The Saturday Profile: Leading the Tunisian Agency That Once Jailed Him





TUNIS — It was the first time Ali Laarayedh had inspected a prison cell, but even then, as the interior minister, his old instincts kicked in.




“I turned around to see who would shut the cell door on me,” he said in his quiet manner.


But no one bolted the door. For Mr. Laarayedh had experienced a profound reversal of fortune, mirroring that of the Islamist political party that he helped found. Jailed numerous times in the Interior Ministry as a political prisoner, he now runs the very security agency that once sent him to death row.


His memory of the cells remains vivid. “Even though they are on the ground floor,” he said, “once you are inside them you have the impression that you have entered a cave.”


Mr. Laarayedh, 57, speaking in his office at a considerable distance above the cells, argued that his grueling prison experiences make him a better minister, sensitive to the abuse of power and the need for not just Tunisia, but all Arab states, to bend their omnipotent secret police to the rule of law.


Others are not convinced of his commitment to the law, at least not in the Western style. Mr. Laarayedh was imprisoned repeatedly, including all the years from 1990 to 2004, for being a founding member of the Renaissance Party, or Ennahda in Arabic, the Islamist political party that dominates Tunisia’s first elected post-revolutionary government.


Many in the opposition suspect that when men like Mr. Laarayedh talk about the rule of law, they mean Shariah, or Islamic law, a Koran-based code that is often at odds with Western standards of justice. The minister has also been widely criticized for the level of violence the police still unleash to squelch protests.


The interior minister is one of at least eight cabinet ministers, about one-third of the total, who spent significant chunks of their adult lives behind bars, often in solitary confinement. Some Tunisians believe that a country struggling with unemployment and political upheaval would be better off run by technocrats rather than veteran prisoners lacking real-world experience.


After one notorious episode on Sept. 14, when the American Embassy was sacked, critics mocked Mr. Laarayedh mercilessly for saying essentially that security forces had protected the embassy’s front door, but unfortunately the marauders entered through the back. Since that melee, which left four people dead, the police have been unable to apprehend Seifallah Ben Hassine, the leader of the puritanical Salafi movement, who is wanted for helping to inspire it.


In the interview, the minister said his forces were overwhelmed that day by a lack of equipment, including armored vehicles needed to protect the police. On the larger issue of governance, he argued that Tunisia was better off in the hands of those who sacrificed for change.


“We have to choose people who can break with the past and put the country on the path to democracy and a state of law,” said Mr. Laarayedh. “If we go back to the old, to the people with experience, nothing will change.”


He prefers not to detail his own imprisonment, saying that political detainees of all stripes had to endure the same terrible physical and mental torture. Many died or lost their minds, he said; as for himself, his physical scars are not visible, so it is better to focus on the revolution. When pressed, however, he revealed some contained anger.


“One of the worst forms of torture is when they leave you all alone,” he said. “When you pound on the iron door, if you are sick or you need something, and you can pound all night and they do not respond. Believe me, that is the worst contempt and the worst violence that I experienced. They take you for a mouse or a fly, or for nothing at all. You do not exist. You are not even worth being beaten. Do you understand? You are not even worth being beaten.”


He can put that behind him, he said, mostly because the revolution succeeded. “I realized all my objectives — a dictator fell, a democracy for which I gave my life was born and Tunisians are masters of their own destiny,” he said.


Mr. Laarayedh said he worried more about the effect his long absences had on his wife, a medical technician, and his three children, as he dedicated his life to political activism.


After obtaining a degree in maritime engineering in 1980, he worked for the government for only a year before going underground. He had odd jobs like teaching math in private schools, and he even got married in 1983 while on the run. His long years in and out of prison began around 1987.


Those years instilled in him the need for Tunisia to reach an equilibrium, he said, for a government able to curb the excesses of both the religious zealots and the liberals. Each camp accuses him of coddling the other.


“I don’t want the state to be hostage to either of these extremist tendencies,” he said.


He denied that the Renaissance Party worked in collusion with the more puritanical Salafis, who have staged a series of violent protests against art galleries and other liberal institutions. “We try to compromise between modernity, with all its values, and our own authenticity, our Arab Muslim identity,” he said, whereas the Salafis create “an antagonism between the present and the past.”


Some activists, particularly women, remain skeptical. Tunisia had perhaps the most progressive Arab gender laws for decades, and they believe that the Renaissance Party is shrinking the public space for women. They had hoped for something different given that while underground, the Islamists had emphasized the universal rights of man.


Olfa el-Alem, a political organizer, noted that despite repeated promises to investigate police violence against demonstrators, no results had been publicized.


“I thought the day they gained their liberty they would let others have their freedom as well,” said Ms. Alem, referring to the Renaissance leaders.


Mr. Laarayedh and other Renaissance leaders suggested that they lack full control over the levers of state. Mr. Laarayedh said Tunisians cannot yet take their nascent democracy for granted.


“This used to be Ben Ali’s desk!” he said, beaming, as he showed a visitor his office. Zine el-Abidine Ben Ali, the leader deposed by the January 2011 revolution, was prime minister when he seized the presidency in a bloodless 1987 coup.


Perhaps the best testament to the fact that democracy will emerge from Tunisia’s ferment, Mr. Laarayedh said, is that he now sits at that desk.


“It is a miracle,” he said. “If you want to look for irrefutable evidence that there was a revolution here, it is that someone condemned to death by this very ministry has become the minister.”


This article has been revised to reflect the following correction:

Correction: January 26, 2013

An earlier version of this article misidentified the title held by Zine el-Abidine Ben Ali when he seized the presidency in 1987. He was prime minister, not interior minister.



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Ashton Kutcher Parties in Sundance After jOBS Premiere















01/26/2013 at 01:50 PM EST



Ashton Kutcher's much-hyped movie jOBS premiered at the Sundance Film Festival on Friday, and the star was on hand – minus girlfriend Mila Kunis – for all the festivities.

Kutcher was one of the first to arrive at the official after party, hosted by Nur Khan Presents NK on Main Street for the cast and filmmakers and sponsored by Red Touch Media.

Kutcher was captivated by a floor-to-ceiling portrait of late Apple visionary Steve Jobs, whom Kutcher portrays in the film. Guests were quick to snap a photo of the actor admiring the subject of his role.

Without Kunis by his side, Kutcher very much remained a one-man guy, focusing his attention all night on his table of male friends and colleagues and posing for pictures with fans, according to an observer. The pride he takes in jOBS was palpable, as Kutcher was incredibly excited to chat about his film and role with all the guests who came up to greet him.

Co-star Ahna O'Reilly spent the evening in a very social mood, dancing to the beats of DJ Cash and catching up with co-star Josh Gad. Not to live down his "funny man" persona, Gad went into the evening entertaining all the guests and causing an uproar of laughter with Kutcher and O'Reilly while catching up about filming and their time at Sundance.


– Jennifer Garcia


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CDC: Flu seems to level off except in the West


New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.


The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.


Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.


There is still vaccine available although it may be hard to find. The CDC has a website that can help.


___


CDC: http://www.cdc.gov/flu/


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Wall Street Week Ahead: Bears hibernate as stocks near record highs

NEW YORK (Reuters) - Stocks have been on a tear in January, moving major indexes within striking distance of all-time highs. The bearish case is a difficult one to make right now.


Earnings have exceeded expectations, the housing and labor markets have strengthened, lawmakers in Washington no longer seem to be the roadblock that they were for most of 2012, and money has returned to stock funds again.


The Standard & Poor's 500 Index <.spx> has gained 5.4 percent this year and closed above 1,500 - climbing to the spot where Wall Street strategists expected it to be by mid-year. The Dow Jones industrial average <.dji> is 2.2 percent away from all-time highs reached in October 2007. The Dow ended Friday's session at 13,895.98, its highest close since October 31, 2007.


The S&P has risen for four straight weeks and eight consecutive sessions, the longest streak of days since 2004. On Friday, the benchmark S&P 500 ended at 1,502.96 - its first close above 1,500 in more than five years.


"Once we break above a resistance level at 1,510, we dramatically increase the probability that we break the highs of 2007," said Walter Zimmermann, technical analyst at United-ICAP, in Jersey City, New Jersey. "That may be the start of a rise that could take equities near 1,800 within the next few years."


The most recent Reuters poll of Wall Street strategists estimated the benchmark index would rise to 1,550 by year-end, a target that is 3.1 percent away from current levels. That would put the S&P 500 a stone's throw from the index's all-time intraday high of 1,576.09 reached on October 11, 2007.


The new year has brought a sharp increase in flows into U.S. equity mutual funds, and that has helped stocks rack up four straight weeks of gains, with strength in big- and small-caps alike.


That's not to say there aren't concerns. Economic growth has been steady, but not as strong as many had hoped. The household unemployment rate remains high at 7.8 percent. And more than 75 percent of the stocks in the S&P 500 are above their 26-week highs, suggesting the buying has come too far, too fast.


MUTUAL FUND INVESTORS COME BACK


All 10 S&P 500 industry sectors are higher in 2013, in part because of new money flowing into equity funds. Investors in U.S.-based funds committed $3.66 billion to stock mutual funds in the latest week, the third straight week of big gains for the funds, data from Thomson Reuters' Lipper service showed on Thursday.


Energy shares <.5sp10> lead the way with a gain of 6.6 percent, followed by industrials <.5sp20>, up 6.3 percent. Telecom <.5sp50>, a defensive play that underperforms in periods of growth, is the weakest sector - up 0.1 percent for the year.


More than 350 stocks hit new highs on Friday alone on the New York Stock Exchange. The Dow Jones Transportation Average <.djt> recently climbed to an all-time high, with stocks in this sector and other economic bellwethers posting strong gains almost daily.


"If you peel back the onion a little bit, you start to look at companies like Precision Castparts , Honeywell , 3M Co and Illinois Tool Works - these are big, broad-based industrial companies in the U.S. and they are all hitting new highs, and doing very well. That is the real story," said Mike Binger, portfolio manager at Gradient Investments, in Shoreview, Minnesota.


The gains have run across asset sizes as well. The S&P small-cap index <.spcy> has jumped 6.7 percent and the S&P mid-cap index <.mid> has shot up 7.5 percent so far this year.


Exchange-traded funds have seen year-to-date inflows of $15.6 billion, with fairly even flows across the small-, mid- and large-cap categories, according to Nicholas Colas, chief market strategist at the ConvergEx Group, in New York.


"Investors aren't really differentiating among asset sizes. They just want broad equity exposure," Colas said.


The market has shown resilience to weak news. On Thursday, the S&P 500 held steady despite a 12 percent slide in shares of Apple after the iPhone and iPad maker's results. The tech giant is heavily weighted in both the S&P 500 and Nasdaq 100 <.ndx> and in the past, its drop has suffocated stocks' broader gains.


JOBS DATA MAY TEST THE RALLY


In the last few days, the ratio of stocks hitting new highs versus those hitting new lows on a daily basis has started to diminish - a potential sign that the rally is narrowing to fewer names - and could be running out of gas.


Investors have also cited sentiment surveys that indicate high levels of bullishness among newsletter writers, a contrarian indicator, and momentum indicators are starting to also suggest the rally has perhaps come too far.


The market's resilience could be tested next week with Friday's release of the January non-farm payrolls report. About 155,000 jobs are seen being added in the month and the unemployment rate is expected to hold steady at 7.8 percent.


"Staying over 1,500 sends up a flag of profit taking," said Jerry Harris, president of asset management at Sterne Agee, in Birmingham, Alabama. "Since recent jobless claims have made us optimistic on payrolls, if that doesn't come through, it will be a real risk to the rally."


A number of marquee names will report earnings next week, including bellwether companies such as Caterpillar Inc , Amazon.com Inc , Ford Motor Co and Pfizer Inc .


On a historic basis, valuations remain relatively low - the S&P 500's current price-to-earnings ratio sits at 15.66, which is just a tad above the historic level of 15.


Worries about the U.S. stock market's recent strength do not mean the market is in a bubble. Investors clearly don't feel that way at the moment.


"We're seeing more interest in equities overall, and a lot of flows from bonds into stocks," said Paul Zemsky, who helps oversee $445 billion as the New York-based head of asset allocation at ING Investment Management. "We've been increasing our exposure to risky assets."


For the week, the Dow climbed 1.8 percent, the S&P 500 rose 1.1 percent and the Nasdaq advanced 0.5 percent.


(Reporting by Ryan Vlastelica; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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U.S. Envoy Apologizes for Ship’s Grounding on Philippine Coral Reef


Philippine Western Command, via Agence France-Presse — Getty Images


The Guardian, a Navy minesweeper, hit the Tubbataha Reef about 80 miles east of the Philippine island of Palawan on Jan. 17.







MANILA — The United States ambassador to the Philippines apologized Friday for the grounding of an American naval ship on a reef in a marine sanctuary, the latest in a string of embarrassing episodes for the United States military in the country at a time when the administration is pushing a “pivot” to Asia and the American military has increased its presence in the Philippines.




“I wish to convey to the Philippine government and people my profound regret over the grounding of the U.S.S. Guardian on Tubbataha Reef,” the American ambassador, Harry K. Thomas Jr., said in a statement issued Friday about the Jan. 17 accident that left the ship listing in the water.


The area struck by the minesweeper is a Unesco World Heritage site, and is described by the organization as “a pristine coral reef” that is home to more than 350 species of coral and almost 500 types of fish.


“This is the collateral damage from the U.S. military presence in our country,” said Bobby Tuazon, the director of policy studies at the Center for People Empowerment in Governance, based in Manila. “What were they doing there in the first place? This is a World Heritage site.”


The minesweeper crashed into the reef after a refueling stop at Subic Bay and as it was on its way to Indonesia, according to the Navy. The Navy has said the ship was using digital navigation charts that turned out to be faulty, according to a preliminary review, though an investigation into the cause of the accident is continuing.


Opinion in the country on the increased military presence, which includes port visits by naval ships, is split. President Benigno S. Aquino III has welcomed it as a counterbalance to what is viewed by many Filipinos as aggressive actions by China in the South China Sea. The Philippines and China have multiple overlapping territorial claims in the area and the two countries have engaged in tense maritime standoffs while asserting their sovereignty over contested areas.


But others Filipinos remain wary more than 20 years after the shuttering of the Subic Bay Naval Station, a casualty of the sense among some that the base was a painful reminder of decades of American rule.


The Associated Press reported that the Philippine government wants to fine the Navy for damages and for the entry into a marine sanctuary.


The recent grounding of the naval ship was preceded by other events that have led to renewed criticism of the United States military presence here. On Jan. 6, fishermen in the Philippines recovered an unmanned American drone that had been lost after it was used during American military exercises near the Pacific island of Guam.


Residents on the island of Masbate were initially alarmed by the discovery, fearing that it was an armed drone similar to those used in Afghanistan. But American and Philippine officials quickly clarified that it was an unarmed drone used as an aerial target.


The Philippine Senate is also investigating accusations that an American government contractor dumped about 50,000 gallons of untreated domestic waste from a Navy ship near Subic Bay after joint exercises in October. The former American naval facility, which is frequently visited by American ships, is also a popular Filipino tourist destination for beachgoers.


In the latest episode, the United States Navy minesweeper hit the Tubbataha Reef about 80 miles east of the Philippine island of Palawan, according to a Navy statement.


The full extent of the damage done to the reef by the 224-footship cannot be determined until the vessel is removed, but aerial photos taken by the Philippine military indicate that ship has put a gash in the reef measuring more than half the ship’s length.


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Yandex says new mobile app is blocked by Facebook






MOSCOW (Reuters) – Russian internet company Yandex said on Friday its new experimental application to search on social networking sites from mobile devices was blocked by Facebook.


The Wonder app is a recommendation tool for devices using Apple’s iOS software that allows U.S. users of social networks to retrieve information from these sites by voice or by typing questions.






The application was released late on Thursday for users of Facebook, Instagram, Foursquare and Twitter but was blocked by Facebook three hours after the launch, a Yandex spokesman said.


He added that talks between Yandex and Facebook, aimed to establish the reason of the issue and resolve it, were to begin within hours. He gave no reason for the problem.


Facebook was not available for comment.


With the new app, Yandex wants to test the opportunities offered by social networks. If successful, the company will consider offering it to users in Russia and Turkey, he said.


Shares in Yandex, Russia’s most popular search engine, gained 0.8 percent in early trade on Friday.


(Reporting by Maria Kiselyova; Editing by Mike Nesbit)


Internet News Headlines – Yahoo! News





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CDC: Flu seems to level off except in the West


New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.


The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.


Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.


There is still vaccine available although it may be hard to find. The CDC has a website that can help.


___


CDC: http://www.cdc.gov/flu/


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S&P 500 vaults 1,500 as Wall Street extends rally

NEW YORK (Reuters) - The Standard & Poor's 500 index closed above 1,500 for the first time in more than five years on Friday as strong U.S. earnings reports, including Procter & Gamble's, helped the benchmark extend its rally to eight days.


The winning streak is the longest in eight years and left the S&P 500 about 4.1 percent away from its all-time closing high of 1,565.15 on October 9, 2007.


The equity market's strong start this year has been attributed to solid corporate results, an agreement in Washington to extend the government's borrowing power, encouraging signs from the global economy and seasonal inflows into stocks.


Procter & Gamble shares led the Dow and S&P higher with a 4 percent gain to $73.25 after the world's top household products maker's quarterly profit soared past expectations. The company also raised its sales and earnings outlook for the fiscal year.


Sales of new U.S. single-family homes fell in December but rose in 2012 to the highest level since 2009, a sign the U.S. housing market turned a corner last year.


"Economic data in the U.S. has been trending higher, albeit modestly. Things are incrementally better," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.


The Dow Jones industrial average <.dji> rose 70.65 points or 0.51 percent, to close at 13,895.98. The S&P 500 <.spx> gained 8.14 points or 0.54 percent, to 1,502.96. The Nasdaq Composite <.ixic> added 19.33 points or 0.62 percent, to end at 3,149.71.


The S&P 500 closed at its highest since December 10, 2007, and the Dow ended at its highest since October 31, 2007.


Apple shares dropped 2.4 percent to $439.88, and the iPhone maker lost its coveted title as the largest U.S. company by market capitalization to Exxon Mobil Corp .


Apple's market cap fell to $413 billion, down roughly $250 billion from its September peak. Apple's fall is about equal to the entire value of Google Inc .


"The market was able to move forward despite deterioration in Apple and that's also a positive," Prudential Financial's Krosby said.


There was heavy volume in Apple shares as it hit its session low shortly before the closing bell. The stock dropped by as much as $7, to $435 from $442, within the span of one second during the last minute of trading.


More than 50 orders were executed on NYSE Arca at $435 a share, according to Thomson Reuters time-and-sales data, in blocks as small as 100 shares and as large as 10,494 shares.


Adding to the overall bullish tone in the market, German business morale improved for a third consecutive month in January to its highest in more than six months. In addition, European banks said they will repay the European Central Bank much more than expected of the loans the bank gave them during the crisis.


"Good news in credit markets helps set the stage for (more investment in) riskier assets," Krosby said.


For the week, the Dow rose 1.8 percent, the S&P 500 gained 1.1 percent and the Nasdaq added 0.5 percent. It was the fourth straight week of gains for all three indexes.


Helping to lift the Nasdaq on Friday, Starbucks rose 4.1 percent to $56.81 after the coffee retailer reported stronger-than-expected sales in the United States and Asia. {ID:nL1N0ATH04]


Netflix added 15.5 percent to $169.56, following its massive 42.2 percent jump on Thursday after the company announced a surprising jump in subscribers to its video streaming service.


Thomson Reuters data through Friday showed that of the 147 S&P 500 companies that have reported earnings so far, 68 percent exceeded expectations. Since 1994, 62 percent of companies have topped expectations, while the average over the past four quarters stands at 65 percent.


Halliburton Co shares jumped 5.1 percent to $39.72 after the world's second-largest oilfield services company reported higher-than-expected earnings and sales for the fourth quarter.


About 6.4 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average during January 2012 of about 6.93 billion shares.


On the NYSE, more than three issues rose for every two that fell. On the Nasdaq, five stocks advanced for every four that declined.


(Reporting by Rodrigo Campos; Editing by Kenneth Barry and Jan Paschal)



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American Mumbai Plotter Sentenced to 35 Years







CHICAGO (AP) — Minutes before an American was sentenced to 35 years in prison for helping plan an attack on Mumbai, India, one of his victims tearfully pleaded for a harsh punishment despite the terrorist plotter's widespread cooperation with U.S. investigators following his arrest.




David Coleman Headley, 52, shifted uncomfortably in a gray tracksuit and kept his eyes fixed on the Chicago courtroom floor Thursday as he listened to the American children's author describe the violent chaos during her 2008 vacation to India.


Bullets flew past her check and panicked diners dived under tables as gunmen burst into a hotel restaurant, then walked around executing people one by one, recalled Linda Ragsdale, at times almost shouting as she stood just a few feet from Headley during the sentencing hearing.


"I know the sweet sickening smell of gunfire and blood," said Ragsdale, 53, of Nashville, Tenn., who was shot through the chest — the bullet passing along her spine and then out her thigh. "I know what a bullet can do to every part of the human body ... These are things I never needed to know, never needed to experience."


She did not comment after the judge imposed the sentence, but others victimized by the attack that has been called India's 9/11 said they were disturbed and upset Headley did not get the maximum life sentence he faced. With credit for good behavior, he could walk out of prison before he turns 80.


"He lost his right to live life as a free man. He doesn't deserve to be let out. He gave up that right when he played a role in the attack," said Kia Scherr, whose husband Alan Scherr and 13-year-old daughter, Naomi, were at the same table as Ragsdale and died.


It was prosecutors who pressed for leniency, saying they wanted Headley to get no more than 35 years as credit for his almost immediate cooperation after his 2009 arrest and providing intelligence about terror networks, including the Pakistani-based group that mounted the attack. Rewarding Headley with the hope of at least a few years of freedom, the said, would encourage future suspects in terrorist cases to spill their secrets.


A somber Judge Harry Leinenweber sounded reluctant about imposing the lesser sentence, saying the Mumbai assault was so unfathomable and terrifying that, "perhaps the lucky ones were the ones who didn't survive."


"I don't have any faith in Mr. Headley when he says he's a changed person and believes in the American way of life," he said.


Ragsdale, the only victim to address the court during Thursday's hearing, also read a text message from Kia Scherr to the judge, in which Scherr implored the court not to give Headley less than life in prison and asserting that anything less "would be an appalling dishonor."


The attack heightened the strain in a historically antagonistic relationship between India and Pakistan, which have fought three major wars. Indian officials accuse Pakistani intelligence of helping to plan the assault — an allegation Pakistan denies.


It was Headley's meticulous scouting missions that helped make the assault by 10 gunmen from a Pakistani-based militant group on multiple targets in Mumbai so deadly. TV cameras captured much of the three-day rampage that including multiple targets, including the landmark Taj Mahal Hotel.


Ragsdale painted a detailed picture of the gory scene as she huddled under the table with Scherr's husband Alan and her daughter, Naomi. After the initial gunfire, they were all still alive, and she said she would have thrown her body across the teen to shield her.


"That moment still haunts me," she said, crying, as she looked straight at Headley. She said she passed out from her injuries under the table and "awoke to hear Naomi take her last breath."


Headley showed no emotion when the sentence was announced. Earlier, when the judge asked if him if he wanted to address the court, he leaned forward and said politely, "No your honor, I expressed everything in the letter I wrote you."


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Microsoft profit dips on lower Xbox holiday sales






SEATTLE (Reuters) – Microsoft Corp reported a dip in fiscal second-quarter profit on Thursday, as weaker sales of its Xbox game system in the holiday quarter offset a solid start for its new Windows 8 operating system.


The world’s largest software company reported profit of $ 6.4 billion, or 76 cents per share, compared to $ 6.6 billion, or 78 cents per share, in the year-ago quarter.






Overall sales rose 3 percent to $ 21.5 billion.


(Reporting by Bill Rigby; Editing by Richard Chang)


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Marc Anthony and Shannon de Lima Split















01/24/2013 at 05:45 PM EST







Shannon de Lima and Marc Anthony


Jason Merritt/Getty


It's over! Marc Anthony and Shannon de Lima have called it quits after dating for more than a year.

"Marc is no longer dating model Shannon de Lima," his rep Blanca Lasalle tells PEOPLE exclusively. "The amicable breakup became official right in mid-January."

De Lima and Anthony – who went public with the romance last January on Twitter by calling his model girlfriend "my statue of liberty" – didn't show any sign of discord before their split.

The couple were spotted on Jan. 16 in New York City at Marquee, where an observer noted, "Shannon was dancing up a storm with her friends while sipping champagne and taking iPhone photos of the themselves and the light show. At one point, Shannon even jokingly gave Marc a lap dance when Pitbull came on."

The reason for their split? "The truth is they have been having a great time together, but it no longer worked," says a source.

As for Anthony, it seems he's moving on. "Marc is in a good place," the source adds. "Sometimes things work out and sometimes they don't."

Before de Lima, Anthony, 44, was married to Jennifer Lopez for seven years. The couple announced their separation in July, 2011.

In a recent PEOPLE cover story, Lopez opened up about her painful split from Anthony, saying it felt like her "whole world fell apart."

Reporting by LIZ MCNEIL and CARLOS GREER

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Penalty could keep smokers out of health overhaul


WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.


The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.


For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.


Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.


Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.


Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.


Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.


Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.


"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.


"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.


Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.


"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."


Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.


First, the law allows insurers to charge older adults up to three times as much as their youngest customers.


Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.


And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.


Here's how the math would work:


Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.


But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.


"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.


In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.


Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.


"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."


___


Online:


Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx


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S&P rises for seventh day but 1,500 too steep a climb

NEW YORK (Reuters) - The smallest of gains gave the Standard & Poor's 500 its seventh straight winning day on Thursday, but the index failed to hold above the 1,500 line, restrained by Apple's worst day in more than four years.


Apple Inc slid 12.4 percent to $450.50 a day after it posted revenue that missed Wall Street's forecast as iPhone sales were poorer than expected.


The sharp drop wiped out nearly $60 billion in Apple's market capitalization to less than $423 billion, leaving the company vulnerable to losing its status as the most valuable U.S. company to second-place ExxonMobil , at $416.5 billion.


The S&P 500, however, managed to hit its longest winning streak since October 2006.


"The market has sent the message it is no longer driven by the whims of Apple," said Ken Polcari, director of the NYSE floor division at O'Neil Securities in New York.


The S&P 500 briefly traded above 1,500 for the first time since December 12, 2007, but failed to hold above it, indicating that momentum is waning and a pullback is in the charts.


"If the market had a little bit more excitement to it, momentum players would have jumped after it broke through 1,500. Investors know the market is a little bit ahead of itself," Polcari said.


Economic data helped buoy equities as U.S. factory activity grew the most in nearly two years in January and new claims for jobless benefits dropped to a five-year low last week, giving surprisingly strong signals on the economy's pulse.


At the same time, Chinese manufacturing grew this month at the fastest pace in about two years, while data suggesting German growth picked up boosted hopes for a euro-zone recovery.


"PMI in Asia, Europe, and obviously, here in the United States, is moving in the right direction, and that's stuff people should be excited about," Polcari said.


The Dow Jones industrial average <.dji> rose 46 points or 0.33 percent, to 13,825.33 at the close. The S&P 500 <.spx> inched up just 0.01 of a point, or 0 percent, to finish at 1,494.82. The Nasdaq Composite <.ixic> dropped 23.29 points or 0.74 percent, to end at 3,130.38, with most of that loss on Apple's slide.


The broader Russell 2000 index <.rut> also hit a milestone as it closed above 900 points for the first time.


Video streaming service Netflix Inc surprised Wall Street with a quarterly profit after it added nearly 4 million customers in the United States and abroad. Netflix shares surged 42.2 percent to $146.86, its biggest percentage jump ever.


Earnings have helped drive the stock market's recent rally. Thomson Reuters data through early Thursday showed that of the 133 S&P 500 companies that have reported earnings so far, 66.9 percent have exceeded expectations - above the 65 percent average over the past four quarters.


About 6.8 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average during January 2012 of about 6.93 billion shares.


Roughly five issues rose for every four that fell on both the NYSE and Nasdaq.


(Editing by Jan Paschal)



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The Lede Blog: Clinton Testifies on Benghazi Attacks

The Lede followed Secretary of State Hillary Rodham Clinton’s testimony Wednesday before the House Foreign Affairs Committee and Senate Foreign Relations Committee about the Sept. 11, 2012, attacks on the American Consulate in the eastern city of Benghazi, Libya, that killed Ambassador Chris Stevens and three other Americans.

At a House Committee hearing last October investigating the attack, as reported on The Lede, State Department officials and security experts who served on the ground offered conflicting assessments about what resources were requested and made available to deal with growing security concerns in Tripoli and Benghazi.

Mrs. Clinton had been scheduled to testify before Congress last month, but an illness, a concussion and a blood clot near her brain forced her to postpone her appearance.

As our colleagues Michael R. Gordon and Eric Schmitt reported, four State Department officials were removed from their posts on last month after an independent panel criticized the “grossly inadequate” security at a diplomatic compound in Benghazi.

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Nicole Richie Chops Off Her Hair!







Style News Now





01/23/2013 at 10:30 AM ET











Nicole RichieCourtesy Nicole Richie


It may be a bob, but don’t expect to see Nicole Richie‘s new ‘do behind the wheel of a minivan anytime soon.


Richie took to Instagram to document her latest hair look — a just-above-the-shoulders crop — Tuesday afternoon, sharing a photo of herself mid-cut with the caption hinting at what the final result would be: “B.O.B.”



It appears that the star took off a few inches in addition to adding some cool, piecey layers. Now excuse us while we call our stylist to book a haircut.


Tell us: Do you prefer Richie with short or long hair?


–Jennifer Cress


PHOTOS: SEE MORE STAR HAIRSTYLES!




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S&P up for sixth day, Apple slip could halt rally

NEW YORK (Reuters) - The S&P 500 rose for a sixth day on Wednesday after stronger-than-expected profits from IBM and Google but the rally could be halted as Apple's after-hours miss sent its shares lower.


The S&P was just 4.7 percent from its all-time closing high as IBM's and Google's earnings, released after Tuesday's close, followed on the heels of stronger U.S. economic data.


"People were kind of nervous about earnings coming into this quarter but numbers have shown so far strength in earnings," said King Lip, chief investment officer at Baker Avenue Asset Management in San Francisco.


But Apple , still the largest U.S. publicly traded company, fell 8 percent in extended trading after sales of its flagship iPhone came in below analyst targets and quarterly revenue slightly missed Wall Street expectations.


"One thing that stands out is the company's ballooning balance sheet, where they now have $137 billion dollars in cash and investments," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut. "You've got to wonder when they're going to put some more of that to work."


Declining issues beat advancers in both the NYSE and Nasdaq during regular market hours, in a sign the market's rally may be overstretched. The broad Russell 2000 index <.rut> closed the day down 0.3 percent after earlier hitting and intraday historic high just below 900 points.


Shares in IBM Corp , the world's largest technology services company, climbed 4.4 percent during regular market hours to $204.72, providing just about all of the Dow's 67-point gain.


Also helping the tech sector was a 5.5 percent jump in Google Inc to $741.50. The Internet search company reported its core business outpaced expectations and revenue was higher than expected.


The S&P technology sector <.splrct> rose 1.2 percent.


The Dow Jones industrial average <.dji> rose 67.12 points or 0.49 percent, to 13,779.33, the S&P 500 <.spx> gained 2.25 points or 0.15 percent, to 1,494.81, and the Nasdaq Composite <.ixic> added 10.49 points or 0.33 percent, to 3,153.67.


The benchmark S&P 500 is a mere 0.35 percent away from hitting 1,500, a level not seen since December 12, 2007.


S&P 500 futures fell 4.1 points, or 0.3 percent, while Nasdaq 100 futures fell 20 points or 0.7 percent.


Netflix shares soared 32 percent, above $136, after the video subscription service said it added subscribers in the United States and abroad and posted a quarterly profit.


LED maker Cree Inc jumped 22 percent to $40.85 after it forecast a higher-than-expected third-quarter profit, and reported results above analysts' estimates.


Upscale leather goods maker Coach Inc plunged 16.4 percent to $50.75 after reporting sales that missed expectations.


Clearing a market hurdle, the U.S. House of Representatives passed a Republican-led plan to extend the country's borrowing authority until mid May. This delays a confrontation in Congress similar to one in 2011, which generated a stalemate that triggered the first-ever U.S. debt rating downgrade.


Thomson Reuters data through Wednesday showed that of the 99 S&P 500 companies that have reported earnings so far, 67.7 percent have topped expectations, above the 65 percent average beat over the past four quarters.


Overall, S&P 500 fourth-quarter earnings rose 2.8 percent, according to Thomson Reuters data. That estimate is above the 1.9 percent forecast at the start of earnings season.


Top U.S. manufacturers sounded a confident note about their expectations for 2013 on Wednesday as fears of the year-end "fiscal cliff" faded into memory.


In the regular session, about 6.1 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the 2012 daily average of about 6.45 billion.


On the NYSE, roughly 15 issues fell for every 14 that rose and on Nasdaq seven declined for every five gainers.


(Reporting by Rodrigo Campos, additional reporting by Caroline Valetkevitch; Editing by Nick Zieminski and Diane Craft)



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France and Germany Celebrate 50th Anniversary of Élysée Treaty





BERLIN — France and Germany recently issued a joint postage stamp as part of a yearlong celebration of the 50th anniversary of the Élysée Treaty, the landmark agreement between the two former enemies.




The stamp is identical, except for one telling difference. In each country, it bears a picture of a man and woman, side by side, peering through lenses colored in blue-white-red and black-red-gold. But the French stamp costs 80 euro cents, while its German twin sells for only 75.


In a year loaded with symbolic gestures and 4,000 events, including Tuesday’s joint session of Parliament, joint cabinet dinner and a concert, that 5-cent disparity is a reminder that despite the decades of friendship and enormous day-to-day cooperation, significant, often devilish, differences persist.


De Gaulle once described Europe as “a coach with horses, with Germany the horse and France the coachman.” Since he signed the treaty with Konrad Adenauer in 1963, successive governments in both countries have struggled to overcome, or overlook, what divides them.


But the relationship has never been as close as some hoped. While the German news media celebrated Tuesday’s anniversary of a treaty that has been a cornerstone for the European Union and German prosperity, the tone from France was harsher. Le Figaro called it “a friendship broken down,” foundering on “diplomatic and economic tensions,” while Le Monde called the event “a festival of hypocrisy.”


The critical matter, however, is that war between the two peoples, who murdered each other for centuries, seems as inconceivable now as the Spanish Inquisition.


“Coming from a long history of conflict and war, they have succeeded in intertwining themselves so closely that today one can no longer imagine it any other way than both partners working closely together,” said Georg Link, the German foreign minister’s commissioner for Franco-German cooperation.


Chancellor Angela Merkel, a conservative, and President François Hollande, a Socialist, began the festivities on Monday here, with a question-and-answer session with university students from both countries. Sitting side by side, they appeared at ease for the first time since Mr. Hollande came to power last May, exchanging jokes and using first names — a public first, and a telling shift.


Yet, even if the two succeed in establishing a better relationship, the tensions between centralized, statist France and federal Germany are real and will persist. They involve European issues like the euro zone crisis and the failed merger of the aerospace giants EADS and BAE Systems, as well as foreign policy matters, like the obvious disagreements over military engagements in Libya and now Mali.


French officials say the two leaders get on decently, agree on fundamental questions and maintain a daily web of contacts and relationships at all levels. They argue that former President Nicolas Sarkozy of France, a conservative, deferred too much to Ms. Merkel to the detriment of the euro and economic growth, and that Mr. Hollande and Ms. Merkel have gotten more done through compromise.


Honest about their differences, Mr. Hollande cited as examples of the new relationship a “pact for growth” to go alongside a fiscal discipline treaty, championed by Ms. Merkel, and the ability to come to agreement on the single banking supervisory system for the euro zone. Ms. Merkel said they planned to meet in May to work out a joint position on economic cooperation, growth and competitiveness ahead of the next European Union summit in June.


The French have sought to “rebalance” the power structures within the European Union by working closely with the Spanish and Italian leaders, and softened the quasi-religious quality of the German prescription of budget discipline and debt reduction.


But it remains true in European Union affairs that Ms. Merkel’s words carry more weight than those of any other leader — and not just because of Germany’s demographic and economic power. There is an understanding that nothing works in the bloc without German agreement, and that France, weaker economically and more saddled with debt, plays a more junior role.


A survey of 25,000 people on either side of the border released ahead of Tuesday’s festivities showed that while 80 percent of Germans and 70 percent of French hold the other in high regard, stereotypes persist.


The French still see themselves as Europe’s center of policy creativity, but view Germany as the overly cautious, and increasingly begrudging, paymaster. The Germans, however, consider their caution one of their greatest assets, and grumble at French reluctance to reform their social-welfare system and reduce their dependence on nuclear energy.


With an active military and a seat on the Security Council, the French also see themselves as playing a far more important diplomatic role globally, while Germany seems to have regressed in its willingness to use force.


As France has moved to engage militarily in Mali, for instance, responding quickly to a cry for help from an ally, French officials note that while Britain was quick to offer air transport help, Berlin initially pledged only political support. The Germans have since offered two cargo planes.


On Tuesday the chancellor gave no indication of German eagerness to join the fight, thanking French troops for their efforts “for all of us.”


One enduring bond between Paris and Berlin is a belief in the importance of the European Union as an anchor for peace and prosperity. The leaders have acknowledged that the strength of their bond has often proved troubling for their European partners, as seen in British efforts to renegotiate its terms for membership.


“Europeans have a special view of German-French relations,” Mr. Hollande told a group of students, with a smile. “When we get along, they are afraid it will be to their detriment. And when we do not get along, they realize then that it is to their detriment.”


The chancellor, seated beside him, nodded vigorously.


Read More..

BlackBerry Z10 Looks Like iPhone 5, Takes on Siri






RIM is set to announce the first devices running its new BlackBerry 10 operating system at an event on January 30. A lucky few, however, have already gotten their hands on what looks to be the new hardware, including German site TelekomPresse.


[More from Mashable: Watch These iPhone Knockoffs Get Bulldozed]






The site has the BlackBerry Z10, a touchscreen device with a similar look to some of the other popular smartphones out there — especially the iPhone 5.


Curious to see how the two compared, they put them side-by-side in the video above, running through both the physical design of both devices as well as some of their features.


[More from Mashable: RIM May License BlackBerry 10 to Other Manufacturers]


Notably, the video shows a Siri-like voice control functionality in BlackBerry 10, that we haven’t seen previously. As you can see in the test above, it beats Siri for speed.


SEE ALSO: RIM Adds 15,000 BlackBerry 10 Apps in a Weekend


While similar at first glance, design-wise the two phones do have some differences. The Z10 has a 4.2-inch screen, slightly larger than the iPhone 5’s 4-inch display. Both phones have a power button on top, however, the button on the BlackBerry is in the center of the top of the phone, while the iPhone’s is on the right on the device.


The volume controls are on the right side of the Z10, and left side of the iPhone 5. When it comes to power, the connection for the iPhone 5 is on the bottom of the device with the headphone jack, while the HDMI and USB connections on the Z10 are located on the left.


Check out the video above for a look at the full comparison of the two devices. Are you looking forward to BlackBerry 10? Can the new OS save RIM? Let us know your thoughts in the comments.


BlackBerry 10 Lock Screen


You unlock a BlackBerry 10 device by swiping up from the bottom of the screen.


Click here to view this gallery.


This story originally published on Mashable here.


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Flu season fuels debate over paid sick time laws


NEW YORK (AP) — Sniffling, groggy and afraid she had caught the flu, Diana Zavala dragged herself in to work anyway for a day she felt she couldn't afford to miss.


A school speech therapist who works as an independent contractor, she doesn't have paid sick days. So the mother of two reported to work and hoped for the best — and was aching, shivering and coughing by the end of the day. She stayed home the next day, then loaded up on medicine and returned to work.


"It's a balancing act" between physical health and financial well-being, she said.


An unusually early and vigorous flu season is drawing attention to a cause that has scored victories but also hit roadblocks in recent years: mandatory paid sick leave for a third of civilian workers — more than 40 million people — who don't have it.


Supporters and opponents are particularly watching New York City, where lawmakers are weighing a sick leave proposal amid a competitive mayoral race.


Pointing to a flu outbreak that the governor has called a public health emergency, dozens of doctors, nurses, lawmakers and activists — some in surgical masks — rallied Friday on the City Hall steps to call for passage of the measure, which has awaited a City Council vote for nearly three years. Two likely mayoral contenders have also pressed the point.


The flu spike is making people more aware of the argument for sick pay, said Ellen Bravo, executive director of Family Values at Work, which promotes paid sick time initiatives around the country. "There's people who say, 'OK, I get it — you don't want your server coughing on your food,'" she said.


Advocates have cast paid sick time as both a workforce issue akin to parental leave and "living wage" laws, and a public health priority.


But to some business owners, paid sick leave is an impractical and unfair burden for small operations. Critics also say the timing is bad, given the choppy economy and the hardships inflicted by Superstorm Sandy.


Michael Sinensky, an owner of seven bars and restaurants around the city, was against the sick time proposal before Sandy. And after the storm shut down four of his restaurants for days or weeks, costing hundreds of thousands of dollars that his insurers have yet to pay, "we're in survival mode."


"We're at the point, right now, where we cannot afford additional social initiatives," said Sinensky, whose roughly 500 employees switch shifts if they can't work, an arrangement that some restaurateurs say benefits workers because paid sick time wouldn't include tips.


Employees without sick days are more likely to go to work with a contagious illness, send an ill child to school or day care and use hospital emergency rooms for care, according to a 2010 survey by the University of Chicago's National Opinion Research Center. A 2011 study in the American Journal of Public Health estimated that a lack of sick time helped spread 5 million cases of flu-like illness during the 2009 swine flu outbreak.


To be sure, many employees entitled to sick time go to work ill anyway, out of dedication or at least a desire to project it. But the work-through-it ethic is shifting somewhat amid growing awareness about spreading sickness.


"Right now, where companies' incentives lie is butting right up against this concern over people coming into the workplace, infecting others and bringing productivity of a whole company down," said John A. Challenger, CEO of employer consulting firm Challenger, Gray & Christmas.


Paid sick day requirements are often popular in polls, but only four places have them: San Francisco, Seattle, Washington, D.C., and the state of Connecticut. The specific provisions vary.


Milwaukee voters approved a sick time requirement in 2008, but the state Legislature passed a law blocking it. Philadelphia's mayor vetoed a sick leave measure in 2011; lawmakers have since instituted a sick time requirement for businesses with city contracts. Voters rejected a paid sick day measure in Denver in 2011.


In New York, City Councilwoman Gale Brewer's proposal would require up to five paid sick days a year at businesses with at least five employees. It wouldn't include independent contractors, such as Zavala, who supports the idea nonetheless.


The idea boasts such supporters as feminist Gloria Steinem and "Sex and the City" actress Cynthia Nixon, as well as a majority of City Council members and a coalition of unions, women's groups and public health advocates. But it also faces influential opponents, including business groups, Mayor Michael Bloomberg and City Council Speaker Christine Quinn, who has virtually complete control over what matters come to a vote.


Quinn, who is expected to run for mayor, said she considers paid sick leave a worthy goal but doesn't think it would be wise to implement it in a sluggish economy. Two of her likely opponents, Public Advocate Bill de Blasio and Comptroller John Liu, have reiterated calls for paid sick leave in light of the flu season.


While the debate plays out, Emilio Palaguachi is recovering from the flu and looking for a job. The father of four was abruptly fired without explanation earlier this month from his job at a deli after taking a day off to go to a doctor, he said. His former employer couldn't be reached by telephone.


"I needed work," Palaguachi said after Friday's City Hall rally, but "I needed to see the doctor because I'm sick."


___


Associated Press writer Susan Haigh in Hartford, Conn., contributed to this report.


___


Follow Jennifer Peltz at http://twitter.com/jennpeltz


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Banks, commodity stocks lift S&P 500 to five-year high

NEW YORK (Reuters) - Bank and commodity shares led the benchmark Standard & Poor's 500 Index to a fresh five-year closing high on Tuesday on hopes that the global economy continues to mend.


Travelers' shares climbed after the insurer's results and lifted the Dow Jones industrial average to a new five-year closing high.


On Friday, both the Dow and the S&P 500 ended at five-year highs after the quarterly earnings season got off to a solid start. On Monday, the U.S. stock market was closed in observance of the Martin Luther King, Jr., holiday.


In Tuesday's session, the market also gained on signals that Republican leaders in the U.S. House of Representatives aim on Wednesday to pass a bill to extend the U.S. debt limit by nearly four months to May 19. The White House welcomed the move, saying it would remove uncertainty about the issue.


Investors, however, were cautious ahead of an increase in earnings reports and as the S&P 500 rose for a fifth straight session.


Jack de Gan, chief investment officer of Harbor Advisory Corp, in Portsmouth, New Hampshire, said better economic numbers in the United States and China, as well as more stabilization in Europe, were driving buyers into sectors associated with economic growth.


"Any (bearish) news could turn us down for a day or so," he said, referring to the recent string of gains.


Freeport-McMoRan Copper & Gold led gains in the materials sector after it reported a 16 percent rise in fourth-quarter profit on higher production. Shares gained 4.6 percent to $35.19.


The Dow Jones industrial average <.dji> rose 62.51 points, or 0.46 percent, to 13,712.21 at the close. The S&P 500 <.spx> gained 6.58 points, or 0.44 percent, to 1,492.56. The Nasdaq Composite <.ixic> added 8.47 points or 0.27 percent, to 3,143.18.


Tuesday's session marked the highest closes for both the Dow and the S&P 500 since December 2007.


Technology shares underperformed as concerns about Apple's ability to continue to grow at hyper speed and a weak outlook from Intel Corp diminished optimism about the sector's prospects. The S&P technology index <.splrct> added 0.16 percent for the day. In comparison, the S&P energy sector index <.spny>, the S&P financials index <.spsy> and the S&P basic materials index <.splrcm> each gained 0.9 percent.


But Google shares rose 4.8 percent to above $736 in extended-hours trading after the world's No. 1 search engine reported a jump in fourth-quarter revenue. Shares of IBM added more than 4 percent to trade above $204 after the world's largest technology services company reported earnings and revenue that beat estimates.


"We expected Q4 for many tech vendors would be weak because we were expecting a lot of companies sitting on their wallets until it became clear what was going to become of the fiscal cliff," Forrester analyst Andrew Bartels said about IBM.


"Given the fact it's Q4 and the cloud of fiscal cliff within it, it's a positive indication that especially tech software will be doing better in the next couple of months."


During the regular session, shares of blue chips Travelers, DuPont


, and Verizon Communications rose following earnings.

Travelers rose 2.2 percent to $77.95, a closing high. DuPont's shares gained 1.8 percent to $47.82. Verizon's stock rose 0.9 percent to $42.94.


Thomson Reuters data through Tuesday morning showed that of the 74 S&P 500 companies that have reported earnings so far, 62.2 percent have topped expectations, roughly even with the 62 percent average since 1994, but below the 65 percent average over the past four quarters.


Overall, S&P 500 fourth-quarter earnings are forecast to have risen 2.6 percent. That estimate is above the 1.9 percent forecast from the start of earnings season, but well below the 9.9 percent fourth-quarter earnings forecast from October 1, the data showed.


U.S.-listed shares of Research in Motion rallied 13 percent to $17.90 a day after its chief executive said the Canadian company may consider strategic alliances with other companies after the launch of devices powered by RIM's new BlackBerry 10 operating system.


About 6.2 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below last year's daily average of about 6.45 billion shares.


On the NYSE, advancers outnumbered decliners by a ratio of roughly 9 to 4. On the Nasdaq, five stocks rose for every three that fell.


Signs of improved sentiment toward world growth were also seen in European bond markets. The yield on Portugal's benchmark 10-year note fell below 6 percent for the first time since late 2010 on news that the country was set to tap the bond market this week for the first time since it was bailed out in 2011.


(Reporting by Rodrigo Campos; Additional reporting by Jennifer Saba; Editing by Jan Paschal)

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Syria Rebels Postpone Formation of Transitional Government





MOSCOW — Russia announced Monday that it was sending two airplanes from its emergency services fleet to Beirut to evacuate around 100 Russian citizens leaving Syria, reflecting Moscow’s assessment that President Bashar al-Assad’s forces are losing control of the country after nearly two years of fighting.




It was not clear whether the news signaled the beginning of a large-scale evacuation. Russia has an estimated 30,000 citizens in Syria, including government and military personnel, private contractors and tens of thousands of women married to Syrian men. Around a dozen Russian ships are in the Mediterranean off the coast of Syria for naval exercises and could, officials have said, be used to evacuate Russian citizens.


Irina Rossius,  a spokeswoman for Russia’s Emergency Services Ministry, said two airplanes would fly to Beirut on Tuesday “so that all Russians who wish to can leave Syria,” Interfax reported. She said more than 100 Russians expected to leave. It is now common for people leaving Damascus, if they can afford it, to avoid the contested route to the city’s airport by driving to Beirut and flying out from there.


Ms. Rossius did not say which group was evacuating, but conditions have been deteriorating for diplomats. Last week, Russia announced that it was closing its consulate in Aleppo in the wake of a double bombing that killed 82 people, and security officials told the newspaper Kommersant last month that the authorities were prepared to send 100 armed intelligence officers to help Russian diplomats leave Damascus if necessary. Russian arms manufacturers also have military advisers in place to assist the Syrian military with air-defense systems purchased from Russia.


Russia first formulated plans for an evacuation seven months ago, but delayed putting them into action — in part, analysts said, because it would send a political message that Moscow no longer considered it likely that Mr. Assad would prevail. But Foreign Ministry officials are increasingly concerned about security and have been quietly trying to negotiate the release of two Russian steel workers who were kidnapped last month.


The conflict continued to rage on Monday, with the government accusing rebels of attacking an important power line, causing a blackout in Damascus, the capital, as well as areas to the north and a swath of territory reaching south to the Jordanian border. Power failures have been frequent reminders of the conflict that has engulfed Syria, but the latest one appeared to be the first to affect the entire capital, where Mr. Assad’s forces are still largely in control. The Associated Press reported that power was restored in parts of Damascus on Monday.


In Istanbul, the main exile opposition group once again failed to form a transitional government, deciding instead to postpone the step while new proposals are drawn up. The delay was a setback to the opposition’s plans to fill the power vacuum created by the ever bloodier civil war.


The opposition group, the National Coalition of Syrian Revolutionary and Opposition Forces, has won recognition by a number of foreign countries as the sole legitimate representative of the Syrian people, but it has not yet solidified support among rebels fighting on the ground. Nor has it begun planning for a post-Assad future.


The Western and Arab nations that pressed Mr. Assad’s adversaries to reorganize last year have been urging the new coalition to select a prime minister, but no candidate has won a consensus.


A statement by the National Coalition on Monday said that it had formed a five-member committee to “lead consultations” with rebel commanders, foreign backers and others seeking Mr. Assad’s ouster, and to draw up proposals for a transitional government within 10 days. The statement was similar to one the coalition made last month, after failing to form a government at a meeting in Cairo.


The talks over a transitional government were bogged down by a heated debate over a provision in the coalition’s bylaws banning its members from assuming ministerial posts in any future interim government, in an effort to protect the coalition from accusations that its members are merely seeking personal power. Some opposition leaders want to scrap that provision, arguing that it will deny the interim government the benefit of including experienced and respected senior figures, but they met with strong resistance.


“The idea faced an immediate storm of objections and criticism,” said Samir Nachar, a member of the Syrian National Coalition. “We saw that during the meeting, and decided not to change anything.”


Mr. Nachar said the main reason the opposition has failed to shape a transitional government so far is that it is not sure such a government would receive the international recognition and support it would need to function.


“Falling into the trap of forming a paralyzed government will not just be useless, it will be a huge disappointment to Syrians,” he said. “The coalition was promised a lot when it was formed, and none of that materialized.”


The coalition announced that it was sending $250,000 in emergency aid to Daraya, a Damascus suburb that has been hit hard recently with artillery and airstrikes, and forming committees to aid refugees and the wounded and to coordinate with armed opposition groups inside Syria. The coalition has been under pressure to show that it can offer real help to Syrians inside the country.


But providing aid is complicated, as the government still plays a role in coordinating international aid. The coalition also said it was forming a committee to pressure the United Nations to stop all aid to official Syrian institutions, a move that could further hamper the delivery of aid that is already challenged by the dangers of moving around the country. Syrian employees of quasi-official agencies currently transport much of the United Nations’ food aid to displaced citizens, John Ging, the head of the United Nations Office for the Coordination of Humanitarian Affairs, noted in a news conference in Damascus by a high-level United Nations delegation. Mr. Ging thanked the Syrian Arab Red Crescent for its bravery, Syria’s state news agency reported.


Ellen Barry reported from Moscow, and Hania Mourtada from Beirut, Lebanon. Alan Cowell contributed reporting from London, and Hala Droubi from Dubai, United Arab Emirates.



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Putin orders Russian computers to be protected after spy attacks






MOSCOW (Reuters) – President Vladimir Putin has ordered Russian authorities to protect state computers from hacking attacks, the Kremlin said on Monday, after an Internet security firm said a spy network had infiltrated government and embassy computers across the former Soviet bloc.


Dubbed Red October, the network used phishing attacks – or unsolicited emails to intended targets – to infect the computers of embassies and other state institutions with a program designed to harvest intelligence and send it back to a server.






Putin signed a decree on January 15 empowering the Federal Security Service (FSB) to “create a state system for the detection, prevention and liquidation of the effects of computer attacks on the information resources of the Russian Federation”.


State computer and telecommunications networks protected by the cyber security system should include those inside Russia and at its embassies and consulates abroad, according to the decree, which was published on a Kremlin website on Monday.


The Russian Internet security firm Kaspersky Labs said last week that the computer espionage network, discovered last October, had been seeking intelligence from Eastern European and ex-Soviet states including Russia since 2007. (http://r.reuters.com/mag45t )


Many of the systems infected belonged to diplomatic missions, Vitaly Kamluk, an expert in computer viruses at Kaspersky Labs, said last week. He declined to name specific countries.


Kamluk said last week that the network was still active, and that law enforcement agencies in several European countries were investigating it.


Kaspersky Labs said the infiltrators had created more than 60 domain names, mostly in Russia and Germany, that worked as proxies to hide the location of their real server.


The FSB declined immediate comment last week when asked whether Russia had taken action to bring any suspected members of the espionage network to justice, or acted to improve Internet security in light of the discovery.


The FSB – the main successor agency of the Soviet KGB – requested a written query, to which it has not yet responded. The Kremlin declined immediate comment on Monday when asked whether Putin’s decree was linked to Red October.


(Reporting by Steve Gutterman and Thomas Grove; Editing by Kevin Liffey)


Internet News Headlines – Yahoo! News





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President Obama: I Love Michelle's New Bangs















01/21/2013 at 04:20 PM EST







President Barack Obama and Michelle Obama


Matthew Cavanaugh/EPA/Landov


First Lady Michelle Obama's new do has the approval of a very powerful man.

Following his official swearing-in ceremony on Sunday, President Barack Obama attended an Inauguration eve gala at the National Building Museum, where he complimented his wife's fresh look.

"To address the most significant event of the weekend, I love her bangs," Obama said, according to USA Today. "She looks good. She always looks good."

The First Lady debuted her cut in a photo released on her 49th birthday last Thursday – and showed it off (along with her Thom Browne dress) again at the Inauguration on Monday.

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