Notre Dame’s Te’o says had no part in forming hoax

Jan 24 (Reuters) – Notre Dame football player Manti Te‘o said he was the victim of an elaborate online hoax and denied in an interview broadcast on Thursday having had any part in the construction of the dramatic story of his dying girlfriend.

“No, I did not,” Te’o said in the interview with Katie Couric broadcast on the daytime talk show “Katie.” “I think what people don’t realize is that the same day that everybody else found out about this situation, I found out.”

The reported deaths of Te’o's grandmother and purported girlfriend, both on Sept. 12, and his response to the tragedies, were often repeated stories during Notre Dame‘s bid for a national championship last season. His grandmother did die that day.

Te’o, who was a finalist for college football’s highest individual honor for helping drive Notre Dame to an undefeated regular season, admitted he maintained the public deception after he learned the truth that she had never existed, but he did not do so for personal gain.

Couric asked Te’o to respond to several theories people have raised since the hoax was revealed, including that he might be gay and created the relationship to hide his sexual orientation.

“No, far from it,” Te’o said when asked by Couric if he were gay. “Far from that.”

Te’o sat with his hands often clasped and responded in a soft tone to Couric‘s questions, telling her he did not know if the Lennay Kekua story had supported his Heisman trophy candidacy.

It was his first on-camera interview since sports blog Deadspin.com broke the story on Jan. 16 that Kekua did not exist. Couric also interviewed his parents, Brian and Ottilia Te‘o, who defended their son.

Notre Dame, one of the most powerful institutions in U.S. collegiate athletics, held a news conference within hours of the Deadspin.com story to say that Te’o had been duped.

Te’o had told sports network ESPN in an off-camera interview on Friday that an acquaintance, Ronaiah Tuiasosopo, had told him he was behind the hoax.

CONFESSED HOAX

Te’o said in the interview with Couric that Tuiasosopo, who he had spoken to twice before and had believed was Kekua‘s cousin, confessed the hoax to him on Jan. 16.

Te’o said he received a telephone call from the person claiming to be Kekua on Dec. 6 – two days before the Heisman presentation – and he wasn’t really certain she never existed until Tuiasosopo‘s confession to him.

“My whole reality was she was dead, and now all of the sudden she’s alive. At that time I didn’t know that it was just somebody’s prank.”

He went along with the Kekua story the day of the Heisman presentation, though he knew at a minimum that she was alive, and did not tell his parents until Christmas, he said.

“Part of me was saying that if you say she is alive what would everybody think? What are you going to tell everybody who follows you, who you inspire? What are you going to say? At that time, on Dec. 8, two days after I just found out she was alive, as a 21-year-old, I wasn’t ready for that.”

Te’o said he “wasn’t forthcoming” about the extent of his relationship with Kekua, that they had never met in person, but reporters did not ask him directly if they had met in person.

He said he was most sorry for having told his father he had seen Kekua in person when he was in Hawaii, a story that his father repeated to media when asked.

When asked why he wouldn’t simply want a girlfriend he could spend time with on campus, Te’o said he was drawn to Kekua because her background appeared similar to his own.

“What I went through was real,” Te’o said. “The feelings, the pain, the sorrow, that was all real. That is something I can’t fake.”

Te’o said he did not know how the hoax would affect his position in the National Football League draft.

“As far as my draft status, I hope and pray that good happens obviously, but as long as my family is OK, I can live with whatever happens,” he said. (Reporting by David Bailey; Editing by Cynthia Johnston and Tim Dobbyn)

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Myanmar Military Said to Make Progress in Fight Against Rebels

BANGKOK — Myanmar government troops on Saturday captured a crucial hilltop position outside the headquarters of ethnic Kachin rebels, two observers of the fighting said, a significant advance in a long and bloody campaign near the border with China.

The intense fighting come amid increased foreign criticism of the campaign and heightened tensions between the Burmese ethnic majority and minority groups, who make up one third of the country’s population.

In comments that are likely to anger Myanmar’s minorities, the country’s opposition leader, Daw Aung San Suu Kyi, expressed admiration for the military during a visit to Hawaii, where among other activities she is giving a speech titled “Peace Takes Courage and Compassion.”

“I’ve often been criticized for saying that I’m fond of the Burmese army, but I can’t help it — it’s the truth,” Ms. Aung San Suu Kyi, whose father was the founder of the modern Burmese army, said on Friday at the East-West Center in Honolulu.

The comments by Ms. Aung San Suu Kyi, who won the Nobel Peace Prize in 1991, were made in the context of the military’s role in helping secure independence from Britain. But given the timing they are likely to further alienate ethnic minorities, who have criticized her for not speaking out forcefully against the Kachin campaign.

The Myanmar military ruled Myanmar for five decades, brutally suppressing dissent and jailing its opponents, including Ms. Aung San Suu Kyi. A civilian government took power in 2011.

National reconciliation between the Burmese majority and many ethnic groups is seen as a crucial component of Myanmar’s moves toward democracy under President Thein Sein.

The fighting in Kachin has displaced tens of thousands of civilians in wintry conditions.

The military’s capture of the hilltop position, Hkayabum, comes a week after the government, in an apparent attempt to allay criticism by foreign governments over the air and ground campaign, announced a cease-fire with the rebels.

That cease-fire never went into effect, independent observers say. Instead the Myanmar army continued an intensive artillery assault on rebel positions.

“It’s been a nonstop barrage,” said Ryan Roco, an American photographer documenting the fighting from the front lines. “It’s raining mortars.”

Khon Ja, a Kachin humanitarian worker, said it was possible that rebel forces would retake the hilltop position and described the fighting as “cat and mouse.”

A spokesman for the government, Ye Htut, said he was not aware whether Hkayabum had been taken but that government troops are “very close to the post and heavy fighting is ongoing.”

The Myanmar government has repeatedly said it was acting in self-defense against the Kachin Independence Army, the rebel group known by its acronym KIA.

A statement by the Myanmar foreign ministry published in state newspapers on Saturday said the rebels had “attacked military column with strong forces” immediately after the cease-fire was announced on Jan. 18 and that the military, or Tatmadaw, as it is known in Burmese, had no choice but to fight back.

“As KIA troops have constantly launched such terrorist attacks, the Tatmadaw had to take military actions just to protect and safeguard the peace and tranquillity of the community and for the prevalence of law and order,” the statement said.

Outside observers have challenged that view, saying the military has advanced their positions even as they claim to be acting in self-defense.

The United States embassy in Yangon said on Thursday that it was “deeply concerned” by what it called a continued offensive.

“The United States strongly opposes the ongoing fighting, which has resulted in civilian casualties and undermined efforts to advance national reconciliation,” the statement said.

Myanmar’s foreign ministry criticized the American statement, saying it was “endeavoring in good faith” to achieve a cease-fire.

In the same statement, the foreign ministry said it “strongly objects” to the use of the word “Burma” by the United States government. Using the country’s former name, it said, “may affect mutual respect, mutual understanding and cooperation which have recently been restored between the two countries.”

A military junta changed the country’s English name from Burma to Myanmar in 1989, soon after the bloody suppression of a popular uprising against military rule. The violent context of the name change made many foreign government reluctant to go along with it. But today most governments call the country Myanmar.

Wai Moe contributed reporting from Yangon.

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Waiter Michael Garcia Refuses to Serve Man Who Insulted Boy with Down Syndrome

By Dahvi Shira

01/26/2013 at 09:00 AM EST

Waiter Michael Garcia made his regular customer Kim Castillo feel like family last week at the Houston restaurant Laurenzo's Prime Rib.

Castillo was eating there with her husband and their 5-year-old son Milo when several waiters came by their table to chat. Milo, who has Down syndrome, has slightly delayed speech. He showed off some new words, while talking about his recent birthday.

The chatter apparently displeased a nearby customer, who, according to NBC affiliate KPRC-TV, said, "Special needs children need to be special somewhere else."

Once Garcia heard the man's comment, "My personal feelings took over, and I told him, 'I'm not going to be able to serve you, Sir,' " he told the news channel. "[I said], 'How could you say that? How could you say that about a beautiful 5-year-old angel?' "

Castillo, "impressed" with Garcia's actions, says the waiter "put [his] job on the line … to stand up for somebody else."

Calling the man who insulted her son, "ignorant," Castillo adds, "I know Michael [stood up for Milo] from his heart, and from reacting to the situation. I don't think he stopped and thought about what he was doing."

Following the incident, Castillo wrote a blog post defending her son.

"Was he loud? Maybe a little in the moment, but honestly, the adults at our table were three times louder than he was," she said. "If he had been obnoxious, which like any other 5-year-old he can be, I wouldn't have thought twice about the family asking to move."

Meanwhile the restaurant's Facebook page has lit up with praise for Garcia and the supportive staff there.

"I am a Father of a special needs child and I applaud you and your employee, Michael Garcia, for standing up to intolerance and helping to educate people who fear the most precious of all children, those with special needs and disabilities," read one post.

He added, "Although I am a resident of California, I work for a [company] headquartered in Texas and am there on occasion for business. I will be sure to drop by and say hello and thank you when in town!"

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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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Wall Street Week Ahead: Bears hibernate as stocks near record highs

NEW YORK (Reuters) - Stocks have been on a tear in January, moving major indexes within striking distance of all-time highs. The bearish case is a difficult one to make right now.

Earnings have exceeded expectations, the housing and labor markets have strengthened, lawmakers in Washington no longer seem to be the roadblock that they were for most of 2012, and money has returned to stock funds again.

The Standard & Poor's 500 Index <.spx> has gained 5.4 percent this year and closed above 1,500 - climbing to the spot where Wall Street strategists expected it to be by mid-year. The Dow Jones industrial average <.dji> is 2.2 percent away from all-time highs reached in October 2007. The Dow ended Friday's session at 13,895.98, its highest close since October 31, 2007.

The S&P has risen for four straight weeks and eight consecutive sessions, the longest streak of days since 2004. On Friday, the benchmark S&P 500 ended at 1,502.96 - its first close above 1,500 in more than five years.

"Once we break above a resistance level at 1,510, we dramatically increase the probability that we break the highs of 2007," said Walter Zimmermann, technical analyst at United-ICAP, in Jersey City, New Jersey. "That may be the start of a rise that could take equities near 1,800 within the next few years."

The most recent Reuters poll of Wall Street strategists estimated the benchmark index would rise to 1,550 by year-end, a target that is 3.1 percent away from current levels. That would put the S&P 500 a stone's throw from the index's all-time intraday high of 1,576.09 reached on October 11, 2007.

The new year has brought a sharp increase in flows into U.S. equity mutual funds, and that has helped stocks rack up four straight weeks of gains, with strength in big- and small-caps alike.

That's not to say there aren't concerns. Economic growth has been steady, but not as strong as many had hoped. The household unemployment rate remains high at 7.8 percent. And more than 75 percent of the stocks in the S&P 500 are above their 26-week highs, suggesting the buying has come too far, too fast.

MUTUAL FUND INVESTORS COME BACK

All 10 S&P 500 industry sectors are higher in 2013, in part because of new money flowing into equity funds. Investors in U.S.-based funds committed $3.66 billion to stock mutual funds in the latest week, the third straight week of big gains for the funds, data from Thomson Reuters' Lipper service showed on Thursday.

Energy shares <.5sp10> lead the way with a gain of 6.6 percent, followed by industrials <.5sp20>, up 6.3 percent. Telecom <.5sp50>, a defensive play that underperforms in periods of growth, is the weakest sector - up 0.1 percent for the year.

More than 350 stocks hit new highs on Friday alone on the New York Stock Exchange. The Dow Jones Transportation Average <.djt> recently climbed to an all-time high, with stocks in this sector and other economic bellwethers posting strong gains almost daily.

"If you peel back the onion a little bit, you start to look at companies like Precision Castparts , Honeywell , 3M Co and Illinois Tool Works - these are big, broad-based industrial companies in the U.S. and they are all hitting new highs, and doing very well. That is the real story," said Mike Binger, portfolio manager at Gradient Investments, in Shoreview, Minnesota.

The gains have run across asset sizes as well. The S&P small-cap index <.spcy> has jumped 6.7 percent and the S&P mid-cap index <.mid> has shot up 7.5 percent so far this year.

Exchange-traded funds have seen year-to-date inflows of $15.6 billion, with fairly even flows across the small-, mid- and large-cap categories, according to Nicholas Colas, chief market strategist at the ConvergEx Group, in New York.

"Investors aren't really differentiating among asset sizes. They just want broad equity exposure," Colas said.

The market has shown resilience to weak news. On Thursday, the S&P 500 held steady despite a 12 percent slide in shares of Apple after the iPhone and iPad maker's results. The tech giant is heavily weighted in both the S&P 500 and Nasdaq 100 <.ndx> and in the past, its drop has suffocated stocks' broader gains.

JOBS DATA MAY TEST THE RALLY

In the last few days, the ratio of stocks hitting new highs versus those hitting new lows on a daily basis has started to diminish - a potential sign that the rally is narrowing to fewer names - and could be running out of gas.

Investors have also cited sentiment surveys that indicate high levels of bullishness among newsletter writers, a contrarian indicator, and momentum indicators are starting to also suggest the rally has perhaps come too far.

The market's resilience could be tested next week with Friday's release of the January non-farm payrolls report. About 155,000 jobs are seen being added in the month and the unemployment rate is expected to hold steady at 7.8 percent.

"Staying over 1,500 sends up a flag of profit taking," said Jerry Harris, president of asset management at Sterne Agee, in Birmingham, Alabama. "Since recent jobless claims have made us optimistic on payrolls, if that doesn't come through, it will be a real risk to the rally."

A number of marquee names will report earnings next week, including bellwether companies such as Caterpillar Inc , Amazon.com Inc , Ford Motor Co and Pfizer Inc .

On a historic basis, valuations remain relatively low - the S&P 500's current price-to-earnings ratio sits at 15.66, which is just a tad above the historic level of 15.

Worries about the U.S. stock market's recent strength do not mean the market is in a bubble. Investors clearly don't feel that way at the moment.

"We're seeing more interest in equities overall, and a lot of flows from bonds into stocks," said Paul Zemsky, who helps oversee $445 billion as the New York-based head of asset allocation at ING Investment Management. "We've been increasing our exposure to risky assets."

For the week, the Dow climbed 1.8 percent, the S&P 500 rose 1.1 percent and the Nasdaq advanced 0.5 percent.

(Reporting by Ryan Vlastelica; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)

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IHT Rendezvous: France Is Sweet on 'Sugar Man'

A love story is developing between the French and Rodriguez, the Detroit-born musician who flopped in the 1970s, was a star without knowing it in apartheid South Africa and was rediscovered last summer in the United States when the documentary “Searching for Sugar Man” was released.

The film tells the extraordinary story of a talented and philosophical musician who spent his life working in construction while struggling to bring up his three daughters, and the mind-boggling mutual discoveries in 1997: for him, that he was more famous than the Rolling Stones in South Africa, and for South African fans (who believed him to be dead), that he was alive.

The Swedish-U.K. film by Malik Bendjelloul which has made more than $3 million at the box office in the United States, has been nominated for an Academy Award in the documentary category. In France the now-70-year-old Rodriguez has created something of a frenzy: the soundtrack album is among Sony France’s top sales on iTunes. Sony had planned on putting fewer than 3,000 CDs in stores, but after calls from vendors who sensed something was up, made 15,000 copies available.

“It is an honor and a pleasure,” said Rodriguez in an email message last week from Detroit about his popularity in France. “I’ve been to France a couple of times now. It feels like I’m on top of the world.”

The French public has had a tradition of adopting American artists that it considers underappreciated in the United States, from Josephine Baker to Woody Allen, from Paul Auster to Ben Harper. Le Figaro newspaper recently dubbed Rodriguez the “unloved” singer.

David Nivesse, from ARP Selection, the film’s French distributor, and Christophe Servel Molvaer, project manager for Sony Music Legacy, France, say that it all started last November when Rodriguez came to Paris for a private concert following a preview of the documentary.

“He played for half an hour and you could hear a pin drop. There were 600 people in the room and he got a standing ovation,” Mr. Servel Molvaer recalled. “I had never heard of him before. But from the beginning I was captivated by this soul-funk. It’s something magical, and people love his music from the moment they hear it.”

“Music is a language all it’s own,” wrote Rodriguez. “I’ve been playing ‘La Vie En Rose’ a lot lately when I’m looking for sounds. It’s the notes and the rhythms— that is what speaks to me. I’m a music lover. I do vocal against guitar. Sometimes it’s like any words will work. A lot of songs out there have fewer words than guttural sounds like oohs and ahhs and grunts. That works for some people too. I’m glad the French like my stuff. It’s had a long life and I feel lucky for that.”

“Searching for Sugar Man” was released Dec. 26 in just two Paris cinemas. It has beaten all records at the Left Bank Saint Germain movie theater where it is playing. It’s now playing in other cities in France including Bordeaux, Rennes and Nancy.

“We thought the film would do well but this is exceptional,” Mr. Nivesse said.

Rodriguez is playing concerts around the world now. One gig was scheduled for this June at La Cigale, a major Paris venue. It sold out within 72 hours. Another concert was added at the Zenith (capacity 6,500). He is also expected to play at the major French summer music festivals.

“I’ve been working 25 years in the business and never met anyone like this, with so much charisma, even though he doesn’t say much,” said Mr. Servel Molvaer.

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Penalty could keep smokers out of health overhaul

WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.

The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.

For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.

Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.

Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.

Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.

Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.

Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.

"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.

"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.

Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.

"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."

Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.

First, the law allows insurers to charge older adults up to three times as much as their youngest customers.

Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.

And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.

Here's how the math would work:

Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.

But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.

"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.

In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.

Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.

"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."

___

Online:

Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx

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Stock index futures signal mixed Wall Street open

LONDON (Reuters) - Stock futures pointed to a mixed open on Wall Street on Friday, with futures for the S&P 500 rising 0.2 percent, the Dow Jones futures down 0.2 percent and the Nasdaq 100 futures up 0.3 percent.

Apple stepped up audits of working conditions at major suppliers last year, discovering multiple cases of underage workers, discrimination and wage problems.

Samsung Electronics turned cautious on spending for the first time since the global financial crisis, keeping its annual investment plan unchanged at 2012 levels, as demand for computer chips wanes and the smartphone market slows.

Procter & Gamble , the world's top household products maker, and smaller rival Kimberly-Clark will kick off the earnings season for U.S. household products makers. Halliburton , the world's second-largest oilfield services company, is also due to report results.

Honeywell , the diversified U.S. manufacturer, will be in focus as it reports earnings, with modest growth in demand for systems used to manage large buildings expected to be offset by declining sales to the military.

The Commerce Department releases new home sales data for December at 1500 GMT. Economists forecast a total of 385,000 annualized units, compared with 377,000 in November.

Economic Cycle Research Institute releases its weekly index of economic activity for January 18 at 1530 GMT. In the prior week the index read 130.

European shares <.fteu3> rose 0.1 percent after a survey showed German business morale improved for a third consecutive month in January.

The smallest of gains gave the Standard & Poor's 500 its seventh straight winning day on Thursday, but the index failed to hold above the 1,500 line, restrained by Apple's worst day in more than four years.

The Dow Jones industrial average <.dji> rose 0.33 percent at the close, the S&P 500 <.spx> ended flat and the Nasdaq Composite <.ixic> dropped 0.74 percent. Most of the Nasdaq's loss was due to Apple's slide of more than 12 percent after disappointing earnings.

(Reporting by Atul Prakash; Editing by Susan Fenton)

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Sony fined in UK over PlayStation cyberattack

LONDON (AP) — British regulators have fined Sony 250,000 pounds ($ 396,100) for failing to prevent a 2011 cyberattack on its PlayStation Network which put millions of users’ personal information — including names, addresses, birth dates and account passwords — at risk.

Britain’s Information Commissioner’s Office said Thursday that security measures in place at the time “were simply not good enough.” It said the attack could have been prevented if software had been up to date, while passwords were also not secure.

David Smith, deputy commissioner and director of data protection, acknowledged that the fine for a “serious breach of the Data Protection Act” was “clearly substantial” but said that the office makes “no apologies” for that.

“There’s no disguising that this is a business that should have known better,” he said in a statement. “It is a company that trades on its technical expertise, and there’s no doubt in my mind that they had access to both the technical knowledge and the resources to keep this information safe.”

Smith called the case “one of the most serious ever reported” to the data regulator.

Sony, which has previously apologized for the data breach, said Thursday it “strongly disagrees” with the ruling and plans to appeal.

David Wilson, a spokesman for Sony Computer Entertainment Europe Ltd., said the company noted that the ICO recognized that Sony was the victim of a criminal attack and that there is no evidence payment card details were accessed.

“Criminal attacks on electronic networks are a real and growing aspect of 21st century life and Sony continually works to strengthen our systems, building in multiple layers of defense and working to make our networks safe, secure and resilient,” he said in a statement.

————————

Cassandra Vinograd can be reached at http://twitter.com/CassVinograd

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Cameron Defends Decision to Seek E.U. Vote

PARIS — Prime Minister David Cameron of Britain on Thursday defended his decision to seek a referendum on his country’s membership in the European Union, saying his goal was to reform the 27-nation bloc, not to retreat into isolation.

“This is not about turning our backs on Europe, quite the opposite,” Mr. Cameron told an audience at the World Economic Forum in Davos, Switzerland, ““It’s about how we make the case for a more competitive, open and flexible Europe, and secure the U.K.’s place within it.”

On Wednesday, Mr. Cameron pledged to hold a referendum on Britain’s European Union membership within five years, assuming his Conservative Party is re-elected in the next national election scheduled for 2015. The proposal met with deep skepticism elsewhere in the European Union, but Mr. Cameron’s party — which has long struggled over the question of Europe — welcomed it.

In Davos, Mr. Cameron pointedly portrayed Britain mainly as a global force, independent of the E.U., emphasizing the role of more informal international bodies like the Group of 8 nations as a forum for action. And he noted that Britain had been the first E.U. nation to support France, providing logistical support after President François Hollande sent troops to Mali to thwart an Islamist takeover.

“We are a global nation, with global interests and global reach,” Mr. Cameron said. “If you think all this is an unashamed advert for the U.K. and U.K. business — you’re absolutely right.”

But it was in his remarks about Europe, that Mr. Cameron was most passionate.

“When you have a single currency you move inexorably toward a banking union and forms of fiscal union and that has huge implications for countries like the U.K. who are not in the euro and never will be,” Mr. Cameron said. Rather than ignore that “the club we belong to is changing,” he said, the right approach was to “negotiate a new settlement for Europe that works for the U.K. and then let’s get fresh consent for it.”

Mr. Cameron once again laid down Britain’s line in the sand on European integration, saying: “If you mean Europe has to become a political union, if there should be a country called Europe, I don’t agree.”

“Should we show political will? Yes,” he said, adding: “But a centralized political union? Not for me, not for Britain.”

Mr. Cameron also responded to suggestions that the referendum had increased the uncertainty for investors into Britain, arguing that it was better to be open and set out a clear path so businesses “can see that we have a plan” for resolving the question.

“There is a debate under way in the U.K. about E.U. membership,” he said, adding: “The riskiest course of all would be to sit back and do nothing.”

In Britain on Thursday, Mr. Cameron’s announcement of a referendum drew a mixed response from business leaders, 56 of whom signed a letter to The Times of London endorsing his decision and saying: “We need a new relationship with the E.U., backed by democratic mandate.”

Those whose names appeared below the letter included the heads of the London Stock Exchange, beverages giant Diageo and the engineering company Rolls-Royce.

But other business leaders and newspaper columnists said the prospect of a five-year debate about a possible British departure from the European Union introduced an element of economic uncertainty that would deter foreign investors.

The BBC quoted David Sproul, the head of accountancy firm Deloitte’s operations in Britain, as saying: “The Europe debate does not create certainty.”

He added:”There is no question it will impact Britain — it will hit investment into the U.K.”

Alan Cowell contributed reporting from London.

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'Sweet' Rooney Mara Enjoys Vegan Fare at Sundance

Caught in the Act

01/24/2013 at 06:00 AM EST

From The Girl with the Dragon Tattoo to the Girl with the Vegan Menu!

On Monday night, Rooney Mara celebrated her new movie Ain't Them Bodies Saints at the Sundance Film Festival in Park City, Utah.

Joined by the cast – including Casey Affleck, Ben Foster and Nate Parker – and her boyfriend Charlie McDowell, Mara enjoyed a private vegan dinner at Wahson hosted by Nylon and ASOS.

Rooney was reserved, staying close to her boyfriend, observed a guest, who added, "They were sweet."

Mara – who is a vegan – and cast indulged in cabbage spring rolls, green tea sorbet with berries and forbidden tofu, which is made with crispy tofu, aromatic black rice, coconut eggplant, thai basil and lychee vinaigrette.

– Jennifer Garcia

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Women have caught up to men on lung cancer risk

Smoke like a man, die like a man.

U.S. women who smoke today have a much greater risk of dying from lung cancer than they did decades ago, partly because they are starting younger and smoking more — that is, they are lighting up like men, new research shows.

Women also have caught up with men in their risk of dying from smoking-related illnesses. Lung cancer risk leveled off in the 1980s for men but is still rising for women.

"It's a massive failure in prevention," said one study leader, Dr. Michael Thun of the American Cancer Society. And it's likely to repeat itself in places like China and Indonesia where smoking is growing, he said. About 1.3 billion people worldwide smoke.

The research is in Thursday's New England Journal of Medicine. It is one of the most comprehensive looks ever at long-term trends in the effects of smoking and includes the first generation of U.S. women who started early in life and continued for decades, long enough for health effects to show up.

The U.S. has more than 35 million smokers — about 20 percent of men and 18 percent of women. The percentage of people who smoke is far lower than it used to be; rates peaked around 1960 in men and two decades later in women.

Researchers wanted to know if smoking is still as deadly as it was in the 1980s, given that cigarettes have changed (less tar), many smokers have quit, and treatments for many smoking-related diseases have improved.

They also wanted to know more about smoking and women. The famous surgeon general's report in 1964 said smoking could cause lung cancer in men, but evidence was lacking in women at the time since relatively few of them had smoked long enough.

One study, led by Dr. Prabhat Jha of the Center for Global Health Research in Toronto, looked at about 217,000 Americans in federal health surveys between 1997 and 2004.

A second study, led by Thun, tracked smoking-related deaths through three periods — 1959-65, 1982-88 and 2000-10 — using seven large population health surveys covering more than 2.2 million people.

Among the findings:

— The risk of dying of lung cancer was more than 25 times higher for female smokers in recent years than for women who never smoked. In the 1960s, it was only three times higher. One reason: After World War II, women started taking up the habit at a younger age and began smoking more.

—A person who never smoked was about twice as likely as a current smoker to live to age 80. For women, the chances of surviving that long were 70 percent for those who never smoked and 38 percent for smokers. In men, the numbers were 61 percent and 26 percent.

—Smokers in the U.S. are three times more likely to die between ages 25 and 79 than non-smokers are. About 60 percent of those deaths are attributable to smoking.

—Women are far less likely to quit smoking than men are. Among people 65 to 69, the ratio of former to current smokers is 4-to-1 for men and 2-to-1 for women.

—Smoking shaves more than 10 years off the average life span, but quitting at any age buys time. Quitting by age 40 avoids nearly all the excess risk of death from smoking. Men and women who quit when they were 25 to 34 years old gained 10 years; stopping at ages 35 to 44 gained 9 years; at ages 45 to 54, six years; at ages 55 to 64, four years.

—The risk of dying from other lung diseases such as emphysema and chronic bronchitis is rising in men and women, and the rise in men is a surprise because their lung cancer risk leveled off in 1980s.

Changes in cigarettes since the 1960s are a "plausible explanation" for the rise in non-cancer lung deaths, researchers write. Most smokers switched to cigarettes that were lower in tar and nicotine as measured by tests with machines, "but smokers inhaled more deeply to get the nicotine they were used to," Thun said. Deeper inhalation is consistent with the kind of lung damage seen in the illnesses that are rising, he said.

Scientists have made scant progress against lung cancer compared with other forms of the disease, and it remains the leading cause of cancer deaths worldwide. More than 160,000 people die of it in the U.S. each year.

The federal government, the Canadian Institutes of Health Research, the Bill and Melinda Gates Foundation, the cancer society and several universities paid for the new studies. Thun testified against tobacco companies in class-action lawsuits challenging the supposed benefits of cigarettes with reduced tar and nicotine, but he donated his payment to the cancer society.

Smoking needs more attention as a health hazard, Dr. Steven A. Schroeder of the University of California, San Francisco, wrote in a commentary in the journal.

"More women die of lung cancer than of breast cancer. But there is no 'race for the cure' for lung cancer, no brown ribbon" or high-profile advocacy groups for lung cancer, he wrote.

Kathy DeJoseph, 62, of suburban Atlanta, finally quit smoking after 40 years — to qualify for lung cancer surgery last year.

"I tried everything that came along, I just never could do it," even while having chemotherapy, she said.

It's a powerful addiction, she said: "I still every day have to resist wanting to go buy a pack."

___

Online:

American Cancer Society: http://www.cancer.org

National Cancer Institute: http://www.cancer.gov/cancertopics/tobacco/smoking and http://www.cancer.gov/cancertopics/types/lung

Medical journal: http://www.nejm.org

___

Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Stock futures signal losses; all eyes on Apple

PARIS (Reuters) - Stock index futures pointed to a lower open on Wall Street on Thursday, with futures for the S&P 500 down 0.22 percent, Dow Jones futures up 0.02 percent and Nasdaq 100 futures down 1.3 percent at 1014 GMT.

Shares of Apple Inc will be in the spotlight after the world's biggest tech company missed Wall Street's revenue forecast for the third straight quarter after iPhone sales came in below expectations, fanning fears that its dominance of consumer electronics is slipping.

Shares of the company traded in Frankfurt were down 8 percent early. They sank 10 percent to $463 in after-hours trade on Wall Street on Wednesday night, wiping out some $50 billion of its market value - nearly equivalent to that of Hewlett-Packard and Dell combined.

A U.S. trade panel that specializes in patent disputes will review a potentially key decision in the patent fight between Samsung Electronics and Apple Inc over smartphones and tablets.

European shares were mostly flat in morning trade, as bullish economic data out of China offset Apple's weaker-than-expected figures which fanned earnings worries in the technology sector. <.eu/>

Noble Corp , owner of the world's third-largest offshore drilling fleet, reported on Wednesday a lower-than-expected quarterly profit as it struggled with maintenance for five high-end rigs, even as demand for its most capable units increased.

Raymond James Financial Inc said quarterly profit rose 27.6 percent, boosted by strong performance from its brokerage and capital markets divisions.

Investors in U.S.-based mutual funds pumped $9.32 billion into stock funds in the week ended January 16, the second consecutive week of inflows for such funds, data from the Investment Company Institute showed on Wednesday.

Hard disk drive maker Western Digital Corp's second-quarter results beat analysts' expectations, helped by growth in its enterprise segment. Shipment in the enterprise segment rose about 10 percent from first-quarter levels to 6.63 million units, analyst Nehal Chokshi of Technology Insights Research told Reuters.

Japanese regulators have joined their U.S. counterparts in all but ruling out overcharged batteries as the cause of recent fires on the Boeing Co 787 Dreamliner, which has been grounded for a week with no end in sight.

Amgen Inc on Wednesday projected revenue for 2013 that exceeds Wall Street estimates and said it was on track to deliver on its 2015 forecasts well ahead of schedule.

Pamplona Capital Management, holder of 9.3 percent of Nabors Industries Ltd , has become "increasingly concerned" about the underperformance of the drilling rig contractor's shares, according to a regulatory filing on Wednesday.

Symantec Corp plans to slash its management ranks and reorganize into 10 business areas, but has decided not to sell off major assets after a strategic review by its new early this month.

SanDisk Corp's modest revenue outlook disappointed investors looking for a rebound in memory chips widely used in smartphones and tablets, sending its shares lower.

Netflix Inc surprised Wall Street on Wednesday with a quarterly profit after the video subscription service added nearly 4 million customers in the United States and abroad, sending its shares 35 percent higher in after-hours trading.

Among the companies set to report results on Thursday feature Bristol-Myers Squibb , Lockheed Martin , 3M Company , Microsoft , Raytheon , Starbucks , AT&T Inc. , and Xerox Corp. .

On the macro front, investors awaited weekly jobless claims, at 1330 GMT, Markit Manufacturing PMI for January, due at 1358 GMT, and December leading economic indicators, due at 1500 GMT.

The S&P 500 rose for a sixth day on Wednesday after stronger-than-expected profits from IBM and Google but the rally could be halted as Apple's after-hours miss sent its shares lower.

The Dow Jones industrial average <.dji> rose 67.12 points or 0.49 percent, to 13,779.33, the S&P 500 <.spx> gained 2.25 points or 0.15 percent, to 1,494.81, and the Nasdaq Composite <.ixic> added 10.49 points or 0.33 percent, to 3,153.67.

(Reporting by Blaise Robinson)

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Google’s 4Q earnings rise despite Motorola woes

SAN FRANCISCO (AP) — Google eked out slightly higher earnings in the fourth quarter, despite a financial drag caused by the Internet search leader’s expansion into device manufacturing and a decline in digital ad prices as more people gaze into the smaller screens of smartphones.

The results announced Tuesday pleased investors, helping to lift Google’s stock by 5 percent in extended trading.

More advertising poured into Google during the holiday shopping season, fueling a moneymaking machine that has steadily churned out higher profits since the company went public in 2004. Google’s fourth-quarter ad revenue totaled $ 12.1 billion, a 19 percent increase from the previous year.

Some of that money, though, has been shifting away from personal computers as advertisers try to connect with an expanding audience that relies on smartphones and tablet computers to reach Google’s search engine, email and other online services. By some estimates, about one-fourth of the clicks on Google’s search ads are now coming from mobile devices.

So far, advertisers have been unwilling to pay as much money to market their wares on mobile devices, largely because the smaller screens leave less room for commercial links and other marketing messages. The trend is one of the reasons that the average price for the ads that Google shows next to its search results has fallen from the previous year in five consecutive quarters, including the final three months of last year.

In a positive sign, though, Google’s average ad prices in the most recent quarter dropped by just 6 percent from the same period in 2011. That’s the smallest decline during the pricing downturn, raising hopes that Google may be starting to solve the pricing problems posed by the growing usage of mobile devices.

In a conference call Tuesday, Google CEO Larry Page predicted ad prices will gradually rise as the devices become even more sophisticated to unleash new ways to reach potential customers at the times they are most likely to buy something.

“In today’s multi-screen world, the opportunities are endless,” Page said.

Google earned nearly $ 2.9 billion, or $ 8.62 per share, during the fourth quarter. That compared to net income of $ 2.7 billion, or $ 8.22 per share, at the same time last year.

If not for the costs of employee stock compensation and certain other accounting items, Google said it would have earned $ 10.65 per share. On that basis, Google exceeded the average earnings estimate of $ 10.54 among analysts surveyed by FactSet.

It proved to be a difficult quarter to decipher because of an accounting quirk and the additions of new business lines that muddied the comparisons with the previous year.

For instance, Google Inc. didn’t own Motorola Mobility in 2011, having completed its $ 12.4 billion acquisition of the troubled handset maker eight months ago. What’s more, the Google is bringing in more revenue from tablet computers, which it began selling under the Nexus brand during the final half of last year.

Things were further complicated by Google’s recent agreement to sell a part of the Motorola Mobility division that makes cable TV boxes. That division is now accounted for as a discontinued operation whose revenue wasn’t booked in the latest quarter, even though it will remain a part of Google until the $ 2.35 billion sale is completed later this year.

Under that equation, revenue surged 36 percent from the previous year to $ 14.4 billion.

After subtracting advertising expenses, Google’s revenue totaled $ 11.3 billion. That figure was well below the average analyst estimate of $ 12.1 billion, according to FactSet.

But many of the analyst forecasts included revenue from Motorola Mobility’s set-top division, which Google excluded from its breakdown. Had the set-top division been included in Google’s accounting, the company’s net revenue would have matched analyst estimates.

The performance boosted Google’s stock by $ 35.33 to $ 738.20 in Tuesday’s extended trading.

Google would be doing even better if not for problems at Motorola Mobility, a cellphone pioneer that has been struggling since Apple revolutionized the industry with the release of the iPhone in 2007.

Motorola Mobility suffered an operating loss of $ 353 million on revenue of $ 1.5 billion in the fourth quarter

Google has been able to offset the slump in its search advertising prices by selling more video advertising on its YouTube subsidiary and other more graphical forms of marketing. The number of clicks on Google ads has still been rising, too. That’s important because the company typically gets paid by the click. In the fourth quarter, Google’s total ad clicks rose 24 percent from the previous year.

To gain a foothold in the mobile market, Google bakes its services into its Android software, an operating system that it gives away to makers of smartphones and tablets.

Android is now powers more than 500 million mobile devices worldwide, giving it a wide lead over Apple’s software for iPhones and iPads. Through September, Apple had shipped about 370 million iPhones and iPads. Apple Inc., which has morphed from a Google ally to bigger rival in the past five years, is scheduled to release its fourth-quarter results after the stock market closes Wednesday.

Google, which is based in Mountain View, Calif., didn’t update how many more Android devices were activated in the fourth quarter..

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IHT Rendezvous: A Crystal Award for Charlize Theron

DAVOS, Switzerland — The actress Charlize Theron and two documentary filmmakers received awards for their humanitarian work as the World Economic Forum opened in Davos Tuesday.

Ms. Theron, who won the best actress Oscar in 2004 for the film “Monster,” was honored Tuesday for her work fighting H.I.V. among impoverished young people in South Africa, where she was born.

Ms. Theron’s appearance was a bit of a departure for the World Economic Forum, which had dialed back the celebrity glamour after the appearance in 2006 by Brad Pitt and Angelina Jolie threatened to overshadow the rest of the annual meeting.

Ms. Theron was decidedly lowkey and humble as she accepted the Forum’s Crystal award from a stage in the Davos Congress Center.

“There is an incredible brain trust in this room,” she said, referring to the Davos participants. “I feel like I’m getting smarter just by osmosis.”

Wearing a simple blue dress and heels, Ms. Theron noted, with some understatement, that she was often in the spotlight. “I decided the best thing you can do with that spotlight is to stand in the shadow of something and shed some light,” she said.

The Charlize Theron Africa Outreach Project finances programs designed to prevent the spread of H.I.V. among young Africans, particularly in South Africa, which has 5.9 million infected people, Ms. Theron said. According to the organization’s Web site, charlizeafricaoutreach.org, the programs include mobile health services in an exceptionally impoverished region of South Africa.

The World Economic Forum also honored two other artists: Sharmeen Obaid-Chinoy, a Pakistani filmmaker; and Vik Muniz, a Brazilian artist.

Ms. Obaid-Chinoy’s film “Saving Face” chronicles the efforts of a plastic surgeon to help women disfigured by acid thrown by abusive husbands or other family members. In her acceptance remarks, Ms. Obaid-Chinoy said the film, which won an Oscar in 2012 for best short documentary, had prompted Pakistan to increase criminal penalties for such acts.

Mr. Muniz and his work was featured in “Waste Land,” a documentary about the lives of scavengers at the world’s largest garbage dump, outside Rio de Janeiro. In 2011 the film was nominated for an Academy Award.

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PEOPLE's Music Critic: Why We're Upset About Beyoncé's Lip-Synching Drama

By Chuck Arnold

01/22/2013 at 08:40 PM EST

Did she lip-synch or didn't she?

That's the question surrounding Beyoncé after reports surfaced that she didn't sing "The Star-Spangled Banner" live at yesterday's presidential inauguration.

A spokesperson for the U.S. Marine Band, which backed the pop diva at the ceremony, said Tuesday that Mrs. Jay-Z decided to use a previously recorded vocal track before delivering the national anthem, but later on another spokesperson, this one for the Pentagon, said there was no way of knowing whether the 16-time Grammy winner was guilty of lip-synching or not.

Should it matter? Let's remember that Whitney Houston, in what is widely considered one of the best renditions of "The Star-Spangled Banner" of all time, didn't sing it live either at the 1991 Super Bowl.

There are all sorts of technical reasons why it can be challenging to perform a song as difficult as this on such a large scale, and there are many extenuating circumstances that could have played a role in any decision to lip-synch. Certainly no one is questioning whether Beyoncé – who, in removing her earpiece midway through, may have been experiencing audio problems – has the chops to sing it.

Lip-synching – or at least singing over pre-recorded vocal tracks – has long been acceptable for dance-driven artists like Madonna, Janet Jackson and Britney Spears, whose emphasis on intense, intricate choreography makes it hard to execute the moves fans have come to expect while also singing live. Huffing and puffing into the microphone or barely projecting for the sake of keeping it real just isn't gonna cut it. Of course, there have been other instances – such as Ashlee Simpson's 2004 Saturday Night Live debacle – where faking it crossed the line.

Surely there wouldn't be the same controversy about Beyoncé had she been hoofing across the stage performing "Single Ladies (Put a Ring on It)" on one of her tour stops. But this was the presidential inauguration, the national anthem, and there was no choreography involved.

Some things have to remain sacred, and for "the land of the free and the home of the brave," this was one of them.

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Foes of NYC soda size limit doubt racial fairness

NEW YORK (AP) — Opponents of the city's limit on the size of sugary drinks are raising questions of racial fairness alongside other complaints as the novel restriction faces a court test.

The NAACP's New York state branch and the Hispanic Federation have joined beverage makers and sellers in trying to stop the rule from taking effect March 12. With a hearing set Wednesday, critics are attacking what they call an inconsistent and undemocratic regulation, while city officials and health experts defend it as a pioneering and proper move to fight obesity.

The issue is complex for the minority advocates, especially given obesity rates that are higher than average among blacks and Hispanics, according to the federal Centers for Disease Control. The groups say in court papers they're concerned about the discrepancy, but the soda rule will unduly harm minority businesses and "freedom of choice in low-income communities."

The latest in a line of healthy-eating initiatives during Mayor Michael Bloomberg's administration, the beverage rule bars restaurants and many other eateries from selling high-sugar drinks in cups or containers bigger than 16 ounces. Violations could bring $200 fines; the city doesn't plan to start imposing those until June.

The city Board of Health OK'd the measure in September. Officials cited the city's rising obesity rate — about 24 percent of adults, up from 18 percent in 2002 — and pointed to studies linking sugary drinks to weight gain. Care for obesity-related illnesses costs more than $4.7 billion a year citywide, with government programs paying about 60 percent of that, according to city Health Commissioner Dr. Thomas Farley.

"It would be irresponsible for (the health board) not to act in the face of an epidemic of this proportion," the city says in court papers. The National Association of Local Boards of Health and several public health scholars have backed the city's position in filings of their own.

Opponents portray the regulation as government nagging that turns sugary drinks into a scapegoat when many factors are at play in the nation's growing girth.

The American Beverage Association and other groups, including movie theater owners and Korean grocers, sued. They argue that the first-of-its-kind restriction should have gone before the elected City Council instead of being approved by the Bloomberg-appointed health board.

Five City Council members echo that view in a court filing, saying the Council is "the proper forum for balancing the city's myriad interests in matters of public health." The Bloomberg administration counters that the health board, made up of doctors and other health professionals, has the "specialized expertise" needed to make the call on limiting cola sizes.

The suit also argues the rule is too narrow to be fair. Alcohol, unsweetened juice and milk-based drinks are excluded, as are supermarkets and many convenience stores — including 7-Eleven, home of the Big Gulp — that aren't subject to city health regulations.

The NAACP and the Hispanic Federation, a network of 100 northeastern groups, say minority-owned delis and corner stores will end up at a disadvantage compared to grocery chains.

"This sweeping regulation will no doubt burden and disproportionally impact minority-owned businesses at a time when these businesses can least afford it," they said in court papers. They say the city should focus instead on increasing physical education in schools.

During Bloomberg's 11-year tenure, the city also has made chain restaurants post calorie counts on their menus and barred artificial trans fats in french fries and other restaurant food.

In general, state and local governments have considerable authority to enact laws intended to protect people's health and safety, but it remains to be seen how a court will view a portion-size restriction, said Neal Fortin, director, Institute for Food Laws and Regulations at Michigan State University.

___

Follow Jennifer Peltz at http://twitter.com/jennpeltz

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Stock index futures signal lower Wall Street open

LONDON (Reuters) - Stock futures pointed to a slightly lower open on Wall Street on Wednesday after gains in the previous session, with futures for the S&P 500, the Dow Jones and the Nasdaq 100 falling 0.1 to 0.2 percent.

A measure to extend the U.S. debt limit for nearly four months moved closer to a vote and the White House said the president would sign the bill if it cleared Congress, easing uncertainty that could have threatened the U.S. economy.

Focus will be on Apple results. Analysts on average estimate Apple's fiscal first-quarter earnings per share at $13.41, down slightly from $13.87 in the year-earlier quarter. Revenue is seen up 18 percent at $54.7 billion, according to Thomson Reuters I/B/E/S.

Other major companies announcing results include Well point , McDonald's and Abbott .

Revenue from Google Inc's core Internet business outpaced many analysts' expectations during the crucial holiday quarter and advertising rates fell less than in previous periods, pushing its shares up roughly 5 percent. Google shares in Frankfurt were up 4.7 percent on Wednesday.

IBM , the world's largest technology services company, gave a better than expected 2013 outlook after a solid fourth quarter that analysts say has more to do with Big Blue's smooth execution than a vibrant tech spending environment. IBM's shares in Frankfurt were 4 percent higher on Wednesday.

The Mortgage Bankers Association releases Weekly Mortgage Market Index for the week ended January 18 at 1200 GMT. The index read 836.5 and the refinancing index was 4,563.7 in the previous week.

JPMorgan Chase & Co Chief Executive Jamie Dimon apologized to shareholders for the $6 billion loss caused by the so-called "whale" trade, calling it a "terrible mistake," but said the bank has moved on and is still highly profitable.

British Prime Minister David Cameron said on Wednesday he would hold a referendum before the end of 2017 to decide whether Britain remains a member of the European Union, provided he wins the next election.

ICSC/Goldman Sachs release chain store sales for the week ended January 18 at 1245 GMT. In the previous week, sales fell 0.6 percent.

Redbook releases its index of department and chain store sales for January at 1355 GMT. In December, sales fell 0.3 percent.

At 1455 GMT, the Institute for Supply Management Chicago releases annual revisions to its index of manufacturing activity. In December, the index read 51.6.

European shares <.fteu3> were flat in early trading on Wednesday, with encouraging earnings reports from some companies underpinning the market.

Bank and commodity shares led the benchmark Standard & Poor's 500 Index to a fresh five-year closing high on Tuesday on hopes that the global economy continues to mend.

The Dow Jones industrial average <.dji> rose 62.51 points, or 0.46 percent, to 13,712.21 at the close on Tuesday. The S&P 500 <.spx> gained 6.58 points, or 0.44 percent, to 1,492.56. The Nasdaq Composite <.ixic> added 8.47 points or 0.27 percent, to 3,143.18.

(Reporting by Atul Prakash/editing by Chris Pizzey, London MPG Desk, +44 (0)207 542-4441)

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Cycling-No sympathy for Armstrong on social media

LONDON, Jan 21 (Reuters) – Lance Armstrong’s televised doping confession has done nothing to restore his shattered reputation, a study of responses posted to the Twitter social media site showed.

“What was particularly noticeable in our analysis of the Armstrong revelation was the sheer lack of sympathy out there,” said Charlie Dundas of sports market research company Repucom.

“The tone of the discussion around the Oprah Winfrey interview highlighted the level of disappointment and anger that exists. It’s clear the public are far from ready to forgive Lance Armstrong,” he added.

In the interview, Armstrong admitted to using performance-enhancing drugs on his way to his seven Tour de France titles. The Texan also said he hoped a lifetime ban would one day be lifted to allow him to compete in events like marathons.

The Armstrong interview generated 1.9 million Twitter posts between Jan. 14-20, Repucom said. America accounted for more than a quarter of these, with Australia the second most active nation on the site. (Writing by Keith Weir, editing by Mark Meadows)

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France’s National Library Hopes to Buy Sade’s ‘120 Days’

PARIS — “The 120 Days of Sodom,” by the Marquis de Sade, is one of the most perverse works of 18th-century literature.

It tells the story of four rich “libertines” who lock themselves in a remote medieval castle with 46 victims (including eight boys and eight girls, ages 12 to 15). The men are assisted by four female brothel keepers who arouse their hosts by recounting their outlandish (and embellished) experiences.

The work describes orgies and acts of abuse — sexual and otherwise — including pedophilia, necrophilia, incest, torture, rape, murder, infanticide, bestiality, violent anal and oral sex acts and the use of urination and defecation to humiliate and punish.

Sade called it “the most impure tale that has ever been told since our world began.”

There is nothing erotic about it.

Even Bruno Racine, director of the Bibliothèque Nationale de France, the National Library, calls it “depraved.”

But that hasn’t stopped him from negotiating long and hard to buy Sade’s manuscript. He has convinced the Foreign and Culture Ministries of its importance. He has argued in front of the Commission of National Treasures to declare it provisionally a “national treasure” that needs to be preserved in the library. And he is ready to pay more than $5 million to get it.

“The document is Sade’s most atrocious, extreme, radical work,” Mr. Racine said. “But we make no moral judgment about it.” A rambling, unfinished draft, “120 Days” has been praised and vilified. Simone de Beauvoir defended it as an important contribution to the dark side of humanity in her essay “Must We Burn Sade?”

The American feminist writer Andrea Dworkin branded it a “vile” story written by a woman-hating pornographer. In a 1975 film Pier Paolo Pasolini set the story in an imaginary Italian republic as a condemnation of Mussolini’s Fascist regime.

Sade wrote the draft in 37 days in 1785 in the Bastille, where he had been imprisoned under a royal order initiated against him by his mother-in-law. He wrote in tiny script on both sides of a sheaf of narrow paper, whose sheets he attached into a single 39-foot-long roll. Fearing that his work would be confiscated, he hid the roll in a crevice in a stone wall of his cell.

Days before the storming of the Bastille on July 14, 1789, Sade was transferred at night to a prison for the insane. He wrote that he “wept tears of blood” over the manuscript’s loss, and he went to his grave in 1814 without knowing its fate.

But it was recovered, sold, resold and then published for the first time by a German doctor in an error-filled version in 1904.

In 1929 Viscount Charles de Noailles, whose wife, Marie-Laure, was a direct descendant of Sade’s, bought the manuscript. The couple, wealthy and passionate patrons of the arts, handed it down to their daughter, Natalie, who kept it in a drawer at the family’s estate in Fontainebleau. She would sometimes unroll it and show it to guests; the Italian writer Italo Calvino was one of them.

“My mother showed me the manuscript when I was a boy,” Carlo Perrone, an Italian newspaper publisher who is Natalie de Noailles’s son, said in a telephone interview from Rome. “I remember the handwriting was so small, and that there were no corrections. It gave you the impression that paper was very scarce and precious for him, and that he had to fill up every space.”

Ms. de Noailles eventually entrusted both that manuscript and the manuscript of Stravinsky’s ballet “Les Noces” to a friend, the publisher Jean Grouet.

Mr. Grouet turned out to be a swindler. In 1982 he smuggled the Sade manuscript into Switzerland and sold it to Gérard Nordmann, a Swiss collector of erotica, for about $60,000.

Ms. de Noailles sued. After a long legal case, France’s highest court ruled in 1990 that the work had been stolen and must be returned. (The family was able to retrieve the Stravinsky manuscript, which had remained in France.)

Since Switzerland had not yet signed the Unesco convention requiring the restitution of stolen cultural objects, Ms. de Noailles was forced to sue again in that country. In 1998 the Swiss federal court ruled in Mr. Nordmann’s favor, saying that he had bought the manuscript in good faith.

Afterward, the manuscript was kept at a cultural foundation in Switzerland.

Then, last January, Mr. Nordmann’s heirs offered to sell the manuscript to a French collector. Mr. Perrone intervened.

“Anyone who wants to buy the manuscript in France needs my consent,” he said in the interview. “My mother had a very strong wish that one day the manuscript would be given to the Bibliothèque Nationale, which is my wish as well. It’s an important historical document, a piece of French history.”

Enter Mr. Racine. Since taking over as director of the Bibliothèque Nationale in 2007, he has sought to have important manuscripts classified as “national treasures” in order to acquire them for the library.

Among other purchases, he has bought Casanova’s memoirs with $9.6 million from an anonymous donor; the archives of the French philosopher Michel Foucault; and the archives of the French Marxist theorist, writer and filmmaker Guy Debord (preventing them from leaving the country and going to Yale).

“I don’t know of any director of a world-class library today who is making the kind of brilliant strategic acquisitions that Bruno Racine is making at the Bibliothèque Nationale,” said Paul Le Clerc, the former head of the New York Public Library and the director of Columbia University’s programs in Europe.

Now Mr. Racine is negotiating with Mr. Perrone and the heirs of Mr. Nordmann to buy the Sade manuscript and give each party a cut. The estimated sale price — more than $5 million — would be raised from private donors.

Mr. Racine’s goal is to put the manuscript on display, along with other Sade works in the library’s collection, for the 200th anniversary of Sade’s death next year.

“It is a unique, exceptional work, and a miracle that it survived,” he said. “It is part of our cultural heritage. Whether we like it or not, it belongs in the Bibliothèque Nationale.”

Emerik Derian contributed reporting.

This article has been revised to reflect the following correction:

Correction: January 22, 2013

An earlier version of this story misstated the offenses for which Marquis de Sade was imprisoned in 1785. He had been imprisoned under a royal order initiated against him by his mother-in-law, not for assaulting women and girls.

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Vera Wang Reveals Details of Michelle Kwan's Wedding Dress

By Cynthia Wang

01/21/2013 at 07:00 PM EST

Michelle Kwan and Clay Pell

Courtesy of Caitlin Maloney

Although she was a singles figure skater throughout her successful career, Michelle Kwan did have one steadfast partner on the ice – fashion designer Vera Wang.

"I wore so many skating dresses designed by her, whole skating shows and everything," Kwan, 32, tells PEOPLE. "I have a long relationship with her."

And that made picking a wedding dress designer a fairly easy decision.

For Kwan's Rhode Island nuptials on Jan. 19 to Clay Pell, 31, Wang put plenty of consideration into her creation.

"She is marrying someone whose family has a political history, and Michelle is living and working in Washington, D.C.," the designer says. "[The dress] had to have a certain dignity and a certain classicism, and I think it was a lot about a new way of looking at tradition."

So Wang created an ivory, strapless mermaid gown for Kwan, made with layers of silk organza and featuring lace appliqué.

"The fact that it's got an inordinate amount of handwork in terms of lace is really a tribute to the art of hand-piecing lace," Wang says. "There is a princess-slash-queenly level of sophistication and quiet without sacrificing a lot of detail."

To complement the formal wedding gown, Kwan asked Wang what she thought of designing a second dress for the reception. "She said, 'Yeah, I got it,' " Kwan says. "She said, 'First dance, yes, and then you've got to change into something else.' "

Her history with the skater was not lost on Wang. "I'm really very honored and very thrilled that a, Michelle has found the love of her life and b, that I am the one to dress her for that special day just as I did for world championships, national championships, and Olympics," she said. "It's just the ongoing saga of our friendship."

For more on Kwan's wedding, including photos and details from the ceremony, pick up a copy of next week's PEOPLE, on newsstands Friday

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Flu season fuels debate over paid sick time laws

NEW YORK (AP) — Sniffling, groggy and afraid she had caught the flu, Diana Zavala dragged herself in to work anyway for a day she felt she couldn't afford to miss.

A school speech therapist who works as an independent contractor, she doesn't have paid sick days. So the mother of two reported to work and hoped for the best — and was aching, shivering and coughing by the end of the day. She stayed home the next day, then loaded up on medicine and returned to work.

"It's a balancing act" between physical health and financial well-being, she said.

An unusually early and vigorous flu season is drawing attention to a cause that has scored victories but also hit roadblocks in recent years: mandatory paid sick leave for a third of civilian workers — more than 40 million people — who don't have it.

Supporters and opponents are particularly watching New York City, where lawmakers are weighing a sick leave proposal amid a competitive mayoral race.

Pointing to a flu outbreak that the governor has called a public health emergency, dozens of doctors, nurses, lawmakers and activists — some in surgical masks — rallied Friday on the City Hall steps to call for passage of the measure, which has awaited a City Council vote for nearly three years. Two likely mayoral contenders have also pressed the point.

The flu spike is making people more aware of the argument for sick pay, said Ellen Bravo, executive director of Family Values at Work, which promotes paid sick time initiatives around the country. "There's people who say, 'OK, I get it — you don't want your server coughing on your food,'" she said.

Advocates have cast paid sick time as both a workforce issue akin to parental leave and "living wage" laws, and a public health priority.

But to some business owners, paid sick leave is an impractical and unfair burden for small operations. Critics also say the timing is bad, given the choppy economy and the hardships inflicted by Superstorm Sandy.

Michael Sinensky, an owner of seven bars and restaurants around the city, was against the sick time proposal before Sandy. And after the storm shut down four of his restaurants for days or weeks, costing hundreds of thousands of dollars that his insurers have yet to pay, "we're in survival mode."

"We're at the point, right now, where we cannot afford additional social initiatives," said Sinensky, whose roughly 500 employees switch shifts if they can't work, an arrangement that some restaurateurs say benefits workers because paid sick time wouldn't include tips.

Employees without sick days are more likely to go to work with a contagious illness, send an ill child to school or day care and use hospital emergency rooms for care, according to a 2010 survey by the University of Chicago's National Opinion Research Center. A 2011 study in the American Journal of Public Health estimated that a lack of sick time helped spread 5 million cases of flu-like illness during the 2009 swine flu outbreak.

To be sure, many employees entitled to sick time go to work ill anyway, out of dedication or at least a desire to project it. But the work-through-it ethic is shifting somewhat amid growing awareness about spreading sickness.

"Right now, where companies' incentives lie is butting right up against this concern over people coming into the workplace, infecting others and bringing productivity of a whole company down," said John A. Challenger, CEO of employer consulting firm Challenger, Gray & Christmas.

Paid sick day requirements are often popular in polls, but only four places have them: San Francisco, Seattle, Washington, D.C., and the state of Connecticut. The specific provisions vary.

Milwaukee voters approved a sick time requirement in 2008, but the state Legislature passed a law blocking it. Philadelphia's mayor vetoed a sick leave measure in 2011; lawmakers have since instituted a sick time requirement for businesses with city contracts. Voters rejected a paid sick day measure in Denver in 2011.

In New York, City Councilwoman Gale Brewer's proposal would require up to five paid sick days a year at businesses with at least five employees. It wouldn't include independent contractors, such as Zavala, who supports the idea nonetheless.

The idea boasts such supporters as feminist Gloria Steinem and "Sex and the City" actress Cynthia Nixon, as well as a majority of City Council members and a coalition of unions, women's groups and public health advocates. But it also faces influential opponents, including business groups, Mayor Michael Bloomberg and City Council Speaker Christine Quinn, who has virtually complete control over what matters come to a vote.

Quinn, who is expected to run for mayor, said she considers paid sick leave a worthy goal but doesn't think it would be wise to implement it in a sluggish economy. Two of her likely opponents, Public Advocate Bill de Blasio and Comptroller John Liu, have reiterated calls for paid sick leave in light of the flu season.

While the debate plays out, Emilio Palaguachi is recovering from the flu and looking for a job. The father of four was abruptly fired without explanation earlier this month from his job at a deli after taking a day off to go to a doctor, he said. His former employer couldn't be reached by telephone.

"I needed work," Palaguachi said after Friday's City Hall rally, but "I needed to see the doctor because I'm sick."

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Associated Press writer Susan Haigh in Hartford, Conn., contributed to this report.

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Follow Jennifer Peltz at http://twitter.com/jennpeltz

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Stock index futures signal mixed open

PARIS (Reuters) - Stock index futures pointed to a mixed open on Wall Street on Tuesday after Monday's holiday. S&P 500 futures were up 0.1 percent, Dow Jones futures down 0.22 percent and Nasdaq 100 futures down 0.21 percent at 1035 GMT.

European shares fell in morning trade, with Germany's blue-chip DAX <.gdaxi> among the laggards, dragged down by large futures trades and led by Deutsche Bank shares. <.eu/>

Investors awaited a raft of company results on Tuesday from bellwethers such as CSX , DuPont , Google , IBM , Johnson & Johnson , Texas Instruments and Verizon .

Republican leaders in the House of Representatives said they aim to pass on Wednesday a nearly four-month extension of the U.S. debt limit allowing the government to borrow enough to meet its obligations during that period.

Boeing will be in focus again after U.S. and Japanese aviation safety officials investigating problems with the 787 Dreamliner visited the headquarters of the plane's battery maker on Monday.

Wal-Mart Stores Inc plans to cut ties immediately with suppliers who subcontract work to factories without the retailer's knowledge, changing its policy after a fire killed more than 100 garment workers in Bangladesh, the Wall Street Journal reported.

On the macro side, investors awaited existing home sales for December, due at 1500 GMT, while the Federal Reserve Bank of Richmond is set to release its January indexes on area manufacturing and service sectors, also at 1500 GMT.

The Dow and S&P 500 closed at five-year highs on Friday as the market registered a third straight week of gains on a solid start to the quarterly earnings season.

The Dow Jones industrial average <.dji> was up 53.68 points, or 0.39 percent, at 13,649.70. The Standard & Poor's 500 Index <.spx> was up 5.04 points, or 0.34 percent, at 1,485.98. The Nasdaq Composite Index <.ixic> was down 1.30 points, or 0.04 percent, at 3,134.71.

(Reporting by Blaise Robinson; Editing by Ruth Pitchford)

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