Dow, S&P 500 near flat after rally; Apple boosts Nasdaq

NEW YORK (Reuters) - The Dow and S&P 500 were nearly flat on Monday as a four-week rally stalled, while a rebound in Apple shares helped buoy the Nasdaq.


Caterpillar shares helped cap losses in the Dow industrials even as the company posted a 55 percent drop in quarterly profit due to a charge connected with accounting fraud at a Chinese subsidiary and weak demand among its dealers. Caterpillar's shares, down 2.2 percent in the past three sessions, rose 1.5 percent Monday to $96.97.


Boeing , down 1.2 percent at $74.14, shares led decliners on the Dow. The aircraft maker risks losing about $5 billion in revenue by the grounding of its 787 Dreamliner fleet, according to a Bloomberg report.


The S&P 500 is coming off a streak of eight sessions of gains, the longest in eight years, but the index remained above 1,500. It ended above that level on Friday for the first time in more than five years.


"I think this multi-year high is really something that's in play both for short-term traders and for folks with money on the sidelines," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.


Investors poured $55 billion in new cash into stock mutual funds and exchange-traded funds in January, the biggest monthly inflow on record, research provider TrimTabs Investment Research said.


Bargain hunters lifted Apple after the tech giant's stock dropped 14.4 percent in the previous two sessions. With Apple's stock up 2.4 percent at $450.29, the iPad and iPhone maker regained the title as the largest U.S. company by market capitalization as Exxon Mobil fell 0.9 percent to $90.94 and slipped back to second place.


The Dow Jones industrial average <.dji> was up 10.70 points, or 0.08 percent, at 13,906.68. The Standard & Poor's 500 Index <.spx> was down 0.50 points, or 0.03 percent, at 1,502.46. The Nasdaq Composite Index <.ixic> was up 9.37 points, or 0.30 percent, at 3,159.08.


Data on Monday pointed to growing economic momentum as companies sensed improved consumer demand.


Thomson Reuters data showed that of the 150 companies in the S&P 500 that have reported earnings so far, 67.3 percent have beaten analysts' expectations, which is a higher proportion than over the past four quarters and above the average since 1994.


U.S. durable goods orders jumped 4.6 percent in December, a pace that far outstripped expectations for a rise of 1.8 percent. Pending home sales unexpectedly dropped 4.3 percent. Analysts were looking for an increase of 0.3 percent.


Equities have also gained support from a recent agreement in Washington to extend the government's borrowing power. On Monday, Fitch Ratings said that agreement removed the near-term risk to the country's 'AAA' rating.


Hess Corp shares shot up 6.3 percent to $62.59 after the company said it would exit its refining business, freeing up to $1 billion of capital. Separately, hedge fund Elliott Associates is looking for approval to buy about $800 million more in Hess stock.


(Additional reporting by Rodrigo Campos; Editing by Jan Paschal and Nick Zieminski)



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Violence flares in Egypt after emergency law imposed


CAIRO (Reuters) - A man was shot dead on Monday in a fifth day of violence that has killed 50 Egyptians and prompted the Islamist president to declare a state of emergency in an attempt to end a wave of unrest sweeping the biggest Arab nation.


Emergency rule announced by President Mohamed Mursi on Sunday covers the cities of Port Said, Ismailia and Suez. The army has already been deployed in two of those cities and ministers agreed a measure to let soldiers arrest civilians.


A cabinet source told Reuters any trials would be in civilian courts, but the step is likely to anger protesters who accuse Mursi of using high-handed tactics of the kind they fought against to oust his military predecessor Hosni Mubarak.


Egypt's politics have become deeply polarized since those heady days two years ago, when protesters were making the running in the Arab Spring revolutions that sent shockwaves through the region and Islamists and liberals lined up together.


Although Islamists have won parliamentary and presidential elections, the disparate opposition has since united against Mursi. Late last year he moved to expand his powers and pushed a constitution with a perceived Islamist bias through a referendum. The moves were punctuated by street violence.


Mursi's national dialogue meeting on Monday to help end the crisis was spurned by his main opponents.


They say Mursi hijacked the revolution, listens only to his Islamist allies and broke a promise to be a president for all Egyptians. Islamists say their rivals want to overthrow by undemocratic means Egypt's first freely elected leader.


Thousands of anti-Mursi protesters were out on the streets again in Cairo and elsewhere on Monday, the second anniversary of one of the bloodiest days in the revolution which erupted on January 25, 2011 and ended Mubarak's iron rule 18 days later.


"The people want to bring down the regime," they chanted Alexandria. "Leave means go, and don't say no!" they shouted.


VOLLEYS OF TEARGAS


Propelled to the presidency in a June election by the Muslim Brotherhood, Mursi has lurched through a series of political crises and violent demonstrations, complicating his task of shoring up the economy and of preparing for a parliamentary election to cement the new democracy in a few months.


Instability in Egypt has raised concerns in Western capitals, where officials worry about the direction of a key regional player that has a peace deal with Israel.


In Cairo on Monday, police fired volleys of teargas at stone-throwing protesters near Tahrir Square, cauldron of the anti-Mubarak uprising. A car was torched on a nearby bridge.


A 46-year-old bystander was killed by a gunshot early on Monday, a security source said. It was not clear who fired.


"We want to bring down the regime and end the state that is run by the Muslim Brotherhood," said Ibrahim Eissa, a 26-year-old cook, protecting his face from teargas wafting towards him.


The political unrest has been exacerbated by street violence linked to death penalties imposed on soccer supporters convicted of involvement in stadium rioting in Port Said a year ago.


As part of emergency measures, a daily curfew will be imposed on the three canal cities from 9 p.m. (1900 GMT) to 6 a.m. (0400 GMT). Residents have said they will defy it.


The president announced the measures on television on Sunday: "The protection of the nation is the responsibility of everyone. We will confront any threat to its security with force and firmness within the remit of the law," Mursi said, angering many of his opponents when he wagged his finger at the camera.


He offered condolences to families of victims. But his invitation to Islamist allies and their opponents to hold a national dialogue was spurned by the main opposition National Salvation Front coalition. Those who accepted were mostly Mursi's supporters or sympathizers.


SENDING A MESSAGE


The Front rejected the offer as "cosmetic and not substantive" and set conditions for any future meeting that have not been met in the past, such as forming a government of national unity. They also demanded that Mursi declare himself responsible for the bloodshed.


"We will send a message to the Egyptian people and the president of the republic about what we think are the essentials for dialogue. If he agrees to them, we are ready for dialogue," opposition politician Mohamed ElBaradei told a news conference.


The opposition Front has distanced itself from the latest flare-ups but said Mursi should have acted far sooner to impose security measures that would have ended the violence.


"Of course we feel the president is missing the real problem on the ground, which is his own policies," Front spokesman Khaled Dawoud said after Mursi made his declaration.


Other activists said Mursi's measures to try to impose control on the turbulent streets could backfire.


"Martial law, state of emergency and army arrests of civilians are not a solution to the crisis," said Ahmed Maher of the April 6 movement that helped galvanize the 2011 uprising. "All this will do is further provoke the youth. The solution has to be a political one that addresses the roots of the problem."


Rights activists said Mursi's declaration was a backward step for Egypt, which was under emergency law for Mubarak's entire 30-year rule. His police used the sweeping arrest provisions to muzzle dissent and round up opponents, including members of the Brotherhood and even Mursi himself.


Heba Morayef of Human Rights Watch in Cairo said the police, still hated by many Egyptians for their heavy-handed tactics under Mubarak, would once again have the right to arrest people "purely because they look suspicious", undermining efforts to create a more efficient and respected police force.


"It is a classic knee-jerk reaction to think the emergency law will help bring security," she said. "It gives so much discretion to the Ministry of Interior that it ends up causing more abuse, which in turn causes more anger."


(Additional reporting by Yasmine Saleh in Cairo, Yusri Mohamed in Ismailia and Abdelrahman Youssef in Alexandria; Editing by Giles Elgood, Peter Millership and Alastair Macdonald)



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Crucial, long-overdue BlackBerry makeover arrives






TORONTO (AP) — The maker of the BlackBerry smartphone is promising a speedy browser, a superb typing experience and the ability to keep work and personal identities separate on the same phone, the fruit of a crucial, long-overdue makeover for the Canadian company.


Thorsten Heins, chief executive of Research In Motion Ltd., will reveal the first phone with the new BlackBerry 10 system in New York on Wednesday. Repeated delays have left the once-pioneering BlackBerry an afterthought in the shadow of Apple’s trend-setting iPhone and Google’s Android-driven devices.






Now, there’s some optimism. Previews of the software have gotten favorable reviews on blogs. Financial analysts are starting to see some slight room for a comeback. RIM‘s stock has nearly tripled to about $ 16.30 from a nine-year low in September, though it’s still nearly 90 percent below its 2008 peak of $ 147.


Most analysts consider a BlackBerry 10 success to be crucial for the company’s long-term viability.


“The old models are becoming obsolete quickly,” BGC Financial analyst Colin Gillis said. “There is still a big user base but it’s going to rotate off. The question is: Where do they rotate to?”


The BlackBerry, pioneered in 1999, has been the dominant smartphone for on-the-go business people. Corporate information-technology managers like the phones because they’re relatively secure and easy to manage.


The BlackBerry has also crossed over to consumers. President Barack Obama couldn’t bear to part with it when he took office. Oprah Winfrey declared it one of her “favorite things.” People got so addicted that the device was nicknamed “the CrackBerry.”


But when the iPhone came out in 2007, it showed that phones can do much more than email and phone calls. They can play games, music and movies. Android came along to offer even more choices. Though IT managers still love BlackBerrys, employees were bringing their own devices to the workplace — a trend Heins acknowledged RIM was slow to adapt to.


Suddenly, the BlackBerry looked ancient.


Even as BlackBerry sales continued to grow in many parts of the world, many BlackBerry users in North America switched to iPhones and Android devices. BlackBerry’s worldwide subscriber based peaked at 80 million in the quarter that ended Sept. 1, before dropping to 79 million in the most-recent quarter. In the U.S., according to research firm IDC, shipments of BlackBerry phones plummeted from 46 percent of the market in 2008 to 2 percent in 2012.


RIM promised a new system to catch up, using technology it got through its 2010 purchase of QNX Software Systems. RIM initially said BlackBerry 10 would come by early 2012, but then the company changed that to late 2012. A few months later, that date was pushed further, to early 2013, missing the lucrative holiday season. The holdup helped wipe out more than $ 70 billion in shareholder wealth and 5,000 jobs.


Although executives have been providing a glimpse at some of BlackBerry 10′s new features for months, Heins will finally showcase a complete system at Wednesday’s event. Devices will go on sale soon after that.


RIM redesigned the system to embrace the multimedia, apps and touch-screen experience prevalent today.


“Historically there have been areas that have not been our strongest points,” Rick Costanzo, RIM’s executive vice president of global sales, said in an interview. “Not only have we caught up, but we may even be better than some of the competition now.”


Costanzo said “no one else can touch” what RIM’s new system offers.


The new operating system promises better multitasking than either the iPhone or Android. Simply swipe a finger across the phone’s display screen to switch to another program.


All emails and notifications from such applications as Twitter and Facebook go to the BlackBerry Hub, a nerve center accessible with a finger swipe even if you have another application open. One can peek into it and open an email, or return to the previous application without opening the email.


“You are not going in and out of applications; you’re flowing through applications with one simple gesture of your finger,” Costanzo said. “You can leave applications running. You can effortlessly flow between them. So that’s completely unique to us.”


That said, multitasking will be limited and won’t allow for extensive use of apps side by side, as is typically permitted on traditional computers. If you’re watching a video, it will still run while you check for email. But it will pause if you decide to open an email and resume when you are done.


The BlackBerry’s touch-screen keyboard promises to learn a user’s writing style and suggest words and phrases to complete, going beyond typo corrections offered by rivals. See the one you want, and flick it up to the message area. Costanzo said that “BlackBerry offers the best keyboard, period.”


Gus Papageorgiou, a Scotiabank financial analyst who has tried it out, agreed with that assessment and said the keyboard even learns and adjusts to your thumb placements.


The first BlackBerry 10 phone will have only a touch screen. RIM has said it will release a version with a physical keyboard soon after that. That’s an area RIM has excelled at, and it’s one reason many BlackBerry users have remained loyal despite temptations to switch.


Another distinguishing feature will be the BlackBerry Balance, which allows two personas on the same device. Businesses can keep their data secure without forcing employees to get a second device for personal use. For instance, IT managers can prevent personal apps from running inside corporate firewalls, but those managers won’t have access to personal data on the device.


With Balance, “you can just switch from work to personal mode,” Papageorgiou said. “I think that is something that will attract a lot of people.”


RIM is also claiming that the BlackBerry 10′s browser will be speedy, even faster than browsers for laptop and desktop computers. According to Papageorgiou, early, independent tests between the BlackBerry 10 and the iPhone support that claim.


Regardless of BlackBerry 10′s advances, though, the new system will face a key shortcoming: It won’t have as many apps written by outside companies and individuals as the iPhone and Android. RIM has said it plans to launch BlackBerry 10 with more than 70,000 apps, including those developed for RIM’s PlayBook tablet, first released in 2011. Even so, that’s just a tenth of what the iPhone and Android offer. Papageorgiou said the initial group will include the most popular ones such as Twitter and Facebook. But RIM will have to persuade others to make a BlackBerry version, when they are already struggling to keep up with both the iPhone and Android.


Like many analysts, Papageorgiou recently upgraded RIM’s stock, but cautions that longtime BlackBerry users will have to get used to a whole new operating system.


He said RIM can be successful if about a third of current subscribers upgrade and if the company can get 4 million new users overseas, especially in countries where the BlackBerry has remained popular. IDC said smartphone shipments grew 44 percent in 2012. If those trends continue, it will be possible for the BlackBerry to grow even if iPhone and Android users don’t switch.


“This doesn’t have to be the best smartphone on the planet to be a success for RIM,” he said. “I think the big question though is, if it fails, is it just too late? Are the other two ecosystems just so advanced that no one can catch up? That’s a big risk.”


Wireless News Headlines – Yahoo! News





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Adam Levine & Friends Have 'Laid Back' Lunch in N.Y.C.















01/27/2013 at 03:30 PM EST



Before Adam Levine proved he was hilarious when he hosted Saturday Night Live, he kept his friends in stitches in New York on Monday.

Levine was spotted at The Mercer Kitchen around 2 p.m., an onlooker tells PEOPLE.

"He looked really laid back and seemed to be in a great mood," the source adds. "He was laughing a lot and was really enthralled in the conversation the whole table was having."

Joined by a group of guys and one girl – who was wearing a very big hat – Levine, 33, kept things casual in a gray hoodie and jeans.

– Jennifer Cress


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CDC: Flu seems to level off except in the West


New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.


The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.


Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.


There is still vaccine available although it may be hard to find. The CDC has a website that can help.


___


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


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Fed waits for job market to perk up


LONDON (Reuters) - The Federal Reserve's ultra-loose monetary policy is a root cause of the "currency wars" that some see as a looming threat to the world economy, but don't expect the U.S. central bank to signal a shift back to normal any time soon.


The Fed, whose policy-setting Federal Open Market Committee concludes a two-day meeting on Wednesday, said just last month that it expects to keep short-term interest rates exceptionally low until the U.S. unemployment rate falls to 6.5 percent, inflation permitting.


That goal is still distant. Figures on Friday are likely to show that the jobless rate was unchanged in January at 7.8 percent, while the economy created 155,000 jobs, the same as in December, according to economists polled by Reuters.


So it would be a huge surprise if the Fed were to do anything other than reaffirm last month's decision to anchor short-term interest rates in a range of zero to 0.25 percent and to keep buying $85 billion of bonds each month to hold down long-term rates.


The only question mark is whether the FOMC vote will be unanimous now that Richmond Fed President Jeffrey Lacker, who opposes the current round of bond-buying, has rotated off the panel, said Harm Bandholz, an economist with UniCredit Bank in New York.


Most economists polled by Reuters expect the Fed to keep its open-ended bond-buying program in place well into next year, even though the economic news flow and market confidence are improving markedly.


True, Wednesday's preliminary report on fourth-quarter GDP is likely to show that growth slowed to an annualized rate of 1.2 percent from 3.1 percent in the July-September period.


And the current quarter will also be soft as the expiry of a 2 percent payroll tax cut is dampening consumer spending.


But then Bandholz expects an average growth rate of 2.8 percent over the rest of the year. That would be the strongest three-quarter period of the recovery so far, he said.


"The outlook has improved a lot in the U.S. I've been on the cautious side for the last three years, but this time I'm a bit more bullish," he said.


THE FED BIDES ITS TIME


The recovery in housing would add at least half a percentage point to GDP growth in 2013, while capital spending was likely to revive now that uncertainty over budget talks in Washington had been largely allayed, Bandholz said.


"There's a lot of pent-up demand in the system. I don't think all these investments have been abandoned; they've just been postponed," he said.


At some point, investors' exuberance over the super-easy stance of the world's major central banks will give way to worries that they are about to take away the punch bowl.


Gustavo Reis, an economist with Bank of America Merrill Lynch in New York, said concerns about the costs of money-printing were likely to spread but would be offset by uncertainty over the impact on growth of fiscal tightening in the United States and Europe.


"All told, although global activity seems more robust now than at any point in 2012, we expect policymakers to continue to worry predominantly about downside risks," he said in a note.


The bank does not expect the Fed to consider halting asset purchases before 2014, while the latest episode of monetary easing announced by the Bank of Japan is likely to be ‘long-lived and significant'.


Many economists argue that bold monetary action is long overdue in Japan, whose nominal output has not grown in 20 years, saddling the government with a debt-to-GDP ratio of more than 220 percent.


But Douglas McWilliams, who heads the Centre for Economics and Business Research, a London consultancy, fears Japan's decision will lead the global economy into unpredictable currency wars.


"It's a bit like if someone's rude to you, you're rude to them back. You get tit-for-tat behavior," McWilliams said.


CURRENCY FRICTION, BUT NO WAR


Olivier Blanchard, the chief economist of the International Monetary Fund, last week called talk of currency wars overblown and said countries had to pull the right policy levers to get their economies back on track, with corresponding consequences for exchange rates.


However, McWilliams said the problem was that it was difficult to get countries to agree NOT to wage currency wars.


Tellingly, Chancellor Angela Merkel voiced German concerns last week that Japan might be deliberately seeking to cheapen the yen to give its exporters a competitive edge.


"So we may well find that there is a period of very heavy volatility before the authorities involved try and get some kind of agreement," McWilliams said.


In a relatively quiet week for economic data in the euro zone - money supply figures and confidence surveys from the European Commission are the highlights - the focus is likely to remain squarely on the euro, which has been rising briskly as traders price in the policy shifts that Blanchard had in mind.


While the Fed and the Bank of Japan are expanding their balance sheets, the European Central Bank is starting to soak up some of the emergency cash it lent to banks a year ago.


The central bank said on Friday that banks would repay early 137 billion euros of cheap borrowed money.


"I'm not sure if we have too strong a euro for the moment but certainly we would not want to see a currency war of competitive devaluations which would have a negative effect on the euro," the European Union's top monetary official, Olli Rehn, told Reuters.


(Additional reporting by Paul Taylor in Davos; editing by Jason Neely)



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Nightclub fire kills at least 232 in Brazil


SANTA MARIA, Brazil (Reuters) - A nightclub fire killed at least 232 people in southern Brazil early on Sunday when a band's pyrotechnics show set the building ablaze and fleeing partygoers stampeded toward blocked and overcrowded exits in the ensuing panic, officials said.


The blaze in the university town of Santa Maria was started by a band member or someone from its production team igniting a flare, which then set fire to the ceiling, said Luiza Sousa, a civil police official. The fire spread "in seconds," she said.


Local fire officials said at least one exit was locked and that bouncers, who at first thought those fleeing were trying to skip out on bar tabs, initially blocked patrons from leaving. The security staff relented only when they saw flames engulfing the ceiling.


The tragedy, in a packed venue in one of Brazil's most prosperous states, comes as the country scrambles to improve safety, security and logistical shortfalls ahead of the 2014 World Cup soccer tournament and the 2016 Olympics, both intended to showcase the economic advances and first-world ambitions of Latin America's largest nation.


In Santa Maria, a city of more than 275,000 people, rescue workers and weary officials wept alongside family and friends of the victims at a local gymnasium being used as a makeshift morgue.


"It's the saddest, saddest day of my life," said Neusa Soares, the mother of one of those killed, 22-year-old Viviane Tolio Soares. "I never thought I would have to live to see my girl go away."


President Dilma Rousseff cut short an official visit to Chile and flew to Santa Maria, where she wept as she spoke to relatives of the victims at the gym.


"All I can say at the moment is that my feelings are of deep sorrow," said Rousseff, who began her political career in Rio Grande do Sul, the state where the fire occurred.


News of the fire broke on Sunday morning, when local news broadcast images of shocked people outside the Boate Kiss, as the nightclub was known. Gradually, grisly details emerged.


The vast majority of the victims, most of them university students, died of smoke inhalation, officials said. Others were crushed in the stampede.


"We ran into a barrier of the dead at the exit," Colonel Guido Pedroso de Melo, commander of the fire brigade in Rio Grande do Sul, said of the scene that firefighters found on arrival. "We had to clear a path to get to the rest of those that were inside."


Officials said more than 1,000 people may have been in the club, possibly exceeding its legal capacity. Though Internet postings about the venue suggested as many as 2,000 people at times have crammed into the club, Pedroso de Melo said no more than half that should have been inside.


He said the club was authorized to be open but its permit was in the process of being renewed.


However, Pedroso de Melo did point to several egregious safety violations - from the flare that went off during the show to the locked door that kept people from leaving.


'HAPPENED SO FAST'


When the fire began at about 2:30 a.m., many revelers were unable to find their way out amid the chaos, confusing restroom doors for exits and finding resistance from bouncers when they did find an exit.


"It all happened so fast," survivor Taynne Vendrusculo told GloboNews TV. "Both the panic and the fire spread rapidly, in seconds."


Once security guards realized the building was on fire, they tried in vain to control the blaze with a fire extinguisher, according to a televised interview with one of the guards, Rodrigo Moura. He said patrons were getting trampled as they rushed for the doors, describing it as "a horror film."


One of the club's owners has surrendered to police for questioning, GloboNews reported.


TV footage showed people sobbing outside the club before dawn, while shirtless firefighters used sledge hammers and axes to knock down an exterior wall to open up an exit.


Rescue officials moved the bodies to the local gym and separated them by gender. Male victims were easier to identify because most had identification on them, unlike the women, whose purses were left scattered in the devastated nightclub.


The disaster recalls other incidents including a 2003 fire at a nightclub in West Warwick, Rhode Island, that killed 100 people, and a Buenos Aires nightclub blaze in 2004 that killed nearly 200. In both incidents, a band or members of the audience ignited fires that set the establishment ablaze.


The Rhode Island fire shocked local and federal officials because of the rarity of such incidents in the United States, where enforcement of safety codes is considered to be relatively strict. After the Buenos Aires blaze, Argentine officials closed many nightclubs and other venues and ultimately forced the city's mayor from office because of poor oversight of municipal codes.


The fire early on Sunday occurred in one of the wealthiest, most industrious and culturally distinct regions of Brazil. Santa Maria is about 186 miles west of Porto Alegre, the capital of a state settled by Germans and other immigrants from northern Europe.


Local clichés paint the region as stricter and more squared away than the rest of Brazil, where most residents are a mix descended from native tribes, Portuguese colonists, African slaves, and later influxes of immigrants from southern Europe.


Rio Grande do Sul state's health secretary, Ciro Simoni, said emergency medical supplies from all over the state were being sent to the scene. States from all over Brazil offered support, and sympathy messages poured in from foreign leaders.


(Additional reporting by Guillermo Parra-Bernal, Gustavo Bonato, Jeferson Ribeiro, Eduardo Simões, Brian Winter and Guido Nejamkis.; Writing by Paulo Prada; Editing by Todd Benson, Kieran Murray and Eric Beech)



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Smartphone pioneer RIM looks to put recent hardships behind it with BB10






TORONTO, Cananda – Once a leader but now derided as a laggard, BlackBerry-maker Research In Motion hopes to regain the confidence of cynical smartphone users this week as the curtain is lifted on its much-anticipated new smartphones.


The stakes are high for the unveiling, which many observers say will determine whether RIM survives to see the launch of another BlackBerry smartphone.






It has been a steep decline for RIM, which less than five years ago was the most valuable company in Canada, above Royal Bank (TSX:RY). Affectionately called the “CrackBerry” maker, the mobile communications pioneer was Canada’s crowning achievement of the technology sector.


Back in 1984, the year RIM was founded, it was practically unimaginable that a tiny startup based in Waterloo, Ont. would help change the way we communicate, but for fresh engineering graduates Mike Lazaridis and Douglas Fregin that was always the plan.


“Like so many of these guys Lazaridis was a Star Trek lunatic,” said Alastair Sweeny, author of “BlackBerry Planet.”


“He says it’s almost like telepathy — humans have a yearning to communicate.”


The beginnings were humble for the two founders, with the majority of their time dedicated to Budgie, an LED sign business that was contracted by General Motors to communicate messages to workers on its assembly lines. Despite early interest, the project was a sales flop and RIM‘s owners decided to sell the business and look at other ventures.


One of those projects put RIM squarely in the eyes of Hollywood. The DigiSync film reader caught on with movie editors because its synching technology shaved hours off the time it took to turn miles of film into useable content in post-production. While the technology went on to win RIM both an Emmy and a technical achievement from the Academy Awards, it was never a top priority for RIM‘s founders.


Lazaridis was always into security,” said Sweeny. “He realized that corporations needed secure communications because of industrial espionage, because of hacking.”


Throughout the late 1980s, RIM was working alongside other industry players to develop technology that would eventually be used in pagers and wireless payment processing systems. By the start of the 1990s, the wheels were turning on the communication systems that would become the foundation of the BlackBerry.


An agreement with Ericcson’s Mobitex wireless network allowed RIM to create pagers that operated as a two-way communicators, a revolutionary concept for data transfer.


Turning the idea into a marketable product was a bigger challenge. The world had yet to become accustomed to the Internet age and most people hadn’t heard of email, nevermind used it. While the project was a bust with its first partner Cantel, RIM forged ahead.


The technology captured the attention and imaginations of an industry, and perhaps most importantly Jim Balsillie, an energetic Harvard graduate who, at the age of 33, invested $ 250,000 of his own money into the company by re-mortgaging his house.


In 1996, RIM launched its first sales success, a clamshell wireless handheld device called the RIM 900 Interactive Pager. It was a two-way communicator that also had the ability to send faxes, as well as link to the Internet and email.


But Lazaridis discovered that the email feature, which he believed was one of the strongest qualities of the device, wasn’t being used by most customers. So he hired Lexicon Branding, based in California, to find a way to draw more attention to its keyboard, the main feature that differentiated it from other pagers.


Branding executives pondered the device, focusing mainly on its appearance, and when one of them pointed out the little keypad looked like similar to the seeds of a strawberry, the conversation zeroed in on the names of fruits and vegetables. Eventually, the group settled on “BlackBerry” because it was both punchy and remained true to the device’s original black casing.


The company listed on the Toronto Stock Exchange in 1997, raising more than $ 115 million, and debuted the first BlackBerry the following year.


From there it seemed the sky was the limit.


Suddenly the BlackBerry was everywhere in the technology community, thrust into the spotlight by the enthusiastic co-CEO Balsillie who touted the device on Wall Street and handed it out for free at select technology conferences. Balsillie knew how to build buzz and proudly tapped away on the BlackBerry whenever he appeared before the media.


A demand had been created, and subscribers to the BlackBerry services continued to grow in leaps and bounds. In 1999, RIM listed on the Nasdaq, raising another US$ 250 million.


The success grabbed the attention of Virginia-based NTP Inc. which filed a lawsuit claiming that RIM‘s network infringed on its patents. While NTP won the case, and the courts ordered RIM to pay US$ 23.1 million, the battle continued in appeals courts for years before a settlement was reached for a much heftier $ 612.5 million.


Outside the courtrooms the BlackBerry was a massive success, garnering headlines when its enterprise network remained intact after the terrorist attacks on Sept. 11 when other wireless phone systems broke down.


The BlackBerry’s reputation was growing at a steady clip, helped by the introduction of cellphone service in 2002 on what had been a text-only device. Within two years, BlackBerry reached more than 1 million subscribers.


The smartphone was in demand at corporate offices around the world, and soon the more casual consumer began to take notice, helping to boost its subscribers to nine million by 2007. RIM also secured a distribution deal in China, driving its stock to a level that made it the most valuable Canadian company.


But amid all of the success a storm of competition was brewing in the tech industry.


In June 2007, Apple unleashed the first iPhone touchscreen device onto the U.S. market, garnering widespread praise from critics and consumers, but hardly rattling its competitors.


Microsoft’s chief executive Steve Ballmer famously dismissed the touchscreen device that year, saying “there’s no chance that the iPhone is going to get any significant market share.”


Whether it was a strategic decision or simply coincidence, Apple kept its iPhone far away from the Canadian marketplace for nearly a year, choosing to launch in six other countries first.


The lower profile with Canadian consumers also seemed to minimize the concern from RIM’s executives, who publicly downplayed the influence of the iPhone in an already crowded mobile phone market.


“They just missed it,” said Carl Howe, vice-president of consumer research at Yankee Group.


“They missed the idea that you could create a really good experience without having a keyboard. They gave Apple a two-year head start.”


By the time the iPhone hit Canadian shelves, RIM was facing scrutiny from analysts who worried that the growing number competitors, which now also included Google’s Android system, would devour marketshare.


RIM went on the defensive in 2008, releasing a combination keypad and touchscreen device it called the Storm, but the phone was swept up in a flurry of other BlackBerry releases that year. Much of the marketing clout was put behind the debut of a high-end BlackBerry Bold, which wasn’t a touchscreen.


“A lot of tech companies have their heads in the sand,” said Howe of the co-CEOs.


“It’s not that they’re stupid, and I think that’s an important point. People who get hit by ‘innovator’s dilemma’ are not stupid … I think when you create something from scratch and turn it into a multi-billion dollar business you’re very reluctant to say ‘I’m now going to throw away everything I’ve learned and do something different.’ “


At the height of its hype, the BlackBerry device was splashed across television shows and movies, while then-presidential candidate Barack Obama proclaimed he was a BlackBerry faithful during his campaign.


As competition heated up with Apple, investors became concerned that RIM’s co-CEOs, in particular Balsillie, were distracted by the possibilities that success brought them, rather than focused on revamping the BlackBerry for a new era.


In 2009, Balsillie launched his third, and most aggressive, attempt to buy an National Hockey League team, with hopes that he could convince the NHL to move the Phoenix Coyotes to Hamilton. The battle dragged on for months before Balsillie abandoned his dream once again.


Back in Waterloo a storm was brewing as technical problems began to wreak havoc on the company’s network infrastructure.


There were two network outages in less than a year that left BlackBerry users temporarily without their services. Some industry observers suggested the company could buckle under its own success. BlackBerry sales were soaring, even with the technical problems, with subscriber growth up 70 per cent to 36 million by the end of 2009. RIM’s leaders reassured users that the outages were a fluke and wouldn’t be a reoccurring problem.


Despite the setbacks, the BlackBerry image appeared to emerge unscathed. In April 2010 it cracked the Top Five mobile phone carriers worldwide and soon afterwards Queen Elizabeth made a visit to RIM’s headquarters in Waterloo.


Behind the scenes there was unrest among the company’s board of directors as the leaders clashed over where the BlackBerry brand should go next. Rumours swirled around the industry that trouble was afoot.


Fanfare eventually gave way to the realities of competition, with the first major blow coming from the failed launch of the PlayBook, RIM’s answer to Apple’s iPad. In September 2010, the co-CEOs showcased the new product for the public but waited another six months before unleashing it to stores.


By then it was too late, the tablet market had already been cornered by Apple and reviews of the PlayBook harshly criticized its lack of connectivity to popular BlackBerry functions like email and instant messenger.


Within months the foundation of RIM started to crumble as it repeatedly missed its own revenue and earnings targets. In June 2011, the company slashed 11 per cent of its workforce, or 2,000 jobs, to keep its cost in line.


A stark reminder of its fragility came in October 2011 when a worldwide four-day outage left BlackBerry users again without the use of the device they had come to rely on. The smartphones wouldn’t connect to the Internet, email or its messaging services.


The anger from its loyal users was heard loud and clear, and Lazaridis emerged from days of silence to apologize and tell users the company had let them down.


In an earnings call several weeks later, Lazaridis urged investor “patience and confidence” as the executives tried to improve performance. Both he and Balsillie, two of the company’s biggest shareholders, reduced their salaries to $ 1.


Again, it was a decision made too late — the outage had cost RIM more than $ 50 million in revenue and tarnished its reputation. In December 2011, the company reported that profits tumbled more than 70 per cent, affected by a big charge from sales discounts it was forced make on PlayBook tablets.


Perhaps an even bigger blow to RIM’s reputation was the delay of its next-generation BlackBerrys, pushing the planned release into 2012. The phones — which were delayed again throughout last year and will be unveiled this Wednesday — were seen as the company’s best hope to maintain market share against Apple and Android devices.


The company stock had tumbled from its lofty height of $ 137.41 on the Toronto Stock Exchange in mid-2008 to $ 14.80 at the end of 2011.


RIM, once a symbol of Canadian success and innovation, had become awash in its own troubles. Apple’s iPhone had cornered the rapidly developing apps market while RIM sat on the sidelines with developers.


Sweeny recalls visiting a group of developers, who he considered BlackBerry fanatics, while doing research for his book in 2008.


“They were writing great games and programs for the BlackBerry and they couldn’t get the latest hardware from RIM to test them on,” he said.


“I called them a couple years later and they weren’t writing for BlackBerry at all. They were writing programs for Apple and starting to write for Android.”


From an outsider’s perspective, it’s often suggested that the co-CEOs lost control of their empire, but some industry watchers say that RIM saw the troubles several years earlier.


“In this market you can’t admit that you’re behind,” said Tim Long, an analyst at BMO Capital Markets.


“You have to put on the face because once you start to lose momentum that can shift the buying patterns.”


Numerous acquisitions were made by RIM throughout 2010 and 2011 to beef up its stable of technology, Long said. That included Ottawa-based QNX Software Systems, whose technology became the basis of the new operating system, and Astonishing Tribe, the Swedish company that helped develop an early user interface of the Android operating system.


But the acquisitions came too late, and by late 2011 some investors were calling for its leaders to resign.


Bowing to pressure, Balsillie and Lazaridis stepped down from their co-CEO positions in January 2012, pocketing a combined $ 12 million in the process. The duo were replaced by Thorsten Heins, RIM’s former chief operating officer, and hardly two months later Balsillie had left the company entirely.


Almost immediately, Heins launched a major revamp of RIM’s operations, hiring several new executives with experience at other major tech companies. The approach was a last-ditch effort to revive the company, but it has also thrown the BlackBerry maker into the most uncertain period in its history.


With nearly $ 2 billion in its coffers Heins had options, but the clock was ticking to get a new smartphone on the market.


“Nobody is delusional here,” Rick Costanzo, the company’s new executive vice-president of global sales, said last summer.


“We get it. That’s why we’re building BlackBerry 10 and man are we committed.”


A new chapter in RIM’s history begins this week as the BlackBerry 10 smartphones and operating system are showcased to the world.


Wireless News Headlines – Yahoo! News





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Ashton Kutcher Parties in Sundance After jOBS Premiere















01/26/2013 at 01:50 PM EST



Ashton Kutcher's much-hyped movie jOBS premiered at the Sundance Film Festival on Friday, and the star was on hand – minus girlfriend Mila Kunis – for all the festivities.

Kutcher was one of the first to arrive at the official after party, hosted by Nur Khan Presents NK on Main Street for the cast and filmmakers and sponsored by Red Touch Media.

Kutcher was captivated by a floor-to-ceiling portrait of late Apple visionary Steve Jobs, whom Kutcher portrays in the film. Guests were quick to snap a photo of the actor admiring the subject of his role.

Without Kunis by his side, Kutcher very much remained a one-man guy, focusing his attention all night on his table of male friends and colleagues and posing for pictures with fans, according to an observer. The pride he takes in jOBS was palpable, as Kutcher was incredibly excited to chat about his film and role with all the guests who came up to greet him.

Co-star Ahna O'Reilly spent the evening in a very social mood, dancing to the beats of DJ Cash and catching up with co-star Josh Gad. Not to live down his "funny man" persona, Gad went into the evening entertaining all the guests and causing an uproar of laughter with Kutcher and O'Reilly while catching up about filming and their time at Sundance.


– Jennifer Garcia


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CDC: Flu seems to level off except in the West


New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.


The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.


Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.


There is still vaccine available although it may be hard to find. The CDC has a website that can help.


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


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