Apple TV Is Running Late

So, Apple‘s big plan to talk cable companies into making the iPod of the television industry thus far involves getting Time Warner to let it put HBO Go on its box (if you buy a cable subscription!), something other similar boxes already do. How very unexciting. It’s surprising that Apple TV doesn’t already offer HBO Go, since its biggest competitors Roku and Xbox 360 have had it for over a year. And it’s not like Apple has spent that time coming up with some innovative arrangement that would that would excite the cord-cutter (and cord-never) set. No, per Bloomberg’s   Edmund Lee and Adam Satariano, by mid-2013, Apple TV owners who also subscribe to cable or satellite TV can watch the premium channel through their TVs via Apple’s box. Yes, if you have an Apple TV, you can watch HBO either on it or through your cable box. The choice is yours!

RELATED: Apple Won’t Be Revolutionizing TV Anytime Soon if Cable Has Their Say

HBO Go is a modest improvement over the HBO On Demand offerings because it offers HBO’s entire library of shows, not just a select few. HBO also puts brand new episodes up right after they air, which is nice for people who forget to set or have a too-full DVR. But, cable subscribers already have access to HBO Go—on their computers. The improvement here is that existing subscribers now have another way to get those shows onto their TV screens.

RELATED: HBO Is Finally OK with Cord Cutting (In Scandinavia)

This too-late move to get Time Warner on its box surfaces a larger problem: Apple TV has very few apps so far, as AllThingsD’s Peter Kafka points out. HBO Go will bring its total outside app count up to 10, a ton fewer than Xbox and Roku. And yet, many have talked about Apple TV as the gadget that will change everything. Perhaps techies overlooked the deficit because the company has been in secret talks with cable companies to supposedly revolutionize TV for years. It’s coming, the Apple rumors promised, fending off any doubts that Apple would deliver something great. But, nothing exceptional has arrived yet, certainly nothing that sounds like the Apple TV code Steve Jobs claimed to have cracked shortly before his death. Rather, this sounds like something Apple should have done years ago. Apple, if anything, is playing catch-up. 

RELATED: Apple Might Be Making Apple TV Content Deals

But maybe Apple isn’t the place to look for the future of television. Elsewhere in TV land, something new, different, and possibly revolutionary is happening. Netflix, an entity that does not require a cable subscription, will release its first big-budget TV drama today. Unlike Apple, Netflix is trying to operate outside of the traditional cable-bundle structure in order to create an alternative for people who don’t want to pay into the old system. Instead of playing by HBO’s rules and selling its shows on its strict terms, Netflix wants to be the HBO of streaming TV, by creating premium shows that will draw people to Netflix for a premium price. Also in an attempt to do things differently, Netflix has released all the episodes at once, to appeal to our binge watching sensibilities. The experiment might not work. But at least, unlike Apple, Netflix is trying. 

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Christina Ricci Is Engaged to James Heerdegen

02/02/2013 at 12:05 PM EST

Christina Ricci

Noel Vasquez/Getty. Inset:Splash News Online

Christina Ricci's happy secret has been confirmed – she's engaged!

The actress, 32, who has been wearing ring finger bling since October, is headed to the altar with James Heerdegen.

Heerdegen, is a camera technician and met Ricci when the two were working on ABC's former TV series Pan-Am. Their relationship was first public last February.

Ricci most recently stepped out (and showed off her ring!) Friday to join luxury beauty brand, Make Up For Ever, in Los Angeles to introduce a limited edition bag she helped to design.

– Julie Jordan

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New rules aim to get rid of junk foods in schools

WASHINGTON (AP) — Most candy, high-calorie drinks and greasy meals could soon be on a food blacklist in the nation's schools.

For the first time, the government is proposing broad new standards to make sure all foods sold in schools are more healthful.

Under the new rules the Agriculture Department proposed Friday, foods like fatty chips, snack cakes, nachos and mozzarella sticks would be taken out of lunch lines and vending machines. In their place would be foods like baked chips, trail mix, diet sodas, lower-calorie sports drinks and low-fat hamburgers.

The rules, required under a child nutrition law passed by Congress in 2010, are part of the government's effort to combat childhood obesity. While many schools already have improved their lunch menus and vending machine choices, others still are selling high-fat, high-calorie foods.

Under the proposal, the Agriculture Department would set fat, calorie, sugar and sodium limits on almost all foods sold in schools. Current standards already regulate the nutritional content of school breakfasts and lunches that are subsidized by the federal government, but most lunchrooms also have "a la carte" lines that sell other foods. Food sold through vending machines and in other ways outside the lunchroom has never before been federally regulated.

"Parents and teachers work hard to instill healthy eating habits in our kids, and these efforts should be supported when kids walk through the schoolhouse door," Agriculture Secretary Tom Vilsack said.

Most snacks sold in school would have to have less than 200 calories. Elementary and middle schools could sell only water, low-fat milk or 100 percent fruit or vegetable juice. High schools could sell some sports drinks, diet sodas and iced teas, but the calories would be limited. Drinks would be limited to 12-ounce portions in middle schools and to 8-ounce portions in elementary schools.

The standards will cover vending machines, the "a la carte" lunch lines, snack bars and any other foods regularly sold around school. They would not apply to in-school fundraisers or bake sales, though states have the power to regulate them. The new guidelines also would not apply to after-school concessions at school games or theater events, goodies brought from home for classroom celebrations, or anything students bring for their own personal consumption.

The new rules are the latest in a long list of changes designed to make foods served in schools more healthful and accessible. Nutritional guidelines for the subsidized lunches were revised last year and put in place last fall. The 2010 child nutrition law also provided more money for schools to serve free and reduced-cost lunches and required more meals to be served to hungry kids.

Sen. Tom Harkin, D-Iowa, has been working for two decades to take junk foods out of schools. He calls the availability of unhealthful foods around campus a "loophole" that undermines the taxpayer money that helps pay for the healthier subsidized lunches.

"USDA's proposed nutrition standards are a critical step in closing that loophole and in ensuring that our schools are places that nurture not just the minds of American children but their bodies as well," Harkin said.

Last year's rules faced criticism from some conservatives, including some Republicans in Congress, who said the government shouldn't be telling kids what to eat. Mindful of that backlash, the Agriculture Department exempted in-school fundraisers from federal regulation and proposed different options for some parts of the rule, including the calorie limits for drinks in high schools, which would be limited to either 60 calories or 75 calories in a 12-ounce portion.

The department also has shown a willingness to work with schools to resolve complaints that some new requirements are hard to meet. Last year, for example, the government relaxed some limits on meats and grains in subsidized lunches after school nutritionists said they weren't working.

Schools, the food industry, interest groups and other critics or supporters of the new proposal will have 60 days to comment and suggest changes. A final rule could be in place as soon as the 2014 school year.

Margo Wootan, a nutrition lobbyist for the Center for Science in the Public Interest, said surveys by her organization show that most parents want changes in the lunchroom.

"Parents aren't going to have to worry that kids are using their lunch money to buy candy bars and a Gatorade instead of a healthy school lunch," she said.

The food industry has been onboard with many of the changes, and several companies worked with Congress on the child nutrition law two years ago. Major beverage companies have already agreed to take the most caloric sodas out of schools. But those same companies, including Coca-Cola and PepsiCo, also sell many of the non-soda options, like sports drinks, and have lobbied to keep them in vending machines.

A spokeswoman for the American Beverage Association, which represents the soda companies, says they already have greatly reduced the number of calories that kids are consuming at school by pulling out the high-calorie sodas.

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Follow Mary Clare Jalonick on Twitter at http://twitter.com/mcjalonick

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"Great Rotation"- A Wall Street fairy tale?

NEW YORK (Reuters) - Wall Street's current jubilant narrative is that a rush into stocks by small investors has sparked a "great rotation" out of bonds and into equities that will power the bull market to new heights.

That sounds good, but there's a snag: The evidence for this is a few weeks of bullish fund flows that are hardly unusual for January.

Late-stage bull markets are typically marked by an influx of small investors coming late to the party - such as when your waiter starts giving you stock tips. For that to happen you need a good story. The "great rotation," with its monumental tone, is the perfect narrative to make you feel like you're missing out.

Even if something approaching a "great rotation" has begun, it is not necessarily bullish for markets. Those who think they are coming early to the party may actually be arriving late.

Investors pumped $20.7 billion into stocks in the first four weeks of the year, the strongest four-week run since April 2000, according to Lipper. But that pales in comparison with the $410 billion yanked from those funds since the start of 2008.

"I'm not sure you want to take a couple of weeks and extrapolate it into whatever trend you want," said Tobias Levkovich, chief U.S. equity strategist at Citigroup. "We have had instances where equity flows have picked up in the last two, three, four years when markets have picked up. They've generally not been signals of a continuation of that trend."

The S&P 500 rose 5 percent in January, its best month since October 2011 and its best January since 1997, driving speculation that retail investors were flooding back into the stock market.

Heading into another busy week of earnings, the equity market is knocking on the door of all-time highs due to positive sentiment in stocks, and that can't be ignored entirely. The Standard & Poor's 500 Index <.spx> ended the week about 4 percent from an all-time high touched in October 2007.

Next week will bring results from insurers Allstate and The Hartford , as well as from Walt Disney , Coca-Cola Enterprises and Visa .

But a comparison of flows in January, a seasonal strong month for the stock market, shows that this January, while strong, is not that unusual. In January 2011 investors moved $23.9 billion into stock funds and $28.6 billion in 2006, but neither foreshadowed massive inflows the rest of that year. Furthermore, in 2006 the market gained more than 13 percent while in 2011 it was flat.

Strong inflows in January can happen for a number of reasons. There were a lot of special dividends issued in December that need reinvesting, and some of the funds raised in December tax-selling also find their way back into the market.

During the height of the tech bubble in 2000, when retail investors were really embracing stocks, a staggering $42.7 billion flowed into equities in January of that year, double the amount that flowed in this January. That didn't end well, as stocks peaked in March of that year before dropping over the next two-plus years.

MOM AND POP STILL WARY

Arguing against a 'great rotation' is not necessarily a bearish argument against stocks. The stock market has done well since the crisis. Despite the huge outflows, the S&P 500 has risen more than 120 percent since March 2009 on a slowly improving economy and corporate earnings.

This earnings season, a majority of S&P 500 companies are beating earnings forecast. That's also the case for revenue, which is a departure from the previous two reporting periods where less than 50 percent of companies beat revenue expectations, according to Thomson Reuters data.

Meanwhile, those on the front lines say mom and pop investors are still wary of equities after the financial crisis.

"A lot of people I talk to are very reluctant to make an emotional commitment to the stock market and regardless of income activity in January, I think that's still the case," said David Joy, chief market strategist at Columbia Management Advisors in Boston, where he helps oversee $571 billion.

Joy, speaking from a conference in Phoenix, says most of the people asking him about the "great rotation" are fund management industry insiders who are interested in the extra business a flood of stock investors would bring.

He also pointed out that flows into bond funds were positive in the month of January, hardly an indication of a rotation.

Citi's Levkovich also argues that bond investors are unlikely to give up a 30-year rally in bonds so quickly. He said stocks only began to see consistent outflows 26 months after the tech bubble burst in March 2000. By that reading it could be another year before a serious rotation begins.

On top of that, substantial flows continue to make their way into bonds, even if it isn't low-yielding government debt. January 2013 was the second best January on record for the issuance of U.S. high-grade debt, with $111.725 billion issued during the month, according to International Finance Review.

Bill Gross, who runs the $285 billion Pimco Total Return Fund, the world's largest bond fund, commented on Twitter on Thursday that "January flows at Pimco show few signs of bond/stock rotation," adding that cash and money markets may be the source of inflows into stocks.

Indeed, the evidence suggests some of the money that went into stock funds in January came from money markets after a period in December when investors, worried about the budget uncertainty in Washington, started parking money in late 2012.

Data from iMoneyNet shows investors placed $123 billion in money market funds in the last two months of the year. In two weeks in January investors withdrew $31.45 billion of that, the most since March 2012. But later in the month money actually started flowing back.

(Additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)

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Suicide bomber kills guard at U.S. embassy in Turkey

ANKARA (Reuters) - A far-leftist suicide bomber killed a Turkish security guard at the U.S. embassy in Ankara on Friday, officials said, blowing open an entrance and sending debris flying through the air.

The attacker detonated explosives strapped to his body after entering an embassy gatehouse. The blast could be heard a mile away. A lower leg and other human remains lay on the street.

Interior Minister Muammer Guler said the bomber was a member of an illegal far-left group. The White House said the suicide attack was an "act of terror", but the motivation was unclear.

Islamist radicals, extreme left-wing groups, ultra-nationalists and Kurdish militants have all carried out attacks in Turkey in the past. There was no claim of responsibility.

"The suicide bomber was ripped apart and one or two citizens from the special security team passed away," said Prime Minister Tayyip Erdogan, who was attending a ceremony in Istanbul when the blast happened.

"This event shows that we need to fight together everywhere in the world against these terrorist elements," he said.

Turkish media reports identified the bomber as Ecevit Sanli, a member of the Revolutionary People's Liberation Party-Front (DHKP-C) leftist group, who was involved in attacks on a police station and a military staff college in Istanbul in 1997.

The DHKP-C opposes what it sees as U.S. influence over Turkish foreign policy.

Turkey is a key U.S. ally in the Middle East with common interests ranging from energy security to counter-terrorism and has been one of the leading advocates of foreign intervention to end the conflict in neighboring Syria.

Around 400 U.S. soldiers have arrived in Turkey over the past few weeks to operate Patriot anti-missile batteries meant to defend against any spillover of Syria's civil war, part of a NATO deployment due to be fully operational in the coming days.

"HUGE EXPLOSION"

U.S. Ambassador Francis Ricciardone emerged through the main gate of the embassy, which is surrounded by high walls, shortly after the explosion to address reporters, flanked by a security detail as a Turkish police helicopter hovered overhead.

"We're very sad of course that we lost one of our Turkish guards at the gate," Ricciardone said, describing the victim as a "hero" and thanking Turkish authorities for a prompt response.

A U.S. national security source said U.S. officials believed the incident was a suicide bombing but said security measures had worked properly, in that the attacker was not able to get past the outer perimeter of the compound and neither the embassy buildings were damaged, nor were U.S. personnel injured.

It was the second attack on a U.S. mission in four months. On September 11, 2012, U.S. Ambassador Christopher Stevens and three American personnel were killed in an attack on the U.S. Consulate in Benghazi, Libya.

The attack in Benghazi, blamed on al Qaeda-affiliated militants, sparked a political furore in Washington over accusations that U.S. missions were not adequately safeguarded.

A well-known Turkish journalist, Didem Tuncay, who was on her way in to the embassy to meet Ricciardone when the attack took place, was in a critical condition in hospital.

"It was a huge explosion. I was sitting in my shop when it happened. I saw what looked like a body part on the ground," said travel agent Kamiyar Barnos, whose shop window was shattered around 100 meters away from the blast.

OPPOSED TO U.S. INFLUENCE

The DHKP-C, deemed a terrorist organization by both the United States and Turkey, has been blamed for suicide attacks in the past, including one in 2001 that killed two police officers and a tourist in Istanbul's central Taksim Square.

Guler said the bomber could have been from the DHKP-C which has carried out a series of deadly attacks on police stations in the last six months, or a similar group.

The attack may have come in retaliation for an operation against the DHKP-C last month in which Turkish police detained 85 people. A court subsequently remanded 38 of them in custody over links to the group.

The U.S. consulate in Istanbul warned its citizens to be vigilant and to avoid large gatherings, while the British mission in Istanbul called on British businesses to tighten security after what it called a "suspected terrorist attack".

In 2008, Turkish gunmen with suspected links to al Qaeda, opened fire on the U.S. consulate in Istanbul, killing three Turkish policemen. The gunmen died in the subsequent firefight.

The most serious bombings in Turkey occurred in November 2003, when car bombs shattered two synagogues, killing 30 people and wounding 146. Part of the HSBC Bank headquarters was destroyed and the British consulate was damaged in two more explosions that killed 32 people less than a week later. Authorities said those attacks bore the hallmarks of al Qaeda.

(Additional reporting by Daren Butler and Ayla Jean Yackley in Istanbul, Mark Hosenball in Washington; Writing by Nick Tattersall; Editing by Jon Hemming)

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Google moves closer to resolving EU investigation

BRUSSELS (Reuters) – Google has offered to take specific steps to allay competition regulators’ concerns about its business practices, in a major move towards ending a two-year investigation and avoiding billions of dollars in fines.

The European Commission said on Friday it had received detailed proposals from the world’s most popular search engine, which has been under investigation following complaints from more than a dozen companies, including Microsoft, that Google has used its market power to block rivals.

If the commission accepts the proposals under its settlement procedure, it would mean no fine and no finding of wrongdoing against Google.

Companies found to be in breach of EU rules can be fined as much as 10 percent of global turnover, which could mean up to $ 4 billion if there is no satisfactory resolution in Google’s case.

EU Competition Commissioner Joaquin Almunia told Reuters he had received Google’s submission, but declined to give details of the proposal.

“We are analyzing it,” he said.

Google spokesman Al Verney said the group continues to work cooperatively with the commission.

The company ranks first in Internet searching in Europe, with an 82 percent market share, versus 67 percent in the United States, according to research firm comScore.

Lobbying group ICOMP, whose members include complainants Microsoft, Foundem, Hot-map, Streetmap and Nextag, said any solution should include measures ensuring that rivals could compete on a level playing field with Google.

The FairSearch coalition, whose members include online travel agencies and complainants Expedia and TripAdvisor, said a third-party monitor should be appointed to ensure that Google lives up to any promises.

The commission, which acts as competition regulator in the 27-member European Union, is now expected to seek feedback from Google’s rivals and other interested parties, before launching an official market test.

Last month, Google won a major victory when U.S. antitrust regulators ended their investigation, saying the company had not manipulated its web search results to block rivals.

The commission has said Google may have favored its own search services over those of rivals, and copied travel and restaurant reviews from competing sites without permission.

The EU executive is also concerned the company may have put restrictions on advertisers and advertising to prevent them from moving their online campaigns to competing search engines.

(Reporting by Foo Yun Chee; Editing by Rex Merrifield and Hans-Juergen Peters)

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Jennifer Lawrence: 'My Pants Fell Off' at the SAG Awards!

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02/01/2013 at 12:00 PM ET

She’s been picking up Best Actress statues left and right for the few weeks, but we’re giving Jennifer Lawrence an award that really counts: Best Narration of a Wardrobe Malfunction.

“My pants fell off!” Lawrence exclaimed on Piers Morgan Tonight as he played her a video of her Dior Haute Couture gown “ripping” when she climbed the stairs at the SAG Awards to accept her win. Though the dress didn’t actually tear (it was the way it was designed) she still flashed a whole lotta leg.

Since the actress hadn’t seen the incident in action yet, we get to watch her cringe at the moment that set Twitter aflame. “Somebody trips me on the way I remember that,” she says during her play-by-play of the video. “I’m keepin’ it together, keepin’ it together … and then my pants fall off! Yep! Oh, god.”

Suggestion to the Academy Awards committee: Get this girl to narrate the entire telecast next year. We guarantee it’ll get you epic ratings. To see what we mean, check out her reaction to SAGs moment from the 2:30 mark in the video below.

–Jennifer Cress

PHOTOS: SEE THE BEST AWARD SHOW DRESSES SO FAR!

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Hedgehog Alert! Prickly pets can carry salmonella

NEW YORK (AP) — Add those cute little hedgehogs to the list of pets that can make you sick.

In the last year, 20 people were infected by a rare but dangerous form of salmonella bacteria, and one person died in January. The illnesses were linked to contact with hedgehogs kept as pets, according to a report released Thursday by the Centers for Disease Control and Prevention.

Health officials on Thursday say such cases seem to be increasing.

The CDC recommends thoroughly washing your hands after handling hedgehogs and cleaning pet cages and other equipment outside.

Other pets that carry the salmonella bug are frogs, toads, turtles, snakes, lizards, chicks and ducklings.

Seven of the hedgehog illnesses were in Washington state, including the death — an elderly man from Spokane County who died in January. The other cases were in Alabama, Illinois, Indiana, Michigan, Minnesota, Ohio and Oregon.

In years past, only one or two illnesses from this salmonella strain have been reported annually, but the numbers rose to 14 in 2011, 18 last year, and two so far this year.

Children younger than five and the elderly are considered at highest risk for severe illness, CDC officials said.

Hedgehogs are small, insect-eating mammals with a coat of stiff quills. In nature, they sometimes live under hedges and defend themselves by rolling up into a spiky ball.

The critters linked to recent illnesses were purchased from various breeders, many of them licensed by the U.S. Department of Agriculture, CDC officials said. Hedgehogs are native to Western Europe, New Zealand and some other parts of the world, but are bred in the United States.

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Online:

CDC report: http://www.cdc.gov/mmwr

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S&P 500 rises one percent as Wall Street rallies

NEW YORK (Reuters) - U.S. stocks hit five-year highs with each of the three major indexes up at least 1 percent on Friday, after jobs and manufacturing data showed the economy's sluggish recovery is still on track.

The Dow Jones industrial average <.dji> gained 139.22 points, or 1.00 percent, to 13,999.80. The Standard & Poor's 500 Index <.spx> rose 15.04 points, or 1.00 percent, to 1,513.15. The Nasdaq Composite Index <.ixic> advanced 35.47 points, or 1.13 percent, to 3,177.60.

(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)

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Syria warns of "surprise" response to Israel attack

BEIRUT/AMMAN (Reuters) - Syria warned on Thursday of a possible "surprise" response to Israel's attack on its territory and Russia condemned the air strike as an unprovoked violation of international law.

Damascus could take "a surprise decision to respond to the aggression of the Israeli warplanes", Syrian ambassador to Lebanon Ali Abdul-Karim Ali said a day after Israel struck against Syria.

"Syria is engaged in defending its sovereignty and its land," Ali told a website of the Lebanese militant group Hezbollah. Syria and Israel have fought several wars and in 2007 Israeli jets bombed a suspected Syrian nuclear site, without a military response from Damascus.

Diplomats, Syrian rebels and regional security sources said on Wednesday that Israeli jets had bombed a convoy near the Lebanese border, apparently hitting weapons destined for Hezbollah. Syria denied the reports, saying the target had been a military research center northwest of Damascus.

Hezbollah, which has supported Syrian President Bashar al-Assad as he battles an armed uprising in which 60,000 people have been killed, said Israel was trying to thwart Arab military power and vowed to stand by its ally.

"Hezbollah expresses its full solidarity with Syria's leadership, army and people," said the group which fought an inconclusive 34-day war with Israel in 2006.

Israel has remained silent on the attack and there has been little reaction from its Western backers, but Syria's allies in Moscow and Tehran were quick to denounce the strike.

Russia, which has blocked Western efforts to put pressure on Syria at the United Nations, said that any Israeli air strike would amount to unacceptable military interference.

"If this information is confirmed, then we are dealing with unprovoked attacks on targets on the territory of a sovereign country, which blatantly violates the U.N. Charter and is unacceptable, no matter the motives to justify it," the Foreign Ministry said in a statement.

Iranian deputy foreign minister Hossein Amir Abdullahian said the attack "demonstrates the shared goals of terrorists and the Zionist regime", Fars news agency reported. Assad portrays the rebels fighting him as foreign-backed, Islamist terrorists, with the same agenda as Israel.

"It is necessary for the sides which take tough stances on Syria to now take serious steps and decisive stances against this aggression by Tel Aviv and uphold criteria for security in the region," Abdullahian said.

An aide to Supreme Leader Ayatollah Ali Khamenei said on Saturday that Iran would consider any attack on Syria as an attack on itself, but Abdullahian made no mention of retaliation.

Hezbollah said the attack showed that the conflict in Syria was part of a scheme "to destroy Syria and its army and foil its pivotal role in the resistance front (against Israel)".

BLASTS SHOOK DISTRICT

Details of Wednesday's strike remain sketchy and, in parts, contradictory. Syria said Israeli warplanes, flying low to avoid detection by radar, crossed into its airspace from Lebanon and struck the Jamraya military research centre.

But the diplomats and rebels said the jets hit a weapons convoy heading from Syria to Lebanon, apparently destined for Assad's ally Hezbollah, and the rebels said they - not Israel - hit Jamraya with mortars.

The force of the dawn attack shook the ground, waking nearby residents from their slumber with up to a dozen blasts, two sources in the area said.

"We were sleeping. Then we started hearing rockets hitting the complex and the ground started shaking and we ran into the basement," said a woman who lives adjacent to the Jamraya site.

The resident, who declined to be named because of the sensitivity over Israel's reported strike on Wednesday morning, said she could not tell whether the explosions which woke her were the result of an aerial strike.

Another source who has a relative working inside Jamraya reported that a building inside the complex had been cordoned off after the attack and that flames were seen rising from the area after the attack.

"It appears that there were about a dozen rockets that appeared to hit one building in the complex," the source, who also asked not to be identified, told Reuters. "The facility is closed today."

Israeli newspapers quoted foreign media on Thursday for reports on the attack. Journalists in Israel are required to submit articles on security and military issues to the censor, which has the power to block any publication of material it deems could compromise state security.

Syrian state television said two people were killed in the raid on Jamraya, which lies in the 25-km (15-mile) strip between Damascus and the Lebanese border. It described it as a scientific research centre "aimed at raising the level of resistance and self-defense".

Diplomatic sources from three countries told Reuters that chemical weapons were believed to be stored at Jamraya, and that it was possible that the convoy was near the large site when it came under attack. However, there was no suggestion that the vehicles themselves had been carrying chemical weapons.

"The target was a truck loaded with weapons, heading from Syria to Lebanon," said one Western diplomat, echoing others who said the convoy's load may have included anti-aircraft missiles or long-range rockets.

The raid followed warnings from Israel that it was ready to act to prevent the revolt against Assad leading to Syria's chemical weapons and modern rockets reaching either his Hezbollah allies or his Islamist enemies.

A regional security source said Israel's target was weaponry given by Assad's military to fellow Iranian ally Hezbollah.

"This episode boils down to a warning by Israel to Syria and Hezbollah not to engage in the transfer of sensitive weapons," the source said. "Assad knows his survival depends on his military capabilities and he would not want those capabilities neutralized by Israel - so the message is this kind of transfer is simply not worth it, neither for him nor Hezbollah."

Such a strike or strikes would fit Israel's policy of pre-emptive covert and overt action to curb Hezbollah and does not necessarily indicate a major escalation of the war in Syria. It does, however, indicate how the erosion of the Assad family's rule after 42 years is seen by Israel as posing a threat.

Israel this week echoed concerns in the United States about Syrian chemical weapons, but its officials say a more immediate worry is that the civil war could see weapons that are capable of denting its massive superiority in airpower and tanks reaching Hezbollah; the group fought Israel in 2006 and remains a more pressing threat than its Syrian and Iranian sponsors.

(Additional reporting by Mariam Karouny and Oliver Holmes in Beirut, Gabriela Baczynska in Moscow and Marcus George in Dubai; editing by David Stamp)

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