Quest: U.S. economy to dominate Davos




The US and the sorry state of the country's political and budgetary process will be the center of attention at Davos, writes Quest




STORY HIGHLIGHTS


  • Quest: Davos is a chance to see where the political and economic landmines are in 2013

  • Quest: People will be speculating about how dysfunctional the US political process has become

  • Quest: Davos has been consumed by eurozone sovereign debt crises for three years




Editor's note: Watch Quest Means Business on CNN International, 1800pm GMT weekdays. Quest Means Business is presented by CNN's foremost international business correspondent Richard Quest. Follow him on Twitter.


(CNN) -- It is that time of the year, again. Come January no sooner have the Christmas trees been taken down, as the winter sales are in full vicious flood the world of business start thinking about going to the world economic forum, better known as Davos.


For the past three years Davos has been consumed by the eurozone sovereign debt crises.


As it worsened the speculation became ever more frantic.....Will Greece leave the euro? Will the eurozone even survive? Was this all just a big German trick to run Europe? More extreme, more dramatic, more nonsense.


Can China be the biggest engine of growth for the global economy. Round and round in circles we have gone on these subjects until frankly I did wonder if there was anything else to say short of it's a horrible mess!


This year there is a new bogey man. The US and in particular the sorry state of the country's political and budgetary process will, I have little doubt, be the center of attention.


Read more: More 'cliffs' to come in new Congress


Not just because Congress fluffed its big test on the fiscal cliff, but because in doing so it created many more deadlines, any one of which could be deeply unsettling to global markets... There is the $100 billion budget cutbacks postponed for two months by the recent agreement; postponed to the end of February.


At exactly the same time as the US Treasury's ability to rob Peter to pay Paul on the debt ceiling crises comes to a head.


Read more: Both Obama, GOP set for tough talks ahead


The Treasury's "debt suspension period" is an extraordinary piece of financial chicanery that if we tried it with our credit cards would get us locked up!! Then there is the expiration of the latest continuing resolution, the authority by which congress is spending money.


There is the terrifying prospect that all these budget woes will conflate into one big political fist fight as the US faces cutbacks, default or shutdown!!


I am being alarmist. Most rational people believe that the worst sting will be taken out of this tail....not before we have all been to the edge...and back. And that is what Davos will have on its mind.


People will be speculating about how dysfunctional the US political process has become and is it broken beyond repair (if they are not asking that then they should be...)




They will be pondering which is more serious for risk...the US budget and debt crises or the Eurozone sovereign debt debacle. A classic case of between the devil and the deep blue sea.




The official topic this year is Resilient Dynamism. I have absolutely no idea what this means. None whatsoever. It is another of WEF's ersatz themes dreamt up to stimulate debate in what Martin Sorrell has beautifully terms "davosian language" In short everyone interprets it as they will.




What I will enjoy, as I do every year, is the chance to hear the global players speak and the brightest and best thinkers give us their take on the global problems the atmosphere becomes febrile as the rock-stars of finance and economics give speeches, talk on panels and give insight.




Of course comes of these musings, it never does at Davos. That's not the point. This is a chance to take stock and see where the political and economic landmines are in 2013. I like to think of Davos as the equivalent of Control/Alt/Delete. It allows us to reboot.


We leave at least having an idea of where people stand on the big issues provided you can see through the panegyrics of self congratulatory back slapping that always takes place whenever you get like minded people in one place... And this year, I predict the big issue being discussed in coffee bars, salons and fondue houses will be the United States and its budgetary woes.







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Ex-Sen. Bradley to walk Hobson down aisle to wed Lucas













Hobson named


Mellody Hobson, president of Ariel Investments, is the new chairman of After School Matters.
(E. Jason Wambsgans / July 10, 2012)













































When Ariel Investments President Mellody Hobson weds cinematic icon George Lucas, the bride will be given away by former U.S. senator and New York Knicks star Bill Bradley.

“Bill is walking me down the aisle,” Hobson said Thursday night at Groupon headquarters, 600 W. Chicago Ave., during the company’s women mentoring program kickoff.

The Chicago executive said she met Bradley when she was 17, and he has been a mentor and father figure since. When he joined Starbucks’ board, he brought her along as a director.

When Hobson became engaged to the “Star Wars” creator, she informed Bradley it was time to step up.

“I told him, ‘Hey! You’ve got a job to do!’” she said. “He started crying.”

Hobson did not disclose where or when the wedding will take place.




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String of bombings kill 101, injure 200 in Pakistan


QUETTA, Pakistan (Reuters) - At least 101 people were killed in bombings in two Pakistani cities on Thursday in one of the country's bloodiest days in recent years, officials said, with most casualties caused by sectarian attacks in Quetta.


The bombings underscored the myriad threats Pakistani security forces face from homegrown Sunni extremist groups, the Taliban insurgency in the northwest and the less well-known Baloch insurgency in the southwest.


On Thursday evening, two coordinated explosions killed at least 69 people and injured more than 100 in Quetta, the provincial capital of Balochistan, said Deputy Inspector of Police Hamid Shakil.


The first attack, in a crowded snooker hall, was a suicide bombing, local residents said. About ten minutes later, a car bomb exploded, they said. Five policemen and a cameraman were among the dead from that blast.


The attacks happened in a predominately Shia neighborhood and banned sectarian group Lashkar-e-Jhangvi claimed responsibility. The extremist Sunni group targets Shias, who make up about 20 percent of Pakistani's population.


Targeted killings and bombings of Shia communities are common in Pakistan, and rights groups say hundreds of Shia were killed last year. Militant groups in Balochistan frequently bomb or shoot Shia passengers on buses travelling to neighboring Iran.


The killers are rarely caught and some Shia activists say militants work alongside elements of Pakistan's security forces, who see them as a potential bulwark against neighboring India.


Many Pakistanis fear their nation could become the site of a regional power struggle between Saudi Arabia, source of funding for Sunni extremist groups, and Iran, which is largely Shia.


But sectarian tensions are not the only source of violence.


The United Baloch Army claimed responsibility for a blast in Quetta's market earlier in the day. It killed 11 people and injured more than 40, mostly vegetable sellers and secondhand clothes dealers, police officer Zubair Mehmood said. A child was also killed.


The group is one of several fighting for independence for Balochistan, an arid, impoverished region with substantial gas, copper and gold reserves, which constitutes just under half of Pakistan's territory and is home to about 8 million of the country's population of 180 million.


SWAT BOMBING


In another incident Thursday, 21 were killed and more than 60 injured in a bombing when people gathered to hear a religious leader speak in Mingora, the largest city in the northwestern province of Swat, police and officials at the Saidu Sharif hospital said.


"The death toll may rise as some of the injured are in critical condition and we are receiving more and more injured people," said Dr. Niaz Mohammad.


It has been more than two years since a militant attack has claimed that many lives in Swat.


The mountainous region, formerly a tourist destination, has been administered by the Pakistani army since their 2009 offensive drove out Taliban militants who had taken control.


But Talibans retain the ability to attack in Swat and shot schoolgirl campaigner Malala Yousufzai in Mingora last October.


A Taliban spokesman said they were not responsible for Thursday's bombing.


(Additional reporting by Jibran Ahmad in Peshawar, Pakistan; Writing by Katharine Houreld; Editing by Mark Heinrich and Jason Webb)



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Wall Street rises after Alcoa reports earnings

NEW YORK (Reuters) - Stocks rose on Wednesday, rebounding from two days of losses, as investors turned their focus to the first prominent results of the earnings season.


Stocks had retreated at the start of the week from the S&P 500's highest point in five years, hit last Friday, on worries about possible earnings weakness.


Shares of Alcoa Inc were down 0.5 percent to $9.08 after early gains, following the company's earnings release after the bell on Tuesday. The largest U.S. aluminum producer said it expects global demand for aluminum to grow in 2013.


Herbalife Ltd stock rose 4.2 percent to $39.95 in its most active day of trading in the company's history after hedge fund manager Dan Loeb took a large stake in the nutritional supplements seller. Prominent short-seller Bill Ackman had previously accused the company of being a "pyramid scheme," which Herbalife has denied.


Traders have been cautious as the current quarter shaped up like the previous one, with companies recently lowering expectations, said James Dailey, portfolio manager of Team Asset Strategy Fund in Harrisburg, Pennsylvania. Lower expectations leave room for companies to surprise investors even if their results are not particularly strong.


"The big question and focus is on revenue, and Alcoa had better-than-expected revenue," which calmed the market a little, Dailey said.


Overall, corporate profits were expected to beat the previous quarter's meager 0.1 percent rise. Both earnings and revenues in the fourth quarter are expected to have grown by 1.9 percent, according to Thomson Reuters data.


The Dow Jones industrial average <.dji> gained 61.66 points, or 0.46 percent, to 13,390.51. The Standard & Poor's 500 Index <.spx> rose 3.87 points, or 0.27 percent, to 1,461.02. The Nasdaq Composite Index <.ixic> gained 14.00 points, or 0.45 percent, to 3,105.81.


Facebook Inc shares rose above $30 for the first time since July 2012, trading up 5.3 percent at $30.59. Facebook, which has been tight-lipped about its plans after its botched IPO in May, invited the media to its headquarters next week.


Clearwire Corp shares jumped 7.2 percent to $3.13 after Dish Network bid $2.28 billion for the company, beating out a previous Sprint offer and setting the stage for a takeover battle for the wireless service provider that owns crucial mobile spectrum.


Apollo Group Inc slid after heavier early losses, a day after it reported lower student sign-ups for the third straight quarter and cut its operating profit outlook for 2013. Apollo's shares were last off 7.8 percent at $19.32.


Volume was below the 2012 average of 6.42 billion shares traded per day, as 6.10 billion were traded on the New York Stock Exchange, NYSE MKT and Nasdaq.


Advancing stocks outnumbered declining ones on the NYSE by 2,014 to 963, while on the Nasdaq advancers beat decliners 1,603 to 859.


(Reporting by Gabriel Debenedetti; additional reporting by Angela Moon; Editing by Nick Zieminski)



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Hundreds Help Find Missing Boy in Cold






A frantic search for a missing six-year-old boy in Seneca, Mo. ended in relief when deputies discovered the boy huddled under a bush with his two dogs for warmth.


As temperatures plunged into the low 20s, Ryle Smith was discovered about a mile from the family house with Baxter, a large Boxer, and Bella, a Labrador mix lying on top of the boy keeping him warm.






“He was wearing no socks or shoes,” Ryle’s mother Holly told ABC News. “His feet were so cold that it was the early stages of frostbite, he hadn’t eaten dinner, he was exhausted and hungry.”


Ms. Smith said that according to paramedics, the dogs were lying on top of the boy; they could tell because his upper extremities were warm.


Ryle disappeared at about 4:30 Tuesday afternoon, following his puppy Bella away from the family property while playing outside. His parents called 911. Between 150 and 200 people responded to the alert to assist with the search.


“Complete strangers drove from surrounding cities and showed up at our doorstop,” said Holly Smith. “It was incredible. Most people have told me they have never seen a response like that.”


“We were real concerned about the weather,” Newtown County Sheriff Ken Copeland told ABC News. “It was calling for sleet and snow later that night so we were really concerned.”


Copeland said responders from the Newtown County Sheriff’s Office as well as the Joplin, Seneca and Redings Mill fire departments, and the Newtown County Rescue and Recovery team, joined in the search, in addition to concerned local citizens.


“Here in Joplin we went through the terrible tornado,” said Copeland. “To see all these agencies and the community come together… it went really well.”


Also Read
Animal and Pets News Headlines – Yahoo! News





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Terror group fills Syria rebels' space






STORY HIGHLIGHTS


  • U.S. declared a key opposition group in Syria a terrorist organization

  • New report says it is the most effective group in the opposition, with 5,000 fighters

  • Nada Bakos: The group has ties to al Qaeda but also seeks to provide social services

  • She says the chances are slim that it could be persuaded to give up radical goals




Editor's note: Nada Bakos is a former Central Intelligence Agency analyst.


(CNN) -- In the midst of the struggle against Bashar al-Assad's government stands Jabhat al-Nusra, recently designated by the U.S. State Department as a foreign terrorist organization.


A new report by the Quilliam Foundation in London says the organization is the most effective arm of the Syrian insurgency and now fields about 5,000 fighters against the Assad regime.


Practically speaking, the terrorist designation means little that is new for the immediate struggle in Syria. Shortly after al-Nusra claimed credit for one of its early suicide bombings in January 2012, the Obama administration made known al-Nusra's connection to al Qaeda in Iraq, a group with which I was intimately familiar in my capacity as an analyst and targeting officer at the Central Intelligence Agency.



Nada Bakos

Nada Bakos



The administration's position was reinforced when Director of National Intelligence James Clapper one month later testified in front of the Senate Armed Services Committee that "...we believe al-Qaeda in Iraq is extending its reach into Syria."


Analysis: Study shows rise of al Qaeda affiliate in Syria


Al-Nusra is filling a power vacuum through charitable efforts to galvanize local support and generating influence among Syrians. In light of al-Nusra's influence in Syria, the real question is not so much about the scope and scale of al-Nusra currently, but rather how should the United States respond to its rise, particularly after al-Assad's eventual exit?



Historically, the U.S. government seemed to believe that as soon as people are given the chance, they will choose and then create a Jeffersonian democracy. Then we are surprised, if not outraged, that people turn to organizations such as Hamas, Hezbollah or the Muslim Brotherhood in electoral contests. These organizations often provide the basic necessities that people need to survive: food, water, medical care, education and security.


As ideologically distasteful as we might find them, they are often doing things corrupt, weak or failing governments do not: providing the basic necessities that people need to survive (let alone create the conditions that enable people to aspire to thrive).


Why does al-Nusra keep quiet about its ties to al Qaeda in Iraq? The documents pulled from the Abottabad raid that killed Osama bin Laden shed light on his awareness that the al Qaeda brand had been deteriorating.








Bin Laden urged regional groups, "If asked, it would be better to say there is a relationship with al Qaeda, which is simply a brotherly Islamic connection, and nothing more," according to CNN. Bin Laden and Ayman al-Zawahiri had criticized the Jordanian-born founder and leader of al Qaeda in Iraq, Abu Musab al-Zarqawi, for his killing of civilians and lack of political acumen to win public support.


Talk about al Qaeda seems distant. It was a bogeyman made real in 1993 when it unsuccessfully attacked the World Trade Center and terrifyingly tangible in 2001 when its operatives succeeded in destroying the twin towers and expanded their attacks to the Pentagon and the air over Pennsylvania. Its looming shadow has since faded from the public eye, particularly with the death of bin Laden. Its vision and ideology, however, continue to have a strong appeal.


Now that al Qaeda central has a less visible role, what makes players like al-Nusra and al Qaeda in Iraq threats? Even today, after Zarqawi's death, al Qaeda in Iraq has managed to continue to wreak havoc in Iraq and in the region through an autonomous, adaptable structure.


Al-Nusra has declared itself a player in the fight for a global jihad, a bold statement for what is today a localized group . Even small groups, however, have the potential to disrupt regional stability and complicate America's pursuit of its national security objectives—a fact I learned firsthand tracking and trying to stem the rise, influence and efficacy of al Qaeda in Iraq in the aftermath of the U.S. invasion of Iraq.


Zarqawi, until his death in 2006, was able to confound U.S. forces and attack Jordan by attracting recruits from North Africa (including Libya), Central Europe, Jordan and Syria.


Some of Zarqawi's earliest recruits were veterans of the Syrian Muslim Brotherhood, an organization that lashed out against the Syrian government during the 1980s. Captured records from a raid near the city of Sinjar, Iraq, indicated that during the 2006-2007 time frame, 8% of al Qaeda in Iraq operatives were Syrians. The percentage likely ebbed and flowed as the group formed, became influential and waned, but it suggests that there was no shortage of recruits amenable to engage in religious conflict in Syria as recently as 5-10 years ago.


The most striking thing about the captured records, however, is that it appears almost every foreign fighter entering Iraq to join al Qaeda in Iraq came through Syria. As a targeter, I can tell you that facilitation networks are key: they are the means by which groups such as al Qaeda in Iraq are funded, supplied and sustained. During the Iraq war, Zarqawi's top aides in Syria played a critical role in recruiting, funding and operational planning outside Iraq.


One of the things U.S. officials and the international media should watch for is how al-Nusra uses its terrorist designation: If it seeks to use the declaration to burnish its jihadist credentials, it might be able to bolster the image of the organization in the eyes of the extremist community and parlay that recognition into larger, or steadier, streams of funding—a development that will make the group more viable over the long-term or allow it to expand its operations or influence in the short- to mid-term.


An important differentiator between al Qaeda in Iraq and al-Nusra is one of its tactics: Zarqawi made a practice of indiscriminately killing Iraqi civilians, effectively terrorizing the Iraqi population, especially the Shiite minority. Zarqawi, despite identifying with al Qaeda, had a much thinner theological basis than al Qaeda central.


Key figures at al Qaeda central such as bin Laden and Zawahiri argued with Zarqawi over his tactics, complaining that alienating mainstream Muslims would not help achieve the over-arching goal of instilling Sharia law.


Al-Nusra is using some of the same tactics as al Qaeda in Iraq (e.g., suicide bombings, kidnappings and car bombs), but it appears to be trying to strike a balance Zarqawi was unwilling to make: Not only does it seem to be avoiding alienating—if not antagonizing—the larger population, but it also is providing the people of Syria with a range of goods and services such as food, water and medical care—basic necessities that people need to survive in the best of times, let alone when their country is in the throes of a civil war.


If this becomes a trend, it might signal that al-Nusra aspires to be more like Hezbollah or Hamas, organizations that defy neat categorization based on the range of social, political and military activities they engage in and the resultant legitimacy they have in the eyes of their constituencies.


In the Syrian uprising, the opportunity for meaningful U.S. intervention might have passed: Exhaustion from operations in Iraq and Afghanistan have taken their toll on the U.S. military, have taxed the national treasury, and sapped political will, especially as the state of the economy remains at the center of the debate in Washington.


Our absence from the fight is going to cost us if the al-Assad regime fails, leaving rebel groups like al-Nusra dictating the direction, pace and scope of a new Syria.


Given that managing affairs in the Middle East has never been one of our strong suits, the question at this point should be how can the United States, particularly the Department of State, best engage groups that might be inimical to U.S. values but necessary to our interests in the Middle East? For that, I am not sure there is a clear or simple answer.


One opportunity would be if the United States uses its designation of al-Nusra as both a stick and carrot, cajoling and encouraging it to enter into mainstream politics when (or if) the Assad regime falls.


My read of al-Nusra, however, is that, like Zarqawi, it does not aspire to be a political player and is unlikely to settle for a political role in the new government. Instead, it may aim to play the spoiler for any transitional government and use its resources and political violence to empower and encourage other like-minded extremists. With time and opportunity, al-Nusra could not only add to regional instability in the Middle East, but also rekindle global jihad.



Follow @CNNOpinion on Twitter


Join us at Facebook/CNNOpinion


The opinions expressed in this commentary are solely those of Nada Bakos.






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Bulls Game Day: Lead Bucks at half













Chicago Bulls


Bulls point guard Nate Robinson celebrates after hitting a 3-pointer in the first quarter against the Bucks.
(Chris Sweda/Tribune photo / January 9, 2013)



























































Carlos Boozer is well on his way to his sixth straight double-double with 14 points and seven rebounds and Nate Robinson replaced an injured Kirk Hinrich with 13 points as the Bulls led the Bucks 57-50 at halftime Wednesday night at the United Center.


The Bulls shot 52.1 percent with 16 assists.


Hinrich missed his fifth game of the season, sitting with a right elbow injury.





"The next guy has to step up," coach Tom Thibodeau said. "We have more than enough. We've been down this road before. Nate, Marquis (Teague), everyone has to be ready."


The Bulls are shooting for their first four-game winning streak this season. The last time these two teams played, the Bulls blew a 27-point, third-quarter lead to lose at home on Nov. 26.


"Their dribble penetration is a big concern," Thibodeau said. "Their athletic bigs are a big factor."


Ersan Ilyasova's 11 points led the Bucks, who trailed by as many as 15 in the first quarter.


Hinrich suffered his injury diving for a loose ball during Monday's victory over the Cavaliers.


kcjohnson@tribune.com


Twitter @kcjhoop






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Venezuela's top court endorses Chavez inauguration delay


CARACAS (Reuters) - Venezuela's top court endorsed the postponement of Hugo Chavez's inauguration this week and ruled on Wednesday that the cancer-stricken president and his deputy would continue in their roles, despite a cacophony of opposition complaints.


Critics had argued the 58-year-old's absence from his own swearing-in ceremony on January 10 meant a caretaker president must be appointed. Chavez has not been seen in public nor heard from in almost a month following surgery in Cuba.


"Right now we cannot say when, how or where the president will be sworn in," Supreme Court Chief Judge Luisa Morales told a news conference.


"As president re-elect there is no interruption of performance of duties ... The inauguration can be carried out at a later date before the Supreme Court."


The decision opens the door in theory for Chavez to remain in office for weeks or months more from a Cuban hospital bed - though there is no evidence he is even conscious.


It leaves the South American country in the hands of Vice President Nicolas Maduro, as de facto leader of the government.


The opposition say that is a brazen violation of the constitution, and that Maduro should leave office on Thursday when the current presidential term had been due to expire.


They say National Assembly boss Diosdado Cabello, another powerful Chavez ally, should take over the running of the country while new elections would be organized within 30 days.


Maduro would be the ruling Socialist Party's candidate.


Government leaders insist Chavez, 58, is fulfilling his duties as head of state, even though official medical bulletins say he suffered complications after the surgery, including a severe lung infection, and has had trouble breathing.


His resignation or death would transform politics in the OPEC nation, where he is revered by poor supporters thankful for his social largesse, but denounced by opponents as a dictator.


RALLY PLANNED FOR THURSDAY


Opposition leader Henrique Capriles, who lost a presidential election to Chavez in October, said the Supreme Court had become politicized under the socialist leader's administration.


"The tribunal gave an interpretation (of the constitution) in order to solve a problem that the government has," Capriles told a news conference.


Moody's Investors Service warned on Wednesday that Venezuela's sovereign credit rating, already at junk status, faces short-term risks over any political transition.


Prices of Venezuela's widely traded bonds have soared lately on Chavez's health woes, but dipped this week as investors' expectations of a quick government change apparently faded.


The president has undergone four operations, as well as weeks of chemotherapy and radiation treatment, since being diagnosed with an undisclosed type of cancer in his pelvic area in June 2011.


He looked to have staged a remarkable recovery from the illness last year, winning a new six-year term at a hard-fought election in October. But within weeks of his victory he had to return to Havana for more treatment.


The government has called for a huge rally outside the Miraflores presidential palace in Caracas on Thursday, and allied leaders such as Uruguay's Jose Mujica, Bolivia's Evo Morales and Nicaragua's Daniel Ortega have said they will visit - despite Chavez's absence.


Argentine President Cristina Fernandez, a close friend, has announced plans to visit Chavez in Cuba on Friday.


The unprecedented silence by Chavez, who is well known for his hours-long rambling speeches, has convinced many Venezuelans that his 14 years in power may be coming to an end.


Unlike after his previous operations in Cuba, no photographs have been published of him recuperating, and social media in Venezuela is buzzing with rumors he is on life support.


Cabello, the pugnacious head of the National Assembly, has repeatedly ruled out taking over as caretaker president to order a new presidential election, saying Chavez remains in charge.


"Tomorrow we will all go to the Miraflores palace," he told a televised Socialist Party meeting on Wednesday. "The people will be invested as president. We are all Chavez!"


(Additional reporting by Marianna Parraga, Diego Ore and Enrique Andres Pretel; Editing by Andrew Cawthorne and Eric Walsh)



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Wall Street slips as earnings season gets under way

NEW YORK (Reuters) - Stocks fell on Tuesday, retreating from last week's rally on the "fiscal cliff" deal in Washington, as companies started to report results for the fourth quarter.


After a 4.3 percent jump in the two sessions around the close of the fiscal cliff negotiations, the S&P has declined a bit, with investors finding few catalysts to extend the rally that took the benchmark to five-year highs.


"We had a brief respite, courtesy of what happened on the fiscal cliff deal and the flip of the calendar with new money coming into the market," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.


Shares of AT&T Inc dropped 1.7 percent to $34.35, making it one of the biggest drags on the S&P 500, after the company said it sold more than 10 million smartphones in the quarter.


This figure beat the same quarter in 2011, but also means increased costs for the wireless service provider. Providers like AT&T pay hefty subsidies to handset makers so that they can offer discounts to customers who commit to two-year contracts.


Fourth-quarter profits are expected to beat the previous quarter's lackluster results, but analyst estimates are down sharply from October. Quarterly earnings are expected to grow by 2.7 percent, according to Thomson Reuters data. Dow component Alcoa, the largest U.S. aluminum producer, reported results after the closing bell.


The Dow Jones industrial average <.dji> dropped 55.44 points, or 0.41 percent, to 13,328.85. The Standard & Poor's 500 Index <.spx> fell 4.74 points, or 0.32 percent, to 1,457.15. The Nasdaq Composite Index <.ixic> lost 7.01 points, or 0.23 percent, to 3,091.81.


"The stark reality of uncertainty with regard to earnings, plus the negotiations on the debt ceiling, are there and that doesn't give investors a lot of reason to take bets on the long side," Hellwig said.


With AT&T's fall, the S&P telecom services index <.gspl> was the worst performer of the 10 major S&P sectors, down 2.7 percent.


Sears Holdings shares dropped 6.4 percent to $40.16 a day after the company said Chairman Edward Lampert would take over as CEO from Louis D'Ambrosio, who is stepping down due to a family member's health issue. The U.S. retailer also reported a 1.8 percent decline in quarter-to-date sales at stores open at least a year.


Markets went lower as some of the first reported earnings were weak.


"It doesn't seem to be bouncing back, it might stay here or sell off a little further," said Stephen Carl, head of U.S. equity trading at The Williams Capital Group in New York.


Shares of restaurant-chain operator Yum Brands Inc fell 4.2 percent to $65.04 a day after the KFC parent warned sales in China, its largest market, shrank more than expected in the fourth quarter.


GameStop was one of the worst performers on the S&P 500 as shares slumped 6.3 percent to $23.19 after the video game retailer reported low customer traffic for the holiday season and cut its guidance.


Shares of Monsanto Co gained 2.5 percent to $98.42 after reaching a more than four-year high at $99.99. The world's largest seed company raised its earnings outlook for fiscal year 2013 and posted strong first-quarter results.


Volume was below the 2012 average of 6.42 billion shares traded per day, as 6.19 billion were traded on the New York Stock Exchange, NYSE MKT and Nasdaq.


Declining stocks outnumbered advancing ones on the NYSE by 1,495 to 1,458, while on the Nasdaq decliners beat advancers 1,305 to 1,158.


(Reporting by Gabriel Debenedetti; Editing by Kenneth Barry and Nick Zieminski)



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Redskins' RG3 to have knee surgery


WASHINGTON (AP) — Robert Griffin III is having surgery Wednesday on a torn ligament in his right knee — and to see if there's a second ligament that also needs to be repaired.


Baylor coach Art Briles confirmed to USA Today and The Associated Press on Tuesday night that the Washington Redskins rookie has a torn lateral collateral ligament. He said the surgery also will determine whether Griffin has damaged his ACL in that knee.


A person close to Griffin, speaking on condition of anonymity because the Redskins have not made an announcement, also confirmed the details surrounding Griffin's injury to the AP.


A torn LCL requires a rehabilitation period of several months, possibly extending into training camp and the start of next season. A torn ACL is a more severe injury, typically requiring nine to 12 months of recovery.


Griffin missed most of the 2009 season for Baylor after tearing his ACL in the same knee, getting injured on the game's opening drive against Northwestern State but not leaving until halftime. He recovered to win the Heisman Trophy two years later.


"RG3 will be good as new, though. I know that!" Briles said in a text message to the AP.


Griffin sprained the LCL last month against the Baltimore Ravens and missed one game. He returned wearing a bulky black brace and reinjured the knee at least twice in Sunday's playoff loss to the Seattle Seahawks, prompting a national debate over whether coach Mike Shanahan endangered his franchise player's career by not taking him out of the game sooner.


The Redskins said an MRI taken after the game was inconclusive, so Griffin flew to Florida on Tuesday for a more detailed examination conducted by orthopedist James Andrews. Andrews will perform the surgery Wednesday.


___


AP Sports Writer Stephen Hawkins contributed to this report.


___


Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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At 55.3 Degrees, 2012 Was the Hottest Year in American History






Well if you didn’t believe in climate change before, meteorologists are now saying 2012 saw the highest temperatures ever recorded in the U.S. mainland, displacing a record set 14 years ago. Data collected by the National Oceanic and Atmospheric Administration from 114 weather stations established an average temperature of 55.3 degrees Fahrenheit, a whole degree higher than the previous record in 1998. The NOAA summed up our sweltering, sweaty condition:



The year consisted of the fourth warmest winter, a record warm spring, the second warmest summer, and a warmer-than-average autumn. Although the last four months of 2012 did not bring the same unusual warmth as the first 8 months of the year, the September through December temperatures were warm enough for 2012 to remain the record warmest year, by a wide margin.







The Weather Channel dug into the data and found another impressive number: the 114 weather stations administered by the NOAA recorded 34,008 daily record high temperatures (out of 41,724 daily records total). By comparison, the NOAA recorded just 6,664 record daily lows from the same stations.


RELATED: This Spring Was the Hottest Ever


In other words: global warming is real.


Weather News Headlines – Yahoo! News





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Case of Wall Street greed gone too far




Goldman Sachs CEO Lloyd Blankfein was one of the executives whose stock award was accelerated to beat higher tax rate.




STORY HIGHLIGHTS


  • Goldman Sachs granted $65 million in stock to execs before new tax rates began

  • Susan Antilla says the firm's CEO had endorsed higher rates, called for entitlement cuts

  • She says Goldman benefits from the implicit promise that U.S. will bail it out

  • Antilla: It was unseemly for Goldman to rush the payments to shield execs from new rates




Editor's note: Susan Antilla is a columnist at Bloomberg View and a contributor to TheStreet.com. She has written about finance for more than 30 years. She is author of "Tales From the Boom-Boom Room: The Landmark Legal Battles That Exposed Wall Street's Shocking Culture of Sexual Harassment." Follow her on Twitter @antillaview.


(CNN) -- Nobody likes to pay taxes, so can you blame the good folks at Goldman Sachs & Co. for doing what they could to avoid the higher rates that kicked in on January 1?


While the rest of us were donning our party clothes on New Year's Eve, the legal worker bees at Goldman were pushing the send button on 10 regulatory filings to the Securities and Exchange Commission.


By the time the ball dropped in Times Square, regulators had been notified that $65 million in Goldman stock had been granted a month early, helping a cluster of powerful multimillionaire executives trim their tax tab.


Among the 10 who shared that $65 million, Chief Executive Officer Lloyd Blankfein, Chief Operating Officer Gary Cohn and Chief Financial Officer David Viniar wound up with $8.4 million apiece in Goldman stock.



Susan Antilla

Susan Antilla



Blankfein's compensation in 2011 was $16.2 million. Cohn and Viniar that year made $15.8 million. Even Gordon Gekko would be impressed to see that bosses making that much money were able to catch a tax break for a couple hundred thousand.


The 10 executives who skirted 2013's higher rates were not the only Goldmanites who benefited from the "accelerated" vesting. Michael DuVally, a Goldman spokesman, acknowledged there was "a group larger than" the 10 but declined to say how many. DuVally would not comment on who made the decision to grant the shares early.


The shrewd Goldman move is hardly unique among rich business executives or even 99 percenters of more modest means. It was no secret that higher taxes were coming this year, and taxpayers of all shapes and sizes did what they could to ensure that "tax events" would occur in 2012.



Even environmental activist and Nobel Prize winner Al Gore tried, albeit without success, to unload his Current TV to Al Jazeera before the new year dawned.


What makes the Goldman move distasteful is that it wasn't even two months ago that CEO Blankfein was mouthing off in a Wall Street Journal op-ed that he endorsed tax increases "especially for the wealthiest" -- along with a plug to cut entitlements to all you freeloaders out there.








If you're pushing the position that the rich should pay more to help fix the deficit, it doesn't quite follow to employ a tax dodge, says Dennis Kelleher, president of the Washington-based public interest group Better Markets Inc.


"Goldman's quickie year-end tax shenanigans deprived the government of what it otherwise would get," he says. "So they either cause the debt to go up, or cause others to pay more by the taxes they are avoiding."


DuVally, the Goldman spokesman, declined to comment when I asked whether it was inconsistent for Goldman to make a move for its executives to avoid taxes after Blankfein endorsed increases for the wealthy.


I've got to hand it to Goldman. The firm is a master of the "have-your-cake-and-eat-it-too" brand of politics and public relations. One minute, Goldman is cranking out press releases about its devotion to women entrepreneurs in its philanthropic "10,000 women" program. The next, it is announcing its annual list of new partners that includes a paltry 10 women but 60 men.


Goldman was a victim on the defensive when Greg Smith, a former employee, wrote a New York Times op-ed on March 14, blasting the firm for having "morally bankrupt people" who needed to be weeded out. You could almost feel sorry for poor Goldman, which shipped out a memo reminding employees that their estimable employer had been named one of the best places to work in the United Kingdom only weeks before the London-based Smith's "Why I Am Leaving Goldman Sachs" essay.


By the time Smith published a book seven months later, the firm had turned ruthless revenge-seeker, even sharing parts of Smith's self-evaluations with the media. A "best place to work?" Really? Careful what you say in the press -- and in your HR file -- if you get your paycheck from a Goldman-style operation.


The brouhaha over Smith's op-ed and book stirred up debate of the "What did you expect of an investment bank operating in capitalistic society?" type.


Fair enough. Banks are not in the philanthropy business -- even if they spend as much time as Goldman does talking about its good deeds and famous "business principles." ("Our clients always come first" is famously No. 1 on the list.)


At Goldman and other "too big to fail" banks, though, employees walk through the doors each morning knowing that the rest of us will be forced to bail them out again should another crisis ensue. We taxpayers provide the insurance policy that they enjoy without ever sending us premiums. In October of 2008, Goldman got $10 billion in taxpayer money from the Troubled Asset Relief Program, which it ultimately paid back.


Blankfein, like other bank CEOs, would later make the case that Goldman wasn't "relying on" that government help.


But leaf through the tomes of some of the regulators who lived through the crisis, and you start to wonder whether our tax-dodging heroes might be out of jobs today if the public hadn't fronted a bailout.


From "Bull by the Horns," by former Federal Deposit Insurance Corp. chairman Sheila Bair: Goldman and Morgan Stanley were "teetering on the edge" in the fall of 2008.


From "Bailout: An Inside Account of how Washington Abandoned Main Street While Rescuing Wall Street," by Neil Barofsky, former special inspector general to oversee the Troubled Assets Relief Program: Federal Reserve chairman Ben Bernanke "confided that he believed that Goldman Sachs would have been the next to go" after Morgan Stanley.


We need to change the conversation here.


Goldman and its too-big-to-fail brethren are banks that accepted welfare and are in debt to U.S. taxpayers for averting disaster. This hasn't been about hard-nosed capitalism since those first TARP wire transfers made their way into Goldman Sachs' coffers.


As for the bank's recent tax-reduction maneuver, it's another reminder that Goldman's management is either clueless about how bad it looks or doesn't care. Sometimes bad PR is a just a cost of doing business.


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The opinions expressed in this commentary are solely those of Susan Antilla.






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2 shot in strip mall parking lot on Southwest Side









One man was shot to death and another seriously wounded in the Old Town neighborhood this evening, among at least four people shot since this afternoon in the city, authorities said.


A man, age 31, was shot and a man, age 20, was shot in the back in an attack about 6:15 p.m. in the 1300 block of North Sedgwick Avenue.The 31-year-old was taken to Advocate Illinois Masonic Medical Center, where he was declared dead, said Chicago Police News Affairs Officer Daniel O'Brien, citing preliminary information.


The other victim was taken to Northwestern Memorial Hospital in serious-to-critical condition, said Chicago Fire Department spokesman Chief Joe Roccasalva.





The shooting took place in front of a convenience store, police said.


Earlier, two people were shot and seriously wounded, apparently in the parking lot of a small strip mall on the Southwest Side this afternoon, authorities said.


The shooting took place just after 4 p.m. near 65th Street and Western Avenue, said Chicago Police News Affairs Officer Daniel O'Brien. Photos from the scene showed police checking the pavement of a strip mall on the southwest corner of 65th and Western for shell casings following the shooting.


Two men were wounded in the shooting and both were in serious condition, said Chicago Fire Department spokesman Chief Joe Roccasalva. One was taken to Advocate Christ Medical Center in Oak Lawn for treatment, the other to John H. Stroger Jr. Hospital, he said.


On the scene, one victim was shot in the leg was considered in serious condition, and the other man, age 19, shot in the leg, was considered in good condition, O'Brien said.


Check back for updates.


chicagobreaking@tribune.com


Twitter: @ChicagoBreaking





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Venezuela postpones inauguration for cancer-stricken Chavez


CARACAS (Reuters) - Venezuela will postpone the inauguration of President Hugo Chavez for a new term due to health problems, the government said on Tuesday, another sign the socialist leader's cancer may be bringing an end to his 14 years in power.


The 58-year-old former soldier who has dominated the South American OPEC nation since 1999 has not been heard from since surgery on December 11 in Cuba - his fourth operation since he was diagnosed with an undisclosed type of cancer in June 2011.


The announcement outraged opposition leaders who insist that Chavez must be sworn in before the National Assembly on January 10 as laid out in the constitution, or temporarily step aside and leave an ally in power.


"The commander president wants us to inform that, based on his medical team's recommendations, the post-operative recovery should extend past January 10," said Vice President Nicolas Maduro, Chavez's chosen successor, in a letter read to the legislature.


"As a result, he will not be able to be present at the National Assembly on that date."


The letter said authorities would seek another date for the inauguration ceremony but did not say when it would take place or give a time frame for Chavez's return from Havana.


Rather than being sworn in by the legislature, he would take his oath at a later date before the Supreme Court, the letter said, as allowed by the constitution.


Government leaders insist Chavez is completely fulfilling his duties as head of state, even though official medical bulletins say he has a severe pulmonary infection and has had trouble breathing.


The government has called for a massive rally outside the presidential palace on Thursday, and allied presidents including Uruguay's Jose Mujica and Bolivia's Evo Morales have confirmed they will visit Venezuela this week despite Chavez's absence.


Argentine President Cristina Fernandez has announced plans to visit Chavez in Havana on Friday.


But the unprecedented silence by the president - famous for regularly speaking for hours in meandering broadcasts - has left many convinced he could be in his last days.


His resignation or death would upend politics in the oil-rich nation, where he enjoys a deity-like status among poor supporters thankful for his social largesse.


His critics call him a fledgling dictator who has squandered billions of dollars from crude sales while dashing the independence of state institutions.


CONSTITUTION DISPUTE


The constitution does not specify what happens if the president does not take office on January 10.


The Supreme Court, controlled by Chavez allies, called a news conference for Wednesday. It is widely expected to announce an interpretation of the constitution that will give Chavez leeway to take office when he is fit to do so.


If he dies or steps aside, new elections would be called within 30 days. Before leaving for Havana in December, the president instructed his supporters to back Maduro in that vote if he were unable to continue.


Opposition leaders argue that Congress chief and Chavez ally Diosdado Cabello should take over, as mandated by the constitution if the president's absence is formally declared.


Cabello has ruled that out, saying the president continues to be in charge.


"Who could have believed the opposition would be screaming for Diosdado Cabello to be given the presidency of the republic?" he said during a rambunctious session of Congress. "That's crazy, the opposition is losing it."


Meanwhile opposition deputies accused the Socialist Party of failing to follow Chavez's instructions - a scene that would have been unimaginable before Chavez's prolonged absence.


"President Chavez is the only one among you who has spoken clearly," said opposition leader Julio Borges.


He was drowned out by pro-Chavez deputies clapping and chanting the socialist leader's name and rebuffed by Cabello, who had long been considered a potential successor to Chavez until he was passed over for Maduro.


"It's not my fault you weren't chosen, don't take your frustration out on me," Borges quipped.


Another opposition deputy complained that during the debate a copy of the constitution was thrown across the chamber from the direction of the Socialist Party's deputies.


Chavez's supporters have held near-daily vigils for his recovery, while opposition activists accuse the president's allies of a Cuban-inspired manipulation of the situation.


Maduro has taken over the day-to-day running of the government and looks set to continue in the role past Thursday.


The mustachioed former bus driver lacks Chavez's charisma, but he has sought to imitate the president's style with vituperative attacks on the opposition and televised ribbon-cutting ceremonies.


With the micro-managing Chavez away, major policy decisions in Venezuela, such as a widely expected devaluation of the bolivar currency, appear to be on hold.


Venezuelan bond prices, which had soared in recent weeks on Chavez's health woes, dipped on Monday and Tuesday as investors' expectations of a quick government change apparently dimmed.


"The 'regime change' euphoria seems excessive taking into account the unclear legal transition and perhaps, more importantly, the risk that regime change does not allow for policy change," New York-based Jefferies' managing director Siobhan Morden said in a note on the bonds.


(Editing by Daniel Wallis and Eric Beech)



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Wall Street edges off five-year high, awaits earnings

NEW YORK (Reuters) - Stocks lost ground on Monday, as investors drew back from recent gains that lifted the S&P 500 to a five-year high, in anticipation of sluggish growth in corporate profits.


Shares of financial companies dipped after a group of major U.S. banks agreed to pay a total of $8.5 billion to end a government inquiry into faulty mortgage foreclosures. The KBW bank index <.bkx>, a gauge of U.S. bank stocks, was down 0.3 percent.


Other sectors were hit as well, most notably energy and utilities. The S&P 500 energy sector index <.gspe> fell 0.8 percent and the utilities sector <.gspu> was off 1.1 percent.


The day's decline came a session after the S&P 500 finished at a five-year high, boosted by a budget deal and strong economic data. The S&P 500 rose 4.6 percent last week, the best weekly gain in more than a year.


"It's a little bit of taking some risk off the table ahead of profit season, you're not going to see anything all that great" on earnings, said Larry Peruzzi, senior equity trader at Cabrera Capital Markets Inc in Boston.


Earnings are expected to be only slightly better than the third-quarter's lackluster results, and analysts' current estimates are down sharply from where they were in October. Fourth-quarter earnings growth is expected to come in at 2.8 percent, according to Thomson Reuters data.


Aluminum company Alcoa Inc begins the reporting season by announcing its results after Tuesday's market close. Alcoa shares fell 1.7 percent at $9.10.


The Dow Jones industrial average <.dji> dropped 50.92 points, or 0.38 percent, to 13,384.29. The Standard & Poor's 500 Index <.spx> fell 4.58 points, or 0.31 percent, to 1,461.89. The Nasdaq Composite Index <.ixic> lost 2.84 points, or 0.09 percent, to 3,098.81.


Ten mortgage servicers - including Bank of America , Citigroup , JPMorgan , and Wells Fargo - agreed on Monday to pay $8.5 billion to end a case-by-case review of foreclosures required by U.S. regulators.


In a separate case, Bank of America also announced roughly $11.6 billion of settlements with mortgage finance company Fannie Mae and a $1.8 billion sale of collection rights on home loans.


The bank also entered into agreements with Nationstar Mortgage Holdings and Walter Investment Management to sell about $306 billion of residential mortgage servicing rights.


Bank of America shares lost 0.2 percent at $12.09 while Nationstar Mortgage Holdings jumped 16.8 percent to $38.83.


Citigroup shares were up 0.09 percent to $42.47, and Wells Fargo shares fell 0.5 percent to $34.77.


"The financials probably have the wind behind them now with a lot of the regulations coming out ... the market has to absorb a lot of the gains, and for that reason there's a pullback from this level," said Warren West, principal at Greentree Brokerage Services in Philadelphia.


Shares of U.S. jet maker Boeing Co dropped 2 percent after a Boeing 787 Dreamliner aircraft with no passengers on board caught fire at Boston's Logan International Airport on Monday morning.


Amazon.com shares hit their highest price ever at $269.22 after Morgan Stanley raised is rating on the stock. Shares were up 3.6 percent at $268.46.


Video-streaming service Netflix Inc shares gained 3.4 percent to $99.20 after it said it will carry previous seasons of some popular shows produced by Time Warner's Warner Bros Television.


Walt Disney Co stock fell 2.3 percent to $50.97. The company started an internal cost-cutting review several weeks ago that may include layoffs at its studio and other units, three people with knowledge of the effort told Reuters.


Volume was lower than average, as 4.78 billion shares were traded on the New York Stock Exchange, NYSE MKT and Nasdaq. This is well below the 2012 average of 6.42 billion per session.


Declining stocks outnumbered advancing ones on the NYSE by 1,629 to 1,363, while on the Nasdaq decliners beat advancers 1,438 to 1,066.


(Reporting By Gabriel Debenedetti; Editing by Kenneth Barry and Nick Zieminski)



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Bama starts with bang at BCS championship game


MIAMI GARDENS, Fla. (AP) — Eddie Lacy and No. 2 Alabama bashed No. 1 Notre Dame to start the BCS championship game, scoring touchdowns on its first three drives to take a 21-0 lead one play into the second quarter Monday night.


The Crimson Tide (12-1) marched down the field with ease on the opening drive, going 82 yards on five plays to take a 7-0 lead on Lacy's 20-yard touchdown run up the middle with 12:03 left in the first quarter.


Notre Dame (12-0) had allowed only two rushing touchdowns all season.


Notre Dame did nothing to respond and on its punt back to Alabama, the Crimson Tide might have caught a break. Returner Christion Jones muffed the kick, but Notre Dame was flagged for interfering with the catch, though it was one of Jones' teammates that made contact with him.


Lacy and the Crimson Tide went right back to work, hammering away at Notre Dame's vaunted defense. The Irish struggled to bring down the 220-pound tailback, who even ran through Heisman Trophy finalist Manti Te'o on a screen pass.


Lacy popped another 20-yard run that got the Tide down to the Notre Dame 2. Instead of running into a Notre Dame goal-line defense that has been one of its strengths all season, AJ McCarron faked a handoff and found tight end Michael Williams all alone for the score and a 14-0 lead.


Alabama made it 3 for 3 on the next drive when T.J. Yeldon scored from a yard out on the first play of the second quarter.


The Alabama fans seemed outnumbered at Sun Life Stadium by Fighting Irish followers, but they were making all the noise as the Tide rolled.


Notre Dame had only one first down and had already allowed 203 yards. The Irish defense came in allowing 286 per game.


Lacy had 72 yards on eight carries and McCarron, the MVP of last year's title game against LSU, was 8 for 9 for 112 yards.


Alabama was trying to become the first team to repeat as BCS champions, and to win its third in four seasons.


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Study: Billions of Earth-size planets in Milky Way






LOS ANGELES (AP) — Our Milky Way is home to at least 17 billion planets that are similar in size to Earth, a new estimate suggests. That’s more than two Earth-size planets for every person on the globe.


Just how many are located in the sweet spot where water could exist is “simply too early to call,” said Francois Fressin of the Harvard-Smithsonian Center for Astrophysics, who presented his work at an astronomy meeting Monday.






It’s the first reliable tally of the number of worlds outside the solar system that are the size of Earth, but the hunt for our twin is far from over.


Despite the explosion of exoplanet discoveries in recent years, one find remains elusive: A planet that’s not only the right size but also in the so-called Goldilocks zone where it’s not too hot or too cold for water to be in liquid form on the surface.


The sheer number of Earth-size planets gives astronomers a starting point to narrow down which ones are in the habitable zone.


Fressin and his team came up with their figure by conducting a fresh analysis of data collected by NASA’s Kepler spacecraft, which was launched in 2009 to track down other Earths. They estimated at least one in six stars in the galaxy hosts a planet the size of ours, translating to at least 17 billion Earth-size worlds.


Using a different method, a team from the University of California, Berkeley and University of Hawaii separately came up with a similar estimate. They calculated 17 percent of distant stars have planets that are the same size as Earth or slightly larger.


The findings were presented at the American Astronomical Society in Long Beach, Calif.


Meanwhile, the Kepler spacecraft continues to spot planets as they pass between Earth and the star they orbit. It found 461 new candidate planets, bringing the total to 2,740 potential planets, said mission scientist Christopher Burke at the SETI Institute.


Most of the new Kepler finds were driven by discoveries of Earth-size planets and super-Earths. Four of those are thought to reside in the Goldilocks zone, but more observations are needed.


Fressin said it’s clear that rocky planets abound outside the solar system.


“If you look up on a starry night, each star you’re looking at — almost each one of them — has a planetary system,” Fressin said.


___


Follow Alicia Chang at http://twitter.com/SciWriAlicia


___


Online:


Kepler mission: http://www.nasa.gov/kepler


Science News Headlines – Yahoo! News





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Why Al Jazeera deal doesn't seem right






STORY HIGHLIGHTS


  • Al Gore sold Current to al Jazeera and could net an estimated $70 million

  • Howard Kurtz: Gore's Current network failed to gain an identity or viewers

  • He says it's odd that the former vice president is selling to an oil-rich potentate

  • Kurtz: Al Jazeera may have a tough time getting traction with U.S. viewers




Editor's note: Howard Kurtz is the host of CNN's "Reliable Sources" and is Newsweek's Washington bureau chief. He is also a contributor to the website Daily Download.


(CNN) -- So Al Gore starts a liberal cable network, which turns into a complete and utter flop, then sells it to a Middle East potentate in a deal that will bring him an estimated $70 million.


Is America a great country or what?


There is something highly unusual -- OK, just plain weird -- about a former vice president of the United States doing this deal with the emir of Qatar, Sheikh Hamad bin Khalifa al-Thani.



Howard Kurtz

Howard Kurtz



Al Jazeera, owned by said emir's government, is trying to buy its way into the American television market by purchasing Current TV for a half billion dollars. The only thing stranger would be if Gore had sold Current to Glenn Beck -- oh wait, Beck did try to buy it and was told no way within 15 minutes.


So the sale was in part about ideology, which opens the door to examining why Gore believes Al Jazeera gives "voice to those who are not typically heard" and speaks "truth to power."


Bill O'Reilly, on Fox News, calls the network "anti-American." Fox pundit Dick Morris says Gore has sold to a fount of "anti-Israel propaganda." Such labels are rooted in the network's role during the height of the war on terror, when it aired smuggled videos of Osama bin Laden and was denounced by Bush administration officials.


Watch: How Lance Armstrong lied to me about doping



But Al Jazeera English, the spinoff channel launched in 2006, doesn't have the same reputation. In fact, no less a figure than Secretary of State Hillary Clinton has praised it as "real news," and the channel has won journalism awards for its reporting on the Arab Spring and other global events.


To be sure, the main Al Jazeera network gives a platform to such figures as Yusuf al-Qaradawi. He's the Muslim cleric in Egypt who, The Washington Post gas reported, frequently appears on air to castigate Jews and America and has praised suicide bombings. But when I went to the home page of Al Jazeera English the other day, there was video of David Frost, the acclaimed British journalist who now works for the main network, interviewing Israeli President Shimon Peres.




That's not to say Al Jazeera America, the working name for the new channel, won't have its own biases. Al Jazeera English is sometimes determined to paint the U.S. in a negative light.


During a report on President Barack Obama signing a renewal of the Foreign Intelligence Surveillance Act, which entails a legitimate controversy over civil liberties, the reporter said flatly that the law "violate(s) U.S. constitutional rights in the name of national security."


Watch: Can Al Jazeera make it in the American market?


Dave Marash, the ABC News veteran who once worked for Al Jazeera English, told me the network has a "post-colonial" view of America and its stories can be infused with that attitude.


And there are real questions about how independent these channels are from the Qatar government that helps bankroll them. The director-general of Al Jazeera, Sheikh Ahmed bin Jassim al-Thani, is a member of the country's royal family and has no background in journalism.


Such details add to the odd spectacle of the ex-veep, who would have been running Mideast policy had he won a few more votes in Florida, selling -- and some say selling out -- to the emir. Not to mention that the crusader against climate change is taking petrodollars from an empire built on oil, the bete noire of environmentalists.


Watch: Hey Fox, Hillary Clinton was sick after all


But what is Al Jazeera buying? The network is going to have a tough time cracking the American market.


Its earlier reputation makes the company highly controversial, and other cable carriers might follow the lead of Time Warner Cable (which is no longer owned by CNN's parent company, Time Warner) in refusing to carry it. These carriers agreed to air Current TV, after all, and contracts generally require them to approve a major change in programming.


Global politics aside, it may just be bad business. There's a reason Al Jazeera English, which will supply 40% of the content to the new channel, has barely gotten a foothold in the United States. Most Americans aren't lusting for a steady diet of international news.


Watch: Did Nancy Pelosi go too far in photoshopping picture of congresswomen?


There's no denying that Gore, a onetime newspaper reporter who had testy relations with the press during his 2000 campaign, presided over a lousy cable channel. No one quite knew what Current was during the years when it aired mostly low-rent entertainment fare and was famous mainly for North Korea taking two of its correspondents, including Lisa Ling's sister Laura, into custody.


Then Gore tried to relaunch it as a talking head channel to the left of MSNBC, hiring Keith Olbermann -- a relationship that ended with his firing and mutual lawsuits -- along with the likes of Eliot Spitzer and Jennifer Granholm, former Michigan governor. Gore himself offered commentary during major political events.


It was the utter failure of that incarnation of Current that prompted Gore and co-founder Joel Hyatt to put the thing up for sale.


Some detractors have slammed Gore for hypocrisy because, while he has advocated higher taxes on the rich, he tried to get the Al Jazeera deal done by December 31 to avoid the Obama tax hike. (The sale didn't close until January 2.) I don't see a problem trying to legally take advantage of changes in the tax code, no matter what your political stance.


Nor do I want to prejudge Al Jazeera America. The marketplace will decide its fate.


But there is something unsettling about Gore making off with such a big payday from a government-subsidized channel after making such bad television. Nice work if you can get it.


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The opinions expressed in this commentary are solely those of Howard Kurtz.






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Asian shares steady, Basel ruling supports banks


SINGAPORE (Reuters) - Asian shares outside Japan edged up on Monday, supported by data showing the U.S. economy continuing on a path of slow but steady recovery that had pushed Wall Street stocks to a five-year high.


Financial stocks were underpinned by a decision from global regulators on Sunday to give banks four more years and greater flexibility to build up cash buffers so they can use some of their reserves to help struggling economies grow.


MSCI's broadest index of Asia Pacific shares outside Japan <.miapj0000pus> gained 0.1 percent, but Tokyo's Nikkei share average <.n225> retreated after touching a 23-month high in early trade and last stood down 0.4 percent. <.t/>


The MSCI benchmark's financial sector sub-index <.miapjfn00pus> gained 0.2 percent after the Basel Committee of banking supervisors agreed at the weekend to a relaxation of a draconian earlier draft of new global bank liquidity rules.


Shares in Japanese exporters were supported by a weaker yen, which was steady around 88.17 to the dollar, after the U.S. currency rose as far as 88.40 yen, its highest in nearly two-and-a-half years, on Friday.


The dollar ticked up slightly against the euro, which traded around $1.3060.


The U.S. benchmark S&P 500 index <.spx> closed at its highest level since December 2007 on Friday after data showed a steady pace of jobs growth and brisk expansion of the services sector in the world's biggest economy.


(Reporting by Alex Richardson; Editing by Eric Meijer)



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RG3 hurt, Seattle tops Redskins 24-14 in playoffs


LANDOVER, Md. (AP) — Russell Wilson raced ahead to throw the final block on Marshawn Lynch's go-ahead touchdown run, and the Seattle Seahawks finally had a victorious road show.


Robert Griffin III's knee buckled as he tried to field a bad shotgun snap, leaving the Washington Redskins an offseason to worry about their franchise player's health.


The last rookie quarterback standing in the NFL playoffs is Wilson — the third-round pick who teamed with Lynch on Sunday to lead the Seahawks to a 24-14 victory over the Griffin and the Redskins.


Lynch ran for 132 yards, and Wilson completed 15 of 26 passes for 187 yards and ran eight times for 67 yards for the Seahawks, who overcame a 14-0 first-quarter hole — their biggest deficit of the season — and will visit the top-seeded Atlanta Falcons next Sunday.


"It was only two touchdowns, but it's still a big comeback and in this setting and the crowd, it's a marvelous statement about the guys resolve and what is going on," Seattle coach Pete Carroll said. "It's not about how you start but how you finish."


Seattle will be riding a six-game winning streak, having left behind any doubts that the team can hold its own outside the Pacific Northwest. The Seahawks were 3-5 on the road in the regular season and had lost eight straight road playoff games, the last win coming in December 1983 against the Miami Dolphins.


The day began with three rookie quarterbacks in the playoffs, but No. 1 overall pick Andrew Luck was eliminated when the Indianapolis Colts lost 24-9 to the Baltimore Ravens earlier in the day.


Lynch's change-of-direction, 27-yard touchdown run — with Wilson leading the way with a block on safety Madieu Williams near the goal line — and a 2-point conversion gave the Seahawks a 21-14 lead with 7:08 remaining.


"Marshawn always tells me, 'Russ, I got your back, no matter what,'" Wilson said. "So I just try to help him out every cone in a while when he gets downfield."


Then came the play that essentially put the outcome to rest.


On the second play of the Redskins' next possession, Griffin's heavily braced right knee buckled badly as he tried to field a bad shotgun snap on a second-and-22 at Washington's 12-yard line. He lay on the ground, unable to recover the ball as the Seahawks pounced on it.


Griffin walked off the field under his own power, but the Redskins announced he would not return. After a few minutes, Griffin walked back to the sideline and watched the end of the game. The extent of the injury was not immediately known.


Griffin was playing in his third game since spraining his right knee about a month ago against the Baltimore Ravens, and he had been looking gimpy since tumbling backward following an ill-advised sidearm throw in the first quarter.


Nevertheless, he stayed in the game. Redskins coach Mike Shanahan said he didn't pull Griffin because the quarterback wanted to continue.


"I think I did put myself at more risk," Griffin said. "But every time you get on the field, you're putting yourself on the line."


Griffin was scheduled for an MRI to determine the extent of the injury.


Having recovered the fumble, the Seahawks kicked a short field goal to give them the insurance they needed. Fellow rookie Kirk Cousins, subbing for Griffin, was unable to rally the Redskins in the final minutes.


Griffin, the No. 2 overall pick and last year's Heisman Trophy winner who set several rookie quarterback record this year, finished 10 for 19 for 84 yards with two touchdowns and one interception. He also had five carries for 21 yards, including a laboring 9-yard run that made him look 32 years old instead of 22.


The loss ended a seven-game winning streak for the Redskins, who recovered from a 3-6 start to win the NFC East.


The Redskins opened the game threatening to make a mockery of the NFL's top scoring defense. Simple toss-to-the-right stretch plays netted 8, 9 and 18 yards for Alfred Morris in an 80-yard drive, and tight end Logan Paulsen barreled into linebacker Malcolm Smith after a catch to highlight a 54-yard drive.


Both possessions ended with 4-yard touchdown passes: one to Evan Royster for his first NFL TD catch and the other to Paulsen. The Redskins led 14-0 in the first quarter against a team that allowed a season-low 15.3 per game in the regular season, but Griffin had tweaked the knee on that second drive.


The Seahawks responded by getting Lynch involved more and scoring on three consecutive drives to pulled within a point at halftime. Steven Hauschka, who injured his left ankle during the first half and had to relinquish kickoff duties, nevertheless sandwiched field goals of 32 and 29 yards around a 4-yard touchdown pass from Wilson to Michael Robinson.


The Seahawks were poised to take the lead on the opening drive of the second half, moving the ball to 1-yard line with a pair of nice runs by Lynch and a leaping catch by Golden Tate.


But Lynch fumbled on second-and-goal from the 1, the ball popped loose and was recovered by defensive lineman Jarvis Jenkins. Then, on their next drive, the Seahawks drove to Washington's 28 before a sack forced a punt — rather than a long field goal attempt by an injured kicker.


With the Redskins' offense struggling, however, the Seahawks had more chances to take the lead — and finally did on the 79-yard drive capped by Lynch's touchdown run.


The playoff meeting between the two teams was the third, but first outside Seattle. The Seahawks won 20-10 in January 2006, and 35-14 in January 2008. Those were the last two postseason games played by the Redskins.


Seattle had outscored opponents 193-60 in its final five games of the regular season. But they were 3-5 on the road and had lost eight straight road playoff games. Their only road playoff win came in their first postseason road game, Dec. 31, 1983, at Miami.


And now they have another.


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Follow Joseph White on Twitter: http://twitter.com/JGWhiteAP


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