Karzai's U.S. visit a time for tough talk




The last time Presidents Obama and Karzai met was in May in Kabul, when they signed a pact regarding U.S. troop withdrawal.




STORY HIGHLIGHTS


  • Afghan President Karzai meeting with President Obama in Washington this week

  • Felbab-Brown: Afghan politics are corrupt; army not ready for 2014 troop pullout

  • She says Taliban, insurgents, splintered army, corrupt officials are all jockeying for power

  • U.S. needs to commit to helping Afghan security, she says, and insist corruption be wiped out




Editor's note: Vanda Felbab-Brown is a senior fellow in foreign policy at the Brookings Institution. Her latest book is "Aspiration and Ambivalence: Strategies and Realities of Counterinsurgency and State-Building in Afghanistan."


(CNN) -- Afghan President Hamid Karzai is meeting this week with President Obama in Washington amid increasing ambivalence in the United States about what to do about the war in Afghanistan.


Americans are tired of the war. Too much blood and treasure has been spent. The White House is grappling with troop numbers for 2013 and with the nature and scope of any U.S. mission after 2014. With the persisting corruption and poor governance of the Afghan government and Karzai's fear that the United States is preparing to abandon him, the relationship between Kabul and Washington has steadily deteriorated.


As the United States radically reduces its mission in Afghanistan, it will leave behind a stalled and perilous security situation and a likely severe economic downturn. Many Afghans expect a collapse into civil war, and few see their political system as legitimate.


Karzai and Obama face thorny issues such as the stalled negotiations with the Taliban. Recently, Kabul has persuaded Pakistan to release some Taliban prisoners to jump-start the negotiations, relegating the United States to the back seat. Much to the displeasure of the International Security Assistance Force, the Afghan government also plans to release several hundred Taliban-linked prisoners, although any real momentum in the negotiations is yet to take place.


U.S. may remove all triips from Afghanistan after 2014



Vanda Felbab-Brown

Vanda Felbab-Brown



Washington needs to be careful that negotiations are structured in a way that enhances Afghanistan's stability and is not merely a fig leaf for U.S. and NATO troop departure. Countering terrorism will be an important U.S. interest after 2014. The Taliban may have soured on al Qaeda, but fully breaking with the terror group is not in the Taliban's best interest. If negotiations give the insurgents de facto control of parts of the country, the Taliban will at best play it both ways: with the jihadists and with the United States.


Negotiations of a status-of-forces agreement after 2014 will also be on the table between Karzai and Obama. Immunity of U.S. soldiers from Afghan prosecution and control over detainees previously have been major sticking points, and any Afghan release of Taliban-linked prisoners will complicate that discussion.










Karzai has seemed determined to secure commitments from Washington to deliver military enablers until Afghan support forces have built up. The Afghan National Security Forces have improved but cannot function without international enablers -- in areas such as air support, medevac, intelligence and logistical assets and maintenance -- for several years to come. But Washington has signaled that it is contemplating very small troop levels after 2014, as low as 3,000. CNN reports that withdrawing all troops might even be considered.


Everyone is hedging their bets in light of the transition uncertainties and the real possibility of a major security meltdown after 2014. Afghan army commanders are leaking intelligence and weapons to insurgents; Afghan families are sending one son to join the army, one to the Taliban and one to the local warlord's militia.


With Afghan president's visit, nations' post-2014 future takes shape


Patronage networks pervade the Afghan forces, and a crucial question is whether they can avoid splintering along ethnic and patronage lines after 2014. If security forces do fall apart, the chances of Taliban control of large portions of the country and a civil war are much greater. Obama can use the summit to announce concrete measures -- such as providing enablers -- to demonstrate U.S. commitment to heading off a security meltdown. The United States and international security forces also need to strongly focus on countering the rifts within the Afghan army.


Assisting the Afghan army after 2014 is important. But even with better security, it is doubtful that Afghanistan can be stable without improvements in its government.


Afghanistan's political system is preoccupied with the 2014 elections. Corruption, serious crime, land theft and other usurpation of resources, nepotism, a lack of rule of law and exclusionary patronage networks afflict governance. Afghans crave accountability and justice and resent the current mafia-like rule. Whether the 2014 elections will usher in better leaders or trigger violent conflict is another huge question mark.


Emphasizing good governance, not sacrificing it to short-term military expediencies by embracing thuggish government officials, is as important as leaving Afghanistan in a measured and unrushed way -- one that doesn't jeopardize the fledgling institutional and security capacity that the country has managed to build up.


U.S. likely to keep thousands of troops in Afghanistan after NATO forces leave


Karzai has been deaf and blind to the reality that reducing corruption, improving governance and allowing for a more pluralistic political system are essential for Afghanistan's stability. His visit provides an opportunity to deliver the message again -- and strongly.


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The opinions in this commentary are solely those of Vanda Felbab-Brown.






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5 years in prison for Palatine huffing crash









A Palatine woman who “huffed” fumes from a cleaning product while driving and seriously injured two people after she passed out and struck another car was sentenced to 5 years in prison this morning.

Karli Casey, 20, pleaded guilty at the Rolling Meadows branch of Cook County Circuit to aggravated driving under the influence of intoxicating compounds, a special Class 4 felony.

“I want to apologize to the families of the victims,” Casey told the court. “I’m sorry.”

Judge Ellen Beth Mandeltort told Casey she would have to serve 85 percent of the sentence, minus the 257 days she has been in jail since the April 28, 2012 crash in Palatine. Casey could have received up to 12 years in prison, Mandeltort said.

The charges against her were upgraded after blood tests found that she also had codeine, heroin and cocaine in her system, prosecutors said.

Casey, of the 300 block of North Benton Street, inhaled the fumes from a can of “Dust Off” while driving at night on Northwest Highway near First Bank Drive, said Assistant State’s Atty. Mike Gerber.

In another high-profile “huffing” case, Carly Rousso, 18, of Highland Park, has pleaded not guilty to the same type of DUI charge after investigators alleged she inhaled fumes from a cleaning product before crashing into a mother walking with her children in Highland Park on Labor Day, killing a 5-year-old girl.

Gerber said Casey passed out, crossed the lanes of traffic and struck the other vehicle head-on, causing her car to flip onto its roof. The crash injured the two passengers in her car and an 84-year-old woman and her son in the other car. The elderly woman was critically hurt and spent several months in the hospital, Gerber said.

She now needs 24-hour care, Gerber said. Her son also was hospitalized with fractured ribs and was released after treatment, he said.

One of the passengers in Casey's car suffered a lacerated spleen and fractured pelvis, among other injuries, Gerber said.

Casey was taken to Northwest Memorial Hospital where she regained consciousness and told investigators she had inhaled from the Dust Off can and passed out, Gerber said.

He said Dust Off is compressed air used to clean computers and other devices.

Casey has been in a special drug treatment program in Cook County jail and her attorney, Wayne Brucar, asked Mandeltort to recommend that she receive treatment while in prison. Mandeltort agreed to the request.

Friends and family seated in the gallery told her they loved her as deputies stood on either side of her.

“I love you, too,” she replied, weeping as she was led from the courtroom.

Neither family commented following the hearing.

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Venezuela 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


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 dimmed.


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 including Uruguay's Jose Mujica and Bolivia's Evo Morales 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 and Diego Ore; Editing by Andrew Cawthorne)



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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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Saban quickly turns to challenges of 2013 season


FORT LAUDERDALE, Fla. (AP) — It's becoming a familiar January scene for Nick Saban.


The Alabama coach plastered a smile on his face for a series of posed photos next to the various trophies awarded to college football's national champions and then proceeded to talk about the challenges facing his team.


Maybe Saban let the Gatorade dry from the celebratory drenching before thinking about the 2013 season. Maybe.


"The team next year is 0-0," Saban, who is on a 61-7 run over the past five seasons, said Tuesday morning. "Even though I really appreciate what this team accomplished and am very, very proud of what they accomplished, we need to prepare for the challenges of the new season very quickly with the team we have coming back. "


It didn't take Saban long to refocus after Monday night's 42-14 demolition of Notre Dame that secured a second straight BCS title, the Crimson Tide's third in four seasons and the seventh straight for Southeastern Conference teams.


Shortly after the game, he was already talking about getting back to the office by Wednesday morning.


Alabama players, meanwhile, finally were able to voice the "D-word." Center Barrett Jones said he had a Sports Illustrated cover from a couple of years ago after his last college game.


"It says, 'Dynasty. Can anybody stop Alabama?' I'll never forget looking at that thing and wondering if we really could be a dynasty," said Jones, who mainly put it on the wall because he's featured. "I think three out of four, I'm no dynasty expert, but that seems like a dynasty to me. I guess I can say that now that I'm gone. Don't tell coach I said that."


The 2013 team will almost certainly be regarded among the preseason favorites to get back to the summit, even though three Tide stars — tailback Eddie Lacy, cornerback Dee Milliner and right tackle D.J. Fluker — could decide to skip their senior seasons and turn pro.


Saban also emphatically tried to end speculation that he might return to the NFL, where he spent two years with the Miami Dolphins before returning to the SEC.


It was a question that really made him bristle during the 30-plus minute news conference.


"How many times do you think I've been asked to put it to rest?" Saban said. "And I've put it to rest, and you continue to ask it. So I'm going to say it today, that — you know, I think somewhere along the line you've got to choose. You learn a lot from the experiences of what you've done in the past. I came to the Miami Dolphins, what, eight years ago for the best owner, the best person that I've ever had the opportunity to work for. And in the two years that I was here, I had a very, very difficult time thinking that I could impact the organization in the way that I wanted to or the way that I was able to in college, and it was very difficult for me."


He said that experience taught him that the college ranks "is where I belong, and I'm really happy and at peace with all that."


As for the players, All-America linebacker C.J. Mosley has already said he'll return. So has quarterback AJ McCarron, who had his second straight star turn in a BCS title game.


"We certainly have to build the team around him," Saban said, adding that a late-game spat with Jones showed the quarterback's competitive fire. "I've talked a lot about it's difficult to play quarterback when you don't have good players around you. I think we should have, God willing and everybody staying healthy, a pretty good receiver corps. We'll have to do some rebuilding in the offensive line. Regardless of what Eddie decides to do, we'll probably still have some pretty decent runners. But I think AJ can be a really good player, maybe the best quarterback in the country next year."


The biggest question mark is replacing three, maybe four, starters on an offensive line that paved the way.


Amari Cooper, who broke several of Julio Jones' Alabama freshman receiving marks, and fellow freshman running back T.J. Yeldon give McCarron and the Tide a couple of potent weapons, even if Lacy doesn't return.


"I am going to try to win three or four," said Cooper, who had 105 yards and two touchdowns in the title game. "This season was good, but I expected it to be even more. There is so much more that I can do."


Saban emphasized the difficulty of repeating and said he showed the players a video of NBA Hall of Famer Michael Jordan saying that the first title isn't the hardest — it's the ones after that.


That's because, Saban said, "you have to have the will to fight against yourself."


Now, the 'Bama coach has four titles, including one during his stop at LSU. Saban doesn't wear the championship rings but uses them for a different purpose.


"I just put them on the coffee table for the recruits to look at," he said, cracking up the room.


Saban has already lined up another highly rated recruiting class and has the next wave of young talents waiting in the wings.


After all, he talked about the sign mentor Bill Belichick hung in the football building during their NFL days together: "Do your job."


Saban jokingly acknowledged that while he prepares for everything, the one thing he has never been able to anticipate is the Gatorade bath. He drew heat for a scowl after the first one, following the title game win over Texas when he got dinged in the head. Monday night's dousing went better.


"It's cold, it's sticky, but I appreciated not getting hit in the head with the bucket," Saban said. "That was an improvement."


No program has had this kind of championship run since Tom Osborne's Nebraska teams won it all in 1994, 1995 and 1997.


Saban remembers that second team well. The Cornuskers stomped Michigan State 50-10 in Saban's first game as head coach.


"I'm thinking, we're never going to win a game," Saban said. "We'll never win a game here at Michigan State. I must have taken a bad job, wrong job, no players, something. I remember Coach Osborne when we shook hands after the game, he put his arm around me and whispered in my ear, 'You're not really as bad as you think.'"


So take heart, college football.


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Iran faces oil revenue problem









By John Defterios, CNN


January 8, 2013 -- Updated 1535 GMT (2335 HKT)







With elections in June, it remains unclear how energy policy will evolve after President Mahmoud Ahmadinejad's era




STORY HIGHLIGHTS


  • The IEA has suggested Iraq surpassed Iran in output for the first time in over 20 years

  • The Iranian people are faced with spiralling inflation and job layoffs within the state sector

  • Iranian oil revenues in the country plummeted 40 percent, while gas export revenues fell by 45%




Editor's note: John Defterios is CNN's Emerging Markets Editor and anchor of Global Exchange, CNN's prime time business show focused on the emerging and BRIC markets. You can watch it on CNN International at 1600 GMT, Sunday to Thursday.


Abu Dhabi (CNN) -- All indications are that sanctions against Iran are really starting to bite and this time it is coming from the oil ministry in Tehran, which for months has denied that oil production was suffering due to international pressure.


In an interview with the Iranian Student News Agency (ISNA), Gholam Reza Kateb a member of the national planning and budget committee in Parliament referenced a report from Iran's oil minister Rostam Qasemi. In that report, the minister suggested that oil revenues in the country plummeted 40 percent, while gas and gas products' export revenues fell by 45% compared to the same period last year.


Read more: Official: Iran, nuclear watchdog group deal close


This is a hot button issue in Iran, where the currency due to sanctions has dropped 80 percent from its peak in 2011. The Iranian people are faced with spiralling inflation and job layoffs within the state sector.


I spoke with a source in Iran's representative office to OPEC who declined to comment and referred all matters to the Oil Ministry. A spokesman at the state oil company Iran Petroleum would only say "in this political climate it is difficult to confirm these statements."


Read more: Iran steps up uranium enrichment, U.N. report says


Hours later, a spokesman from the Ministry told another Iranian news agency, Mehr, that the numbers quoted about revenue and production drops are not true, although he offered no specific numbers.


Until this report to the Iranian Parliament, Minister Qasemi has maintained that Iran's production was hovering around four million barrels a day, where it was two years ago.


Read more: Opinion: Time to defuse Iranian nuclear issue




Back at the OPEC Seminar in June 2012, the minister told me that sanctions would not have any influence on plans to expand production and investment, shrugging off questions that suggested otherwise. This despite analysis to the contrary from the Paris based International Energy Agency and Vienna based OPEC of which Iran is a member.




The IEA back in July suggested that Iraq surpassed Iran in production for the first time in over two decades and production in Iran dipped to 2.9 million barrels a day. OPEC in its October 2012 survey said it slipped to 2.72 million at the time Minister Qasemi said output remained at 4 million barrels.




Minister Qasemi was recently quoted at a conference in Tehran that Iran needs to invest $400 billion over the next five years to maintain production targets and to play catch up after years of under investment.


Iran is a land full of potential. According to the annual BP Statistical Review, Iran sits on nearly 10 percent of the world's proven reserves at 137 billion barrels. The South Pars field which it shares with Qatar is one of the largest natural gas fields in the world -- but Iran, due to sanctions, cannot expand development.


This is a highly charged period. With elections in mid-June, it remains unclear how energy policy will evolve after the era of President Mahmoud Ahmadinejad passes. It has been eight years of his tough line against Washington, Brussels and other governments that put forth sanctions against Iran. It is not clear if a new President will usher in a new nuclear development policy to ease the pressure on Iran's energy sector and the country's people.












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NTSB says damage to Dreamliner in fire 'severe'









The National Transportation Safety Board said Tuesday that the battery aboard a Japan Airlines Co. 787 jet that caught fire in Boston Monday had "severe fire damage"  to components and structures within about 20 inches.

The agency said the problems were in the aft electrical bay of the Boeing Co. jet, and affected the auxiliary power unit, which was in operation at the time of the fire reported around 10:30 am ET Monday.






The incident occurred just after the plane landed from a flight from Tokyo. Smoke was seen in the cabin, the NTSB said. The fire was put out about 40 minutes rescue and fire crews first arrived, it added.

A second incident, a fuel leak on Tuesday, forced another 787 operated by JAL to cancel its takeoff and return to the gate at Boston's Logan International Airport, a fire official said.

The leak occurred on a different plane than the 787 that experienced an electrical fire Monday at Logan, said Richard Walsh, a Massport spokesman.

The fuel-leaking plane had left the gate in preparation for takeoff on a flight to Tokyo when the fuel spill of about 40 gallons was discovered, Walsh said. No fire or injuries occurred, he said.

The plane was towed back to the gate, where passengers disembarked and were waiting for a decision on whether the flight would leave, he said.

"The airline will make that determination," Walsh said.

A spokeswoman for Japan Airlines, Carol Anderson, said the plane had returned to the gate because of a mechanical issue, but said exact details were not yet confirmed.

Boeing said it was aware of the issue and was working with its customer.

The NTSB this issue wouldn't warrant an investigation because there was no accident.

In December, the Federal Aviation Administration ordered inspections of 787s after fuel leaks were found on two aircraft operated by foreign airlines. The leaks stemmed from incorrectly assembled fuel line couplings, which could result in loss of power or engine fire, the FAA said.

Boeing shares fell 2.6 percent, to close at $74.13 Tuesday. It lost 2 percent on Monday.

Walsh, the Massport spokesman, said the leak was noticed at 12:25 pm ET Tuesday, as the flight, JAL 007, was taxiing toward the runway for takeoff. Crews used an absorbent to soak up the spilled fuel, Walsh said.

Some analysts had raised concerns about Boeing's jet after the JAL 787 suffered an electrical fire on Monday. Today's fuel leak caused further alarm about the impact on public perceptions of Boeing and the plane.

"We're getting to a tipping point where they go from needing to rectify problems to doing major damage control to the image of the company and the plane," said Richard Aboulafia, a defense and aerospace analyst with Teal Group, a consulting firm based in Fairfax, Virginia.

"While they delivered a large and unexpected number of 787s last year, it's possible that they should have instead focused on identifying glitches and flaws, rather than pushing ahead with volume production," he said.

Aboulafia said there is still no indication that the plane itself is flawed.

"It's just a question of how quickly they can get all the onboard technologies right, and whether or not the 787 and Boeing brands will be badly damaged," he said.
 

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U.S. does not rule out complete pullout from Afghanistan after 2014


WASHINGTON (Reuters) - The Obama administration does not rule out a complete withdrawal of U.S. troops from Afghanistan after 2014, the White House said on Tuesday, just days before President Barack Obama is due to meet Afghan President Hamid Karzai.


The comments by U.S. Deputy National Security Adviser Ben Rhodes were the first signal that, despite initial recommendations by the top military commander in Afghanistan to keep as many as 15,000 troops in the country, the final decision may be to remove everyone, as happened in Iraq in 2011.


Asked about consideration of a so-called zero-option once the NATO combat mission ends at the end of 2014, Rhodes said: "That would be an option that we would consider."


"Because again, the president does not view these negotiations as having a goal of keeping U.S. troops in Afghanistan," he added, saying the objective was to ensure the training and equipping of Afghan forces and combating al Qaeda.


Rhodes, lowering expectations of any breakthrough in the talks with Karzai at the White House on Friday, said it would be months before a final decision is made on troop levels.


In Iraq, Obama decided to pull out all U.S. forces after failing in negotiations with the Iraqi government to secure immunity for any U.S. troops who would remain behind.


The Obama administration is also insisting on immunity for any U.S. troops that remain in Afghanistan, and that unsettled question will figure in this week's talks between Obama and Karzai and their aides.


Jeffrey Dressler, an Afghanistan expert at the Washington-based Institute for the Study of War who favors keeping a larger presence in Afghanistan, questioned what battlefield conditions would allow for a complete U.S. pullout.


"I can't tell that they're doing that as a negotiating position ... or if it is a no-kidding option," Dressler said. "If you ask me, I don't see how zero troops is in the national security interest of the United States."


U.S. officials have said privately that the White House had asked for options to be developed for keeping between 3,000 and 9,000 troops in the country, a lower range than was put forward initially by General John Allen, the top U.S. and NATO commander in Afghanistan.


Allen suggested keeping between 6,000 and 15,000 troops in Afghanistan.


(Reporting By Matt Spetalnick and Phil Stewart; Editing by 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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Redskins' RG3 to have more tests on ACL


ASHBURN, Va. (AP) — Robert Griffin III will get more tests on his injured right knee after an MRI proved inconclusive because of a previous ACL tear.


Washington Redskins coach Mike Shanahan said Monday that the rookie quarterback will travel Tuesday to see orthopedist James Andrews for more examinations.


Griffin tore his ACL while playing at Baylor in 2009, and Shanahan said sometimes an old injury can cloud the results of an MRI.


If Griffin has torn the ACL again, he would likely require a rehabilitation period of nine to 12 months, putting his status for next season in jeopardy.


Griffin reinjured his knee twice in Sunday's playoff loss to Seattle.


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Mock Mars trek finds down-to-Earth sleep woes






WASHINGTON (AP) — Astronauts have a down-to-Earth problem that could be even worse on a long trip to Mars: They can’t get enough sleep. And over time, the lack of slumber can turn intrepid space travelers into drowsy couch potatoes, a new study shows.


In a novel experiment, six volunteers were confined in a cramped mock spaceship in Moscow to simulate a 17-month voyage. It made most of the would-be spacemen lethargic, much like birds and bears heading into winter, gearing up for hibernation.






The men went into a prolonged funk. Four had considerable trouble sleeping, with one having minor problems and the sixth mostly unaffected. Some had depression issues. Sometimes, a few of the men squirreled themselves away into the most private nooks they could find. They didn’t move much. They avoided crucial exercise.


“This looks like something you see in birds in the winter,” said lead author David Dinges, a sleep expert at the University of Pennsylvania School of Medicine.


The experiment was run and funded by Russian and European space agencies. A report on the simulation’s effect on the men was published online Monday in the journal Proceedings of the National Academy of Sciences.


Dinges said scientists can’t tell if the men’s lethargy was just lack of sleep or was also caused by other factors: the close quarters, lack of privacy with so many cameras or being away from their families for so long.


It’s a problem that has to be fixed — and can be — before astronauts are sent to Mars, as President Barack Obama proposes for the mid-2030s, Dinges said. The trip to Mars, Earth’s closest neighbor, would take about six months each way.


The world record for continuous time in space — 14 months — is held by Dr. Valery Polyakov, who was on the Russian space station Mir in 1994 and 1995. American astronaut Scott Kelly and Russian cosmonaut Mikhail Kornienko are scheduled to spend an entire year in space on the International Space Station, starting in 2015.


When leaving confinement in November 2011, the six volunteers — three Russians, a Frenchman, an Italian-Colombian and a Chinese — called their experience successful: “We can go forward and now plan to go to Mars and move confidently,” said volunteer Romain Charles of France.


The data scientists collected wasn’t as rosy. Devices on the volunteers’ wrists measured their movements and showed that when they were asleep and awake they were moving much less than they should have been, an unexpected and disturbing finding, Dinges said.


One of the six volunteers — who were paid $ 100,000 to live in the mock spaceship with limited and time-delayed contact with the outside world — slept nearly half an hour less each night than he did when he started the mission, affecting how he went about his day, Dinges said.


The loss of sleep matters because astronauts will have to perform intricate tasks on the way to Mars and while on the red planet. And they have to do vigorous exercises daily to fight the toll that near-zero gravity takes on the bones and other parts of the body. And most of the volunteers weren’t doing that.


The Moscow study, based on the ground, couldn’t take into account the added difficulty of near-zero gravity.


Former astronaut Michael Lopez-Alegria, who holds the American record for longest space mission, said he could relate to the study findings. During his 215 days in orbit on the space station, he sometimes had trouble getting back to sleep because he didn’t have a sense of lying down or having his head on a pillow.


The lack of sleep and lots of work caused him to sometimes nod off during the day, and the lack of gravity meant that when he fell asleep accidentally he would float away and awaken elsewhere in the station, he said.


“”It happened more than once, but I never thought it was a big deal. I thought it was amusing in a way,” Lopez-Alegria said in an interview.


Excerpts from astronaut diaries in a NASA report show prevalent sleep problems, with space station residents talking about nodding off while typing and obsessing over getting too much or too little sleep.


“I just need sleep,” one unidentified astronaut wrote.


“The morning started disastrously. I slept through two (wake-up) alarms… My body apparently went on strike for better working conditions,” wrote another.


Jerry Linenger, a medical doctor and NASA astronaut who spent more than four months on the Russian space station Mir in 1997, said he watched cosmonauts fall asleep in mid-conversation. And after a couple months, Linenger started having sleep problems despite his best efforts, which included using eye shades and bungee cords to put pressure on his body.


“It’s kind of like you’re wiped out after New Year’s Eve, kind of like a hangover or something,” Linenger said. “You are aware you’re not performing. So I’d be extra careful if I had to switch some buttons.”


Later in 1997, a cosmonaut on Mir who had a sleepless night accidentally disconnected a system that gathered solar power for the aging station, said Charles Czeisler, a sleep professor and space researcher at Harvard Medical School.


Czeisler, who wasn’t part of the Dinges study, said the new work was important in demonstrating the challenges of a Mars mission.


Astronauts do use sleeping pills to help them sleep.


And one solution experts like Dinges and Czeisler agree on is lighting. Blue evening light is essential for resetting a body’s natural rhythms, Czeisler said, and changing the color and timing of lighting has been shown to help people sleep on Earth.


___


Online:


Journal: http://www.pnas.org


___


Seth Borenstein can be followed at http://twitter.com/borenbears


Science News Headlines – Yahoo! News





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Many French aghast at Depardieu exit






STORY HIGHLIGHTS


  • Russian President Vladimir Putin has bestowed Russian citizenship on actor Gérard Depardieu

  • For Depardieu, a public war of words erupted, with many in France disgusted by his move

  • Depardieu more than anyone, represents the Gallic spirit, says Agnes Poirier

  • Majority of French people disapprove of his action but can't help loving him, she adds




Agnes Poirier is a French journalist and political analyst who contributes regularly to newspapers, magazines and TV in the UK, U.S., France, Italy. Follow her on Twitter.


Paris (CNN) -- Since the revelation on the front page of daily newspaper Libération, on December 11, with a particularly vicious editorial talking about France's national treasure as a "former genius actor," Gérard Depardieu's departure to Belgium, where he bought a property just a mile from the French border, has deeply divided and saddened France. Even more so since, as we have learnt this week, Russian President Vladimir Putin has bestowed the actor Russian citizenship.


Read more: Depardieu's puzzling love for Russia


Back in mid-December, the French media operated along political lines: the left-wing press such as Libération couldn't find strong enough words to describe Depardieu's "desertion" while right-wing publications such as Le Figaro, slightly uneasy at the news, preferred to focus on President François Hollande's punishing taxes which allegedly drove throngs of millionaires to seek tax asylum in more fiscally lenient countries such as Belgium or Britain. Le Figaro stopped short of passing moral judgement though. Others like satirical weekly Charlie hebdo, preferred irony. Its cover featured a cartoon of the rather rotund-looking Depardieu in front of a Belgian flag with the headline: "Can Belgium take the world's entire load of cholesterol?" Ouch.


Quickly though, it became quite clear that Depardieu was not treated in the same way as other famous French tax exiles. French actor Alain Delon is a Swiss resident as is crooner-rocker Johnny Halliday, and many other French stars and sportsmen ensure they reside for under six months in France in order to escape being taxed here on their income and capital. Their move has hardly ever been commented on. And they certainly never had to suffer the same infamy.


Read more: Actor Depardieu makes Russia trip after accepting citizenship



Agnes Poirier

Agnes Poirier



For Depardieu, a public war of words erupted. It started with the French Prime Minister Jean-Marc Ayrault, and many members of his government, showing their disdain, and talking of Depardieu's "pathetic move." In response the outraged actor penned an open letter to the French PM in which he threatened to give back his French passport.


The backlash was not over. Fellow thespian Phillipe Torreton fired the first salvo against Depardieu in an open letter published in Libération, insulting both Depardieu's protruding physique and lack of patriotism: "So you're leaving the ship France in the middle of a storm? What did you expect, Gérard? You thought we would approve? You expected a medal, an academy award from the economy ministry? (...)We'll get by without you." French actress Catherine Deneuve felt she had to step in to defend Depardieu. In another open letter published by Libération, she evoked the darkest hours of the French revolution. Before flying to Rome to celebrate the New Year, Depardieu gave an interview to Le Monde in which he seemed to be joking about having asked Putin for Russian citizenship. Except, it wasn't a joke.


Read more: French star Depardieu ditches France for Putin's Russia


In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit. He has been Cyrano, he has been Danton; he, better than most, on screen and off, stands for what it means to be French: passionate, sensitive, theatrical, and grandiose. Ambiguous too, and weak in front of temptations and pleasures.



In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit
Hugh Miles



For more than two weeks now, #Depardieu has been trending on French Twitter. Surveys have showed France's dilemma: half the French people understand him but there are as many who think that paying one's taxes is a national duty. In other words, a majority of French people disapprove of his action but can't help loving the man.


Read more: Paris promises flurry of economic reforms


Putin's move in granting the actor Russian citizenship has exacerbated things. And first of all, it is a blow to Hollande who, it was revealed, had a phone conversation with Depardieu on New Year's Day. The Elysées Palace refused to communicate on the men's exchange. A friend of the actor declared that Depardieu complained about being so reviled by the press and that he was leaving, no matter what.


If, in their hearts, the French don't quite believe Depardieu might one day settle in Moscow and abandon them, they feel deeply saddened by the whole saga. However, with France's former sex symbol Brigitte Bardot declaring that she too might ask Putin for Russian citizenship to protest against the fate of zoo elephants in Lyon, it looks as if the French may prefer to laugh the whole thing off. Proof of this: the last trend on French Twitter is #IWantRussianCitizenship.


Read more: Brigitte Bardot threatens to spurn France, embrace Russia if 2 elephants killed


The opinions expressed in this commentary are solely those of Agnes Poirier.






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No vote on Illinois House pension plan today









SPRINGFIELD—





The Illinois House adjourned for the day without voting on a major government worker pension overhaul, casting grave doubt on the reform plan's fate.


The bill passed out of a committee earlier today, but proponents are still trying to round up enough votes to get it out of the full House.





The clock is ticking down until a new legislature is sworn in Wednesday. The Senate is not in town, and it's unclear whether enough lame-duck senators would return to vote on a pension plan even if it passed the House.


The House will return at 11 a.m. Tuesday.


"Sponsors will continue to work to find the votes and move the bill forward," said Ryan Keith, a spokesman for Democratic Reps. Elaine Nekritz of Northbrook and Daniel Biss of Evanston.


Earlier today, the plan won approval from a House committee. Workers would chip in more from their paychecks and automatic cost-of-living increases would be reined in for retirees under the proposal. Retirees would not get automatic annual inflation bumps until age 67 and cost-of-living increases would be frozen for six years.


The legislation emerged as the most comprehensive pension overhaul for government workers to reach the House floor with bipartisan support since estimates of the nation's worst-funded retirement system hit $96.8 billion. The proposal moved to the full House on a 6-3 vote.


Rank-and-file state workers, university employees, legislators, and suburban and downstate public school teachers and retirees would be impacted.


Sponsoring Rep. Elaine Nekritz called for action because the state's pension finances are "in crisis." She said the proposal is not the "ideal solution" but represented a solid compromise that lawmakers can pass before a new legislature is sworn in Wednesday.


"The choice is clear. The time is now," Nekritz testified in the House hearing. Failing to act would mean less money for schools, health care, social services and other state operations, she said.


House Republican leader Tom Cross of Oswego hailed Nekritz and Rep. Dan Biss, D-Evanston, for jump-starting a "give-and-take process" that has resulted in a "very good product" that will lower the debt by $30 billion.


"This is not going to get better, the economy will not save it and it's got to be fixed," said Cross, who threw his support behind the bill after working two years for pension reform. "This is something that has to happen."


He warned that the state must act or its already-poor credit ratings will drop farther and it will cost Illinois more to borrow money. Businesses already are wary about staying or moving to Illinois because of the uncertainty over the state's financial albatross, and workers deserve to know the fate of their pension plans, he said.


Cross said the state pension systems are only 39 percent funded and "it's not getting any better" because the state is on the hook for nearly $7 billion a year in pension payments ---nearly a quarter of the state's overall operating budget.


Biss maintained it is the only bipartisan legislation that has come forth that "truly solves theproblem" and has a "rationale, sensible framework."


In stark disagreement, Michael Carrigan, president of the Illinois AFL-CIO and a leader in a coalition of unions fighting the changes, maintained the pension proposal would disenfranchise people who have made their payments over the years and "played by the rules." 


Proponents maintained the proposal would be constitutional, but opponents maintained it represented "an all-out assault on employees" and a violation of the state charter's ban on diminishing benefits once they are given.


Illinois Federation of Teachers President Dan Montgomery charged lawmakers would violate their oaths of office if they supported the "illegal plan" and urged them to follow the "better angels of your nature."


Henry Bayer, who heads the union representing the most state workers, contended the measure "shifts costs away from state and onto the backs" of public workers and retirees.


The plan represented a "Tea Party approach" of "cut, cut, cut," said Bayer, executive director of the American Federation of State, County and Municipal Employees Council 31.


Among the key features of the House plan is a freeze on cost-of-living increases for all workers and retirees for as long as six years. Once the cost-of-living bumps resume, they would apply only to the first $25,000 of pensions. The inflation adjustments also would not be awarded until a person hits 67, a major departure  public employees who have been allowed to retire much earlier in some cases and begin reaping the benefits of the annual increases immediately.


Under the proposal, employee contributions to pensions would increase 1 percentage point the first year and 1 percentage point the second year. A lid would be put on the size of the pensionable salary based on a Social Security wage base or their current salary, whichever is higher.


The goal is to put in place a 30-year plan that would fully fund the Illinois pension systems


Even if the House plan passes, the Senate would have to come back to the Capitol Tuesday or early Wednesday to vote on it. It's unclear how many senators would return for such a vote and whether Senate President John Cullerton, D-Chicago, would help pass it. Cullerton prefers his own plan that he says would pass constitutional muster.





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Five accused in India rape case charged in court


NEW DELHI (Reuters) - Five men accused of raping and murdering an Indian student were read the charges in a near-empty courtroom on Monday after the judge cleared out lawyers for bickering over whether the men deserved a defense.


The 23-year-old physiotherapy student died two weeks after being gang-raped and beaten on a moving bus in New Delhi, then thrown bleeding onto the street. Protests followed, along with a fierce public debate over police failure to stem rampant violence against women.


With popular anger simmering against the five men and a teenager accused in the case, most lawyers in the district where the trial will be held refuse to represent them.


Before the men arrived for a pre-trial hearing on Monday, heckling broke out in a chamber packed with jostling lawyers, journalists and members of the public after two of the lawyers, Manohar Lal Sharma and V. K. Anand, offered to defend the men.


"We are living in a modern society," declared Lal Sharma, defending his decision. "We all are educated. Every accused, including those in brutal offences like this, has the legal right ... to defend themselves."


One woman lawyer prodded V. K. Anand in the chest, saying: "I'll see how you can represent the accused."


Unable to restore order, presiding magistrate Namrita Aggarwal ordered everyone to leave except the prosecution, and set police to guard the entrance.


She said the trial would now be held behind closed doors because of the sensitivity of the case.


FACES COVERED


Reuters video images showed the men stepping out of a blue police van that brought them from Tihar jail and walking, their faces covered, through a metal detector into the South Delhi court building.


The court was across the street from the cinema where the victim watched a film before she was attacked on her way home.


Aggarwal gave the men copies of the charges, which include murder, rape and abduction, a prosecutor in the case told Reuters.


Police have conducted extensive interrogations and say they have recorded confessions, even though the men have no lawyers.


If the men, most of them from a slum neighborhood, cannot arrange a defense, the court will offer them legal aid before the trial begins.


Two of them, Vinay Sharma and Pawan Gupta, have offered to give evidence against the others - Mukesh Kumar, Ram Singh and Akshay Thakura - possibly in return for a lighter sentence.


Mohan, describing what he called a heinous crime, said: "The five accused persons deserve not less than the death penalty."


The case has sharpened long-standing anger against the government and police for a perceived failure to protect women.


A male friend who was assaulted with the woman on December 16 said on Friday that passers-by left her unclothed and bleeding in the street for almost an hour and that, when police arrived, they spent a long time arguing about where to take them.


The woman lived for two weeks after her attack, dying in a Singapore hospital where she had been taken for treatment.


FAST-TRACK COURT


Aggarwal said the next hearing would be on January 10. The case is due to move later to another, fast-track court set up since the woman was attacked to help reduce a backlog of sex crime cases in Delhi.


Legal experts say the lack of representation for the five men may give grounds for appeal if they are found guilty. Convictions in similar cases have often been overturned years later.


Some legal experts have also warned that previous attempts to fast-track justice in India in some cases led to imperfect convictions that were later challenged.


The sixth member of the group alleged to have lured the student and a male friend into the private bus is under 18 and will be tried in a separate juvenile court.


The government is aiming to lower the age at which teenagers can be tried as adults, acknowledging public anger that the boy will face a maximum three-year sentence.


The victim was identified by a British newspaper at the weekend but Reuters has opted not to name her.


Indian law generally prohibits the identification of victims of sex crimes. The law is intended to protect victims' privacy and keep them out of the glare of media in a country where the social stigma associated with rape can be devastating.


The dead woman's father repeated on Monday that he wanted her identified and said he would be happy to release a photograph of her.


"We don't want to hide her identity. There is no reason for that. The only condition is it should not be misused," he told Reuters.


He said he was confident the trial would be quick and reiterated a call that the perpetrators be hanged.


(Writing by Frank Jack Daniel; Editing by Robert Birsel and Tom Pfeiffer)



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"Cliff" concerns give way to earnings focus

NEW YORK (Reuters) - Investors' "fiscal cliff" worries are likely to give way to more fundamental concerns, like earnings, as fourth-quarter reports get under way next week.


Financial results, which begin after the market closes on Tuesday with aluminum company Alcoa , are expected to be only slightly better than the third-quarter's lackluster results. As a warning sign, analyst current estimates are down sharply from what they were in October.


That could set stocks up for more volatility following a week of sharp gains that put the Standard & Poor's 500 index <.spx> on Friday at the highest close since December 31, 2007. The index also registered its biggest weekly percentage gain in more than a year.


Based on a Reuters analysis, Europe ranks among the chief concerns cited by companies that warned on fourth-quarter results. Uncertainty about the region and its weak economic outlook were cited by more than half of the 25 largest S&P 500 companies that issued warnings.


In the most recent earnings conference calls, macroeconomic worries were cited by 10 companies while the U.S. "fiscal cliff" was cited by at least nine as reasons for their earnings warnings.


"The number of things that could go wrong isn't so high, but the magnitude of how wrong they could go is what's worrisome," said Kurt Winters, senior portfolio manager for Whitebox Mutual Funds in Minneapolis.


Negative-to-positive guidance by S&P 500 companies for the fourth quarter was 3.6 to 1, the second worst since the third quarter of 2001, according to Thomson Reuters data.


U.S. lawmakers narrowly averted the "fiscal cliff" by coming to a last-minute agreement on a bill to avoid steep tax hikes this weeks -- driving the rally in stocks -- but the battle over further spending cuts is expected to resume in two months.


Investors also have seen a revival of worries about Europe's sovereign debt problems, with Moody's in November downgrading France's credit rating and debt crises looming for Spain and other countries.


"You have a recession in Europe as a base case. Europe is still the biggest trading partner with a lot of U.S. companies, and it's still a big chunk of global capital spending," said Adam Parker, chief U.S. equity strategist at Morgan Stanley in New York.


Among companies citing worries about Europe was eBay , whose chief financial officer, Bob Swan, spoke of "macro pressures from Europe" in the company's October earnings conference call.


REVENUE WORRIES


One of the biggest worries voiced about earnings has been whether companies will be able to continue to boost profit growth despite relatively weak revenue growth.


S&P 500 revenue fell 0.8 percent in the third quarter for the first decline since the third quarter of 2009, Thomson Reuters data showed. Earnings growth for the quarter was a paltry 0.1 percent after briefly dipping into negative territory.


On top of that, just 40 percent of S&P 500 companies beat revenue expectations in the third quarter, while 64.2 percent beat earnings estimates, the Thomson Reuters data showed.


For the fourth quarter, estimates are slightly better but are well off estimates for the quarter from just a few months earlier. S&P 500 earnings are expected to have risen 2.8 percent while revenue is expected to have gone up 1.9 percent.


Back in October, earnings growth for the fourth quarter was forecast up 9.9 percent.


In spite of the cautious outlooks, some analysts still see a good chance for earnings beats this reporting period.


"The thinking is you need top line growth for earnings to continue to expand, and we've seen the market defy that," said Mike Jackson, founder of Denver-based investment firm T3 Equity Labs.


Based on his analysis, energy, industrials and consumer discretionary are the S&P sectors most likely to beat earnings expectations in the upcoming season, while consumer staples, materials and utilities are the least likely to beat, Jackson said.


Sounding a positive note on Friday, drugmaker Eli Lilly and Co said it expects profit in 2013 to increase by more than Wall Street had been forecasting, primarily due to cost controls and improved productivity.


(Reporting By Caroline Valetkevitch; Editing by Kenneth Barry)



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‘Universal’ Personality Traits Are Not, Study Finds






Psychologists can get a pretty clear picture of someone’s personality by evaluating to what degree they express traits known as the “Big Five” — openness, conscientiousness, extroversion, agreeableness and neuroticism. These factors are thought to be rooted in biology and to transcend cultural differences, but a new study of an indigenous Bolivian society shows the traits might not be universal after all.


Researchers spent two years studying more than 1,000 Tsimane forager-farmers, who live in isolated communities, each ranging from 30 to 500 people. Most are not formally educated, and they live in extended family clusters, sharing food and labor and limiting contact with outsiders.






The team first surveyed adults in the villages with a standard questionnaire (translated into the Tsimane language) that assesses the Big Five personality traits. Next the researchers asked Tsimane participants to evaluate their spouse’s personality. This second part revealed that the subject’s personality as reported by his or her spouse also did not fit with the Big Five traits. The researchers found that their results held true even when they controlled for education level, Spanish fluency, gender and age.


The team instead discovered evidence of a pair of broad traits that could be considered the Tsimane “Big Two.” The researchers labeled one prosociality — socially beneficial behavior, which among the Tsimane, looks like a mix of items under the extroversion and agreeableness portions of the Big Five. The other trait is industriousness, which blends the efficiency, perseverance and thoroughness found in the conscientiousness portion of the Big Five, the researchers said.


The team says their results don’t support the universality of the Big Five, and they speculated that the social structure of the Tsimane could have resulted in a trait structure different from the Big Five.


“Individuals in all human societies face similar goals of learning important productive skills, avoiding environmental dangers, cooperating and competing effectively in social encounters, and finding suitable mates. In small-scale societies, individuals have fewer choices for social or sexual partners and limited domains of opportunities for cultural success and proficiency. This may require abilities that link aspects of different traits, resulting in a trait structure other than the Big Five,” the team wrote.


The research was detailed online in December in the Journal of Personality and Social Psychology.


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Ravens beat Colts 24-9 in AFC wild card


BALTIMORE (AP) — Ray Lewis' last ride now will take him to Denver.


Anquan Boldin, Joe Flacco and a staunch Baltimore defense made sure of that Sunday.


Boldin set a franchise record with 145 yards receiving, including the clinching touchdown in the Ravens' 24-9 victory over Indianapolis in an AFC wild-card game. The win delays star linebacker Lewis' retirement for at least another week as Baltimore (11-6) heads to Denver next Saturday.


The Broncos beat the Ravens 34-17 three weeks ago.


"I wanted Denver," Boldin said. "Because they beat us."


Lewis, who made 13 tackles, even lined up at fullback for the final kneel-down in his last home game of a 17-year career. He then went into a short version of his trademark dance before being mobbed by teammates.


He followed with a victory lap, his right arm, covered by a brace, held high in salute to the fans after playing for the first time since tearing his right triceps on Oct. 14 against Dallas.


"There's no greater reward than for me to take this last victory lap, for me to see my team, because we have a vision," Lewis said. "We're not trying to end here. This is just my last game at Ravens stadium, and it's the most awesome thing you could ever ask for in any professional career."


Sunday's victory also enhanced the Ravens' success rate in opening playoff games. Flacco now has won at least one postseason game in all five of his pro seasons, the only quarterback to do it in the Super Bowl era.


His main target Sunday was Boldin, who had receptions of 50 and 46 yards, plus his 18-yard TD on a floater from Flacco in the corner of the end zone with 9:14 to go.


"I told (Lewis) before the game I was going to get 200 yards," Boldin said.


Baltimore overcame the first two lost fumbles of the season by Ray Rice, too, as John Harbaugh became the first head coach with wins in his first five playoff campaigns.


Backup halfback Bernard Pierce rescued Rice with a 43-yard burst that led to Boldin's touchdown, and ran for 103 yards.


Flacco also connected with Dennis Pitta for a 20-yard TD and rookie Justin Tucker made a 23-yard field goal.


The loss ended the Colts' turnaround season in which they went from 2-14 to the playoffs in coach Chuck Pagano's first year in Indianapolis (11-6). Pagano missed 12 weeks while undergoing treatment for leukemia and returned last week.


Offensive coordinator Bruce Arians, who went 9-3 as interim coach, was absent Sunday after being hospitalized with an undisclosed illness. Quarterback coach Clyde Christensen called the plays, but Baltimore's suddenly revitalized defense — inspired by Lewis' pending retirement, no doubt — never let standout rookie QB Andrew Luck get comfortable.


Indy's only points came on three field goals by Adam Vinatieri, from 47, 52 and 26 yards. Luck completed 28 of 54 passes for 288 yards. It was the most attempts by a rookie in a playoff game.


Reggie Wayne had 108 yards on eight receptions and moved into second in career playoff catches with 91 — 60 behind leader Jerry Rice. But the Colts, who moved from Baltimore to Indianapolis in 1984 — they still are despised here — became the second NFL team to improve to 11 wins following a two-win season and then lose in the opening round of the playoffs.


The Ravens also beat the 2008 Dolphins in a similar scenario.


Both teams were sloppy early on, with Rice losing a fumble, Lewis dropping a potential interception, and Luck being stripped of the ball on a sack.


But Rice atoned with a 47-yard gain on a screen pass, leading to Vonta Leach's 2-yard touchdown.


That Pro Bowl backfield was bolstered by the kick returns of another Pro Bowl player, Jacoby Jones. He gained 60 yards on kickoff runbacks and 57 on punt returns.


Vinatieri, familiar with big kicks in the playoffs after winning two Super Bowls for New England with field goals, made a 47-yarder in the second quarter, a 52-yarder as the first half expired, and a 26-yarder near the end of the third period. But he also missed a 40-yarder wide right.


___


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


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Storm over Depardieu's 'pathetic' move






STORY HIGHLIGHTS


  • Russian President Vladimir Putin has bestowed Russian citizenship on actor Gérard Depardieu

  • For Depardieu, a public war of words erupted, with many in France disgusted by his move

  • Depardieu more than anyone, represents the Gallic spirit, says Agnes Poirier

  • Majority of French people disapprove of his action but can't help loving him, she adds




Agnes Poirier is a French journalist and political analyst who contributes regularly to newspapers, magazines and TV in the UK, U.S., France, Italy. Follow her on Twitter.


Paris (CNN) -- Since the revelation on the front page of daily newspaper Libération, on December 11, with a particularly vicious editorial talking about France's national treasure as a "former genius actor," Gérard Depardieu's departure to Belgium, where he bought a property just a mile from the French border, has deeply divided and saddened France. Even more so since, as we have learnt this week, Russian President Vladimir Putin has bestowed the actor Russian citizenship.


Back in mid-December, the French media operated along political lines: the left-wing press such as Libération couldn't find strong enough words to describe Depardieu's "desertion" while right-wing publications such as Le Figaro, slightly uneasy at the news, preferred to focus on President François Hollande's punishing taxes which allegedly drove throngs of millionaires to seek tax asylum in more fiscally lenient countries such as Belgium or Britain. Le Figaro stopped short of passing moral judgement though. Others like satirical weekly Charlie hebdo, preferred irony. Its cover featured a cartoon of the rather rotund-looking Depardieu in front of a Belgian flag with the headline: "Can Belgium take the world's entire load of cholesterol?" Ouch.


Quickly though, it became quite clear that Depardieu was not treated in the same way as other famous French tax exiles. French actor Alain Delon is a Swiss resident as is crooner-rocker Johnny Halliday, and many other French stars and sportsmen ensure they reside for under six months in France in order to escape being taxed here on their income and capital. Their move has hardly ever been commented on. And they certainly never had to suffer the same infamy.



Agnes Poirier

Agnes Poirier



For Depardieu, a public war of words erupted. It started with the French Prime Minister Jean-Marc Ayrault, and many members of his government, showing their disdain, and talking of Depardieu's "pathetic move." In response the outraged actor penned an open letter to the French PM in which he threatened to give back his French passport.


The backlash was not over. Fellow thespian Phillipe Torreton fired the first salvo against Depardieu in an open letter published in Libération, insulting both Depardieu's protruding physique and lack of patriotism: "So you're leaving the ship France in the middle of a storm? What did you expect, Gérard? You thought we would approve? You expected a medal, an academy award from the economy ministry? (...)We'll get by without you." French actress Catherine Deneuve felt she had to step in to defend Depardieu. In another open letter published by Libération, she evoked the darkest hours of the French revolution. Before flying to Rome to celebrate the New Year, Depardieu gave an interview to Le Monde in which he seemed to be joking about having asked Putin for Russian citizenship. Except, it wasn't a joke.


In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit. He has been Cyrano, he has been Danton; he, better than most, on screen and off, stands for what it means to be French: passionate, sensitive, theatrical, and grandiose. Ambiguous too, and weak in front of temptations and pleasures.



In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit
Hugh Miles



For more than two weeks now, #Depardieu has been trending on French Twitter. Surveys have showed France's dilemma: half the French people understand him but there are as many who think that paying one's taxes is a national duty. In other words, a majority of French people disapprove of his action but can't help loving the man.


Putin's move in granting the actor Russian citizenship has exacerbated things. And first of all, it is a blow to Hollande who, it was revealed, had a phone conversation with Depardieu on New Year's Day. The Elysées Palace refused to communicate on the men's exchange. A friend of the actor declared that Depardieu complained about being so reviled by the press and that he was leaving, no matter what.


If, in their hearts, the French don't quite believe Depardieu might one day settle in Moscow and abandon them, they feel deeply saddened by the whole saga. However, with France's former sex symbol Brigitte Bardot declaring that she too might ask Putin for Russian citizenship to protest against the fate of zoo elephants in Lyon, it looks as if the French may prefer to laugh the whole thing off. Proof of this: the last trend on French Twitter is #IWantRussianCitizenship.


The opinions expressed in this commentary are solely those of Agnes Poirier.






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Blackhawks owner Wirtz hopes NHL deal is ratified


















The NHL and NHLPA came to a tenative agreement to end the lockout early Sunday morning. The deal must still be ratified, but the regular season is expected to begin in Mid-January.















































Chicago Blackhawks Chairman Rocky Wirtz, who along with the other 28 owners of NHL teams hadn't been allowed by the league to publicly comment during the negotiating process, said Sunday he is pleased that the lockout appears to be at an end.

Hours after a tentative deal had been reached between the NHL and players' association on a new collective bargaining agreement that would end the 113-day lockout, Wirtz said he hopes the deal will receive the approval of the union and NHL Board of Governors.






"We certainly hope it can be ratified by both the owners’ and players’ sides," Wirtz told the Tribune. "We appreciate the fans’ patience during the process."

The sides came to a tentative agreement after a marathon negotiating session in New York, and NHL Commissioner Gary Bettman and Donald Fehr made a joint announcement around 4 a.m. Central saying a deal was in place but awaits final tweaking and then official approval by owners and players.

The Board of Governors will meet early next week to vote on the deal and training camps could open a day or two later with a 48- or 50-game season getting underway about a week later.

ckuc@tribune.com

Twitter @ChrisKuc




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