EU states want 'fair tax share' from big business






MOSCOW: The finance ministers of Britain, France and Germany on Saturday launched a new drive to force big business to pay its fair share of tax and halt the schemes of top firms to keep payments to a minimum.

Britain's George Osborne, France's Pierre Moscovici and Germany's Wolfgang Schaeuble said it was time for internationally-coordinated action to clamp down on the practice of shifting profits from the company's home country to pay less tax under another jurisdiction.

The drive -- which is backed by a study by the Organisation for Cooperation and Economic Development (OECD) on the consequences of the so-called profit shifting -- comes as cash-strapped governments try to use every means to inject new funds into their budgets.

"We are talking about something that is fundamentally legal. We need to modify the law," admitted the OECD secretary general Angel Gurria. "Avoiding double taxation has become a way of having double non-taxation."

"No single country can go by itself," he said at a news conference on the sidelines of the G20 finance ministers' meeting in Moscow, insisting that the drive was not aimed at "bashing" individual corporate giants.

Schaeuble said it was "unfair that multinational companies should be able to use globalisation as a tool" not to pay their fair share of taxes while Moscovici described the issue as a "matter of fairness for our citizens".

Osborne said that current global tax rules had been developed almost 100 years ago -- along principles set out by the League of Nations in the 1920s -- and few changes had been made since.

"This means that the tax system does not reflect how international companies do business."

"We want businesses to pay the taxes that we set in our countries. And this cannot be achieved by one country alone. No one country can create an international tax system by itself."

According to the OECD, some multinational companies use strategies that allow them to pay just five per cent in corporate taxes while smaller businesses are paying 30 per cent.

It says that practices have become more aggressive in the past decade, with some multinationals creating offshore subsidiaries or shell companies and taking advantage of the tax breaks offered in the countries where these are registered.

- AFP/ck



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Centre pays no heed to state leaders: Karunanidhi

CHENNAI: DMK president M Karunanidhi on Saturday charged the central government of not being bothered by statements from political leaders in the states on issues like the attack on Indian fishermen by Sri Lankan forces or fuel price hikes.

Karunanidhi, whose party is a major constituent of the United Progressive Alliance ( UPA) government at the centre, said: "Every time fishermen from Tamil Nadu are attacked by Sri Lankan Navy, leaders of political parties issue statements of condemnation. Nevertheless, the attacks continue."

He added that the statements seem to make little impact on the governments of India or Sri Lanka. "Gone with the wind are statements of political leaders," he said.

Similarly, the price of fuel is hiked even though political parties issue statements opposing the hike, the DMK president said.

"Oil companies are not bothered about the social impact the price hikes have on the middle and poor classes," he said, referring to the hike in petrol and diesel prices announced Friday.

Urging the centre to take back the power to decide on oil prices from the oil marketing companies, Karunanidhi stressed that the current hike should be withdrawn.

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States' choices set up national health experiment


WASHINGTON (AP) — President Barack Obama's health care overhaul is unfolding as a national experiment with American consumers as the guinea pigs: Who will do a better job getting uninsured people covered, the states or the feds?


The nation is about evenly split between states that decided by Friday's deadline they want a say in running new insurance markets and states that are defaulting to federal control because they don't want to participate in "Obamacare." That choice was left to state governments under the law: Establish the market or Washington will.


With some exceptions, states led by Democrats opted to set up their own markets, called exchanges, and Republican-led states declined.


Only months from the official launch, exchanges are supposed to make the mind-boggling task of buying health insurance more like shopping on Amazon.com or Travelocity. Millions of people who don't have employer coverage will flock to the new markets. Middle-class consumers will be able to buy private insurance, with government help to pay the premiums in most cases. Low-income people will be steered to safety net programs like Medicaid.


"It's an experiment between the feds and the states, and among the states themselves," said Robert Krughoff, president of Consumers' Checkbook, a nonprofit ratings group that has devised an online tool used by many federal workers to pick their health plans. Krughoff is skeptical that either the feds or the states have solved the technological challenge of making the purchase of health insurance as easy as selecting a travel-and-hotel package.


Whether or not the bugs get worked out, consumers will be able to start signing up Oct. 1 for coverage that takes effect Jan. 1. That's also when two other major provisions of the law kick in: the mandate that almost all Americans carry health insurance, and the rule that says insurers can no longer turn away people in poor health.


Barring last-minute switches that may not be revealed until next week, 23 states plus Washington, D.C., have opted to run their own markets or partner with the Obama administration to do so.


Twenty-six states are defaulting to the feds. But in several of those, Republican governors are trying to carve out some kind of role by negotiating with federal Health and Human Services Secretary Kathleen Sebelius. Utah's status is unclear. It received initial federal approval to run its own market, but appears to be reconsidering.


"It's healthy for the states to have various choices," said Ben Nelson, CEO of the National Association of Insurance Commissioners. "And there's no barrier to taking somebody else's ideas and making them work in your situation." A former U.S. senator from Nebraska, Nelson was one of several conservative Democrats who provided crucial votes to pass the overhaul.


States setting up their own exchanges are already taking different paths. Some will operate their markets much like major employers run their health plans, as "active purchasers" offering a limited choice of insurance carriers to drive better bargains. Others will open their markets to all insurers that meet basic standards, and let consumers decide.


Obama's Affordable Care Act remains politically divisive, but state insurance exchanges enjoy broad public support. Setting up a new market was central to former Republican presidential candidate Mitt Romney's health care overhaul as governor of Massachusetts. There, it's known as the Health Connector.


A recent AP poll found that Americans prefer to have states run the new markets by 63 percent to 32 percent. Among conservatives the margin was nearly 4-1 in favor of state control. But with some exceptions, including Idaho, Nevada and New Mexico, Republican-led states are maintaining a hands-off posture, meaning the federal government will step in.


"There is a sense of irony that it's the more conservative states" yielding to federal control, said Sandy Praeger, the Republican insurance commissioner in Kansas, a state declining to run its own exchange. First, she said, the law's opponents "put their money on the Supreme Court, then on the election. Now that it's a reality, we may see some movement."


They're not budging in Austin. "Texas is not interested in being a subcontractor to Obamacare," said Lucy Nashed, spokeswoman for Gov. Rick Perry, who remains opposed to mandates in the law.


In Kansas, Praeger supported a state-run exchange, but lost the political struggle to Gov. Sam Brownback. She says Kansans will be closely watching what happens in neighboring Colorado, where the state will run the market. She doubts that consumers in her state would relish dealing with a call center on the other side of the country. The federal exchange may have some local window-dressing but it's expected to function as a national program.


Christine Ferguson, director of the Rhode Island Health Benefits Exchange, says she expects to see a big shift to state control in the next few years. "Many of the states have just run out of time for a variety of reasons," said Ferguson. "I'd be surprised if in the longer run every state didn't want to have its own approach."


In some ways, the federal government has a head start on the states. It already operates the Medicare Plan Finder for health insurance and prescription plans that serve seniors, and the Federal Employees Health Benefits Program. Both have many of the features of the new insurance markets.


Administration officials are keeping mum about what the new federal exchange will look like, except that it will open on time and people in all 50 states will have the coverage they're entitled to by law.


Joel Ario, who oversaw planning for the health exchanges in the Obama administration, says "there's a rich dialogue going on" as to what the online shopping experience should look like. "To create a website like Amazon is a very complicated exercise," said Ario, now a consultant with Manatt Health Solutions.


He thinks consumers should be able to get one dollar figure for each plan that totals up all their expected costs for the year, including premiums, deductibles and copayments. Otherwise, scrolling through pages of insurance jargon online will be a sure turn-off.


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Meteorite hits central Russia, 400 hurt


YEKATERINBURG/CHELYABINSK, Russia (Reuters) - About 400 people were injured when a meteorite shot across the sky in central Russia on Friday sending fireballs crashing to Earth, smashing windows and setting off car alarms.


Residents on their way to work in Chelyabinsk heard what sounded like an explosion, saw a bright light and then felt a shockwave, according to a Reuters correspondent in the industrial city 1,500 km (950 miles) east of Moscow.


The meteorite raced across the horizon, leaving a long white trail in its wake which could be seen as far as 200 km (125 miles) away in Yekaterinburg. Car alarms went off, windows shattered and mobile phones worked only intermittently.


Chelyabinsk city authorities said about 400 people sought medical help, mainly for light injuries caused by flying glass.


"I was driving to work, it was quite dark, but it suddenly became as bright as if it was day," said Viktor Prokofiev, 36, a resident of Yekaterinburg in the Urals Mountains.


"I felt like I was blinded by headlights," he said.


No fatalities were reported but President Vladimir Putin, who was due to host Finance Ministry officials from the Group of 20 nations in Moscow, and Prime Minister Dmitry Medvedev were informed.


A local ministry official said the meteor shower may have been connected with an asteroid the size of an Olympic swimming pool that was due to pass Earth at a distance of 27,520 km (17,100 miles) but this could not be confirmed.


Windows were shattered on Chelyabinsk's central Lenin Street and some of the frames of shop fronts buckled.


A loud noise, resembling an explosion, rang out at around 9.20 a.m. (0520 GMT). The shockwave could be felt in apartment buildings in the industrial city's centre.


"I was standing at a bus stop, seeing off my girlfriend," said Andrei, a local resident who did not give his second name. "Then there was a flash and I saw a trail of smoke across the sky and felt a shockwave that smashed windows."


A wall was damaged at the Chelyabinsk Zinc Plant but there was no environmental threat, a plant spokeswoman said.


Such incidents are rare. A meteorite is thought to have devastated an area of more than 2,000 sq km (1,250 miles) in Siberia in 1908, smashing windows as far as 200 km (125 miles) from the point of impact.


The Emergencies Ministry described Friday's events as a "meteor shower in the form of fireballs" and said background radiation levels were normal. It urged residents not to panic.


Chelyabinsk city authorities urged people to stay indoors unless they needed to pick up their children from schools and kindergartens. They said a blast had been heard at an altitude of 10,000 meters (32,800 feet), apparently signaling it occurred when the meteorite entered Earth's atmosphere.


The U.S. space agency NASA has said an asteroid known as 2012 DA14, about 46 meters in diameter, would have an encounter with Earth closer than any asteroid since scientists began routinely monitoring them about 15 years ago.


Television, weather and communications satellites fly about 500 miles higher. The moon is 14 times farther away.


(Writing by Alexei Anishchuk, Editing by Timothy Heritage and Janet Lawrence)



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Meteor strike in Russia hurts 250, sows panic






MOSCOW: A plunging meteor exploded with a blinding flash above central Russia on Friday, sowing panic as the hurtling space debris set off a shockwave that smashed windows and left over 250 people injured.

Morning traffic ground to a sudden halt in the Urals city of Chelyabinsk as the falling meteor partially burned up in the lower atmosphere above the city and lit up the morning sky, television footage showed.

The interior ministry said more than 250 people were wounded, three of them seriously, by the shockwave in Chelyabinsk and a half dozen other towns. The emergencies ministry said mobile communications were temporarily cut.

"At 0920 (0320 GMT) an object was observed above Chelyabinsk which flew by at great speed and left a trail behind. Within two minutes there were two bangs," regional emergencies official Yuri Burenko said in a statement.

"The shockwave broke glass in Chelyabinsk and a number of other towns in the region," he said.

Initial reports said a part of the meteorite fell 80 kilometres (50 miles) from the town of Satki, itself 100 kilometres west of the regional centre, but this has not been officially confirmed.

"There were thousands of phone calls that something was found and the forest is burning. But there is still no confirmed information that something fell" to the Earth's surface, said Burenko.

There were no reports that any locals had been hurt directly by a falling piece of meteorite. The defence ministry meanwhile said it had sent soldiers "to the sites of impact", without giving further details.

It was not clear if the meteor was linked to the asteroid 2012 DA 14 which is expected to pass about 17,200 miles (27,000 kilometres) above the Earth later Friday in a unusually close approach to the Earth.

The meteor "was quite a large object with a mass of several dozen tonnes," estimated Russian astronomer Sergei Smirnov of the Pulkovo observatory in an interview with the Rossia 24 channel.

Schools were closed for the day across the region after the shock wave blew out windows of buildings amid temperatures as low as minus 18 degrees Celsius (zero degrees Fahrenheit).

The local post service said several of its buildings had been damaged while the stadium of Chelyabinsk's Traktor ice hockey side was also hit, forcing the cancellation of a match.

State television showed a part of the roof and a wall shorn off a brick zinc factory in the city of Chelyabink, although officials said no one was injured in that case.

Other images showed people with bloodied faces and at least one child's back covered with blood.

Most of those injured were treated for minor cuts and bruises from shattered glass, the local police department told the RIA Novosti news agency.

"There was a very bright flash and then two or three minutes later, we were knocked back by a shock wave," a young man told Rossiya state television. Another man said "at first I thought it was a plane."

Another woman told the station "that only God saved me" from getting hurt when the windows of her bedroom blew out.

With the extraordinary event already becoming a leading trend on Twitter locals posted amateur footage posted on YouTube showed men swearing in surprise and fright, and others grinding their cars to a halt.

The Chelyabinsk region is Russia's industrial heartland, filled with smoke-chugging factories and other huge facilities that include a nuclear power plant and the massive Mayak atomic waste storage and treatment centre.

A spokesman for Rosatom, the Russian nuclear energy state corporation, said that its operations remained unaffected.

"All Rosatom enterprises located in the Urals region -- including the Mayak complex -- are working as normal," an unnamed Rosatom spokesman told Interfax.

The emergencies ministry said radiation levels in the region also did not change and that 20,000 rescue workers had been dispatched to help the injured and locate those requiring help.

-AFP/fl



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National capital gears up for Jashn-e-Khusrau

NEW DELHI: It's that time of the year when the capital gears up to the many cultural and classical music concerts. Beginning Feb 15 is the Jashn-e-Khusrau music festival that'll spread over a month to conclude on March 27.

Organised by the Agha Khan Trust for Culture, the multi-venue festival will feature concerts, exhibitions, films, seminars and heritage walks celebrating the life and works of Amir Khusrau Dehlvi, the great Sufi poet, scholar and musician.

Spread across venues like India Habitat Centre (IHC), Amphitheatre at Sundar Nursery (opposite Humayun's tomb), Chausath Khamba, Hazrat Nizamuddin Basti and National Museum auditorium, the festival boasts artists like 104-year-old vocalist Ustad Abdul Rashid Khan who belongs to the musical tradition of Tansen's time.

Others participating include Shujaat Khan (son of legendary Vilayat Khan) of Imdadkhani gharana on sitar, Ustad Shahid Parvej Khan (sitar) of the Etawah gharana, Ustad Ghulam Mohammad Saaznawaz (Kashmiri Sufiana), Rehana and Parveen Mirza (classical vocal) and Ustad Jameel Ahmad (Masnavi recital and Qawwali).

Highlight of the festival is an interesting line-up of artists from across the border in Pakistan. These include Ustad Nasiruddin Sami (classical vocalist), Tahira Sayed daughter of legendary Mallika Pukhraj who will enthral with her Ghazal gayaki and the popular Mekaal Hasan Band who'll present a set of fresh eight to ten kalaams (songs) in Persian and Hindavi of Amir Khusrau for the concert.

The festival is organised in collaboration with the Archaeological Survey of India, Ministry of Culture and IHC with support from Delhi tourism.

The event is open to public.

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Study: Fish in drug-tainted water suffer reaction


BOSTON (AP) — What happens to fish that swim in waters tainted by traces of drugs that people take? When it's an anti-anxiety drug, they become hyper, anti-social and aggressive, a study found. They even get the munchies.


It may sound funny, but it could threaten the fish population and upset the delicate dynamics of the marine environment, scientists say.


The findings, published online Thursday in the journal Science, add to the mounting evidence that minuscule amounts of medicines in rivers and streams can alter the biology and behavior of fish and other marine animals.


"I think people are starting to understand that pharmaceuticals are environmental contaminants," said Dana Kolpin, a researcher for the U.S. Geological Survey who is familiar with the study.


Calling their results alarming, the Swedish researchers who did the study suspect the little drugged fish could become easier targets for bigger fish because they are more likely to venture alone into unfamiliar places.


"We know that in a predator-prey relation, increased boldness and activity combined with decreased sociality ... means you're going to be somebody's lunch quite soon," said Gregory Moller, a toxicologist at the University of Idaho and Washington State University. "It removes the natural balance."


Researchers around the world have been taking a close look at the effects of pharmaceuticals in extremely low concentrations, measured in parts per billion. Such drugs have turned up in waterways in Europe, the U.S. and elsewhere over the past decade.


They come mostly from humans and farm animals; the drugs pass through their bodies in unmetabolized form. These drug traces are then piped to water treatment plants, which are not designed to remove them from the cleaned water that flows back into streams and rivers.


The Associated Press first reported in 2008 that the drinking water of at least 51 million Americans carries low concentrations of many common drugs. The findings were based on questionnaires sent to water utilities, which reported the presence of antibiotics, sedatives, sex hormones and other drugs.


The news reports led to congressional hearings and legislation, more water testing and more public disclosure. To this day, though, there are no mandatory U.S. limits on pharmaceuticals in waterways.


The research team at Sweden's Umea University used minute concentrations of 2 parts per billion of the anti-anxiety drug oxazepam, similar to concentrations found in real waters. The drug belongs to a widely used class of medicines known as benzodiazepines that includes Valium and Librium.


The team put young wild European perch into an aquarium, exposed them to these highly diluted drugs and then carefully measured feeding, schooling, movement and hiding behavior. They found that drug-exposed fish moved more, fed more aggressively, hid less and tended to school less than unexposed fish. On average, the drugged fish were more than twice as active as the others, researcher Micael Jonsson said. The effects were more pronounced at higher drug concentrations.


"Our first thought is, this is like a person diagnosed with ADHD," said Jonsson, referring to attention deficit-hyperactivity disorder. "They become asocial and more active than they should be."


Tomas Brodin, another member of the research team, called the drug's environmental impact a global problem. "We find these concentrations or close to them all over the world, and it's quite possible or even probable that these behavioral effects are taking place as we speak," he said Thursday in Boston at the annual meeting of the American Association for the Advancement of Science.


Most previous research on trace drugs and marine life has focused on biological changes, such as male fish that take on female characteristics. However, a 2009 study found that tiny concentrations of antidepressants made fathead minnows more vulnerable to predators.


It is not clear exactly how long-term drug exposure, beyond the seven days in this study, would affect real fish in real rivers and streams. The Swedish researchers argue that the drug-induced changes could jeopardize populations of this sport and commercial fish, which lives in both fresh and brackish water.


Water toxins specialist Anne McElroy of Stony Brook University in New York agreed: "These lower chronic exposures that may alter things like animals' mating behavior or its ability to catch food or its ability to avoid being eaten — over time, that could really affect a population."


Another possibility, the researchers said, is that more aggressive feeding by the perch on zooplankton could reduce the numbers of these tiny creatures. Since zooplankton feed on algae, a drop in their numbers could allow algae to grow unchecked. That, in turn, could choke other marine life.


The Swedish team said it is highly unlikely people would be harmed by eating such drug-exposed fish. Jonsson said a person would have to eat 4 tons of perch to consume the equivalent of a single pill.


Researchers said more work is needed to develop better ways of removing drugs from water at treatment plants. They also said unused drugs should be brought to take-back programs where they exist, instead of being flushed down the toilet. And they called on pharmaceutical companies to work on "greener" drugs that degrade more easily.


Sandoz, one of three companies approved to sell oxazepam in the U.S., "shares society's desire to protect the environment and takes steps to minimize the environmental impact of its products over their life cycle," spokeswoman Julie Masow said in an emailed statement. She provided no details.


___


Online:


Overview of the drug: http://www.nlm.nih.gov/medlineplus/druginfo/meds/a682050.html


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Nightmare Ends: Passengers Leave Disabled Ship












After five days without power in the Gulf of Mexico, the Carnival Triumph cruise ship carrying more than 4,000 people arrived in Mobile, Ala., to greet a cheering crowd of friends and family members waiting to embrace their loved ones.


Passengers began to disembark the damaged ship around 10:15 p.m. CT Thursday in Mobile, Ala. The last passenger disembarked the ship at 1 a.m. local time, according to Carnival's Twitter handle.


As the ship docked, passengers lined the decks of the ship, waving, and whistling to those on shore. "Happy V-Day" read a homemade sign made for the Valentine's Day arrival and another, more starkly: "The ship's afloat, so is the sewage."


Some still aboard chanted, "Let me off, let me off!" and "Sweet Home Alabama."


The Carnival Triumph departed Galveston, Texas, last Thursday and lost power Sunday after a fire in the engine room disabled the vessel's propulsion system and knocked out most of its power.


After power went out, passengers texted ABC News that sewage was seeping down the walls from burst plumbing pipes, carpets were wet with urine, and food was in short supply. Reports surfaced of elderly passengers running out of critical heart medicine and others on board squabbling over scarce food.


Click Here for Photos of the Stranded Ship at Sea


Passengers said many of the cabins became intolerable with the smell of raw sewage. They were forced to create makeshift beds out of lounge chairs on the ship's deck.






AP Photo/John David Mercer











Girl Disembarks Cruise Ship, Kisses the Ground Watch Video









Carnival CEO Gerry Cahill: 'I Want to Apologize' Watch Video









Carnival Cruise Ship Passengers Line Up for Food Watch Video





"We kind of camped out by our lifeboat. We would have nightmares about Titanic basically happening," passenger Kendall Jenkins told ABC News Radio after disembarking from the ship.


"I am just so blessed to be back home," she added.


Jenkins was one of many passengers that were photographed kissing the ground when they exited the ship.


WATCH: Carnival CEO Gerry Cahill Apologizes to Passengers


Approximately 100 buses were waiting to take passengers on the next stage of their journey. Passengers have the option to take a bus ride to New Orleans or Galveston, Texas, where the ill-fated ship's voyage began. From there, passengers will take flights home, which Carnival said they would pay for.


Inside the buses, Carnival handed out bags of food that included French fries, chicken nuggets, honey mustard barbecue sauce and apples.


Deborah Knight, 56, decided to stay in Mobile after the arduous journey was over rather than board a bus for a long ride. Her husband Seth drove in from Houston and they checked in at a downtown Mobile hotel.


"I want a hot shower and a daggum Whataburger," said Knight.


She said she was afraid to eat the food on board and had gotten sick while on the ship.


Cruise Ship Newlyweds Won't Be Spending Honeymoon on a Boat


For 24-year-old Brittany Ferguson of Texas, not knowing how long passengers had to endure their time aboard was the worst part.


"I'm feeling awesome just to see land and buildings," Ferguson said, who was in a white robe given to her aboard. "The scariest part was just not knowing when we'd get back," she told The Associated Press.


Carnival president and CEO Gerry Cahill praised the ship's crew and told reporters that he was headed on board to apologize directly to its passengers shortly before the Carnival Triumph arrived in Mobile.


"I know the conditions on board were very poor," Cahill said Thursday night. "I know it was very difficult, and I want to apologize again for subjecting our guests for that. ... Clearly, we failed in this particular case."


Luckily no one was hurt in the fire they triggered the power outage, but many passengers aboard the 900 foot colossus said they smelled smoke and were living in fear.






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South Korea unveils missile it says can hit North's leaders


SEOUL (Reuters) - South Korea unveiled a cruise missile on Thursday that it said can hit the office of North Korea's leaders, trying to address concerns that it is technologically behind its unpredictable rival which this week conducted its third nuclear test.


South Korean officials declined to say the exact range of the missile but said it could hit targets anywhere in North Korea.


The Defence Ministry released video footage of the missiles being launched from destroyers and submarines striking mock targets. The weapon was previewed in April last year and officials said deployment was now complete.


"The cruise missile being unveiled today is a precision-guided weapon that can identify and strike the window of the office of North Korea's leadership," ministry spokesman Kim Min-seok told reporters.


North Korea has forged ahead with long-range missile development, successfully launching a rocket in December that put a satellite into orbit.


The North's ultimate aim, Washington believes, is to design an intercontinental ballistic missile capable of carrying a nuclear warhead that could hit the United States.


North Korea, which accuses the United States and its "puppet", South Korea, of war-mongering on an almost daily basis, is likely to respond angrily to South Korea flexing its muscles.


North Korea, technically still at war with the South after their 1950-53 conflict ended in a truce, not a peace treaty, carried out its third nuclear test on Tuesday, drawing condemnation from around the world including its only major ally China.


The test and the threat of more unspecified actions from Pyongyang have raised tensions on the Korean peninsula as the South prepares to inaugurate a new president on February 25.


"The situation prevailing on the Korean peninsula at present is so serious that even a slight accidental case may lead to an all-out war which can disturb the whole region," North Korea's official KCNA news agency said.


(This story has been refiled to drop redundant "said" in fourth paragraph)


(Reporting by Ju-min Park; Editing by Nick Macfie)



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Third Japanese dies after Guam tourist attack






HAGATNA: The death toll from a frenzied attack on Japanese tourists in the Pacific nation of Guam rose to three on Thursday when a man mowed down by the killer's car succumbed to his injuries, officials said.

The attack happened late on Tuesday when a local man drove his car up a pavement near a resort, injuring six, then went on a stabbing rampage after crashing into a convenience store, wounding another eight.

All 14 victims, including an eight-month-old baby and a three-year-old toddler, were Japanese.

The Guam Memorial Hospital said the third person to die was a 51-year-old man but refused to give further details, saying next of kin in Japan were still being notified.

Two women, named in court documents as 81-year-old Kazuko Uehara and Rie Sugiyama, 29, were stabbed to death in the attack, which has stunned the normally sleepy tropical tourist destination.

The hospital said six people were discharged on Thursday and one had been transferred to Japan, with four patients still receiving care at the facility.

Local man Chad Ryan Desoto, 21, was charged over the attack on Wednesday.

Prosecutors allege that after he was arrested Desoto admitted to police that he was intent on using both his car and his knife to hurt as many people as possible.

Desoto's motive for the attack remains unknown.

- AFP/al



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