Wall Street Week Ahead: Attention turns to financial earnings

NEW YORK (Reuters) - After over a month of watching Capitol Hill and Pennsylvania Avenue, Wall Street can get back to what it knows best: Wall Street.


The first full week of earnings season is dominated by the financial sector - big investment banks and commercial banks - just as retail investors, free from the "fiscal cliff" worries, have started to get back into the markets.


Equities have risen in the new year, rallying after the initial resolution of the fiscal cliff in Washington on January 2. The S&P 500 on Friday closed its second straight week of gains, leaving it just fractionally off a five-year closing high hit on Thursday.


An array of financial companies - including Goldman Sachs and JPMorgan Chase - will report on Wednesday. Bank of America and Citigroup will join on Thursday.


"The banks have a read on the economy, on the health of consumers, on the health of demand," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.


"What we're looking for is demand. Demand from small business owners, from consumers."


EARNINGS AND ECONOMIC EXPECTATIONS


Investors were greeted with a slightly better-than-anticipated first week of earnings, but expectations were low and just a few companies reported results.


Fourth quarter earnings and revenues for S&P 500 companies are both expected to have grown by 1.9 percent in the past quarter, according to Thomson Reuters I/B/E/S.


Few large corporations have reported, with Wells Fargo the first bank out of the gate on Friday, posting a record profit. The bank, however, made fewer mortgage loans than in the third quarter and its shares were down 0.8 percent for the day.


The KBW bank index <.bkx>, a gauge of U.S. bank stocks, is up about 30 percent from a low hit in June, rising in six of the last eight months, including January.


Investors will continue to watch earnings on Friday, as General Electric will round out the week after Intel's report on Thursday.


HOUSING, INDUSTRIAL DATA ON TAP


Next week will also feature the release of a wide range of economic data.


Tuesday will see the release of retail sales numbers and the Empire State manufacturing index, followed by CPI data on Wednesday.


Investors and analysts will also focus on the housing starts numbers and the Philadelphia Federal Reserve factory activity index on Thursday. The Thomson Reuters/University of Michigan consumer sentiment numbers are due on Friday.


Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis, said he expected to see housing numbers continue to climb.


"They won't be that surprising if they're good, they'll be rather eye-catching if they're not good," he said. "The underlying drive of the markets, I think, is economic data. That's been the catalyst."


POLITICAL ANXIETY


Worries about the protracted fiscal cliff negotiations drove the markets in the weeks before the ultimate January 2 resolution, but fear of the debt ceiling fight has yet to command investors' attention to the same extent.


The agreement was likely part of the reason for a rebound in flows to stocks. U.S.-based stock mutual funds gained $7.53 billion after the cliff resolution in the week ending January 9, the most in a week since May 2001, according to Thomson Reuters' Lipper.


Markets are unlikely to move on debt ceiling news unless prominent lawmakers signal that they are taking a surprising position in the debate.


The deal in Washington to avert the cliff set up another debt battle, which will play out in coming months alongside spending debates. But this alarm has been sounded before.


"The market will turn the corner on it when the debate heats up," Prudential Financial's Krosby said.


The CBOE Volatility index <.vix> a gauge of traders' anxiety, is off more than 25 percent so far this month and it recently hit its lowest since June 2007, before the recession began.


"The market doesn't react to the same news twice. It will have to be more brutal than the fiscal cliff," Krosby said. "The market has been conditioned that, at the end, they come up with an agreement."


(Reporting by Gabriel Debenedetti; editing by Rodrigo Campos)



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Venezuela Governors Warned Not to Question Government’s Legitimacy





CARACAS, Venezuela — Top government officials are threatening to take action against opposition governors and issuing dark warnings about conspiracies against the government of President Hugo Chávez, who is ailing and remains incommunicado in Cuba.




At a large rally for the cancer-stricken Mr. Chávez on Thursday, the day designated for his inauguration, Vice President Nicolás Maduro sent a warning to government critics who had objected to a Supreme Court ruling that endorsed the indefinite postponement of the president’s swearing-in.


Many interpreted his words to be directed at Henrique Capriles, the governor of Miranda State who lost to Mr. Chávez in the presidential election in October. He is the most likely opposition candidate if a special election has to be held should Mr. Chávez die, resign or become too sick to continue in office.


“Some governors out there have come out to make declarations, playing with words,” Mr. Maduro said. “We say to them, ‘Stop the waffling.’ If you don’t recognize the legitimate government of President Chávez, we are evaluating legally very forceful actions, because if you don’t recognize me, I’m not obligated to recognize you. It’s that simple.”


He added: “Watch your words and your actions. Take care not to get involved in coups and destabilizing adventures.”


Before leaving for cancer surgery in Havana in early December, Mr. Chávez designated Mr. Maduro as his political heir and said that he wanted him to run for president if a special election became necessary.


It is not unusual for Venezuelan officials to threaten or lash out at the opposition, which they routinely characterize as an enemy bent on overthrowing Mr. Chávez’s revolution. But in recent days, amid an intense debate over the constitutionality of postponing the president’s swearing in, the tone has gotten harsher.


Later on Thursday, Mr. Capriles posted a reply on Twitter saying, “Threats from No. 2s make us laugh, let’s see if starting tomorrow they get back to work, Government in paralysis.”


Mr. Capriles added in another post: “What do you know, they didn’t let Al Capone speak, what happened?”


Vladimir Villegas, a former ambassador who is now critical of the government, said that in Mr. Chávez’s absence, Mr. Maduro and other officials were using the clash with the opposition to promote unity among their followers.


“They can’t live without an enemy,” Mr. Villegas said. “The confrontation with the opposition holds them together.”


The vice president is appointed by the president, and some in the opposition have argued that Mr. Maduro cannot continue to serve in the new term without being reappointed by Mr. Chávez. But the Supreme Court ruled that Mr. Maduro and other appointees could continue in their posts.


Mr. Capriles has pointed out repeatedly that although Mr. Maduro is now at the head of the government, he is not an elected official.


“He was not elected Oct. 7,” Mr. Capriles said last week, referring to the recent presidential election. “He shouldn’t come and talk to us about legitimacy.”


The front page of the newspaper Tal Cual on Friday showed a caricature of Mr. Maduro with the headline: “The Usurper.” Another newspaper opposed to the government, El Nacional, ran a front-page headline that said: “The new term starts with legality questioned.”


On Thursday, Mr. Maduro also said the government had uncovered a plot to destabilize the country, although he offered no evidence and was vague in his description of the conspiracy.


“There is a plan by sectors of the ultraright to find a cadaver, two cadavers and fill the streets of Venezuela with protests,” Mr. Maduro said, adding that the opposition was planning “a kind of sabotage and constant fires in the cities.”


“We alerted all the police security forces to be very careful of their actions because they are looking to stain the political life” of the country, Mr. Maduro said.


Also last week, the government said it was starting an administrative proceeding against Globovisión, a television station closely allied with the opposition, over its coverage of the constitutional controversy around Mr. Chávez’s swearing-in. The proceeding could result in a large fine or the temporary shutdown of the station.


The National Telecommunications Commission announced the proceeding on Wednesday, several hours after Diosdado Cabello, president of the National Assembly and a top Chávez ally, said in a speech that the station should be sanctioned for its coverage of the issue.


The director of the commission, Pedro Maldonado, said punishment could include a fine of up to 10 percent of the station’s gross revenue and a 72-hour shutdown.


Globovisión paid a fine of about $2.2 million last year for its coverage of a deadly prison riot in 2010. The government said its reporting threatened public order and fomented anxiety.


On Friday, Globovisión ran a short spot several times showing a section of the Constitution that defends free speech followed by Mr. Maldonado announcing the proceeding against the station. It ends with the words, “Censorship of the Constitution.”


Meanwhile, Mr. Maduro flew to Cuba on Friday to visit the president and his family and speak with his doctors.


Mr. Chávez has not been seen or heard from since his cancer surgery on Dec. 11 in Havana. Officials have said that he is fighting a severe lung infection. In past trips to Cuba for cancer treatment, starting in June 2011, Mr. Chávez stayed in the public eye, posting on Twitter, making phone calls to government-run television stations and on one occasion conducting a televised government meeting from Havana.


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Microsoft may have exited gadget show prematurely






LAS VEGAS (AP) — Microsoft may have relinquished its starring role in America’s gaudiest gadget show a year too early.


After 13 straight years in the spotlight, Microsoft’s decision to scale back its presence at this week’s International CES deprived the software maker of a prime opportunity to explain and promote a new generation of redesigned computers running its radically remade Windows operating system.






The missed chance comes at a time when Microsoft Corp. could use a bully pulpit to counter perceptions that Windows 8 isn’t compelling enough to turn the technological tide away from smartphones and tablets running software made by Apple Inc. and Google Inc.


“They needed to be at this show in a very big way to show the progress they have made and what is it about 2013 that is going to make consumers really gravitate toward a Windows 8 machine,” said technology industry analyst Patrick Moorhead.


Since Windows 8 went on sale in late October, there has been little evidence to suggest the operating system will lift the personal computer industry out of a deepening downturn. Worldwide PC shipments during the final three months of last year dropped 6 percent from the same period in 2011, according to the research firm International Data Corp. The dip occurred despite the bevy of Windows 8 laptops and desktop machines that were on sale during the holiday shopping season.


Microsoft, though, insists things worked out at just fine during CES, even though it didn’t have a booth and only had a smattering of executives at the sprawling trade show, which drew some 156,000 people to Las Vegas.


The company, which is based in Redmond, Wash., decided it no longer makes sense to invest as much time and money in CES as it once did. The company says the show’s early January slot doesn’t mesh with the timing of its major product releases. Windows 8, for instance, was still more than nine months away from hitting the market when Microsoft CEO Steve Ballmer kicked off last year’s CES with a keynote address that was billed as the company’s swan song at the show.


“We are very comfortable with our decision,” Microsoft spokesman Frank Shaw said. “It has been a productive show for us this year.”


Microsoft’s retreat from CES puzzled some attendees curious about Windows 8. For instance, when Michael Sullivan showed up at computer maker Asus’ booth, which was stocked with Windows 8 computers, there was no one around to discuss the machines or the software.


“This is unusual,” said Sullivan, CEO of computer sales firm Spec 4 International Inc. “I don’t understand why a successful company isn’t bringing executives here.”


Asus invited some CES attendees to learn more about Windows 8 at a nearby hotel, away from the show’s main trade show. Asus has left its booth unmanned in previous years at CES, but the void wasn’t as noticeable when Microsoft’s own representatives were canvassing the floor.


NPD DisplaySearch analyst Richard Shim thought Microsoft should have had more people helping to staff its partners’ booths because, he said, no one understands how Windows 8 works better than the company that made it.


“Whenever you have a new product rolling out, it’s always helpful to communicate your message directly as opposed to counting on your partners,” Shim said.


Microsoft elected to curtail its CES presence largely because the show’s marketing value has diminished. In recent years, companies such as Apple and Google have shown that they can command more attention by holding their own exclusive events to unveil products just before they go on sale. Neither Apple nor Google had a major presence at CES.


In a sign that it is embracing its rivals’ strategy, Microsoft staged separate events last year in Los Angeles and New York to unveil Surface, a Windows-powered tablet computer, and Windows 8.


Nevertheless, both Shim and Moorhead believe would have been better off waiting until after this year’s CES to surrender its top billing on the marquee. That way, Ballmer could have used this year’s opening CES keynote to talk about Windows 8′s advantages as a finished product.


“Ballmer could have talked about the operating system more completely and built more hype around it, especially since Microsoft has been getting beaten up so far over Windows 8′s performance,” Shim said.


When Ballmer ended Microsoft’s 13-year streak of kicking off CES, he was only able to provide a peek at a makeover of the operating system that was still months away from being completed.


Microsoft touts Windows 8 as a breakthrough that will enable people to straddle the divide between personal computers and tablets. The revamped operating system is built to respond to the touch of a finger so it can work on tablet computers while still retaining the ability to respond to commands from keyboards and mice on laptop and desktop machines. To take advantage of Windows 8′s versatility, many PC makers are building convertible devices that can work as a tablet or a laptop.


But reviews of the new operating system have been lukewarm. Critics have been panning it as too confusing and cumbersome.


Microsoft used part of a CES technology forum presented by J.P. Morgan to try to build more enthusiasm. The company revealed that 60 million copies of Windows 8 have been sold so far, putting it on the same pace as the previous version — Windows 7 — at the same juncture of its release. But it’s unclear how many of those Windows 8 licenses are installed on computers that are still sitting in stores or warehouses.


Investors have been so unimpressed with the reception to the new Windows products that Microsoft’s stock price has slipped 4 percent since the operating system’s Oct. 26 release. Meanwhile, the bellwether Standard & Poor’s 500 index has gained 4 percent. Microsoft’s stock closed Friday at $ 26.83, up 37 cents.


A clearer picture of the early reception to Windows 8 may emerge Jan. 24 when Microsoft is scheduled to report its earnings for the three months spanning the holiday shopping season.


Although he wasn’t the main attraction, Ballmer made a cameo appearance during Qualcomm Inc. CEO Paul Jacobs’ opening address at this year’s show.


Ballmer’s acceptance of Qualcomm’s invitation to join Jacobs on stage surprised some people because Qualcomm has emerged as a threat to Intel Corp., a longtime Microsoft ally that makes most of the processors in Windows computers. Instead of touting Windows 8, Ballmer spent his time hailing a streamlined version of the operating system, dubbed Windows RT, which runs on tablets using processors that rely on technology designed by ARM, another Intel rival.


Microsoft’s top executive in charge of technical strategy appeared on stage at Samsung Electronics’ invitation to reveal a Windows phone featuring a flexible color display. The electronics of the phone are in a little box, and the thin, bendable screen is attached to it, looking much like a piece of paper.


That left Intel and other Microsoft partners, including PC makers Samsung, Sony, Asus, Acer and Hewlett-Packard Co., to do most of the boasting about Windows 8 at their own CES booths.


“Our partners are doing that very effectively,” Shaw said. “You couldn’t walk through the (CES) floor without seeing people doing really interesting things with Windows 8.”


But there were other times when it appeared Microsoft’s partners could have used some help.


Sony exhibitor John Guzman, for instance, seemed stumped when an Associated Press reporter visited the company’s CES booth and asked whether a machine running Windows 8 or the more advanced Windows 8 Pro would be a better fit for journalistic work.


“That is more of a Microsoft question,” Guzman said, adding that no Microsoft representatives were around.


___


Liedtke reported from San Francisco. AP Technology Writer Peter Svensson contributed to this story.


Gadgets News Headlines – Yahoo! News





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Adele Shops for Baby in Los Angeles















01/12/2013 at 01:30 PM EST



She may or may not win a trophy at Sunday's Golden Globe Awards, but Adele is already picking up some little treasures in Los Angeles.

After arriving Thursday, the new mom, whose son was born in October, shopped at upscale baby boutique Bel Bambini in West Hollywood on Friday.

"She was in a great mood and just focused on picking up essentials for her baby boy," an eyewitness tells PEOPLE.

What did her lucky little boy get? According to a customer, the British superstar spent an hour at the store and purchased a "lot of loot," including baby wash, shampoos and a changing pad.

A bodyguard type helped the mom, who wore head-to-toe black with a blue coat and a hat, load her purchases into a waiting car.

The Globes, which air live Sunday (8 p.m. ET) on NBC, will be the first official appearance for Adele since she and boyfriend Simon Konecki welcomed their son, whose name is still unknown.

She's nominated for best original song for her James Bond tune, "Skyfall."

Reporting by PERNILLA CEDENHEIM

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Hospitals crack down on workers refusing flu shots


CHICAGO (AP) — Patients can refuse a flu shot. Should doctors and nurses have that right, too? That is the thorny question surfacing as U.S. hospitals increasingly crack down on employees who won't get flu shots, with some workers losing their jobs over their refusal.


"Where does it say that I am no longer a patient if I'm a nurse," wondered Carrie Calhoun, a longtime critical care nurse in suburban Chicago who was fired last month after she refused a flu shot.


Hospitals' get-tougher measures coincide with an earlier-than-usual flu season hitting harder than in recent mild seasons. Flu is widespread in most states, and at least 20 children have died.


Most doctors and nurses do get flu shots. But in the past two months, at least 15 nurses and other hospital staffers in four states have been fired for refusing, and several others have resigned, according to affected workers, hospital authorities and published reports.


In Rhode Island, one of three states with tough penalties behind a mandatory vaccine policy for health care workers, more than 1,000 workers recently signed a petition opposing the policy, according to a labor union that has filed suit to end the regulation.


Why would people whose job is to protect sick patients refuse a flu shot? The reasons vary: allergies to flu vaccine, which are rare; religious objections; and skepticism about whether vaccinating health workers will prevent flu in patients.


Dr. Carolyn Bridges, associate director for adult immunization at the federal Centers for Disease Control and Prevention, says the strongest evidence is from studies in nursing homes, linking flu vaccination among health care workers with fewer patient deaths from all causes.


"We would all like to see stronger data," she said. But other evidence shows flu vaccination "significantly decreases" flu cases, she said. "It should work the same in a health care worker versus somebody out in the community."


Cancer nurse Joyce Gingerich is among the skeptics and says her decision to avoid the shot is mostly "a personal thing." She's among seven employees at IU Health Goshen Hospital in northern Indiana who were recently fired for refusing flu shots. Gingerich said she gets other vaccinations but thinks it should be a choice. She opposes "the injustice of being forced to put something in my body."


Medical ethicist Art Caplan says health care workers' ethical obligation to protect patients trumps their individual rights.


"If you don't want to do it, you shouldn't work in that environment," said Caplan, medical ethics chief at New York University's Langone Medical Center. "Patients should demand that their health care provider gets flu shots — and they should ask them."


For some people, flu causes only mild symptoms. But it can also lead to pneumonia, and there are thousands of hospitalizations and deaths each year. The number of deaths has varied in recent decades from about 3,000 to 49,000.


A survey by CDC researchers found that in 2011, more than 400 U.S. hospitals required flu vaccinations for their employees and 29 hospitals fired unvaccinated employees.


At Calhoun's hospital, Alexian Brothers Medical Center in Elk Grove Village, Ill., unvaccinated workers granted exemptions must wear masks and tell patients, "I'm wearing the mask for your safety," Calhoun says. She says that's discriminatory and may make patients want to avoid "the dirty nurse" with the mask.


The hospital justified its vaccination policy in an email, citing the CDC's warning that this year's flu outbreak was "expected to be among the worst in a decade" and noted that Illinois has already been hit especially hard. The mandatory vaccine policy "is consistent with our health system's mission to provide the safest environment possible."


The government recommends flu shots for nearly everyone, starting at age 6 months. Vaccination rates among the general public are generally lower than among health care workers.


According to the most recent federal data, about 63 percent of U.S. health care workers had flu shots as of November. That's up from previous years, but the government wants 90 percent coverage of health care workers by 2020.


The highest rate, about 88 percent, was among pharmacists, followed by doctors at 84 percent, and nurses, 82 percent. Fewer than half of nursing assistants and aides are vaccinated, Bridges said.


Some hospitals have achieved 90 percent but many fall short. A government health advisory panel has urged those below 90 percent to consider a mandatory program.


Also, the accreditation body over hospitals requires them to offer flu vaccines to workers, and those failing to do that and improve vaccination rates could lose accreditation.


Starting this year, the government's Centers for Medicare & Medicaid Services is requiring hospitals to report employees' flu vaccination rates as a means to boost the rates, the CDC's Bridges said. Eventually the data will be posted on the agency's "Hospital Compare" website.


Several leading doctor groups support mandatory flu shots for workers. And the American Medical Association in November endorsed mandatory shots for those with direct patient contact in nursing homes; elderly patients are particularly vulnerable to flu-related complications. The American Nurses Association supports mandates if they're adopted at the state level and affect all hospitals, but also says exceptions should be allowed for medical or religious reasons.


Mandates for vaccinating health care workers against other diseases, including measles, mumps and hepatitis, are widely accepted. But some workers have less faith that flu shots work — partly because there are several types of flu virus that often differ each season and manufacturers must reformulate vaccines to try and match the circulating strains.


While not 100 percent effective, this year's vaccine is a good match, the CDC's Bridges said.


Several states have laws or regulations requiring flu vaccination for health care workers but only three — Arkansas, Maine and Rhode Island — spell out penalties for those who refuse, according to Alexandra Stewart, a George Washington University expert in immunization policikfriedenes and co-author of a study appearing this month in the journal Vaccine.


Rhode Island's regulation, enacted in December, may be the toughest and is being challenged in court by a health workers union. The rule allows exemptions for religious or medical reasons, but requires unvaccinated workers in contact with patients to wear face masks during flu season. Employees who refuse the masks can be fined $100 and may face a complaint or reprimand for unprofessional conduct that could result in losing their professional license.


Some Rhode Island hospitals post signs announcing that workers wearing masks have not received flu shots. Opponents say the masks violate their health privacy.


"We really strongly support the goal of increasing vaccination rates among health care workers and among the population as a whole," but it should be voluntary, said SEIU Healthcare Employees Union spokesman Chas Walker.


Supporters of health care worker mandates note that to protect public health, courts have endorsed forced vaccination laws affecting the general population during disease outbreaks, and have upheld vaccination requirements for schoolchildren.


Cases involving flu vaccine mandates for health workers have had less success. A 2009 New York state regulation mandating health care worker vaccinations for swine flu and seasonal flu was challenged in court but was later rescinded because of a vaccine shortage. And labor unions have challenged individual hospital mandates enacted without collective bargaining; an appeals court upheld that argument in 2007 in a widely cited case involving Virginia Mason Hospital in Seattle.


Calhoun, the Illinois nurse, says she is unsure of her options.


"Most of the hospitals in my area are all implementing these policies," she said. "This conflict could end the career I have dedicated myself to."


__


Online:


R.I. union lawsuit against mandatory vaccines: http://www.seiu1199ne.org/files/2013/01/FluLawsuitRI.pdf


CDC: http://www.cdc.gov


___


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


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Wall Street Week Ahead: Attention turns to financial earnings

NEW YORK (Reuters) - After over a month of watching Capitol Hill and Pennsylvania Avenue, Wall Street can get back to what it knows best: Wall Street.


The first full week of earnings season is dominated by the financial sector - big investment banks and commercial banks - just as retail investors, free from the "fiscal cliff" worries, have started to get back into the markets.


Equities have risen in the new year, rallying after the initial resolution of the fiscal cliff in Washington on January 2. The S&P 500 on Friday closed its second straight week of gains, leaving it just fractionally off a five-year closing high hit on Thursday.


An array of financial companies - including Goldman Sachs and JPMorgan Chase - will report on Wednesday. Bank of America and Citigroup will join on Thursday.


"The banks have a read on the economy, on the health of consumers, on the health of demand," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.


"What we're looking for is demand. Demand from small business owners, from consumers."


EARNINGS AND ECONOMIC EXPECTATIONS


Investors were greeted with a slightly better-than-anticipated first week of earnings, but expectations were low and just a few companies reported results.


Fourth quarter earnings and revenues for S&P 500 companies are both expected to have grown by 1.9 percent in the past quarter, according to Thomson Reuters I/B/E/S.


Few large corporations have reported, with Wells Fargo the first bank out of the gate on Friday, posting a record profit. The bank, however, made fewer mortgage loans than in the third quarter and its shares were down 0.8 percent for the day.


The KBW bank index <.bkx>, a gauge of U.S. bank stocks, is up about 30 percent from a low hit in June, rising in six of the last eight months, including January.


Investors will continue to watch earnings on Friday, as General Electric will round out the week after Intel's report on Thursday.


HOUSING, INDUSTRIAL DATA ON TAP


Next week will also feature the release of a wide range of economic data.


Tuesday will see the release of retail sales numbers and the Empire State manufacturing index, followed by CPI data on Wednesday.


Investors and analysts will also focus on the housing starts numbers and the Philadelphia Federal Reserve factory activity index on Thursday. The Thomson Reuters/University of Michigan consumer sentiment numbers are due on Friday.


Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis, said he expected to see housing numbers continue to climb.


"They won't be that surprising if they're good, they'll be rather eye-catching if they're not good," he said. "The underlying drive of the markets, I think, is economic data. That's been the catalyst."


POLITICAL ANXIETY


Worries about the protracted fiscal cliff negotiations drove the markets in the weeks before the ultimate January 2 resolution, but fear of the debt ceiling fight has yet to command investors' attention to the same extent.


The agreement was likely part of the reason for a rebound in flows to stocks. U.S.-based stock mutual funds gained $7.53 billion after the cliff resolution in the week ending January 9, the most in a week since May 2001, according to Thomson Reuters' Lipper.


Markets are unlikely to move on debt ceiling news unless prominent lawmakers signal that they are taking a surprising position in the debate.


The deal in Washington to avert the cliff set up another debt battle, which will play out in coming months alongside spending debates. But this alarm has been sounded before.


"The market will turn the corner on it when the debate heats up," Prudential Financial's Krosby said.


The CBOE Volatility index <.vix> a gauge of traders' anxiety, is off more than 25 percent so far this month and it recently hit its lowest since June 2007, before the recession began.


"The market doesn't react to the same news twice. It will have to be more brutal than the fiscal cliff," Krosby said. "The market has been conditioned that, at the end, they come up with an agreement."


(Reporting by Gabriel Debenedetti; editing by Rodrigo Campos)



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A Trail of Bullet Casings Leads From Africa’s Wars to Iran





The first clues appeared in Kenya, Uganda and what is now South Sudan. A British arms researcher surveying ammunition used by government forces and civilian militias in 2006 found Kalashnikov rifle cartridges he had not seen before. The ammunition bore no factory code, suggesting that its manufacturer hoped to avoid detection.




Within two years other researchers were finding identical cartridges circulating through the ethnic violence in Darfur. Similar ammunition then turned up in 2009 in a stadium in Conakry, Guinea, where soldiers had fired on antigovernment protesters, killing more than 150.


For six years, a group of independent arms-trafficking researchers worked to pin down the source of the mystery cartridges. Exchanging information from four continents, they concluded that someone had been quietly funneling rifle and machine-gun ammunition into regions of protracted conflict, and had managed to elude exposure for years. Their only goal was to solve the mystery, not implicate any specific nation.


When the investigators’ breakthrough came, it carried a surprise. The manufacturer was not one of Africa’s usual suspects. It was Iran.


Iran has a well-developed military manufacturing sector, but has not exported its weapons in quantities rivaling those of the heavyweights in the global arms trade, including the United States, Russia, China and several European states. But its export choices in this case were significant. While small-arms ammunition attracts less attention than strategic weapons or arms that have drawn international condemnation, like land mines and cluster bombs, it is a basic ingredient of organized violence, and involved each year and at each war in uncountable deaths and crimes.


And for the past several years, even as Iran faced intensive foreign scrutiny over its nuclear program and for supporting proxies across the Middle East, its state-manufactured ammunition was distributed through secretive networks to a long list of combatants, including in regions under United Nations arms embargoes.


The trail of evidence uncovered by the investigation found Iranian cartridges in the possession of rebels in Ivory Coast, federal troops in the Democratic Republic of Congo, the Taliban in Afghanistan and groups affiliated with Al Qaeda in the Maghreb in Niger. The ammunition was linked to spectacular examples of state-sponsored violence and armed groups connected to terrorism — all without drawing wide attention or leading back to its manufacturer.


The ammunition, matched to the world’s most abundant firearms, has principally been documented in Africa, where the researchers concluded that untold quantities have been supplied to governments in Guinea, Kenya, Ivory Coast and, the evidence suggests, Sudan.


From there, it traveled to many of the continent’s most volatile locales, becoming an instrument of violence in some of Africa’s ugliest wars and for brutal regimes. And while the wide redistribution within Africa may be the work of African governments, the same ammunition has also been found elsewhere, including in an insurgent arms cache in Iraq and on a ship intercepted as it headed for the Gaza Strip.


Iran’s role in providing arms to allies and to those who fight its enemies has long been broadly understood. Some of these practices were most recently reported in the transfer of Fajr-5 ground-to-ground rockets to Gaza. Its expanding footprint of small-arms ammunition exports has pushed questions about its roles in a shadowy ammunition trade high onto the list of research priorities for trafficking investigators.


“If you had asked me not too long ago what Iran’s role in small-arms ammunition trafficking to Africa had been, I would have said, ‘Not much,’ ” said James Bevan, a former United Nations investigator who since 2011 has been director of Conflict Armament Research, a private firm registered in England that identifies and tracks conventional weapons. “Our understanding of that is changing.”


The independent investigation also demonstrated the relative ease with which weapons and munitions flow about the world, a characteristic of the arms trade that might partially explain how Iran sidestepped scrutiny of governments and international organizations, including the United Nations, that have tried to restrict its banking transactions and arms sales.


The United Nations, in a series of resolutions, has similarly tried to block arms transfers into Ivory Coast, Congo and Sudan — all places where researchers found Iranian ammunition.


Ammunition from other sources, including China, Russia, Hungary, the Czech Republic and other former Soviet bloc states remain in circulation in Africa, along with production by African states. Why Iran has entered the market is not clear. Profit motives as well as an effort by Iran to gain influence in Africa might explain the exports, Mr. Bevan said. But much remains unknown.


Neither the government of Iran nor its military manufacturing conglomerate, the Defense Industries Organization, or DIO, replied to written queries submitted for this article.


The researchers involved in the investigation — including several former experts for the United Nations and one from Amnesty International — documented the expanding circulation of Iranian ammunition, not the means or the entities that have actually exported the stocks. They are not sure if the ammunition had been directly sold by the Iranian government or its security services, by a government- or military-controlled firm, or by front companies abroad.


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Sprint confirms it will launch BlackBerry 10 later this year









Title Post: Sprint confirms it will launch BlackBerry 10 later this year
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Ben Affleck Wins Critics Choice Best Director, Thanks the Academy That Snubbed Him









01/11/2013 at 12:50 PM EST



Take that, Academy!

Hours after Ben Affleck was snubbed by the Academy of Motion Picture Arts and Sciences, which did not give him a Best Director nomination for his film Argo, he won in the same category at Thursday night's 18th Annual Critics Choice Movie Awards in Santa Monica.

"I'd like to thank the Academy," joked Affleck, 40, while on stage to collect his hardware. "I'm kidding, I'm kidding! This is the one that counts."

Affleck's victory was greeted by thunderous applause and a standing ovation from the crowd. His absence from the field of Best Director Oscar nominees was considered one of the biggest shocks when the nominations were announced Thursday morning. Meanwhile, Argo was nominated for a Best Picture Oscar.

"It actually is very, very cool for me," Affleck said while accepting his Critics Choice Award. "There was a time where the Ben Affleck Critics Award was a Saturday Night Live sketch, so this is a very, very cool and exciting thing."

Affleck, who attended the show without wife Jennifer Garner, went on to thank his family by saying, "My daughter wrote my name on my hand for luck. I don't know how that works, but I guess it worked," he said. "I want to thank my kids and I want to thank my wife, without whom I would not be anywhere, much less here."

When Affleck returned to his table, George Clooney – a producer on Argo – greeted him with a congratulatory hug and smile, while fellow nominee David O. Russell (Silver Linings Playbook) offered his congrats by rubbing Affleck's back.

Argo also was named best picture at the Critics Choice Awards.

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Flu more widespread in US; eases off in some areas


NEW YORK (AP) — Flu is more widespread across the nation, but the number of hard-hit states has declined, health officials said Friday.


Flu season started early this winter, and includes a strain that tends to make people sicker. Health officials have forecast a potentially bad flu season, following last year's unusually mild one.


The latest numbers, however, hint that the flu season may already have peaked in some spots.


Flu was widespread in 47 states last week, up from 41 the week before, the Centers for Disease Control and Prevention said on Friday. Many cases may be mild. The only states without widespread flu are California, Mississippi and Hawaii


The hardest hit states dropped to 24 from 29. Those are states where large numbers of people have been treated for flu-like illness.


Those with less activity include Florida, Arkansas and South Carolina in South, the first region hit in the current flu season.


Nationally, 20 children have died from the flu. There is no running tally of adult deaths, but the CDC estimates that the flu kills about 24,000 people in an average year.


Flu vaccinations are recommended for everyone 6 months or older. Health officials are still recommending vaccinations, even in areas with widespread flu reports.


Nearly 130 million doses of flu vaccine were distributed this year, and at least 112 million have been used, according to CDC officials.


Vaccine is still available, but supplies may have run low in some locations, health officials say.


Also on Friday, CDC officials said a recent study of more than 1,100 people has concluded the current flu vaccine is 62 percent effective. That's in line with how effective the vaccine has been in other years.


The flu vaccine is reformulated each year, and officials say this year's version is a good match to the viruses going around.


Flu usually peaks in midwinter. Symptoms can include fever, cough, runny nose, head and body aches and fatigue. Some people also suffer vomiting and diarrhea, and some develop pneumonia or other severe complications.


Most people with flu have a mild illness. But people with severe symptoms should see a doctor. They may be given antiviral drugs or other medications to ease symptoms.


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Online:


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


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