Record earnings for South Korean league

(Reuters) - South Korean baseball underlined its continuing growth by posting a record $33 million in revenue last year, local media reported on Wednesday.
Winning gold at the Beijing Olympics and finishing runners-up at the 2009 World Baseball Classic boosted baseball's popularity and attendances crossed the 7 million-mark for the first time last year, Yonhap News agency reported.
The league pocketed 35 billion won ($32.9 million) in 2012, bettering the 34 billion it earned a year earlier, the report said citing figures from the marketing wing of the Korea Baseball Organization (KBO).
The league received 25 billion won from its television broadcasting contract and 8 billion from corporate sponsorship, while 2 billion came from merchandise sales.
Each of the eight KBO clubs, having collectively drawn 7.15 million fans, took home 3.8 billion won after the league broke its attendance record for the fourth straight year.
The KBO will welcome a ninth club this year in what would be the league's first expansion since 1991 while another team could be included in 2015.
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UPDATE 2-Baseball-Bonds, Clemens denied; no players make Hall

* Bonds received 36.2 percent of the vote, Clemens 37.6
* First year since 1996 that no players elected to Hall
* Former Astro Biggio comes closest, falls 39 votes shy (Adds quotes and details)
Jan 9 (Reuters) - No one was elected to the Baseball Hall of Fame on Wednesday, with all-time home run leader Barry Bonds and seven-time Cy Young winner Roger Clemens snubbed over suspicion they used performance enhancing drugs.
Craig Biggio, who stroked 3,060 hits in a 20-year career with the Houston Astros, came closest to winning election, named on 68.2 percent of the 569 ballots to fall 39 votes shy of the 427 needed for election to the Cooperstown, New York, shrine.
Three more votes back was pitcher Jack Morris, who received 385 votes, followed by Jeff Bagwell at 339.
Bonds was named on 36.2 percent of the ballots, and Clemens 37.6, well short of the 75 percent needed for enshrinement in voting by the Baseball Writers' Association of America.
It marked the first year since 1996 that no player was elected into the Hall of Fame, in what was seen as a referendum on players that compiled outsized statistics during the so-called Steroids Era.
"I was a little shocked," Hall of Fame pitcher Ferguson Jenkins told MLB TV. "I thought probably Jack Morris or Craig Biggio would probably get the opportunity to be a Hall of Famer because they had such outstanding careers.
"But with the high profile situation of having too many other players under the microscope, the suspicion of taking performance enhancing drugs, I think it took away from their opportunity for getting votes."
Clemens and Bonds, appearing on the ballot for the first time after waiting five years following their retirement, would have been certain first-ballot winners but faced a backlash over links to what Major League Baseball's internal Mitchell Report of 2007 called widespread doping in the game.
Bonds has admitted to "unknowingly" using steroids, and been convicted of obstruction of justice in a federal case on PEDs. The longtime former trainer of Clemens has said the pitcher used steroids, though Clemens was found not guilty in a court case.
Hall of Fame voters pledge not only to look at a candidate's playing ability and performance but also to take into account "integrity, sportsmanship and character".
Mike Piazza, the all-time home run leader among catchers, was named on 329 ballots, 32 more than Tim Raines.
Former closer Lee Smith (272) and starting pitcher Curt Schilling (221) also finished above Clemens and Bonds in the voting, who stood eighth and ninth, respectively.
"It certainly is a start-studded ballot with a number of guys who set remarkable records," Hall of Fame president Jeff Idelson said before announcing the results.
"Then you put in what voters have gone through and the consternation they've had in trying to decide who to pick and it's made it one of the most talked about classes in history."
They will all return to the ballot next year, which will also feature strong first-time candidates in pitchers Greg Maddux, Tom Glavine and slugger Frank Thomas.
Players can remain on the ballot for as long as 15 years, and six players from the 1996 vote eventually did win election into the Hall of Fame.
"Major League Baseball recognizes that election to the Hall of Fame is our game's most extraordinary individual honor," the commissioner's office said in a statement.
"While this year did not produce an electee, there are many worthy candidates who will merit consideration in the future."
There will still be an induction ceremony in Cooperstown on July 28.
Former New York Yankees owner Jacob Ruppert, who bought Babe Ruth from the Boston Red Sox, turn-of-the-20th-century umpire Hank O'Day and 19th-century catcher Deacon White, all deceased, were elected to the Hall last month by the Pre-Integration Committee and will be honored at the ceremony.
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Bonds, Clemens denied; no players make Hall

(Reuters) - No one was elected to the Baseball Hall of Fame on Wednesday, with all-time home run leader Barry Bonds and seven-time Cy Young winner Roger Clemens snubbed over suspicion they used performance enhancing drugs.
Craig Biggio, who stroked 3,060 hits in a 20-year career with the Houston Astros, came closest to winning election, named on 68.2 percent of the 569 ballots to fall 39 votes shy of the 427 needed for election to the Cooperstown, New York, shrine.
Three more votes back was pitcher Jack Morris, who received 385 votes, followed by Jeff Bagwell at 339.
Bonds was named on 36.2 percent of the ballots, and Clemens 37.6, well short of the 75 percent needed for enshrinement in voting by the Baseball Writers' Association of America.
It marked the first year since 1996 that no player was elected into the Hall of Fame, in what was seen as a referendum on players that compiled outsized statistics during the so-called Steroids Era.
"I was a little shocked," Hall of Fame pitcher Ferguson Jenkins told MLB TV. "I thought probably Jack Morris or Craig Biggio would probably get the opportunity to be a Hall of Famer because they had such outstanding careers.
"But with the high profile situation of having too many other players under the microscope, the suspicion of taking performance enhancing drugs, I think it took away from their opportunity for getting votes."
Clemens and Bonds, appearing on the ballot for the first time after waiting five years following their retirement, would have been certain first-ballot winners but faced a backlash over links to what Major League Baseball's internal Mitchell Report of 2007 called widespread doping in the game.
Bonds has admitted to "unknowingly" using steroids, and been convicted of obstruction of justice in a federal case on PEDs. The longtime former trainer of Clemens has said the pitcher used steroids, though Clemens was found not guilty in a court case.
Hall of Fame voters pledge not only to look at a candidate's playing ability and performance but also to take into account "integrity, sportsmanship and character".
Mike Piazza, the all-time home run leader among catchers, was named on 329 ballots, 32 more than Tim Raines.
Former closer Lee Smith (272) and starting pitcher Curt Schilling (221) also finished above Clemens and Bonds in the voting, who stood eighth and ninth, respectively.
"It certainly is a start-studded ballot with a number of guys who set remarkable records," Hall of Fame president Jeff Idelson said before announcing the results.
"Then you put in what voters have gone through and the consternation they've had in trying to decide who to pick and it's made it one of the most talked about classes in history."
They will all return to the ballot next year, which will also feature strong first-time candidates in pitchers Greg Maddux, Tom Glavine and slugger Frank Thomas.
Players can remain on the ballot for as long as 15 years, and six players from the 1996 vote eventually did win election into the Hall of Fame.
"Major League Baseball recognizes that election to the Hall of Fame is our game's most extraordinary individual honor," the commissioner's office said in a statement.
"While this year did not produce an electee, there are many worthy candidates who will merit consideration in the future."
There will still be an induction ceremony in Cooperstown on July 28.
Former New York Yankees owner Jacob Ruppert, who bought Babe Ruth from the Boston Red Sox, turn-of-the-20th-century umpire Hank O'Day and 19th-century catcher Deacon White, all deceased, were elected to the Hall last month by the Pre-Integration Committee and will be honored at the ceremony.
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Steroids fallout: No BB Hall for Bonds, Clemens

NEW YORK (AP) — No one was elected to the Hall of Fame this year. When voters closed the doors to Barry Bonds, Roger Clemens and Sammy Sosa, they also shut out everybody else.
For only the second time in four decades, baseball writers failed to give any player the 75 percent required for induction to Cooperstown, sending a powerful signal that stars of the Steroids Era will be held to a different standard.
All the awards and accomplishments collected over long careers by Bonds, Clemens and Sosa could not offset suspicions those feats were boosted by performance-enhancing drugs.
Voters also denied entry Wednesday to fellow newcomers Craig Biggio, Mike Piazza and Curt Schilling, along with holdovers Jack Morris, Jeff Bagwell and Lee Smith.
Among the most honored players of their generation, these standouts won't find their images among the 300 bronze plaques on the oak walls in Cooperstown, where — at least for now — the doors appear to be bolted shut on anyone tainted by PEDs.
"After what has been written and said over the last few years I'm not overly surprised," Clemens said in a statement he posted on Twitter.
Bonds, Clemens and Sosa retired after the 2007 season. They were eligible for the Hall for the first time and have up to 14 more years on the writers' ballot.
"Curt Schilling made a good point, everyone was guilty. Either you used PEDs, or you did nothing to stop their use," Hall of Famer Mike Schmidt said in an email to The Associated Press after this year's vote was announced. "This generation got rich. Seems there was a price to pay."
Biggio, 20th on the career list with 3,060 hits, appeared on 68.2 percent of the 569 ballots, the highest total but 39 votes shy. The three newcomers with the highest profiles failed to come close to even majority support, with Clemens at 37.6 percent, Bonds at 36.2 and Sosa at 12.5.
Other top vote-getters were Morris (67.7), Jeff Bagwell (59.6), Piazza (57.8), Tim Raines (52.2), Lee Smith (47.8) and Schilling (38.8).
"I'm kind of glad that nobody got in this year," Hall of Famer Al Kaline said. "I feel honored to be in the Hall of Fame. And I would've felt a little uneasy sitting up there on the stage, listening to some of these new guys talk about how great they were. ... I don't know how great some of these players up for election would've been without drugs. But to me, it's cheating."
At ceremonies in Cooperstown on July 28, the only inductees will be three men who died more than 70 years ago: Yankees owner Jacob Ruppert, umpire Hank O'Day and barehanded catcher Deacon White. They were chosen last month by the 16-member panel considering individuals from the era before integration in 1947.
"It is a dark day," said Jose Canseco, the former AL MVP who was among the first players to admit using steroids. "I think the players should organize some type of lawsuit against major league baseball or the writers. It's ridiculous. Most of these players really have no evidence against them. They've never tested positive or they've cleared themselves like Roger Clemens."
It was the eighth time the BBWAA failed to elect any players. There were four fewer votes than last year and five members submitted blank ballots.
"With 53 percent you can get to the White House, but you can't get to Cooperstown," BBWAA secretary-treasurer Jack O'Connell said. "It's the 75 percent that makes it difficult."
There have been calls for the voting to be taken away from the writers and be given to a more diverse electorate that would include players and broadcasters. The Hall says it is content with the process, which began in 1936.
"It takes time for history to sort itself out, and I'm not surprised we had a shutout today," Hall President Jeff Idelson said. "I wish we had an electee. I will say that, but I'm not surprised given how volatile this era has been in terms of assessing the qualities and the quantities of the statistics and the impact on the game these players have had."
Bonds, baseball's only seven-time Most Valuable Player, hit 762 home runs, including a record 73 in 2001. He was indicted on charges he lied to a grand jury in 2003 when he denied using PEDs but a jury two years ago failed to reach a verdict on three counts he made false statements and convicted him on one obstruction of justice count, finding he gave an evasive answer.
"It is unimaginable that the best player to ever play the game would not be a unanimous first-ballot selection," said Jeff Borris of the Beverly Hills Sports Council, Bonds' longtime agent.
Clemens, the only seven-time Cy Young Award winner, is third in career strikeouts (4,672) and ninth in wins (354). He was acquitted last year on one count of obstruction of Congress, three counts of making false statements to Congress and two counts of perjury, all stemming from his denials of drug use.
"To those who did take the time to look at the facts," Clemens said, "we very much appreciate it."
Sosa, eighth with 609 home runs, was among those who tested positive in MLB's 2003 anonymous survey, The New York Times reported in 2009. He told a congressional committee in 2005 that he never took illegal performance-enhancing drugs.
Since 1961, the only years the writers didn't elect a candidate had been when Yogi Berra topped the 1971 vote by appearing on 67 percent of the ballots cast and when Phil Niekro headed the 1996 ballot at 68 percent — both got in the following years. The other BBWAA elections without a winner were in 1945, 1946, 1950, 1958 and 1960.
Morris will make his final ballot appearance next year, when fellow pitchers Greg Maddux and Tom Glavine are eligible for the first time along with slugger Frank Thomas.
"Next year, I think you'll have a rather large class, and this year, for whatever reasons, you had a couple of guys come really close," Commissioner Bud Selig said at the owners' meetings in Paradise Valley, Ariz. "This is not to be voted to make sure that somebody gets in every year. It's to be voted on to make sure that they're deserving. I respect the writers as well as the Hall itself. This idea that this somehow diminishes the Hall or baseball is just ridiculous in my opinion."
Players' union head Michael Weiner called the vote "unfortunate, if not sad."
"To ignore the historic accomplishments of Barry Bonds and Roger Clemens, for example, is hard to justify. Moreover, to penalize players exonerated in legal proceedings — and others never even implicated — is simply unfair. The Hall of Fame is supposed to be for the best players to have ever played the game. Several such players were denied access to the Hall today. Hopefully this will be rectified by future voting."
The BBWAA election rules say "voting shall be based upon the player's record, playing ability, integrity, sportsmanship, character, and contributions to the team(s) on which the player played."
An Associated Press survey of 112 eligible voters conducted in late November after the ballot was announced indicated Bonds, Clemens and Sosa would fall well short of 50 percent. The big three drew even less support than that as the debate raged over who was Hall worthy.
Voters are writers who have been members of the BBWAA for 10 consecutive years at any point.
BBWAA president Susan Slusser of the San Francisco Chronicle said she didn't vote for Bonds, Clemens or Sosa.
"The evidence for steroid use is too strong," she said.
As for Biggio, "I'm surprised he didn't get in."
Mark McGwire, 10th on the career home run list with 583, received 16.9 percent on his seventh try, down from 19.5 last year. He got 23.7 percent in 2010 — a vote before he admitted using steroids and human growth hormone.
Rafael Palmeiro, among just four players with 500 homers and 3,000 hits along with Hank Aaron, Willie Mays and Eddie Murray, received 8.8 percent in his third try, down from 12.6 percent last year. Palmeiro received a 10-day suspension in 2005 for a positive test for performance-enhancing drugs, claiming it was due to a vitamin vial given to him by teammate Miguel Tejada.
MLB.com's Hal Bodley, the former baseball columnist for USA Today, said Biggio and others paid the price for other players using PEDs.
"They got caught in the undertow of the steroids thing," he said.
Bodley said this BBWAA vote was a "loud and clear" message on the steroids issue. He said he couldn't envision himself voting for stars linked to drugs.
"We've a forgiving society, I know that," he said. "But I have too great a passion for the sport."
NOTES: There were four write-in votes for career hits leader Pete Rose, who never appeared on the ballot because of his lifetime ban that followed an investigation of his gambling while manager of the Cincinnati Reds. ... Two-time NL MVP Dale Murphy received 18.6 percent in his 15th and final appearance. ... At the July 28 ceremonies, the Hall also will honor Lou Gehrig and Rogers Hornsby among a dozen players who never received formal inductions because of restrictions during World War II. ... Piazza has a book due out next month that could change the view of voters before the next election.
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Venezuela's VP in Havana to see Chavez, family

CARACAS, Venezuela (AP) — Venezuela's vice president flew to Cuba on Friday to visit the ailing Hugo Chavez and his family, while the leaders of Argentina and Peru also traveled to Havana saying they hoped to ask about the Venezuelan president's condition.
The 58-year-old president is fighting a severe respiratory infection a month after he underwent cancer surgery in Havana, his government says.
"I'm leaving for Havana to continue that work of visiting the family, meeting with his medical team, visiting our commander president," Vice President Nicolas Maduro said on television in Caracas.
Cuba's nightly TV news show reported that Maduro had arrived, but did not say whether he made any comments. The Venezuelan was met at the airport by Cuban Foreign Minister Bruno Rodriguez, the show said.
Chavez hasn't spoken publicly or been seen since before his Dec. 11 operation, his fourth cancer-related surgery since June 2011 for an undisclosed type of pelvic cancer.
The government revealed this week that Chavez is receiving treatment for "respiratory deficiency." Medical experts say that might mean he is breathing with the help of a ventilator.
Maduro was making his second trip to Cuba since Chavez's surgery. He said he would meet with Argentine President Cristina Fernandez, who also was visiting Havana, and hoped to meet with Peruvian President Ollanta Humala, who arrived Friday in the Cuban capital.
Fernandez arrived at the Hotel Nacional along Havana's waterfront on Friday morning. Authorities have characterized the Argentine leader's trip as a private visit and her foreign minister said Thursday that she intended to meet with Chavez.
She told The Associated Press in Friday afternoon that she would lunch with Cuban President Raul Castro and his retired brother Fidel. "And then surely I will meet with the family of my companion and dear friend Hugo Chavez," Fernandez said.
Arriving at the Havana airport, Humala did not say if had confirmed plans to meet with Chavez.
"Obviously I will ask, I will see, how is President Chavez's situation," Humala told reporters, saying he wishes Chavez a "quick recovery."
Presidents Rafael Correa of Ecuador and Evo Morales of Bolivia have also visited Havana during Chavez's current stay there.
Peruvian analyst Nelson Manrique said Humala's trip was a reflection of the president's personal friendship with Chavez, as well as political.
"There is a sector that would like Peru to be unconditionally aligned with the United States, but this is more prudent politically to develop a multilateral policy," Manrique said. "It doesn't seem probable that Hugo Chavez will continue governing, but in any of the scenarios 'Chavismo' will be a very strong force in Venezuela.
"It's convenient for the Peruvian government to maintain a relationship, leave the door open, and balance the geopolitical relationship with Venezuela as well," the analyst added.
Maduro was designated by Chavez last month as his chosen successor. Maduro said that while he is in Cuba, Electricity Minister Hector Navarro will remain in charge of affairs as acting vice president. The vice president didn't say when he would return.
Maduro's announcement came a day after the government gathered foreign allies and tens of thousands of exuberant supporters to celebrate the start of a new term for Chavez on Thursday, even as he was too ill to return home for a real inauguration.
Despite opposition claims that the constitution demands a Jan. 10 inauguration, the pro-Chavez congress approved delaying the inauguration and the Supreme Court on Wednesday endorsed the postponement, saying the president could be sworn in before the court at a later date.
Jailed former defense minister Raul Baduel urged his countrymen, especially the military, to resist what he called a "new constitutional coup" by Chavez's allies. The former military chief, who is in prison after being convicted of embezzlement and abuse of power, made the remarks in a vaguely worded letter that was released Friday.
Baduel has insisted he is innocent and dismissed the case against him as a politically motivated reprisal for his opposition to Chavez.
Though he didn't give details about what action he hoped the military would take, Baduel appeared to echo the argument by opposition politicians that Maduro and other Chavez allies are violating the constitution by remaining in office beyond the formal swearing-in date.
The Supreme Court has dismissed that argument, saying the date in the constitution isn't binding if an inauguration is performed before the court rather than the congress, where presidents usually take the oath of office.
Baduel also urged the governments of other countries "not to validate the constitutional coup d'etat that has been set in motion."
A high-ranking military chief, Maj. Gen. Wilmer Barrientos, said the military will respect and obey the Supreme Court's decision. He told the station Union Radio that those who question the court's decision should make their case through legal channels.
National Assembly President Diosdado Cabello, a former military officer who is thought to have close ties to the armed forces, warned in a message on Twitter that Chavez's supporters should be "on alert for actions of violence" similar to bloodshed that preceded a failed 2002 coup against Chavez.
Chavez was briefly ousted in that coup, then was restored to power within two days with the help of military loyalists amid large protests in the streets by his supporters.
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Haiti plans subdued memorial 3 years after quake

PORT-AU-PRINCE, Haiti (AP) — The Haitian government plans a low-key ceremony Saturday for the third anniversary of the earthquake that devastated the country and killed hundreds of thousands of people.
President Michel Martelly will preside over a subdued memorial on the grounds of the former National Palace, which was destroyed in the disaster and later demolished. Senior government officials and diplomats are expected to attend.
Martelly said he hopes the poor Caribbean nation's people use the anniversary of the Jan. 12, 2010, disaster to think about how they can improve their lives.
"The main thing for me is to use this day to plunge Haitians into deep reflection," Martelly said Friday. "I need tomorrow to bring my country, my people enough reflection where they decide to do things in other ways."
Martelly is to give a speech Saturday morning and then go to a mass grave north of the capital to lay a wreath. Former U.S. President Bill Clinton, the U.N. special envoy to Haiti, will also visit the burial site.
The United Nations plans a small private memorial. Last year, the U.N. held a service to remember its 102 employees who died — the biggest loss of life of U.N. personnel in a single disaster.
Haiti's government says the quake killed about 316,000 people. An additional 1.5 million people landed in impromptu settlements around the capital and other cities in the south.
People have moved out of the more visible camps in public plazas but there are still more than 350,000 people living in the camps, according to the International Organization of Migration, a humanitarian group that helps people displaced by disaster and conflict.
The reconstruction effort has been slow to take hold because of political paralysis, the level of devastation and a trickle of aid. Only slightly more than half of the $5.3 billion pledged by donors has been released, according to the U.N. Office of the Special Envoy for Haiti.
The government said that this year Jan. 12 will not be a holiday marking the earthquake as in the last two years. But it said in a statement it has asked that the Haitian flag be flown at half-mast and that nightclubs be closed.
Officials last year noted the occasion with back-to-back news conferences and meetings with Clinton in attendance and foreign aid groups touting their accomplishments.
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Rights groups condemn crackdown on TV channel

CARACAS, Venezuela (AP) — Rights groups are condemning an order by Venezuela's broadcast agency for a television channel to stop showing clips that question the legality of postponing President Hugo Chavez's inauguration.
The organizations Human Rights Watch and Reporters Without Borders are criticizing the government's actions against the country's only staunchly anti-Chavez channel, Globovision.
U.S.-based Human Rights Watch said on Saturday that the Venezuelan government is attempting to censor critical discussions and intimidate its critics.
Globovision had been showing clips in which it replayed remarks by Chavez and Vice President Nicolas Maduro. In them, the channel questioned the constitutionality of putting off the ailing president's inauguration for a new term while he remains in Cuba more than a month after undergoing cancer surgery.
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Rights groups condemn crackdown on Venezuela TV

CARACAS, Venezuela (AP) — Rights groups are condemning an order by Venezuela's broadcast agency for a television channel to stop showing clips that question the legality of postponing President Hugo Chavez's inauguration.
The organizations Human Rights Watch and Reporters Without Borders criticized the government's actions against the country's only staunchly anti-Chavez channel, Globovision.
U.S.-based Human Rights Watch said in a statement on Saturday that the Venezuelan government is attempting to censor critical public discussions and intimidate its critics.
Globovision had been showing clips in which it replayed remarks by Chavez, Vice President Nicolas Maduro, and Venezuela's attorney general.
In them, the channel questioned the constitutionality of putting off the ailing president's scheduled Jan. 10 inauguration for a new term while he remains in Cuba more than a month after undergoing cancer surgery. The opposition had also opposed such a delay, but the Supreme Court ruled that Chavez can be sworn in later on.
The National Telecommunications Council on Wednesday opened an investigation aimed at imposing sanctions against Globovision. Pedro Maldonado, the agency's director, said that the channel had manipulated information and that it's illegal for TV stations to show programming that "generates anxiety in the citizenry or disturbs public order."
It's the eighth such investigation that the regulatory agency has opened against Globovision in recent years. Maldonado said the news channel could face sanctions including being shut down for 72 hours or being fined up to 10 percent of its annual gross income.
Reporters Without Borders called the measures against Globovision excessive.
"Is debate not allowed?" the organization said in a statement on Friday. "These proceedings are disproportionate and absurd."
Jose Miguel Vivanco, the Americas director for Human Rights Watch, said "there is nothing in the content of Globovision's broadcasts that could remotely be described as incitement or a threat to public order."
Venezuela's opposition has similarly called for the government to stop such measures against critical news media.
In June, Globovision paid a fine of more than $2 million imposed by regulators in another investigation.
Human Rights Watch also criticized a Jan. 6 raid by Venezuelan intelligence agents on the home of a blogger suspected of posting messages on Twitter questioning the information provided by the government about Chavez's condition.
The blogger, Federico Medina Ravell, is a cousin of Alberto Federico Ravell, a former news director of Globovision.
Isabel Grisanti, a lawyer who is a friend of Medina's family, said the agents came to the home in the city of Valencia with a court order to search the house in an investigation relating to weapons possession and alleged computer-related crimes.
Grisanti said she didn't know why the raid was carried out, but Venezuelan media have reported that the authorities were going after people posting Twitter messages about Chavez's condition, which the government describes as delicate while the president fights a severe respiratory infection.
Medina wasn't home at the time. The agents found no weapons in the home but did seize two computers, Grisanti said.
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Junior Seau had brain disease CTE

Junior Seau, one of the NFL's best and fiercest players for nearly two decades, had a degenerative brain disease when he committed suicide last May, the National Institutes of Health told The Associated Press on Thursday.
Results of an NIH study of Seau's brain revealed abnormalities consistent with chronic traumatic encephalopathy (CTE).
The NIH, based in Bethesda, Md., conducted a study of three unidentified brains, one of which was Seau's. It said the findings on Seau were similar to autopsies of people "with exposure to repetitive head injuries."
Seau's family requested the analysis of his brain, which was overseen by Dr. Russell Lonser.
Seau was a star linebacker for 20 NFL seasons with San Diego, Miami and New England before retiring in 2009. He died of a self-inflicted shotgun wound.
He joins a list of several dozen football players who had CTE. Boston University's center for study of the disease reported last month that 34 former pro players and nine who played only college football suffered from CTE.
"I was not surprised after learning a little about CTE that he had it," Seau's 23-year-old son Tyler said. "He did play so many years at that level. I was more just kind of angry I didn't do something more and have the awareness to help him more, and now it is too late.
"I don't think any of us were aware of the side effects that could be going on with head trauma until he passed away. We didn't know his behavior was from head trauma."
That behavior, according to Tyler Seau and Junior's ex-wife Gina, included wild mood swings, irrationality, forgetfulness, insomnia and depression.
"He emotionally detached himself and would kind of 'go away' for a little bit," Tyler Seau said. "And then the depression and things like that. It started to progressively get worse."
He hid it well in public, they said. But not when he was with family or close friends.
The NFL faces lawsuits by thousands of former players who say the league withheld information on the harmful effects concussions can have on their health.
Seau is not the first former NFL player who killed himself, then was found to have CTE. Dave Duerson and Ray Easterling are others.
Duerson, a former Chicago Bears defensive back, left a note asking for his brain to be studied for signs of trauma before shooting himself. His family filed a wrongful death suit against the NFL, claiming the league didn't do enough to prevent or treat the concussions that severely damaged his brain.
Easterling played safety for the Falcons in the 1970s. After his career, he suffered from dementia, depression and insomnia, according to his wife, Mary Ann. He committed suicide last April.
Mary Ann Easterling is among the plaintiffs who have sued the NFL.
"It was important to us to get to the bottom of this, the truth," Gina Seau said, "and now that it has been conclusively determined from every expert that he had obviously had it, CTE, we just hope it is taken more seriously.
"You can't deny it exists, and it is hard to deny there is a link between head trauma and CTE. There's such strong evidence correlating head trauma and collisions and CTE."
Tyler Seau played football through high school and for two years in college. He says he has no symptoms of any brain trauma.
Gina Seau's son, Jake, now a high school junior, played football for two seasons, but has switched to lacrosse and has been recruited to play at Duke.
"Lacrosse is really his sport and what he is passionate about," she said. "He is a good football player and probably could continue. But especially now watching what his dad went through, he says, 'Why would I risk lacrosse for football?'
"I didn't have to have a discussion with him after we saw what Junior went through."
Her 12-year-old son, Hunter, has shown no interest in playing football.
"That's fine with me," she said.
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Steelers cut RB Rainey after arrest in Florida

PITTSBURGH (AP) — Rookie running back Chris Rainey has run out of chances with the Pittsburgh Steelers.
The Steelers cut the troubled 24-year-old following his arrest on a battery charge in Gainesville, Fla., on Thursday, the latest in a series of off-the-field incidents that have threatened his career.
Gainesville police officers charged Rainey with a single count of misdemeanor simple battery after an altercation with his girlfriend. Police said in a news release the two were arguing over Rainey's cellphone. When his girlfriend got into a vehicle, the former Florida Gator tried to pull her out.
Witnesses told detectives that Rainey slapped his girlfriend across the face and then chased her when she ran away with his phone in her purse.
The Steelers, who selected Rainey in the fifth round of the 2012 NFL Draft, waived shortly after being made aware of his arrest.
"Chris Rainey's actions this morning were extremely disappointing," general manager Kevin Colbert said. "Under the circumstances and due to this conduct, Chris will no longer be a member of the Pittsburgh Steelers."
Rainey worked primarily on special teams during his rookie season. He averaged 26.5 yards on 39 kickoff returns. The Steelers used him occasionally as a change of pace in the backfield. Rainey finished with 102 yards rushing and two scores while also catching 14 passes for 60 yards.
Rainey's agent, Joel Segal, didn't return a phone call for comment.
Thursday's arrest wasn't Rainey's first brush with the law. He was arrested Sept. 14, 2010 and charged with aggravated stalking, a third-degree felony, for allegedly sending a former girlfriend a threatening text message that read, in part, "Time to die ...."
Rainey spent a night in jail and was dismissed from the team by coach Florida coach Urban Meyer the next day, after Meyer said Rainey violated the program's core value regarding violence against women. Rainey agreed to a plea deal two weeks later and eventually returned to the field.
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UPDATE 4-NFL's Junior Seau had brain disease from blows to head

(Adds statement from Seau family)
Jan 10 (Reuters) - Junior Seau, the 12-time Pro Bowl linebacker who killed himself last year, suffered from the same debilitating brain disease diagnosed in at least two other former NFL defensive players who also committed suicide, a study released on Thursday said.
Seau, 43, died in May after shooting himself in the chest at his beachfront house in his hometown of Oceanside, California. He played mostly for the San Diego Chargers and two other teams in a 20-year career in the National Football League.
A study of Seau's brain by a team of independent researchers found he suffered from chronic traumatic encephalopathy, or CTE, likely brought on by two decades of blows to the head as a football player, the report said.
Increased awareness and knowledge about brain injuries have unsettled the National Football League, a $9 billion a year industry that rose to popularity largely from the speed and power of its athletes colliding with one another. The league has attempted to institute rule changes protecting player safety while still preserving the spectacle that fans enjoy.
CTE can be diagnosed only after death. Tissue from Seau's brain was sent to the National Institutes of Health for analysis in July, at the request of Seau's family, amid growing concern over the long-term effects of football-related head injuries.
"The final diagnosis was findings consistent with chronic traumatic encephalopathy," Dr. Russell Lonser, the lead researcher on the case, told Reuters. Lonser is chairman of the Department of Neurological Surgery at Ohio State University and led the study of Seau's brain while he was at NIH.
Patients with CTE may display symptoms "such as impulsivity, forgetfulness, depression, (and) sometimes suicidal ideation," Lonser said in the report.
Five neuropathologists - two who work for the government and three who were independent and not informed they were examining Seau - came to a consensus on the diagnosis by studying the accumulation of a protein called tau in certain areas of the brain, Lonser said.
The distribution of tau discovered in Seau's brain "is unique to CTE and distinguishes it from other brain disorders," the NIH said in a statement about the study.
Several thousand former NFL players have sued the NFL in federal court in Philadelphia, accusing the league of fraudulently concealing from players the risk of brain injury in playing professional football.
The exchange of evidence was on hold pending the NFL's motion to dismiss the case.
"While the NIH's findings have provided a measure of comfort, we remain heartbroken that Junior is no longer with us, and are deeply saddened to receive confirmation that he suffered from such a debilitating condition," Seau's family said in a statement.
Just weeks before Seau shot himself, former Atlanta Falcons safety Ray Easterling committed suicide, and family members described a long descent into dementia following his retirement from the NFL. An autopsy revealed indications of CTE.
In February 2011, four-time Pro Bowl safety Dave Duerson, who played most of his career with the Chicago Bears, shot himself in the chest. In a suicide note, he donated his brain for study, and it was found to exhibit signs of CTE.
The NFL said the result of the examination of Seau's brain underscored "the recognized need for additional research to accelerate a fuller understanding of CTE." NFL clubs have already committed a $30 million research grant to the NIH.
CTE AN 'INVISIBLE INJURY'
CTE, once known as boxer's dementia, is caused by repeated impacts to the brain, and has been found in athletes who suffered head injuries as well as members of the armed forces with concussive injuries from blast waves.
Because the mild and moderate brain injuries do not show up on CT scans or other imaging, the condition can be definitively diagnosed only through an autopsy.
The so-called "invisible injury" causes dramatic behavioral and cognitive changes. It can cause depression, aggression, impulsivity and memory loss and has been linked to suicide.
Research led by scientists at Boston University and the Veterans Administration in 2012 showed, through microscopic analysis of the brains of military veterans and young athletes, exactly how repeated head injuries cause CTE and impair mental function.
The trauma strangles blood vessels, diminishing blood flow within the brain, the scientists reported last May. It also breaks components of brain neurons called axons. Axons carry signals between neurons, so when they are damaged, brain signals peter out and thinking is impaired. CTE litters the brain with the chewed-up remnants of neurons and other cells so extensively that the brain seems to be eating itself alive.
CTE also stretches neurons, scientists led by Boston University's Ann McKee found. That stretching damages them so severely that they resemble neurons in the brain of Alzheimer's patients and are no longer functional.
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Burned by supply chain issues, Apple may again look to Sharp for future iPhone, iPad displays

Apple (AAPL) is learning that good help can be hard to find. In its eagerness to shed its reliance on Samsung (005930) as a component supplier, Apple has had difficulty in finding another vendor capable of producing displays as efficiently as its partner-turned-rival traditionally has. This past summer, the company began moving away from Sharp (SCHAY) a bit when it tapped LG Display (LPL) and AU Optronics to produce panels for its iPad mini. But now that Apple has experienced supply chain problems with the iPad mini, it could decide to give Sharp a fresh look for future devices.
[More from BGR: With BlackBerry 10, there’s no place like home]
AppleInsider reports that Topeka Capital analyst Brian White, appearing at a Sharp media briefing at the Consumer Electronics Show, said that Apple was a “prime candidate” to adopt Sharp’s IGZO technology for displays, especially since Apple “increasingly requires new innovative display technologies to compete with Samsung.” Apple has been linked to Sharp’s IGZO panels in the past when rumors suggested that Apple would use them for its long-rumored “iTV.”
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Tablet sales expected to surpass notebooks in 2013

While some have pegged 2013 as the year of the phablet, the latest report from NPD DisplaySearch paints a different picture. The firm estimates that shipments of tablet PCs will surpass 240 million units worldwide in 2013, topping notebook PC shipments, which are expected to reach 207 million, for the first time ever.
[More from BGR: Corning demonstrates the strength of Gorilla Glass 3 [video]]
Apple (AAPL) has dominated the tablet market since its inception, however NPD predicts that smaller tablets will replace the 9.7-inch iPad as the tablet market leader in 2013. The firm estimates that tablets with a screen size between 7- and 8-inches will account for nearly half the market, or 45%, compared to an estimated 17% share from 9.7-inch slates.
[More from BGR: With BlackBerry 10, there’s no place like home]
NPD previously predicted that tablet shipments would top notebook shipments in 2016. The firm’s revised expectations echo an earlier report from Digitimes that estimated tablet shipments would grow to 210 million units.
These numbers make it clear that 2013 will be the year of the tablet.
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Samsung's big push for 2013: content, corporates

LAS VEGAS (Reuters) - Samsung Electronics, the global leader in consumer smartphones, is planning two major thrusts in 2013: bulking up mobile content and moving faster into the corporate market dominated by Research in Motion.
The South Korean electronics company is investing in devices that enterprise users like corporations will endorse, with a higher level of security and reliability than general users need. In doing so, Samsung is capitalizing on doubts about the longevity of the BlackBerry as its Canadian maker struggles to revive growth.
Samsung's corporate market ambitions have advanced as the Galaxy SIII, its popular flagship smartphone, won the requisite security certifications from companies, said Kevin Packingham, chief product officer for Samsung Mobile USA.
As RIM prepares to launch its next-generation BlackBerry 10 this quarter, the company's future remains shaky. Corporate technology officers have begun to explore other smartphones, such as those by Apple Inc or Samsung.
"The enterprise space has suddenly become wide open. The RIM problems certainly fueled a lot of what the CIOs are going through, which is they want to get away from a lot of the proprietary solutions," Packingham said in an interview at the Consumer Electronics Show in Las Vegas. "They want something that integrates what they are doing with their IT systems. Samsung is investing in that area."
"It's been a focus for a long time but the products have evolved now that we can really take advantage of that," he added. "We knew we had to build more tech devices to successfully enter the enterprise market. What really turned that needle was that we had the power of the GS3."
Samsung in 2012 overtook Apple as the world's largest maker of smartphones, with a vastly larger selection of cellphones that attacked different price points and proved popular in emerging markets.
German business software maker SAP provides employees with Samsung's Galaxy S III, the larger Galaxy Note and the Galaxy Tab, SAP Chief Information Officer Oliver Bussmann said in an interview.
"The one clear trend in enterprise is the shift away from one device to multiple devices," said Bussman, who makes 10 devices available to SAP employees for official use. The list includes Apple's iPhone and iPad, Nokia Lumia and RIM's Blackberry.
"Because of the fragmentation of the Android software, we decided to go with just one Android company and we went with Samsung," he added.
Now, the Korean hardware specialist is beefing up its software - an area in which it has lagged arch-enemy Apple, which revolutionized the mobile phone from 2007 with its content-rich, developer-led iPhone ecosystem.
Packingham sees an area ripe for innovation - combining the mobile phone with Samsung's strength, the TV, which has barely evolved in the past decade.
Still, the U.S.-based executive remained cagey about Samsung's plans for content and enterprise.
"You are going to see from content services, we'll start to integrate what's happening on the big screen, what's happening on the tablet," he said.
"We know now that people like to explore content that they are watching on TV while they have a tablet in their lap, and that's going to be a big theme for this year.
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China's insurance regulator to reject $9.4 billion HSBC deal - reports

HONG KONG (Reuters) - China's insurance regulator is expected to reject HSBC's sale of its $9.4 billion (5.8 billion pounds) stake in Ping An Insurance to Thai conglomerate CP Group, media reports said on Wednesday.
The failure of the deal would be a blow to HSBC and an embarrassment to the various parties involved in a corporate deal that was set to be Asia's second-largest last year.
The China Insurance Regulatory Commission (CIRC) is likely to veto the deal due to a lack of funding, the South China Morning Post and The Wall Street Journal both said on Wednesday.
Reuters on Tuesday said that the deal was in jeopardy after state-backed China Development Bank had expressed concerns over its financing. According to the story, CDB's reluctance emerged after media reports late in December that said CP Group's payment for the deal came from outside sources.
A $1.9 billion payment by CP subsidiaries was made on December 7 as a first instalment for the deal, with the shares then transferred to CP Group, according to HSBC. Payment for the remaining amount was due after regulatory approval, which had a deadline of February 1.
CDB originally agreed to back the remaining purchase, though HSBC did not disclose the size of the loan. CDB withdrawing from the process would be a major setback for the sale, but would not necessarily kill the agreement if another funding source could be found before that deadline.
A CIRC rejection, however, would stop the second instalment and effectively end the deal.
A CIRC official told Reuters on Wednesday that there is no final outcome yet on a decision.
A spokesman for Ping An said the sale was moving ahead with normal approval procedures, while HSBC declined to comment.
Doubts over the deal's closing surfaced after the respected Chinese magazine Caixin Century Weekly reported late last month that CP Group received funding for the first payment from outside sources, naming Chinese businessman Xiao Jianhua as being among the backers.
CP Group said in a statement in December after the Caixin report that the acquisition of the Ping An shares had been legally conducted by four wholly-owned subsidiaries using "legal capital from the Charoen Pokphand Group and its subsidiaries."
A representative at a law firm representing Xiao referred Reuters to a previous statement from him denying any involvement in the CP-HSBC deal.
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Short-sellers circle stocks as confidence wavers

LONDON (Reuters) - How durable is the Wall Street bounce following last week's U.S. budget deal? Not very, some speculators believe.
Hedge funds are betting that a rally in U.S. stocks after a retreat from the "fiscal cliff" will reverse as doubts grow that politicians are ready to sacrifice party interests to keep the world's economic engine running, early data shows.
On the cusp of a January 1 deadline, Republicans and Democrats agreed a moratorium on a package of tax hikes and budget cuts critics claimed would tip the United States back into recession.
The news triggered sharp gains in the S&P 500 index <.spx>, which rose 2.5 percent to 1,462 points on January 2. But the momentum is fading, leading some funds and analysts to predict a tough near-term outlook for U.S. equities.
"The recent rally is an opportunity to open promising short positions. Taxes are going up in some shape and form and spending will have to be reduced," said Athanasios Ladopoulos, chief investment officer of hedge fund firm Swiss Investment Managers. "Both feed into negative sentiment down the road."
Data measuring demand to borrow U.S. shares - a proxy for the level of short-selling, or bets on a share price fall - reflects expectations that markets will falter when the next bout of negotiations collides with talks to extend a $16.4 trillion national debt ceiling in February.
According to Sungard Astec Analytics, the aggregate value of U.S. shares on loan rose by 3 percent to $358 billion in the week to January 4, as skeptical funds bet on falls in consumer confidence and company earnings.
That compares with a peak of $404 billion, seen in June when the Federal Reserve rowed back on employment predictions and cut 2012 economic growth forecasts to 2.4 percent from 2.9 percent.
By contrast, the aggregated value of shares in the FTSE 100 <.ftse> on loan fell 4 percent to $1.4 billion in the week to January 4, while the equivalent for the STOXX Europe 600 <.stoxx> dropped 3 percent to $6.6 billion.
Because such bets are struck privately, it's tough to pinpoint exactly when shares are expected to fall. Some bets may be pegged to the impending corporate earnings season, while others will be timed to exploit February's looming fiscal cliff worries.
SHORT, SHARP SHOCK
But even top stock market performers are seen suffering share price volatility until a compromise on cuts and taxes is reached.
Short-sellers are speculators who borrow shares then sell them in the hope of being able to buy them back at a cheaper price, before returning the stock to the original owner.
"While we are positive on U.S. equities for the year, the possibility of a short, sharp contraction on news flow is material in our view," equity strategists at BNP Paribas warned in a note, arguing equity valuations looked over-optimistic.
"The trailing price-to-earnings ratio of 15 times is above long-term averages and earnings growth has slowed to a crawl at best, compared with a consensus forecast for 10 percent," the note said.
Stock lenders - typically long-term investors such as pension funds who can earn a fee by loaning out a stock at little risk to themselves - have also spotted an increased appetite to bet on falling stock prices and have raised the cost to borrow shares by 5 basis points (bps) to about 75 bps on aggregate over the first week of 2013, Astec data shows.
This brings borrowing rates closer to the 78 bps average earned on U.S. equity lending in 2012.
"There is much unfinished business ... not to mention the much bigger question about how the U.S. can meet its long term spending commitments in the face of an ageing population," Ian Kernohan, economist at Royal London Asset Management said.
"Given the polarized nature of U.S. politics at the moment, trying to sort all this out will be an uphill task."
The S&P 500, which rose 13.4 percent in 2012, closed 0.3 percent down at 1,457 on Tuesday. Some commentators say much of the recent growth in U.S. stocks is not due to an influx of optimistic buyers, but short-sellers closing out old bets from 2012 before embarking on a fresh set of short positions.
NOT MAINSTREAM
Heavily-shorted firms like $3.7 billion-valued U.S. Steel Corp and $1.9 billion Advanced Micro Devices saw volumes of stock on loan drop by 15.1 percent to 17.5 percent and 18.6 percent to 14.6 percent respectively in the past month.
This data from financial information firm Markit supports the argument that bears, not bulls, are perversely largely responsible for driving the recent upward move in U.S. stocks.
Certainly a negative view is not mainstream for the year as a whole.
The consensus forecast from respondents to a Reuters poll in December was for the S&P 500 to finish 2013 close to its lifetime high of 1,576.09 set in October 2007.
But signs of fresh short-selling coupled with Friday's underwhelming December jobs data is putting pressure on market optimists.
Speaking at an investment forum hosted by asset manager Notz Stucki on Tuesday, Anatole Kaletsky, a financial economist and Reuters columnist, said cyclical factors such as weak housing markets have been major headwinds but there was evidence these have been neutralised.
But it may take time for this view to be adopted by many consumers. A Reuters/IPSOS online poll of U.S. consumers on Monday found four-fifths of respondents were bracing for another economic downturn.
Additional data from Markit showed sharp increases in demand to short a range of U.S. stocks who stand to lose from a dip in consumer sentiment.
But the list of the 30 most heavily-shorted U.S. names in the week to January 4 spans most sectors including pharmaceuticals, machinery and aerospace & defence, indicating broader pessimism in the market as well as cyclical or stock-specific concerns.
The volume of bets on a fall in the share price of $7.75 billion Tiffany & Co for instance shot up 17 percent last week to 6.4 percent, more than double the 3 percent average short interest on individual S&P stocks.
Demand to short leisure dot-com TripAdvisor Inc was up 11.6 percent to 5.2 percent and Dr Pepper Snapple Group Inc saw stock volumes on loan jump 15.1 percent to 7.8 percent.
"I am of the opinion that when Q4 earnings season starts investors will come to realise that the prospects for 2013 are not that bright," Ladopoulos said. "When the market turns down, it will take with it many of those too optimistic investors."
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FTSE 100 hits highest level since May 2008

LONDON, Jan 9 (Reuters) - Britain's blue-chip share index
hit its highest point since May 2008 on Wednesday, resuming its
January rally after a two-day pause, led up by the banking
sector.
At 1505 GMT, the FTSE 100 was up 58.38 points, or 1
percent, at 6,112.01, breaking through the 2011 high of
6,105.77. Lloyds Banking Group led banking sector
gainers after being upgraded by UBS.
A positive open on Wall Street had helped the FTSE extend
its early gains, while exporters also received a boost earlier
in the session after sterling fell to a one-month low against
the dollar.
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NFL-Jets sack offensive coordinator Sparano after losing season

Jan 8 (Reuters) - The New York Jets have fired offensive coordinator Tony Sparano, the National Football League team said on Tuesday in the latest shakeup to the franchise's coaching staff after a disappointing season.
Sparano, who was head coach of the Miami Dolphins from 2008 to 2011, spent just one season in charge of a Jets offense that ranked 30th in the league in total offense.
"At the end of the day, I wanted to move this team in a different direction offensively," head coach Rex Ryan told reporters at a news conference.
The Jets' (6-10) season was plagued by a quarterbacking controversy between ineffective incumbent Mark Sanchez and the hugely popular but unorthodox passer Tim Tebow.
A decision has yet been made on whether either quarterback will remain with the Jets.
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Jets sack offensive coordinator Sparano after losing season

(Reuters) - The New York Jets have fired offensive coordinator Tony Sparano, the National Football League team said on Tuesday in the latest shakeup to the franchise's coaching staff after a disappointing season.
Sparano, who was head coach of the Miami Dolphins from 2008 to 2011, spent just one season in charge of a Jets offense that ranked 30th in the league in total offense.
"At the end of the day, I wanted to move this team in a different direction offensively," head coach Rex0 Ryan told reporters at a news conference.
The Jets' (6-10) season was plagued by a quarterbacking controversy between ineffective incumbent Mark Sanchez and the hugely popular but unorthodox passer Tim Tebow.
A decision has yet been made on whether either quarterback will remain with the Jets.
The decision to release Sparano comes one day after the team parted ways with quarterbacks coach Matt Cavanaugh and a week after General Manager Mike Tannenbaum was fired.
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AP Source: Browns interviewing CFL's Trestman

CLEVELAND (AP) — A person familiar with the interview says the Browns are meeting with Montreal Alouettes coach Marc Trestman.
Trestman interviewed with the Chicago Bears on Monday night and arrived at the Browns' facility in suburban Berea on Tuesday, said the person who spoke to the Associated Press on the condition of anonymity because of the sensitivity of the search. Trestman is the fifth known candidate to interview with the Browns, who fired Pat Shurmur last week after two seasons.
Trestman was Cleveland's offensive coordinator in 1989. He has extensive background as an NFL assistant and has spent five seasons with Montreal, leading the Alouettes to two Grey Cup titles. The 56-year-old is under contract through 2016, but the club will allow him to leave for an NFL job if he's offered.
The Browns are not commenting on any of their interviews or candidates.
If the team was even thinking about contacting Nick Saban about their vacancy, Alabama's coach made it clear the NFL is in his past — not his future.
With their search in its second week, the Browns may have considered calling Saban, who coached the Miami Dolphins for two years before taking over the Crimson Tide's program. Fresh off winning his third national title in four years, the 61-year-old Saban reiterated that he's content at Alabama and outlined several reasons why he prefers to coach in college.
He said coaching in the NFL taught him that college "is where I belong, and I'm really happy and at peace with all that."
Saban worked as an assistant in Cleveland under Bill Belichick, and there has long been speculation he might one day return to the Browns.
Browns owner Jimmy Haslam and CEO Joe Banner have interviewed several coaching candidates and are expected to meet with more this week.
The Browns are expected to interview Indianapolis offensive coordinator Bruce Arians, who was released from a Baltimore hospital on Monday after he became ill before the Colts' 24-9 playoff loss to the Ravens.
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Wall Street edges off five-year high, awaits earnings

NEW YORK (Reuters) - Stocks lost ground on Monday, as investors drew back from recent gains that lifted the S&P 500 to a five-year high, in anticipation of sluggish growth in corporate profits.
Shares of financial companies dipped after a group of major U.S. banks agreed to pay a total of $8.5 billion to end a government inquiry into faulty mortgage foreclosures. The KBW bank index <.bkx>, a gauge of U.S. bank stocks, was down 0.3 percent.
Other sectors were hit as well, most notably energy and utilities. The S&P 500 energy sector index <.gspe> fell 0.8 percent and the utilities sector <.gspu> was off 1.1 percent.
The day's decline came a session after the S&P 500 finished at a five-year high, boosted by a budget deal and strong economic data. The S&P 500 rose 4.6 percent last week, the best weekly gain in more than a year.
"It's a little bit of taking some risk off the table ahead of profit season, you're not going to see anything all that great" on earnings, said Larry Peruzzi, senior equity trader at Cabrera Capital Markets Inc in Boston.
Earnings are expected to be only slightly better than the third-quarter's lackluster results, and analysts' current estimates are down sharply from where they were in October. Fourth-quarter earnings growth is expected to come in at 2.8 percent, according to Thomson Reuters data.
Aluminum company Alcoa Inc begins the reporting season by announcing its results after Tuesday's market close. Alcoa shares fell 1.7 percent at $9.10.
The Dow Jones industrial average <.dji> dropped 50.92 points, or 0.38 percent, to 13,384.29. The Standard & Poor's 500 Index <.spx> fell 4.58 points, or 0.31 percent, to 1,461.89. The Nasdaq Composite Index <.ixic> lost 2.84 points, or 0.09 percent, to 3,098.81.
Ten mortgage servicers - including Bank of America , Citigroup , JPMorgan , and Wells Fargo - agreed on Monday to pay $8.5 billion to end a case-by-case review of foreclosures required by U.S. regulators.
In a separate case, Bank of America also announced roughly $11.6 billion of settlements with mortgage finance company Fannie Mae and a $1.8 billion sale of collection rights on home loans.
The bank also entered into agreements with Nationstar Mortgage Holdings and Walter Investment Management to sell about $306 billion of residential mortgage servicing rights.
Bank of America shares lost 0.2 percent at $12.09 while Nationstar Mortgage Holdings jumped 16.8 percent to $38.83.
Citigroup shares were up 0.09 percent to $42.47, and Wells Fargo shares fell 0.5 percent to $34.77.
"The financials probably have the wind behind them now with a lot of the regulations coming out ... the market has to absorb a lot of the gains, and for that reason there's a pullback from this level," said Warren West, principal at Greentree Brokerage Services in Philadelphia.
Shares of U.S. jet maker Boeing Co dropped 2 percent after a Boeing 787 Dreamliner aircraft with no passengers on board caught fire at Boston's Logan International Airport on Monday morning.
Amazon.com shares hit their highest price ever at $269.22 after Morgan Stanley raised is rating on the stock. Shares were up 3.6 percent at $268.46.
Video-streaming service Netflix Inc shares gained 3.4 percent to $99.20 after it said it will carry previous seasons of some popular shows produced by Time Warner's Warner Bros Television.
Walt Disney Co stock fell 2.3 percent to $50.97. The company started an internal cost-cutting review several weeks ago that may include layoffs at its studio and other units, three people with knowledge of the effort told Reuters.
Volume was lower than average, as 4.78 billion shares were traded on the New York Stock Exchange, NYSE MKT and Nasdaq. This is well below the 2012 average of 6.42 billion per session.
Declining stocks outnumbered advancing ones on the NYSE by 1,629 to 1,363, while on the Nasdaq decliners beat advancers 1,438 to 1,066.
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Wall St edges off 5-year high, awaits earnings

 U.S. stocks lost ground on Monday, as investors drew back from recent gains that lifted the S&P 500 to a five-year high, in anticipation of sluggish growth in corporate profits.
Shares of financial companies dipped after a group of major U.S. banks agreed to pay a total of $8.5 billion to end a government inquiry into faulty mortgage foreclosures. The KBW bank index, a gauge of U.S. bank stocks, was down 0.3 percent.
Other sectors were hit as well, most notably energy and utilities. The S&P 500 energy sector index <.gspe> fell 0.8 percent and the utilities sector <.gspu> was off 1.1 percent.
The day's decline came a session after the S&P 500 finished at a five-year high, boosted by a budget deal and strong economic data. The S&P 500 rose 4.6 percent last week, the best weekly gain in more than a year.
"It's a little bit of taking some risk off the table ahead of profit season, you're not going to see anything all that great" on earnings, said Larry Peruzzi, senior equity trader at Cabrera Capital Markets Inc in Boston.
Earnings are expected to be only slightly better than the third-quarter's lackluster results, and analysts' current estimates are down sharply from where they were in October. Fourth-quarter earnings growth is expected to come in at 2.8 percent, according to Thomson Reuters data.
Aluminum company Alcoa Inc begins the reporting season by announcing its results after Tuesday's market close. Alcoa shares fell 1.7 percent at $9.10.
The Dow Jones industrial average dropped 50.92 points, or 0.38 percent, to 13,384.29. The Standard & Poor's 500 Index fell 4.58 points, or 0.31 percent, to 1,461.89. The Nasdaq Composite Index lost 2.84 points, or 0.09 percent, to 3,098.81.
Ten mortgage servicers - including Bank of America , Citigroup , JPMorgan , and Wells Fargo - agreed on Monday to pay $8.5 billion to end a case-by-case review of foreclosures required by U.S. regulators.
In a separate case, Bank of America also announced roughly $11.6 billion of settlements with mortgage finance company Fannie Mae and a $1.8 billion sale of collection rights on home loans.
The bank also entered into agreements with Nationstar Mortgage Holdings and Walter Investment Management to sell about $306 billion of residential mortgage servicing rights.
Bank of America shares lost 0.2 percent at $12.09 while Nationstar Mortgage Holdings jumped 16.8 percent to $38.83.
Citigroup shares were up 0.09 percent to $42.47, and Wells Fargo shares fell 0.5 percent to $34.77.
"The financials probably have the wind behind them now with a lot of the regulations coming out ... the market has to absorb a lot of the gains, and for that reason there's a pullback from this level," said Warren West, principal at Greentree Brokerage Services in Philadelphia.
Shares of U.S. jet maker Boeing Co dropped 2 percent after a Boeing 787 Dreamliner aircraft with no passengers on board caught fire at Boston's Logan International Airport on Monday morning.
Amazon.com shares hit their highest price ever at $269.22 after Morgan Stanley raised is rating on the stock. Shares were up 3.6 percent at $268.46.
Video-streaming service Netflix Inc shares gained 3.4 percent to $99.20 after it said it will carry previous seasons of some popular shows produced by Time Warner's Warner Bros Television.
Walt Disney Co stock fell 2.3 percent to $50.97. The company started an internal cost-cutting review several weeks ago that may include layoffs at its studio and other units, three people with knowledge of the effort told Reuters.
Volume was lower than average, as 4.78 billion shares were traded on the New York Stock Exchange, NYSE MKT and Nasdaq. This is well below the 2012 average of 6.42 billion per session.
Declining stocks outnumbered advancing ones on the NYSE by 1,629 to 1,363, while on the Nasdaq decliners beat advancers 1,438 to 1,066.
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Stocks sink, pulling S&P 500 down from 5-year high

 Investors started the week on a cautious note, pulling the Standard & Poor's 500 index down from the five-year high it reached Friday.
The move lower on Monday is likely the result of traders taking some winnings off the table after the stock market's surge last week, said Sam Stovall, chief equity strategist at S&P Capital IQ.
Investors are also preparing for corporate America's seasonal parade of earnings reports, which starts Tuesday.
"You can summarize it as profit-taking and preparation," Stovall said. "Investors are digesting some of those gains from last week and positioning themselves so they're not too far extended if fourth-quarter earnings slip a bit."
The S&P 500 fell 4.58 points to close at 1,461.89.
The Dow Jones industrial average lost 50.92 points to 13,384.29, while the Nasdaq composite dropped 2.84 points to 3,098.81.
The S&P 500 soared 4.6 percent last week, ending Friday at a five-year high. The government reported that hiring held up in December during the tense budget negotiations in Washington, with employers adding 155,000 jobs during the month.
Investors celebrated to start the year as lawmakers passed a bill to avoid a combination of government spending cuts and tax increases that came to be known as the "fiscal cliff." The law passed late Tuesday night avoided the full force of the budget cuts, which could have dragged the economy into a recession.
Investors are now shifting their focus to corporate profits. Aluminum producer Alcoa launches the reporting season for the fourth quarter of 2012 after the market closes on Tuesday.
Analysts forecast that companies in the S&P 500 will report that quarterly earnings increased 3.3 percent compared with the same period the year before, according to S&P Capital IQ. But all the events that took place in the last three months of 2012 -- Superstorm Sandy, the presidential election, and worries about the narrowly avoided "fiscal cliff" -- could make for some surprises.
JPMorgan Chase, Bank of America and others banks agreed to pay $8.5 billion to settle federal complaints that they foreclosed on people who should have been allowed to stay in their homes. Bank stocks ended the day little changed.
In a separate agreement, Bank of America settled with the government-owned mortgage finance company Fannie Mae over mortgage investments that lost value during the real-estate crash. BofA's stock fell 2 cents to $12.09.
In other trading, the yield on the 10-year Treasury note was 1.90 percent. The yield on the note hit an eight-month high of 1.97 percent in intraday trading Friday, according to prices from Tradeweb, an operator of fixed-income markets.
Among other stocks making big moves:
— Archer Daniels Midland dropped 4 percent. Analysts at JP Morgan Chase said the ongoing drought in the Midwest will likely squeeze the crop-processing company's profit margins. The analysts also started coverage on ADM's stock with a price target of $28, below where it opened for trading Monday. ADM fell $1.21 to $28.01.
— Lowe's Cos. fell 82 cents to $34.76 after analysts at the money-management firm Canaccord cut their rating on the company to "sell" from "hold," saying that the home improvement company's efforts to improve stores and sales won't be successful.
— Walgreen Co. gained 85 cents to $38.03 after Jefferies analyst Scott A. Mushkin raised his rating on the drugstore chain to "buy" from "hold," saying the company's profits may get a boost from the flu season, Medicare drug plans and President Obama's health-care overhaul.
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Colombia firm makes armored clothes for kids

BOGOTA, Colombia (AP) — A Colombian firm that makes bulletproof vests is now creating armored clothing for children.
Factory owner Miguel Caballero said he never thought about making protective clothes for kids until requests came in following the deadly attack on Sandy Hook Elementary in Connecticut last month.
"After the tragedy in Connecticut, we started getting emails from customers asking for protected (clothing) because they were afraid to take their kids to school," Caballero said.
"We have received messages from all over the United States," seeking the protective gear, added Giovanni Cordero, the company's marketing director.
Products include child-sized armored vests, protective undershirts and backpacks with ballistic protection that can be used as shields.
The products are designed for children ages 8-16 years old and cost $150-$600 depending on the complexity of their construction. Each piece weighs 2-4 pounds.
"The products were created with the American market in mind, not for the Latino market," said Caballero. "All the designs and colors, everything is thought out with them in mind."
Caballero performed a test on a pink-and-yellow striped bulletproof backpack attached to a pale blue protective vest, firing a 9mm pistol and a machine gun to show it could withstand a barrage of bullets.
He said the backpack-vest combo and other protective gear have already been ordered by a U.S. distributor, although he would not identify it.
About 250 people work at Caballero's factory, which has been making armored vests for adults for more than 20 years. Colombia suffers from an internal conflict that has killed thousands of people over the last half-century.
Outside Colombia, the vests for adults are sold in some 20 countries, including Ecuador, Costa Rica and Mexico. They are also marketed in parts of Europe, Asia and the Middle East.
Twenty first-graders and six educators were killed in the Dec. 14 attack at Sandy Hook Elementary in Newtown, Conn. The 20-year-old gunman, Adam Lanza, also shot and killed his mother inside their home before driving to the school and shooting his way inside. He committed suicide as police were closing in.
After the Newtown shooting, at least three American companies that were already making backpacks designed to shield children reported a spike in sales.
Massachusetts-based Bullet Blocker reported it was selling 50 to 100 bulletproof backpacks a day after the shooting, up from about 10 to 15 in an average week. The children's backpacks, which are designed to be used as shields, cost more than $200 each.
Most of the children killed in the Sandy Hook Elementary massacre were shot at close range and likely would not have been saved by armored backpacks. At any rate, children don't usually wear their backpacks at their desks or while walking around school.
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Chile: Couple dies defending home against Indians

SANTIAGO, Chile (AP) — An elderly couple whose family's vast landholdings have long been targeted by Mapuche Indians in southern Chile were killed in an arson attack early Friday while trying to defend their home. The president quickly flew to the scene and announced new security measures, including the application of Chile's tough anti-terrorism law and the creation of a special police anti-terror unit backed by Chile's military.
No one claimed responsibility for the attack, which some Mapuche Indians repudiated Friday as senseless and abhorrent. But Chile's interior minister said pamphlets condemning police violence and demanding the return of Mapuche lands were left at the scene. The presidentially appointed governor of the remote southern region of Araucania, Andres Molina, called the attackers "savages."
"This attack affects the entire country and causes gigantic damage, for the pain and the delays that it means for thousands of families who want to live in peace," Pinera said. "This government is united in its effort to combat terrorism that affects the region. We will not hesitate to apply the full weight of the law."
"It should be completely clear," Pinera added, "that this fight is not against the Mapuche people. It's with a minority of violent terrorists who must be fought with everything the law allows."
Werner Luchsinger, 75, fired a weapon in self-defense, and struck a man from the nearby Mapuche community of Juan Quintrupil before his home burned to the ground, regional police chief Ivan Bezmalinovic said.
Luchsinger's wife Vivian McKay called relatives for help during the attack, but when they arrived just 15 minutes later the house was already in flames and she didn't answer her phone, according to the victim's cousin, Jorge Luchsinger.
The attack began Thursday night as one of many political protests around Chile commemorating the death five years ago of Mapuche activist Matias Catrileo, who was shot in the back by an officer who served a minor sentence and then rejoined the police. The Indians scattered pamphlets related to the anniversary while on the Luchsinger property, Interior Minister Andres Chadwick said.
The victims' Lumahue ranch is just 16 miles (25 kilometers) from the spot where Catrileo was killed on Jan. 3, 2008.
Celestino Cordova Transito, 26, was detained near the scene early Friday. Police have him under arrest in a hospital in Temuco, where he was being treated for a gunshot wound in the neck, the chief said.
Gov. Molina said that Werner Luchsinger's gunshot, by enabling police to capture the wounded suspect, may help solve not only the couple's death but previous arson attacks as well.
"I want to thank Don Werner, because probably thanks to him we're closer to finding these savages who have done such damage to Araucania," he said.
Pinera also met briefly with the Luchsinger family as well as other local landowners next to the burned-out home, but Chile's El Mercurio said the meeting was cut short when some fled due to a false rumor that Mapuche activists were targeting their properties even as the president spoke. Other landowners shouted out in anger, asking for tougher security measures, and then briefly blocked the main highway in protest. Pinera's security detail then ushered him away, the newspaper reported.
Jorge Luchsinger said earlier Friday that masked Indians have repeatedly attacked his and other relatives' properties as well, despite the considerable police presence in the area. "It's obvious that the authorities are completely overwhelmed," he told radio Cooperativa.
Many of Chile's Mapuche activist groups were silent Friday about the murders, repeating instead their complaints about continuing police violence of the kind that killed Catrileo years ago.
But Venancio Conuepan, who described himself as a law student who comes from a long line of Mapuche leaders, wrote an editorial Friday condemning the violence, rejecting the idea that armed conflict can win their demands, and calling for the killers to be identified and tried in court. He said the vast majority of the Mapuche people agree with him.
"Enough of people using violence in the name of the Mapuche people. Our grandfathers never covered their faces. The Mapuche created parliaments, and always put dialogue first," wrote Conuepan on Radio BioBio's web site, titling his editorial, "Although you don't believe me, I'm Mapuche and I'm not a Terrorist."
The Luchsinger family has been among the most outspoken in defending the property rights of the region's landowners against ancestral land claims by the Mapuche. But Jorge said his cousin had taken a lower profile and refused police protection.
Lorena Fries, the director of Chile's official Human Rights Institute, warned Friday against cracking down using the anti-terror law, which allows for holding suspects in isolation without charges, using secret witnesses and other measures that have been discredited by Chile's courts in previous cases of Mapuche violence. Instead, she said Pinera should reach out to the Indians, and honor their demands for self-governance and the recovery of ancestral land. "Something has to be done so that everyone puts an end to the violence," she said.
The Mapuches' demands for land and autonomy date back centuries. They resisted Spanish and Chilean domination for more than 300 years before they were forced south to Araucania in 1881. Many of the 700,000 Mapuches who survive among Chile's 17 million people still live in Araucania. A small fraction have been rebelling for decades, destroying forestry equipment and torching trees. Governments on the left and right have sent in police while offering programs that fall far short of their demands.
The Luchsinger family also arrived in Araucania in the late 1800s, from Switzerland, and benefited from the government's colonization policies for decades thereafter, becoming one of the largest landowners in Chile's Patagonia region. Their forestry and ranching companies now occupy vast stretches of southern Chile, and impoverished Mapuches live on the margins of their properties.
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Chile: Couple dies defending home amid protests

SANTIAGO, Chile (AP) — An elderly couple whose family's vast landholdings have long been targeted by Mapuche Indians in southern Chile were killed in an arson attack early Friday while trying to defend their home. The president quickly flew to the scene and announced new security measures, including the application of Chile's tough anti-terrorism law and the creation of a special police anti-terror unit backed by Chile's military.
No one claimed responsibility for the attack, which some Mapuche Indians repudiated Friday as senseless and abhorrent. But Chile's interior minister said pamphlets condemning police violence and demanding the return of Mapuche lands were left at the scene. The presidentially appointed governor of the remote southern region of Araucania, Andres Molina, called the attackers "savages."
"This attack affects the entire country and causes gigantic damage, for the pain and the delays that it means for thousands of families who want to live in peace," Pinera said. "This government is united in its effort to combat terrorism that affects the region. We will not hesitate to apply the full weight of the law."
"It should be completely clear," Pinera added, "that this fight is not against the Mapuche people. It's with a minority of violent terrorists who must be fought with everything the law allows."
Werner Luchsinger, 75, fired a weapon in self-defense, and struck a man from the nearby Mapuche community of Juan Quintrupil before his home burned to the ground, regional police chief Ivan Bezmalinovic said.
Luchsinger's wife Vivian McKay called relatives for help during the attack, but when they arrived just 15 minutes later the house was already in flames and she didn't answer her phone, according to the victim's cousin, Jorge Luchsinger.
The attack began Thursday night as one of many political protests around Chile commemorating the death five years ago of Mapuche activist Matias Catrileo, who was shot in the back by an officer who served a minor sentence and then rejoined the police. The Indians scattered pamphlets related to the anniversary while on the Luchsinger property, Interior Minister Andres Chadwick said.
The victims' Lumahue ranch is just 16 miles (25 kilometers) from the spot where Catrileo was killed on Jan. 3, 2008.
Celestino Cordova Transito, 26, was detained near the scene early Friday. Police have him under arrest in a hospital in Temuco, where he was being treated for a gunshot wound in the neck, the chief said.
Gov. Molina said that Werner Luchsinger's gunshot, by enabling police to capture the wounded suspect, may help solve not only the couple's death but previous arson attacks as well.
"I want to thank Don Werner, because probably thanks to him we're closer to finding these savages who have done such damage to Araucania," he said.
Pinera also met briefly with the Luchsinger family as well as other local landowners next to the burned-out home, but Chile's El Mercurio said the meeting was cut short when some fled due to a false rumor that Mapuche activists were targeting their properties even as the president spoke. Other landowners shouted out in anger, asking for tougher security measures, and then briefly blocked the main highway in protest.
Jorge Luchsinger said earlier Friday that masked Indians have repeatedly attacked his and other relatives' properties as well, despite the considerable police presence in the area. "It's obvious that the authorities are completely overwhelmed," he told radio Cooperativa.
Many of Chile's Mapuche activist groups were silent Friday about the murders, repeating instead their complaints about continuing police violence of the kind that killed Catrileo years ago.
But Venancio Conuepan, who described himself as a law student who comes from a long line of Mapuche leaders, wrote an editorial Friday condemning the violence, rejecting the idea that armed conflict can win their demands, and calling for the killers to be identified and tried in court. He said the vast majority of the Mapuche people agree with him.
"Enough of people using violence in the name of the Mapuche people. Our grandfathers never covered their faces. The Mapuche created parliaments, and always put dialogue first," wrote Conuepan on Radio BioBio's web site, titling his editorial, "Although you don't believe me, I'm Mapuche and I'm not a Terrorist."
The Luchsinger family has been among the most outspoken in defending the property rights of the region's landowners against ancestral land claims by the Mapuche. But Jorge said his cousin had taken a lower profile and refused police protection.
Lorena Fries, the director of Chile's official Human Rights Institute, warned Friday against cracking down using the anti-terror law, which allows for holding suspects in isolation without charges, using secret witnesses and other measures that have been discredited by Chile's courts in previous cases of Mapuche violence. Instead, she said Pinera should reach out to the Indians, and honor their demands for self-governance and the recovery of ancestral land. "Something has to be done so that everyone puts an end to the violence," she said.
The Mapuches' demands for land and autonomy date back centuries. They resisted Spanish and Chilean domination for more than 300 years before they were forced south to Araucania in 1881. Many of the 700,000 Mapuches who survive among Chile's 17 million people still live in Araucania. A small fraction have been rebelling for decades, destroying forestry equipment and torching trees. Governments on the left and right have sent in police while offering programs that fall far short of their demands.
The Luchsinger family also arrived in Araucania in the late 1800s, from Switzerland, and benefited from the government's colonization policies for decades thereafter, becoming one of the largest landowners in Chile's Patagonia region. Their forestry and ranching companies now occupy vast stretches of southern Chile, and impoverished Mapuches live on the margins of their properties.
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Wall St Week Ahead - 'Cliff' concerns give way to earnings focus

NEW YORK (Reuters) - Investors' "fiscal cliff" worries are likely to give way to more fundamental concerns, like earnings, as fourth-quarter reports get under way next week.
Financial results, which begin after the market closes on Tuesday with aluminum company Alcoa , are expected to be only slightly better than the third-quarter's lackluster results. As a warning sign, analyst current estimates are down sharply from what they were in October.
That could set stocks up for more volatility following a week of sharp gains that put the Standard & Poor's 500 index on Friday at the highest close since December 31, 2007. The index also registered its biggest weekly percentage gain in more than a year.
Based on a Reuters analysis, Europe ranks among the chief concerns cited by companies that warned on fourth-quarter results. Uncertainty about the region and its weak economic outlook were cited by more than half of the 25 largest S&P 500 companies that issued warnings.
In the most recent earnings conference calls, macroeconomic worries were cited by 10 companies while the U.S. "fiscal cliff" was cited by at least nine as reasons for their earnings warnings.
"The number of things that could go wrong isn't so high, but the magnitude of how wrong they could go is what's worrisome," said Kurt Winters, senior portfolio manager for Whitebox Mutual Funds in Minneapolis.
Negative-to-positive guidance by S&P 500 companies for the fourth quarter was 3.6 to 1, the second worst since the third quarter of 2001, according to Thomson Reuters data.
U.S. lawmakers narrowly averted the "fiscal cliff" by coming to a last-minute agreement on a bill to avoid steep tax hikes this weeks -- driving the rally in stocks -- but the battle over further spending cuts is expected to resume in two months.
Investors also have seen a revival of worries about Europe's sovereign debt problems, with Moody's in November downgrading France's credit rating and debt crises looming for Spain and other countries.
"You have a recession in Europe as a base case. Europe is still the biggest trading partner with a lot of U.S. companies, and it's still a big chunk of global capital spending," said Adam Parker, chief U.S. equity strategist at Morgan Stanley in New York.
Among companies citing worries about Europe was eBay , whose chief financial officer, Bob Swan, spoke of "macro pressures from Europe" in the company's October earnings conference call.
REVENUE WORRIES
One of the biggest worries voiced about earnings has been whether companies will be able to continue to boost profit growth despite relatively weak revenue growth.
S&P 500 revenue fell 0.8 percent in the third quarter for the first decline since the third quarter of 2009, Thomson Reuters data showed. Earnings growth for the quarter was a paltry 0.1 percent after briefly dipping into negative territory.
On top of that, just 40 percent of S&P 500 companies beat revenue expectations in the third quarter, while 64.2 percent beat earnings estimates, the Thomson Reuters data showed.
For the fourth quarter, estimates are slightly better but are well off estimates for the quarter from just a few months earlier. S&P 500 earnings are expected to have risen 2.8 percent while revenue is expected to have gone up 1.9 percent.
Back in October, earnings growth for the fourth quarter was forecast up 9.9 percent.
In spite of the cautious outlooks, some analysts still see a good chance for earnings beats this reporting period.
"The thinking is you need top line growth for earnings to continue to expand, and we've seen the market defy that," said Mike Jackson, founder of Denver-based investment firm T3 Equity Labs.
Based on his analysis, energy, industrials and consumer discretionary are the S&P sectors most likely to beat earnings expectations in the upcoming season, while consumer staples, materials and utilities are the least likely to beat, Jackson said.
Sounding a positive note on Friday, drugmaker Eli Lilly and Co said it expects profit in 2013 to increase by more than Wall Street had been forecasting, primarily due to cost controls and improved productivity.
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Wall Street economists see Fed's Treasury buying ending in 2013: Reuters poll

NEW YORK (Reuters) - Most economists at Wall Street's top financial institutions expect the Federal Reserve in 2013 to end the program with which it bought Treasury debt in an effort to stimulate the economy, according to a Reuters poll on Friday.
Economists at nine of 16 primary dealers -- the large financial institutions that do business directly with the Fed -- said they expect the current Fed program of buying $45 billion per month of Treasuries to end in 2013.
Of the nine, eight said the central bank would quit the program in the fourth quarter or the end of the year. One forecast the end of the program in June.
Six of 15 economists at primary dealers said the Treasury purchase program would close in 2014, while one said it would continue through to the first half of 2016.
Minutes from the Fed's December policy meeting, released on Thursday, showed "several" top officials expected to slow or stop the so-called quantitative easing program "well before" the end of the year. That news surprised some on Wall Street and prompted a drop in stocks and bonds, and a rise in the dollar.
"It is hard to be as confident of the purchases continuing at the same pace, because we had originally thought they were going to last through the fourth quarter of 2014, but now it is not as clear that is going to be the case," said Tom Simons, money market economist with Jefferies & Co. in New York.
St. Louis Fed President James Bullard, a voting member of the Fed's monetary policy panel this year, said on Friday the Fed could be in a position to halt its asset purchases this year if the U.S. economy improves.
The Fed this week began buying longer-dated Treasuries in an open-ended stimulus program that replaced its "Operation Twist" stimulus, under which it was selling shorter-dated Treasuries and using the proceeds to buy longer-dated U.S. government debt. Twist expired at the end of December, with analysts noting the central bank had few shorter-dated Treasuries left to sell.
The central bank is already buying about $40 billion per month of mortgage-backed securities in an effort to prop up the economy.
The median of forecasts from 13 primary dealers was for the Fed to buy a total of $540 billion of Treasuries under the current stimulus program. Estimates ranged from $270 billion to $1 trillion.
Nine of 16 primary dealers said the U.S. unemployment rate would fall to 6.5 percent in 2015, while six said it would dip to that level in 2014 and one said it would happen in 2016.
The Fed at the conclusion of its December policy meeting said it expects to hold interest rates at the current level of zero to 0.25 percent at least as long as the unemployment rate remains above 6.5 percent and inflation between one and two years ahead is projected to be no more than 2.5 percent.
Previously, the Fed had said it expects to hold rates near zero at least through mid-2015.
The Reuters poll was conducted on Friday after the government reported the pace of hiring by U.S. employers eased slightly in December, while the unemployment rate held steady from November at 7.8 percent.
"In the context of the Fed's now explicit unemployment rate target, (Friday's payrolls data) at the margin theoretically extends the timing of the first tightening," said Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York.
"That said, at the current six month pace in monthly payroll gains and labor force growth, the unemployment rate would still hit 6.5 percent by June 2014 - much sooner than the Fed's prior mid-2015 launch point," he said.
There are 21 U.S. primary dealers. Not all of the dealers responded to the Reuters poll.
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Fed's policy "thresholds" plan surprised dealers: poll

NEW YORK (Reuters) - Very few Wall Street economists expected the U.S. Federal Reserve to adopt policy thresholds at its last meeting, results from a New York Fed poll of primary dealers showed on Friday, highlighting how surprising was the decision.
The 20 dealers, who have access to the central bank's discount window, were polled before the Fed's December 11-12 policy meeting. At the meeting the Fed ultimately decided to tie low interest rates to specific unemployment and inflation levels, or "thresholds."
Dealers gave only a 10 percent chance that the Fed would adopt such thresholds at the December meeting, and respective 20 percent and 30 percent chances at the following two policy meetings, according to the median poll response.
Under the thresholds plan, the Fed will keep its federal funds rate near zero until the unemployment rate drops to 6.5 percent, from 7.8 percent now - unless the inflation outlook edges up to 2.5 percent.
Asked how much in bonds they expected the Fed to purchase, the dealers polled were generally correct in predicting $45 billion in Treasuries and $40 billion in mortgage-backed securities.
One year out, the dealers said they expected Fed purchases of $35 billion in Treasuries and still $40 billion in MBS, based on the median of poll responses.
That prediction may have recently changed.
Minutes from the December meeting, released on Thursday, showed "several" Fed policymakers expected to slow or stop the so-called quantitative easing program, dubbed QE3, "well before" the end of the year - news that prompted a drop in stocks and bonds, and a rise in the dollar.
The Federal Reserve Bank of New York unveiled the poll results on Friday.
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UK backs Lucentis for new use after Novartis cuts price

LONDON (Reuters) - Britain's healthcare cost watchdog has given its backing to eye drug Lucentis to treat diabetes-related problems after Swiss drugmaker Novartis offered it at a discount to the National Health Service.
The National Institute for Health and Clinical Excellence (NICE), in a reversal of an earlier decision, said on Friday Lucentis should now be available for patients with diabetic macular oedema (DMO).
Lucentis is already approved by NICE to treat wet age-related macular degeneration.
In November 2011, NICE said it could not recommend Lucentis, known generically as ranibizumab, as an effective use of NHS resources for DMO. On Friday, it said a fresh approach from Novartis had prompted a review of that decision.
Novartis has offered a new Patient Access Scheme, which would make Lucentis available at an undisclosed discounted, NICE said, and submitted new analyses showing the drug's superior relative effect in a sub-group of people with DMO.
As a result, NICE was now "pleased to recommend ranibizumab as a treatment option for some people with visual impairment caused by diabetic macular oedema," Carole Longson, NICE's health technology evaluation centre director, said.
NICE said the agreement with Novartis was confidential, and did not say how deep the discount would be or give a reference price for Lucentis. The list price for Lucentis is 742.17 pounds ($1,200) per injection.
The drug is designed to be given monthly and continued until vision is stable over three consecutive assessments.
Novartis said NICE's decision was an important and long-awaited step forward in improving care for people with DMO, adding an estimated 25,000 people with the condition could soon be eligible for Lucentis treatment.
NICE's recommendation is draft guidance and open to appeal before a final recommendation is issued to the NHS in February.
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