US stocks dive after Fed minutes

NEW YORK: US stocks piled up losses Wednesday after Federal Reserve minutes showed divisions over asset purchases, with some officials suggesting to wind them down before the jobs market picks up.

The Dow Jones Industrial Average finished down 108.13 points (0.77 percent) at 13,927.54.

The S&P 500-stock index fell 18.99 points (1.24 percent) to 1,511.95 and the tech-rich Nasdaq Composite dropped 49.18 points (1.53 percent) to 3,164.41, dragged down by heavyweight Apple, off 2.4 percent.

After opening mostly lower amid mixed housing and wholesale inflation data, the indexes hit fresh session lows after the Fed released the minutes of the January 29-30 Federal Open Market Committee meeting.

A "number" of participants said that an ongoing evaluation of the $85 billion per month asset purchases "might well lead the committee to taper or end its purchases before it judged that a substantial improvement in the outlook for the labor market had occurred," the minutes said.

Paul Edelstein of IHS Global Insight said in a research note that "if markets do not expect the Fed to stay the course, then expectations for economic growth and inflation will stay depressed and demand for safe assets (cash and government securities) will remain high."

Office Depot and OfficeMax meanwhile confirmed their merger after a premature announcement of the news.

The all-stock merger would create an $18 billion office supplies retailer. Office Depot shares slumped 16.7 percent and OfficeMax shed 7.0 percent.

Hotel chain Marriott fell 2.7 percent after posting quarterly results that missed expectations.

Luxury home builder Toll Brothers also suffered from disappointing earnings, losing 9.1 percent.

Dell, which reported a 32 percent profit fall in 2012 that was nevertheless slightly better than expected, rose 0.2 percent.

Yahoo! fell 1.7 percent after unveiling a new homepage.

Sony slid 1.2 percent ahead of its PlayStation 4 news conference

The bond market was mixed. The yield on the 10-year Treasury bond fell to 2.02 percent from 2.03 percent late Tuesday, while the 30-year edged up to 3.21 percent from 3.20 percent. Bond prices and yields move inversely.

-AFP/ac

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Trade unions' strike: Stick backfires, Mamata Banerjee offers carrot to traders

KOLKATA: Chastened by the widespread outrage among traders—who kept their shutters down despite her brandishing a stick, making Day One of the strike called by central trade unions a partial success—chief minister Mamata Banerjee decided to hand out carrots to the few who answered her call and kept their shops open on Wednesday.

Sources said Mamata asked mayor Sovon Chatterjee to work out an incentive to reward shop-owners who stayed open so that it encourages others to follow suit the next time. The decision was taken on the spur of the moment during an inspection of the city the CM undertook with the mayor in the early afternoon.

Mamata was initially taken aback at the sight of downed shutters in the wholesale belt of Burrabazar and Posta, but was relieved to see the vegetable market in Sealdah open.

Sources said the incentive idea struck her when she realized that cancelling the trade licences of those who stayed shut is not an option: the state will have to punish about 85% shopkeepers in the city then.

"I thank everyone who has opened their shop," Mamata said. "More shops are expected to open in the next half of the day. As for those that stayed shut, the high court has issued an order and the law will take its course."

Chatterjee said: "We are making a list of shops that were open. We will reward them." But officials in the Kolkata Municipal Corporation's licence department said there is no such rule and implementing the reward scheme will be difficult.

Mamata's decision to discuss the matter only with Forum of Traders' Organization (West Bengal) general secretary Rabindranath Koley boomeranged as other federations were aggrieved and did all they could to foil the government's efforts to keep shops open.

"Traders have shown politicians that they will not be scared into submission," said Tarak Trivedi of the Federation of Trade Organization that claims 50 lakh businessmen as members. "Treat us with respect and we will extend a helping hand."

On Tuesday, it was Koley who had announced the decision to take "uncooperative" traders to task. On Wednesday, he did the task of mollifying.

He said the CM is trying out various measures to lure traders away from the culture of staying at home during strikes. "In Kankurgachi, VIP, New Market, Gariahat, Lake Market and elsewhere, 50% shops were open," Koley said. "That is a long way from the scenes in the past when everything would be shut. The trading community is timid and needs to be encouraged to defy political strikes."

Timidity was, however, not the trait traders displayed when they defied the CM's threat of licence cancellation. "Had she called all the trade organizations and appealed to us to stay open, an overwhelming majority of shop-owners would have complied," said Atmaram Kajaria, president of the Federation of West Bengal Trade Association that claims to represent two crore traders in the state. "But by issuing a threat that is impractical and impossible to carry out, the CM suffered a loss of face that she could have easily avoided."

Though all trade unions, barring Citu, have decided to continue with the strike on Thursday, trade bodies said the scene will be different in Kolkata and most shops will open for business.

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Florida governor backs limited Medicaid expansion

MIAMI (Reuters) - Florida Governor Rick Scott backed a limited expansion of healthcare coverage for the poor on Wednesday, joining six other Republican governors who have agreed to the move under President Barack Obama's landmark reform law.

Scott, a vocal critic of the law known as Obamacare who had balked at expanding Medicaid, only agreed to the expansion after the federal government granted Florida a conditional waiver to privatize Medicaid statewide.

Scott said in a statement that he would only agree to the expansion for three years, however, while the federal government picks up all the costs.

"We will support a three year expansion of our Medicaid program under the new healthcare law, as long as the federal government meets their commitment to pay 100 percent of the cost during this time. This legislation would sunset after three years and need to be reauthorized," the statement said.

Scott's conditional endorsement of an expanded Medicaid program in Florida, a move that officials have said could add at least 1 million people to the state's Medicaid rolls, must still be approved by the Florida Legislature.

(Reporting by Tom Brown; editing by Andrew Hay)

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Armstrong Snubs Offer From Anti-Doping Officials

Lance Armstrong has turned down what may be his last chance at reducing his lifetime sporting ban.

Armstrong has already admitted in an interview with Oprah Winfrey to a career fueled by doping and deceit. But to get a break from the U.S. Anti-Doping Agency, all he had to do was tell his story to those who police sports doping. The deadline was today, and Armstrong now says he won't do it.

"For several reasons, Lance will not participate in USADA's efforts to selectively conduct American prosecutions that only demonize selected individuals while failing to address the 95 percent of the sport over which USADA has no jurisdiction," said Tim Herman, Armstrong's longtime lawyer. "Lance is willing to cooperate fully and has been very clear: He will be the first man through the door, and once inside will answer every question, at an international tribunal formed to comprehensively address pro cycling."

But the "international tribunal" Armstrong is anxious to cooperate with has one major problem: It doesn't exist.

The UCI, cycling's governing body, has talked about forming a "truth and reconciliation" commission, but the World Anti-Doping Agency has resisted, citing serious concerns about the UCI and its leadership.

READ MORE: Armstrong Admits to Doping

Livestrong, Elizabeth Kreutz/AP Photo

READ MORE: Lance Armstrong May Have Lied to Winfrey: Investigators

WATCH: Armstrong's Many Denials Caught on Tape

U.S. Anti-Doping Agency officials seemed stunned by Armstrong's decision simply to walk away.

"Over the last few weeks, he [Armstrong] has led us to believe that he wanted to come in and assist USADA, but was worried of potential criminal and civil liability if he did so," said Travis Tygart, CEO of the U.S. Anti-Doping Agency. "Today, we learned from the media that Mr. Armstrong is choosing not to come in and be truthful and that he will not take the opportunity to work toward righting his wrongs in sport."

Armstrong's ongoing saga plays out amid a backdrop of serious legal problems.

Sources believe one reason Armstrong wants to testify to an international tribunal, rather than USADA, is because perjury charges don't apply if Armstrong lies to a foreign agency, they told ABC News.

While Armstrong has admitted doping, he has not given up any details, including the people and methods required to pull off one of the greatest scandals in all of sport.

Armstrong is facing several multimillion-dollar lawsuits right now, but his biggest problems may be on the horizon. As ABC News first reported, a high-level source said a criminal investigation is ongoing. And the Department of Justice also reportedly is considering joining a whistleblower lawsuit claiming the U.S. Postal Service was defrauded out of millions of dollars paid to sponsor Armstrong's cycling team.

READ MORE: 10 Scandalous Public Confessions

PHOTOS: Olympic Doping Scandals: Past and Present

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Syria "Scud-type" missile said to kill 20 in Aleppo

AMMAN (Reuters) - A Syrian missile killed at least 20 people in a rebel-held district of Aleppo on Tuesday, opposition activists said, as the army turns to longer-range weapons after losing bases in the country's second-largest city.

The use of what opposition activists said was a large missile of the same type as Russian-made Scuds against an Aleppo residential district came after rebels overran army bases over the past two months from which troops had fired artillery.

As the uprising against President Bashar al-Assad, now a civil war, nears its two-year mark, rebels also landed three mortar bombs in the rarely-used presidential palace compound in the capital Damascus, opposition activists said on Tuesday.

The United Nations estimates 70,000 people have been killed in the conflict between largely Sunni Muslim rebels and Assad's supporters among his minority Alawite sect. An international diplomatic deadlock has prevented intervention, as the war worsens sectarian tensions throughout the Middle East.

A Russian official said on Tuesday that Moscow, which is a long-time ally of Damascus, would not immediately back U.N. investigators' calls for some Syrian leaders to face the International Criminal Court for war crimes.

Moscow has blocked three U.N. Security Council resolutions that would have increased pressure on Assad.

Casualties are not only being caused directly by fighting, but also by disruption to infrastructure and Syria's economy.

An estimated 2,500 people in a rebel-held area of northeastern Deir al-Zor province have been infected with typhoid, which causes diarrhea and can be fatal, due to drinking contaminated water from the Euphrates River, the World Health Organization (WHO) said on Tuesday.

"There is not enough fuel or electricity to run the pumps so people drink water from the Euphrates which is contaminated, probably with sewage," the WHO representative in Syria, Elisabeth Hoff, told Reuters by telephone.

The WHO had no confirmed reports of deaths so far.

BURIED UNDER RUBBLE

In northern Aleppo, opposition activists said 25 people were missing under rubble of three buildings hit by a several-meter-long missile. They said remains of the weapon showed it to be a Scud-type missile of the type government forces increasingly use in Aleppo and in Deir a-Zor.

NATO said in December Assad's forces fired Scud-type missiles. It did not specify where they landed but said their deployment was an act of desperation.

Bodies were being gradually dug up, Mohammad Nour, an activist, said by phone from Aleppo.

"Some, including children, have died in hospitals," he said.

Video footage showed dozens of people scouring for victims and inspecting damage. A body was pulled from under collapsed concrete. At a nearby hospital, a baby said to have been dug out from wreckage was shown dying in the hands of doctors.

Reuters could not independently verify the reports.

Opposition activists also reported fighting near the town of Nabak on the Damascus-Homs highway, another route vital for supplying forces in the capital loyal to Assad, whose family has ruled Syria since the 1960s.

Rebels moved anti-aircraft guns into the eastern Damascus district of Jobar, adjacent to the city centre, as they seek to secure recent gains, an activist said.

"The rebels moved truck-mounted anti-aircraft guns to Jobar and are now firing at warplanes rocketing the district," said Damascus activist Moaz al-Shami.

Russian Deputy Foreign Minister Gennady Gatilov told a news conference a U.N. war crimes report, which accuses military leaders and rebels of terrorizing civilians, was "not the path we should follow ... at this stage it would be untimely and unconstructive."

Syria is not party to the Rome Statute that established the ICC and the only way the court can investigate the situation is if it receives a referral from the Security Council, where Moscow is a permanent member.

(Writing by Oliver Holmes; Editing by Jason Webb)

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BP vows to "vigorously defend" itself at US oil spill trial

CHICAGO: British energy giant BP vowed Tuesday to "vigorously defend" itself in court next week against US government claims for "excessive" fines in the 2010 Gulf of Mexico oil spill disaster.

Prosecutors shot back with a warning that they will be fighting for the stiffest penalties possible at a blockbuster trial which opens Monday with tens of billions of dollars at stake.

"The United States is fully prepared for trial," Wyn Hornbuckle, a spokesman for the US Department of Justice, told AFP.

"We intend to prove that BP was grossly negligent and engaged in willful misconduct in causing the oil spill."

The mammoth trial in a New Orleans, Louisiana federal courthouse consolidates scores of remaining lawsuits stemming from the worst environmental disaster to strike the United States.

The first phase of the trial will focus on liability for the April 20, 2010 explosion that sank the BP-leased Deepwater Horizon drilling rig off the coast of Louisiana.

The blast killed 11 people and unleashed millions of barrels of oil into the Gulf, blackening beaches in five states and crippling tourism and fishing industries.

It took 87 days to cap BP's runaway well in a tragedy that riveted the nation.

BP is fighting civil penalties which could amount to as much as $21 billion if gross negligence is found.

"Gross negligence is a very high bar that BP believes cannot be met in this case," Rupert Bondy, group general counsel at BP, said in a statement.

"This was a tragic accident, resulting from multiple causes and involving multiple parties."

In addition to fighting the federal government over environmental fines, BP is also seeking to shift some of the liability to its subcontractors, drilling rig operator Transocean and Halliburton, which was responsible for the well's faulty cement job.

BP pleaded guilty in November to criminal charges -- including felony manslaughter -- and agreed to pay a record $4.5 billion in criminal fines.

It reached a $7.8 billion settlement early last year that will cover the bulk of the outstanding private claims for economic loss, property damage and medical problems.

It has paid out $10 billion to businesses, individuals and local governments impacted by the spill and spent more than $14 billion on the response and cleanup.

BP also remains on the hook for billions in additional damages, including the cost of environmental rehabilitation.

But while it was willing to settle the civil charges on "reasonable terms" BP said it will not accept the US government's assertion of gross negligence, or its estimation of how much oil was spilled.

"Faced with demands that are excessive and not based on reality or the merits of the case, we are going to trial," Bondy said in the statement.

"We have confidence in our case and in the legal team representing the company and defending our interests."

In a preview of an argument that will not reach trial until the second phase begins later this year, BP said the official US government estimate that 4.9 million barrels of oil was unleashed from the runaway well was "overstated" by at least 20 percent.

"BP believes that a figure of 3.1 million barrels should be the uppermost limit of the number of barrels spilled that should be used in calculating a Clean Water Act penalty," it said.

Meanwhile, the judge overseeing the consolidated trial on Tuesday approved a $1 billion settlement for civil penalties against rig operator Transocean.

The decision came after a $400 million settlement of criminal penalties against the Swiss drilling giant was approved last week.

Transocean pleaded guilty to one criminal count of violating the Clean Water Act and agreed to pay the $400 million fine for negligence that led to the explosion of the Deepwater Horizon rig.

The $1 billion civil penalty is for fines related to the oil spilled into the Gulf.

It is also responsible for implementing measures to improve operational safety and emergency response capabilities at all their drilling rigs working in waters of the United States.

-AFP/ac

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Sukhoi crashes in Rajasthan, pilots eject safely

NEW DELHI: A frontline Sukhoi-30MKI fighter crashed at the Pokhran range in Rajasthan on Tuesday evening. The two experienced pilots, Squadron Leaders G B S Chauhan and A R Tanta, managed to eject safely.

While the court of inquiry will establish the exact reason behind the crash, preliminary reports blamed a "technical snag" for the mishap. The aircraft was undertaking night-flying drills as part of rehearsals for the massive IAF fire power display at the Pokhran range slated for February 22 when the technical problem took place around 7.20 pm.

The over 160 Sukhois inducted by IAF till now — 272 of them have been contracted from Russia in deals worth Rs 55,717 crore - were "temporarily grounded" at Pune, Bareilly, Tezpur, Chabua and other airbases after one had crashed in December 2011. The probe then had blamed the failure of the fly-by-wire (FBW) system for the crash.

IAF chief Air Chief Marshal N A K Browne had himself taken to the skies in a Sukhoi within a week to show "all was well" with India's latest and most potent fighters, which are progressively being based on both the western and eastern fronts against Pakistan and China.

The Sukhois, with just four crashes in around 90,000 hours of flying over the last 13 years, have had a good track-record with IAF. But with the bulk of the 272 Sukhois ordered being manufactured by HAL under transfer of technology from Russia, a hard-nosed look at quality, maintenance and servicing issues at the defence PSU is certainly needed.

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Costlier robotic surgery soars for hysterectomies

CHICAGO (AP) — Robotic surgery is increasingly being used for women's hysterectomies, adding at least $2,000 to the cost without offering much benefit over less high-tech methods, a study found.

The technique was used in just 0.5 percent of operations studied in 2007, but that soared to almost 10 percent by early 2010. Columbia University researchers analyzed data on more than 260,000 women who had their wombs removed at 441 U.S. hospitals for reasons other than cancer. The database covered surgeries performed through the first few months of 2010.

Women who had the robotic operations were slightly less likely to spend more than two days in the hospital, but hospital stays were shorter than that for most women. Also, complications were equally rare among robotic surgery patients and those who had more conventional surgeries. Average costs for robotic hysterectomies totaled nearly $9,000, versus about $3,000 for the least expensive method, a different type of minimally invasive technique using more conventional surgery methods.

Traditionally hysterectomies were done by removing the womb through a large abdominal incision. Newer methods include removing the uterus through the vagina and minimally invasive "keyhole" abdominal operations using more conventional surgery methods, or surgeon-controlled robotic devices.

Robotic operations involve computer-controlled long, thin robot-like "arms" equipped with tiny surgery instruments. Surgeons operate the computer and can see inside the body on the computer screen, through a tiny camera attached to the robotic arms. The initial idea was for surgeons to do these operations miles away from the operating room, but robotic operations now are mostly done with the surgeon in the same room as the patient.

Theoretically, robotic surgeries make it easier to maneuver inside the patient, and are increasingly used for many types of operations, not just hysterectomies.

The main explanation for the big increase "is that robotic surgery has been marketed extensively to not only hospitals and physicians, but also directly to patients. There is minimal data in gynecology that it is advantageous," said Dr. Jason Wright, an assistant professor of women's health and the study's lead author.

The study was published Tuesday in the Journal of the American Medical Association.

"Our findings highlight the importance of developing rational strategies to implement new surgical technologies," the researchers wrote.

They note that 1 in 9 U.S. women will undergo a hysterectomy, usually after the age of 40. Reasons include fibroids and other non-cancerous growths, abnormal bleeding, and cancer.

Traditional abdominal operations remain common and more than 40 percent of women studied had them, costing on average about $6,600.

A JAMA editorial says the study doesn't answer whether the robotic method might be better for certain women, and says more research comparing methods is needed. Still, it says doctors and hospitals have a duty to inform patients about costs of different surgery options.

Dr. Myriam Curet of manufacturer Intuitive Surgical of Sunnyvale, Calif., said surgical robots can help surgeons overcome the limitations of other minimally invasive methods for very overweight patients, those with scarring from other surgeries and other complexities.

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

Robotic surgery: http://tinyurl.com/byuljds

___

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

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Report Fingers Chinese Military Unit in US Hacks

A Virginia-based cyber security firm has released a new report alleging a specific Chinese military unit is likely behind one of the largest cyber espionage and attack campaigns aimed at American infrastructure and corporations.

In the report, released today by Mandiant, China's Unit 61398 is blamed for stealing "hundreds of terabytes of data from at least 141 organizations" since 2006, including 115 targets in the U.S. Twenty different industrial sectors were targeted in the attacks, Mandiant said, from energy and aerospace to transportation and financial institutions.

Mandiant believes it has tracked Unit 61398 to a 12-story office building in Shanghai that could employ hundreds of workers.

"Once [Unit 61398] has established access [to a target network], they periodically revisit the victim's network over several months or years and steal broad categories of intellectual property, including technology blueprints, proprietary manufacturing processes, test results, business plans, pricing documents, partnership agreements, and emails and contact lists from victim organizations' leadership," the report says.

The New York Times, which first reported on the Mandiant paper Monday, said digital forensic evidence presented by Mandiant pointing to the 12-story Shangai building as the likely source of the attacks has been confirmed by American intelligence officials. Mandiant was the firm that The Times said helped them investigate and eventually repel cyber attacks on their own systems in China last month.

Peter Parks/AFP/Getty Images

The Chinese government has repeatedly denied involvement in cyber intrusions and Chinese Foreign Ministry spokesperson Hong Lei said today that the claims in the Mandiant report were unsupported, according to a report by The Associated Press.

"To make groundless accusations based on some rough material is neither responsible nor professional," he reportedly said.

Mandiant's report was released a week after President Obama said in his State of the Union address that America must "face the rapidly growing threat from cyber attack."

"We know hackers steal people's identities and infiltrate private e-mail. We know foreign countries and companies swipe our corporate secrets. Now our enemies are also seeking the ability to sabotage our power grid, our financial institutions, and our air traffic control systems. We cannot look back years from now and wonder why we did nothing in the face of real threats to our security and our economy," he said.

Though Obama did not reference China or any country specifically, U.S. officials have previously accused the Asian nation of undertaking a widespread cyber espionage campaign.

Referring to alleged Chinese hacking in October 2011, House Intelligence Committee Chairman Rep. Mike Rogers (R-Mich.) said in an open committee meeting that he did not believe "that there is a precedent in history for such a massive and sustained intelligence effort by a government agency to blatantly steal commercial data and intellectual property."

Rogers said that cyber intrusions into American and other Western corporations by hackers working on behalf of Beijing -- allegedly including attacks on corporate giants like Google and Lockheed Martin -- amounted to "brazen and widespread theft."

"The Chinese have proven very, very good at hacking their way into very large American companies that spend a lot of money trying to protect themselves," cyber security expert and ABC News consultant Richard Clarke said in an interview last week.

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Time to refer Syrian war crimes to ICC: U.N. inquiry

GENEVA (Reuters) - United Nations investigators said on Monday that Syrian leaders they had identified as suspected war criminals should face the International Criminal Court (ICC).

The investigators urged the U.N. Security Council to "act urgently to ensure accountability" for violations, including murder and torture, committed by both sides in an uprising and civil war that has killed about 70,000 people since March 2011.

"Now really it's time ... We have a permanent court, the International Criminal Court, who would be ready to take this case," Carla del Ponte, a former ICC chief prosecutor who joined the U.N. team in September, told a news briefing in Geneva.

But because Syria is not party to the Rome Statute that established the ICC, the only way the court can investigate the situation is if it receives a referral from the Security Council. Russia, Assad's long-standing ally and a permanent veto-wielding member of the council, has opposed such a move.

"We cannot decide. But we pressure the international community to decide because it's time to act," del Ponte said.

Brazilian expert Paulo Pinheiro, who leads the U.N. inquiry set up in 2011, said: "We are in very close dialogue with all the five permanent members and with all the members of the Security Council, but we don't have the key that will open the path to cooperation inside the Security Council."

His team of some two dozen experts is tracing the chain of command in Syria to establish criminal responsibility and build a case for eventual prosecution.

"Of course we were able to identify high-level perpetrators," del Ponte said, adding that these were people "in command responsibility...deciding, organizing, planning and aiding and abetting the commission of crimes".

She said it was urgent for the Hague-based war crimes tribunal to take up cases of "very high officials", but did not identify them, in line with the inquiry's practice.

"We have crimes committed against children, rape and sexual violence. We have grave concerns. That is also one reason why an international body of justice must act because it is terrible."

Del Ponte, who tried former Yugoslav President Slobodan Milosevic at the International Criminal Tribunal for the Former Yugoslavia on war crimes charges, said the ICC prosecutor would need to deepen the investigation on Syria before an indictment could be prepared.

Karen Koning AbuZayd, an American member of the U.N. team, told Reuters it had information pointing to "people who have given instructions and are responsible for government policy, people who are in the leadership of the military, for example".

The inquiry's third roster of suspects, building on lists drawn up in the past year, remains secret. It will be entrusted to U.N. High Commissioner for Human Rights Navi Pillay upon expiry of its mandate at the end of March, the report said.

Pillay, a former ICC judge, said on Saturday Assad should be investigated for war crimes, and called for outside action on Syria, including possible military intervention.

Pinheiro said the investigators would not speak publicly about "numbers, names or levels" of suspects.

SEVEN MASSACRES IDENTIFIED

The investigators' latest report, covering the six months to mid-January, was based on 445 interviews conducted abroad with victims and witnesses, as they have not been allowed into Syria.

"We identified seven massacres during the period, five on the government side, two on the armed opponents' side. We need to enter the sites to be able to confirm elements of proof that we have," del Ponte said.

The U.N. report said the ICC was the appropriate institution for the fight against impunity in Syria. "As an established, broadly supported structure, it could immediately initiate investigations against authors of serious crimes in Syria."

Government forces have carried out shelling and air strikes across Syria including Aleppo, Damascus, Deraa, Homs and Idlib, the 131-page report said, citing corroborating satellite images.

"Government forces and affiliated militias have committed extra-judicial executions, breaching international human rights law. This conduct also constitutes the war crime of murder. Where murder was committed as part of a widespread or systematic attack against a civilian population, with knowledge of that attack, it is a crime against humanity," the report said.

Those forces have targeted bakery queues and funeral processions to spread "terror among the civilian population".

Rebels fighting to topple Assad have also committed war crimes including murder, torture, hostage-taking and using children under age 15 in hostilities, the U.N. report said.

"They continue to endanger the civilian population by positioning military objectives inside civilian areas" and rebel snipers had caused "considerable civilian casualties", it said.

George Sabra, a vice president of the opposition Syrian National Coalition, asked about the U.N. report, told Reuters at a conference in Stockholm: "We condemn all kind of crimes, regardless who did it.

"We can't ignore that some mistakes have been made and maybe still happen right now. But nobody also can ignore that the most criminal file is that of the regime."

(This story has been corrected to fix name of Milosevic tribunal in 11th paragraph)

(Reporting by Stephanie Nebehay; additional reporting by Anna Ringstrom in Stockholm; Editing by Mark Heinrich)

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