Investors face another Washington deadline

NEW YORK (Reuters) - Investors face another Washington-imposed deadline on government spending cuts next week, but it's not generating the same level of fear as two months ago when the "fiscal cliff" loomed large.

Investors in sectors most likely to be affected by the cuts, like defense, seem untroubled that the budget talks could send stocks tumbling.

Talks on the U.S. budget crisis began again this week leading up to the March 1 deadline for the so-called sequestration when $85 billion in automatic federal spending cuts are scheduled to take effect.

"It's at this point a political hot button in Washington but a very low level investor concern," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. The fight pits President Barack Obama and fellow Democrats against congressional Republicans.

Stocks rallied in early January after a compromise temporarily avoided the fiscal cliff, and the Standard & Poor's 500 index <.spx> has risen 6.3 percent since the start of the year.

But the benchmark index lost steam this week, posting its first week of losses since the start of the year. Minutes on Wednesday from the last Federal Reserve meeting, which suggested the central bank may slow or stop its stimulus policy sooner than expected, provided the catalyst.

National elections in Italy on Sunday and Monday could also add to investor concern. Most investors expect a government headed by Pier Luigi Bersani to win and continue with reforms to tackle Italy's debt problems. However, a resurgence by former leader Silvio Berlusconi has raised doubts.

"Europe has been in the last six months less of a topic for the stock market, but the problems haven't gone away. This may bring back investor attention to that," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

OPTIONS BULLS TARGET GAINS

The spending cuts, if they go ahead, could hit the defense industry particularly hard.

Yet in the options market, bulls were targeting gains in Lockheed Martin Corp , the Pentagon's biggest supplier.

Calls on the stock far outpaced puts, suggesting that many investors anticipate the stock to move higher. Overall options volume on the stock was 2.8 times the daily average with 17,000 calls and 3,360 puts traded, according to options analytics firm Trade Alert.

"The upside call buying in Lockheed solidifies the idea that option investors are not pricing in a lot of downside risk in most defense stocks from the likely impact of sequestration," said Jared Woodard, a founder of research and advisory firm condoroptions.com in Forest, Virginia.

The stock ended up 0.6 percent at $88.12 on Friday.

If lawmakers fail to reach an agreement on reducing the U.S. budget deficit in the next few days, a sequester would include significant cuts in defense spending. Companies such as General Dynamics Corp and Smith & Wesson Holding Corp could be affected.

General Dynamics Corp shares rose 1.2 percent to $67.32 and Smith & Wesson added 4.6 percent to $9.18 on Friday.

EYES ON GDP DATA, APPLE

The latest data on fourth-quarter U.S. gross domestic product is expected on Thursday, and some analysts predict an upward revision following trade data that showed America's deficit shrank in December to its narrowest in nearly three years.

U.S. GDP unexpectedly contracted in the fourth quarter, according to an earlier government estimate, but analysts said there was no reason for panic, given that consumer spending and business investment picked up.

Investors will be looking for any hints of changes in the Fed's policy of monetary easing when Fed Chairman Ben Bernake speaks before congressional committees on Tuesday and Wednesday.

Shares of Apple will be watched closely next week when the company's annual stockholders' meeting is held.

On Friday, a U.S. judge handed outspoken hedge fund manager David Einhorn a victory in his battle with the iPhone maker, blocking the company from moving forward with a shareholder vote on a controversial proposal to limit the company's ability to issue preferred stock.

(Additional reporting by Doris Frankel; Editing by Kenneth Barry)

Read More..

Iran Says It Has Found New Uranium Deposits

DUBAI, United Arab Emirates (Reuters) — Days before resuming talks over its disputed nuclear program, Iran said Saturday that it had found significant new deposits of raw uranium and identified sites for 16 more nuclear power stations.

The state news agency IRNA quoted a report by the Atomic Energy Organization of Iran, which said that the reserves were discovered in northern and southern coastal areas and had tripled the amount outlined in previous estimates.

There was no independent confirmation. Western experts had previously thought that Iran, with few uranium mines of its own, might be close to exhausting its supply of raw uranium.

“We have discovered new sources of uranium in the country, and we will put them to use in the near future,” Fereydoun Abbasi-Davani, head of the Atomic Energy Organization, was quoted as saying at Iran’s annual nuclear industry conference.

The timing of the announcement suggested that Iran, by talking up its reserves and nuclear ambitions, may hope to strengthen its negotiating hand at talks in Kazakhstan on Tuesday with the United States, Russia, China, Britain, France and Germany.

Diplomats say the six powers are willing to offer Iran some relief from international sanctions if it agrees to curb its production of higher-grade enriched uranium.

The West says Iran’s enrichment of uranium to a purity of 20 percent demonstrates its intent to develop a nuclear weapons ability, an allegation the Islamic republic denies.

The enriched uranium required for use in nuclear reactors or weapons is produced in centrifuges that spin uranium hexafluoride gas at high speeds. The gas is derived from yellow cake, a concentrate from uranium ore found in mines.

Iran’s raw uranium reserves now total around 4,400 tons, including discoveries over the past 18 months, IRNA quoted the report as saying.

In another sign that Iran is intent on pushing forward with its nuclear ambitions, the report also said that 16 sites had been identified for the construction of nuclear power stations. It did not specify the exact locations but said they included coastal areas of the Persian Gulf, the Gulf of Oman, Khuzestan Province and the Caspian Sea.

The Iranian authorities have long announced their desire to build more nuclear power plants for electricity production. Only one currently exists, in the southern city of Bushehr, and it has suffered several shutdowns in recent months.

The announcements could further complicate the search for a breakthrough in Kazakhstan, after three unsuccessful rounds of talks between the sides in 2012.

“We are meeting all of our obligations under the Nuclear Nonproliferation Treaty, and we should be able to benefit from our rights,” Saeed Jalili, Iran’s chief nuclear negotiator, was quoted as saying at the conference on Saturday. “We don’t accept more responsibilities and less rights.”

In what Washington has called a provocative move, Iran is also installing new-generation centrifuges, capable of producing enriched uranium much faster, at a site in Natanz in the center of the country.

Western diplomats say the six powers will reiterate demands for the suspension of uranium enrichment to a purity of 20 percent, the closing of Iran’s Fordo enrichment plant, increased access for International Atomic Energy Agency inspectors and an agreement to address concerns on existing uranium stockpiles.

In return, the latest embargoes on gold and metals trading with Iran would be lifted. Iran has criticized the offer and says its rights need to be fully recognized.

If the West wants to start constructive talks with Tehran, “It needs to present a valid proposal,” Mr. Jalili said. In a statement issued before the Iranian announcement, the German foreign minister, Guido Westerwelle, said the six-power group wanted to enter a “substantial negotiation process” over Tehran’s nuclear program.

The talks in Kazakhstan “are a chance which I hope Iran takes,” he said.

Read More..

Beyoncé & Blue Ivy Made Readers Smile

By Andrea Billups

02/23/2013 at 01:35 PM EST

What's on the minds of PEOPLE readers this week? We love getting your feedback, and as always, you weighed in with plenty of strong reactions.

From your love of a new photos of Beyoncé's growing daughter Blue Ivy to your sadness over the suicide of country star Mindy McCready, readers responded to what made them mad, sad and also what kept them laughing out loud.

Check out the articles with the top reactions on the site this week, and keep clicking on the emoticons at the bottom of every story to tell us what you think!

There is no doubt the baby Blue Ivy is a Daddy's girl as new snaps of the child and her mother Beyoncé revealed this week. While her famous parents have kept her out of the spotlight, a photo of Blue Ivy, now 1, was apparently leaked from Beyoncé's HBO documentary, showing mom and daughter sharing the same photogenic smile.

Meanwhile, seeing Taylor Swift in a very Beyoncé-esque costume at the Brit Awards drew some amusement from readers who wondered if Sasha Fierce now has a pop-country cousin.

Chaz Bono has quickly followed through on his goal to lose significant weight, and readers were wowed by inspirational photos that saw him significantly trimmer and 43 pounds lighter. "I've been sticking to a really strict diet," he tells PEOPLE. "It's not any type of starvation thing. I'm just cutting out a lot of stuff and eating primarily protein and vegetables and fruit."

Readers told us they were angered by Kim Kardashian's maternity style as she continues her habit of wearing tight-fitting fashion, even as her pregnancy has moved into its second trimester. Mom-to-be Kardashian, 32, defended her hourglass shape and its limitations with clothes. "I think because I have big boobs it could make me look heavier if I don't, like, show off my waist or something," she told Du Jour magazine.

Country singer Mindy McCready's tragic suicide at 37 saddened readers. After years of dealing with addiction and legal problems, McCready killed herself at her Arkansas home, leaving behind son Zander, 6, with her ex Billy McKnight, and son Zayne, just 10 months.

Check back next week for another must-read roundup, and see what readers are reacting to every day here.

Taylor Swift at the Brit Awards (right) and Beyoncé at the Super Bowl

Getty; PictureGroup

Read More..

FDA approves new targeted breast cancer drug

WASHINGTON (AP) — The Food and Drug Administration has approved a first-of-a-kind breast cancer medication that targets tumor cells while sparing healthy ones.

The drug Kadcyla from Roche combines the established drug Herceptin with a powerful chemotherapy drug and a third chemical linking the medicines together. The chemical keeps the cocktail intact until it binds to a cancer cell, delivering a potent dose of anti-tumor poison.

Cancer researchers say the drug is an important step forward because it delivers more medication while reducing the unpleasant side effects of chemotherapy.

"This antibody goes seeking out the tumor cells, gets internalized and then explodes them from within. So it's very kind and gentle on the patients — there's no hair loss, no nausea, no vomiting," said Dr. Melody Cobleigh of Rush University Medical Center. "It's a revolutionary way of treating cancer."

Cobleigh helped conduct the key studies of the drug at the Chicago facility.

The FDA approved the new treatment for about 20 percent of breast cancer patients with a form of the disease that is typically more aggressive and less responsive to hormone therapy. These patients have tumors that overproduce a protein known as HER-2. Breast cancer is the second most deadly form of cancer in U.S. women, and is expected to kill more than 39,000 Americans this year, according to the National Cancer Institute.

The approval will help Roche's Genentech unit build on the blockbuster success of Herceptin, which has long dominated the breast cancer marketplace. The drug had sales of roughly $6 billion last year.

Genentech said Friday that Kadcyla will cost $9,800 per month, compared to $4,500 per month for regular Herceptin. The company estimates a full course of Kadcyla, about nine months of medicine, will cost $94,000.

FDA scientists said they approved the drug based on company studies showing Kadcyla delayed the progression of breast cancer by several months. Researchers reported last year that patients treated with the drug lived 9.6 months before death or the spread of their disease, compared with a little more than six months for patients treated with two other standard drugs, Tykerb and Xeloda.

Overall, patients taking Kadcyla lived about 2.6 years, compared with 2 years for patients taking the other drugs.

FDA specifically approved the drug for patients with advanced breast cancer who have already been treated with Herceptin and taxane, a widely used chemotherapy drug. Doctors are not required to follow FDA prescribing guidelines, and cancer researchers say the drug could have great potential in patients with earlier forms of breast cancer

Kadcyla will carry a boxed warning, the most severe type, alerting doctors and patients that the drug can cause liver toxicity, heart problems and potentially death. The drug can also cause severe birth defects and should not be used by pregnant women.

Kadcyla was developed by South San Francisco-based Genentech using drug-binding technology licensed from Waltham, Mass.-based ImmunoGen. The company developed the chemical that keeps the drug cocktail together and is scheduled to receive a $10.5 million payment from Genentech on the FDA decision. The company will also receive additional royalties on the drug's sales.

Shares of ImmunoGen Inc. rose 2 cents to $14.32 in afternoon trading. The stock has ttraded in a 52-wek range of $10.85 to $18.10.

Read More..

Investors face another Washington deadline

NEW YORK (Reuters) - Investors face another Washington-imposed deadline on government spending cuts next week, but it's not generating the same level of fear as two months ago when the "fiscal cliff" loomed large.

Investors in sectors most likely to be affected by the cuts, like defense, seem untroubled that the budget talks could send stocks tumbling.

Talks on the U.S. budget crisis began again this week leading up to the March 1 deadline for the so-called sequestration when $85 billion in automatic federal spending cuts are scheduled to take effect.

"It's at this point a political hot button in Washington but a very low level investor concern," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. The fight pits President Barack Obama and fellow Democrats against congressional Republicans.

Stocks rallied in early January after a compromise temporarily avoided the fiscal cliff, and the Standard & Poor's 500 index <.spx> has risen 6.3 percent since the start of the year.

But the benchmark index lost steam this week, posting its first week of losses since the start of the year. Minutes on Wednesday from the last Federal Reserve meeting, which suggested the central bank may slow or stop its stimulus policy sooner than expected, provided the catalyst.

National elections in Italy on Sunday and Monday could also add to investor concern. Most investors expect a government headed by Pier Luigi Bersani to win and continue with reforms to tackle Italy's debt problems. However, a resurgence by former leader Silvio Berlusconi has raised doubts.

"Europe has been in the last six months less of a topic for the stock market, but the problems haven't gone away. This may bring back investor attention to that," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

OPTIONS BULLS TARGET GAINS

The spending cuts, if they go ahead, could hit the defense industry particularly hard.

Yet in the options market, bulls were targeting gains in Lockheed Martin Corp , the Pentagon's biggest supplier.

Calls on the stock far outpaced puts, suggesting that many investors anticipate the stock to move higher. Overall options volume on the stock was 2.8 times the daily average with 17,000 calls and 3,360 puts traded, according to options analytics firm Trade Alert.

"The upside call buying in Lockheed solidifies the idea that option investors are not pricing in a lot of downside risk in most defense stocks from the likely impact of sequestration," said Jared Woodard, a founder of research and advisory firm condoroptions.com in Forest, Virginia.

The stock ended up 0.6 percent at $88.12 on Friday.

If lawmakers fail to reach an agreement on reducing the U.S. budget deficit in the next few days, a sequester would include significant cuts in defense spending. Companies such as General Dynamics Corp and Smith & Wesson Holding Corp could be affected.

General Dynamics Corp shares rose 1.2 percent to $67.32 and Smith & Wesson added 4.6 percent to $9.18 on Friday.

EYES ON GDP DATA, APPLE

The latest data on fourth-quarter U.S. gross domestic product is expected on Thursday, and some analysts predict an upward revision following trade data that showed America's deficit shrank in December to its narrowest in nearly three years.

U.S. GDP unexpectedly contracted in the fourth quarter, according to an earlier government estimate, but analysts said there was no reason for panic, given that consumer spending and business investment picked up.

Investors will be looking for any hints of changes in the Fed's policy of monetary easing when Fed Chairman Ben Bernake speaks before congressional committees on Tuesday and Wednesday.

Shares of Apple will be watched closely next week when the company's annual stockholders' meeting is held.

On Friday, a U.S. judge handed outspoken hedge fund manager David Einhorn a victory in his battle with the iPhone maker, blocking the company from moving forward with a shareholder vote on a controversial proposal to limit the company's ability to issue preferred stock.

(Additional reporting by Doris Frankel; Editing by Kenneth Barry)

Read More..

Torrential Rains Flood Athens and Strand Motorists

ATHENS — Torrential rain of an intensity not seen in decades flooded roads in Athens on Friday, overturning parked cars and stranding dozens of motorists, including a 28-year-old woman who died of what appeared to be a heart attack.

More than six hours of solid rainfall starting at 5 a.m. flooded the streets of the capital, caused two rivers to break their banks and paralyzed public transport, causing traffic chaos as tens of thousands of Athenians sought to reach their offices during the morning rush hour. Two electricity substations were deluged, prompting power cuts, and the fire service was besieged with more than 800 calls from residents with flooded homes and 100 from motorists stuck in floodwaters.

The amount of rain that fell was equal to the average rainfall for the whole month of February, meteorologists said.

A woman found slumped over the wheel of her car in the northern Athens suburb of Halandri died of natural causes, according to doctors at the hospital to which she was taken by rescue workers. Greek news media reported that the woman had died of a heart attack prompted by shock. A few blocks away, residents rescued another woman from her stranded car as muddy floodwaters gushed by, overturning several parked vehicles on the same road.

The rainfall also led to a freak accident at the Parliament building, where a cleaner working on the roof after the rain had stopped stepped through a glass ceiling as she tried to mop up water dripping into the main assembly hall, where lawmakers were to gather for a debate. The woman, who had been wearing a harness, according to parliamentary officials, was left dangling several yards above the deputies’ benches for a few minutes, until a police officer came to her aid.

In another unusual incident, a derelict building in the run-down central district of Aghios Panteleimonas collapsed, apparently because of the force of the sustained downpour. No one was injured after the collapse in the busy neighborhood, one of the poorest and most densely populated in the city center.

Although heavy rain is not unusual during Greece’s brief winter season, an antiquated drainage system in the capital means that streets often remain waterlogged for hours after storms. The scale of Friday’s downpour was unusual, however, with meteorologists referring to the heaviest rainfall in 50 to 60 years in comments on state television.

The Greek government, which is struggling to keep the debt-racked country afloat with billions of euros in rescue loans from foreign creditors, was not able to provide an assessment of the cost of the damage caused to homes, businesses, cars and roads.

 

Read More..

Josh Duhamel: Seeing Fergie's Ultrasound Makes Pregnancy Real

Mom & Babies
Celebrity Baby Blog

02/22/2013 at 11:00 AM ET

Stefanie Keenan/Wireimage

Josh Duhamel is ready for fatherhood, but says seeing wife Fergie‘s ultrasound makes the precious expectation of having his own child ever so real.

“It’s very exciting. Seeing that ultrasound is unlike anything you’ve ever seen. You’re like, ‘Wow, it’s mine,’” the actor tells Yahoo! omg! during a press junket for his new film Safe Haven.

The couple, who married in January 2009, announced their happy news via simultaneous Tweets on Monday.

Duhamel, 40, plays a father in his new film, but says time spent with family and friends’ children have opened his eyes to the joys of parenting — even though he knows he has a learning curve ahead.

“I think that I’ve always had an affinity for kids. There’s something about me and kids that just clicks,” explains Duhamel, who is anticipating learning the daddy ropes on the job once the Black Eyed Peas frontwoman delivers their baby.

“I don’t know if it’s because I am a kid, but it does prepare you whenever you’re around them,” he adds. ”I’ve got nieces and nephews and all my friends have kids. All that stuff is a learning experience for when it actually happens, but I don’t think you’re ever truly prepared until it’s your own.”

– Andrea Billups

Read More..

FDA approves new targeted breast cancer drug

WASHINGTON (AP) — The Food and Drug Administration has approved a first-of-a-kind breast cancer medication that targets tumor cells while sparing healthy ones.

The drug Kadcyla from Roche combines the established drug Herceptin with a powerful chemotherapy drug and a third chemical linking the medicines together. The chemical keeps the cocktail intact until it binds to a cancer cell, delivering a potent dose of anti-tumor poison.

Cancer researchers say the drug is an important step forward because it delivers more medication while reducing the unpleasant side effects of chemotherapy.

"This antibody goes seeking out the tumor cells, gets internalized and then explodes them from within. So it's very kind and gentle on the patients — there's no hair loss, no nausea, no vomiting," said Dr. Melody Cobleigh of Rush University Medical Center. "It's a revolutionary way of treating cancer."

Cobleigh helped conduct the key studies of the drug at the Chicago facility.

The FDA approved the new treatment for about 20 percent of breast cancer patients with a form of the disease that is typically more aggressive and less responsive to hormone therapy. These patients have tumors that overproduce a protein known as HER-2. Breast cancer is the second most deadly form of cancer in U.S. women, and is expected to kill more than 39,000 Americans this year, according to the National Cancer Institute.

The approval will help Roche's Genentech unit build on the blockbuster success of Herceptin, which has long dominated the breast cancer marketplace. The drug had sales of roughly $6 billion last year.

Genentech said Friday that Kadcyla will cost $9,800 per month, compared to $4,500 per month for regular Herceptin. The company estimates a full course of Kadcyla, about nine months of medicine, will cost $94,000.

FDA scientists said they approved the drug based on company studies showing Kadcyla delayed the progression of breast cancer by several months. Researchers reported last year that patients treated with the drug lived 9.6 months before death or the spread of their disease, compared with a little more than six months for patients treated with two other standard drugs, Tykerb and Xeloda.

Overall, patients taking Kadcyla lived about 2.6 years, compared with 2 years for patients taking the other drugs.

FDA specifically approved the drug for patients with advanced breast cancer who have already been treated with Herceptin and taxane, a widely used chemotherapy drug.

Kadcyla will carry a boxed warning, the most severe type, alerting doctors and patients that the drug can cause liver toxicity, heart problems and potentially death. The drug can also cause severe birth defects and should not be used by pregnant women.

Kadcyla was co-developed by South San Francisco-based Genentech and ImmunoGen Inc., of Waltham, Mass. ImmunoGen developed the technology that binds the drug ingredients together and is scheduled to receive a $10.5 million payment from Genentech on the FDA decision. The company will also receive additional royalties on the drug's sales.

Shares of ImmunoGen Inc. slipped 8 cents to $14.22 in afternoon trading. They have traded in a 52-wek range of $10.85 to $18.10.

Read More..

HP lifts Wall Street, S&P on pace for first weekly loss of year

NEW YORK (Reuters) - Stocks rose on Friday, rebounding off two days of losses as Dow component Hewlett-Packard surged on strong results, but the S&P 500 was on track to end a seven-week-long streak of gains.

The S&P shed 1.9 percent over the previous two sessions, its worst two-day drop since early November, putting the index on pace for its first weekly decline of the year. The retreat was triggered when the Federal Reserve's meeting minutes for January suggested stimulus measures may be halted sooner than thought.

Still, the index is up nearly 6 percent for the year and held the 1,500 support level despite the recent declines, a sign of a positive bias in the market.

"The market is addicted to Fed stimulus and gets withdrawal shakes every time that's threatened, but now we're resuming our course and remain much more attractively valued than other asset classes," said Rex Macey, chief investment officer at Wilmington Trust in Atlanta, Georgia.

Hewlett-Packard Co jumped 9.6 percent to $18.74 as the top boost on both the Dow and S&P 500 after the PC maker's quarterly revenue and forecasts beat expectations. The company cut costs under Chief Executive Meg Whitman's turnaround plan. The S&P technology sector <.splrct> was up 0.8 percent.

The Dow Jones industrial average <.dji> was up 69.41 points, or 0.50 percent, at 13,950.03. The Standard & Poor's 500 Index <.spx> was up 7.74 points, or 0.52 percent, at 1,510.16. The Nasdaq Composite Index <.ixic> was up 18.26 points, or 0.58 percent, at 3,149.75.

For the week, the Dow is off 0.2 percent in its third straight week of slight losses, the S&P is off 0.6 percent and the Nasdaq is off 1.3 percent.

Also buoying tech stocks were gains in semiconductor companies after Marvell Technology Group Ltd forecast results this quarter that were largely above analysts' expectations. Marvell gained market share in the hard-disk drive and flash-storage businesses. The stock rose 2.5 percent to $9.71.

In addition, Texas Instruments Inc raised its dividend by a third and boosted its stock buyback program, lifting shares 5.1 percent to $34.16 while the PHLX semiconductor index <.sox> gained 1.8 percent.

"Dividends growing are another way the market's level is justified, if not especially attractive at these levels," said Macey, who manages about $20 billion in assets.

On the downside, Abercrombie & Fitch dropped 7.6 percent to $45.34 after the clothing retailer reported a drop in fourth-quarter comparable sales, even as its latest quarterly earnings topped estimates.

Insurer American International Group Inc posted fourth-quarter results that beat analysts' expectations. Shares advanced 3 percent to $38.43.

According to Thomson Reuters data through Friday morning, of 439 companies in the S&P 500 that have reported results, 70 percent have exceeded analysts' expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters.

Fourth-quarter earnings for S&P 500 companies are estimated to have risen 6 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

(Editing by Kenneth Barry)

Read More..

Deadly Bombings Hit Southern India City

Mahesh Kumar A/Associated Press

A member of the bomb squad with a sniffer dog arrived at a blast site in Hyderabad on Thursday.

NEW DELHI — Two bombs planted on bicycles killed at least 11 people and wounded 50 in a busy shopping district in the southern India city of Hyderabad at the height of rush hour Thursday night in what officials said may have been a coordinated attack.

Sushil Kumar Shinde, India’s home affairs minister, told journalists in New Delhi that the bicycles had been 150 meters away from each other at the time of the explosions in the Dilsukh Nagar neighborhood, which happened about 10 minutes apart, killing eight at one site and three at the other. The neighborhood is packed with shops, restaurants, theaters and a huge produce market.

Mr. Shinde said the central government had warned state governments that such an attack was planned. “We have had some information for the last two days of such an incident,” he said.

“At this stage it is difficult to say more,” he said. He warned that the death toll may go up.

“This is a dastardly attack, the guilty will not go unpunished,” Prime Minister Manmohan Singh said in a Twitter message.

Hyderabad, one of India’s largest cities and capital of Andhra Pradesh state, is a leading center of the country’s burgeoning pharmaceutical and biotechnology industries.

The blast sites, one near a theater, were soon mobbed by protesters, politicians, reporters and the curious. Television news footage in the hours afterward showed chaotic scenes with some investigators trying to find the remains of explosive devices while huge numbers of people jostled for space around them.

The presence of government officials, who come with enormous entourages and their own police squads, was portrayed by NDTV-News as particularly unhelpful.

“We’ve seen political leaders come into the area and hold press conferences,” the anchor on NDTV said. “That’s the last thing they should be doing.”

Kiran Kumar Reddy, the chief minister of Andhra Pradesh, held a news conference away from the scene late Thursday night and asked people to stay away from the blast areas. Renuka Chowdhury, a leader of the Indian National Congress Party, pleaded with other politicians to stay away as well.

“I really wish politicians would recognize this,” Ms. Chowdhury said.

The money and resources spent on protecting bureaucrats and politicians has become a source of increasing controversy in India, especially in the wake of a highly publicized gang-rape case in December in New Delhi. But Indian politicians, like those elsewhere, often compete with each other to show who is tougher on acts of terrorism and other crimes.

Hyderabad has been the site of frequent bombings in recent years, particularly those using home-made explosives.

In May 2007, 13 people died after a bomb went off at the Mecca Masjid, including some who were killed in clashes between the police and Muslim protesters afterward. In August 2007, a pair of synchronized explosions tore through two popular gathering spots in Hyderabad, killing at least 42 and wounding dozens. Police found and defused 19 more bombs in the hours after the blasts, left at bus stops, theaters, pedestrian bridges and intersections.

In the immediate aftermath of such attacks, a common worry is that one religious community will blame another and attack them. Such sectarian-inspired riots have long plagued India.

Asked in a news conference if he believed that Muslim extremists were to blame for the bicycle blasts, Mr. Shinde said:

“We have to investigate. We should not come to conclusion immediately.”

The country’s prime minister sought to allay anger over the blasts.

“I appeal to the public to remain calm and maintain peace,” he said.

Asaduddin Owaisi, a Muslim member of Parliament from Hyderabad, called the blasts “a cowardly dastardly act.”

“I feel that the priority is to maintain peace,” he said. “Let us not fall pray to rumors.”

Hari Kumar contributed reporting.

Read More..