Algerian assault ends crisis, 23 hostages dead

Last Updated 4:18 p.m. ET

AIN AMENAS, Algeria Algerian special forces stormed a natural gas complex in the middle of the Sahara desert on Saturday in a "final assault" that ended a four-day-old hostage crisis, according to the state news agency and two foreign governments.

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Panetta: "We know that lives have been lost" in Algeria

The Algerian government says 32 militants and 23 captives were killed during a three-day military operation to end the hostage crisis.

The provisional death toll was issued by the Interior Ministry on Saturday after the special forces operation crushed the last holdout of militants at the gas refinery, resulting in 11 extremists killed along with seven hostages.

A total of 685 Algerian and 107 foreigner workers were freed over the course of the standoff, which began on Wednesday, the statement added.

The military also confiscated machine guns, rocket launchers, missiles and grenades attached to suicide belts.

The ministry added that the militants involved consisted of 32 men of various nationalities, including three Algerians.

An earlier report said the army was forced to intervene Saturday after a fire broke out in the plant, and said the militants killed the hostages. It wasn't immediately possible to verify who killed the captives.

The report, quoting a security source, also didn't give the nationalities of the dead.

The Ain Amenas plant is jointly run by BP, Norway's Statoil and Algeria's state-owned oil company. The governments of Norway and Britain said they received confirmation the siege was over.

A high-resolution satellite image of the Amenas gas facility taken on Dec 7, 2012.

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GeoEye Satellite Image

The entire refinery was mined with explosives and set to blow up, the Algerian state oil company Sonatrach said in a statement, adding that the process of clearing the explosives had begun. The Algerian media reported that the militants had planned to blow up the complex.

The siege transfixed the world after radical Islamists linked to al Qaeda stormed the complex, which contained hundreds of plant workers from all over the world.

Algeria's response to the crisis was typical of the country's history in confronting terrorists — military action over negotiation — and caused an international outcry from countries worried about their citizens. Algerian military forces twice assaulted the areas where the hostages were being held with minimal apparent negotiation — first on Thursday and then on Saturday.

The latest deaths bring the official Algerian tally of dead to 19 hostages and 29 militants, although reports on the number of dead, injured and freed have been contradictory throughout the crisis. Militants originally said they had seized 41 foreign hostages.

The al Qaeda-linked militants attacked the plant Wednesday morning. They crept across the border from Libya, 60 miles (100 kilometers) away, and fell on a pair of buses taking foreign workers to the airport. The buses' military escort drove off the attackers in a blaze of gunfire that sent bullets zinging over the heads of crouching workers. A Briton and an Algerian — probably a security guard — were killed.

Frustrated, the militants turned to the vast gas complex, divided between the workers' living quarters and the refinery itself, and seized hostages, the Algerian government said. The gas flowing to the site was cut off.

On Thursday, Algerian helicopters opened fire on a convoy carrying both kidnappers and their hostages, resulting in many deaths, according to witnesses.

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Algeria Hostage Crisis Over, One American Dead

After the Algerian military's final assault on terrorists holding hostages at a gas complex, the four-day hostage crisis is over, but apparently with additional loss of life among the foreign hostages.

One American, Fred Buttaccio of Texas, has been confirmed dead by the U.S. State Department. Two more U.S. hostages remain unaccounted for, with growing concern among U.S. officials that they did not survive.

But another American, Mark Cobb of Corpus Christi, Texas is now confirmed as safe. Sources close to his family say Cobb, who is a senior manager of the facility, is safe and reportedly sent a text message " I'm alive."

Inside Algerian Hostage Crisis, One American Dead Watch Video

American Hostages Escape From Algeria Terrorists Watch Video

In a statement, President Obama said, "Today, the thoughts and prayers of the American people are with the families of all those who were killed and injured in the terrorist attack in Algeria. The blame for this tragedy rests with the terrorists who carried it out, and the United States condemns their actions in the strongest possible terms. ... This attack is another reminder of the threat posed by al Qaeda and other violent extremist groups in North Africa."

According to Algerian state media, 32 militants are dead and a total of 23 hostages perished during the four-day siege of the In Amenas facility in the Sahara. The Algerian Interior Ministry also says 107 foreign nationals who worked at the facility for BP and other firms were rescued or escaped from the al Qaeda-linked terrorists who took over the BP joint venture facility on Wednesday.

The Japanese government says it fears "very grave" news, with multiple casualties among the 10 Japanese citizens working at the In Amenas gas plant.

Five British nationals and one U.K. resident are either deceased or unaccounted for in the country, according to British Foreign Minister William Hague. Hague also said that the Algerians have reported that they are still trying to clear boobytraps from the site.

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NASA planet-hunter is injured and resting

Lisa Grossman, physical sciences reporter

(Image: NASA/Kepler mission/Wendy Stenzel)

NASA's planet-hunting Kepler telescope has put its search for alien Earths on hold while it rests a stressed reaction wheel.

The injured wheel normally helps to control the telescope's orientation, keeping it pointed continuously at the same patch of sky. Kepler stares at the thousands of stars in its field of view to watch for the telltale blinks that occur when a planet crosses in front of its star. It has found nearly 3000 potential planets outside our solar system since its launch in 2009, transforming the field of exoplanet research and raising hopes of someday finding alien life.

When it launched, Kepler had four reaction wheels: three to control its motion along each axis, and one spare. But last July, one wheel stopped turning. If the spacecraft loses a second wheel, the mission is over.

So when another wheel started showing signs of elevated friction on 7 January, the team decided to play it safe. After rotating the spacecraft failed to fix the problem, NASA announced yesterday that they're placing Kepler in safe mode for 10 days to give the wheel a chance to recover.

The hope is that the lubricating oil that helps the wheel's ball bearings run smoothly around a track will redistribute itself during the rest period.

The telescope can't take any science data while in safe mode. But if the wheel recovers on its own, Kepler's extended mission will run until 2016, leaving it plenty of time to make up for the lost days.

"Kepler is a statistical mission," says Charlie Sobeck, Kepler's deputy project manager at NASA's Ames Research Centre in Mountain View, California. "In the long run, as long as we make the observations, it doesn't matter a lot when we make the observations."

Despite the high stakes, the team doesn't seem too worried.

"Each wheel has its own personality, and this particular wheel has been something of a free spirit," Sobeck says. "It's had elevated torques throughout the mission. This one is typical to what we've seen in the past, and if we had four good wheels we probably wouldn't have taken any action."

"I prefer to picture the spacecraft lounging at the shore of the cosmic ocean sipping a Mai Tai so that she'll be refreshed and rejuvenated for more discoveries," wrote Kepler co-investigator Natalie Batalha in an email.

The team will check up on the wheel on 27 January and return to doing science as soon as possible.

There are two exoplanet missions currently being considered for after Kepler is finished, says Doug Hudgins at NASA Headquarters in Washington, DC. One, TESS (Terrestrial Exoplanet Survey Satellite), would scan the entire sky for planets transiting the stars nearest to the sun. The other, FINESSE (Fast Infrared Exoplanet Spectroscopy Survey Explorer), would take spectra of planets as they passed in front of their stars as a way to probe their atmospheres.

The missions are being evaluated now, and NASA will probably select one this spring, Hudgins says. The winner will launch in 2017.

If Kepler goes down with its reaction wheel, that won't affect which mission wins, he adds. "That's a straight-up competition based on the merits of the two concept study reports."

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Japan PM holds Algerian hostage task force meeting

TOKYO: Japanese Prime Minister Shinzo Abe attended a meeting Saturday of a government task force on the Algeria hostage crisis after cutting short a trip to Southeast Asia, a report said.

After arriving back in Tokyo Abe headed straight to his official residence where the meeting was to be held, Kyodo news agency reported.

"I would like to firmly respond," Abe was quoted as saying. He called for continued efforts to collect accurate information on the situation in Algeria and for close international cooperation during the crisis.

Al-Qaeda-linked gunmen, cited by Mauritania's ANI news agency, said they still held seven foreigners at a remote Algerian gas plant deep in the Sahara desert. An Algerian security official put their number at 10.

The kidnappers said they were still holding three Belgians, two Americans, one Japanese and a Briton, although Belgium said there was no indication any of its nationals were being held.

More workers remain unaccounted for, and the fate of at least 10 Japanese nationals and eight Norwegian hostages is still unknown.

The Islamist captors are demanding a prisoner swap and an end to French military action in Mali.

The meeting in Tokyo took place shortly after a joint news conference in Washington involving US Secretary of State Hillary Clinton and Japanese Foreign Minister Fumio Kishida.

"Japan takes the position that terrorism is definitely intolerable and impermissible," Kishida said.

"The government of Japan has been requesting the government of Algeria to place the utmost priority on ensuring the safety and the lives of the hostages," he added.

International criticism of the haste with which Algeria launched a dramatic military assault to rescue the hostages has been mounting, after an Algerian security official said it had left dead 12 hostages and 18 kidnappers.

Japanese plant builder JGC, which has 78 employees in the country, said it had now accounted for 17 of them -- seven Japanese and 10 others, including two Philippine nationals and a Romanian.

JGC president Koichi Kawana and other senior officials had left for Algeria by early Saturday, Kyodo reported.

- AFP/ck

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American among those killed in Algeria hostage crisis

STORY HIGHLIGHTS

• NEW: Frederick Buttaccio was killed in Algeria, a U.S. official says


• Algeria says 12 hostages overall were killed in the wake of a military operation


• Terrorists are "entrenched" in a gas refinery with captives, Algerian state news says


• The U.S. rejects a reported prisoner exchange offer voiced by a jihadist spokesman

(CNN) -- After days of chaos, drama and an untold number of deaths, Algerian special forces troops are holding their fire -- and hoping for a peaceful resolution -- to the hostage crisis at a gas facility in the North African nation's remote eastern desert.

Survivors have described their harrowing escapes from Islamic militants who attacked Wednesday. Some invented disguises, others sneaked out with locals, and at least one ran for his life with plastic explosives strapped around his neck.

Yet others didn't make it -- either because they were killed or are still being held.

Algerian troops earlier this week staged a military offensive that some nations slammed, claiming it didn't make hostages' safety the top priority. For now, they are trying a different tact, the state-run Algerian Press Service reported Friday evening.

"The special forces ... are still seeking a peaceful settlement before neutralizing the terrorist group currently entrenched in the refinery, and free a group of hostages who are still detained," according to the official report.

It isn't clear how many hostages were seized by the Islamic militants and how many were initially or are still being held. The Thursday military operation ended with 650 hostages -- including 100 foreigners -- freed, while at least 12 were killed, reports the Algerian Press Service.

The dead include one American, Frederick Buttaccio, according to U.S. State Department spokeswoman Victoria Nuland, as well as one French and one British citizen.

At least 30 foreign workers were unaccounted for, according to the official media report, which has not been separately confirmed.

British Prime Minister David Cameron said Friday that "significantly" fewer than 30 of his countrymen were still hostages. There could be as few as three Americans still being held, two U.S. officials said earlier this week.

The fate of eight workers with Norway's Statoil, some of them Norwegians, is unclear, according to the company. The same is true for 14 Japanese, Chief Cabinet Secretary Yoshihide Suga told reporters in Tokyo. And Malaysia's state-run news agency, citing its foreign ministry, reported Thursday two of its citizens were held captive.

A spokesman for Moktar Belmoktar, a veteran jihadist who leads the Brigade of the Masked Ones -- a militant group associated with al Qaeda in the Islamic Maghreb -- reportedly offered to free U.S. hostages in exchange for two prisoners.

The prisoners are Sheikh Omar Abdel Rahman, who orchestrated the 1993 World Trade Center bombing, and Aafia Siddiqui, a Pakistani woman jailed in the United States on terrorism charges, the spokesman said in an interview with a private Mauritanian news agency.

Asked Friday about the offer, State Department spokeswoman Victoria Nuland rejected it, restating U.S. policy of not negotiating with terrorists.

Opinion: Algeria situation is a wake-up call for the U.S.

With the situation remains very much unsettled, officials from countries involved in the crisis said they have no doubt who is to blame.

"This is an act of terror," U.S. Secretary of State Hillary Clinton said Friday. "The terrorists ... are the ones who have assaulted this facility (and took) hostage Algerians and others (from) around the world who were going about their daily business."

A dangerous escape

The ordeal began when the militants -- apparently angry about Algeria's support in a rout of their comrades in neighboring Mali -- targeted the gas field, which is operated by Algeria's state oil company in partnership with foreign companies.

At the start of the siege, the militants gathered all Westerners into one group and tied them up, according to survivors.

The kidnappers were equipped with AK-47 rifles and put explosives-laden vests on some hostages, a U.S. State Department official said.

Some escaped by disguising themselves, according to Regis Arnoux, who runs a catering firm at the site and spoke to some of his 150 employees who were freed. He said they all were "traumatized."

Some Algerian hostages were free to walk around the site but not leave, according to Arnoux. A number of them still escaped.

As the Algerian military launched its operation Thursday, the militants moved some hostages, according to one survivor's account.

With plastic explosives strapped around their necks, these captives were blindfolded and gagged before being loaded into five Jeeps, according to the brother of former hostage Stephen McFaul.

McFaul managed to escape after the vehicle he was in -- one of several targeted by Algerian fighters -- crashed, with the explosives still around his neck, his brother told CNN from Belfast, Northern Ireland.

"I haven't seen my mother move as fast in all my life, and my mother smile as much, hugging each other," Brian McFaul said upon his family hearing his brother was safe. "... You couldn't describe the feeling."

Sadly, McFaul said the other four Jeeps were "wiped out" in an explosion, and his brother believed the hostages inside did not survive.

Nations mobilize to help citizens caught up in crisis

U.S. Defense Secretary Leon Panetta, speaking in London, said the United States was working round the clock to ensure the safe return of its citizens.

Those freed include some Americans, while other U.S. nationals are still unaccounted for, U.S. officials said.

Meanwhile, the United States is evacuating 10 to 20 people caught up in the crisis, a U.S. defense official told CNN on Friday. They will be taken to U.S. facilities in Europe, the official said, where the condition of those injured can be assessed.

Britain has sent trauma experts and consular affairs officers who can issue emergency passports to a location about 450 kilometers (280 miles) away from the besieged plant, a Foreign Office official said, so they'll be "as close" as possible to the scene.

BP said Friday that a "small number of BP employees" were unaccounted for. The same held for some workers with Statoil, though nine others with the company -- including five who escaped -- are safe. Four Norwegians and a Canadian with that oil firm are in an airport hotel in Bergen, Norway, after being transported from Algeria, Statoil spokeswoman Sissel Rinde said.

Both BP and Statoil -- two of the foreign companies with In Amenas operations -- are pulling personnel from Algeria, which is Africa's largest natural gas producer and a major supplier of natural gas to Europe.

BP said it had flown 11 of its employees and several hundred staff from other companies out of the North African country Thursday and expected another flight Friday.

Mark Cobb, a Texan who has a LinkedIn profile identifying him as general manager for a BP joint venture out of In Amenas, told CNN he was "safe," having escaped on "the first day," though he didn't elaborate.

A U.S. military C-130 plane flew 12 wounded in the ordeal out of Algeria earlier Friday, a U.S. defense official said. None of them were Americans, though efforts continue to evacuate freed Americans.

There is so much conflicting information on safety of the hostages.
Yoshihide Suga, Japan's Chief Cabinet Secretary

Three workers for a Japanese engineering company that was working on the site have been contacted and are safe, said Takeshi Endo, a senior manager for JGC Corp. But the company had not been able to contact 14 others, he said.

France's foreign ministry said that, in addition to one death, three of its citizens were rescued.

Japan 'terribly disappointed' in Algerian military operation

Algeria faces tough questions from governments of kidnapped nationals over its handling of the crisis. Neither the United States nor Britain, for instance, were told in advance about Algeria's military operation Thursday.

Japanese Chief Cabinet Secretary Yoshihide Suga said his nation's officials urged Algeria's government to avoid exposing hostages to danger. Japanese Vice Minister Shunichi Suzuki summoned Algeria's ambassador Friday to express Tokyo's concern

"We are terribly disappointed about the Algerians' military operation," Suga said.

U.S. officials offered a similar plea to the Algerians, urging them to be cautious and make the hostages' safety their first priority, an official in President Barack Obama's administration said.

A senior U.S. official said U.S. officials did not trust information they got from the Algerians, "because we hear one thing and then we hear something else."

But Algeria acted out of a sense of urgency, Communications Minister Mohamed Said told state television, after noticing hostages being moved toward "a neighboring country," where kidnappers could use them "as a means of blackmail with criminal intent."

Algerian troops fired on at least two SUVs trying to leave the facility, Algerian radio said. And a reporter saw clashes near the site, according to the Algerian Press Service and radio reports.

"There were a number of dead and injured, we don't have a final figure," the communications minister said of casualties following the operation.

Belmoktar, the man behind the group claiming responsibility for the attack and kidnappings, is known for seizing hostages.

French counterterrorism forces have long targeted Belmoktar, an Algerian who lost an eye fighting in Afghanistan in his teens. Libyan sources said he spent several months in Libya in 2011, exploring cooperation with local jihadist groups and securing weapons.

The militants said they carried out the operation because Algeria allowed French forces to use its airspace in attacking Islamist militants in Mali. Media in the region reported the attackers issued a statement demanding an end to "brutal aggression on our people in Mali" and cited "blatant intervention of the French crusader forces in Mali."

Latest on the Mali situation

French Prime Minister Jean-Marc Ayrault said the Algerian hostage situation "confirms the gravity of the terrorist threat and the necessity to fight it with a determined and united front."

That sentiment was echoed by Clinton, the top U.S. diplomat. She stressed the need for a concerted, international effort to address terrorist and other threats around Africa.

"It is absolutely essential that, while we work to resolve this particular terrible situation, we continue to broaden and deepen our counterterrorism cooperation," she said Friday. "It is not only cooperation with Algeria, it is international cooperation against a common threat."

CNN's Barbara Starr, Laura Smith-Spark, Mike Mount, Joe Sutton, Elwyn Lopez, Frederik Pleitgen, Dan Rivers, Mitra Mobasherat, Saskya Vandoorne, Laura Perez Maestro, Junko Ogura, Dheepthi Namasivayam, Saad Abedine, Elise Labott and Tim Lister contributed to this report, as did journalists Peter Taggart from Belfast and Said Ben Ali from Algiers.

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At least one American dead in Algerian hostage crisis

Updated at 6:41 p.m. ET

An American in the Algerian hostage standoff in the Algerian desert has been killed, CBS News has learned.

Fredrick Buttaccio from Katy, Texas near Houston, was an employee of the oil company BP. It is unknown how he died, but U.S. government sources tell CBS News his body has been recovered and his family has been notified.

Who are the terrorists that Islamic militants want freed?

Meanwhile, a U.S. military plane has landed in Amenas, Algeria to pick up nine passengers - one American and eight foreign nationals - to be transported to Landstuhl, Germany, a military source told CBS News.

The flight, which contains an air medical evacuation team, was expected to have departed Algeria by Thursday afternoon.

It's not clear exactly how many total casualties have resulted from the fighting, but Algeria's state news agency reported that 12 foreign and Algerian workers had died since the start of the operation, citing an unidentified security source. That information could not be independently confirmed.

As CBS News correspondent Mark Phillips reported, the freed hostages told of how they fled in the confusion as the Algerian army attacked. Many were injured, some badly. One person said: "It happened so fast."

But it hasn't ended quickly, reported Phillips. The Algerians say they've freed nearly a hundred foreigners. And as they were being bused away, many thanked their rescuers. "They kept us all nice and safe and fought off the bad guys," said another person.

Also, more detail of the ordeal has emerged with the freed hostages. Some say they had explosives hung around their necks as they were placed in a convoy of vehicles by their captors. When the cars began to move, the Algerian Army units surrounding the site feared the captives were being taken out of the compound -- and opened fire.

The al Qaeda-linked Masked Battalio, led from afar by Moktar Belmoktar, may still be holding some of the roughly 30 foreigners still unaccounted for.

U.S. Secretary of State Hillary Clinton did not get into specifics on the crisis Friday afternoon, but described it as an "extremely difficult and dangerous situation" and called on the Algerian government to "preserve innocent life" in their efforts to fully resolve the crisis. Clinton spoke after the State Department said that Americans were still being held hostage.

The desert siege erupted Wednesday when the militants attempted to hijack two buses at the plant, were repulsed, and then seized the sprawling refinery, which is 800 miles south of Algiers. They had claimed the attack came in retaliation for France's recent military intervention against Islamist rebels in neighboring Mali, but security experts have said it must have taken weeks of planning to hit the remote site.

Since then, Algeria's government has kept a tight grip on information about the siege.

The militants had seized hundreds of workers from 10 nations at Algeria's remote Ain Amenas natural gas plant. The overwhelming majority were Algerian and were freed almost immediately.

Algerian forces retaliated Thursday by storming the plant in an attempted rescue operation that left leaders around the world expressing strong concerns about the hostages' safety.

Militants claimed 35 hostages died on Thursday when Algerian military helicopters opened fire as the Islamists transported the hostages around the gas plant. While Algerian officials acknowledged some hostage deaths, the number could not be independently confirmed.

On Friday, trapped in the main refinery area, the militants offered to trade two American hostages for two prominent terror figures jailed in the United States. Those the militants sought included Omar Abdel Rahman, the blind sheikh who was convicted of plotting to blow up New York City landmarks and considered the spiritual leader of the 1993 World Trade Center bombing, and Aafia Siddiqui, a Pakistani scientist convicted of shooting at two U.S. soldiers in Afghanistan.

But U.S. Defense Secretary Leon Panetta said there would be "no place to hide" for anyone who looks to attack the United States.

"Terrorists should be on notice that they will find no sanctuary, no refuge, not in Algeria, not in North Africa, not anywhere," Panetta said Friday.

Workers kidnapped by the militants came from around the world — Americans, Britons, French, Norwegians, Romanians, Malaysians, Japanese, Algerians.

A high-resolution satellite image of the Amenas gas facility taken on Dec 7, 2012.

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GeoEye Satellite Image

World leaders have expressed strong concerns in the past few days about how Algeria was handing the situation and its apparent reluctance to communicate.

Terrorized hostages from Ireland and Norway trickled out of the plant. BP, which jointly operates the plant, said it had begun to evacuate employees from Algeria.

A U.S. military C-130 transport plane flew a number of people including former Ain Amenas hostages from the Algerian capital of Algiers to a U.S. facility in Europe, a U.S. official said. He declined to be specific about the destination, their nationalities or the extent of the wounds that he said some had.

A flood of foreign energy workers were being evacuated from the North African nation amid security concerns.

BP evacuated one U.S. citizen along with other foreign energy workers from Algeria to Mallorca and then London. The oil giant said three flights left Algeria on Thursday, carrying 11 BP employees and several hundred energy workers from other companies.

A fourth plane was taking more people out of the country on Friday, BP said.

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One American Confirmed Dead in Algeria

U.S. officials told ABC News that at least one American has been killed in the hostage standoff at an Algerian gas plant, and the family of the deceased American has been notified.

An al Qaeda-linked group called the Masked Brigade and led by the one-eyed jihadi Mokhtar Belmokhtar raided the BP joint venture facility in In Amenas on Wednesday, taking an undetermined number of hostages from more than half a dozen nations, including at least two Americans.

On Friday, the group demanded the release of two convicted terrorists held in U.S. prisons, including the "blind sheikh" who helped plan the first attack on New York's World Trade Center, in exchange for the freedom of two American hostages, according to an African news service.

The terror group reportedly contacted a Mauritanian news service with the offer. In addition to the release of Omar Abdel-Rahman, who planned the 1993 World Trade Center bombing, they demanded the release of Aifia Siddiqui, a Pakistani scientist who shot at two U.S. soldiers in Afghanistan in 2008.

Asked about the unconfirmed report of a proposed swap, State Department spokeswoman Victoria Nuland said firmly, "The United States does not negotiate with terrorists." She repeated the statement again when questioned further. She also said she was not prepared to get into any details about the status of Americans in "an ongoing hostage situation."

At least three Americans were being held hostage by the militants when the Algerian military mounted a rescue operation at the facility Thursday that reportedly resulted in casualties.

Five other Americans who were at the facility when it was attacked by the terrorists are now safe and believed to have left the country, according to U.S. officials.

Algeria Hostage Situation: Military Operation Mounted Watch Video

Reports that dozens of hostages were killed during the Algerian military's attempt to retake the compound have not been confirmed, though Algeria's information minister has confirmed that there were casualties. It's known by U.S. and foreign officials that multiple British, Japanese and Norwegian hostages were killed.

According to an unconfirmed report by an African news outlet, the militants said seven hostages survived the attack, including two Americans, one Briton, three Belgians and a Japanese national. U.S. officials monitoring the case had no information indicating any Americans have been injured or killed, but said the situation is fluid and casualties cannot be ruled out.

On Friday, a U.S. military plane evacuated between 10 and 20 people in need of medical attention, none of them American, from In Amenas and took them to an American medical facility in Europe. A second U.S. plane is preparing to evacuate additional passengers in need of medical attention.

British Prime Minister David Cameron told parliament today that the terror attack "appears to have been a large, well coordinated and heavily armed assault and it is probable that it had been pre-planned."

"The terrorist group is believed to have been operating under Mokhtar Belmokhtar, a criminal terrorist and smuggler who has been operating in Mali and in the region for a number of years," said Cameron.

Cameron said Algerian security forces are still in action at the facility. On Thursday, he said that the situation was "very bad … A number of British citizens have been taken hostage. Already, we know of one who has died. ... I think we should be prepared for the possibility for further bad news, very difficult news in this extremely difficult situation."

The kidnappers had earlier released a statement saying there are "more than 40 crusaders" held "including 7 Americans."

U.S. officials had previously confirmed to ABC News that there were at least three Americans held hostage at the natural gas facility jointly owned by BP, the Algerian national oil company and a Norwegian firm at In Amenas, Algeria.

"I want to assure the American people that the United States will take all necessary and proper steps that are required to deal with this situation," said Panetta. "I don't think there's any question that [this was] a terrorist act and that the terrorists have affiliation with al Qaeda."

He said the precise motivation of the kidnappers was unknown.

"They are terrorists, and they will do terrorist acts," he said.

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Matching names to genes: the end of genetic privacy?

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Are we being too free with our genetic information? What if you started receiving targeted ads for Prozac for the depression risk revealed by your publicly accessible genome? As increasing amounts of genetic information is placed online, many researchers believe that guaranteeing donors' privacy has become an impossible task.

The first major genetic data collection began in 2002 with the International HapMap Project – a collaborative effort to sequence genomes from families around the world. Its aim was to develop a public resource that will help researchers find genes associated with human disease and drug response.

While its consent form assured participants that their data would remain confidential, it had the foresight to mention that with future scientific advances, a deliberate attempt to match a genome with its donor might succeed. "The risk was felt to be very remote," says Laura Lyman Rodriguez of the US government's National Human Genome Research Institute in Bethesda, Maryland.

Their fears proved to be founded: in a paper published in Science this week, a team led by Yaniv Erlich of the Whitehead Institute in Cambridge, Massachusetts, used publicly available genetic information and an algorithm they developed to identify some of the people who donated their DNA to HapMap's successor, the 1000 Genomes Project.

Anonymity not guaranteed

Erlich says the research was inspired by a New Scientist article in which a 15-year-old boy successfully used unique genetic markers called short tandem repeats (STRs) on his Y chromosome to track down his father, who was an anonymous sperm donor. Erlich and his team used a similar approach.

First they turned to open-access genealogy databases, which attempt to link male relatives using matching surnames and similar STRs. The team chose a few surnames from these sources, such as "Venter",and then searched for the associated STRs in the 1000 Genomes Project's collection of whole genomes. This allowed them to identify which complete genomes were likely to be from people named Venter.

Although the 1000 Genome Project's database, which at last count had 1092 genomes, does not contain surname data, it does contain demographic data such as the ages and locations of its donors. By searching online phonebooks for people named Venter and narrowing those down to the geographic regions and ages represented in the whole genomes, the researchers were able to find the specific person who had donated his data.

In total, the researchers identified 50 individuals who had donated whole genomes. Some of these were female, whose identity was given away because of having the same location and age as a known donor's wife.

Matter of time

Before publishing their findings, the team warned the US National Institutes of Health (NIH) and other institutions involved in the project about the vulnerability in their data. Rodriguez says that they had been anticipating that someone would identify donors, "although we didn't know how or when".

To prevent Erlich's method from being used successfully again, age data has been removed from the project's website. Erlich says that this makes it difficult, although not impossible, to narrow the surnames down to an individual.

"The genie's out of the bottle," says Jeffrey Kahn of Florida State University in Tallahassee. "It's a harbinger of a changing paradigm of privacy." A cultural zeitgeist led by companies such as Facebook has led to more information sharing than anyone would have thought possible back in 2002 when HapMap first began, he says.

Recurring problem

This is not the first time genome confidentiality has been compromised. When James Watson made his genome public in 2007, he blanked out a gene related to Alzheimer's. But a group of researchers successfully inferred whether he carried the risky version of this gene by examining the DNA sequences on either side of the redacted gene.

While someone is bound to find another way to identify genetic donors, says Rodriguez, the NIH believes it would be wrong to remove all of their genome data from the public domain. She says that full accessibility is "very beneficial to science", but acknowledges that the project needs to strike a careful balance between confidentiality and open access.

It is especially pertinent, says Kahn, because genetic data does not just carry information from the person from whom it was taken. It can also reveal the genetic details of family members, some of whom might not want that information to be public. A relative's genome might reveal your own disease risk, for example, which you might not want to know or have an employer learn of. While laws prohibit health insurers and employers from discriminating against people based on their genetic data, it would not be difficult to give another reason for denying you a job.

An individual's relatives could not prevent that individual from learning about themselves, says Rodriguez, but researchers should encourage would-be genome donors to discuss the risks and benefits with their families.

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Euro gains despite US economic data; yen loses

NEW YORK: The US dollar slipped against the euro Thursday despite encouraging US data on housing and jobs, while the yen slumped to new multi-year lows on speculation of new easing.

The euro benefited from more positive remarks from regional leaders and solid results of a Spanish bond auction, analysts said.

"The Euro rallied to 1.3376 as the European Central Bank and European Union President Herman Van Rompuy stirred hopes of seeing the euro-area return to growth in 2013, but optimism surrounding the single currency may fail to materialize as the debt crisis continues to drag on the real economy," said David Song of DailyFX.

Also helping was strong investor enthusiasm at a US$4.5 billion Spanish bond auction, pushing the troubled government's borrowing costs lower.

At 2200 GMT the euro was at US$1.3375, compared to US$1.3286 late Wednesday.

The US dollar failed to get a boost from a strong fall in weekly jobless claims, a sign of the pace of layoffs, and a rebound in housing starts in December, showing sustained strength in the housing sector.

The yen meanwhile fell to a fresh 30 month low. The dollar topped the 90 yen level briefly before slipping back to 89.86 yen, compared to 88.37 a day earlier.

The euro rose to 120.20 yen, its best level since April 2011, up from 117.42 Wednesday.

David Gilmore of Foreign Exchange Analytics, said speculation was rising that the Bank of Japan could add to stimulus measures in its next policy meeting on January 21-22.

The British pound fell to US$1.5992 from US$1.6006, while the US dollar gained to 0.9322 Swiss francs from 0.9309 francs.

- AFP/jc

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His 2nd term, America's 2nd chance?

STORY HIGHLIGHTS

• Reeling from the turmoil of the last four years, the country may be ready to regroup


• President Obama, adopting a more assertive posture, will need to still persuade a divided country to get things done


• The economy is improving, the nation's demographics are shifting and a new America is emerging

Washington (CNN) -- On the eve of the inauguration, President Barack Obama's second term may also be America's second chance.

The country, in the last four years, has been battered by an economic earthquake while trying to reconcile a debt load threatening to cripple the next generation.

It has been pulled apart by political extremism and the inability to compromise in Washington. The people have been divided -- by demographic shifts, cultural battles and clashes between the rich and the poor, the haves and the have-nots.

So, days before the president's second inaugural, the nation, too, is set to regroup. What it does differently this time around and the decisions the people make, experts say, will speak to the kind of America that emerges during the next four years.

"The enormous promise that everyone felt four years ago, it isn't completely gone but we have diminished our horizons," said Robert Schmuhl, an American studies professor at the University of Notre Dame. "We have learned that we are now living in an era of limits." Obama is perhaps more keenly aware of this than most.

Hope and hurdles

The 44th President was ushered into the Oval Office by a wave of seemingly limitless optimism and buoyed by the historic nature of his presidency as the first African American elected to the lead the free world.

But once in office, he found his efforts to right an economy hobbled by high unemployment -- 10% at its worse in 2009 -- and home foreclosure rates -- one in 29 homes were in foreclosure between 2007 and 2012 -- were limited by the magnitude of the problem and the political realities of a partisan Congress.

His plan to reform the nation's healthcare system further expanded political divides in Washington and helped lead to huge losses among his party's moderates in the 2010 election.

His re-election this fall — due in no small part to demographic shifts that included large numbers of minorities and women — was quickly followed by a protracted and deeply partisan showdown over trimming the nation's debt.

"I think Obama has learned some things," said Curtis Gans, director of American University's Center for the Study of the American Electorate. "He's going to be unlike most second term presidents in that he will be far more assertive than he was in his first term. He will be stronger on pushback against some of the most extreme elements in the Republican House. He's willing to go to battle on the whole concept of getting the economy moving."

The public saw hints of that assertiveness on Monday during a surprise news conference, where he lashed out at Republicans in Congress for playing politics with the debt ceiling.

"We are not a deadbeat nation," Obama said during a nearly hour-long briefing from the East Room of the White House. It a newly combative tone, he called it "absurd" for the federal government not to pay "bills that have already been racked up" and said he will not negotiate "with a gun at the head of the American people."

From Obamacare to the economy to Sandy Hook

Over the next four years, the country will also get a chance to see whether the Affordable Care Act -- or "Obamacare" -- is a positive or negative step for the nation. In 2014, many of the most controversial provisions, including requiring individuals to either participate in a health insurance program or pay a penalty, take effect.

"We will see whether or not we have the strength within ourselves to figure out how we should deal with entitlement programs," Schmuhl said. "In a way, it's a period when the administration will be dealing with problems that are in process."

Obama's ability -- or failure -- to navigate all of this while coming off as a strong, levelheaded leader could help set the nation's tone for years to come.

"If the economy becomes more robust you will have no doubt he will point back and say see that's what I was doing," said Julian Zelizer, a professor of history and public affairs at Princeton University and CNN contributor.

Reagan, Clinton faced similar issues

It's what happened when former President Ronald Reagan, who led the nation at a time when the country was reeling from a tough economy and just starting to get over the Vietnam War. In his second term "there was a sense America was moving in the right direction in terms of how it was doing around the globe," Zelizer said.

When former President Bill Clinton took office the economy wasn't doing well, but by the second term the economy was picking up, allowing him to deliver a balanced budget and ultimate surplus by the end of his presidency.

"There was clearly a shift in the mood," Zelizer said. "In both cases, the presidents were good at claiming credit for it."

Mood matters in the age of austerity

Everyday folks have learned to cut back and suck it up—some after finding themselves underwater on mortgages they could not afford to pay; others after losing jobs that their companies could no longer afford to keep.

So, Americans have been using their credit cards less and paying down debt more -- household debt as a percentage of disposable personal income is at its lowest rate in almost 30 years, according to the Federal Reserve and credit card balances had reached their lowest level in more than a decade.

And many expect the same discipline from their government.

"Americans will be realistic, just as those in government need to be realistic," Schmuhl said of citizens' likely approach to their own finances over the next four years.

But, as Obama enters his second term, both the housing and job markets have been on a slow and steady uptick. Housing sales were up 6% in 2012 -- the biggest gain since 2005, according to CoreLogic -- and the unemployment rate had dropped to 7.8% in December, although there are still 4.8 million Americans -- or 39.1% of the jobless -- classified as long-term unemployed, according to the Bureau of Labor Statistics.

"Going into the second term, the fiscal situation will continue the agenda and the discussion," he said. "It will say a lot about us and where not only the government but the nation might be going. If it is difficult and, shall we say, fractured and there's a sense coming out of it that things are not working as they should my guess is that the public will begin saying: 'When will Washington work on our behalf?'"

Governing on a deadline

That sentiment was foreshadowed in the frustration over the down-to-the-wire, partisan political maneuvering as the last Congress sought to avert the fiscal cliff's steepest domestic spending cuts.

Obama appeared to prevail on that skirmish, delivering on a promise to raise tax rates on wealthy Americans -- although he shifted his definition of "wealthy" from those making $250,000 or more to those making $400,000 and up.

According to Pew Research Center and Gallup polls, Americans were none too impressed with how lawmakers handled the negotiations or the deal that was struck.

Some 41% of those polled disapproved of the deal, according to Pew, and 52% thought the deal would hurt people like them. In the Gallup poll, 67% - disapproved of congressional Republicans' handled the negotiations while 55% disapproved of how Democrats performed.

Still, partly due to deliberate redistricting to protect -- or create -- more partisan congressional districts, American voters continued to elect or re-elect safe representatives to do their bidding in Congress. For instance, most of the 435 members of the House of Representatives -- Republicans and Democrats -- faced little real opposition on Election Day in 2012.

Other battlegrounds: Sequester, gun control, immigration

But the next battle looms. Just weeks after Obama takes his oath of office, a new Congress will be tasked with addressing the automatic spending cuts, or sequester, that were kicked down the road in order to pass a smaller deal at the end of the year.

The new Congress will also consider raising the nation's debt ceiling, or the ability of the U.S. Treasury to borrow money to pay America's bills. Most agree that defaulting on the nation's obligations would be disastrous for America and the global economy, but some Republicans in Congress are starting to hint that they may be prepared to let that happen anyway if large spending cuts are not secured.

And after that, the fight over gun control, a high priority for the White House in the aftermath of the Connecticut school massacre, will pit the president against many members of the House and Senate from safe districts with high ratings and big-dollar donations from gun rights advocates.

The president and vice president unveiled a major plan on Wednesday that included 23 executive actions the president has ordered on his own, while urging the new Congress to take on the meaty issues of an assault weapons ban, limits on the number of bullets a gun magazine can hold, and other sweeping reforms the gun lobby and others say would gut the constitutional right to bear arms.

Immigration reform, another White House priority, will also stoke ideological differences and test the demographic shifts in Congress. For the first time, the House Democratic caucus is dominated by women and racial minorities, while the Republican caucus in that chamber is largely composed of white men. In the Senate, 20 women — the largest number in history — currently hold office.

But women and minorities are far outnumbered and outranked by white males on some of the most powerful congressional committees. And despite several high-ranking exceptions, Obama's Cabinet -- so far -- is shaping up to be largely male and white.

"The first thing we learned is that we're not post-race. That was a lot of willful imagining in '08 that his election would allow us to transcend these questions of race," said Mark Anthony Neal, a cultural and Black studies professor at Duke University. "The American electorate is looking different in terms of race and ethnicity and young folks being engaged. In 2016 our political realities will look more like our demographic realities."

And that's where the nation's shift over the next four years may be most visible.

But look first to the 2014 midterms and then the 2016 presidential election to see if the people signal continued frustration with the current regime -- in Congress and in the White House -- or demonstrate through the power of their vote that they feel the nation has finally turned the corner.

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