Stock futures signal losses; all eyes on Apple

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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


(Reporting by Blaise Robinson)



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Djokovic advances to Australian Open final


MELBOURNE, Australia (AP) — Two-time defending champion Novak Djokovic advanced to his third consecutive Australian Open final with a 6-2, 6-2, 6-1 win over No. 4-seeded David Ferrer on Thursday night.


The top-ranked Djokovic was in dominating form, hitting 30 crisp winners in the 1-hour, 29-minute match. He is aiming to be the first man in the Open era to win three consecutive Australian titles.


On Sunday, he'll meet the winner of Friday's semifinal between No. 2-ranked Roger Federer, a four-time Australian champion, and U.S. Open winner Andy Murray, who is ranked No. 3.


Djokovic, who is now unbeaten in five Grand Slam head-to-heads with Ferrer, allowed his opponent only four points in the first four games of the last set to strangle any chance of a comeback.


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Iran nuclear power plant stokes worries closer to home, too






DUBAI (Reuters) – For the Iranian government, the Bushehr nuclear power plant is proof to a world worried about Tehran’s intentions that its atomic program is aimed only at securing a modern, clean energy source for its people.


But for villagers living next to the facility, as well as Arab capitals nearby, the plant poses a potential danger that is less geopolitical and more immediate: the risk of contamination.






“We are extremely worried about our health and the health of our families,” residents of the coastal villages of Heleylah and Bandargah wrote in a statement published on a blog in 2010.


“According to international standards, the distance between a nuclear power plant and the nearest residence must be at least one kilometer … but the distance between the village of Heleylah and this power plant is just six meters!”


Thousands of people live in the two villages 18 km (11 miles) south of the Gulf city of Bushehr, many of them making their living as service workers at the plant.


Residents living near Iran’s nuclear-related sites told Reuters in interviews by phone and over the Internet that the government stifles debate on the pros and cons of the program and where its sites should be located, and has not addressed their questions about what would happen in an emergency.


Iran’s Arab neighbors are also nervous. Kuwait, Bahrain, Saudi Arabia, Qatar, Iraq and the United Arab Emirates all occupy coastline across from Bushehr, and the plant is closer to five Arab Gulf capitals than it is to Tehran.


Kuwaiti emir Sheikh Sabah al-Ahmed al-Sabah said at a December meeting of the Gulf Cooperation Council that Iran should cooperate with the International Atomic Energy Agency to “ensure the safety of the region’s states and its people from any effect of radioactivity”.


Iran has repeatedly maintained there are no grounds for concern, a position backed up by Russian state nuclear corporation Rosatom, whose subsidiary Atomstroyexport built the plant and plans its formal handover to Iran this year.


But a few recent incidents, as well as a lack of transparency, continue to worry both neighbors and experts in global nuclear safety, particularly after the disaster at the Fukushima power plant in Japan, which was caused by an earthquake and tsunami.


Like Japan, Iran is on an earthquake fault line, although the risk of a tsunami in the Gulf is seen as slim.


“It is difficult to have confidence that Bushehr will meet the very high safety standards that should apply to every nuclear power plant in the world in the post-Fukushima era,” Edwin Lyman, of the Union of Concerned Scientists, said in an e-mail to Reuters.


NO CONVENTION


Iran is the only country operating a nuclear power plant that does not belong to the 75-nation Convention on Nuclear Safety, negotiated after the 1986 nuclear disaster in Chernobyl which contaminated wide areas and forced about 160,000 Ukrainians from their homes.


Inspectors from the IAEA, the U.N. nuclear watchdog, visit the Bushehr plant occasionally to check the nuclear material kept there, but not to conduct safety inspections. The U.N. agency has wider powers when it comes to preventing the spread of nuclear arms than it has to ensure reactor safety in member states.


Western officials and the United Nations have urged Iran to join the safety forum, designed to boost safety through peer review and mutual oversight.


There are some indications of progress.


Iran’s ambassador to the United Nations, Mohammad Khazaee, wrote in a letter to the New York Times on January 15 that Iran has “started the internal legal procedures to accede to the Convention on Nuclear Safety”.


In another step that could help allay concerns, Iran has officially requested the IAEA to send an international expert mission to review operational safety at Bushehr, according to a schedule posted on the UN agency’s website. Such missions are voluntary for IAEA member states.


One problem is that Iran’s nuclear regulatory authority, INRA, is not considered independent by the IAEA because it is contained within the Atomic Energy Organisation of Iran, Iran’s nuclear agency, Lyman said.


“Given the overheated political context of Iran’s nuclear facilities, the lack of a regulator independent of the agency for development and promotion of nuclear energy raises questions about its effectiveness,” he said.


The United States and some other Western countries believe Iran is trying to develop nuclear weapons and have imposed harsh financial and trade sanctions to try to stop it. Iran denies that is its intent.


But Bushehr is not considered a major weapons proliferation risk by Western states, who are focused on sites where Iran has enriched uranium beyond levels needed to fuel power plants.


An IAEA mission conducted a review of safety regulations at Bushehr in 2010 and recommended that Iran establish INRA as an independent authority, hire more expert technical staff and replace its current ad hoc regulations with a comprehensive national system.


LONG DELAYS


The 1,000-megawatt Bushehr plant, which was connected to the national grid only in September 2011, has had a long and chequered history.


Germany’s Siemens started construction in 1975 during the reign of the U.S.-backed Shah, but work stopped after the 1979 Islamic Revolution and it was damaged by air raids in the Iran-Iraq war of the 1980s.


After Russian engineers took over the project in the 1990s, the launch was further delayed by disagreements between Tehran and Moscow as well as technical problems. For example in February 2011, concerns that metal particles from the aging parts used in the reactor core may have contaminated the fuel prompted the fuel’s removal.


In October 2012, fuel had to be unloaded again and the plant shut down. A Russian nuclear industry source told Reuters in November the shutdown was due to the discovery of stray bolts beneath the fuel cells. Experts said such debris can cause problems by damaging fuel rods, blocking coolant channels and causing overheating, or clogging pipes and pumps.


The plant is now back to 100 percent capacity, Iran said in January.


Iran, as well as officials of Rosatom and its subsidiaries, have repeatedly said the delays at Bushehr were in part due to the need to ensure safety.


“We have always taken every step to ensure safety and are prepared to continue to work with the operator to do everything that is necessary to ensure safety,” Rosatom spokesman Sergei Novikov told Reuters.


IAEA chief Yukiya Amano said in December the procedure was not of particular concern.


“They are taking necessary measures,” he said on a visit to Washington. “Removing the fuel is already a measure to remedy the situation, and we have good communication on this issue.”


INFORMATION BLACKOUT


Malcolm Grimston, a nuclear energy expert at Imperial College, London, agreed the Bushehr plant should not be a safety concern as long as proper inspections have been carried out.


But it was important that for any new plant, authorities “put quite a lot of effort into building communication links with local people and letting them understand the context in which the plant operates,” he told Reuters.


The nuclear programme is highly politicized in Iran and few officials publicly question its validity.


When emergency official Gholamreza Masoumi spoke to the Mehr news agency in November about health problems among people near Isfahan’s Uranium Conversion Facility and the importance of preparing agencies for a nuclear accident, his comments were taken down from the agency’s website and denied by other officials.


“It’s not totally clear (to us) if the plant has started or not. No one knows what’s going on,” said Saeed, 22, a college student from Heleylah who, like other Iranians interviewed, did not want his last name used so he could speak freely.


The Bushehr plant has brought some good to the people of Heleylah, Saeed said. Locals can find work as janitors, cooks and other service workers at the plant, and they have access to the hospital built on site.


But many residents feel stuck, said Hassan, 62, who was raised in Heleylah and now lives in the city of Bushehr.


The government has drawn up plans to move residents, but compensation has still not been agreed.


“The villagers want to go to a place where they won’t have trouble finding work, and near the center of the province,” he said. “But because there is no appropriate place for them to go, and the government hasn’t provided enough money for them to move, people are in limbo.”


Saeed said although many in Heleylah would like to leave the area, only about 10 percent have done so.


“Those who could afford to leave, have left.”


(Additional reporting by Fredrik Dahl in Vienna and Steve Gutterman in Moscow; Editing by Sonya Hepinstall)


Energy News Headlines – Yahoo! News





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Benghazi blame-game is useless



























































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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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Bulls rally to beat Pistons 85-82









As the United Center rocked and the Bulls celebrated Marco Belinelli's go-ahead, three-point play with 7.5 seconds left, Joakim Noah remained down in the photographer's pit along the baseline, cameras and cheerleaders all around him.


"I didn't really see the play," Noah said. "I had the cheerleaders' pom-poms in my face."


His teammates saw it, which is why they were celebrating the shot that sealed the Bulls' stirring 85-82 comeback over the Pistons, their 17th straight victory in this series. It marked the second time in just more than a month the Bulls erased a 17-point deficit against the Pistons to prevail.








And yet Noah, who had authored, really, the play of the season — one that defines the heart and hustle that has the Derrick Rose-less Bulls on pace for 50 victories now that the midway point has been reached — remained down.


"We were over there celebrating and he was still knocked over by the cheerleaders," said Nate Robinson, who kick-started the rally with nine straight points early in the fourth. "We were like, 'Oh, yeah, we have to go help him up.' But that play shows how hard Jo works. He never gives up."


Noah smiled, clearly relishing the opportunity to tweak his teammates.


"Damn, it took forever, right?" he said of the delay.


All's well that ends well, right?


But make sure to find a replay of Noah's hustle, which came off Belinelli's bricked jumper. As Noah tumbled into cameras and cheerleaders, Belinelli cut to the basket, grabbed the fruit of Noah's effort and laid it in as Rodney Stuckey fouled him.


"I scored, but the credit goes to Jo," said Belinelli, who scored his second game-winner in four games.


Coach Tom Thibodeau just shook his head.


"Quite frankly, I don't know he got to it," Thibodeau said. "It was an incredible play."


The Bulls then watched tying 3-point attempts from Tayshuan Prince and Stuckey rim out as time expired.


"I stayed with the play," Noah said. "The basketball gods were on our side. It's not really a great play because if Detroit gets it, it's a four-on-five fast break the other side. Fortunately, we got it. "


Robinson's boundless energy can delve into extracurricular emotion, but there's no denying he jump-started the comeback. Robinson keyed a 12-2 run to open the fourth with nine straight points and a dish for a fast-break dunk from Butler, who tied his career-highs with 18 points and nine rebounds.


Butler, starting again for the injured Luol Deng, played all but 91 seconds and overcame a 1-for-8 start. He also hit a huge 3-pointer — the Bulls missed their first 10 and made just 3 of 14 — for an 82-80 lead before Jason Maxiell tied the game with 29.4 seconds left off a defensive breakdown.


"Jimmy just kept working the game," Thibodeau said. "He never got down. He kept battling and battling."


Robinson finished with 11 points.


"That's Nate. He made a lot of big-time plays for us," Thibodeau said. "He's not afraid. I respect that about him.


"The group that started the fourth quarter played with energy, got some stops and got us going.


Noah played 45 minutes with 10 points and 18 rebounds.


"We just kept saying, 'We're going to rally together,'" Butler said. "That's what this team is all about."


kcjohnson@tribune.com


Twitter @kcjhoop





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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.


"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 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.


Its long-range rockets are not seen as capable of reaching the United States mainland and it is not believed to have the technology to mount a nuclear warhead on a long-range missile.


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)



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Stock index futures signal lower Wall Street open

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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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



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Williams loses Stephens; Azarenka into semis


MELBOURNE, Australia (AP) — Serena Williams was only thinking out loud when she muttered that this Australian Open had been "the worst two weeks."


Not long after a courtside microphone picked up those comments during her quarterfinal with 19-year-old American Sloane Stephens, things got a whole lot worse.


Stephens outplayed Williams, whose movement and serves had been slowed by a back injury, and beat the 15-time Grand Slam champion 3-6, 7-5, 6-4. It was Williams' first loss since Aug. 17, and her first defeat at a Grand Slam tournament since last year's French Open.


Williams' downer of a Grand Slam Down Under started badly when she turned her right ankle in her opening match at Melbourne Park.


"I've had a tough two weeks between the ankle ... and my back, which started hurting," Williams said. "A lot of stuff."


While Williams packed for home — she and sister Venus have also lost in doubles — Stephens advanced to a semifinal Thursday against defending champion Victoria Azarenka.


The top-seeded Azarenka beat Svetlana Kuznetsova 7-5, 6-1 in the early quarterfinal at Rod Laver Arena. Maria Sharapova, who has lost only nine games in five matches, plays Li Na in the other semifinal Thursday.


On the men's side, Andy Murray advanced to the semis with a 6-4, 6-1, 6-2 victory over Jeremy Chardy. Murray, the U.S. Open champion, will play the winner of Wednesday's late quarterfinal between No. 2 Roger Federer and No. 7 Jo-Wilfried Tsonga.


The other semifinal has defending champion Novak Djokovic taking on No. David Ferrer on Thursday.


Williams hurt her back in the eighth game of the second set and things got progressively worse. She yelled at herself on several occasions, and smashed a racket into the court, earning a $1,500 fine from tournament officials.


"I was running to the net for a drop shot," Williams said, describing the lead up to her injury. "As I went to hit it, it was on the backhand. I even screamed on the court. I totally locked up after that."


She reiterated after the match that her injuries had made this Australian Open difficult for her.


"Absolutely, I'm almost relieved that it's over because there's only so much I felt I could do," she said. "I've been thrown a lot of (curve) balls these two weeks."


Stephens has been, too, but has coped well, and the magnitude of her accomplishment only hit her while she was warming down after the match.


"I was stretching, and I was like, 'I'm in the semis of a Grand Slam.' I was like, 'Whoa. It wasn't as hard as I thought,'" she said. "To be in the semis of a Grand Slam is definitely a good accomplishment. A lot of hard work."


The No. 29-seeded Stephens hadn't been given much of a chance of beating Williams, who lost only four matches in 2012 and was in contention to regain the No. 1 ranking at the age of 31.


Williams' latest winning streak included a straight-set win over Stephens at the Brisbane International this month.


Stephens wasn't even sure that she could beat Williams until she woke up Wednesday.


"When I got up, I was like, 'Look, Dude, like, you can do this.' Like, 'Go out and play and do your best," she said.


Williams walked around the net to congratulate Stephens, who then clapped her hand on her racket and waved to the crowd, a look of disbelief on her face.


Stephens has said she had a photo of Williams in her room when she was a child, and had long admired the Williams sisters.


"This is so crazy. Oh my goodness," Stephens said, wiping away tears in her post-match TV interview. "I think I'll put a poster of myself (up) now."


Azarenka, with her most famous fan sitting in the crowd wearing a shirt reminding her to keep calm, overcame some early jitters to beat Kuznetsova.


After dropping serve in a long fourth game that went to deuce 10 times, Azarenka recovered to dominate the rest of the match against Kuznetsova, a two-time major winner who was floating dangerously in the draw with a No. 75 ranking as she recovers from a knee injury.


Azarenka's American rapper friend, Redfoo, returned from a concert in Malaysia to attend Wednesday's quarterfinal match.


Wearing a red sleeveless T-shirt that read "Keep Calm and Bring Out the Bottles," the name of his next single, Redfoo stood, clapped and yelled "Come on, Vika!" during the tight first set.


Williams' loss was a boost for Azarenka, who lost all five head-to-heads against the American in 2012 and is 1-11 in their career meetings.


The 25-year-old Murray had his service broken for only the second time while serving for the match. But he broke back immediately to clinch a quarterfinal victory.


Murray discounted comments in the British media that he was upset with an almost full schedule of day matches while Federer was given featured cooler night slots on Rod Laver Arena.


"The scheduling for me is part and parcel of playing in really any tennis tournament," Murray said. "It's tough to make the schedule perfect for every single player."


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The Citizen Science of Climate Change: We are not bystanders






Superstorm Sandy prior to the 2012 Presidential election put climate change on the mind of many voters. Earlier this month, a Federal Advisory Committee of 13 collaborating agencies released a Draft Climate Assessment Report for public review. The data show the climate is already changing: rising sea-level, ocean acidification, damage to infrastructure, and impacts on human health, water resources, and agriculture. Because the data make it hard to remain optimistic, many were thankful to hear Obama say at his inauguration, “We’ll respond to the threat of climate change, knowing that the failure to do so would betray our children and future generations.”One overlooked aspect of the data, however, can also give us reason for optimism. Although credit for the report is given to 240+ scientists and engineers who compiled the evidence about global climate change, the backbone of the knowledge presented arises from efforts of unsung (and unwitting) heroes: people who collect weather data. The coordinated, cross-generational, collective nature of the public data-collection efforts reveals an unexploited strength in our society that should give us hope.It’s often unclear where climate change data come from; like many others, I had assumed it’s all generated by satellites circling the earth and buoys floating in the ocean. While those technologies play a role, data on the key variables of temperature and precipitation have been, and still are, collected by otherwise ordinary people. Thus, evidence for climate change is not because “scientists say so”, but rather because the collective observations of people show we have shorter, warmer winters, and longer, hotter summers, periods of extreme heat lasting longer than any living American can recall, and rain in extremes: either heavier downpours or droughts. Separately, people across the country have noted these observations in their backyards. Scientists have pooled the observations to reveal widespread patterns.The new assessment is an impressive synthesis of the most up-to-date studies in the peer-reviewed literature about climate change. It details negative impacts in a wide array of economic sectors, from maple syrup in Vermont to oysters in Washington. Each study that involved rain, snow, and temperature measurements drew those data from the U.S. Cooperative Weather Observer Program: a citizen science network.The Program is not often referred to as citizen science, probably in part because it started generations before the term was coined, but that’s what it is.Public contributions of weather measurements date as far back as the availability of instruments to measure weather. When founding our nation, Thomas Jefferson wanted to deputize one person in every county in Virginia to collect temperature and wind data twice a day. The Revolutionary War pre-empted these plans.The concept kept recurring. In the late 1840s, Matthew Maury wanted farmers to collect weather data and share them via the telegraph so that his naval office could aggregate reports and make forecasts. He adapted the idea from a maritime system he coordinated, whereby weather information crowdsourced from merchant ships was turned into wind and current maps that quickened ocean travel. The Civil War pre-empted his land-based weather plans.In 1870, President Grant formed an agency to coordinate a volunteer weather observer program. The program eventually became the U.S. Cooperative Weather Observer Program of the National Weather Service. Since then, gathering standardized weather data has been a tradition in many families at 12,000 sites in the U.S. Take a look at the National Weather Service newsletters honoring long-term service and you’ll see Terrell Phillips of Douglas, Georgia, who took over observations after his father passed away so that their weather station has operated for a continuous 50 years. You’ll see Sara Waddell of Woodruff, South Carolina, who received a 25-year length of service award, following in her parents’ footsteps. Her mother had observed since 1956 and her father since 1987. And we can thank Robert Hoppe of Broadwater County, Montana, for 40 years of service; he comes from a farming family that has recorded since 1939. Together, people contribute about one million volunteer hours annually. A core of about 1,200 of these sites has continuous history ideal for climate change research.It would be nearly impossible for me to accept the burden of the report’s conclusions – climate change is not only real, but accelerating – if it weren’t for the one glimmer of hope that I see in all knowledge coproduced via citizen science: the power of the coordinated, collective efforts of curious, dedicated people. The discovery and understanding of global climate change, which has been so hotly debated, was possible because we are not a country of bystanders. We are participators. When the weather service asked for help, people helped. Because of participation, we have an inkling of the threats that we face.I don’t know the solutions to global climate change. You probably don’t either. But any solutions will certainly involve collective action. It was our uncoordinated collective action, in the form of burning fossil fuels, that has made the climate change problem. And it was our coordinated collected action that informed us of the problem. We all will be forced to deal with climate change, so the question is: which type of collective action do we prefer? The coordinated, dedicated, collective efforts embedded in family traditions and daily practices as seen in citizen science illustrate the attributes and possibilities we need to find the best path forward. As President Obama said, we won’t let down our children or future generations–indeed, we’ll teach them to participate.Images: NOAA Photo Library.


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2013 could be 'climate game-changer'




An ice sculpture entitled 'Minimum Monument' by Brazilian artist Nele Azevedo outside Berlin's Concert Hall, September 2, 2009.




STORY HIGHLIGHTS


  • The "neglected" risk of climate change seems to be rising to the top of leaders' agendas

  • Extreme weather events are costing the global economy billions of dollars each year

  • Gas can be an important bridge to a lower carbon future but it's not the answer

  • More investment in renewable energy is needed, with fewer risks




Editor's note: Andrew Steer is President and CEO of the World Resources Institute, a think tank that works with governments, businesses and civil society to find sustainable solutions to environmental and development challenges.


(CNN) -- As leaders gather for the World Economic Forum in Davos, signs of economic hope are upon us. The global economy is on the mend. Worldwide, the middle class is expanding by an estimated 100 million per year. And the quality of life for millions in Asia and Africa is growing at an unprecedented pace.


Threats abound, of course. One neglected risk -- climate change -- appears to at last be rising to the top of agendas in business and political circles. When the World Economic Forum recently asked 1,000 leaders from industry, government, academia, and civil society to rank risks over the coming decade for the Global Risks 2013 report, climate change was in the top three. And in his second inaugural address, President Obama identified climate change as a major priority for his Administration.



Andrew Steer

Andrew Steer



For good reason: last year was the hottest year on record for the continental United States, and records for extreme weather events were broken around the world. We are seeing more droughts, wildfires, and rising seas. The current U.S. drought will wipe out approximately 1% of the U.S. GDP and is on course to be the costliest natural disaster in U.S. history. Damage from Hurricane Sandy will cost another 0.5% of GDP. And a recent study found that the cost of climate change is about $1.2 trillion per year globally, or 1.6% of global GDP.


Shifting to low-carbon energy sources is critical to mitigating climate change's impacts. Today's global energy mix is changing rapidly, but is it heading in the right direction?


Coal is the greatest driver of carbon dioxide emissions from energy, accounting for more than 40% of the total worldwide. Although coal demand is falling in the United States -- with 55 coal-powered plants closed in the past year -- it's growing globally. The World Resources Institute (WRI) recently identified 1,200 proposed new coal plants around the world. And last year, the United States hit a record-high level of coal exports—arguably transferring U.S. emissions abroad.










Meanwhile, shale gas is booming. Production in the United States has increased nearly tenfold since 2005, and China, India, Argentina, and many others have huge potential reserves. This development can be an economic blessing in many regions, and, because carbon emissions of shale gas are roughly half those of coal, it can help us get onto a lower carbon growth path.


However, while gas is an important bridge to a low carbon future—and can be a component of such a future—it can't get us fully to where we need to be. Greenhouse gas emissions in industrial countries need to fall by 80-90% by 2050 to prevent climate change's most disastrous impacts. And there is evidence that gas is crowding out renewables.


Renewable energy -- especially solar and wind power -- are clear winners when it comes to reducing emissions. Unfortunately, despite falling prices, the financial markets remain largely risk-averse. Many investors are less willing to finance renewable power. As a result of this mindset, along with policy uncertainty and the proliferation of low-cost gas, renewable energy investment dropped 11%, to $268 billion, last year.


What do we need to get on track?



Incentivizing renewable energy investment


Currently, more than 100 countries have renewable energy targets, more than 40 developing nations have introduced feed-in tariffs, and countries from Saudi Arabia to South Africa are making big bets on renewables as a growth market. Many countries are also exploring carbon-trading markets, including the EU, South Korea, and Australia. This year, China launched pilot trading projects in five cities and two provinces, with a goal of a national program by 2015.


Removing market barriers


Despite growing demand for renewable energy from many companies, this demand often remains unmet due to numerous regulatory, financial, and psychological barriers in the marketplace.


In an effort to address these, WRI just launched the Green Power Market Development Group in India, bringing together industry, government, and NGOs to build critical support for renewable energy markets. A dozen major companies from a variety of sectors—like Infosys, ACC, Cognizant, IBM, WIPRO, and others— have joined the initiative. This type of government-industry-utility partnership, built upon highly successful models elsewhere, can spur expanded clean energy development. It will be highlighted in Davos this week at meetings of the Green Growth Action Alliance (G2A2).


De-risking investments


For technical, policy, and financial reasons, risks are often higher for renewables than fossil-based energy. Addressing these risks is the big remaining task to bring about the needed energy transformation. Some new funding mechanisms are emerging that can help reduce risk and thus leverage large sums of financing. For example, the Green Climate Fund could, if well-designed, be an important venue to raise funds and drive additional investments from capital markets. Likewise, multi-lateral development banks' recent $175 billion commitment to sustainable transport could help leverage more funds from the private and public sectors.


Some forward-looking companies are seeking to create internal incentives for green investments. For example, companies like Unilever, Johnson & Johnson, and UPS have been taking actions to reduce internal hurdle rates and shift strategic thinking to the longer-term horizons that many green strategies need.


Davos is exactly the type of venue for finding solutions to such issues, which requires leadership and coalition-building from the private and public sectors. For example, the the G2A2, an alliance of CEOs committed to addressing climate and environmental risks, will launch the Green Investment Report with precisely the goal of "unlocking finance for green growth".


Depending on what happens at Davos—and other forums and meetings like it throughout the year—2013 could just be a game-changer.


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The opinions expressed in this commentary are solely those of Andrew Steer.






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