Wall Street ends sour week with fifth straight decline

NEW YORK (Reuters) - Stocks fell for a fifth straight day on Friday, dropping 1 percent and marking the S&P 500's longest losing streak in three months as the federal government edged closer to the "fiscal cliff" with no solution in sight.

President Barack Obama and top congressional leaders met at the White House to work on a solution for the draconian debt-reduction measures set to take effect beginning next week. Stocks, which have been influenced by little else than the flood of fiscal cliff headlines from Washington in recent days, extended losses going into the close with the Dow Jones industrial average and the S&P 500 each losing 1 percent, after reports that Obama would not offer a new plan to Republicans. The Dow closed below 13,000 for the first time since December 4.

"I was stunned Obama didn't have another plan, and that's absolutely why we sold off," said Mike Shea, managing partner at Direct Access Partners LLC in New York. "He's going to force the House to come to him with something different. I think that's a surprise. The entire market is disappointed in a lack of leadership in Washington."

In a sign of investor anxiety, the CBOE Volatility Index <.vix>, known as the VIX, jumped 16.69 percent to 22.72, closing at its highest level since June. Wall Street's favorite fear barometer has risen for five straight weeks, surging more than 40 percent over that time.

The Dow Jones industrial average <.dji> dropped 158.20 points, or 1.21 percent, to 12,938.11 at the close. The Standard & Poor's 500 Index <.spx> lost 15.67 points, or 1.11 percent, to 1,402.43. The Nasdaq Composite Index <.ixic> fell 25.59 points, or 0.86 percent, to end at 2,960.31.

For the week, the Dow fell 1.9 percent. The S&P 500 also lost 1.9 percent for the week, marking its worst weekly performance since mid-November. The Nasdaq finished the week down 2 percent. In contrast, the VIX jumped 22 percent for the week.

Pessimism continued after the market closed, with stock futures indicating even steeper losses. S&P 500 futures dropped 26.7 points, or 1.9 percent, eclipsing the decline seen in the regular session.

All 10 S&P 500 sectors fell during Friday's regular trading, with most posting declines of 1 percent, but energy and material shares were among the weakest of the day, with both groups closely tied to the pace of growth.

An S&P energy sector index <.gspe> slid 1.8 percent, with Exxon Mobil down 2 percent at $85.10, and Chevron Corp off 1.9 percent at $106.45. The S&P material sector index <.gspm> fell 1.3 percent, with U.S. Steel Corp down 2.6 percent at $23.03.

Decliners outnumbered advancers by a ratio of slightly more than 2 to 1 on the New York Stock Exchange, while on the Nasdaq, two stocks fell for every one that rose.

"We've been whipsawing around on low volume and rumors that come out on the cliff," said Eric Green, senior portfolio manager at Penn Capital Management in Philadelphia, who helps oversee $7 billion in assets.

With time running short, lawmakers may opt to allow the higher taxes and across-the-board federal spending cuts to go into effect and attempt to pass a retroactive fix soon after the new year. Standard & Poor's said an impasse on the cliff wouldn't affect the sovereign credit rating of the United States.

"We're not as concerned with January 1 as the market seems to be," said Richard Weiss, senior money manager at American Century Investments, in Mountain View, California. "Things will be resolved, just maybe not on a good timetable, and any deal can easily be retroactive."

Trading volume was light throughout the holiday-shortened week, with just 4.46 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT on Friday, below the daily average so far this year of about 6.48 billion shares. On Monday, the U.S. stock market closed early for Christmas Eve, and the market was shut on Tuesday for Christmas. Many senior traders were absent this week for the holidays.

Highlighting Wall Street's sensitivity to developments in Washington, stocks tumbled more than 1 percent on Thursday after Senate Majority Leader Harry Reid warned that a deal was unlikely before the deadline. But late in the day, stocks nearly bounced back when the House said it would hold an unusual Sunday session to work on a fiscal solution.

Positive economic data failed to alter the market's mood.

The National Association of Realtors said contracts to buy previously owned U.S. homes rose in November to their highest level in 2-1/2 years, while a report from the Institute for Supply Management-Chicago showed business activity in the U.S. Midwest expanded in December.

"Economic reports have been very favorable, and once Congress comes to a resolution, the market should resume an upward trend, based on the data," said Weiss, who helps oversee about $125 billion in assets. "All else being equal, we see any further decline as a buying opportunity."

Barnes & Noble Inc rose 4.3 percent to $14.97 after the top U.S. bookstore chain said British publisher Pearson Plc had agreed to make a strategic investment in its Nook Media subsidiary. But Barnes & Noble also said its Nook business will not meet its previous projection for fiscal year 2013.

Shares of magicJack VocalTec Ltd jumped 10.3 percent to $17.95 after the company gave a strong fourth-quarter outlook and named Gerald Vento president and chief executive, effective January 1.

The U.S.-listed shares of Canadian drugmaker Aeterna Zentaris Inc surged 13.8 percent to $2.47 after the company said it had reached an agreement with the U.S. Food and Drug Administration on a special protocol assessment by the FDA for a Phase 3 registration trial in endometrial cancer with AEZS-108 treatment.

(Reporting by Ryan Vlastelica; Editing by Jan Paschal)

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Putin signs ban on U.S. adoptions of Russian children

MOSCOW (Reuters) - President Vladimir Putin signed a law on Friday that bans Americans from adopting Russian children and imposes other measures in retaliation for new U.S. legislation meant to punish Russian human rights abusers.

The law, which has ignited outrage among Russian liberals and child rights' advocates, enters into force on January 1 and is likely to strain U.S.-Russia relations.

As well as banning U.S. adoptions, it will also outlaw some non-governmental organizations that receive U.S. funding and impose a visa ban and asset freeze on Americans accused of violating the rights of Russians abroad.

Pro-Kremlin lawmakers initially drafted the bill to mirror the U.S. Magnitsky Act, which bars entry to Russians accused of involvement in the death in custody of anti-corruption lawyer Sergei Magnitsky and of other alleged rights abuses.

The restrictions on adoptions and non-profit groups were added to the legislation later, going beyond a tit-for-tat move and escalating a dispute with Washington at a time when ties are also strained by issues such as the Syrian crisis.

(Reporting By Alissa de Carbonnel; Editing By Steve Gutterman and Andrew Osborn)

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Gen. Norman Schwarzkopf, Commander in Persian Gulf War, Dies at 78

By Mike Fleeman

12/27/2012 at 08:10 PM EST

H. Norman Schwarzkopf, the Army general who commanded coalition forces in the Persian Gulf War against Saddam Hussein, died Thursday in Tampa, Fla., at age 78.

The cause of death was not immediately known. His death was confirmed to the Associated Press by a source.

Known as "Stormin' Norman" for his volcanic temper, the decorated Vietnam War combat soldier became a familiar face from his many press conferences during Operation Desert Storm in 1991.

Under his leadership during the presidency of George H.W. Bush, coalition forces drove Hussein's troops out of Kuwait, which Iraq had invaded, with relatively few coalition casualties, but the Iraqi leader remained in power.

Hussein would ultimately be left for Bush's presidential son, George W. Bush, to contend with.

After the Gulf War, Schwarzkopf became a television military analyst and went into a quiet retirement in Florida to write his memoirs.

The elder Bush, now hospitalized in intensive care, said in a statement that Schwarzkopf was a "true American patriot and one of the great military leaders of his generation."

"More than that, he was a good and decent man – and a dear friend," says Bush. "Barbara and I send our condolences to his wife Brenda and his wonderful family."

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Kenya hospital imprisons new mothers with no money

NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.

Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.

Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.

"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."

"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."

The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.

Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.

"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.

She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.

A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.

"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.

Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.

One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.

Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.

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Associated Press reporter Tom Odula contributed to this report.

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Stock index futures steady; budget talks eyed

PARIS (Reuters) - Stock index futures pointed to a steady Wall Street open, with S&P 500 futures down 0.11 percent, Dow Jones futures down 0.03 percent and Nasdaq 100 futures up 0.05 percent at 4.54 a.m. ET.

European shares were flat to slightly lower in early trade on Friday as investors waited to see if a deal to avoid the U.S. "fiscal cliff" would be reached before further boosting their exposure to equities. <.eu/>

President Barack Obama and lawmakers are launching a last-chance round of budget talks days before a New Year's deadline to reach a deal or watch the economy go off a "fiscal cliff." Obama and Vice President Joe Biden will meet congressional leaders from both parties at the White House on Friday at 3 p.m. EST.

On the macro front, investors awaited pending home sales data for November. Economists in a Reuters survey expect a 1.0 percent rise compared with a 5.2 percent gain in the previous month.

Investors in U.S.-based funds favored stock exchange-traded funds (ETFs) and emerging market equity mutual funds as the year wound down, data from Thomson Reuters' Lipper service showed on Thursday.

Satellite television provider DirecTV Group said its service fees would rise by an average of 4.5 percent in February due to increasing programming costs.

A Chinese court fined Apple 1 million yuan ($160,400) for hosting third-party applications on its App Store that were selling pirated electronic books, the official Xinhua news agency reported on Friday.

U.S. stocks fell for a fourth day on Thursday, but recovered most of their losses after the House of Representatives, in the barest sign of progress, said it would come back to work on avoiding the "fiscal cliff" this weekend.

The Dow Jones industrial average <.dji> slipped 18.28 points, or 0.14 percent, to 13,096.31 at the close. The Standard & Poor's 500 Index <.spx> declined 1.73 points, or 0.12 percent, to end at 1,418.10. The Nasdaq Composite Index <.ixic> dropped 4.25 points, or 0.14 percent, to close at 2,985.91.

(Reporting by Blaise Robinson; Editing by Helen Massy-Beresford)

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Peace envoy Brahimi, Syria diplomats in Moscow talks

MOSCOW (Reuters) - Russia will host Syria peace envoy Lakhdar Brahimi this week after Syrian officials held talks in Moscow on Thursday as part of a diplomatic drive to try to agree a plan to end the 21-month-old conflict, Russia's foreign ministry said.

Talks have moved to Moscow, a long-time Syria ally, after a flurry of meetings Brahimi held in Damascus this week, but the international envoy has disclosed little about his negotiations.

Brahimi, who saw Syrian President Bashar al-Assad on Monday and is planning to hold a series of meetings with Syrian officials and dissidents this week, is trying to broker a peaceful transfer of power.

More than 44,000 Syrians have been killed in a revolt against four decades of Assad family rule, a conflict that began with peaceful protests in March last year, but which has descended into civil war.

However, past peace efforts have floundered, with world powers divided over what has become an increasingly sectarian struggle between mostly Sunni Muslim rebels and Assad's security forces, drawn primarily from his Shi'ite-rooted Alawite minority.

Syrian Deputy Foreign Minister Faisal Makdad and an aide held talks at Russia's Foreign Ministry for less than two hours on Thursday, but declined to disclose any details of their visit.

A Russian Foreign Ministry source had said earlier that they would meet Foreign Minister Sergei Lavrov and Mikhail Bogdanov, the Kremlin's envoy for Middle East affairs.

Syrian and Lebanese sources said Makdad had been sent to Moscow to discuss the details of a peace plan proposed by Brahimi.

Foreign Ministry spokesman, Alexander Lukashevich, played down the idea that a specific plan was on the table in Moscow talks, at least none agreed by Moscow and Washington.

"We plan to discuss a range of issues linked to a political and diplomatic settlement in Syria, including Brahimi's efforts aimed at ending the violence and the launch of a comprehensive national dialogue," Lukashevich told reporters.

'TRYING TO FEEL A WAY OUT'

Asked about rumors of a Russian-American plan to resolve the conflict, he said: "There has not been and is no such plan."

"In our talks with Mr. Brahimi and with our American colleagues, we are trying to feel a way out of this situation on the basis of our common plan of action that was agreed in Geneva in June."

World powers believe Russia, which has given Assad military and diplomatic aid to help him weather the uprising, has the ear of the Syrian government and must be a key player in peace talks.

Moscow has tried to distance itself from Assad in recent months and has said it is not propping him up, but Lukashevich reiterated its stance that Assad's exit from power could not be a precondition for negotiations.

Setting such a condition, he said, would violate the terms of an agreement reached by world powers in Geneva on June 30 that called for a transitional government in Syria.

"The biggest disagreement ... is that one side thinks Assad should leave at the start of the process - that is the U.S. position, and the other thinks his departure should be a result of the process - that would be the Russian position," Dmitry Trenin, an analyst at the Moscow Carnegie Center, told Reuters.

But Trenin said battlefield gains made by the Syrian rebels were narrowing the gap between Moscow and Washington.

On Saturday, Lavrov said Syria's civil war had reached a stalemate, saying international efforts to get Assad to quit would fail. Bogdanov had earlier acknowledged that Syrian rebels might win.

Lavrov has said this month that Russia had no intention of offering Assad asylum and would not act as messenger for other nations seeking his exit. He has also said Russia lacks the sway to persuade him to step down.

(Additional reporting by Nastassia Astrasheuskaya; Writing by Alissa de Carbonnel; Editing by Andrew Osborn)

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Kate Winslet Marries in Secret

By Mike Fleeman

12/26/2012 at 09:10 PM EST

Talk about a Titanic secret.

Kate Winslet has tied the knot with Richard Branson's nephew, Ned Rocknroll, her rep tells PEOPLE.

"I can confirm that Kate Winslet married Ned Rock'nRoll in NY earlier this month in a private ceremony attended by her two children and a very few friends and family," the rep says. "The couple had been engaged since the summer."

According to British media reports, Leonardo DiCaprio gave away the bride in a ceremony so secret that the bride and groom's parents didn't know about it.

The Oscar-, Golden Globe- and Emmy-winning actress, 37, has been dating Rocknroll, 34, (his legal name) since fall of 2011.

In August 2011, she and Rocknroll were on the same Caribbean island owned by Branson when a fire broke out and Winslet rescued Branson's 90-year-old mother.

Winslet previously was married to Sam Mendes and Jim Threapleton.

• Reporting by JULIE JORDAN

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Predicting who's at risk for violence isn't easy

CHICAGO (AP) — It happened after Columbine, Virginia Tech, Aurora, Colo., and now Sandy Hook: People figure there surely were signs of impending violence. But experts say predicting who will be the next mass shooter is virtually impossible — partly because as commonplace as these calamities seem, they are relatively rare crimes.

Still, a combination of risk factors in troubled kids or adults including drug use and easy access to guns can increase the likelihood of violence, experts say.

But warning signs "only become crystal clear in the aftermath, said James Alan Fox, a Northeastern University criminology professor who has studied and written about mass killings.

"They're yellow flags. They only become red flags once the blood is spilled," he said.

Whether 20-year-old Adam Lanza, who used his mother's guns to kill her and then 20 children and six adults at their Connecticut school, made any hints about his plans isn't publicly known.

Fox said that sometimes, in the days, weeks or months preceding their crimes, mass murderers voice threats, or hints, either verbally or in writing, things like "'don't come to school tomorrow,'" or "'they're going to be sorry for mistreating me.'" Some prepare by target practicing, and plan their clothing "as well as their arsenal." (Police said Lanza went to shooting ranges with his mother in the past but not in the last six months.)

Although words might indicate a grudge, they don't necessarily mean violence will follow. And, of course, most who threaten never act, Fox said.

Even so, experts say threats of violence from troubled teens and young adults should be taken seriously and parents should attempt to get them a mental health evaluation and treatment if needed.

"In general, the police are unlikely to be able to do anything unless and until a crime has been committed," said Dr. Paul Appelbaum, a Columbia University professor of psychiatry, medicine and law. "Calling the police to confront a troubled teen has often led to tragedy."

The American Academy of Child & Adolescent Psychiatry says violent behavior should not be dismissed as "just a phase they're going through."

In a guidelines for families, the academy lists several risk factors for violence, including:

—Previous violent or aggressive behavior

—Being a victim of physical or sexual abuse

—Guns in the home

—Use of drugs or alcohol

—Brain damage from a head injury

Those with several of these risk factors should be evaluated by a mental health expert if they also show certain behaviors, including intense anger, frequent temper outbursts, extreme irritability or impulsiveness, the academy says. They may be more likely than others to become violent, although that doesn't mean they're at risk for the kind of violence that happened in Newtown, Conn.

Lanza, the Connecticut shooter, was socially withdrawn and awkward, and has been said to have had Asperger's disorder, a mild form of autism that has no clear connection with violence.

Autism experts and advocacy groups have complained that Asperger's is being unfairly blamed for the shootings, and say people with the disorder are much more likely to be victims of bullying and violence by others.

According to a research review published this year in Annals of General Psychiatry, most people with Asperger's who commit violent crimes have serious, often undiagnosed mental problems. That includes bipolar disorder, depression and personality disorders. It's not publicly known if Lanza had any of these, which in severe cases can include delusions and other psychotic symptoms.

Young adulthood is when psychotic illnesses typically emerge, and Appelbaum said there are several signs that a troubled teen or young adult might be heading in that direction: isolating themselves from friends and peers, spending long periods alone in their rooms, plummeting grades if they're still in school and expressing disturbing thoughts or fears that others are trying to hurt them.

Appelbaum said the most agonizing calls he gets are from parents whose children are descending into severe mental illness but who deny they are sick and refuse to go for treatment.

And in the case of adults, forcing them into treatment is difficult and dependent on laws that vary by state.

All states have laws that allow some form of court-ordered treatment, typically in a hospital for people considered a danger to themselves or others. Connecticut is among a handful with no option for court-ordered treatment in a less restrictive community setting, said Kristina Ragosta, an attorney with the Treatment Advocacy Center, a national group that advocates better access to mental health treatment.

Lanza's medical records haven't been publicly disclosed and authorities haven't said if it is known what type of treatment his family may have sought for him. Lanza killed himself at the school.

Jennifer Hoff of Mission Viejo, Calif. has a 19-year-old bipolar son who has had hallucinations, delusions and violent behavior for years. When he was younger and threatened to harm himself, she'd call 911 and leave the door unlocked for paramedics, who'd take him to a hospital for inpatient mental care.

Now that he's an adult, she said he has refused medication, left home, and authorities have indicated he can't be forced into treatment unless he harms himself — or commits a violent crime and is imprisoned. Hoff thinks prison is where he's headed — he's in jail, charged in an unarmed bank robbery.

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Online:

American Academy of Child & Adolescent Psychiatry: http://www.aacap.org

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

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Stock futures signal steady open

PARIS (Reuters) - U.S. stock index futures pointed to a steady open on Wall Street on Thursday, with futures for the S&P 500 up 0.04 percent, Dow Jones futures up 0.05 percent and Nasdaq 100 futures down 0.02 percent at 0941 GMT.

European shares rose early on Thursday in their first trading session following the Christmas break, with investors focusing on Washington's last-ditch efforts to avoid a damaging bout of fiscal tightening next year. <.eu/>

Efforts to prevent the U.S. economy from going over its 'fiscal cliff' resumed on Wednesday with less than a week to go before the potentially disastrous tax hikes and spending cuts kick in.

In a sign that there may be a way through the deadlock in Congress, Republican House of Representatives Speaker John Boehner offered to at consider any bill the Democrat-controlled Senate produced. President Barack Obama will try to revive budget crisis talks when he returns to Washington on Thursday after cutting short his Christmas break.

U.S. stocks fell on Wednesday, dragged lower by retail stocks after a report showed consumers spent less in the holiday shopping season than last year.

The 2012 holiday season may have been the worst for retailers since the 2008 financial crisis, with sales growth far below expectations, forcing many to offer massive post-Christmas discounts in hopes of shedding excess inventory.

The Dow Jones industrial average <.dji> slipped 24.49 points, or 0.19 percent, to 13,114.59 at Wednesday's close. The Standard & Poor's 500 Index <.spx> shed 6.83 points, or 0.48 percent, to 1,419.83. The Nasdaq Composite Index <.ixic> dropped 22.44 points, or 0.74 percent, to 2,990.16.

(Reporting by Blaise Robinson; Editing by John Stonestreet)

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Spring Wish denied as suicide bomber brings down Afghan juice empire

KABUL (Reuters) - When a Taliban suicide bomber killed two people on the edge of the Afghan capital this month, there was another casualty - a global fruit juice business optimistically called "Spring Wish" which provided work for thousands of farmers across the country.

Mustafa Sadiq's empire had been expanding healthily, bringing in badly needed foreign capital, before the attack inflicted the kind of financial loss cash-strapped Afghanistan can ill afford.

The pomegranate juice business was nearly wiped out in the split second it took the militant to detonate explosives in a truck parked near the factory on December 17.

Pieces of shredded metal were scattered everywhere. Chairs were hurled across the office where Sadiq had spent so much time figuring out how to beat the odds against decades of war, instability and hopelessness.

Sadiq was in Dubai drumming up new export deals when an assistant called with the bad news. The call that Sadiq said he did not get is also troubling him.

"So far no officials, for the sake of sympathy, have called us," Sadiq, 40, told Reuters, standing beside a year's supply of juice in containers that were ruined in the attack - nearly $10 million in losses overall.

"In this situation they should have called me and asked what kind of help they could provide. The agriculture, finance, commerce ministries. Nobody so far has visited or called."

The impact of the war, and expectations for the future, are often seen only through the eyes of Western or Afghan soldiers, or officials who point to the progress that has been made.

Sadiq offers another perspective. Some workers told him the bomber triggered the loudest blast they had heard in 30 years.

A Soviet invasion of Afghanistan in 1979 was followed by a decade of resistance by mujahideen fighters who drove them out. Then warlords carved out fiefdoms and destroyed half of the capital in the civil war that followed.

DIRTY POLITICS

The Taliban took over, were toppled in 2001 and are now raising fears they may return when U.S.-led NATO troops hand over security to Afghan forces in 2014.

But Sadiq does not see the Taliban as the biggest threat to Afghanistan's future. Instead, he says, officials have turned politics into a commercial enterprise driven by corruption.

"Government employees think it's time to fill their pockets and grab whatever they can. That will pave the way for civil war," said Sadiq, as workers feverishly loaded boxes of the little fruit juice left onto a truck, and others worked to rebuild a brick wall.

"You have to struggle, not run away. It is kind of like running away now. They have walls around themselves sitting there and they do not have contact with ordinary Afghans."

His disillusionment is shared by the Afghanistan Chamber of Commerce and Industries.

"There is no guarantee for investment in Afghanistan. People are afraid of the government, there is no rule of law. Government officials can do anything they want," the chamber's first vice-chairman, Jan Alokzai, told Reuters.

"President (Hamid) Karzai's words are only on paper and don't have any value."

Afghanistan's U.S.-backed government says it is committed to building up the economy, attracting foreign investment and helping Afghans secure a brighter future. Karzai says it is contracts with foreigners that spread graft.

WISHFUL THINKING?

The government has highlighted 2014 as a year to invest in Afghanistan, which relies heavily on foreign aid, and to take advantage of its cheap labor and land leases.

In each of the 10 years following 2014, the government hopes revenues from oil, natural gas, iron, copper and other mining ventures will generate $4 billion in revenue.

Sadiq spent time in Europe, waiting for an opportunity to return and invest in his homeland. He eventually opened a factory in an industrial park along Kabul's dusty Jalalabad Road in 2008, from where he broke into overseas markets.

Spring Wish, which employed about 1,000 people, was selling produce to the health conscious in Europe, Asia and the Middle East, bringing money into Afghanistan, while anxious Afghans carted $4.5 billion in cash out of the country last year to safety.

But when asked about the maps on a wall identifying parts of Afghanistan which offer opportunities for farmers and businesses like his, Sadiq could only put his head in his hands and cry.

The dark red seeds from Sadiq's fruits were prized in Europe for their antioxidant qualities, and in Japan where many believe they can help fight cancers. He seems most proud of the fact that he helped 40,000 farmers across Afghanistan earn a living.

As Sadiq tries to persuade his staff to keep dreaming big and to rebuild, one question may haunt him for some time. The suicide bomber parked his truck in a lane between his company and a foreign firm.

The Taliban said it attacked an American company next door, but he still wonders whether his factory, which relied on Italian machinery and benefited from U.S. aid programs, was the target. And he acknowledges he is desperate for money from Western donors.

"Around 120 people were working here and this factory was totally destroyed in the suicide attack," said Mohammed Jaw, 28, a general operator for the company. "A number of our workers will lose their jobs and now everyone is concerned about what happens next."

Despite the loss, Sadiq's entrepreneurial and marketing spirit seems intact.

"Have you tried the juice with mulberry flavor?" he asked proudly. "It's really good."

Then a worker brought the moment back to reality. He lifted his cellphone to show a photograph of the suicide bomber's severed head.

(Additional reporting by Mirwais Harooni; Editing by Nick Macfie)

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