Wall Street rises after Alcoa reports earnings

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


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


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


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


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


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


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


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


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


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


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


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


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


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



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Steroids fallout: No BB Hall for Bonds, Clemens


NEW YORK (AP) — No one was elected to the Hall of Fame this year. When voters closed the doors to Barry Bonds, Roger Clemens and Sammy Sosa, they also shut out everybody else.


For only the second time in four decades, baseball writers failed to give any player the 75 percent required for induction to Cooperstown, sending a powerful signal that stars of the Steroids Era will be held to a different standard.


All the awards and accomplishments collected over long careers by Bonds, Clemens and Sosa could not offset suspicions those feats were boosted by performance-enhancing drugs.


Voters also denied entry Wednesday to fellow newcomers Craig Biggio, Mike Piazza and Curt Schilling, along with holdovers Jack Morris, Jeff Bagwell and Lee Smith.


Among the most honored players of their generation, these standouts won't find their images among the 300 bronze plaques on the oak walls in Cooperstown, where — at least for now — the doors appear to be bolted shut on anyone tainted by PEDs.


"After what has been written and said over the last few years I'm not overly surprised," Clemens said in a statement he posted on Twitter.


Bonds, Clemens and Sosa retired after the 2007 season. They were eligible for the Hall for the first time and have up to 14 more years on the writers' ballot.


"Curt Schilling made a good point, everyone was guilty. Either you used PEDs, or you did nothing to stop their use," Hall of Famer Mike Schmidt said in an email to The Associated Press after this year's vote was announced. "This generation got rich. Seems there was a price to pay."


Biggio, 20th on the career list with 3,060 hits, appeared on 68.2 percent of the 569 ballots, the highest total but 39 votes shy. The three newcomers with the highest profiles failed to come close to even majority support, with Clemens at 37.6 percent, Bonds at 36.2 and Sosa at 12.5.


Other top vote-getters were Morris (67.7), Jeff Bagwell (59.6), Piazza (57.8), Tim Raines (52.2), Lee Smith (47.8) and Schilling (38.8).


"I'm kind of glad that nobody got in this year," Hall of Famer Al Kaline said. "I feel honored to be in the Hall of Fame. And I would've felt a little uneasy sitting up there on the stage, listening to some of these new guys talk about how great they were. ... I don't know how great some of these players up for election would've been without drugs. But to me, it's cheating."


At ceremonies in Cooperstown on July 28, the only inductees will be three men who died more than 70 years ago: Yankees owner Jacob Ruppert, umpire Hank O'Day and barehanded catcher Deacon White. They were chosen last month by the 16-member panel considering individuals from the era before integration in 1947.


"It is a dark day," said Jose Canseco, the former AL MVP who was among the first players to admit using steroids. "I think the players should organize some type of lawsuit against major league baseball or the writers. It's ridiculous. Most of these players really have no evidence against them. They've never tested positive or they've cleared themselves like Roger Clemens."


It was the eighth time the BBWAA failed to elect any players. There were four fewer votes than last year and five members submitted blank ballots.


"With 53 percent you can get to the White House, but you can't get to Cooperstown," BBWAA secretary-treasurer Jack O'Connell said. "It's the 75 percent that makes it difficult."


There have been calls for the voting to be taken away from the writers and be given to a more diverse electorate that would include players and broadcasters. The Hall says it is content with the process, which began in 1936.


"It takes time for history to sort itself out, and I'm not surprised we had a shutout today," Hall President Jeff Idelson said. "I wish we had an electee. I will say that, but I'm not surprised given how volatile this era has been in terms of assessing the qualities and the quantities of the statistics and the impact on the game these players have had."


Bonds, baseball's only seven-time Most Valuable Player, hit 762 home runs, including a record 73 in 2001. He was indicted on charges he lied to a grand jury in 2003 when he denied using PEDs but a jury two years ago failed to reach a verdict on three counts he made false statements and convicted him on one obstruction of justice count, finding he gave an evasive answer.


"It is unimaginable that the best player to ever play the game would not be a unanimous first-ballot selection," said Jeff Borris of the Beverly Hills Sports Council, Bonds' longtime agent.


Clemens, the only seven-time Cy Young Award winner, is third in career strikeouts (4,672) and ninth in wins (354). He was acquitted last year on one count of obstruction of Congress, three counts of making false statements to Congress and two counts of perjury, all stemming from his denials of drug use.


"To those who did take the time to look at the facts," Clemens said, "we very much appreciate it."


Sosa, eighth with 609 home runs, was among those who tested positive in MLB's 2003 anonymous survey, The New York Times reported in 2009. He told a congressional committee in 2005 that he never took illegal performance-enhancing drugs.


Since 1961, the only years the writers didn't elect a candidate had been when Yogi Berra topped the 1971 vote by appearing on 67 percent of the ballots cast and when Phil Niekro headed the 1996 ballot at 68 percent — both got in the following years. The other BBWAA elections without a winner were in 1945, 1946, 1950, 1958 and 1960.


Morris will make his final ballot appearance next year, when fellow pitchers Greg Maddux and Tom Glavine are eligible for the first time along with slugger Frank Thomas.


"Next year, I think you'll have a rather large class, and this year, for whatever reasons, you had a couple of guys come really close," Commissioner Bud Selig said at the owners' meetings in Paradise Valley, Ariz. "This is not to be voted to make sure that somebody gets in every year. It's to be voted on to make sure that they're deserving. I respect the writers as well as the Hall itself. This idea that this somehow diminishes the Hall or baseball is just ridiculous in my opinion."


Players' union head Michael Weiner called the vote "unfortunate, if not sad."


"To ignore the historic accomplishments of Barry Bonds and Roger Clemens, for example, is hard to justify. Moreover, to penalize players exonerated in legal proceedings — and others never even implicated — is simply unfair. The Hall of Fame is supposed to be for the best players to have ever played the game. Several such players were denied access to the Hall today. Hopefully this will be rectified by future voting."


The BBWAA election rules say "voting shall be based upon the player's record, playing ability, integrity, sportsmanship, character, and contributions to the team(s) on which the player played."


An Associated Press survey of 112 eligible voters conducted in late November after the ballot was announced indicated Bonds, Clemens and Sosa would fall well short of 50 percent. The big three drew even less support than that as the debate raged over who was Hall worthy.


Voters are writers who have been members of the BBWAA for 10 consecutive years at any point.


BBWAA president Susan Slusser of the San Francisco Chronicle said she didn't vote for Bonds, Clemens or Sosa.


"The evidence for steroid use is too strong," she said.


As for Biggio, "I'm surprised he didn't get in."


Mark McGwire, 10th on the career home run list with 583, received 16.9 percent on his seventh try, down from 19.5 last year. He got 23.7 percent in 2010 — a vote before he admitted using steroids and human growth hormone.


Rafael Palmeiro, among just four players with 500 homers and 3,000 hits along with Hank Aaron, Willie Mays and Eddie Murray, received 8.8 percent in his third try, down from 12.6 percent last year. Palmeiro received a 10-day suspension in 2005 for a positive test for performance-enhancing drugs, claiming it was due to a vitamin vial given to him by teammate Miguel Tejada.


MLB.com's Hal Bodley, the former baseball columnist for USA Today, said Biggio and others paid the price for other players using PEDs.


"They got caught in the undertow of the steroids thing," he said.


Bodley said this BBWAA vote was a "loud and clear" message on the steroids issue. He said he couldn't envision himself voting for stars linked to drugs.


"We've a forgiving society, I know that," he said. "But I have too great a passion for the sport."


NOTES: There were four write-in votes for career hits leader Pete Rose, who never appeared on the ballot because of his lifetime ban that followed an investigation of his gambling while manager of the Cincinnati Reds. ... Two-time NL MVP Dale Murphy received 18.6 percent in his 15th and final appearance. ... At the July 28 ceremonies, the Hall also will honor Lou Gehrig and Rogers Hornsby among a dozen players who never received formal inductions because of restrictions during World War II. ... Piazza has a book due out next month that could change the view of voters before the next election.


___


AP Sports Writers Dan Gelston, Mike Fitzpatrick, John Marshall and Ben Walker contributed to this report.


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Giant squid filmed in ocean depths for 1st time






TOKYO (AP) — After a hundred dives deep into the Pacific, scientists and broadcasters say they have captured video images of a giant squid in its natural habitat deep in the ocean for the first time.


The three-meter (nine-foot) invertebrate was filmed from a manned submersible during one of 100 dives in the Pacific last summer in a joint expedition by Japanese public broadcaster NHK, Discovery Channel and Japan’s National Museum of Nature and Science.






NHK released photographs of the giant squid this week ahead of Sunday’s show about the encounter. The Discovery Channel will air its program on Jan. 27.


The squid, which was inexplicably missing its two longest tentacles, was spotted in waters east of Chichi Island about 1,000 kilometers (600 miles) south of Tokyo, NHK said. The crew followed it to a depth of 900 meters (2,950 feet).


Little is known about the creature because its harsh environment makes it difficult for scientists to conduct research. Specimens have washed ashore on beaches but never before have been filmed in their normal habitat deep in the ocean, researchers say.


Japanese zoologist Tsunemi Kubodera, who was on board the submersible at the time of the encounter, was able to lure the giant squid with a one-meter (three-foot) -long diamond squid.


All the lights from the submersible were turned off while they waited. At a depth of 640 meters (2,100 feet), the giant squid appeared and wrapped its arms around the bait, eating it for over 20 minutes before letting go.


“What we were able to gain from this experience was the moment of the giant squid attacking its prey — we were able record that,” said Kubodera, who has been researching the giant squid since 2002.


Other scientists involved in the expedition this summer, which logged 400 hours of dives, were American oceanographer and marine biologists Edith Widder and Steve O’Shea from New Zealand.


NHK said a high-definition camera was developed for the project that could operate deep in the ocean and used a special wavelength of light invisible to the giant squid’s sensitive eyes.


Kubodera said scientific research, technology and the right lure all came together to make the encounter possible, and that this case will shed more light on deep-sea creatures going forward.


After more than a decade of going out to sea in search of the giant squid, he relished the moment he came face-to-face with it.


“It appeared only once, out of 100 dives. So perhaps, after over 10 years of some kind of relationship I’ve built with the giant squids, I feel, perhaps, it was the squid that came to see me.”


___


Associated Press writer Emily Wang contributed to this report.


Science News Headlines – Yahoo! News





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Terror group fills Syria rebels' space






STORY HIGHLIGHTS


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

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

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

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




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


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


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


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



Nada Bakos

Nada Bakos



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


Analysis: Study shows rise of al Qaeda affiliate in Syria


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



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


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


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








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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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



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






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New General Assembly to face many old issues









SPRINGFIELD—





— A new Illinois General Assembly was inaugurated Wednesday, but lingering beyond the flowers, family and speeches was a host of unfinished business.

The old Legislature adjourned Tuesday without fixing the state's broken public pension system. Also left unresolved were the divisive issues of same-sex marriage, gun regulation and gambling expansion. It'll be a while before such problems are tackled — the part-time lawmakers are scheduled to go home for a few weeks before returning to the Capitol.

In the House, Speaker Michael Madigan remains in charge, as he has for all but two of the past 30 years. In the Senate, President John Cullerton starts his fifth year running the show. Both Chicago Democrats now wield veto-proof majorities after many voters throughout the state opted against the Republican alternative in November legislative races.

That new Democratic power brings added pressure to perform was not lost on Cullerton, who said his party's 40-19 advantage over the GOP is the largest in the nation and in state history.

"I know a lot of you are thinking, 'This is great. We've got 40 members. I don't have to take any tough votes,'" Cullerton told his Democrats in a decorated Senate chamber as family members were entertained by a rendition of the 1960s tune "Feeling Good."

"But if everybody thought like that, we wouldn't get anything done, would we?" he said.

Madigan, the longest-serving speaker in state history, told House members that key issues remain "terribly contentious, terribly divisive."

"We have to call upon our inner resolves to dedicate ourselves to the solution of these problems, working cooperatively with the other members of the House of Representatives and the Senate," said Madigan, who leads a 71-47 Democratic majority.

Still, Madigan gave a grave assessment of the poorly funded pensions, saying he would "emphasize the absolutely serious nature of the fiscal condition."

In the waning days of the legislative session that concluded Tuesday, Madigan made what he said was a good-faith effort to spur pension talks by lifting a demand that suburban and downstate teacher retirement costs be shifted from the state to local school districts. That's now back on the table for Madigan, who called it a "free lunch."

"Serious, serious problem, and if we're serious about solving the problem, that must be addressed," Madigan said.

The cost-shift provision is adamantly opposed by Republicans and some suburban Democrats who maintain that it will lead to local property tax increases.

After failing to come up with a pension solution before the clock ran out this week, Cullerton said that Senate Bill 1, legislation often symbolizing the top agenda item, would be a pension measure combining aspects of unresolved Senate-passed and House-sponsored plans.

"The finances of our pension system have to be addressed in a fair and constitutional manner. The issue has lingered for generations and threatens to doom future generations if something isn't done," Cullerton said.

"We are on the verge of our state budget being turned into a financial plan that funds pension benefits, not essential services. Our investments in higher, elementary and secondary education and human services are increasingly crowded out — some might say, squeezed — by our pension costs," Cullerton said in a nod to Democratic Gov. Pat Quinn, whose grass-roots pension reform movement used a cartoon mascot, Squeezy, the Pension Python.

Though Cullerton cast a vote for Senate Republican leader Christine Radogno of Lemont for Senate president, as she did for him in a symbolic display of bipartisanship, Radogno said "many people in Illinois really don't have a lot of confidence in us and hopefully we can turn that around."

"We have to come to grips with some of the very real problems that we have," she said. "The underlying pillar that will allow us to begin to address them is solving the pension problem."

House Republican leader Tom Cross of Oswego called for "incredibly bold ideas and incredibly bold solutions."

"We're facing challenges in the state that we probably haven't seen as a General Assembly since the Great Depression," Cross said.

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Analysis: Modi's Gujarat growth model might not work across India


SURAT, India (Reuters) - Turning a single Indian state with a long tradition of entrepreneurship and a solid political majority into an investor-friendly economic powerhouse is one thing.


Replicating that experience across a diverse country of 1.2 billion would be a tougher prospect for Narendra Modi, whose leadership of booming Gujarat state has led to his being touted as a potential candidate to become India's next prime minister.


While Modi wins praise even from critics for cutting red tape and making government more responsive and predictable, many ingredients for Gujarat's run of growth were in place well before he took office in 2001.


"It is like an icing on cake sort of thing. You have a nice cake and Modi has done a lot of good icing," said Rakesh Chaudhary, director of Pratibha Group, a textile manufacturer in Palsana on the outskirts of the Gujarat city of Surat.


Industry in Gujarat is helped by a long coastline and plenty of barren land that is easy to turn over to factory use.


The power that comes from a long-standing and heavy majority for his Bharatiya Janata Party (BJP) in the state also gives Modi an advantage that he would not enjoy on a national stage marked by fractious coalition politics.


Despite a controversial past - Modi is accused by critics of not doing enough to stop or of even quietly encouraging religious riots in 2002 that saw as many as 2,000 killed, most of them Muslims - he has established a reputation as an economic reformer in part by building on the strengths of Gujarat and marketing them heavily.


Modi's marketing savvy, aided by the Washington lobbying and public affairs firm APCO Worldwide, will be on display at the biennial "Vibrant Gujarat Summit" that begins on Friday.


Initiated by Modi in 2003 to attract investment after the violence and an earthquake in 2001, the event is attended by thousands of corporate officials who pledge billions in investment, although in reality only a fraction has seen the light of day. Of 12.4 trillion rupees ($225 billion) in investment proposed at the 2009 event, just 8.5 percent had been spent as of November 2011, according to state government data.


"Under Modi's regime, there has been significant improvement in infrastructure growth, significant improvement in industrialization, as well as agriculture," said Jahangir Aziz, senior Asia economist at JPMorgan. "But what has been overplayed is initial conditions were actually pretty decent in Gujarat."


HIGHER OFFICE?


The stocky Modi, who favors traditional Indian attire and a clipped white beard, plays down any prime ministerial ambitions.


But his popularity in Gujarat - the BJP won 115 of the state assembly's 182 seats in a December election - has fuelled speculation that he could lead his Hindu nationalist party in 2014 against India's ruling Congress party, which has been beset by corruption scandals and overseen a sharp economic slowdown.


"His economic record in Gujarat is obviously something which matters a lot to the middle classes. That, coupled with strong leadership," said Swapan Dasgupta, an analyst with links to the BJP who expects Modi to be the party standard-bearer in 2014.


Critics say that while Modi has indeed encouraged investment and helped bring reliable electricity and law and order, double-digit growth has not been shared broadly enough. In the five years through March 2010, some states - including Tamil Nadu and Karnataka - did better at bringing down poverty levels.


"Big business people get a lot from the government and scheduled caste people (minorities) get a lot, but people like us who are in between get nothing," said Bhupendra Thakkar, 50, who earns 6,000 rupees ($109) a month selling fruit near Surat's decrepit railway station.


FRIEND OF BUSINESS


Modi lured Tata Motors to the state in 2008 after the company's plans to build a factory for its low-cost Nano car were thwarted by farmers in West Bengal.


Ford Motor Co and Maruti Suzuki are also building plants in the western state - high profile investments that carry the added benefit of acting as marketing tools.


In the seven years through March 2011, Gujarat's economy grew an annual 10.08 percent at constant prices, against 6.45 percent in the eight years through March 2002 (Modi took office in October 2001), which was still ahead of the all-India average of 6.16 percent. A handful of states, including Maharashtra and Tamil Nadu, clocked bigger gains over the same recent period.


By comparison, policy gridlock at the national level has contributed to a drop-off in corporate investment, putting India on track to record its slowest annual growth rate in a decade.


Accustomed to getting his way, Modi, 62, could struggle to negotiate the coalition politics that have become the norm at the national level and have hindered attempts at reform by Prime Minister Manmohan Singh's Congress-led administration.


"Policymaking has benefited from the fact that the BJP has had absolute majority in the state legislature - an advantage it certainly will not enjoy in the federal parliament," said Anjalika Bardalai, an analyst with the Eurasia Group in London.


Modi has also been able to leverage the business acumen of Gujaratis, a group that has long been known for trading and entrepreneurship and includes a prosperous global diaspora as well as billionaires such as Adani Group chief Gautam Adani and Mukesh Ambani, who controls Reliance Industries, India's most valuable company.


"Modi might not be as successful as he has been here because the business mentality is unique to Gujarat," said Chandrakant Sanghavi, chairman of Sanghavi Exports International, a diamond trader and processor. "It could be prevalent in other states but the ratio may be less." ($1 = 55.0700 Indian rupees)


(Editing by John Chalmers and Alex Richardson)



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Asian shares rise as earnings eyed

TOKYO (Reuters) - Asian shares rose on Wednesday as investors resumed buying after taking profits from a sharp rally at the start of the year while warily bracing for corporate earnings season to kick off in full force.


European shares were seen following Asia's lead with a modest rise, with financial spreadbetters predicting London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> would open as much as 0.3 percent higher. U.S. stock futures suggested a firmer Wall Street start with a 0.1 percent gain. <.l><.eu><.n/>


The yen's rebound as part of broader market position adjustments was also short-lived, with the dollar erasing earlier losses to rise 0.5 percent to 87.48 yen on sustained expectations of further monetary easing in Japan.


MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> rose 0.4 percent. Hong Kong shares <.hsi> were among the top gainers with a 0.5 percent climb, bouncing from their lowest in a week as Chinese banks were supported by a brokerage upgrade. Shanghai shares <.ssec> rose 0.3 percent.


"We are running into chart resistance now, so investors are looking to rotate into laggards. There is no need to be too bearish right now, at least in the first quarter," said Hong Hao, Bank of Communication International Securities' chief strategist.


Australian shares <.axjo> ended up 0.4 percent to break a three-day losing streak.


Alcoa Inc , the largest aluminum producer in the U.S., with customers in a wide range of industries, launched the U.S. earnings season on Tuesday. It reported a fourth-quarter profit of $242 million, in line with Wall Street expectations.


U.S. corporate profits are expected to be higher than the third quarter's lackluster results, but analysts' estimates are down sharply from where they were in October.


Credit Suisse said in a research note that Asian equity market price indices may start to catch up with earnings estimates which had been outperforming market prices, suggesting further upside scope for Asian share prices.


The consensus earnings forecast so far is flat in January, following virtually flat revisions in December, it said.


"It was the persistent EPS downgrades that led to the gap between equity market price indices and EPS. These flat revisions could act as a catalyst for equity market price indices to converge with EPS," Credit Suisse said.


Data flows were light with Australian retail sales surprisingly fell 0.1 percent in November from October, against forecasts for a 0.3 percent rise on the month, sending the Australian dollar down to session lows of $1.0486 from $1.0517 before the data was released.


China will release its December trade data on Thursday, which includes initial estimates for metals imports and exports.


U.S. crude and Brent both eased 0.1 percent to $93.03 a barrel and $111.86 respectively.


"What we're seeing in the oil markets is the cautious sentiment playing up ahead of some key economic events this week," said Ker Chung Yang, senior investment analyst at Phillips Futures Pte in Singapore.



Australian retail sales: http://link.reuters.com/zew92t


China exports graphic: http://link.reuters.com/kun94t


Euro zone retail sales: http://link.reuters.com/tyb25s


^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>


YEN STAYS WEAK


Japan's benchmark Nikkei stock average <.n225> erased earlier losses to end 0.7 percent higher, bolstered by the yen's resumed weakness. The dollar had risen about 12 percent over the past two months against the yen, contributing to the Nikkei's 22 percent jump in the same period. <.t/>


Expectations of much bolder monetary easing from the Bank of Japan to help Tokyo beat deflation under new Japanese Prime Minister Shinzo Abe have encouraged investors to sell the yen.


But as trading resumed from year-end holidays, analysts and traders said markets were ripe for position adjustments.


"After a good run in risk assets since December, we entered in a phase of consolidation which is moving from Japanese equities to short JPY positions," said Sebastien Galy, FX strategist at Societe Generale in New York, in a note, adding that the dollar could consolidate to 85 yen but must first take out the first Fibonacci retracement at 85.75 yen.


Yen crosses which had been bought the most, including the yen/Korean won, are the most exposed to the correction.


"Such a washout in JPY crosses is the opportunity many long-term investors will be waiting for to continue their switch into strategic short yen positions," he said.


The dollar earlier on Wednesday fell as low as 86.825 yen, having scaled its highest since July 2010 at 88.48 on Friday. The euro also added 0.2 percent to 114.475 yen, off the day lows of 113.55. The euro last week hit 115.995 yen, its highest since July 2011.


The Bank of Japan will consider easing monetary policy again at its January 21-22 meeting, by likely boosting buying of government bonds and treasury discount bills, while considering a doubling of its inflation target to 2 percent.


The euro held steady against the dollar at $1.3086, ahead of Thursday's European Central Bank policy meeting and Spanish and Italian bond auctions toward the end of the week.


Sentiment turned cautious in Asian credit markets, with the spread on the iTraxx Asia ex-Japan investment-grade index widening slightly by 1 basis point.


(Additional reporting by Clement Tan in Hong Kong and Ramya Venugopal in Singapore; Editing by Eric Meijer)



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RG3 to have surgery on torn right knee ligament


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


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


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


A torn LCL requires a rehabilitation period of several months, possibly extending into training camp and the start of next season. A torn ACL is a more severe injury, typically requiring nine to 12 months of recovery, although Minnesota Vikings running back Adrian Peterson make a remarkable return this season some eight months after tearing an ACL — and nearly broke the NFL's single-season rushing record.


Griffin tore his ACL in the same knee while playing for Baylor in the third game of the 2009 season and missed the rest of the year. He was injured on the opening drive against Northwestern State but kept playing until halftime.


Griffin came back to win the Heisman Trophy two years later, and Briles predicted a similar recovery this time.


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


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


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


Griffin, the No. 2 overall pick, was one of several rookie quarterbacks to make an instant impact on the league this season. He set the NFL record for best season passer rating by a rookie QB and led the Redskins to their first NFC East title in 13 years.


But Griffin also had to leave three games early due to injuries — two because of his knee and one because of a concussion — and missed a fourth altogether because of the knee. Shanahan repeatedly said Griffin had clearance from doctors to return to play, but the coach also said he trusted Griffin's own word when deciding that the rookie should continue during Sunday's game — even though Griffin was clearly struggling after reinjuring the knee in the first quarter.


Griffin remained in the game until the fourth quarter, when he hurt the knee again while fielding a bad shotgun snap.


___


AP Sports Writer Stephen Hawkins in Dallas contributed to this report.


___


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


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Bilingualism May Keep Older Brains Nimble






Older adults who have spoken two languages since childhood are quicker at switching between cognitive tasks than single-language adults, a new study finds.


The bilingual seniors also showed distinct patterns of brain activity not seen in monolingual participants, the researchers added.






The findings, detailed in tomorrow’s (Jan. 9) issue of The Journal of Neuroscience, suggest certain mental activities do, indeed, benefit individuals as they age.


“This study provides some of the first evidence of an association between a particular cognitively stimulating activity, in this case, speaking multiple languages on a daily basis, and brain function,” John Woodard, an aging expert from Wayne State University, who was not involved with the study, said in a statement.


Recent research has suggested speaking two languages could keep one’s cognitive flexibility, or the ability to adapt to new, often unfamiliar, situations, from declining, something thought to happen with age. [10 Fun Ways to Keep Your Mind Sharp]


To test the idea in an aging population, Brian Gold and his colleagues at the University of Kentucky College of Medicine scanned the brains of 30 healthy bilingual and monolingual adults ages 60 to 68. They used functional magnetic resonance imaging (fMRI), which shows blood flow to brain regions in real time. An increase in blood flow to a specific brain region signals that region is likely becoming more active.


While their brains were being scanned, participants completed a task to measure their cognitive flexibility called a color-shape task-switching game. The participants were shown one of two possible shapes (square or circle) in one of two colors (red or blue) at the center of a screen. In some instances participants had to name the color of the flashed image, in others the shape, and in others the task switched back and forth from participants needing to indicate color to shape.


Both groups performed the task accurately, though bilingual individuals were faster than monolinguals. Even so, the brain scans suggested bilingual participants expended less energy in the brain’s frontal cortex thought to be involved in such task switching, the researchers said.


“This suggests that bilingual seniors use their brains more efficiently than monolingual seniors,” Gold said in a statement.


To find out when this cognitive benefit from bilingualism kicked in, the researchers ran the same experiment on younger participants with an average age of 31. As expected, younger adults were faster than older ones at completing the task. However, bilingual younger adults did no better than monolingual individuals on the task.


“Together, these results suggest that lifelong bilingualism may exert its strongest benefits on the functioning of frontal brain regions in aging.”


In fact, another study showed the brains of bilingual adults functioned better and for longer after individuals developed Alzheimer’s disease; the bilinguals were also diagnosed with the disease about four years later, on average, than those who spoke just one language.


Past research has suggested bilingualism can benefit even infants, with one study showing bilingual 7-month-olds more quickly adapted to different learning cues than babies from single-language households. (The “bilingual” babies were spoken to in two languages by parents.) And Janet Werker, a psychologist at Vancouver’s University of British Columbia, has found learning two languages can confer babies with cognitive advantages, such as special auditory and visual sensitivity.


The new research on aging and bilingualism was funded by the National Institutes of Health and the National Science Foundation.


Follow LiveScience on Twitter @livescience. We’re also on Facebook & Google+.


Copyright 2013 LiveScience, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Case of Wall Street greed gone too far




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




STORY HIGHLIGHTS


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

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

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

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




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


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


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


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


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



Susan Antilla

Susan Antilla



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


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


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



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


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








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


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


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


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


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


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


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


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


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


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


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


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


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


We need to change the conversation here.


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


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


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






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