S&P rises for seventh day but 1,500 too steep a climb

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


Apple Inc slid 12.4 percent to $450.50 a day after it posted revenue that missed Wall Street's forecast as iPhone sales were poorer than expected.


The sharp drop wiped out nearly $60 billion in Apple's market capitalization to less than $423 billion, leaving the company vulnerable to losing its status as the most valuable U.S. company to second-place ExxonMobil , at $416.5 billion.


The S&P 500, however, managed to hit its longest winning streak since October 2006.


"The market has sent the message it is no longer driven by the whims of Apple," said Ken Polcari, director of the NYSE floor division at O'Neil Securities in New York.


The S&P 500 briefly traded above 1,500 for the first time since December 12, 2007, but failed to hold above it, indicating that momentum is waning and a pullback is in the charts.


"If the market had a little bit more excitement to it, momentum players would have jumped after it broke through 1,500. Investors know the market is a little bit ahead of itself," Polcari said.


Economic data helped buoy equities as U.S. factory activity grew the most in nearly two years in January and new claims for jobless benefits dropped to a five-year low last week, giving surprisingly strong signals on the economy's pulse.


At the same time, Chinese manufacturing grew this month at the fastest pace in about two years, while data suggesting German growth picked up boosted hopes for a euro-zone recovery.


"PMI in Asia, Europe, and obviously, here in the United States, is moving in the right direction, and that's stuff people should be excited about," Polcari said.


The Dow Jones industrial average <.dji> rose 46 points or 0.33 percent, to 13,825.33 at the close. The S&P 500 <.spx> inched up just 0.01 of a point, or 0 percent, to finish at 1,494.82. The Nasdaq Composite <.ixic> dropped 23.29 points or 0.74 percent, to end at 3,130.38, with most of that loss on Apple's slide.


The broader Russell 2000 index <.rut> also hit a milestone as it closed above 900 points for the first time.


Video streaming service Netflix Inc surprised Wall Street with a quarterly profit after it added nearly 4 million customers in the United States and abroad. Netflix shares surged 42.2 percent to $146.86, its biggest percentage jump ever.


Earnings have helped drive the stock market's recent rally. Thomson Reuters data through early Thursday showed that of the 133 S&P 500 companies that have reported earnings so far, 66.9 percent have exceeded expectations - above the 65 percent average over the past four quarters.


About 6.8 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average during January 2012 of about 6.93 billion shares.


Roughly five issues rose for every four that fell on both the NYSE and Nasdaq.


(Editing by Jan Paschal)



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Azarenka eludes chokehold, gains Australian final


MELBOURNE, Australia (AP) — Sloane Stephens sat for nine minutes, mostly staring at the court and trying to forget the curious timing of Victoria Azarenka's medical timeout. She may have been the only one trying to ignore it.


The 19-year-old American had just saved five match points and broken Azarenka. But she knew she had to hold serve to stay in her first Grand Slam semifinal whenever Azarenka — the No. 1 player and defending Australian Open champion — returned to Rod Laver Arena.


The restless murmuring in the crowd gave way to slow claps. Why had Azarenka chosen that very moment for a medical break?


Azarenka eventually hustled onto the court, and Stephens won only three more points, losing 6-1, 6-4.


"I almost did the choke of the year," Azarenka said in a frank admission during an on-court interview. "At 5-3, having so many chances, I couldn't close it out."


The crowd that had cheered wildly for Stephens, only 25 hours after she ousted an injured Serena Williams, gave Azarenka tepid applause as she left the court. She'll face 2011 finalist Li Na in the final Saturday night. Given the support Li enjoyed in her 6-2, 6-2 win over No. 2-ranked Maria Sharapova, there's no question which player the crowd will favor in the title match.


Azarenka's immediate post-match remarks suggest she panicked after failing to convert five match points, her forehand misfiring. She had little trouble finishing the match after she came back, and the No. 29-seeded Stephens had cooled off.


"I just felt a little bit overwhelmed. I realized I'm one step away from the final and nerves got into me for sure," Azarenka said.


The 23-year-old Belarusian said she was later compelled to explain that she misunderstood the question in the on-court interview, and she wanted to dispel the perception that her medical timeout amounted to little more than gamesmanship.


"I understand the point of people maybe not understanding what I said; me not understanding what I've been asked," she said during an official news conference more than two-thirds devoted to questions on her medical timeout. "So I'm just glad that I'm here, you know, to make everything clear.


"You know, I think you cannot really judge by (a) few words. The situation had to be explained."


Medical staff said Azarenka had timeouts for treatment of left knee and rib injuries. The rib needed to be manipulated because it was affecting her breathing. Tournament director Craig Tiley said Azarenka hadn't broken any rules.


Azarenka hadn't helped herself in a second television interview after the match when she said she couldn't breathe.


"I had chest pains," she said. "It was like I was getting a heart attack."


She tried to allay any negative perception with her explanation that the choking was related to shortness of breath from the rib injury, not her faltering game.


"When you cannot breathe you start to panic," she said. "I was really panicking, not because I couldn't convert my match point. That's not the case. I mean, I'm experienced enough to go over those emotions. But when you cannot breathe, when something's really blocking you, the stress — that was the stress I was talking about.


"What I said — that I was stressed out and choked — was not because I couldn't finish my shot. It was just so stressing me out the pain that I had that, maybe it was overreaction, but I just really couldn't breathe."


Azarenka had retired during previous Grand Slam matches, including a fourth-round match against Serena Williams at the 2009 Australian Open. But with a second major title so close, and the fact she needed to reach the final to retain the No. 1 ranking, she desperately didn't want to quit this time.


For her part, Stephens seemed sympathetic. She had to wait through a medical timeout Wednesday when Williams received treatment for a sore back — the 15-time major winner injured herself after leading by a set and a break. Another rival earlier in the tournament took a long break between sets for other reasons.


"I mean, when you take a medical break or timeout, obviously it's for a reason," she said. "I mean, just another something else that happens. If it was one of my friends, I would say, 'Oh, my God, that sounds like a PP, which is a personal problem. Other than that, it's just unfortunate."


Besides, Stephens said, it didn't affect the outcome of the match.


"No, not at all. She played obviously a really good match," she said. "First set she played awesome; got close in the second. It didn't go my way, but I wouldn't say at all what happened affected the match."


Novak Djokovic dispensed with No. 4-seeded David Ferrer 6-2, 6-2, 6-1 in the night match, saying he "played perfectly" to reach his third consecutive Australian Open title match. Then he dispensed some medical advice of his own.


The Serb, who won the Australian titles in 2008, 2011 and 2012, wore a white shirt with a red cross on the back, pretending to be a doctor to treat Henri Leconte during a legends doubles match at Rod Laver Arena.


He's relaxed now that he has an extra day to prepare for Sunday's final. Djokovic will next play the winner of Friday's semifinal between No. 2 Roger Federer, a four-time Australian Open champion, and No. 3 Andy Murray, the U.S. Open champion.


Djokovic lost only seven points in 11 service games against Ferrer, and hit 30 crisp, clean winners in an almost flawless performance.


"I cannot remember the last time I played so well," Djokovic said. "I've played many great matches, but this one stands out. Hopefully, I can play the same level on Sunday."


He played confidently in the first two sets, and was sublime in the third. Even Ferrer, who has now lost five Grand Slam semifinals and never reached a championship match, was surprised.


After hitting a forehand a fraction wide of the line and losing his challenge in a review, Ferrer double-faulted to give Djokovic match point. The errors were a measure of just how much pressure Djokovic was applying.


Right after his semifinal, Djokovic started playing mind games leading to the final.


"Federer-Murray, when they're playing it's always very close," he said, confirming he'd be closely watching the match. "I wouldn't give the role of the favorite to either of them. I expect to enjoy it. Whoever I play against, I'm going to be ready."


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NASA testing vintage engine from Apollo 11 rocket






HUNTSVILLE, Ala. (AP) — A vintage rocket engine built to blast the first U.S. lunar mission into Earth’s orbit more than 40 years ago is again rumbling across the Southern landscape.


The engine, known to NASA engineers as No. F-6049, was supposed to help propel Apollo 11 into orbit in 1969, when NASA sent Neil Armstrong and two other astronauts to the moon for the first time. The flight went off without a hitch, but no thanks to the engine — it was grounded because of a glitch during a test in Mississippi and later sent to the Smithsonian Institution, where it sat for years.






Now, young engineers who weren’t even born when Armstrong took his one small step are using the bell-shaped motor in tests to determine if technology from Apollo’s reliable Saturn V design can be improved for the next generation of U.S. missions back to the moon and beyond by the 2020s.


They’re learning to work with technical systems and propellants not used since before the start of the space shuttle program, which first launched in 1981.


Nick Case, 27, and other engineers at NASA‘s Marshall Space Flight Center on Thursday completed a series of 11 test-firings of the F-6049′s gas generator, a jet-like rocket which produces 30,000 pounds of thrust and was used as a starter for the engine. They are trying to see whether a second-generation version of the Apollo engine could produce even more thrust and be operated with a throttle for deep-space exploration.


There are no plans to send the old engine into space, but it could become a template for a new generation of motors incorporating parts of its design.


In NASA-speak, the old 18-foot-tall motor is called an F-1 engine. During moon missions, five of them were arranged at the base of the 363-foot-tall Saturn V system and fired together to power the rocket off the ground toward Earth orbit.


Thursday’s test used one part of the engine, the gas generator, which powers the machinery to pump propellant into the main rocket chamber. It doesn’t produce the massive orange flame or clouds of smoke like that of a whole F-1, but the sound was deafening as engineers fired the mechanism in an outdoor test stand on a cool, sunny afternoon.


The device produced a plume that resembled a blow torch the size of two buses and set fire to a grassy area, which was quickly extinguished.


“It’s not small,” Case said. “It’s pretty beefy on its own.”


And just like during the Apollo days, people in north Alabama heard rockets thundering in the distance during tests at Marshall.


“My wife and daughter were in our front yard and she said they could hear it, which was pretty cool,” Case said after an earlier test. “We live about 15 miles away.”


A single F-1 engine can produce 1.5 million pounds of thrust using a fuel composed of liquid oxygen and refined kerosene, which was not used in the space shuttle.


The tests were conducted at Marshall in a project conducted with Dynetics Inc. and Pratt & Whitney Rocketdyne, which are studying NASA‘s possibilities for deep-space missions years from now. The space agency plans to use commercial launches to reach low Earth orbit; larger rockets are required to escape the planet’s gravity.


R.H. Coates, an engineer who works with Case in Marshall’s liquid propulsion office, said young engineers can learn a lot from the work done by predecessors using slide-rules in the 1960s, but no one wants to simply rebuild the old Saturn V engine.


“This wouldn’t be your daddy’s F-1,” Coates said. “We’d use new materials and try to simplify it, update it.”


Case started at Marshall as a high school intern in 2002 and has been working there since graduating from the University of Alabama in Huntsville in 2008. He said today’s technology allows things that weren’t possible during the 1960s, but he has been impressed by what he learned taking apart the unused Apollo 11 engine.


Engine No. F-6049 didn’t fit properly on the Apollo 11 rocket, but it is invaluable now as a testing tool. Coates said a total of 85 F-1 engines were used on 17 Apollo flights without a single failure.


About a dozen F-1 engines remain in Huntsville, home of NASA‘s main propulsion center, and others are located elsewhere. Most are on display; Case said engineers used engine No. F-6049 for the tests because it was the most complete.


“It is really an excellent booster,” he said. “The guys in Apollo had it right.”


___


Online:


NASA Marshall Space Flight Center: http://www.nasa.gov/centers/marshall/home/index.html


___


Follow Reeves at: http://twitter.com/Jay_Reeves


Space and Astronomy News Headlines – Yahoo! News





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Neanderthal cloning? Pure fantasy




A display of a reconstruction of a Neanderthal man and boy at the Museum for Prehistory in Eyzies-de-Tayac, France.




STORY HIGHLIGHTS


  • Arthur Caplan: It would be unethical to try and clone a Neanderthal baby

  • Caplan: Downsides include a good chance of producing a baby that is seriously deformed

  • He says the future belongs to what we can do to genetically engineer and control microbes

  • Caplan: Microbes can make clean fuel, suck up carbon dioxide, clean fat out of arteries




Editor's note: Arthur Caplan is the Drs. William F and Virginia Connolly Mitty professor and director of the Division of Bioethics at New York University Langone Medical Center.


(CNN) -- So now we know -- there won't be a Neanderthal moving into your neighborhood.


Despite a lot of frenzied attention to the intentionally provocative suggestion by a renowned Harvard scientist that new genetic technology makes it possible to splice together a complete set of Neanderthal genes, find an adventurous surrogate mother and use cloning to gin up a Neanderthal baby -- it ain't gonna happen anytime soon.


Nor should it. But there are plenty of other things in the works involving genetic engineering that do merit serious ethical discussion at the national and international levels.



Arthur Caplan

Arthur Caplan



Some thought that the Harvard scientist, George Church, was getting ready to put out an ad seeking volunteer surrogate moms to bear a 35,000-year-old, long-extinct Neanderthal baby. Church had to walk his comments back and note that he was just speculating, not incubating.


Still cloning carries so much mystery and Hollywood glamour thanks to movies such as "Jurassic Park," "The Boys From Brazil" and "Never Let Me Go" that a two-day eruption of the pros and cons of making Neanderthals ensued. That was not necessary. It would be unethical to try and clone a Neanderthal baby.



Why? Because there is no obvious reason to do so. There is no pressing need or remarkable benefit to undertaking such a project. At best it might shed some light on the biology and behavior of a distant ancestor. At worst it would be nothing more than the ultimate reality television show exploitation: An "Octomom"-like surrogate raises a caveman child -- tune in next week to see what her new boyfriend thinks when she tells him that there is a tiny addition in her life and he carries a small club and a tiny piece of flint to sleep with him.


The downsides of trying to clone a Neanderthal include a good chance of killing it, producing a baby that is seriously deformed, producing a baby that lacks immunity to infectious diseases and foods that we have gotten used to, an inability to know what environment to create to permit the child to flourish and a complete lack of understanding of what sort of behavior is "normal" or "appropriate" for such a long-extinct cousin hominid of ours.


When weighed against the risks and the harm that most likely would be done, it would take a mighty big guarantee of benefit to justify this cloning experiment. I am willing to venture that the possible benefit will never, ever reach the point where this list of horrible likely downsides could be overcome.




Even justifying trying to resurrect a woolly mammoth, or a mastodon, or the dodo bird or any other extinct animal gets ethically thorny. How many failures would be acceptable to get one viable mastodon? Where would the animal live? What would we feed it? Who would protect it from poachers, gawkers and treasure hunters? It is not so simple to take a long dead species, make enough of them so they don't die of isolation and lack of social stimulation and then find an environment that is close enough and safe enough compared with that which they once roamed.


In any event the most interesting aspects of genetic engineering do not involve making humans or Neanderthals or mammoths. They involve ginning up microbes to do things that we really need doing such as making clean fuel, sucking up carbon dioxide, cleaning fat out of our arteries, giving us a lot more immunity to nasty bacteria and viruses and helping us make plastics and chemicals more efficiently and cheaply.


In trying to make these kinds of microbes, you can kill all you want without fear of ethical condemnation. And if the new bug does not like the environment in which it has to exist to live well, that will be just too darn bad.


The ethical challenge of this kind of synthetic biology is that it can be used by bad guys for bad purposes. Biological weapons can be ginned up and microbes created that only infect people with certain genes that commonly associate with racial or ethnic groups.


Rather than worry about what will happen to real estate values should a new crop of "Flintstones" move in down the street, our public officials, religious groups and ethicists need to get serious about how much regulation the genetic engineering of microbes needs, how can we detect what terrorists might try to use, what sort of controls do we need to prevent accidents and who is going to pay if a bug turns out to cause more harm than good.


We love to think that the key to tomorrow lies in what humanity can be designed or empowered to do. Thus, the fascination with human cloning. In reality, at least for a long time to come, the future belongs to what we can do to design and control microbes. That is admittedly duller, but it is far better to follow a story that is true than one such as Neanderthal cloning that is pure, speculative fantasy.


Follow @CNNOpinion on Twitter.


Join us at Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Arthur Caplan.






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Victim: Bullets so intense 'waves of heat clouded' her vision









David Coleman Headley, the terrorist who played a key planning role in the Mumbai massacre that killed more than 160 people in 2008, was sentenced today in Chicago’s federal court  to 35 years in prison.


U.S. District Judge Harry Leinenweber could have imposed a life sentence but chose the sentence recommended by federal prosecutors who wanted Headley rewarded for his extensive cooperation in spite of his help in the deadly attacks in India.

Before imposing the 35-year prison term, the judge said he wanted to make sure Headley, 52, is "never in a position again to commit a terrorist attack."

Leinenweber was skeptical of a letter that Headley recently wrote to him. "I don't have any faith in Mr. Headley when he says he's a changed person," the judge said.

Headley should be "under lock and key for the rest of his life," Leinenweber said.


In the letter, Headley claimed he was learning to embrace "American values" and coming to grips with how he was convinced to plan terrorist attacks under the guise of religious obligation, Leinenweber said.

"Mr. Headley's letter to the judge expressed his sincere remorse," Robert Seeder, one of Headley's attorney, told reporters after the sentencing. "He did explain in that letter what led him to this and how sorry he was. And I think we'll leave it at that."

During the hearing, another defense attorney told the judge that Headley "literally saved lives" by providing valuable information that "no one else knew" about terrorist activities. "He has never minimized his role," attorney John Theis said. "He has accepted responsibility."

Theis told reporters later he had asked the judge for a specific sentence for Headley, but he declined to reveal the length, saying the request was made under seal.








Before the sentence was handed down, a victim of the terror attack told the judge how surprised she was by the youth of the terrorists who stormed into a hotel’s first-floor cafe while she was eating there.

Linda Ragsdale, a Nashville woman who was shot in the back during the 2008 rampage, recalled wondering how a man as young as her son could kill innocent people.  Holding back tears, Ragsdale described a barrage of bullets so intense that "waves of heat clouded" her vision.

"I know what a bullet could do to every part of the human body," Ragsdale said. "I know the sound of life leaving a 13-year-old child. These are things I never needed to know, never needed to experience."

Ragsdale also read from a statement written by a woman whose husband and daughter were killed at the Oberoi Hotel who said it would be an "appalling dishonor" if Headley was sentenced to the 30 to 35 years in prison recommended by federal prosecutors.

But former U.S. Attorney Patrick Fitzgerald, making a surprise appearance at the sentencing hearing, told Leinenweber he should consider the “unusual nature” of Headley’s cooperation even though Headley was involved in a “very, very heinous crime.”

On the night of his arrest at O’Hare International Airport, Headley “freely admitted” his role in the Mumbai massacre within half an hour of being given his Miranda rights, Fitzgerald said.

Headley, 52,  appearing amid heightened security in Leinenweber’s courtroom, faced up to life in prison. He pleaded guilty to scouting out sites to be targeted in the terrorist attack that killed more than 160 people – including six Americans -- in India’s largest city. He also admitted playing a similar role in an aborted plot to storm a Danish newspaper and behead staffers in retaliation for printing a cartoon of the Prophet Muhammad.

Federal prosecutors have cited Headley’s extraordinary cooperation for seeking a sentence of 30 to 35 years in prison.

Headley, who was arrested at O'Hare as he prepared to fly overseas, detailed the inner-workings of Lashkar-e-Taiba, the Pakistani terror organization that planned the Mumbai attacks. His information led to charges against seven terrorist figures, including his childhood friend from a Pakistani school, Tahawwur Rana, a former Chicago businessman.

Headley was the key witness at the trial of Rana, who was convicted of aiding the Denmark plot and providing support to Lashkar.  Judge Leinenweber sentenced him  last week to 14 years in prison, about half what prosecutors sought.

Headley, an American citizen of Pakistani descent, came to the United States at age 17 and was twice convicted of drug smuggling in the late 1980s. He later agreed to work as an informant for the DEA. Headley also revealed during testimony  at Rana’s trial that there was an overlap between his work for the DEA and his early days with Lashkar.

Headley became involved with Lashkar, a radical group that opposes Indian rule in divided Kashmir, around 2000, attending training camps between 2002 and 2005. He had moved to Chicago by 2009 and reconnected with Rana.

Though embraced by Rana’s family, Headley lived a very different life that included multiple wives and apparently indoctrinating even his children with his ideologies. His 5-year-old son once dropped to the ground in a Chicago park and pretended to fire a weapon after a soccer coach yelled "shoot, shoot!" to him during a game, Headley testified at Rana’s trial.

The charges against Headley and Rana likely represented the most significant terrorism case brought during Fitzgerald’s nearly 11 years as Chicago’s chief federal prosecutor.

Bomb-sniffing dogs checked the coats and bags of all the spectators entering Leinenweber’s courtroom today.  At one point, more than 100 people had lined up to attend the sentencing.


asweeney@tribune.com





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North Korea to target U.S. with nuclear, rocket tests


SEOUL (Reuters) - North Korea said on Thursday it would carry out further rocket launches and a nuclear test that would target the United States, dramatically stepping up its threats against a country it called its "sworn enemy".


The announcement by the country's top military body came a day after the U.N. Security Council agreed to a U.S.-backed resolution to censure and sanction North Korea for a rocket launch in December that breached U.N. rules.


North Korea is not believed to have the technology to deliver a nuclear warhead capable of hitting the continental United States, although its December launch showed it had the capacity to deliver a rocket that could travel 10,000 km (6,200 miles), potentially putting San Francisco in range, according to an intelligence assessment by South Korea.


"We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States," North Korea's National Defence Commission said, according to state news agency KCNA.


North Korea is believed by South Korea and other observers to be "technically ready" for a third nuclear test, and the decision to go ahead rests with leader Kim Jong-un, who pressed ahead with the December rocket launch in defiance of the U.N. sanctions.


China, the one major diplomatic ally of the isolated and impoverished North, agreed to the U.S.-backed resolution and it also supported resolutions in 2006 and 2009 after Pyongyang's two earlier nuclear tests.


Thursday's statement by North Korea represents a huge challenge to Beijing as it undergoes a leadership transition, with Xi Jinping due to take office in March.


China's Foreign Ministry called for calm and restraint and a return to six-party talks, but effectively singled out North Korea, urging the "relevant party" not to take any steps that would raise tensions.


"We hope the relevant party can remain calm and act and speak in a cautious and prudent way and not take any steps which may further worsen the situation," ministry spokesman Hong Lei told reporters at a regular press briefing.


North Korea has rejected proposals to restart the talks aimed at reining in its nuclear capacity. The United States, China, Russia, Japan and the two Koreas are the six parties involved.


"After all these years and numerous rounds of six-party talks we can see that China's influence over North Korea is actually very limited. All China can do is try to persuade them not to carry out their threats," said Cai Jian, an expert on Korea at Fudan University in Shanghai.


Analysts said the North could test as early as February as South Korea prepares to install a new, untested president or that it could choose to stage a nuclear explosion to coincide with former ruler Kim Jong-il's Feb 16 birthday.


"North Korea will have felt betrayed by China for agreeing to the latest U.N. resolution and they might be targeting (China) as well (with this statement)," said Lee Seung-yeol, senior research fellow at Ewha Institute of Unification Studies in Seoul.


U.S. URGES NO TEST


Washington urged North Korea not to proceed with a third test just as the North's statement was published on Thursday.


"Whether North Korea tests or not is up to North Korea," Glyn Davies, the top U.S. envoy for North Korean diplomacy, said in the South Korean capital of Seoul.


"We hope they don't do it. We call on them not to do it," Davies said after a meeting with South Korean officials. "This is not a moment to increase tensions on the Korean peninsula."


The North was banned from developing missile and nuclear technology under sanctions dating from its 2006 and 2009 nuclear tests.


A South Korean military official said the concern now is that Pyongyang could undertake a third nuclear test using highly enriched uranium for the first time, opening a second path to a bomb.


North Korea's 2006 nuclear test using plutonium produced a puny yield equivalent to one kiloton of TNT - compared with 13-18 kilotons for the Hiroshima bomb - and U.S. intelligence estimates put the 2009 test's yield at roughly two kilotons


North Korea is estimated to have enough fissile material for about a dozen plutonium warheads, although estimates vary, and intelligence reports suggest that it has been enriching uranium to supplement that stock and give it a second path to the bomb.


According to estimates from the Institute for Science and International Security from late 2012, North Korea could have enough weapons grade uranium for 21-32 nuclear weapons by 2016 if it used one centrifuge at its Yongbyon nuclear plant to enrich uranium to weapons grade.


North Korea has not yet mastered the technology needed to make a nuclear warhead small enough for an intercontinental missile, most observers say, and needs to develop the capacity to shield any warhead from re-entry into the earth's atmosphere.


North Korea gave no time-frame for the coming test and often employs harsh rhetoric in response to U.N. and U.S. actions that it sees as hostile.


The bellicose statement on Thursday appeared to dent any remaining hopes that Kim Jong-un, believed to be 30 years old, would pursue a different path from his father, Kim Jong-il, who oversaw the country's military and nuclear programs.


The older Kim died in December 2011.


"The UNSC (Security Council) resolution masterminded by the U.S. has brought its hostile policy towards the Democratic Peoples Republic of Korea (North Korea) to its most dangerous stage," the commission was quoted as saying.


(Additional reporting by Christine Kim in SEOUL, Ben Blanchard and Sui-Lee Wee in Beijing; Writing by David Chance; Editing by Raju Gopalakrishnan and Ron Popeski)



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S&P up for sixth day, Apple slip could halt rally

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


The S&P was just 4.7 percent from its all-time closing high as IBM's and Google's earnings, released after Tuesday's close, followed on the heels of stronger U.S. economic data.


"People were kind of nervous about earnings coming into this quarter but numbers have shown so far strength in earnings," said King Lip, chief investment officer at Baker Avenue Asset Management in San Francisco.


But Apple , still the largest U.S. publicly traded company, fell 8 percent in extended trading after sales of its flagship iPhone came in below analyst targets and quarterly revenue slightly missed Wall Street expectations.


"One thing that stands out is the company's ballooning balance sheet, where they now have $137 billion dollars in cash and investments," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut. "You've got to wonder when they're going to put some more of that to work."


Declining issues beat advancers in both the NYSE and Nasdaq during regular market hours, in a sign the market's rally may be overstretched. The broad Russell 2000 index <.rut> closed the day down 0.3 percent after earlier hitting and intraday historic high just below 900 points.


Shares in IBM Corp , the world's largest technology services company, climbed 4.4 percent during regular market hours to $204.72, providing just about all of the Dow's 67-point gain.


Also helping the tech sector was a 5.5 percent jump in Google Inc to $741.50. The Internet search company reported its core business outpaced expectations and revenue was higher than expected.


The S&P technology sector <.splrct> rose 1.2 percent.


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


The benchmark S&P 500 is a mere 0.35 percent away from hitting 1,500, a level not seen since December 12, 2007.


S&P 500 futures fell 4.1 points, or 0.3 percent, while Nasdaq 100 futures fell 20 points or 0.7 percent.


Netflix shares soared 32 percent, above $136, after the video subscription service said it added subscribers in the United States and abroad and posted a quarterly profit.


LED maker Cree Inc jumped 22 percent to $40.85 after it forecast a higher-than-expected third-quarter profit, and reported results above analysts' estimates.


Upscale leather goods maker Coach Inc plunged 16.4 percent to $50.75 after reporting sales that missed expectations.


Clearing a market hurdle, the U.S. House of Representatives passed a Republican-led plan to extend the country's borrowing authority until mid May. This delays a confrontation in Congress similar to one in 2011, which generated a stalemate that triggered the first-ever U.S. debt rating downgrade.


Thomson Reuters data through Wednesday showed that of the 99 S&P 500 companies that have reported earnings so far, 67.7 percent have topped expectations, above the 65 percent average beat over the past four quarters.


Overall, S&P 500 fourth-quarter earnings rose 2.8 percent, according to Thomson Reuters data. That estimate is above the 1.9 percent forecast at the start of earnings season.


Top U.S. manufacturers sounded a confident note about their expectations for 2013 on Wednesday as fears of the year-end "fiscal cliff" faded into memory.


In the regular session, about 6.1 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the 2012 daily average of about 6.45 billion.


On the NYSE, roughly 15 issues fell for every 14 that rose and on Nasdaq seven declined for every five gainers.


(Reporting by Rodrigo Campos, additional reporting by Caroline Valetkevitch; Editing by Nick Zieminski and Diane Craft)



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Seau's family sues NFL over brain injuries


Add Junior Seau's family to the thousands of people who are suing the NFL over the long-term damage caused by concussions.


Seau's ex-wife and four children sued the league Wednesday, saying the former linebacker's suicide was the result of brain disease caused by violent hits he sustained while playing football.


The wrongful death lawsuit, filed in California Superior Court in San Diego, blames the NFL for its "acts or omissions" that hid the dangers of repetitive blows to the head. It says Seau developed chronic traumatic encephalopathy (CTE) from those hits, and accuses the NFL of deliberately ignoring and concealing evidence of the risks associated with traumatic brain injuries.


Seau died at age 43 of a self-inflicted gunshot in May. He was diagnosed with CTE, based on posthumous tests, earlier this month.


An Associated Press review in November found that more than 3,800 players have sued the NFL over head injuries in at least 175 cases as the concussion issue has gained attention in recent years. The total number of plaintiffs is 6,000 when spouses, relatives and other representatives are included.


Scores of the concussion lawsuits have been brought together before U.S. District Judge Anita B. Brody in Philadelphia.


"Our attorneys will review it and respond to the claims appropriately through the court," the NFL said in a statement Wednesday.


Helmet manufacturer Riddell Inc., also is a defendant, with the Seau family saying Riddell was "negligent in their design, testing, assembly, manufacture, marketing, and engineering of the helmets" used by NFL players. The suit says the helmets were unreasonably dangerous and unsafe.


Riddell issued a statement saying it is, "confident in the integrity of our products and our ability to successfully defend our products against challenges."


Seau was one of the best linebackers during his 20 seasons in the NFL, retiring in 2009.


"We were saddened to learn that Junior, a loving father and teammate, suffered from CTE," the family said in a statement released to the AP. "While Junior always expected to have aches and pains from his playing days, none of us ever fathomed that he would suffer a debilitating brain disease that would cause him to leave us too soon.


"We know this lawsuit will not bring back Junior. But it will send a message that the NFL needs to care for its former players, acknowledge its decades of deception on the issue of head injuries and player safety, and make the game safer for future generations."


Plaintiffs are listed as Gina Seau, Junior's ex-wife; Junior's children Tyler, Sydney, Jake and Hunter, and Bette Hoffman, trustee of Seau's estate.


The lawsuit accuses the league of glorifying the violence in pro football, and creating the impression that delivering big hits "is a badge of courage which does not seriously threaten one's health."


It singles out NFL Films and some of its videos for promoting the brutality of the game.


"In 1993's 'NFL Rocks,' Junior Seau offered his opinion on the measure of a punishing hit: 'If I can feel some dizziness, I know that guy is feeling double (that)," the suit says.


The NFL consistently has denied allegations similar to those in the lawsuit.


"The NFL, both directly and in partnership with the NIH, Centers for Disease Control and other leading organizations, is committed to supporting a wide range of independent medical and scientific research that will both address CTE and promote the long-term health and safety of athletes at all levels," the league told the AP after it was revealed Seau had CTE.


The lawsuit claims money was behind the NFL's actions.


"The NFL knew or suspected that any rule changes that sought to recognize that link (to brain disease) and the health risk to NFL players would impose an economic cost that would significantly and adversely change the profit margins enjoyed by the NFL and its teams," the Seaus said in the suit.


The National Institutes of Health, based in Bethesda, Md., studied three unidentified brains, one of which was Seau's, and said the findings on Seau were similar to autopsies of people "with exposure to repetitive head injuries."


"It was important to us to get to the bottom of this, the truth," Gina Seau told the AP then. "And now that it has been conclusively determined from every expert that he had obviously had 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."


In the final years of his life, Seau went through wild behavior swings, according to Gina and to 23-year-old son, Tyler. There also were signs of 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."


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Kerry divests holdings in Cdn oil companies amid conflict of interest concerns






WASHINGTON – John Kerry and his wife have agreed to divest holdings in a Canadian oil company, as well as dozens of other investments, in an effort to avoid conflicts of interest as the Massachusetts senator prepares to become America’s next secretary of state.


The Canadian Press reported last week that Kerry had as much as US$ 750,000 invested in Suncor, a Calgary-based oil company whose CEO has urged the Obama administration to greenlight TransCanada’s Keystone XL pipeline.






But federal ethics officials, acting independently of the White House, have determined the Suncor (TSX:SU) stock poses no conflict of interest threats. Kerry has divested of as much as $ 31,000 in Cenovus Energy, another Calgary firm that has pushed for Keystone XL approval.


Financial disclosure records show that Kerry and his wife, Heinz ketchup heiress Teresa Heinz Kerry, hold a vast array of international investments that could have placed the senator in an ethical quandary.


Kerry’s office said last week that many of those investments were in blind trust and are managed by an independent trustee. The senator is one of the wealthiest lawmakers on Capitol Hill with an estimated net worth of $ 193 million.


The investments nonetheless raised alarm bells among American environmentalists given the State Department will make a decision this year on the fate of the Keystone pipeline. Kerry is expected to breeze through his Senate confirmation hearings on Thursday.


“I am committed to the highest standards of ethical conduct for government officials,” Kerry wrote in the agreement with the State Department’s ethics office.


“I will not participate personally and substantially in any particular matter that has a direct and predictable effect on my financial interests or those of any person whose interests are imputed to me, unless I first obtain a written waiver.”


Environmentalists had called on Kerry last week to divest of all the Canadian oil company’s holdings.


Keystone is back on the hot seat in the U.S. capital this week, in part because U.S. President Barack Obama spoke out on the need to confront climate change in his second inaugural address on Monday.


The president’s forceful repudiation of climate change skeptics has prompted the U.S. environmental movement to urge the president to back up his rhetoric by nixing Keystone XL, the $ 7 billion project that would carry bitumen extracted from Alberta’s carbon-intensive oilsands to the U.S. Gulf Coast.


“We will respond to the threat of climate change, knowing that the failure to do so would betray our children and future generations,” Obama said on Monday.


“Some may still deny the overwhelming judgment of science, but none can avoid the devastating impact of raging fires, and crippling drought, and more powerful storms.”


White House press secretary Jay Carney has faced tough questions this week about whether those remarks bode badly for Keystone and what precisely Obama intends to do on the climate change front.


Kerry’s longtime devotion to environmental issues is also making pipeline proponents nervous.


The senator has long been one of the most fierce climate hawks on Capitol Hill, leading unsuccessful efforts three years ago to push greenhouse gas legislation through Congress.


As secretary of state, he’ll have to decide whether approving the pipeline is in the national interest of the United States.


In the aftermath of Obama’s inaugural address, 53 senators — more than half in the upper chamber — sent the president a letter on Wednesday urging him to approve Keystone XL.


Their bipartisan letter was sent a day after Nebraska Gov. Dave Heineman, previously an opponent of the pipeline, said he was satisfied that TransCanada’s (TSX:TRP) altered route for the pipeline skirts an environmentally fragile region of his state.


“Because (Keystone XL) has gone through the most exhaustive environmental scrutiny of any pipeline in the history of this country and you already determined that oil from Canada is in the national interest, there is no reason to deny or further delay this long-studied project,” wrote the senators, lead by Republican John Hoeven and Democrat Max Baucus.


“Nebraska has now addressed the outstanding concerns you raised when you denied the permit, and we therefore urge to finish expeditiously the review process and approve the pipeline.”


Obama raised concerns about the pipeline’s original path when he rejected TransCanada’s application last year.


Gary Doer, Canada’s ambassador to the United States, said the secretary of state must make a Keystone decision based on facts, not emotion.


“The bottom line is, whether it’s Hillary Clinton or John Kerry at the State Department —they have the reports,” Doer said Wednesday. “Is this in the national interest of the United States? That’s the question.”


Energy News Headlines – Yahoo! News




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STORY HIGHLIGHTS


  • Anthony Cordesman: Questions for Hillary Clinton on Benghazi attack inevitable, important

  • But political blame game useless, a discouraging message to diplomats, military advisers, he says

  • He says in hindsight, warnings, pleas for support mistakenly make crisis seem obvious

  • Writer: U.S. must focus forward: encourage, support risk-takers doing crucial work in field




Editor's note: Anthony H. Cordesman holds the Arleigh A. Burke Chair in Strategy at the Center for Strategic and International Studies. Follow CSIS on Twitter.


(CNN) -- Politics are politics, and partisan congressional challenges over the death of Ambassador Chris Stevens and other Americans in Benghazi, Libya, last September were inevitable.


But while some of the questions Secretary of State Hillary Clinton was asked in her appearance before the Senate Foreign Relations Committee bordered on politics at their worst, some represented democracy at its best: A legitimate challenge of how the government works. The fact is, we do need to ask serious questions about the way our diplomats function, how they are deployed and protected.


In her responses, Clinton took responsibility, as the top official in every department always must. The question now, however, is what, if anything, will we really learn from the events that led to the deaths of Stevens and his colleagues?



Anthony H. Cordesman

Anthony H. Cordesman



Do we actually learn something from their courage and sacrifice, and the similar experience of other American diplomats and officers that have faced similar attacks in the past? Or do we go on playing a pointless blame game, creating a climate that discourages our diplomats, U.S. military advisory teams and intelligence officers from taking necessary risks -- and relies even more on fortifying our embassies.


Three lessons here. The first: Virtually every post mortem that relies on the blame game has the same result. There is always someone who asked for more resources and warned of the risk before the event. There are always enough intelligence indicators so that once you go back -- knowing the pattern of actual events -- it becomes possible to predict the past with 20-20 hindsight.


The problem is that the post mortems and hearings tend to be useless. Every prudent security officer has always asked for more; the indicators that could provide warning with 20-20 hindsight will still be buried in a flood of other reporting that warns of crises that don't take place; U.S. officials will still have to deal with what intelligence experts call "noise" -- the vast amount of reporting and other data that make it impossible to sort out the right information until the event actually occurs and the patterns are known. All of this makes it hard to know what request or warning ever matters.


Opinion: Algeria hostage crisis shows jihadists on rise


Yes, intelligence and warning can always be improved if the post mortem is realistic and objective. But the resulting improvements will never be enough. No one will ever assess all the risks correctly, U.S. diplomats and other Americans will be vulnerable when they operate in a hostile environment, and risk-taking will remain inevitable.



The second lesson is that we cannot deal with crises like the political upheavals in the Arab world, or the more direct threats that countries like Iran and North Korea can pose, unless our diplomats and military advisers take risks -- and more casualties -- in the process.


Stevens and those around him did what had to be done. These are the teams that can help lead unstable countries towards democracy and stability. They are the crucial to our counterterrorism efforts in the field and to building up the military security capabilities of developing states. They are key to uniting given factions, creating effective governance, and persuading states to move toward development and greater concern for human rights.


They can only be effective if they are on the scene, work with the leaders and factions involved, and often go into harms way where there are terrorist and military threats. Like Stevens, they cannot wait for perfect security, stay in a safe area, or minimize risks and deal with the realities of Libya, filled with local power struggles, extremist elements and potential threats.


We need risk-takers. We need them in any country that is going through the kind of upheavals taking place in Libya, as well as in countries where our enemies operate, and semi-war zones like Afghanistan, Iraq, Somalia, Syria, and Yemen. We need diplomats, U.S. military advisory teams, and intelligence officers that reach far beyond our embassies and go into high risk zones. We need to reward and honor those risk-takers, not those who shelter in safety and avoid the risks they should take or fear their career will be damaged if anyone is killed or hurt.


Opinion: Algeria crisis is a wakeup call for America








The third lesson is that we do need to steadily strengthen our ability to provide secure mobility, better intelligence, better communications, and better protection for those diplomats, U.S. military advisory teams and intelligence officers. We need to be able to better provide emergency help to those American NGO personnel and businessmen who take similar risks.


We need both an administration and a Congress that look beyond the blame game and understand that some things are worth spending money on. We need them to understand that what we once called the Arab Spring is clearly going to be the Arab Decade, and we face different but equally real risks in the field in Asia, Africa, and Latin America.


It is far better -- and cheaper even, in the medium term -- to fund strong U.S. country teams, military advisers, counterterrorism teams and development efforts than to let nations collapse, to let extremists take over, to lose allies, and see American NGOs and businesses unable to operate.


We need to see what new methods and investments can protect our people in the field and reduce the risks they should be taking. The answer may be special communications, intelligence system, helicopters and armored vehicles, emergency response teams and new career security personnel to replace contractors and foreign nationals.


What the answer is not is partisan blame, risk avoidance, punishing those who do take risks for the result, and failing to make the improvements in security for risk takers -- while building larger fortress embassies. If you want to honor the Americans lost in the line of duty, focus on the future and not the past.


The opinions expressed in this commentary are solely those of Anthony Cordesman






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