PHOTO: See Molly Mesnick's Baby Belly

Noah Graham

Happy holidays! Celebrities gathered to celebrate the season Saturday, attending the Second Annual Santa’s Secret Workshop in West Hollywood, Calif. Presented by Bill Horn and Scout Masterson and held at the Andaz Hotel, the event benefitted L.A. Family Housing.

Among the revelers: Bachelor alums Jason and Molly Mesnick — whose first child together is due in March — attending their first event since announcing the happy news.

“I’m just about six months and feeling really good,” Molly tells PEOPLE.

“I’m at a perfect stage now so I’m trying to get as much done around the house as I possibly can while I have the energy.”

Also in attendance? Tori Spelling, Malin Akerman, Tiffani Thiessen, Ali Landry, David Boreanaz, Marla Sokoloff, Kaitlin Olson and Rob McElhenney, Angela Bassett, Ian Ziering, Amanda Righetti, Marshall and Jamie Anne Allman, Kimberly Van Der Beek, Spencer Grammer and more.

Guests enjoyed manicures from Mom.me, cookie decorating with Jenny Cookies, photos with Santa from HP, create-a-card with Snapfish.com, and a craft bar from Jo-Ann Fabrics and Crafts.

Styled by Sybarite Designs, the event featured companies such as  SodaStream, Corolle, Stokke, Orbit Baby, Ergo Baby, Teddy Needs a Bath, Funktion, Numi Numi Design, Ju-Ju-Be, Innobaby and Joovy showcasing their latest products — be sure to enter this week’s giveaway for a chance to win them all!

Noah Graham

It was a family affair for Tori Spelling, who brought the whole gang for their first public event since 3-month-old Finn‘s birth in August.

Joining the actress, husband Dean McDermott and their newborn are Hattie, 13 months, Stella, 4, and Liam, 5½.

“I’m not going to lie. It’s a little crazy. It’s hard work,” Spelling tells PEOPLE.

“I think three was safe. Four tips you over the edge a little bit. Maybe it’s because they’re 10 months apart — but we’re so blessed. It keeps you on your toes.”

Noah Graham

With her first child on the way in April, Malin Akerman was all smiles at the event, posing with her growing belly.

“I’m feeling great,” the actress tells PEOPLE. “I’m closing in on five months now so it’s getting more and more exciting as time goes by.”

Noah Graham

White Collar star Tiffani Thiessen gave 2-year-old daughter Harper Renn a leg up at the event.

On the Landry-Monteverde family’s list? Meeting Santa! PEOPLE.com blogger Ali Landry held 13-month-old son Marcelo Alejandro while husband Alejandro Monteverde snuggled in behind 5-year-old daughter Estela Ines.

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Tiffany Rose/WireImage

Ravishing redhead Amanda Righetti showed off her growing belly at the event — The Mentalist star is due this winter with her first child.

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No Bones about it – David Boreanaz‘s children look like him! The actor and wife Jaime Bergman brought kids Jaden, 10, and Bella, 3, to meet Santa.

Always Sunny in Philadelphia stars Kaitlin Olson and Rob McElhenney brought their elder son Axel, 2, to the event, but little Leo, 7 months, sat this one out.

Tiffany Rose/WireImage

Noah Graham

Meeting Santa was twice as nice for Angela Bassett and Courtney B. Vance, who brought along their 6-year-old twins Bronwyn Golden and Slater Josiah (peace out, dude).

Tiffany Rose/WireImage

Who cares about photos — it’s time for a snack! PEOPLE.com blogger Kimberly Van Der Beek gives 2-year-old daughter Olivia (plus her doll!) a lift.

Picture perfect! Ian Ziering gets daughter Mia, 19 months, in the frame while enjoying the craft table. The actor and wife Erin expect their second child in May.

Meagan Reidinger

Meagan Reidinger

With a baby doll in tow, PEOPLE.com blogger Marla Sokoloff and her little lady, 9-month-old Elliotte, check out the event.

Spencer Grammer arrived with her main men — husband James Hesketh and their son, 13-month-old Emmett.

Tiffany Rose/WireImage

Tiffany Rose/WireImage

The event was a baby bump debut for Marshall and Jamie Anne Allman as well — the True Blood and Killing stars just announced that they’re expanding their family — by two. Twins are on the way this spring!

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Fossil fuel subsidies in focus at climate talks

DOHA, Qatar (AP) — Hassan al-Kubaisi considers it a gift from above that drivers in oil- and gas-rich Qatar only have to pay $1 per gallon at the pump.

"Thank God that our country is an oil producer and the price of gasoline is one of the lowest," al-Kubaisi said, filling up his Toyota Land Cruiser at a gas station in Doha. "God has given us a blessing."

To those looking for a global response to climate change, it's more like a curse.

Qatar — the host of U.N. climate talks that entered their final week Monday — is among dozens of countries that keep gas prices artificially low through subsidies that exceeded $500 billion globally last year. Renewable energy worldwide received six times less support — an imbalance that is just starting to earn attention in the divisive negotiations on curbing the carbon emissions blamed for heating the planet.

"We need to stop funding the problem, and start funding the solution," said Steve Kretzmann, of Oil Change International, an advocacy group for clean energy.

His group presented research Monday showing that in addition to the fuel subsidies in developing countries, rich nations in 2011 gave more than $58 billion in tax breaks and other production subsidies to the fossil fuel industry. The U.S. figure was $13 billion.

The Paris-based Organization for Economic Cooperation and Development has calculated that removing fossil fuel subsidies could reduce carbon emissions by more than 10 percent by 2050.

Yet the argument is just recently gaining traction in climate negotiations, which in two decades have failed to halt the rising temperatures that are melting Arctic ice, raising sea levels and shifting weather patterns with impacts on droughts and floods.

In Doha, the talks have been slowed by wrangling over financial aid to help poor countries cope with global warming and how to divide carbon emissions rights until 2020 when a new planned climate treaty is supposed to enter force. Calls are now intensifying to include fossil fuel subsidies as a key part of the discussion.

"I think it is manifestly clear ... that this is a massive missing piece of the climate change jigsaw puzzle," said Tim Groser, New Zealand's minister for climate change.

He is spearheading an initiative backed by Scandinavian countries and some developing countries to put fuel subsidies on the agenda in various forums, citing the U.N. talks as a "natural home" for the debate.

The G-20 called for their elimination in 2009, and the issue also came up at the U.N. earth summit in Rio de Janeiro earlier this year. Frustrated that not much has happened since, European Union climate commissioner Connie Hedegaard said Monday she planned to raise the issue with environment ministers on the sidelines of the talks in Doha.

Many developing countries are positive toward phasing out fossil fuel subsidies, not just to protect the climate but to balance budgets. Subsidies introduced as a form of welfare benefit decades ago have become an increasing burden to many countries as oil prices soar.

"We are reviewing the subsidy periodically in the context of the total economy for Qatar," the tiny Persian gulf country's energy minister, Mohammed bin Saleh al-Sada, told reporters Monday.

Qatar's National Development Strategy 2011-2016 states it more bluntly, saying fuel subsides are "at odds with the aspirations" and sustainability objectives of the wealthy emirate.

The problem is that getting rid of them comes with a heavy political price.

When Jordan raised fuel prices last month, angry crowds poured into the streets, torching police cars, government offices and private banks in the most sustained protests to hit the country since the start of the Arab unrest. One person was killed and 75 others were injured in the violence.

Nigeria, Indonesia, India and Sudan have also seen violent protests this year as governments tried to bring fuel prices closer to market rates.

Iran has used a phased approach to lift fuel subsidies over the past several years, but its pump prices remain among the cheapest in the world.

"People perceive it as something that the government is taking away from them," said Kretzmann. "The trick is we need to do it in a way that doesn't harm the poor."

The International Energy Agency found in 2010 that fuel subsidies are not an effective measure against poverty because only 8 percent of such subsidies reached the bottom 20 percent of income earners.

The IEA, which only looked at consumption subsidies, this year said they "remain most prevalent in the Middle East and North Africa, where momentum toward their reform appears to have been lost."

In the U.S., environmental groups say fossil fuel subsidies include tax breaks, the foreign tax credit and the credit for production of nonconventional fuels.

Industry groups, like the Independent Petroleum Association of America, are against removing such support, saying that would harm smaller companies, rather than the big oil giants.

In Doha, Mohammed Adow, a climate activist with Christian Aid, called all fuel subsidies "reckless and dangerous," but described removing subsidies on the production side as "low-hanging fruit" for governments if they are serious about dealing with climate change.

"It's going to oil and coal companies that don't need it in the first place," he said.

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Associated Press writers Abdullah Rebhy in Doha, Qatar, and Brian Murphy in Dubai, United Arab Emirates, contributed to this report

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Karl Ritter can be reached at www.twitter.com/karl_ritter

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Asian shares slip off nine-month high on weak U.S. data

SINGAPORE (Reuters) - Asian shares slipped on Tuesday after a plunge in U.S. manufacturing activity hit Wall Street stocks and the dollar, while the euro hovered near a six-week high on optimism over Greece's plan to buy back debt.

Declines in Asian stock markets suggested caution setting in after gains in recent weeks, with investors reluctant to chase shares higher amid continued gridlock in the U.S. Congress over proposals to avert the so-called fiscal cliff - $600 billion worth of tax increases and spending cuts that will be automatically triggered in early 2013.

European shares were expected to open lower, U.S. stock index futures eased and riskier assets such as commodities were also hit, with oil, copper and gold all losing ground.

"Oil markets are starting to come off on the weaker-than-expected manufacturing data and the fact that the U.S. economic outlook remains unclear," said Natalie Rampono, commodity strategist at ANZ in Sydney.

"We are also seeing mixed headlines on the fiscal cliff negotiations, so markets have already taken on a cautious outlook on that account."

MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> fell 0.2 percent, backing away from a nine-month high reached on Monday.

Australian shares <.axjo> eased 0.6 percent, while Japan's benchmark Nikkei share average fell 0.3 percent. <.ax><.t/>

Financial bookmakers called London's FTSE 100 <.ftse>, Frankfurt's DAX <.gdaxi> and Paris's CAC-40 <.fchi> to open down 0.2-0.3 percent, and S&P 500 futures slipped 0.2 percent.

Global share indexes had risen on Monday after manufacturing surveys showed signs of a recovery, albeit an uneven one, in China's economy and a slower contraction in Europe. But sentiment toward equities soured after data revealed U.S. manufacturing unexpectedly contracted in November to its lowest level in more than three years.

The Institute for Supply Management (ISM) said on Monday that its index of national factory activity fell to 49.5 in November, the weakest since July 2009, as companies worried about whether lawmakers in Washington could reach a budget deal in time to avert a fiscal crisis that may lead to a recession.

Heading into next week, even a hint of progress in the fiscal cliff negotiations could spawn a modest rally, said Vishnu Varathan, regional economist in Singapore for Mizuho Corporate Bank.

"Overall the euro zone noises are coming out positive and I don't see any turning around there. The only real deal-breaker, whatever will send the dollar spiking up and risk really off the table, will be if there is a complete breakdown in the Congress negotiations," he said.

"Right now there is some disappointment here and there, but overall still the consensus is that negotiations will result in some kind of acceptable compromise," Varathan said.

RBA CUTS

The Australian dollar recovered from initial weakness on Tuesday after a widely expected interest rate cut by the Reserve Bank of Australia (RBA). The rate was trimmed by 25 basis points to 3.0 percent, matching the previous record low.

The RBA said the full impact of rate cuts in the past had yet to be felt, and that recent data confirmed the peak in resource investment was approaching.

The Aussie rose 0.2 percent on the day and last traded at $1.0440, not far from a two-month peak of $1.0491 touched last week.

The euro was flat around $1.3060, hovering near the previous day's high of $1.3076, the single currency's strongest level in about six weeks.

The euro gained as Greek bonds rallied on Monday after Athens announced better-than-expected terms for its planned debt buy-back, boosting chances it will succeed and lead to the release of fresh aid funds.

The U.S. fiscal cliff issue remained in the minds of many investors, underpinning the Treasury market, where benchmark 10-year yields held steady in Asian trading around 1.628 percent.

Brent crude slipped 0.3 percent to around $110.60 a barrel and gold fell nearly 1 percent towards $1,700 an ounce. Copper fell from the first time in four sessions, coming off a six-week high reached on Monday to drop below $8,000 a metric ton (1.1023 tons).

The White House dismissed a proposal from congressional Republicans on Monday that included tax reforms and spending cuts, saying it did not meet President Barack Obama's pledge to raise taxes on the wealthiest Americans.

The Republicans proposed overhauling the U.S. tax code to raise $800 billion in new revenue over 10 years. Obama's opening bid, outlined last Friday, seeks $1.6 trillion in new revenue by allowing the expiry of tax cuts enacted under President George W. Bush for the top two tax brackets.

"Now that the both sides have put out their plans on the table, we can say at least the negotiation is starting. But the way it looks, it will be difficult to get any deal by the second week of December. Probably it's going to take until the third week," said Tomoaki Shishido, fixed income analyst at Nomura Securities.

(Additional reporting by Ayai Tomisawa in Tokyo and Vidya Ranganathan, Ramya Venugopal and Alex Richardson in Singapore; Editing by Simon Cameron-Moore)

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Iraq’s Latest Crisis Is a Standoff With Northern Kurds

Azad Lashkari/Reuters

Officials in Baghdad, including American diplomats, are trying to mediate a dispute with the Kurdish government in the north.

BAGHDAD — It was just the sort of episode that observers have long worried could provoke a serious conflict: when federal police agents sought to arrest a Kurdish man last month in the city of Tuz Khurmato in the Kurdish north of the country, a gunfight ensued with security men loyal to the Kurdish regional government.

Azad Lashkari/Reuters

Kurdish security forces, called the Peshmerga, have been in a standoff with the Iraqi Army near Kirkuk, a northern city claimed by Arabs and Kurds.

When the bullets stopped flying, a civilian bystander was dead and at least eight others were wounded.

In response, the Iraqi prime minister, Nuri Kamal al-Maliki, rushed troop reinforcements to the area, and Masoud Barzani, the president of Iraq’s semiautonomous northern Kurdish region, dispatched his own soldiers, known as the Peshmerga, and the forces remain there in a tense standoff.

Almost a year after the departure of the United States military closed a painful chapter in the histories of both nations, Iraq finds itself in a familiar position: full-blown crisis mode, this time with two standing armies, one loyal to the central government in Baghdad and the other commanded by the Kurdish regional government in the north, staring at each other through gun sights, as officials in Baghdad, including American diplomats and an American general, try to mediate.

Like bookends, Iraq is closing the year just as it began, with a major confrontation that has exposed sectarian and ethnic rifts that hundreds of billions of American dollars and thousands of lives have not reconciled. At the outset of the year, it was the sectarian divide between Shiites and Sunnis that was on vivid display when the government of Mr. Maliki, a Shiite, issued an arrest warrant on terrorism charges against the Sunni vice president, Tariq al-Hashemi.

“The year started with the warrant against Hashemi and is ending with tanks on the edge of the Kurdish mountains,” said Sarmed al-Tai, a columnist for the newspaper Al Mada, which ran a story on Sunday on the anniversary of the American military’s departure, describing the exit as “leaving a large vacuum and a significant deterioration of the national partnership.”

As American troops left at the end of 2011, Mr. Maliki sent tanks to surround Mr. Hashemi’s home in the Green Zone of Baghdad. An arrest warrant led to Mr. Hashemi’s self-imposed exile, first in the Kurdish north and then Turkey; a trial in absentia followed, then the handing down of not one but two death sentences. Mr. Hashemi now lives in a suburban high-rise apartment in Istanbul, where he is protected by Turkish guards and remains defiant.

“Legally, I am still a vice president,” he said in a recent interview, adding, “I do have a lot of time to look after the future of my country.”

The latest crisis is an ethnic one, between Kurds and Arabs, and the consequences are potentially more serious because the Kurds, in contrast to the Sunni Arabs, enjoy a measure of autonomy in the north, control their own security forces and have longstanding ambitions for independence.

Tuz Khurmato, the city where the clash occurred, is of mixed ethnicity, where Turkmens, Arabs and Kurds compete for power. It lies in a region around the city of Kirkuk, an area of vast potential oil wealth that is at the center of a longstanding power struggle between Kurds and Arabs. As part of his brutal rule, Saddam Hussein moved tens of thousands of Arabs into the area, to dilute what was historically a Kurdish stronghold. After his fall, thousands of displaced Kurds demanded the right to return to the homes they had been driven from, creating tensions that have yet to subside.

The latest crisis began after Mr. Maliki sought to consolidate his control over security in Kirkuk, where Kurdish and Iraqi forces have shared responsibility for security, and it reached a critical stage after the gunfight.

“This is a red line for the Kurds,” said Joost R. Hiltermann, an Iraq expert at the International Crisis Group. “Maliki is essentially taking control of the police. And the Kurds will never give up the city.”

Efforts at mediation, backed by the Americans, have so far failed to reach resolution. On Monday, Mr. Maliki and Mr. Barzani sent more troops to the area, with each side accusing the other of doing so first. Mr. Maliki warned the Kurds of the “seriousness of their behavior” and warned of its “consequences.” A spokesman for the Peshmerga said, “Anything is possible.”

Tim Arango reported from Baghdad, and Duraid Adnan from Baghdad and Kirkuk, Iraq.

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$120 tablet that runs both Android and Linux to launch in early 2013

For anyone who has ever used his or her Android tablet and wished that it could double as a desktop-style device, PengPod has a product just for you. Ars Technica reports that the new PengPod tablet, which runs both Android and Linux, has met its crowd-sourced fundraising goals and will so on sale in January for $ 120 a 7-inch model and $ 185 for a 10-inch model. According to Ars, the tablet will be able to “dual-boot Android 4.0 and a version of Linux with the touch-friendly KDE Plasma Active interface.” Overall, the tablet received funding of nearly $ 73,000, or around 49% more than the $ 49,000 that the company had been seeking.

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Kellan Lutz, Hugh Jackman Take Bites and Swipes &#38; More Casting News

By Julia Haskins

12/02/2012 at 07:00 PM EST

Kellan Lutz (left) and Hugh Jackman

Christopher Polk/Getty, Han Myung-Gu/WireImage

It's comeback time. Whether seeking revenge or reprising beloved roles, a fresh crop of movies shows that the best characters always come back for more.

Twilight's Kellan Lutz feasts on others as a vampire, but this time, he's utilizing his own body for powers, Zimbio reports.

The actor will star in Tatua as a tattooed assassin whose weapons are extracted from the ink on his body. The process is a strain on the hit man, but he must put that aside when his son is kidnapped by a dangerous foe.

Hugh Jackman is set to reprise his role as Wolverine in
X-Men: Days of Future Past, the Hollywood Reporter. Ian McKellen (Magneto) and Patrick Stewart (Professor Xavier), will also be joining Jennifer Lawrence, James McAvoy, Michael Fassbender and Nicholas Hoult.

Charlize Theron will star in an adaptation of the final installment of a South Korean revenge trilogy, the Hollywood Reporter also says. The original movie revolves around a woman wrongfully imprisoned for 13 years who then sets out to seek her long-awaited revenge. Writer William Monahan says the English-language remake will be "very American – and very unexpected."

The made-for-TV Disney channel movie Life-Size is getting a sequel, Variety reports. Tyra Banks will reprise her role as Eve, the doll who comes to life, and also executive produce the movie. No word yet on whether Lindsay Lohan, who played Eve's owner, will be making a return.

Also coming soon:

Beyoncé won't be slowing down after her Super Bowl performance in February. Just a couple weeks later, she'll introduce her still untitled, feature-length documentary on HBO, Deadline reports. The documentary airs Feb. 16.

Bridesmaids' Rose Byrne will be going through the motions as a newlywed in I Give it a Year, Zimbio reports. As if being newly married wasn't tough enough, the "too perfect" ex Anna Faris will be shaking up an already teetering balance.

Cate Blanchett will be stirring up her wicked ways as the evil stepmother in a live-action adaptation of Disney's Cinderella, also according to Zimbio.

And George Clooney is sticking to his winning formula by joining forces with his Argo team to produce an untitled crime drama, Variety reports.

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Asperger's dropped from revised diagnosis manual

CHICAGO (AP) — The now familiar term "Asperger's disorder" is being dropped. And abnormally bad and frequent temper tantrums will be given a scientific-sounding diagnosis called DMDD. But "dyslexia" and other learning disorders remain.

The revisions come in the first major rewrite in nearly 20 years of the diagnostic guide used by the nation's psychiatrists. Changes were approved Saturday.

Full details of all the revisions will come next May when the American Psychiatric Association's new diagnostic manual is published, but the impact will be huge, affecting millions of children and adults worldwide. The manual also is important for the insurance industry in deciding what treatment to pay for, and it helps schools decide how to allot special education.

This diagnostic guide "defines what constellations of symptoms" doctors recognize as mental disorders, said Dr. Mark Olfson, a Columbia University psychiatry professor. More important, he said, it "shapes who will receive what treatment. Even seemingly subtle changes to the criteria can have substantial effects on patterns of care."

Olfson was not involved in the revision process. The changes were approved Saturday in suburban Washington, D.C., by the psychiatric association's board of trustees.

The aim is not to expand the number of people diagnosed with mental illness, but to ensure that affected children and adults are more accurately diagnosed so they can get the most appropriate treatment, said Dr. David Kupfer. He chaired the task force in charge of revising the manual and is a psychiatry professor at the University of Pittsburgh.

One of the most hotly argued changes was how to define the various ranges of autism. Some advocates opposed the idea of dropping the specific diagnosis for Asperger's disorder. People with that disorder often have high intelligence and vast knowledge on narrow subjects but lack social skills. Some who have the condition embrace their quirkiness and vow to continue to use the label.

And some Asperger's families opposed any change, fearing their kids would lose a diagnosis and no longer be eligible for special services.

But the revision will not affect their education services, experts say.

The new manual adds the term "autism spectrum disorder," which already is used by many experts in the field. Asperger's disorder will be dropped and incorporated under that umbrella diagnosis. The new category will include kids with severe autism, who often don't talk or interact, as well as those with milder forms.

Kelli Gibson of Battle Creek, Mich., who has four sons with various forms of autism, said Saturday she welcomes the change. Her boys all had different labels in the old diagnostic manual, including a 14-year-old with Asperger's.

"To give it separate names never made sense to me," Gibson said. "To me, my children all had autism."

Three of her boys receive special education services in public school; the fourth is enrolled in a school for disabled children. The new autism diagnosis won't affect those services, Gibson said. She also has a 3-year-old daughter without autism.

People with dyslexia also were closely watching for the new updated doctors' guide. Many with the reading disorder did not want their diagnosis to be dropped. And it won't be. Instead, the new manual will have a broader learning disorder category to cover several conditions including dyslexia, which causes difficulty understanding letters and recognizing written words.

The trustees on Saturday made the final decision on what proposals made the cut; recommendations came from experts in several work groups assigned to evaluate different mental illnesses.

The revised guidebook "represents a significant step forward for the field. It will improve our ability to accurately diagnose psychiatric disorders," Dr. David Fassler, the group's treasurer and a University of Vermont psychiatry professor, said after the vote.

The shorthand name for the new edition, the organization's fifth revision of the Diagnostic and Statistical Manual, is DSM-5. Group leaders said specifics won't be disclosed until the manual is published but they confirmed some changes. A 2000 edition of the manual made minor changes but the last major edition was published in 1994.

Olfson said the manual "seeks to capture the current state of knowledge of psychiatric disorders. Since 2000 ... there have been important advances in our understanding of the nature of psychiatric disorders."

Catherine Lord, an autism expert at Weill Cornell Medical College in New York who was on the psychiatric group's autism task force, said anyone who met criteria for Asperger's in the old manual would be included in the new diagnosis.

One reason for the change is that some states and school systems don't provide services for children and adults with Asperger's, or provide fewer services than those given an autism diagnosis, she said.

Autism researcher Geraldine Dawson, chief science officer for the advocacy group Autism Speaks, said small studies have suggested the new criteria will be effective. But she said it will be crucial to monitor so that children don't lose services.

Other changes include:

—A new diagnosis for severe recurrent temper tantrums — disruptive mood dysregulation disorder. Critics say it will medicalize kids' who have normal tantrums. Supporters say it will address concerns about too many kids being misdiagnosed with bipolar disorder and treated with powerful psychiatric drugs. Bipolar disorder involves sharp mood swings and affected children are sometimes very irritable or have explosive tantrums.

—Eliminating the term "gender identity disorder." It has been used for children or adults who strongly believe that they were born the wrong gender. But many activists believe the condition isn't a disorder and say calling it one is stigmatizing. The term would be replaced with "gender dysphoria," which means emotional distress over one's gender. Supporters equated the change with removing homosexuality as a mental illness in the diagnostic manual, which happened decades ago.

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

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Asian shares, euro rise after firm China PMI

TOKYO (Reuters) - Asian shares and the euro rose on Monday as further signs of a stabilizing Chinese economy boosted investor risk appetite, but gains were capped by worries that an impasse in U.S. budget talks could tip the world's largest economy into recession.

European shares will likely track Asian shares higher, with financial spreadbetters predicting London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> to open up as much as 0.5 percent. A 0.2 percent rise in U.S. stock futures also hinted at a firm Wall Street open. <.l><.eu><.n/>

The euro hit a six-week high against the dollar at $1.3048 on an upbeat Chinese manufacturing survey, and jumped over 0.7 percent to a one-month high versus the Australian dollar to around A$1.2528.

The pace of activity in China's vast manufacturing sector quickened for the first time in 13 months in November, with the final reading for the HSBC Purchasing Managers' Survey (PMI) rising to 50.5 in November, further evidence that the economy is reviving after seven quarters of slowing growth.

"There is growing confidence that China's economy bottomed in July-September, with signs of firmer external demand," said Hirokazu Yuihama, a senior strategist at Daiwa Securities.

"Sentiment is supported because the gradual recovery in Asian economies comes against the backdrop of low interest rates environment, which won't be changed anytime soon, so the recovery in risk appetite is likely to extend into next year," he said.

Australia's sluggish retail sales, labor demand and tame inflation raised expectations the Reserve Bank of Australia may cut interest rates at its meeting on Tuesday, lifting local shares <.axjo> 0.57 percent to a five-week high earlier.

Japan's Nikkei stock average <.n225> added 0.5 percent after reaching a fresh seven-month high earlier. <.t/>

MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> was up 0.1 percent after climbing as much as 0.4 percent earlier to a fresh nine-month high.

Hong Kong shares <.hsi> eased 0.2 percent after reaching intra-day highs on the year earlier. Shanghai shares <.ssec> fell 0.3 percent, approaching their lowest in nearly four years hit last week. Indian shares <.bsesn> earlier rose to 19-month highs but gave up gains to inch down 0.3 percent.

The HSBC manufacturing Purchasing Managers' Index (PMI) showed India's manufacturing grew at its fastest pace in five months in November, boosted by strong export orders and a surge in output.

"The storm might have abated a little, but the outlook for equities in 2013 remains choppy," said HSBC's head of global equity strategy, Garry Evans in a research note.

"We conclude, however, that the global stocks will make modest gains in 2013, thanks to a combination of central bank action, earnings growth of about 10 percent, and some further rerating as investors slowly regain confidence in equities."

ANXIETY GAUGE MIXED

Oil prices were underpinned by the firm Chinese data, tensions in the Middle East, involving Israel and Palestine, political unrest in Egypt and the conflict in Syria.

U.S. crude futures rose 0.3 percent to $89.14 a barrel and Brent added 0.4 percent to $111.63, while London copper gained 0.3 percent to $8,014.75 a metric ton (1.1023 tons).

Investors will now look at U.S. and European manufacturing reports due later in the session for clues about the global growth trend.

Uncertainty over whether Washington can avert the "fiscal cliff", $600 billion worth of tax increases and spending cuts that will be automatically triggered in early 2013 unless Democrats and Republicans agree how to cut the deficit, kept investors nervous.

That uncertainty underpinned gold's appeal as a safe-haven as spot gold edged up 0.3 percent to $1,719.34 an ounce.

"People are more cautious because there is no clear sign when the fiscal cliff will be solved," said Brian Lan, Managing Director of GoldSilver Central Pte in Singapore.

The Euro STOXX 50 Volatility Index <.v2tx>, Europe's widely-used measure of investor risk aversion, fell on Friday to lows unseen since mid-2007, while the CBOE Volatility Index <.vix>, which reflects anxiety in the Standard & Poor's 500 index <.spx>, jumped 5.4 percent.

The euro's limited drop on Friday after Moody's cut the credit ratings on the European Stability Mechanism and the European Financial Stability Fund, may hint at its resilience.

Later on Monday, ahead of a meeting of euro zone finance ministers, Greece plans to unveil details of a bond buy-back crucial to efforts by foreign lenders to trim the country's ballooning debt, hoping the terms will draw enough investors and unblock vital aid.

The dollar was down 0.1 percent against the yen at 82.26, but not far from a 7-1/2-month high of 82.84 yen touched on November 22.

Currency speculators in the latest week boosted short yen positions to the highest in more than five years, on expectations that an election on December 16 will usher in a new government that will press the central bank to aggressively ease monetary policy.

Defying rising equities, Asian credit markets were subdued, with the spreads on the iTraxx Asia ex-Japan investment-grade index little changed from Friday.

(Additional reporting by Hideyuki Sano in Tokyo and Rujun Shen in Singapore; Editing by Simon Cameron-Moore)

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Tunnel Collapses Outside Tokyo Kills Nine

Kyodo News, via Associated Press

An image from a monitoring camera showing the search for survivors after the tunnel collapse. Each of the concrete slabs weighs 1.2 tons, officials said.

TOKYO — Nine people were found dead early Monday after their cars were crushed by slabs of concrete that fell from the ceiling of a tunnel in eastern Japan, severing a major highway leading to Tokyo.

The highway connects Tokyo and western Japan.

Franck Robichon/European Pressphoto Agency

Fire fighters and rescue personnel gathered at the entrance to the Sasago tunnel, west of Tokyo.

The police said they were investigating the cause of the collapse on Sunday at the Sasago Tunnel — a three-mile passage near the city of Otsuki and about 50 miles west of Tokyo — and for evidence of negligence by the company that operates the highway.

News reports said investigators believed that supports in the ceiling of the 35-year-old tunnel might have grown brittle, allowing hundreds of the slabs to fall onto passing vehicles. Each slab weighed 1.2 tons, officials said.

The concrete crushed three vehicles, including a van carrying six people that caught fire, filling the tunnel with thick, black smoke. Only one of the van’s occupants, identified as a 28-year-old woman who worked at a bank in suburban Tokyo, was able to escape, the police said.

Firefighters found the bodies of five other people from the van after putting out the fire and determining that the ceiling was safe enough to permit rescue efforts. They also found two other vehicles, one a truck whose driver’s body was found in the cab, the other a sedan carrying three people who were killed.

The truck belonged to a wholesale company, the police said. The 50-year-old driver had called the company right after the collapse to ask for help, but was not heard from again, news reports said.

The collapse caused a long traffic backup on one of the main highways into Tokyo. Television news reports showed smoke billowing from the tunnel entrance as motorists abandoned their cars or tried to turn in the other direction.

Drivers and passengers who got out of the tunnel told the local news media that they had escaped on foot, some leading children for half an hour before they got outside. Sasago Tunnel runs through a mountain near Mount Fuji in Yamanashi Prefecture.

Some of the survivors said that they could hear cries from the trapped cars, but that smoke and fears of another collapse prevented them from trying to help. The bank worker who escaped from the van identified the other occupants as her boyfriend and two other couples, all in their 20s.

The highway’s operator, Central Nippon Expressway Company, said supports made of concrete and metal suddenly gave away, causing a 350-foot section of the ceiling to fall. The company said a routine inspection of the tunnel in September failed to find any signs of danger.

In a news conference at its headquarters in the central city of Nagoya, the company apologized for the accident.

The accident will close a section of the Chuo Expressway, which connects Tokyo to western Japan, for an undetermined length of time. Local news reports said officials would direct drivers to alternative routes through the mountains until the tunnel is cleared and repair work can be completed.

The accident raised questions about whether other tunnels and highway infrastructure built during the construction boom of he 1960s and ’70s are growing too old and need to be strengthened or replaced. Long tunnels — usually lined with smooth, white concrete — are common on highways in the mountainous island nation.

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Chris Brown Returns To Twitter, Instragrams Photo Of Scantily Clad Rihanna

Breezy’s back with a bang.

Chris Brown has returned to Twitter, after deleting his account last Sunday following an expletive-laced online fight with comedian Jenny Johnson.

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While the “Don’t Wake Me Up” singer still boasts 7.7 million followers, he has yet to grace the Twittersphere with a post since reactivating his account on Saturday.

However, the 23-year-old has been active on his Instragram account (with a handle we can’t repeat – you’ve been warned!), posting a photo of himself smoking, while a scantily clad Rihanna lays next to him with the caption, “What would music today sound like if these kids didn’t exist?”

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Rihanna hasn’t been shy about sharing photos of Chris either.

In the last week she’s posted multiple photos of her seemingly-on-again beau – one with Chris lying shirtless on a bed, as well as a shot of her hugging the singer with the caption, “I don’t wanna leave! Killed it tonight baby!!!”

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