woke her were the result of an aerial attack.

Another source who has a relative working inside Jamraya said a building inside the complex had been cordoned off and flames were seen rising from the area after the attack.

"It appears that there were about a dozen rockets that appeared to hit one building in the complex," the source, who also asked not to be identified, told Reuters. "The facility is closed today."

Israeli newspapers quoted foreign media on Thursday for reports on the attack. Journalists in Israel are required to submit articles on security and military issues to the censor, which has the power to block any publication of material it deems could compromise state security.

Syrian state television said two people were killed in the raid on Jamraya, which lies in the 25-km (15-mile) strip between Damascus and the Lebanese border. It described it as a scientific research centre "aimed at raising the level of resistance and self-defense".

Diplomatic sources from three countries told Reuters that chemical weapons were believed to be stored at Jamraya, and that it was possible that the convoy was near the large site when it came under attack. However, there was no suggestion that the vehicles themselves had been carrying chemical weapons.

"The target was a truck loaded with weapons, heading from Syria to Lebanon," said one Western diplomat, echoing others who said the convoy's load may have included anti-aircraft missiles or long-range rockets.

The raid followed warnings from Israel that it was ready to act to prevent the revolt against Assad leading to Syria's chemical weapons and modern rockets reaching either his Hezbollah allies or his Islamist enemies.

A regional security source said Israel's target was weaponry given by Assad's military to fellow Iranian ally Hezbollah.

Such a strike or strikes would fit Israel's policy of pre-emptive covert and overt action to curb Hezbollah and does not necessarily indicate a major escalation of the war in Syria. It does, however, indicate how the erosion of the Assad family's rule after 42 years is seen by Israel as posing a threat.

Israel this week echoed concerns in the United States about Syrian chemical weapons, but its officials say a more immediate worry is that the civil war could see weapons that are capable of denting its massive superiority in airpower and tanks reaching Hezbollah; the group fought Israel in 2006 and remains a more pressing threat than its Syrian and Iranian sponsors.

(Additional reporting by Mariam Karouny and Oliver Holmes in Beirut, Gabriela Baczynska in Moscow and Marcus George in Dubai; editing by David Stamp and Philippa Fletcher)

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Wall Street Journal says hit by Chinese hackers too

WASHINGTON: The Wall Street Journal said Thursday its computers were hit by Chinese hackers, the latest US media organisation citing an effort to spy on its journalists covering China.

The Journal made the announcement a day after The New York Times said hackers, possibly connected to China's military, had infiltrated its computers in response to its expose of the vast wealth amassed by a top leader's family.

The Journal said in a news article that the attacks were "for the apparent purpose of monitoring the newspaper's China coverage" and suggests that Chinese spying on US media "has become a widespread phenomenon."

"Evidence shows that infiltration efforts target the monitoring of the Journal's coverage of China, and are not an attempt to gain commercial advantage or to misappropriate customer information," said a statement from Paula Keve of Journal parent Dow Jones, a unit of Rupert Murdoch's News Corp.

The Journal gave no timeline for the attacks but said a network overhaul to bolster security had been completed on Thursday.

"We fully intend to continue the aggressive and independent journalism for which we are known," Keve said.

On Wednesday, The New York Times reported that hackers have over the past four months infiltrated computer systems and stole staff passwords.

The effort has been particularly focused on the emails of Shanghai bureau chief David Barboza, the newspaper said.

According to a Barboza story published on October 25, close relatives of Chinese Premier Wen Jiabao have made billions of dollars in business dealings.

"Chinese hackers, using methods that some consultants have associated with the Chinese military in the past, breached The Times' network," the newspaper said, citing a wealth of digital evidence gathered by its security experts.

The newspaper said the IT consultants believed the attacks "started from the same university computers used by the Chinese military to attack United States military contractors in the past."

The hackers stole corporate passwords and targeted the computers of 53 employees including former Beijing bureau chief Jim Yardley, who is now the Times' South Asia bureau chief based in India.

The Times said Bloomberg News was also targeted by Chinese hackers, after publishing in June a report on the wealth accumulated by relatives of Xi Jinping. In November, Xi was elevated to leader of the Chinese Communist Party.

In a related development, CNN said its international service went down for several minutes in response to its reporting on the hacking at the New York Times.

"CNNI went dark for 6 minutes," said a tweet from CNN International anchor Hala Gorani. "#China blacks out CNN for @HalaGorani interview on hacking of @nytimes."

In Beijing, China dismissed any notion that it was involved in any hacking.

"The competent Chinese authorities have already issued a clear response to the groundless accusations made by the New York Times," Foreign Ministry spokesman Hong Lei told reporters in Beijing.

"China is also a victim of hacking attacks," he said. "Chinese laws clearly forbid hacking attacks, and we hope relevant parties take a responsible attitude on this issue."

The US online security firm Symantec, cited by the New York Times for having failed to prevent the infiltration, issued its own statement deflecting any blame.

"Advanced attacks like the ones the New York Times described... underscore how important it is for companies, countries and consumers to make sure they are using the full capability of security solutions," the company said.

"Turning on only the signature-based anti-virus components of endpoint solutions alone are not enough in a world that is changing daily from attacks and threats."

- AFP/jc

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Manmohan assures Pawar over Telangana, says still to decide on timing

NEW DELHI: Formation of Telangana appeared that bit closer on Thursday after Prime Minister Manmohan Singh reportedly said the government only has to decide upon the timing of the announcement.

NCP chief and agriculture minister Sharad Pawar told reporters that Singh indicated to him that the ongoing deliberations in Congress were only about when to announce the decision. Pawar's comment was interpreted as an indication that the government may have already decided to create Telangana.

Pawar said he had raised the Telangana issue with the PM after the meeting of the Cabinet and had told Singh that an early decision will help Congress. According to Pawar, Singh agreed with him and assured that only the timing of the announcement remained to be clinched.

It marks the strongest confirmation of what Congress announced a day earlier to settle all doubts on which way the vexed issue was headed. AICC spokesman PC Chacko had on Wednesday said that the ruling party was committed to statehood for Telangana and the only delay was on account of fulfilling constitutional obligations and deciding when the decision for statehood be made public.

The agitation-prone region has been roiled in fresh turbulence after the Centre failed to meet the deadline given by home minister Sushilkumar Shinde to clinch the issue. Shinde had in December last week told an all-party meeting that the Centre would close the protracted debate by January 28.

The fresh agitation, led by Telangana Rashtra Samithi, has brought Congress MPs and MLAs from the region under pressure to quit.

While the PM's reported assurance to Pawar suggests the fate of united Andhra is decided, it also indicated that there appeared a growing unanimity in the ruling coalition on the tricky subject. A meeting of UPA can be called soon to seek a final stamp of approval.

The NCP chief said he had met Singh to stress on early creation of the new state. "A delay will not be helpful to us," Pawar said, reminding Congress that UPA had made pro-Telangana commitment in its common minimum programme in 2004.

Pawar added that NCP would back the demand for separate Vidarbha out of Maharashtra if there was a popular sentiment in its favour.

The growing chorus for division of Andhra Pradesh seems to be the last chapter in a battle of wits that has paralyzed the Andhra government for three years since the death of anti-Telangana Congress strongman YS Rajasekhara Reddy.

A section of Congress and other state parties is opposed to division of AP. Congress is confident that it may be able to deal with resultant backlash in the Coastal and Rayalaseema region. The party is seeking to cut its losses in Telangana where it is at the receiving end of a popular sentiment for new state. The rebellion of YSR's son Jagamohan Reddy has put Congress on the defensive in other regions and Congress believes it can position itself strongly in at least Telangana by being on the right side of its aspiration.

Congress had announced Telangana on December 9, 2009, but then made a U-turn days later, triggering agitations that have not ceased ever since.

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Hedgehog Alert! Prickly pets can carry salmonella

NEW YORK (AP) — Add those cute little hedgehogs to the list of pets that can make you sick.

In the last year, 20 people were infected by a rare but dangerous form of salmonella bacteria, and one person died in January. The illnesses were linked to contact with hedgehogs kept as pets, according to a report released Thursday by the Centers for Disease Control and Prevention.

Health officials on Thursday say such cases seem to be increasing.

The CDC recommends thoroughly washing your hands after handling hedgehogs and cleaning pet cages and other equipment outside.

Other pets that carry the salmonella bug are frogs, toads, turtles, snakes, lizards, chicks and ducklings.

Seven of the hedgehog illnesses were in Washington state, including the death — an elderly man from Spokane County who died in January. The other cases were in Alabama, Illinois, Indiana, Michigan, Minnesota, Ohio and Oregon.

In years past, only one or two illnesses from this salmonella strain have been reported annually, but the numbers rose to 14 in 2011, 18 last year, and two so far this year.

Children younger than five and the elderly are considered at highest risk for severe illness, CDC officials said.

Hedgehogs are small, insect-eating mammals with a coat of stiff quills. In nature, they sometimes live under hedges and defend themselves by rolling up into a spiky ball.

The critters linked to recent illnesses were purchased from various breeders, many of them licensed by the U.S. Department of Agriculture, CDC officials said. Hedgehogs are native to Western Europe, New Zealand and some other parts of the world, but are bred in the United States.

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Online:

CDC report: http://www.cdc.gov/mmwr

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Negotiations Drag Out for 5-Year-Old Hostage

An Alabama community is on edge today, praying for a 5-year-old boy being held hostage by a retired man who police say abducted him at gunpoint Tuesday afternoon.

Nearly 40 hours have slowly passed since school bus driver Charles Albert Poland Jr., 66, heroically tried to prevent the kidnapping, but was shot to death by suspect Jimmy Lee Dykes, a former truck driver, police said.

Dykes boarded the bus Tuesday and said he wanted two boys, 6 to 8 years old. As the children piled to the back of the bus, Dykes, 65, allegedly shot Poland four times, then grabbed the child at random and fled, The Associated Press reported.

Worst Hostage Crises: Some of the World's Worst Situations

The primary concern in the community near Midland City, Ala., is now for the boy's safety. Dale County police have not identified the child.

Mickey Welsh/Montgomery Advertiser/AP

Alabama Child Hostage Situation: School Bus Driver Killed Watch Video

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"I believe in prayer, so I just pray that we can resolve this peacefully," Dale County sheriff Wally Olson said.

The boy is being held in a bunker about 8 feet below ground, where police say Dykes likely has enough food and supplies to remain underground for weeks. Dykes has been communicating with police through a pipe extending from the bunker to the surface.

It is unclear whether he has made any demands from the bunker-style shelter on his property.

The young hostage is a child with autism. Dykes has allowed the boy to watch television, and have some medication, police said

Multiple agencies have responded to the hostage situation, Dale County Sheriff Wally Olson said. The FBI has assumed the lead in the investigation, and SWAT teams were surrounding the bunker.

"A lot of law enforcement agencies here doing everything they possibly can to get this job done," Olson said.

Former FBI lead hostage negotiator Chris Voss said that authorities must proceed with caution.

"You make contact as quickly as you can, but also as gently as you can," he said. "You don't try to be assertive; you don't try to be aggressive."

Voss said patience is important in delicate situations such as this.

"The more patient approach they take, the less likely they are to make mistakes," he said.

"They need to move slowly to get it right, to communicate properly and slowly and gently unravel this."

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Egypt curfew scaled back as Mursi seeks end to bloodshed

CAIRO/BERLIN (Reuters) - Egyptian authorities scaled back a curfew imposed by President Mohamed Mursi, and the Islamist leader cut short a visit to Europe on Wednesday to deal with the deadliest violence in the seven months since he took power.

Two more protesters were shot dead before dawn near Cairo's central Tahrir Square on Wednesday, a day after the army chief warned that the state was on the brink of collapse if Mursi's opponents and supporters did not end street battles.

More than 50 people have been killed in the past seven days of protests by Mursi's opponents marking the second anniversary of the uprising that toppled Hosni Mubarak.

Mursi imposed a curfew and a state of emergency on three Suez Canal cities on Sunday - Port Said, Ismailia and Suez. That only seemed to further provoke crowds. However, violence has mainly subsided in those towns since Tuesday.

Local authorities pushed back the start of the curfew from 9:00 p.m. to 2:00 a.m. in Ismailia and to 1:00 a.m. in Port Said and Suez.

"There has been progress in the security situation since Monday. Calm has returned," Suez Governor Samir Aglan said.

Mursi, speaking in Berlin before hurrying home to deal with the crisis, called for dialogue with opponents but would not commit to their demand that he first agree to include them in a unity government.

He sidestepped a question about a possible unity government, saying the next cabinet would be formed after parliamentary elections in April.

Egypt was on its way to becoming "a civilian state that is not a military state or a theocratic state", Mursi said.

The violence at home forced Mursi to scale back his European visit, billed as a chance to promote Egypt as a destination for foreign investment. He flew to Berlin but called off a trip to Paris and was due back home after only a few hours in Europe.

Chancellor Angela Merkel, who met him, echoed other Western leaders who have called on him to give his opponents a voice.

"One thing that is important for us is that the line for dialogue is always open to all political forces in Egypt, that the different political forces can make their contribution, that human rights are adhered to in Egypt and that of course religious freedom can be experienced," she said at a joint news conference with Mursi.

SPIRIT OF REVOLUTION

Mursi's critics accuse him of betraying the spirit of the revolution by keeping too much power in his own hands and those of his Muslim Brotherhood, the Islamist movement banned under Mubarak which won repeated elections since the 2011 uprising.

Mursi's supporters say the protesters want to overthrow Egypt's first democratically elected leader. The current unrest has deepened an economic crisis that saw the pound currency tumble in recent weeks.

Near Cairo's Tahrir Square on Wednesday morning, dozens of protesters threw stones at police who fired back teargas, although the scuffles were brief.

"Our demand is simply that Mursi goes, and leaves the country alone. He is just like Mubarak and his crowd who are now in prison," said Ahmed Mustafa, 28, a youth who had goggles on his head to protect his eyes from teargas.

Opposition politician Mohamed ElBaradei called for a meeting of the president, ministers, the ruling party and the opposition to halt the violence. But he also restated the precondition that Mursi first commit to seeking a national unity government.

The worst violence has been in the Suez Canal city of Port Said, where rage was fuelled by death sentences passed against soccer fans for roles in deadly riots last year.

After decades in which the West backed Mubarak's military rule of Egypt, the emergence of an elected Islamist leader in Cairo is probably the single most important change brought about by the wave of Arab revolts over the past two years.

Mursi won backing from the West last year for his role in helping to establish a ceasefire between Israel and Palestinians that ended a conflict in Gaza. But he then followed that with an effort to fast-track a constitution that reignited dissent at home and raised global concern over Egypt's future.

Western countries were alarmed this month by video that emerged showing Mursi making vitriolic remarks against Jews and Zionists in 2010 when he was a senior Brotherhood official.

German Foreign Minister Guido Westerwelle said ahead of Mursi's visit that the remarks, in which Mursi referred to Zionists as "descendants of apes and pigs" were "unacceptable".

"NOT AGAINST JEWS"

Asked about those remarks at the news conference with Merkel, Mursi repeated earlier explanations that they had been taken out of context.

"I am not against the Jewish faith," he said. "I was talking about the practices and behavior of believers of any religion who shed blood or who attack innocent people or civilians. That's behavior that I condemn."

"I am a Muslim. I'm a believer and my religion obliges me to believe in all prophets, to respect all religions and to respect the right of people to their own faith," he added.

Egypt's main liberal and secularist bloc, the National Salvation Front, has so far refused talks with Mursi unless he promises a unity government including opposition figures.

"Stopping the violence is the priority, and starting a serious dialogue requires committing to guarantees demanded by the National Salvation Front, at the forefront of which are a national salvation government and a committee to amend the constitution," ElBaradei said on Twitter.

Those calls have also been backed by the hardline Islamist Nour party - rivals of Mursi's Brotherhood. Nour and the Front were due to meet on Wednesday, signaling an unlikely alliance of Mursi's critics from opposite ends of the political spectrum.

Brotherhood leader Mohamed El-Beltagy dismissed the unity government proposal as a ploy for the Front to take power despite having lost elections. On his Facebook page he ridiculed "the leaders of the Salvation Front, who seem to know more about the people's interests than the people themselves".

In a sign of the toll the unrest is having on Egypt's economy, ratings agency Fitch downgraded its sovereign rating by one notch to B on Wednesday.

(Additional reporting by Tom Perry, Yasmine Saleh and Marwa Awad in Cairo, Yusri Mohamed in Ismailia and Stephen Brown and Gernot Heller in Berlin; Writing by Peter Graff)

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