Five Best Thursday Columns

Jonathan Cohn in The New Republic on Starbucks In hopes of inspiring latte-sipping lawmakers to reach a deal on the fiscal cliff, yesterday Starbucks started writing "come together" on every cup it sells in the DC area. Cute effort, right? More like misguided, argues Jonathan Cohn. He thinks the issue isn't about two warring parties reconciling—it's about convincing the Republicans to quit hijacking the negotiation process. "One party, the Democrats, is already acting responsibly. And one party, the Republicans, is not," Cohn writes. "Washington doesn't need two parties that can 'come together.' It needs one party to 'get it together.' Maybe [Starbucks CEO Howard] Schultz should put that on a coffee cup."

RELATED: When Zuck Met Medvedev

Jacob Sullum in Reason on mental health With so many voices crowding the debate around gun violence, which issue should we be focusing on to prevent another horrible mass shooting like the one at Sandy Hook Elementary—gun control or mental health? Jacob Sullum remains skeptical about the latter. "Even if the mental-health criteria for rejecting gun buyers (or for commitment) were expanded, there is little reason to think [mental health professionals] could distinguish between future Lanzas and people who pose no threat," Sullum writes, citing data that says around half of Americans will become mentally ill at one point in their lives.

RELATED: Anti-Putin Protesters Huddle on Facebook to Plan Weekend Demonstration

James Bessel in The New York Times on Hagel's pro-Israel critics One of the many camps that doesn't want to see Chuck Hagel become the Secretary of Defense includes the pro-Israel lobby. Groups like the Emergency Committee for Israel are already swinging at Hagel for remarks he made about the Jewish state years ago. "Support for the Jewish state remains strong among both parties on Capitol Hill and across the American electorate, and it won't disappear anytime soon," James Bessel writes. "But that support will wither if Aipac and other mainstream Jewish leaders don't forcefully reject the zealots in their midst."

RELATED: What Threat Did 11 Russian Spies Pose?

Leonid Bershidsky in Bloomberg View on Russia This time last year, Russia's dissidents seemed primed to remake the country, taming its corruption through massive protests. But 2012 hasn't seen those hopes borne out, argues Leonid Bershidsky. Instead, Vladimir Putin has squashed his opposition and launched "a new cold war" with the U.S. "By pushing back his opponents instead, Putin showed that, at 60, he still knows what cards to play with most Russians: traditional values, Orthodox Christianity, anti-Americanism," Bershidsky writes. "As a man deeply rooted in the Soviet past, he has fallen back on the old regime's tested recipes for suppressing dissent, and he has succeeded in annihilating the threat of peaceful revolution that seemed so real a year ago."

RELATED: Europe Is the X Factor in Palestinian Statehood Bid

William H. Janeway in the Los Angeles Times on venture capital When it comes to juggernauts like Facebook and Spotify, Silicon Valley venture capitalists might not have built that, but they would say such innovations wouldn't have gotten built without their money. But one venture capitalist—William H. Janeway—wants to give credit to who really built the platform for all this development: government. "My colleagues and I and the entrepreneurs whom we backed were all dancing on a platform constructed by the federal government," Janeway writes. "Government cannot play the role either of entrepreneur or venture capitalist in creating the low-carbon economy. But entrepreneurs and venture capitalists cannot build this new economy by themselves."

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Why Apple's First American-Made Mac Minis Wouldn't Create Jobs

If the latest rumors are true, Apple's made-in-America shift will be an extremely experimental, low-cost operation — and if you look at the supply chain, that may point to more of a symbolic gesture than a genuine engine of job creation. The whispers, which have increasingly better sourcing, now say the tech giant will move its Mac Mini production line from China's Foxconn to the the U.S., possibly near California or Tennessee, per the rumor site DigiTimes. It's still a rumor, of course, but it would make sense for Apple CEO Tim Cook to choose the cheapest and simplest of Macs in fulfilling what he promised earlier this month would be a move "to bring some production to the U.S. on the Mac." It's not going to be a massive Apple factory on these shores, not nearly. Here's why the market and the product specs will dictate less man power:
RELATED: Apple Still Isn't Doing a Very Good Job Creating U.S. Jobs
Low-demand equals low-supply equals a smaller operation. Apple does not break down individual Mac Mini sales in its quarterly reports, but DigiTimes guesses 2012 sales totaled somewhere around 1.4 million units. In one quarter last year, the company sold 1.48 desktop computers, which includes the Mac Mini, iMac, and Mac Pro. Say those sales divided equally; then over a year Apple would sell just under 2 million Mac Minis. Even with that higher estimate, it's a teeny-tiny number compared to the 3 million iPads (Minis and normals) it sold over one weekend in November.
RELATED: Apple Will Be Made in America, Finally
With demand relatively low, Apple won't have to run a huge operation in the U.S., which means fewer jobs necessary at any new or converted factory.
RELATED: Obama's Awkward Steve Jobs Reference at the State of the Union
Tiny product equals fewer parts equals a smaller operation. You can see from the photo above just how little the littlest, lowest-end Mac computer really is. The iFixit teardown for the latest Mac Mini takes 14 steps compared to the iMac, which takes 25. Meaning, the reverse — putting it back together — takes around that amount of work (plus, you know, factory speed), which may point to a much, much lower percentage of workers per product to get the new line of Minis built here.
RELATED: Why on Earth Is Rick Perry Giving Apple Money?
The smaller box also has fewer parts, some of which will come from American suppliers. (To get the "Made in America" stamp requires a certain amount of parts and labor built in and working on U.S. soil.)
RELATED: How iPhone Overcame Hardware Concerns to Massive Sales
Perhaps Apple's making a smart choice by starting small, as TechCrunch's Darrell Etherington argues. All of this smallness means lower costs for Apple. It also means fewer possibilities for something to go wrong in the supply chain. Or you could take the cynical road, and see Apple's choice not as a test model for the future, but as a way for the company to say it makes something here. And then go back to China.

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Survey finds increase in e-reading, drop in paper

The tastes of the reading public are turning digital.
A Pew Internet Research Center survey released Thursday found that the percentage of Americans aged 16 and older who read an e-book grew from 16 percent in 2011 to 23 percent this year. Readers of traditional books dropped from 72 percent to 67 percent. Overall, those reading books of any kind dropped from 78 percent to 75 percent, a shift Pew called statistically insignificant.
Those owning an e-book device or tablet jumped from 18 percent to 33 percent, with much of that increase coming from last year's holiday season, when millions received Kindles, Nooks and other e-readers as gifts.
Awareness that libraries offer digital texts grew from 24 percent to 31 percent.
The telephone survey of 2,252 people aged 16 and older was conducted from Oct. 15 to Nov. 10. It has a sampling error margin of plus or minus 2.3 percentage points.

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New purported BlackBerry Z10 specs emerge: 1.5GHz processor, 2GB RAM, 8MP camera

Another week, another batch of purported leaks for Research In Motion’s (RIMM) first BlackBerry 10-powered Z10. BBin claims to have most of the Z10′s final specs confirmed and it is shaping up to be a powerful device. Rumored specs for the Z10 include a TI OMAP 4470 1.5GHz dual-core processor (Qualcomm Snapdragon MSM8960 for the U.S. and Canada), a 4.2-inch display (1,280 x 768 resolution), quad-band LTE, 2GB of RAM, 16GB or 32GB of internal storage, an 8-megapixel rear camera with LED flash, a 2-megapixel front camera, a microSD card slot, and an 1,800 mAh removable battery. On the connectivity side, the Z10 is also rumored to have NFC, Bluetooth 4.0, dual-band 802.11 a/g/n Wi-Fi, A-GPS, a Micro USB port and a Micro HDMI-out port. BlackBerry 10′s January 30th unveiling in New York City can’t come soon enough.

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Instagram gains users in December despite recent uproar as Zynga gets pecked to death by rivals

Zynga (ZNGA), the Facebook (FB) app behemoth, still reigns supreme on its most important platform. But the erosion of its dominant position continues as smaller rivals keep chipping away at its market share. On December 26, Zynga-owned Facebook applications had 267 million Monthly Active Users, down 20 million in two weeks. Far behind it followed Microsoft (MSFT) with 70 million MAU, King.com with 65 million MAU and Instagram with 43 million MAU.
[More from BGR: Samsung looks to address its biggest weakness in 2013]
But whereas Zynga lost nearly 7% of its Monthly Active Users in the two-week run-up to Christmas, Microsoft managed to inch up by 700,000 users, King.com by 600,000 users and Instagram by 2.1 million users.
[More from BGR: New purported BlackBerry Z10 specs emerge: 1.5GHz processor, 2GB RAM, 8MP camera]
Of course, the Facebook crackdown on aggressive customer acquisition techniques has limited the growth of all third-party app developers. But the most important of Zynga’s smaller rivals have been able to avoid the kind of MAU erosion that is now plaguing the Facebook app champion.
What really pops out from Christmas Facebook app trends is the way Instagram has been able to ride a wave of negative publicity to perky 5% monthly user growth over the past two weeks.
The tsunami of wrath and sarcasm unleashed on Twitter has not reversed Instagram’s momentum. It might even be possible that floating an outrageous-sounding privacy policy and then quickly reversing it could have simply increased Instagram’s brand recognition and piqued consumer interest among those who are not deeply involved in app trends.
This certainly adds some piquancy to the breathless commentary about Instagram’s “fatal blunder” and “possibly irreversible damage.

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TEXT-S&P summary: Bharti Airtel Ltd.

We assess Bharti's financial risk profile as "significant" because of the
company's high debt. For the six months ended Sept. 30, 2012, Bharti's
debt-to-capital ratio remained high at about 61.6%, and its ratios of
annualized funds from operations (FFO) to total debt and debt to EBITDA were
at 23% and 3.5x, respectively. The company's financial ratios were marginally
weaker than in the previous year. This was because of: (1) consolidation of
US$450 million of debt at Qualcomm India, the India broadband wireless
business of Qualcomm Inc. (not rated), which is 49% owned by Bharti; (2) a
depreciation of the Indian rupee (INR); and (3) weaker-than-expected operating
performance. However, increasing cash flows from revenue growth and an equity
offering at Bharti's majority-owned subsidiary Bharti Infratel Ltd. have
mostly offset the effects of the above factors.
We expect Bharti's financial ratios to be susceptible to regulatory
developments in India, especially related to changes in the costs for past and
future spectrum, and the company's response to such changes. The impact of
such changes on Bharti's cash flows is hard to determine because cash flows
are linked to prices derived from the spectrum auction and regulation.
However, our projected positive free operating cash flow could more than
offset such impact, especially with the lowering of the auction price in key
regions. This, combined with growing revenue, could help offset the limited
headroom in Bharti's financial ratios at the current rating level. We expect
Bharti's FFO-to-debt ratio to stay about 25% and its debt-to-EBITDA ratio at
close to 3x in the fiscal year ending March 31, 2014.
Bharti's "fair" business risk profile reflects the company's good market
position as well as above average regulatory and country and macroeconomic
risks in its key markets, particularly India. While regulatory uncertainty in
India has somewhat reduced with recent regulatory changes, policy is still
evolving. The uncertainty is regarding a one-time spectrum charge for spectrum
above 4.4 megahertz (MHz) from July 2008, spectrum re-farming in the 900MHz
frequency band, and license renewal over the next two to three years. Also, we
believe that the company's established position in India makes it less
vulnerable to regulatory uncertainty than some newer entrants.
Bharti's operating performance has been weaker than our expectations in the
past six months. But we believe the company's India business will gradually
improve over the next two to three years as competition moderates and pricing
pressure declines. This is on account of: (1) high penetration; (2) evolving
regulation, which has reduced the number of players; and (3) telecom operators
focus on improving profitability, especially with high spectrum costs, rather
than garnering market share. Bharti's EBITDA margins fell to 31% in the six
months ended Sept. 30, 2012, from 35% in fiscal 2012. The weaker performance
is despite revenue growing by 14%--led by the Africa business--during the same
period. Ongoing intense competition in India and slower-than-expected
improvement in the Africa business were key contributors to the decline in
EBITDA margins.
Bharti has a good market position as India's largest wireless operator. As of
June 30, 2012, the company has a subscriber market share of about 20%,
population coverage of more than 86%, and revenue market share of about 30%.
We expect Bharti to benefit from its strong market position in most African
markets. The company has 193.2 million subscribers in South Asia and 58.7
million in Africa as of Sept. 30, 2012. Bharti also benefits from good
diversity, with operations across South Asia and Africa in diverse business
lines.
Bharti Group owns more than 35% of Bharti, while Singapore Telecommunications
Ltd. (SingTel; A+/Stable/A-1; axAAA/axA-1+) owns 32.25%.
Liquidity
We assess Bharti's liquidity as "adequate," as defined in our criteria. We
expect the company's sources of liquidity to exceed its uses by more than 1.2x
over the next 12 months. Our liquidity assessment is based on the following
factors and assumptions:
-- Liquidity sources include cash and short-term investments of INR35
billion and unused credit facilities of about INR55 billion as of Sept. 30,
2012.
-- Sources also include our projected FFO of about INR190 billion over
the next 12 months and proceeds from Bharti Infratel's equity issuance of
about INR30 billion.
-- Uses of liquidity include debt of about INR146 billion maturing in the
next 12 months (including short-term debt that we expect the company to roll
over).
-- Maintenance and other capital expenditure of about INR80 billion and
projected dividend of about INR4.5 billion, even in case of stress.
-- We anticipate that net liquidity sources will remain positive even if
EBITDA declines by 20%.
Bharti has adequate headroom in its covenants.
We believe Bharti has good financial flexibility because of its strategic
relationship with SingTel, its investments in tower companies, and access to
financial markets and bank lines.
Bharti's foreign currency risk exposure is high, in our view. As of March 31,
2012, two-thirds of the company's debt is in foreign currency.
Correspondingly, only one-third of Bharti's revenue is in foreign currency.
This exposes the company to currency depreciation risk. However, most of
Bharti's debt matures in the second half of the loan period. Such a maturity
profile, along with the company's access to foreign currency funds from
capital markets and bank lines, somewhat offsets the risks of refinancing
foreign currency debt maturities. Bharti is also exposed to interest rate
risk, although it currently benefits from a low interest rate environment.
Outlook
The stable outlook reflects our expectation that Bharti will maintain its good
market position in India and improve its operating performance in Africa. We
anticipate that the company's ratio of debt to EBITDA will be below 3.5x in
the next 12 months.
We could lower the rating if: (1) Bharti's business risk profile deteriorates
due to regulatory changes, competitive pressures, or an increase in country
risk, particularly in Africa; or (2) the company's financial risk profile
weakens. A material increase in debt because of an acquisition or spectrum
auction, any other regulatory change, or a depreciation of the rupee could
weaken Bharti's financial risk profile. A ratio of debt to EBITDA of 3.5x or
more on a sustainable basis could indicate such weakening.
We could raise the rating if Bharti significantly improves its operating
performance, particularly in Africa, or undertakes strategic measures, such as
raising equity, that significantly improve its financial performance. A ratio
of debt to EBITDA of less than 2.5x on a sustainable basis could indicate such
improvement.

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Decline of listed firms on London's junior market slows

A decline in the number of companies listed on London's junior stock market eased this year and around half the companies that did leave were bought up or transferred to bigger exchanges, a Deloitte report shows.
It said the number of companies listed on the London Stock Exchange's Alternative Investment Market (AIM) had fallen every year since 2007, but the fall in 2012 was just 4 percent, compared with 16 percent in 2009, its fastest year of contraction.
"During the time of the financial crisis ... the principal reasons why companies were leaving the list were negative," said Richard Thornhill, capital markets partner at Deloitte.
"Either they no longer perceived that the market offered them value ... or the economic climate forced them to de-list. The situation in 2012 has been very different, with the driving force behind companies leaving the list being transactions which have consistently realised value for shareholders."
Of the 113 companies who had left the market by the end of November, 41 were acquired, 17 were subject to reverse take-overs and three transferred to London's main market.
Those companies which were bought received an average premium of 53 percent to their closing share price on the day before the acquisition.
By the end of November, 65 companies had joined AIM, and the share prices of the 44 which raised money on admission had risen an average 26 percent since listing.
"There are good reasons to be confident about the market in 2013," said Thornhill.

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Toyota Tsusho Corp secures almost 98 percent of France's CFAO

Toyota Tsusho Corp , the Japanese conglomerate, said on Monday it had secured almost 98 percent of French distribution company CFAO .
The Japanese company said it would decide within three months whether to keep CFAO's French stock market listing.
TTC had bought a 29.8 percent stake in CFAO in July from luxury and retail group PPR . TTC later launched a tender offer for CFAO, including PPR's remaining 12.2 percent stake, at 37.50 euros a share. The deal valued CFAO at 2.3 billion euros (£1.9 billion).
At the close of the tender offer on December 17, TTC had received 97.91 percent of CFAO, it said in a statement.
"Although having acquired more than 95 percent of CFAO's voting rights shares, we will study whether to maintain CFAO's French listing," it said.
Its chief executive Jun Karube told French daily Les Echos in October that TTC wanted to keep CFAO's listing on the Paris stock exchange.
CFAO distributes vehicles and medicines in Africa and French overseas territories.

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S&P cuts Egypt rating on political strife

Standard & Poors' cut Egypt's long-term credit rating on Monday and said another cut was possible if deepening political turbulence undermines efforts to prop up the economy and public finances.
Egypt's popular uprising two years ago chased away tourists and foreign investors, helping push its budget deficit into double digits as a percentage of national output and worsening its balance of payments.
A divisive battle over a new constitution this month has also prompted the government to delay urgent austerity measures and put a crucial $4.8 billion IMF loan on hold.
S&P reduced Egypt's long-term sovereign rating to 'B-' from 'B', but left its short-term rating at 'B' for both foreign- and local-currency debt. It kept its negative outlook on the rating - suggesting another cut is the most likely next move.
"A further downgrade is possible if a significant worsening of the domestic political situation results in a sharp deterioration of economic indicators such as foreign exchange reserves or the government's deficit," S&P said.
Domestic debt was equivalent to 69.7 percent of gross domestic product as of the end of September 2012, while its foreign debt was 13.1 percent of GDP, according to the finance ministry.
Egypt reached an initial accord with the International Monetary Fund (IMF) last month for a financial support package, but later put on hold a series of austerity measures deemed necessary to secure IMF approval.
The government then asked the IMF to delay until January a meeting to approve the loan, which looks increasingly vital to prop up government finances but requires it to take unpopular measures on taxation and spending.
The measures included increases in sales tax on goods and services ranging from alcoholic beverages, cigarettes and mobile phone calls to automobile licences and quarrying permits.
President Mohamed Mursi withdrew them within hours of their being announced after criticism from his opponents and the media.

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U.S. budget uncertainty hangs over quiet stocks, FX

 European shares and oil prices edged lower on Monday with Wall Street expected to follow suit, as a deadlock in U.S. budget talks left an undercurrent of uncertainty in markets ahead of the Christmas break.
With a number of stock markets including in Germany, Italy and Switzerland closed for the Christmas holiday, the FTSEurofirst300 provisionally closed down 0.1 percent at 1,137.94 after a shortened session in British, French, Dutch and Spanish markets.
The MSCI index of global stocks was virtually unchanged at 339.97 ahead of what is expected to be another lower open on Wall Street, after the biggest drop since mid-November on Friday.
Activity in other assets was also subdued, with spot gold edging off a four-month low and Brent oil easing back under $109 a barrel.
Markets were left in limbo on Friday when President Barack Obama and U.S. lawmakers suspended talks until after Christmas on avoiding $600 billion of spending cuts and tax increases that threaten to send the economy back into recession.
Although there is no official date for talks to resume, the two sides still have a few days after Christmas to find a compromise before the January 1 deadline when the measures start to take effect.
Most political experts and economists expect a deal of some form. If they fail, the "fiscal cliff" could wipe as much as 4 percent off U.S. GDP next year, choking the global recovery before it gets going.
"The fiscal cliff is the only thing that is important for markets at the moment," said ABN Amro economist Aline Schuiling. "We were hoping the festive spirit would get everyone together and a deal would be done, but Obama has now gone to Hawaii for Christmas, so it looks like we'll have to wait."
YEN WEAKNESS
Most European bond markets were already shut for Christmas but one of the few to be open was in Britain where benchmark 10-year yields ticked higher.
Currency markets were also largely quiet. Against the backdrop of the fiscal cliff uncertainty, the dollar eased 0.2 percent versus a basket of major currencies while the euro climbed back above $1.32.
The major mover was the yen, which neared a 20-month low versus the dollar, after incoming premier Shinzo Abe renewed pressure over the weekend on the Bank of Japan to adopt a 2 percent inflation target.
The dollar was up 0.3 percent on the day at 84.45 yen. Chartists said the dollar needed to overcome 85.05 yen, its 200-week moving average, for it to make further gains.
"There has been some pretty significant yen selling all through the night and into this morning," said Peter Kinsella, currency strategist at Commerzbank.
"It is very noticeable we have not seen any retracement or dip in dollar/yen at all. The market is really saying they are convinced on yen weakness, and that is what we are going to see for the remainder of this year and in the course of next year."
STRONG FINISH
Trading on Wall Street was expected to be subdued when it opens later, also for half a day. Futures pointed to the S&P 500, the Dow Jones and Nasdaq 100 all starting down 0.3 percent.
The uncertainty over the U.S. budget is threatening to sour what has been a strong second half of the year for equity markets. The FTSEurofirst 300 is up 20 percent since June while the Euro STOXX 50 has gained almost 30 percent. Both indexes are set to post their best annual performances since the post-Lehman crisis bounce of 2009.
Investors are now showing increasing appetite for European stocks. EPFR Global data reported that flows into equity funds have increased for the last 19 weeks.
"This year has been a year of transition, and now it's time to turn the page and move on, to start picking stocks again for the long term, companies exposed to the emerging consumer in places like Asia and Africa," said David Thebault, head of quantitative sales trading, at Global Equities.
Others warn that the euro zone crisis may still have some bite left, however. Elections are due next year in Italy and Germany, while Spain's government, companies and banks need to refinance huge amounts of debt.
"Policymakers in Spain will not be looking forward to the start of the year and January will probably be quite volatile in Europe," said ABN Amro's Schuiling. "The funding in the first quarter for Spain will be the test... Its deficit is now roughly the same as Greece's."

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Wall Street edges lower in thin trade

U.S. stocks edged lower on Monday after the S&P 500 suffered its worst drop since mid-November on continued worry legislators will be unable to reach a deal to avert the "fiscal cliff."
The Dow Jones industrial average dropped 27.95 points, or 0.21 percent, to 13,162.89. The Standard & Poor's 500 Index dropped 2.55 points, or 0.18 percent, to 1,427.60. The Nasdaq Composite Index dropped 6.23 points, or 0.21 percent, to 3,014.78.

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NFL: Colts clinch playoff berth with win against Chiefs

The Indianapolis Colts crowned their remarkable turnaround by clinching an AFC wild-card playoff berth with a 20-13 victory over the Kansas City Chiefs on Sunday.
The Colts, who tied for the NFL's worst record last season at 2-14, improved to 10-5 with their win over the 2-13 Chiefs.
Rookie quarterback Andrew Luck, who the Colts claimed with the top pick in the NFL Draft thanks to their woeful record, hit a leaping Reggie Wayne in the back of the end zone for the winning seven-yard touchdown pass with 4:08 left in the game.
That connection capped a 73-yard drive that marked their NFL record-tying seventh fourth-quarter comeback victory.
Luck set the league record for passing yards in a season for a rookie, finishing the game with 4,183 yards to eclipse the mark of 4,051 yards last season by Cam Newton of the Carolina Panthers with one regular season game still to play.
"I'm very proud to be a part of this team, to be associated with a playoff team. What a great win for us," Luck told reporters. "We've been in that situation before when we've been down or tied.
"It was a great all-around effort on that last drive."
The Colts bucked even longer odds this year, learning they would have to carry on without head coach Chuck Pagano, who left after three games to go through treatment for leukemia.
Pagano, who was replaced by interim coach Bruce Arians (9-3 with the team), has been cleared by doctors to return to the team and is expected to be back on the sidelines next week.
"I can't say enough about the guys in the locker room, mission accomplished." said Arians.
"We set out to extend this season for Chuck. Now he can come back Monday and not be in the stressful time that we were in. He can get back into the flow of things at his pace."
Luck, who completed 17-of-35 passes for 205 yards including five to Wayne for 81 yards, was one of a group of Colts players who shaved their heads in solidarity with Pagano, whose hair fell out during his cancer treatments.
"It means the world," Luck said about Pagano's return. "I'm glad we could get this win for him so he can come back knowing we'll be in the postseason."
The Colts close the regular season against the visiting AFC South champion Houston Texans (12-3).

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Bengals book playoff spot with win over Steelers

Josh Brown booted a 43-yard field goal with four seconds left to play to earn the Cincinnati Bengals a 13-10 win over the Pittsburgh Steelers and a ticket to the National Football League playoffs on Sunday.
The victory was the Bengals' (9-6) first over their bitter AFC North rivals in six meetings and eliminated the Steelers (7-8) from post-season contention spoiling the holiday mood for the capacity crowd who had arrived at Heinz Field expecting to kick off the Christmas holidays with a win.
"It's very satisfying, quite honestly," Brown told reporters. "I've had some bad runs against Pittsburgh, including a bad game with the Rams last year, so really I just needed to exercise some demons.
"It's a good Christmas."
The outcome marks the first since 2006 that the Steelers will enter the final game of the regular season with no chance to make the playoffs while the Bengals earned back-to-back post-season berths for the first time in 30 years.
"It was not our day, not our year, not enough physical play at the moment," said Steelers coach Mike Tomlin. "It sounds like a broken record but the reality, as we sit here, we accept responsibility for it. ...
"It's disheartening because we had chances."
As is typical when the Steelers and Bengals clash, the meeting was a bruising defensive battle, the Cincinnati defense accounting for the Bengals' only touchdown when Leon Hall intercepted Ben Roethlisberger in the opening quarter and returned the ball 17 yards for the score.
Roethlisberger connected with Antonio Brown on a 60-yard touchdown in the third quarter to get Pittsburgh back into the contest but made a critical mistake with 14 seconds to play, throwing his second interception that was returned to the Steelers 46.
Bengals quarterback Andy Dalton then hooked up with A.J. Green on a 21-yard pass to set up Brown's game-winning kick.
Pittsburgh had a chance to take control with 1:47 left on the clock when Shaun Suisham lined up to attempt a 53-yard field goal into the teeth of Heinz Field's notorious swirling winds. But the kick fell short, giving the Bengals the ball.
Brown had missed on a 56-yard attempt on the previous series as both teams struggled to generate offence.
Roethlisberger, who was intercepted in overtime in last Sunday's loss to the Dallas Cowboys, completed 14-of-28 passes for 220 yards but was under pressure all afternoon from a tenacious Bengals pass rush that sacked the Pittsburgh quarterback four times.
Pittsburgh's top-ranked defense surrendered just 14 yards rushing while Dalton completed just 24-of-41 attempts for 278 yards with no touchdowns and two interceptions. Almost half of Dalton's completions went to Green, who hauled in 10 catches for 116 yards.
"It's a big win for the city of Cincinnati," said Bengals coach Marvin Lewis. "We did a good job of hanging in there and not flinching and making big plays.
"There were a lot of big plays today. A lot of guys came up with big plays.
"That's what you have to keep having all the time.

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Column: NFL's 'nice little story' gets even better

The Colts were a nice little story six weeks ago.
That's when a team that started 1-2 and had "rebuilding" written all over it responded to the loss of rookie coach Chuck Pagano with one of those how-did-they-do-it winning streaks — and that was supposed to be that. Considering the Colts finished 2-14 a year ago, then said goodbye to Peyton Manning and turned the rest of the roster upside-down, the season was already a success.
Fans in Indianapolis knew can't-miss rookie quarterback Andrew Luck was bound to improve, but explaining the 4-1 run after Pagano left the team to deal with leukemia was tough enough, especially because there was precious little room elsewhere for improvement. The Colts still can't run the ball, and they still start rookies at nearly every one of the skill positions. The defense? Don't ask.
Yet the story just got better.
Indianapolis was outgained by more than 200 yards Sunday in Kansas City. The Colts lost the time-of-possession battle but still won 20-13 and locked up an improbable playoff spot.
"Mission accomplished," Colts interim coach Bruce Arians said, as though he expected as much. "That's all I can say. It's a fantastic feeling."
And the story is about to get better still.
Pagano has been cleared to return, perhaps as early as Monday. He might have been the only guy in the entire organization who was expecting great things when he took over, but an entire squad and staff have come over to his side in his absence.
Arians, who stepped in for his close pal and consulted Pagano throughout his ordeal, is a candidate for coach of the year. And Luck, who threw for a modest 205 yards and a touchdown, still made up a lot of ground in his race against similarly impressive first-year quarterback starters Robert Griffin III of Washington and Russell Wilson of Seattle because of something he didn't do — throw a costly interception.
Even the much-maligned defense got into the act, with Darius Butler picking off Brady Quinn's pass and returning it for a touchdown five plays into the game, and whole unit rising up to stuff Quinn on a quarterback sneak late in the game, turning the ball back over to Luck in time for a rookie-record seventh winning drive.
"Whenever teams go for it on fourth down, the defense takes it personal," Indianapolis end Dwight Freeney said.
If the defensive stand was a surprise, what Luck did with the opportunity wasn't. The Colts' running game is still little more than a chance for Luck to catch his breath, and despite the emergence of receivers T.Y. Hilton and Dwayne Allen, just about everybody in Arrowhead Stadium was looking at veteran wideout Reggie Wayne. So was Luck, who saw him cut through a seam in the middle of the defense, then fired a high, hard pass that Wayne latched onto in the end zone for a 7-yard score.
Luck owns the rookie records for most yards, most 300-yard games, most winning drives, and the strike to Wayne put him closer to the rookie record of 26 touchdown passes set by none other than Manning. And just like Manning, to whom Luck was often compared before the season, the rookie knew exactly what to say about all of them.
"I think it definitely means something. After the season I'll have a chance to reflect back on it. Obviously, it is nicer to be in the playoffs and know that," Luck said, "but it is nice to have a couple records that I'm sure will be broken in the next year."
What he said next, though, came as something of a surprise.
"I think we were confident in the locker room from day one. I remember going in, trying to gauge the feel of what it was going to be like. Guys were confident on this team, like Reggie Wayne who had never missed a playoff until that year. Dwight Freeney, Robert Mathis, those guys are winners, they know how to win, so I think they imparted some of that magic, if you will, on some of the younger guys, the newer guys.
"It was a confident bunch, we never prepared to lose a game, we always prepared to win, and I guess that worked out."
It's still a mystery exactly how, but Luck wasn't going to spend much more time dwelling on that than he did on accumulating records.
"I guess it will be an extra special Christmas," he said, referring to Pagano's return. "There will be a lot of emotions when he comes through the door. It's funny, there are probably 10 guys who have never met Chuck on the team, but I think they will be emotional too because I'm sure they feel like they know him, too, because his presence is felt so much in the building out here, and wherever we go.

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Luck sets rookie record, rookie PK sets NFL mark

Andrew Luck has broken the NFL rookie record for yards passing, and rookie kicker Blair Walsh has broken the league mark for 50-yard plus field goals in a season.
On a Sunday featuring a slew of records, Luck topped Cam Newton's year-old mark for yards passing in the first half of Indianapolis' win at Kansas City. Newton's record was 4,051 yards. Luck entered the game needing 74 yards to break the mark. He finished with 205 yards and now has 4,183 yards with a game against Kansas City remaining in the regular season.
"Yes, it definitely means something," Luck said of the record. "And after the season I'll have a chance to look back and reflect on it. It's nice; obviously it's nicer to be in the playoffs but it's nice to have a couple records, which I'm sure will be broken in the next year."
Minnesota's Walsh kicked a 56-yard field goal in the second quarter against Houston, giving him a record ninth field goal of 50 yards or more.
Also, Redskins kicker Kai Forbath set the NFL record for consecutive field goals to begin a career with 17 straight. He had field goals of 45 and 42 yards in the first half against the Eagles. New Orleans' Garrett Hartley had 16 straight.
On Saturday, Detroit's Calvin Johnson broke Jerry Rice's single-season yards receiving record, and is at 1,892 with a game left. He also became the only NFL player with 100 yards receiving in eight straight games, and with 10-plus receptions in four straight games.

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Anthony leads Knicks over Timberwolves

Carmelo Anthony took over in the last two minutes to carry the New York Knicks to a 94-91 victory over the Minnesota Timberwolves on Sunday.
Anthony, who was ejected during Friday's loss to the Chicago Bulls, finished with 33 points, scoring 19 in the fourth quarter, as the Knicks came from behind to secure the home win.
"We didn't want to look back at this game later in the season and say this was a game we shouldn't have lost," Anthony told reporters. "We picked it up defensively in the second half and we won the game."
New York trailed for virtually the entire game before Anthony went on an 8-0 run in the final two minutes to put the Knicks up by four.
Anthony scored the Knicks' last 12 points to seal the win.
"That was kind of an MVP performance at the end. He stepped up and made the plays," said New York coach Mike Woodson. "When he got that fifth foul called, it's like a light went off and he made the plays big-time."
J.R. Smith scored 19 off the bench for New York (20-7) while Tyson Chandler had 16 and nine rebounds as the Knicks maintained their 5 1/2 game lead in the Atlantic Division.
Nikola Pekovic recorded 21 points and 17 rebounds to lead the Timberwolves (13-12), who were missing All Star Kevin Love due to an eye ailment.
Minnesota went up by nine at half-time and led by 11 midway through the third before New York made their move.
Chandler scored 10 in the third quarter as the Knicks cut the deficit to two heading into the fourth.
New York are still without forward Amar'e Stoudemire, who has been out the entire season with a knee injury but has recently started practicing with the team.
Despite his absence, the Knicks are off to a strong start and have a 5 1/2-game lead in the Atlantic Division.

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Alexza's agitation drug gets FDA approval

Alexza Pharmaceuticals Inc said the U.S. health regulators approved Adasuve, making it the first treatment for schizophrenia and bipolar disorder that can be inhaled. Adasuve, which delivers an older antipsychotic drug called loxapine, passes through the lungs and into the bloodstream faster than a typical pill. Loxapine is available as an oral drug for schizophrenia. The company said the product will include a boxed safety warning about potentially dangerous side effects including the potential for fatal bronchial spasms in people with asthma or chronic obstructive pulmonary disorder and a higher risk of death in elderly people with dementia-related psychosis. Adasuve use will be restricted to mitigate the potential harm of bronchial spasms, Alexza said. The FDA also required Alexza to conduct a large post- marketing clinical trial of patients to assess the real-world use of the drug. "We believe that the ability to deliver medications rapidly and non-invasively will be important for patients and the professionals who care for them," Chief Executive Thomas King said in the statement. Three injectable drugs, Bristol-Myers Squibb's Abilify, Eli Lilly's Zyprexa and Pfizer Inc's Geodon, are currently approved to calm patients with schizophrenia or bipolar disorder. Adasuve, Alexza's most advanced drug, will be available for commercial launch early in the third quarter of 2013, the company said. Earlier this month, European health regulators recommended approval of Adasuve. The FDA denied approval to Adasuve in May, after it found deficiencies at the company's Mountain View, California manufacturing facility during an inspection. The company's shares fell 12 percent in the after market trading after the trade was halted at $5.79 before the drug- approval announcement.

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Predicting who's at risk for violence isn't easy

It happened after Columbine, Virginia Tech, Aurora, Colo., and now Sandy Hook: People figure there surely were signs of impending violence. But experts say predicting who will be the next mass shooter is virtually impossible — partly because as commonplace as these calamities seem, they are relatively rare crimes. Still, a combination of risk factors in troubled kids or adults including drug use and easy access to guns can increase the likelihood of violence, experts say. But warning signs "only become crystal clear in the aftermath, said James Alan Fox, a Northeastern University criminology professor who has studied and written about mass killings. "They're yellow flags. They only become red flags once the blood is spilled," he said. Whether 20-year-old Adam Lanza, who used his mother's guns to kill her and then 20 children and six adults at their Connecticut school, made any hints about his plans isn't publicly known. Fox said that sometimes, in the days, weeks or months preceding their crimes, mass murderers voice threats, or hints, either verbally or in writing, things like "'don't come to school tomorrow,'" or "'they're going to be sorry for mistreating me.'" Some prepare by target practicing, and plan their clothing "as well as their arsenal." (Police said Lanza went to shooting ranges with his mother in the past but not in the last six months.) Although words might indicate a grudge, they don't necessarily mean violence will follow. And, of course, most who threaten never act, Fox said. Even so, experts say threats of violence from troubled teens and young adults should be taken seriously and parents should attempt to get them a mental health evaluation and treatment if needed. "In general, the police are unlikely to be able to do anything unless and until a crime has been committed," said Dr. Paul Appelbaum, a Columbia University professor of psychiatry, medicine and law. "Calling the police to confront a troubled teen has often led to tragedy." The American Academy of Child & Adolescent Psychiatry says violent behavior should not be dismissed as "just a phase they're going through." In a guidelines for families, the academy lists several risk factors for violence, including: —Previous violent or aggressive behavior —Being a victim of physical or sexual abuse —Guns in the home —Use of drugs or alcohol —Brain damage from a head injury Those with several of these risk factors should be evaluated by a mental health expert if they also show certain behaviors, including intense anger, frequent temper outbursts, extreme irritability or impulsiveness, the academy says. They may be more likely than others to become violent, although that doesn't mean they're at risk for the kind of violence that happened in Newtown, Conn. Lanza, the Connecticut shooter, was socially withdrawn and awkward, and has been said to have had Asperger's disorder, a mild form of autism that has no clear connection with violence. Autism experts and advocacy groups have complained that Asperger's is being unfairly blamed for the shootings, and say people with the disorder are much more likely to be victims of bullying and violence by others. According to a research review published this year in Annals of General Psychiatry, most people with Asperger's who commit violent crimes have serious, often undiagnosed mental problems. That includes bipolar disorder, depression and personality disorders. It's not publicly known if Lanza had any of these, which in severe cases can include delusions and other psychotic symptoms. Young adulthood is when psychotic illnesses typically emerge, and Appelbaum said there are several signs that a troubled teen or young adult might be heading in that direction: isolating themselves from friends and peers, spending long periods alone in their rooms, plummeting grades if they're still in school and expressing disturbing thoughts or fears that others are trying to hurt them. Appelbaum said the most agonizing calls he gets are from parents whose children are descending into severe mental illness but who deny they are sick and refuse to go for treatment. And in the case of adults, forcing them into treatment is difficult and dependent on laws that vary by state. All states have laws that allow some form of court-ordered treatment, typically in a hospital for people considered a danger to themselves or others. Connecticut is among a handful with no option for court-ordered treatment in a less restrictive community setting, said Kristina Ragosta, an attorney with the Treatment Advocacy Center, a national group that advocates better access to mental health treatment. Lanza's medical records haven't been publicly disclosed and authorities haven't said if it is known what type of treatment his family may have sought for him. Lanza killed himself at the school. Jennifer Hoff of Mission Viejo, Calif. has a 19-year-old bipolar son who has had hallucinations, delusions and violent behavior for years. When he was younger and threatened to harm himself, she'd call 911 and leave the door unlocked for paramedics, who'd take him to a hospital for inpatient mental care. Now that he's an adult, she said he has refused medication, left home, and authorities have indicated he can't be forced into treatment unless he harms himself — or commits a violent crime and is imprisoned. Hoff thinks prison is where he's headed — he's in jail, charged in an unarmed bank robbery.

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Hepatitis C tests continue after NH tech's arrest

Hospitals across the country recommended hepatitis C testing for about 7,900 patients last summer after a traveling medical worker was accused of stealing drugs and infecting patients with tainted syringes in New Hampshire. But five months later, nearly half of those who were possibly exposed to the liver-destroying disease in other states have yet to be tested. Described by prosecutors as a "serial infector," David Kwiatkowski is accused of stealing syringes of the powerful painkiller fentanyl from the cardiac catheterization lab at New Hampshire's Exeter Hospital and replacing them with saline-filled syringes tainted with his own blood. In jail since his arrest in July, he pleaded not guilty to 14 federal drug charges earlier this month and is expected to go to trial next fall. Before April 2001, when he was hired in New Hampshire, Kwiatkowski worked as a traveling cardiac technologist in 18 hospitals in seven states, moving from job to job — despite being fired twice over allegations of drug use and theft. Thirty-two people in New Hampshire have been diagnosed with the same strain of hepatitis C that Kwiatkowski carries, along with six in Kansas, five in Maryland and one in Pennsylvania. At least 3,700 people outside New Hampshire have yet to be tested, hospitals and public health officials told The Associated Press. For example, in Michigan, where Kwiatkowski grew up and started his career, about 2,300 patients at five hospitals were notified that they may have been exposed to hepatitis C by Kwiatkowski. As of early December, only about 500 had gone in for testing, none of whom were diagnosed with a strain linked to the New Hampshire outbreak, according to the Michigan Department of Community Health. In Pennsylvania, 2,280 patients at the University of Pittsburgh Medical Center Presbyterian were notified that they should get tested, but only 840 have, one of whom was diagnosed with a matching strain of hepatitis C. Kwiatkowski was fired a few weeks into his temporary job at UPMC in 2008 after a co-worker accused him of swiping a fentanyl syringe from an operating room and sticking it down his pants. Citing a lack of evidence, hospital authorities didn't call police, and neither the hospital nor the medical staffing agency that placed him in the job informed the national accreditation organization for radiological technicians. Within days, Kwiatkowski was starting a new job at the Baltimore VA Medical Center, where one patient also has since been diagnosed with hepatitis C linked to Kwiatkowski. Though the VA center initially said it had identified 168 patients who may have been exposed, that number was later lowered, and 68 patients ultimately were tested. Two other Maryland hospitals where Kwiatkowski worked also have completed their testing, with no diagnosed cases of hepatitis C matching Kwiatkowski. But at the fourth, The Johns Hopkins Hospital in Baltimore, four patients have been diagnosed with the strain of disease linked to Kwiatkowski. About 500 of the 1,567 patients notified by Johns Hopkins have yet to be tested, according to hospital spokeswoman Kim Hoppe. Kwiatkowski had been referred by a staffing agency that assured Johns Hopkins that it had followed a vigorous vetting process, Hoppe said. He worked there for two 13-week stints, from July 2009 to January 2010. Saint Francis Hospital in Poughkeepsie, N.Y., where Kwiatkowski worked in late 2007 and early 2008, notified and tested 31 patients without finding any linked cases to Kwiatkowski. In Kansas, nearly all of the 416 patients who may have been exposed at Hays Medical Center have been tested and six have been diagnosed with infections linked to the New Hampshire outbreak. There have been no cases linked to Kwiatkowski in Arizona, where about 300 patients from two hospitals have been asked to get tested and about 280 have done so. Kwiatkowski worked at Maryvale Hospital in Phoenix in 2009 and the Arizona Heart Hospital in 2010. He was fired from the latter job after 10 days after a co-worker found him passed out in a bathroom stall with a stolen fentanyl syringe floating in the toilet. That incident was reported to police, Kwiatkowski's staffing agency, a state regulatory board and the national accreditation organization, but the accreditation group dropped its inquiry after learning police hadn't filed charges. Days later, Kwiatkowski landed a new job filling in for striking technicians at Temple University Hospital in Philadelphia. That hospital has recommended testing for 312 patients but won't say how many have followed through or have been diagnosed with hepatitis C. A hospital spokesman referred questions to the city health department, which did not return calls. Testing also is still under way in the last place Kwiatkowski worked before heading to New Hampshire — Houston Medical Center in Warner Robins, Ga. According to the hospital, fewer than 100 people have yet to be tested, and there haven't been any cases yet linked to Kwiatkowski. In New Hampshire, where about 3,300 patients were tested, Kwiatkowski is charged with seven counts of illegally obtaining drugs and seven counts of tampering with a consumer product, though prosecutors have said further charges are possible. Although New Hampshire cannot charge him for possible violations in other states, it can use evidence gathered in those jurisdictions in its trial, U.S. Attorney John Kacavas said. Other states are waiting to see the outcome of New Hampshire's case before deciding whether to file charges, he said. "We continue to reach out to other states affected by this matter," Kacavas said this week. "Other health organizations and departments continue to do their work in their states, but nothing has changed in the sense that our prosecution will go forward. At this point, we are the only prosecution in the country, and we'll see how it rolls out.

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FDA warns doctors of counterfeit Botox

Federal regulators have warned more than 350 medical practices that Botox they may have received from a Canadian supplier is unapproved and could be counterfeit or unsafe. The Food and Drug Administration said in a letter sent last month, a letter released publicly last week, that batches of the wrinkle treatment shipped by suppliers owned by pharmacy Canada Drugs have not been approved by the FDA and that the agency cannot assure their effectiveness or their safety. The FDA said Canada Drugs was previously tied to shipping unapproved and counterfeit cancer drugs. The agency warned doctors about buying drugs from sources other than licensed U.S. pharmacies. It is the fifth warning the agency has made this year about foreign suppliers providing unapproved drugs. In February, the agency warned 19 medical practices that they had received a counterfeit version of the cancer drug Avastin. On three more occasions the FDA issued similar warnings about counterfeit Avastin and Altuzan, another brand name for the same drug. The alerts were also primarily targeted at drugs distributed by Canada Drugs. A request for comment from the drug distributor was not immediately returned. Drug shortages increased the financial incentives for some pharmacies to provide counterfeit or illegally imported drugs. The drugs subject to warnings have all been injectable treatments typically distributed through medical practices and not directly to patients. In October, the FDA ordered operators of about 4,100 websites to immediately stop selling unapproved medications to U.S. consumers. The vast majority of those sites were operated by Canada Drugs. The site was still operating Friday. Genuine Botox is made by Allergan Inc., based in Irvine, Calif. Avastin is made by Roche Holding AG's Genentech unit.

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Little change in overtreatment at doctors' offices

Although some Americans are getting more of beneficial treatments that were underused in the past, including drugs for heart disease, others are still being overtested or overtreated for a range of conditions, according to a new study. Researchers found U.S. doctors' offices made progress on six of nine "quality indicators" for recommended and underused therapies but only scaled back on two of 11 unnecessary and potentially harmful health services. Those findings reflect a growing concern over skyrocketing health care costs - and the realization that doctors and hospitals are going to have to find places where services can be scaled back. "We all know that we need to do something about it, and one component of the high health care costs is the overuse and misuse of therapies and interventions," said Dr. Amir Qaseem, director of clinical policy at the American College of Physicians. It's not about getting rid of services that are too expensive, he told Reuters Health, but evaluating what current tests and treatments may offer little value for certain patients. For example, two overuse indicators included in the new analysis are screening men age 75 and up for prostate cancer and screening women 75 and older for breast cancer. "For men who are getting screened over the age of 75, the likely benefit doesn't happen within a patient's lifetime," Qaseem said, because prostate cancer is often very slow-growing. And that's assuming prostate specific antigen (PSA) tests are beneficial at all. Regardless of a man's age, however, the tests can still lead to invasive biopsies that come with side effects such as a risk of incontinence and impotence. "We really need to start looking at some of these services that may be harmful," added Qaseem, who wasn't involved in the new research. The findings are based on nationally representative studies of adult care in outpatient offices, conducted by the Centers for Disease Control and Prevention. Data came from 79,083 office visits in 1998-1999 and 102,980 visits in 2008-2009. During that span, the use of many recommended therapies improved. For example, 28 percent of people with coronary artery disease were given aspirin in 1998-1999, compared to almost 65 percent a decade later. Likewise, the use of statins more than doubled in those same patients, from 27 percent to 59 percent. In people with diabetes, statin prescriptions increased from 12 percent to 36 percent. However, there was little change in rates of unnecessary and overused services, including some types of cancer screening for older adults or x-rays and urine tests done as part of a general check-up. Two of those overuse indicators improved: cervical cancer screening for women over 65 dropped from 3 percent to 2 percent, and unnecessary antibiotic prescribing for asthma flare-ups fell from 22 percent to 7 percent. On the other hand, rates of prostate cancer screening for older men increased, from between 3 and 4 percent to almost 6 percent, according to findings published Monday in the Archives of Internal Medicine. The lead author on the study from New York's Mount Sinai School of Medicine, Dr. Minal Kale, said the set of quality indicators her team used doesn't necessarily represent all tests and treatments provided in outpatient care. And she added that the overuse of medical services is a complicated issue. "Culturally, there's a lot of resistance to limiting access to health care services because it quickly becomes politicized," Kale told Reuters Health. "The question about overuse really needs to come back to quality. It's about quality of the care that we're delivering to patients." The goal, she said, is to "increase the value and the quality of our health care system while also paying attention to the costs."

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Rapper 'Fat Joe' admits evading taxes

Rap star "Fat Joe" faces up to two years in prison after pleading guilty Thursday to failing to pay taxes on nearly $3 million in income over two years. The performer, whose real name is Joseph Cartagena, entered the plea in federal court in New Jersey because some of the companies he earns money from are incorporated there. The 42-year-old Miami Beach, Fla., resident entered pleas to two counts covering years 2007 and 2008 but his sentencing will take into consideration the government's initial allegation that he failed to pay income taxes for years 2007 through 2010. Federal prosecutors said the total tax loss to the government for those four years was $718,038. Cartagena lawyer Jeffrey Lichtman said his client "had already taken steps to resolve this situation" before he was charged. He said the rapper hoped to pay back the taxes by the time of his sentencing April 3.

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Grammy nominee Bobby Sanabria feels like a winner

Bobby Sanabria already feels like a winner. The Latin jazz musician, who led the protest against the Recording Academy when it downsized from 109 to 78 categories last year, is nominated for best Latin jazz album — one of the awards that had been eliminated but returns at the awards show next year. "We're very proud," Sanabria said in a recent interview. "It just places emphasis on the importance of this uniquely American art form. ... Of all the forms of music that are still getting recognition from the Grammys, this is one of the most disenfranchised forms because it isn't part of mainstream culture." The Recording Academy announced in June that it would reinstate the best Latin Jazz album award and added two others, bringing the total number of awards 81. Sanabria's nomination in the category for "Multiverse," along with his Big Band, is his third time competing in the field. His band's song, "Afro-Cuban Jazz Suite for Ellington," is also nominated for best instrumental arrangement; the nomination goes to arranger Michael Philip Mossman. Bronx-born Sanabria said he's excited that the best Latin jazz album was restored, but he hopes the others come back as well. "CD sales are down, so the more categories we have, it's just good business," he said. The Academy shook up the music industry when it announced in April 2011 that it would downsize its categories to make the awards more competitive. That meant eliminating categories by gender, so men and women compete in the same vocal categories. Artists like Herbie Hancock, Paul Simon and Bill Cosby complained, and Sanabria led the group that filed a lawsuit, which was dismissed. The 55-year-old drummer and percussionist said that the Grammys cut is a sign of the dying appreciation of jazz and blues music in American culture. "We live in age now where DJs are more respected than musicians and I have nothing against DJs . but there's something to be said for the artistry of a human being taking a musical instrument and performing at a virtuosic level on it, and it takes years of dedication," he explained. "I read something that in New York City they're having trouble filling the demand for DJs for New Year's Eve, and that used to be the night all musicians worked. That isn't the case anymore and something needs to be changed in the culture, and the Grammys can help in that respect with categories like (best Latin jazz album) . and the classical music categories." Sanabria's latest album is a mixture of sounds, and he said he has his parents to thank for diversifying his musical exposure. He wants to win the Grammy so that they can witness it. "(They are in) their eighties now and they're not in good health (and) they were the impetus for me," he said. Among his competition for best Latin jazz album, Sanabria will battle one of his students from New York's The New School, Manuel Valera of the New Cuban Express. He said he's excited to see his student get this kind of recognition, and hopes other young adults will learn to appreciate jazz music's importance. On Feb. 8 and Feb. 9, a day before the Grammy Awards in Los Angeles, Sanabria is performing a concert special — "Family Concert: What is Latin Jazz?" — at Jazz at Lincoln Center in New York. "Without blues and jazz, you have nothing. There's no Beyonce, there's no Jay-Z, there's no Katy Perry, there's no Aerosmith," he said. "It's the foundation of American music and it's sad that it isn't being taught as part of the history curriculum at every public school."

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Global doomsday hot spots draw believers, revelers

Though the Mayans never really predicted that the world would end on Friday, some New Agers are convinced that humanity's demise is indeed imminent. Or at least that it's a good excuse for a party. Believers are being drawn to spots where they think their chances of survival will be better, and accompanying them are the curious, the party-lovers and people wanting to make some money. Here are some of the world's key doomsday destinations and other places marked by fear and fascination. MEXICO About 1,000 self-described shamans, seers, stargazers, crystal enthusiasts, yogis, sufis and swamis are gathering in a convention center in the city of Merida on the Yucatan peninsula about an hour and a half from the Mayan ruins at Chichen Itza, convinced that it was a good start to the coming "New Era," which was supposed to begin around 5 a.m. local time Friday. These are not people who believe the world will end on Friday: the summit is scheduled to run through Dec. 23. Instead, participants say, they want to celebrate the birth of a new age. Meanwhile, Mexico's self-styled "brujo mayor," or chief soothsayer, Antonio Vazquez Alba, who warned followers to stay away from all gatherings on Dec. 21. "We have to beware of mass psychosis" that could lead to stampedes or "mass suicides, of the kind we've seen before," he said. Also, organizers of Yucatan's broader Mayan Culture Festival saw the need to answer some of the now-debunked idea that the Mayas, who invented an amazingly accurate calendar almost 2,000 years ago, had somehow predicted the end of the world. The Yucatan state government asked a scientist to talk about the work of Large Hadron Collider in Switzerland to debunk the idea it could produce world-ending rogue particles. FRANCE According to one rumor, a rocky mountain in the French Pyrenees will be the sole place on earth to escape destruction. A giant UFO and aliens are said to be waiting under the mountain, ready to burst through and spirit those nearby to safety. But here is bad news for those seeking salvation: French gendarmes, some on horseback, are blocking outsiders from reaching the Bugarach peak and its village of some 200 people. One believer, Ludovic Broquet, a 30-year-old plumber, made his way to the mountain after a year of preparation, hoping to find a "gateway, the vortex that will open up here (at) the end of the world." Local residents, instead, are skeptical — and angry at having their peace disturbed. "What is going on here is the creation of an urban legend," fumed resident Michele Pous, who blamed those who spread Internet rumors. "They created a media frenzy, they created a false event, they manipulated people." RUSSIA For $1,500, a museum is offering salvation from the world's end in former Soviet dictator Josef Stalin's underground bunker in central Moscow — with a 50 percent refund if nothing happens. The bunker, located 65 meters (210 feet) below ground, was designed to withstand a nuclear attack. Now home to a small museum, it has an independent electricity supply, water and food — but no more room, because the museum has already sold out all 1,000 tickets. BRITAIN Hundreds of people have already converged on Stonehenge for an "End of the World" party that coincides with the Winter Solstice. Arthur Uther Pendragon, Britain's best-known druid, said he was anticipating a much larger crowd than usual at Stonehenge this year. But he doesn't agree that the world is ending, noting that he and fellow druids believe that things happen in cycles. "We're looking at it more as a new beginning than an end," he said. "We're looking at new hope." Meanwhile, end-of-days parties will be held across London on Friday. One event billed as a "last supper club" is offering a three-course meal served inside of an "ark." SERBIA Some Serbs are saying to forget that sacred mountain in the French Pyrenees. The place to go Friday will be Mount Rtanj, a pyramid-shaped peak in Serbia already drawing cultists. A local legend has it that the mountain once swallowed an evil sorcerer who will be released on doomsday in a ball of fire that will hit the mountain top. The inside of the mountain will then open up, becoming a safe place to hide as the sorcerer goes on to destroy the rest of the world. In the meantime, some old coal mine shafts have been opened up as safe rooms for the dozens who have arrived already. "We got calls from as far away as Holland from people trying to seek shelter," said Vlada Minic, a local villager. "They are asking to be as close as possible to the mountain." TURKEY A small Turkish village known for its wines, Sirince, has also been touted as the only place after Bugarach that would escape the world's end. But on Thursday there were more journalists and security officials present there than cultists — to the great disappointment of local restaurateurs and souvenir shop owners. Nobody was quite sure where Sirince's alleged powers to survive the Mayan doomsday come from, but the idyllic village in western Turkey is close to an area where the Virgin Mary is believed to have lived her final days, and some New Agers reportedly believe the region has a positive aura. For months, local business owners have been promoting the village and even produced wines with special labels to commemorate the event. ITALY Another spot said to be spared: Cisternino, in southern Italy, plans a big party Friday with hot-air balloons and music in the main piazza. "Nobody will want to sleep anyway as they await the end of the world," Mayor Donato Baccaro was quoted as saying in the newspaper La Stampa on Wednesday. Though Baccaro goes on to say he doesn't really believe the end is coming, hundreds have reportedly booked hotel rooms. CHINA A fringe Christian group has been spreading rumors about the world's impending end, prompting Chinese authorities to detain more than 500 people this week and seize leaflets, video discs, books and other material. Those detained are reported to be members of the group Almighty God, also called Eastern Lightning, which preaches that Jesus has reappeared as a woman in central China. Authorities in the province of Qinghai say they are waging a "severe crackdown" on the group, accusing it of attacking the Communist Party and the government. UNITED STATES For some, doomsday will be a chance for mockery. Giorgio A. Tsoukalos, producer and host of the History Channel's "Ancient Aliens" program, is throwing a party in New Orleans on Friday where he will descend onstage in a mock spaceship. Tsoukalos is a leading proponent of the idea that ancient myths arose from visits by alien astronauts, an idea rejected by many mainstream researchers. Still, Tsoukalos scoffs at the idea that the world will come to an end Friday.

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Smallest state goes big on Miss Universe pride

The city of Cranston is known — sort of — for being the one-time home of the Narragansett Brewing Company, and it scored a mention in the Jim Carrey flick "Dumb and Dumber." But the city has suddenly found itself at the center of the universe. The nation's smallest state has gone big on pride after Cranston native Olivia Culpo snagged the Miss Universe title on Wednesday night in Las Vegas, beating out 88 other women from six continents to bring the title back to the U.S. for the first time since 1997. Cranston Mayor Allan Fung calls it "mind-boggling" to have his city of 80,000 residents, the third largest in Rhode Island, put on the map for an international audience. He says Culpo's win is inspirational for the city, state and nation. "To have Olivia perform the way she did, with the poise that she did, coming from where she came from, it provides this really feel good moment," he said Thursday. "She's going to be a wonderful ambassador for Cranston in particular, her hometown, but our state and our country." Fung gave the 20-year-old Boston University student a key to the city after she was crowned Miss USA in June, the first time anyone from Rhode Island had won the title. A tree was planted in her honor at City Hall, and a band of students from local high schools played. Culpo herself is an accomplished cellist. Fung said she can have another key to the city — or whatever she wants — given her beauty pageant promotion. "She is the center of the universe," he said. In an interview, Culpo thanked Rhode Islanders for their support and said she loves the state "where it all started." "I think it's cool to put Rhode Island on the map," she said. "To be able to have come from such a small place and to now be representing so much is so cool." Rhode Island residents' nerves were on edge after Culpo tripped slightly during the competition's evening gown segment. She then was asked a question about whether she had ever done something she regretted; she said you learn from every experience, good or bad, but that she regretted picking on her siblings growing up. After she was crowned, congratulations flooded Twitter, including from her former Catholic school in East Providence, St. Mary Academy Bay View; Providence Mayor Angel Taveras; even Rhode Island's most famous seller of its trademark hot wieners, Olneyville New York System. U.S. Rep. David Cicilline sent out a news release including a picture of her in a white dress and her Miss USA sash that was taken outside his Washington, D.C., office. He said she had already made Rhode Island proud but that "her success tonight is an even greater source of pride for the Ocean State." While Culpo will be back in Rhode Island for the holidays, no official appearances as Miss Universe are planned. She said she's looking forward to seeing one of Providence's landmarks while she's home: the giant termite atop a pest control business near downtown.

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Broadway's 'Newsies' recoups its investment

The boys from "Newsies" now have one more thing to dance about — they've made their money back. Disney Theatrical Productions said Thursday that the musical recouped its $5 million investment in just over nine months — faster than any other Disney stage property. The profitability of "Newsies" adds to Disney's high success rate on Broadway. The entertainment giant has had now five hits — including "The Lion King" and "Mary Poppins" — from seven Broadway shows it has produced, way above the 3-in-10 average recoupment of most Broadway shows. "Newsies" is based on the 1899 true story of child newspaper sellers in turn-of-the-century New York who go on strike. A 1992 film, starring Christian Bale, Bill Pullman, Robert Duvall and Ann-Margret, did poorly at the box office but has become something of a cult hit. Composer Alan Menken and lyricist Jack Feldman, who were responsible for the film score, teamed up again to transform "Newsies" into a musical for the stage, reworking the songs and collaborating with the new story writer, Harvey Fierstein, known for his work in "Hairspray," ''La Cage aux folles" and "Torch Song Trilogy." The new musical retains the memorable songs "Santa Fe," ''The World Will Know," ''Carrying the Banner," ''Seize the Day" and "King of New York," but adds a young female reporter to the story and plenty of muscular, high-impact dancing. The show had a critically acclaimed debut in September 2011 at the Paper Mill Playhouse in Millburn, N.J., and opened on Broadway in March at the the Nederlander Theatre, where it won Tony Awards for best score and choreography. So far, nearly 400,000 people have seen the show in its 41 weeks of performances and it has regularly been among the top earning shows each week.

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ICE's NYSE swoop creates derivatives giant

LONDON/NEW YORK (Reuters) - IntercontinentalExchange Inc agreed as part of its $8.2 billion takeover of NYSE Euronext to pay the New York Stock Exchange operator a termination fee of $750 million if it fails to gain antitrust clearances, suggesting a high level of confidence the deal will go through. Big Board parent NYSE could get out of the arrangement for a fee of $300 million if a sweeter deal were to come along, according to a regulatory filing on Friday. ICE failed last year to buy NYSE in a joint bid with Nasdaq OMX Group . At the time, NYSE was involved in year-long pursuit to sell itself to Frankfurt's Deutsche Bourse. In the end, regulators killed both deals, saying they would be anti-competitive. On its own, Atlanta-based ICE lacks the massive equities operations of Nasdaq or Deutsche Bourse, so there is less overlap between the two exchanges, antitrust lawyers said, making regulatory approval far more likely. Some in the industry have suggested that CME Group could table a competing offer for NYSE, but they said that would not be likely for several reasons, including the break-up fee. People familiar with the deal said other issues include potential antitrust concerns and the fact that under the latest agreement, NYSE's Liffe business will do all its clearing through ICE regardless of whether the deal goes through. "The clearing deal they signed is like a second break-up fee," one of the people said. Also, CME has not been known for making large deals. "It does not seem to be in its DNA," said Adam Sussman, director of research at Tabb Group. NYSE CEO Duncan Niederauer acknowledged a higher bid could come along, but that NYSE would not chase after a deal unless it was almost certain it would pass regulatory muster. "If we did that for another year and at the end we are told, 'we are not going to allow you to do this because of the overlap of your businesses,' we would look beyond foolish," he said in an interview on Thursday. FOUR-WAY BATTLE The deal, announced Thursday, would give 12-year old commodities and energy bourse ICE a powerful presence in Europe's lucrative financial derivatives market through control of NYSE Liffe, Europe's second-largest futures exchange, and a major advantage over U.S.-based rivals CME and Nasdaq. All three want to challenge Deutsche Boerse's European dominance. A shake-up in banking regulation is expected to increase demand sharply for clearing financial derivatives through such exchanges. "The deal would place a bigger and more aggressive competitor on Deutsche Boerse's doorstep," said Richard Perrott, an analyst at Berenberg Bank. Regulatory changes in the wake of the financial crisis are forcing banks to channel derivatives business through clearing houses and regulated exchanges to ensure their risk positions can be better monitored than they were when bank dealers were trading complex contracts directly among themselves. The reforms are expected to be fully operational in Europe in 2014. ICE's takeover of NYSE Liffe will give it an advantage of existing presence in Europe over Chicago-based CME, owner of the world's largest futures market, and New York's Nasdaq, both of which plan to open their own London-based exchanges next year. THE PRIZE While the New York Stock Exchange, an enduring symbol of American capitalism, is NYSE Euronext's prestige business, London's Liffe is the real jewel in the crown. With profits from stock trading significantly eroded by new technology and the rise of other places for investors to trade, the stock market businesses like NYSE are less valuable to ICE. The company has said it will try to spin off NYSE's Euronext European stock market businesses in a public offering. This has generated speculation, which the company has denied, that it may also have little interest in the NYSE trading floor on Wall Street. NYSE made an operating income of $473 million from Liffe in 2011 on revenues of $861 million compared to an income of $533 million on revenues of $1.3 billion from its equities business. ICE's Jeff Sprecher will be CEO of the combined organisation and Duncan Niederauer, the NYSE Euronext CEO, will be president - a post he said he plans to remain in until at least 2014. The two are longtime friends. ICE started out as an online marketplace for energy trading before Sprecher initiated a string of acquisitions, from the London-based International Petroleum Exchange in 2001, to the New York Board of Trade and, most recently, a handful of smaller deals, including a climate products exchange and a stake in a Brazilian clearing house. A combined ICE-NYSE Euronext would leapfrog Deutsche Boerse to become the world's third largest exchange group with a combined market value of $15.2 billion. CME Group has a market value of $17.5 billion, Thomson Reuters data shows.

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Stocks sink after Republicans cancel budget vote

NEW YORK (AP) — Investors sent Washington a reminder Friday that Wall Street is a power player in talks to avoid the "fiscal cliff." Stocks fell sharply after House Republicans called off a vote on tax rates and left federal budget talks in disarray 10 days before sweeping tax increases and government spending cuts are scheduled to take effect. The Dow Jones industrial average lost as much as 189 points before closing down 120.88 points, or 0.9 percent, at 13,190.84. The Standard & Poor's 500 index fell 13.54 points to 1,430.15. The Nasdaq composite index declined 29.38 to 3,021.01. The House bill would have raised taxes on Americans making at least $1 million per year and locked in decade-old tax cuts for Americans making less. Taxes will rise for almost all Americans on Jan. 1 unless Congress acts. House Speaker John Boehner had presented what he called "Plan B" while he negotiated with the White House on avoiding the sweeping tax increases and spending cuts, a combination known as the fiscal cliff. But Boehner scrapped a vote on the bill Thursday night after it became clear that it did not have enough support in the Republican-led House to secure passage. He called on the White House and the Democratic-led Senate to work something out. The market's decline demonstrated that investors' nerves are raw as they await a resolution. "Where we are today, the market would be satisfied with the announcement of a stopgap measure," said Quincy Krosby, a market strategist at Prudential Financial. "The more the clock ticks, the more the market is saying, 'Just give us something.'" Sal Arnuk, a partner at Themis Trading, suggested that the sharp drop in stocks early in the day might have been an overreaction. The Dow was down as much as 189 points, and before the market opened, stock futures suggested a decline of 200 points or more. "It's not a surprise that they weren't able to come to an agreement," he said. I don't think most of Wall Street anticipated that they would come to an agreement." Other markets registered their concern, but the reaction was not extreme. The yield on the benchmark 10-year U.S. Treasury note fell 0.04 percentage point to 1.76 percent. The price of gold, which some investors buy when fear overtakes the market, climbed, but only by 0.9 percent. Gold rose $14.20 to $1,660.10 an ounce. If the full fiscal cliff takes effect, economists say it could drag the United States into recession next year. The impact would be gradual, though, and a recession is not a sure thing. Most people would receive only slightly less money in each paycheck. And the tax increases and spending cuts could be retroactively repealed if a deal comes together after Jan. 1. If budget talks dragged on, many businesses might put off investment or hiring, and consumer spending could suffer. That's why most economists say it would be crucial to reach a deal within roughly the first two months of 2013. "Believe you me," Krosby said, "if you think that there is a recession in the offing you are going to see this market sell off. It's sell off first, ask questions later." It was not the first time that Wall Street worried about the fiscal cliff talks. On the day after the election, when voters returned divided government to power, the Dow dropped 312 points. On Nov. 14, when President Barack Obama insisted on higher tax rates for the wealthy, the Dow dropped 185 points. The sharp drop in stocks Friday was reminiscent of, although much smaller in scale than, what happened Sept. 29, 2008, during the financial crisis. The House defeated a proposed $700 billion bailout of the U.S. financial industry, and the Dow plunged 777 points, its worst one-day decline. Four days later, the House, shaken by what had happened on Wall Street, passed a modified bill. Stocks closed lower Friday in Asia after House Republicans canceled their vote. The Nikkei index in Japan fell almost 1 percent, and Hong Kong's Hang Seng Index dropped 0.7 percent. Stocks were also lower in Europe. Among stocks making big moves: — Walgreen, the nation's largest drugstore chain, slumped $1.24, or 3.3 percent, to $36.31. It filled fewer prescriptions and absorbed costs tied to acquisitions and Superstorm Sandy. The results were worse than financial analysts had been expecting. — BlackBerry maker Research in Motion dropped $2.21, or 15.8 percent, to $11.74. The company said it won't generate as much revenue from telecommunications carriers once it releases the BlackBerry 10. — Nike, the world's largest maker of athletic gear, jumped $6.10, or 6.2 percent, to $105.10. It said strong demand in North America led to a 7 percent increase in revenue in the three months ended Nov. 30, balancing out economic weakness in Europe and a slowdown in growth in China. — Micron Technology dropped 6.9 percent, the biggest decline in the S&P 500 index. The semiconductor maker reported a loss late Thursday as weaker demand for personal computers and an oversupply of certain chips hurt its sales. The stock lost 47 cents to $6.32.

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Titan Advisors withdraws funds from SAC Capital - WSJ

(Reuters) - Titan Advisors LLC has decided to withdraw all of its money from the hedge fund firm SAC Capital Advisors LP, the Wall Street Journal reported on Friday, as SAC faces scrutiny because of several employees linked to insider-trading charges. It's unclear how much money Titan, an asset-management firm based in New York, had invested with SAC for its clients, although it has $3 billion invested in hedge funds overall, according to a March securities filing. In its article, the Journal cited clients who said they were told that Titan would withdraw investments in SAC. The withdrawal is notable because Titan Advisors founder George Fox was one of the early investors in SAC Capital, the Journal said. Fox did not respond to a voicemail message. A spokesman for SAC Capital said the firm did not have a comment. SAC is run by billionaire Steven A. Cohen, and came to prominence in the late 1990s for its outsized returns. The firm has posted returns of roughly 30 percent a year since its inception. But more recently, SAC Capital has garnered attention for employees' run-ins with regulators and criminal authorities investigating insider-trading on Wall Street. On Friday, ex-SAC fund manager Mathew Martoma was indicted by a grand jury in New York, becoming the seventh former SAC employee to be charged or implicated in insider-trading schemes.

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Wall Street ends lower after "fiscal cliff" setback

NEW YORK (Reuters) - U.S. stocks finished lower on Friday after a Republican plan to avoid the "fiscal cliff" failed to gain sufficient support on Thursday night, draining hopes that a deal would be reached before 2013. Still, stocks managed to rebound from the day's lows near the end of the session, and for the week, the three major U.S. stock indexes still ended higher, with the S&P 500 gaining 1.2 percent. Trading was volatile because of waning confidence in the prospect of a deal out of Washington, and in part, as the result of the quarterly expiration of options and futures contracts. The CBOE Volatility Index <.vix> or VIX, the market's favorite barometer of investor anxiety, finished below its session high. Republican House Speaker John Boehner failed to garner enough votes from even his own party to pass his "Plan B" tax bill late on Thursday. It was the latest setback in negotiations to avoid $600 billion in tax hikes and spending cuts that some say could tip the U.S. economy into recession. "The failure with Plan B was disappointing, if not terribly surprising, but now there's a real lack of clarity about what will happen, and markets hate that," said Mike Hennessy, managing director of investments for Morgan Creek in Chapel Hill, North Carolina. The Dow Jones industrial average <.dji> dropped 120.88 points, or 0.91 percent, to 13,190.84 at the close. The Standard & Poor's 500 Index <.spx> fell 13.54 points, or 0.94 percent, to 1,430.15. The Nasdaq Composite Index <.ixic> lost 29.38 points, or 0.96 percent, to 3,021.01. "Amazingly, this sharp decline today may not actually change the technical picture much - unless the decline gets worse," said Larry McMillan, president of options research firm McMillan Analysis Corp, in a research note. For the week, the Dow gained 0.4 percent and the Nasdaq climbed 1.7 percent. On Friday, Herbalife dropped for an eighth straight session. Investor Bill Ackman recently ramped up his campaign against the company. The stock skidded 19.2 percent to $27.27 and has lost more than 35 percent this week. Plan B, which called for tax increases on those who earn $1 million or more a year, was not going to pass the Democratic-led Senate or win acceptance from the White House anyway. But it exposed the reality that it will be difficult to get Republican support for the more expansive tax increases that President Barack Obama has urged. Still, the declines of about 1 percent in the three major U.S. stock indexes suggest that investors do not believe the economy will be unduly damaged by the absence of a deal, said Mark Lehmann, president of JMP Securities, in San Francisco. "You could have easily woken up today and seen the market down 300 or 400 points, and everyone would have said, 'That's telling you this is really dire,'" Lehmann said. "I think if you get into mid-January and (the talks) keep going like this, you get worried, but I don't think we're going to get there." Banking shares, which outperform during economic expansion and have led the market on signs of progress on resolving the fiscal impasse, led Friday's declines. Citigroup Inc fell 1.7 percent to $39.49, while Bank of America slid 2 percent to $11.29. The KBW Banks index <.bkx> lost 1.19 percent. Volatility on Friday was exacerbated in part by "quadruple witching," the quarterly expiration of stock index futures and options, stock options and single stock futures contracts. About 8.59 billion shares changed hands on major U.S. exchanges, more than the daily average of 6.47 billion daily in 2012, in part because of the "quadruple witching" expiration. The day's round of data indicated the economy was surprisingly resilient in November; consumer spending rose by the most in three years and a gauge of business investment jumped. But separate data showed consumer sentiment slumped in December. The S&P Retail Index <.spxrt> fell 1.2 percent. U.S.-listed shares of Research in Motion sank 22.7 percent to $10.91 after the Canadian company, known as the BlackBerry maker, reported its first-ever decline in its subscriber numbers on Thursday alongside a new fee structure for its high-margin services segment.

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Wall Street Week Ahead: A lump of coal for 'Fiscal Cliff-mas'

NEW YORK (Reuters) - Wall Street traders are going to have to pack their tablets and work computers in their holiday luggage after all. A traditionally quiet week could become hellish for traders as politicians in Washington are likely to fall short of an agreement to deal with $600 billion in tax hikes and spending cuts due to kick in early next year. Many economists forecast that this "fiscal cliff" will push the economy into recession. Thursday's debacle in the U.S. House of Representatives, where Speaker John Boehner failed to secure passage of his own bill that was meant to pressure President Obama and Senate Democrats, only added to worry that the protracted budget talks will stretch into 2013. Still, the market remains resilient. Friday's decline on Wall Street, triggered by Boehner's fiasco, was not enough to prevent the S&P 500 from posting its best week in four. "The markets have been sort of taking this in stride," said Sandy Lincoln, chief market strategist at BMO Asset Management U.S. in Chicago, which has about $38 billion in assets under management. "The markets still basically believe that something will be done," he said. If something happens next week, it will come in a short time frame. Markets will be open for a half-day on Christmas Eve, when Congress will not be in session, and will close on Tuesday for Christmas. Wall Street will resume regular stock trading on Wednesday, but volume is expected to be light throughout the rest of the week with scores of market participants away on a holiday break. For the week, the three major U.S. stock indexes posted gains, with the Dow Jones industrial average up 0.4 percent, the S&P 500 up 1.2 percent and the Nasdaq Composite Index up 1.7 percent. Stocks also have booked solid gains for the year so far, with just five trading sessions left in 2012: The Dow has advanced 8 percent, while the S&P 500 has climbed 13.7 percent and the Nasdaq has jumped 16 percent. IT COULD GET A LITTLE CRAZY Equity volumes are expected to fall sharply next week. Last year, daily volume on each of the last five trading days dropped on average by about 49 percent, compared with the rest of 2011 - to just over 4 billion shares a day exchanging hands on the New York Stock Exchange, the Nasdaq and NYSE MKT in the final five sessions of the year from a 2011 daily average of 7.9 billion. If the trend repeats, low volumes could generate a spike in volatility as traders keep track of any advance in the cliff talks in Washington. "I'm guessing it's going to be a low volume week. There's not a whole lot other than the fiscal cliff that is going to continue to take the headlines," said Joe Bell, senior equity analyst at Schaeffer's Investment Research, in Cincinnati. "A lot of people already have a foot out the door, and with the possibility of some market-moving news, you get the possibility of increased volatility." Economic data would have to be way off the mark to move markets next week. But if the recent trend of better-than-expected economic data holds, stocks will have strong fundamental support that could prevent selling from getting overextended even as the fiscal cliff negotiations grind along. Small and mid-cap stocks have outperformed their larger peers in the last couple of months, indicating a shift in investor sentiment toward the U.S. economy. The S&P MidCap 400 Index overcame a technical level by confirming its close above 1,000 for a second week. "We view the outperformance of the mid-caps and the break of that level as a strong sign for the overall market," Schaeffer's Bell said. "Whenever you have flight to risk, it shows investors are beginning to have more of a risk appetite." Evidence of that shift could be a spike in shares in the defense sector, expected to take a hit as defense spending is a key component of the budget talks. The PHLX defense sector index hit a historic high on Thursday, and far outperformed the market on Friday with a dip of just 0.26 percent, while the three major U.S. stock indexes finished the day down about 1 percent. Following a half-day on Wall Street on Monday ahead of the Christmas holiday, Wednesday will bring the S&P/Case-Shiller Home Price Index. It is expected to show a ninth-straight month of gains. U.S. jobless claims on Thursday are seen roughly in line with the previous week's level, with the forecast at 360,000 new filings for unemployment insurance, compared with the previous week's 361,000.

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James and Bosh feel Heat have plenty of room to improve

MIAMI (Reuters) - LeBron James and Chris Bosh feel the defending champion Miami Heat have work to do if they are to reach peak form in time for the National Basketball Association (NBA) playoffs, but both embrace the challenge.
The Heat (16-6) trail only the New York Knicks (19-6) in the Eastern Conference just past the quarter-mark of the NBA's regular season but Bosh is well aware his team is not playing at the same level compared to this point last season.
"No, not right now. We have to pick it up a little bit to catch ourselves from last year," Bosh, Miami's third-leading scorer and top shot-blocker, told Reuters.
"It's a new year, we just have to slowly build and get back to that place. As long as we continue to win games now and then we are primed and ready come playoff time, I'll be happy."
Of Miami's six losses in the 2012-13 season, two have come at the hands of a Knicks team that made some key offseason moves with the hopes of denying the Heat a trip to the NBA Finals.
For Miami, a key issue that needs attention is defense, particularly rebounding. The component of the game was in clear evidence during Tuesday's win over the Minnesota Timberwolves, where the Heat were outrebounded 52-24.
"There are some improvements, we do have to get better at a lot of things - defense, defensive rebounding, three point field goal percentage, we have to do a better job," said Bosh.
The 6-foot 10-inch Bosh, who switched from power-forward to center this season, says having areas to improve on keeps the team from getting complacent throughout the NBA's long, 82-game regular season.
"I'm glad that we have things to work on because, especially coming off a championship win, you don't want to be 'oh, we are a perfect team, it's perfect everything is great,'" said Bosh.
"You want to have something to work on, you don't ever want to get comfortable, you want to feel like someone is chasing you."
'CHALLENGING MYSELF'
Bosh says he applies a "one more for the championship" motivational approach in training and James, the NBA's reigning Most Valuable Player, has certainly taken that notion to heart.
James, who has been pushing himself physically this season by adding extra workouts and cycling to games and shootouts, agrees the Heat have lots of room for improvement.
"Everything, defensively continue to grind, continue to communicate, continue to rebound, offensively don't turn the ball over, be efficient looking for shots," he said.
"Right now we are getting better, we are going to use each and every game, we aren't going to cut any corners to get better, right now.
"We are not where we want to be in April for sure, but that's OK. We don't want to be peaking now, the thing for us is we don't want to be taking steps back".
There are certainly no signs of James going backwards or even easing off - he has scored at least 20 points in every game this season and as well as his cycling, has taken to the gym after defeats, such as this month's home loss to the Knicks.
"I'm just challenging myself. I feel that if I can be in the best condition I can be in that it is going to help the team automatically," said James. "I feel like if I am in the best shape and keeping my game under wraps, then we are going to be a better team."
The Heat visit the Dallas Mavericks later on Thursday and face biggest test of their form yet on Christmas Day when they host the Oklahoma City Thunder in a rematch of last season's final. The Thunder (21-4) own the NBA's best record and are riding a 12-game winning streak.

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