EU drug regulator OKs Novartis' meningitis B shot

LONDON (AP) — Europe's top drug regulator has recommended approval for the first vaccine against meningitis B, made by Novartis AG.

There are five types of bacterial meningitis. While vaccines exist to protect against the other four, none has previously been licensed for type B meningitis. In Europe, type B is the most common, causing 3,000 to 5,000 cases every year.

Meningitis mainly affects infants and children. It kills about 8 percent of patients and leaves others with lifelong consequences such as brain damage.

In a statement on Friday, Andrin Oswald of Novartis said he is "proud of the major advance" the company has made in developing its vaccine Bexsero. It is aimed at children over two months of age, and Novartis is hoping countries will include the shot among the routine ones for childhood diseases such as measles.

Novartis said the immunization has had side effects such as fever and redness at the injection site.

Recommendations from the European Medicines Agency are usually adopted by the European Commission. Novartis also is seeking to test the vaccine in the U.S.

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Afghanistan says Pakistan will help in peace talks

KABUL, Afghanistan (AP) — A top Afghan peace mediator hailed Pakistan's recent decision to free nine members of the Taliban who favor negotiations, saying Saturday it was a sign Islamabad is willing to help bring the militant group to the table and end Afghanistan's 11-year-old war.

The cooperation of Pakistan, which has longstanding ties to the Taliban, is seen as key to jumpstarting the stalled Afghan peace process. The Afghan and U.S. governments accuse Islamabad of backing insurgents — an allegation Pakistan denies — and say many militant leaders are hiding in the country.

Afghanistan needs Pakistan's help in reaching out to top Taliban leaders, but still insists that peace talks be led by Afghans, saying it will fight those who try to interfere.

Salahuddin Rabbani, the head of the High Peace Council who led a delegation to Islamabad this week, said Pakistan's prisoner release marked a shift in the neighboring country's policy. In the past, the Pakistanis have arrested Taliban figures interested in peace talks with the Afghan government, he said, but now the government is releasing them and pledging to give them safe passage to negotiations.

"It seems that Pakistani officials have realized that a close cooperation between Afghanistan and Pakistan can be effective for the peace initiative," Rabbani said. "Of course, this is a vision we have been insisting on for a long time."

Rabbani, whose delegation spent four days in Islamabad this week meeting with high-ranking government, political and religious leaders, said Pakistan has pledged to release additional Taliban prisoners who will be allowed to stay in Pakistan, return to Afghanistan or seek residence in a third country. While nothing can guarantee they won't rejoin Taliban fighters, Rabbani said he was confident that they would continue to cooperate with the peace council. "We will be in contact with those released," he said.

Some members of the peace council suggested that Pakistan's religious and political leadership might be having a change of heart — in part because of violence committed by Pakistan's branch of the Taliban movement.

"This is the first time that we really saw some changing of the minds while we were speaking," said Qayumuddin Kashaf, a member of peace council and head of the top religious council in Afghanistan. He said that in the past, Pakistani religious leaders insisted that insurgents were waging a holy war in Afghanistan. "Now we see some changing of the mindset because the security situation in Pakistan is very bad if not worse than Afghanistan."

Others in Kabul believe, however, that Pakistan may simply be playing a waiting game, trying to appease Afghanistan with small gestures until international troops leave Afghanistan and the Taliban can try to mount a comeback.

Despite the prisoner release, the peace process still has little traction and has experienced many setbacks, including the assassination of Rabbani's father in September 2011. Burhanuddin Rabbani, a former Afghan president and the first leader of the peace council, was killed in his Kabul home by a suicide bomber posing as an emissary from the Taliban.

It's unclear whether the Taliban are interested in negotiating peace, but the insurgent group welcomed the release of the prisoners. "Without a doubt, releasing prisoners fosters confidence between two neighboring countries and their nations," Taliban spokesman Zabihullah Mujahid said in a statement issued Friday.

During the delegation's trip, both countries appealed to the Taliban to join the peace process and sever ties with al-Qaida and other international terror networks. They said Pakistan, Afghanistan and the United States would provide safe passage to members of the Taliban who want to talk with negotiators.

They agreed to work with the international community to remove prospective Taliban negotiators from the U.N. sanctions list so they can participate in any peace talks. The sanctions include a travel ban, arms embargo and assets freeze.

Afghanistan and Pakistan also agreed to hold a conference of religious leaders and scholars from Islamic countries to address violence in the name of Islam, council members said.

The peace council did not identify the prisoners who were freed, but an Afghan official familiar with the peace process gave The Associated Press a list of eight. They were:

—Nooruddin Turabi, former Taliban justice minister.

—Jahangirwal, a special assistant to Taliban leader, Mullah Omar.

—Qutub, a Taliban leader.

—Abdul Salaam, former Taliban governor of Baghlan province.

—Maulvi Matiullah, the Taliban's director of the customs house in Kabul.

—Mahamad, the Taliban's former governor of Kunduz province.

—Sayed Saduddin Agha, a former Taliban commander.

—Allah Dad, the Taliban's former deputy minister of communication.

The ninth prisoner released was Anwarul Haq Mujahid, the son of the late Mohammad Yunus Khalis, who fought against the Soviets in Afghanistan in the 1980s. He has joined his family in the northwestern Pakistani city of Peshawar, according to a cousin and family friend who spoke on condition of anonymity because they were not authorized to talk to the media.

Afghan officials are still hoping for the release of the Taliban's former deputy leader, Mullah Abdul Ghani Baradar, who was captured in Pakistan in 2010. Baradar was reportedly conducting talks with the Afghan government that were kept secret from the Pakistanis.

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Lady Gaga tweets some racy images before concert

BUENOS AIRES, Argentina (AP) — Lady Gaga's tweets were getting a lot of attention ahead of her Buenos Aires concert Friday night.

The Grammy-winning entertainer has more than 30 million followers on Twitter and that's where she shared a link this week to a short video showing her doing a striptease and fooling around in a bathtub with two other women.

She told her followers that it's a "surprise for you, almost ready for you to TASTE."

Then, in between concerts in Brazil and Argentina, she posted a picture Thursday on her Twitter page showing her wallowing in her underwear and impossibly high heels on top of the remains of what appears to be a strawberry shortcake.

"The real CAKE isn't HAVING what you want, it's DOING what you want," she tweeted.

Lady Gaga wore decidedly unglamorous baggy jeans and a blouse outside her Buenos Aires hotel Thursday as three burly bodyguards kept her fans at bay. Another pre-concert media event where she was supposed to be given "guest of honor" status by the city government Friday afternoon was cancelled.

After Argentina, she is scheduled to perform in Santiago, Chile; Lima, Peru; and Asuncion, Paraguay, before taking her "Born This Way Ball" tour to Africa, Europe and North America.

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EU drug regulator OKs Novartis' meningitis B shot

LONDON (AP) — Europe's top drug regulator has recommended approval for the first vaccine against meningitis B, made by Novartis AG.

There are five types of bacterial meningitis. While vaccines exist to protect against the other four, none has previously been licensed for type B meningitis. In Europe, type B is the most common, causing 3,000 to 5,000 cases every year.

Meningitis mainly affects infants and children. It kills about 8 percent of patients and leaves others with lifelong consequences such as brain damage.

In a statement on Friday, Andrin Oswald of Novartis said he is "proud of the major advance" the company has made in developing its vaccine Bexsero. It is aimed at children over two months of age, and Novartis is hoping countries will include the shot among the routine ones for childhood diseases such as measles.

Novartis said the immunization has had side effects such as fever and redness at the injection site.

Recommendations from the European Medicines Agency are usually adopted by the European Commission. Novartis also is seeking to test the vaccine in the U.S.

Read More..

Israel hits Hamas government buildings, reservists mobilized

GAZA/JERUSALEM (Reuters) - Israeli aircraft bombed Hamas government buildings in Gaza on Saturday, including the prime minister's office, after Israel's cabinet authorized the mobilization of up to 75,000 reservists in preparation for a possible ground invasion.

Palestinian militants in Gaza kept up cross-border salvoes, firing a rocket at Israel's biggest city Tel Aviv for the third straight day. Police said it was destroyed in mid-air by an Iron Dome anti-missile battery deployed hours earlier, and no one was injured.

Hamas, the Palestinian Islamist group that runs the Gaza Strip, said Israeli missiles wrecked the office building of Prime Minister Ismail Haniyeh - where he had met on Friday with the Egyptian prime minister - and struck a police headquarters.

In the Israeli Mediterranean port of Ashdod, a rocket ripped into several balconies. Police said five people were hurt.

With Israeli tanks and artillery positioned along the Gaza border and no end in sight to hostilities now in their fourth day, Tunisia's foreign minister travelled to the enclave in a show of Arab solidarity.

Officials in Gaza said 41 Palestinians, nearly half of them civilians including eight children and a pregnant woman, had been killed since Israel began its air strikes. Three Israeli civilians were killed by a rocket on Thursday.

In Cairo, a presidential source said Egyptian President Mohamed Mursi would hold four-way talks with the Qatari emir, the prime minister of Turkey and Hamas chief Khaled Meshaal in the Egyptian capital on Saturday to discuss the Gaza crisis.

Egypt has been working to reinstate calm between Israel and Hamas after an informal ceasefire brokered by Cairo unraveled over the past few weeks. Meshaal, who lives in exile, has already held a round of talks with Egyptian security officials.

Israel uncorked its massive air campaign on Wednesday with the declared goal of deterring Hamas from launching rockets that have plagued its southern communities for years. The salvoes recently intensified, and are now displaying greater range.

The operation has drawn Western support for what U.S. and European leaders have called Israel's right to self-defense, along with appeals to both sides to avoid civilian casualties.

Hamas, shunned by the West over its refusal to recognize Israel, says its cross-border attacks have come in response to Israeli strikes against Palestinian fighters in Gaza.

"We have not limited ourselves in means or in time," Israeli Foreign Minister Avigdor Lieberman said on Israel's Channel One television. "We hope that it will end as soon as possible, but that will be only after all the objectives have been achieved."

Hamas says it is committed to continued confrontation with Israel and is eager not to seem any less resolute than smaller, more radical groups that have emerged in Gaza in recent years.

The Islamist movement has ruled Gaza since 2007. Israel pulled settlers out of Gaza in 2005 but maintains a blockade of the tiny, densely populated coastal territory.

RESERVE TROOP QUOTA DOUBLED

At a late night session on Friday, Israel's cabinet decided to more than double the current reserve troop quota set for the Gaza offensive to 75,000, political sources said.

The move did not necessarily mean all would be called up or that an invasion would follow. Tanks and self-propelled guns were seen near the sandy border zone on Saturday, and around 16,000 reservists have already been summoned to active duty.

The Gaza conflagration has stirred the pot of a Middle East already boiling from two years of Arab revolution and a civil war in Syria that threatens to spread beyond its borders.

U.N. Secretary-General Ban Ki-moon is expected to visit Israel and Egypt next week to push for an end to the fighting in Gaza, U.N. diplomats said on Friday.

Hamas's armed wing claimed responsibility for Saturday's rocket attack on Tel Aviv, saying it had fired a longer-range, Iranian-designed Fajr-5 at the coastal metropolis, some 70 km (43 miles) north of the Gaza Strip.

After air raid sirens sounded, witnesses saw two white plumes rise into the sky over the southern outskirts of Tel Aviv and heard an explosion when the incoming rocket was hit.

The anti-missile battery had been due to take delivery of its fifth Iron Dome battery early next year but it was rushed into service near Tel Aviv after rockets were launched toward the city on Thursday and Friday. Those attacks caused no damage or casualties.

In Jerusalem, targeted by a Palestinian rocket on Friday for the first time in 42 years, there was little outward sign on the Jewish Sabbath that the attack had any impact on the usually placid pace of life in the holy city.

In Gaza, some families abandoned their homes - some of them damaged and others situated near potential Israeli targets - and packed into the houses of friends and relatives.

ISRAEL'S GAZA TARGETS

The Israeli army said it had zeroed in on a number of government buildings during the night, including Haniyeh's office, the Hamas Interior Ministry and a police compound.

Taher al-Nono, a spokesman for the Hamas government, held a news conference near the rubble of the prime minister's office and pledged: "We will declare victory from here."

A three-storey house belonging to Hamas official Abu Hassan Salah was also hit and totally destroyed early on Saturday. Rescuers said at least 30 people were pulled from the rubble.

In Washington, U.S. President Barack Obama commended Egypt's efforts to help defuse the Gaza violence in a call to Mursi on Friday, the White House said in a statement, and underscored his hope of restoring stability there.

On Friday, Egyptian Prime Minister Hisham Kandil paid a high-profile visit to Gaza, denouncing what he called Israeli aggression and saying Cairo was prepared to mediate a truce.

Egypt's Islamist government, freely elected after U.S.-backed autocrat Hosni Mubarak fell to a popular uprising last year, is allied with Hamas but Cairo is also party to a 1979 peace treaty with Israel.

In a call to Netanyahu, Obama discussed options for "de-escalating" the situation, the White House said, adding that the president "reiterated U.S. support for Israel's right to defend itself, and expressed regret over the loss of Israeli and Palestinian civilian lives".

Hamas fighters are no match for the Israeli military. The last Gaza war, involving a three-week long Israeli air blitz and ground invasion over the New Year period of 2008-09, killed over 1,400 Palestinians, mostly civilians. Thirteen Israelis died.

But few believe Israeli military action can snuff out militant rocket fire entirely without a reoccupation of Gaza, an option all but ruled out because it would risk major casualties and an international outcry.

While Hamas rejects the Jewish state's existence, Palestinian President Mahmoud Abbas, who rules in areas of the nearby West Bank not occupied by Israelis, does recognize Israel but peace talks between the two sides have been frozen since 2010.

(Additional reporting by Maayan Lubell, Jeffrey Heller and Ori Lewis in Jerusalem and Louis Charbonneau at the United Nations; Writing by Jeffrey Heller; Editing by Mark Heinrich)

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Pakistan releases son of Afghan militant leader

PESHAWAR, Pakistan (AP) — The son of a legendary Afghan mujahedeen leader was among a group of Taliban prisoners released by Pakistan to help jumpstart peace negotiations with the militant group, the man's cousin and a family friend said Friday.

The decision to release the prisoners is seen as a signal to neighboring Afghanistan that Pakistan might be willing to take concrete steps to revive efforts to lure the group to the negotiating table.

Pakistan released Anwarul Haq Mujahid on Thursday, and he joined his family in the northwestern Pakistani city of Peshawar, said the cousin and family friend, speaking on condition of anonymity because they were not authorized to talk to the media.

Mujahid is the son of the late Maulvi Mohammad Yunus Khalis who fought against the Soviets in Afghanistan in the 1980s. Khalis, who was once invited to the White House by former President Ronald Regan, died in 2006.

Afghan officials said Thursday that Pakistan freed eight Taliban prisoners and agreed to release many more. Mujahid was not among the eight listed by the Afghan officials, which means at least nine prisoners have been freed.

The most prominent prisoner freed was former Justice Minister Nooruddin Turabi who served when the Taliban ruled Afghanistan.

The U.S. and its allies fighting in Afghanistan are pushing to strike a peace deal with the Taliban so they can withdraw most of their troops by the end of 2014. The prisoner release could help, but considerable obstacles remain. It is unclear whether the Taliban even intend to take part in the process, rather than just wait until foreign forces withdraw.

Pakistan is seen as key to the peace process. Islamabad has ties to the Taliban that date back to the 1990s, and many of the group's leaders are believed to be based on Pakistani territory, having fled there following the U.S.-led invasion of Afghanistan in 2001.

Also Friday, a Pakistani lawyer accused the military of sending thugs to beat him up after he challenged the army chief in court.

Inam Ur Raheem, a retired military lawyer, said three vehicles surrounded his taxi Wednesday night in the garrison city of Rawalpindi. Several unidentified men jumped out and attacked him with sticks, leaving him with cuts and bruises. He claimed they said they were there to teach him a lesson.

The attack came a day after Raheem filed a petition in the Islamabad High Court challenging the validity of a three-year extension given to army chief Gen. Ashfaq Parvez Kayani in 2010.

The army denied any role in the attack Friday, calling Raheem's allegations baseless.

The New York Times first reported the attack Thursday.

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Associated Press writer Munir Ahmed contributed to this report from Islamabad.

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Jason Mraz to make historic appearance in Myanmar

NASHVILLE, Tenn. (AP) — Jason Mraz will make history next month when he performs in Myanmar to raise awareness about human trafficking.

Mraz will headline a free outdoor concert on Dec. 16 at People's Square in Yangon, at the base of Shwedagon Pagoda.

The Grammy-winning singer-songwriter is believed to be the first international artist to perform an open-air concert in the country. The show includes local acts and is hosted by MTV EXIT, the music channel's initiative to raise awareness about human trafficking and exploitation.

"That's pretty exciting," Mraz said of the history involved, "and I'm going there with an enormous amount of gratitude and respect, and I hope we can actually make a difference. I hope it's also a testament to the songs. I've always wanted my songs to be about healing and self-empowerment, and if this is the way MTV is acknowledging that, then I am incredibly grateful."

The show, which will include local acts, will be broadcast on Myanmar national television and will air on MTV's international network in 2013. Mraz hosted a similar concert in the Philippines last year. He first became interested in the issue about four years ago when he attended the Freedom Awards, an annual salute to those working against human exploitation put on by the organization Free the Slaves.

"I thought this was something that was abolished when Abraham Lincoln signed the Emancipation Proclamation, but all it did is become hidden from our view," Mraz said in a phone interview from Zurich, Switzerland. "There was a recent estimate that there are about 27 million people enslaved on the planet, certainly due to hard economic times not just in the Western world but certainly in Third World countries. Humans as a commodity is a great way to run your business. So I signed on, lent my voice, lent my music to the cause."

Myanmar is opening itself to the world since a military junta ceded power to a new elected government last year. President Thein Sein's government has pushed the country toward democracy, and this Monday Barack Obama is scheduled to become the first sitting U.S. president to visit the country.

Mraz says there is concern predators will prey on the vulnerable in this time of great flux. The concert offers an opportunity to "educate, empower and engage." The 35-year-old singer says he plans to tailor his show to the message.

"I do curate a set list that I feel is going to be part of that educate, empower and engage (theme)," he said. "Obviously songs like 'I'm Yours,' 'I Won't Give Up' are great examples. Or '93 Million Miles' is a new one where it's about believing in yourself. And a lot of my songs are about that, about believing in yourself and really going for your dreams. Those are the kinds of songs I'll be playing at that show."

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MTV is a unit of Viacom Inc.

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Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott .

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EU drug regulator OKs Novartis' meningitis B shot

LONDON (AP) — Europe's top drug regulator has recommended approval for the first vaccine against meningitis B, made by Novartis AG.

There are five types of bacterial meningitis. While vaccines exist to protect against the other four, none has previously been licensed for type B meningitis. In Europe, type B is the most common, causing 3,000 to 5,000 cases every year.

Meningitis mainly affects infants and children. It kills about 8 percent of patients and leaves others with lifelong consequences such as brain damage.

In a statement on Friday, Andrin Oswald of Novartis said he is "proud of the major advance" the company has made in developing its vaccine Bexsero. It is aimed at children over two months of age, and Novartis is hoping countries will include the shot among the routine ones for childhood diseases such as measles.

Novartis said the immunization has had side effects such as fever and redness at the injection site.

Recommendations from the European Medicines Agency are usually adopted by the European Commission. Novartis also is seeking to test the vaccine in the U.S.

Read More..

Petraeus testifies on Benghazi attack

WASHINGTON (AP) — Ex-CIA Director David Petraeus told lawmakers during private hearings Friday that he believed all along that the deadly attack on the U.S. consulate in Libya was a terrorist strike, even though that wasn't how the Obama administration initially described it publicly.

The retired four-star general addressed the House and Senate intelligence committees as questions continue to persist over what the Obama administration knew in the immediate aftermath of the Sept. 11 attacks and why their public description did not match intelligence agencies' assessments.

Lawmakers said Petraeus testified that the CIA's draft talking points written in response to the assault on the diplomat post in Benghazi that killed four Americans referred to it as a terrorist attack. But Petraeus told the lawmakers that reference was removed from the final version, although he wasn't sure which federal agency took out the reference.

Photos: Players in the Petraeus scandal

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Democrats said Petraeus made it clear the change was not made for political reasons during President Barack Obama's re-election campaign.

"The general was adamant there was no politicization of the process, no White House interference or political agenda," said Rep. Adam Schiff, D-Calif. "He completely debunked that idea."

But Republicans are still critical of the administration's handling of the case. Sen. Marco Rubio, R-Fla., said Petraeus' testimony showed that "clearly the security measures were inadequate despite an overwhelming and growing amount of information that showed the area in Benghazi was dangerous, particularly on the night of September 11."

Petraeus, who had a long and distinguished military career, was making his first Capitol Hill testimony since resigning last week in disgrace over an extramarital affair with his biographer Paula Broadwell. Lawmakers said he did not discuss that scandal except to express regret about the circumstances of his departure and say that Benghazi had nothing to do with his decision to resign.

Petraeus testified that the CIA draft written in response to the raid referred to militant groups Ansar al-Shariah and al-Qaida in the Islamic Maghreb but those names were replaced with the word "extremist" in the final draft, according to a congressional staffer. The staffer said Petraeus testified that he allowed other agencies to alter the talking points as they saw fit without asking for final review, to get them out quickly.

The staffer wasn't authorized to discuss the hearing publicly and described Petraeus' testimony to The Associated Press on a condition of anonymity.

Sen. Mark Udall, D-Colo., said Petraeus explained that the CIA's draft points were sent to other intelligence agencies and to some federal agencies for review. Udall said Petraeus told them the final document was put in front of all the senior agency leaders, including Petraeus, and everyone signed off on it.

"The assessment that was publicly shared in unclassified talking points went through a process of editing," Udall said. "The extremist description was put in because in an unclassified document you want to be careful who you identify as being involved."

Rep. Peter King, R-N.Y., said it's still not clear how the final talking points emerged used by U.N. Ambassador Susan Rice five days after the attack when the White House sent her to appear in a series of television interviews. Rice said it appeared the attack was sparked by a spontaneous protest over an anti-Muslim video.

"The fact is, the reference to al-Qaida was taken out somewhere along the line by someone outside the intelligence community," King said. "We need to find out who did it and why."

King said Petraeus had briefed the House committee on Sept. 14 and he does not recall Petraeus being so positive at that time that it was a terrorist attack. "He thought all along that he made it clear there was terrorist involvement," King said. "That was not my recollection."

Schiff said Petraeus said Rice's comments in the television interviews "reflected the best intelligence at the time that could be released publicly."

"There was an interagency process to draft it, not a political process," Schiff said. "They came up with the best assessment without compromising classified information or source or methods. So changes were made to protect classified information.

Sen. Kent Conrad, D-N.D., said it's clear that Rice "used the unclassified talking points that the entire intelligence community signed off on, so she did completely the appropriate thing." He said the changes made to the draft accounts for the discrepancies with some of the reports that were made public showing that the intelligence community knew it was a terrorist attack all along.

Lawmakers spent hours Thursday interviewing top intelligence and national security officials, trying to determine what intelligence agencies knew before, during and after the attack. They viewed security video from the consulate and surveillance footage by an unarmed CIA Predator drone that showed events in real time.

The congressional staffer told the AP that they also watched the cellphone video that has been on YouTube showing U.S. Ambassador Chris Stevens being carried out by people who looked like they were trying to rescue him.

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Associated Press writers Nedra Pickler, Larry Margasak and Andrew Miga contributed to this report.

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Xi takes China's helm with many tough challenges

BEIJING (AP) — Long-anointed successor Xi Jinping assumed the leadership of China on Thursday as the ruling Communist Party confronts slower economic growth, a public clamor to end corruption and demands for change that threaten its hold on power.

The country's political elite named Xi to the top party post and unexpectedly put him in charge of the military too, after a weeklong party congress and months of divisive bargaining.

The appointments give him broad authority, but not the luxury of time. After decades of juggernaut growth, China sits on the cusp of global pre-eminence as the second largest economy and newest power, but it also has urgent domestic troubles that could frustrate its rise.

Problems that have long festered — from the sputtering economy to friction with the U.S. and territorial spats with Japan and other neighbors — have worsened in recent months as the leadership focused on the power transfer. Impatience has grown among entrepreneurs, others in the new middle class and migrant workers — all wired by social media and conditioned by two decades of rising living standards to expect better government, if not democracy.

All along, police have continued to harass and jail a lengthening list of political foes, dissidents, civil rights lawyers and labor activists. A 14-year-old Tibetan set himself on fire in western China on Thursday, in the latest of more than 70 self-immolations Tibetans have staged over the past 20 months in desperate protests against Chinese rule.

In his first address to the nation, Xi, a 59-year-old son of a revolutionary hero, acknowledged the lengthy agenda for what should be the first of two five-year terms in office. He promised to deliver better social services while making sure China stands tall in the world and the party continues to rule.

"Our responsibility now is to rally and lead the entire party and the people of all ethnic groups in China in taking over the historic baton and in making continued efforts to achieve the great renewal of the Chinese nation," a confident Xi said in nationally televised remarks in the Great Hall of the People.

He later said "we are not complacent, and we will never rest on our laurels" in confronting challenges — corruption chief among them.

By his side stood the six other newly appointed members of the Politburo Standing Committee: Li Keqiang, the presumptive premier and chief economic official; Vice Premier Zhang Dejiang; Shanghai party secretary Yu Zhengsheng; propaganda chief Liu Yunshan; Tianjin party secretary Zhang Gaoli; and Vice Premier Wang Qishan, once the leadership's top troubleshooter who will head the party's internal watchdog panel.

Xi gave no hint of new thinking to address the problems. The lack of specifics and the new leadership heavy with conservative technocrats deflated expectations for change in some quarters.

"We should be expecting more of the same, not some fundamental break from the past," said Dali Yang of the University of Chicago.

Fundamental for the leadership is to maintain the party's rule, he said. "They are not interested in introducing China's Gorbachev" — the Soviet leader whose reforms hastened the end of the Soviet Union — Yang said.

Many of the challenges Xi confronts are legacies of his predecessor, Hu Jintao. In addition to relinquishing his role as party chief, having reached the two-term maximum, Hu also stepped down from the party commission that oversees the military. The move is a break from the past in which exiting party leaders kept hold of the military portfolio for several years.

During Hu's 10 years in office, policies to open up China to trade and foreign investment begun by his predecessors gathered momentum, turning China into a manufacturing powerhouse and drawing tens of millions of rural migrants into cities. Easy credit fueled a building boom, the Beijing Olympics and the world's longest high-speed rail network. At the same time, Hu relied on an ever-larger security apparatus to suppress protests, even as demonstrations continued to rise.

"More and more citizens are beginning to awaken to their rights and they are constantly asking for political reform," said rights activist Hu Jia, who has previously been jailed for campaigning for AIDS patients and orphans. "The Communist Party does not have legitimacy. It is a party of dictatorship that uses violence to obtain political power. What we need now is for this country's people to have the right to choose who they are governed by."

Chief among the problems Xi and his team will have to tackle is the economy. Though Hu pledged more balanced development, inequality has risen and housing costs have soared. Over the past year, the economy has flagged, dragged down by anemic demand in Europe and the U.S. for Chinese products and an overhang from excessive lending for factories and infrastructure.

With state banks preferring to lend to state-run companies or not at all, private entrepreneurs have had to turn to unofficial money-lenders.

"The bank just asked me to wait," said Deng Mingxin, who runs a zipper factory with 10 employees in Jiangsu province. "Maybe it's because I didn't offer enough 'red envelopes'" — a reference to bribes.

The World Bank warns that without quick action, growth that fell to a three-year low of 7.4 percent in the latest quarter may fall to 5 percent by 2015 — a low rate for generating the employment and funding the social programs Beijing holds as key to keeping a lid on unrest. Analysts and Beijing's own advisers have said it needs to overhaul its strategy and nurture consumer spending and services to meet its pledge of doubling incomes by 2020.

"China will need a very different economy in the next decade," said Citigroup economist Minggao Shen.

In foreign policy, the U.S. and other partners are looking for reassurance that China's policy remains one of peaceful integration into the world community. Tensions have flared in recent months between China, Japan and the Philippines over contested islets in the East and South China Seas. Mistrust has also grown with the U.S. as it diverts more military and diplomatic resources to Asia in what Chinese leaders see as containment.

Fresh in office, Xi can ill-afford to bow to foreigners, crossing a nationalistic public and a military that may still be uncertain about his leadership.

"The leaders can't look like they are being soft on the U.S. or foreign policy because they will lose power in terms of people," said Robert Lawrence Kuhn, a business consultant and author of the book "How China's Leaders Think." Kuhn expects more tough rhetoric than action in the months ahead, but expects Xi's leadership to develop a more nuanced foreign policy as it consolidates its authority at home.

Of all the knotty long-term challenges, few threaten to derail China's march to a more prosperous society more than its rapidly aging society. Baby boomers whose labor manned the factories and construction sites are starting to retire. Meanwhile fewer Chinese are entering the workforce after a generation of family planning limits and higher incomes led to smaller families.

If left unchecked, the trend will further stress already pressed social security funds.

Scrapping the rule that limits many families to one child would help in the long run, and is being urged by experts. But the leadership for years has delayed change, in part because it sees smaller families and fewer births as having helped raise incomes overall.

"China has wasted some time and opportunities partly because its growth over the last 10 years was so spectacular," said Wang Feng, director of the Brookings-Tsinghua Center for Public Policy and an expert on China's demographics. "Now it no longer has that luxury."

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Associated Press writers Didi Tang, Gillian Wong, Alexa Olesen, Joe McDonald and Louise Watt and researchers Flora Ji and Zhao Liang contributed to this report.

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