3 dead, 2 wounded in pair of early morning shootings













Photo: Three men were shot outside of a diner in the Bridgeport neighborhood


Photo: Three men were shot outside of a diner in the Bridgeport neighborhood
(Peter Nickeas / January 26, 2013)


























































Two shootings on the South and West sides left three people dead and two wounded Saturday morning. 


Three men were shot outside of a diner at the corner of Wallace Street and Pershing Road in the Bridgeport neighborhood about 4 a.m. Saturday, police said. Two men died at the scene. 


At the north end of the 1100 block of South Mozart Street in the Lawndale neighborhood, two people were shot. One also died there, police said. That happened about 2:15 a.m. 





Check back for more information. 


pnickeas@tribune.com


Twitter: @PeterNickeas






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Samsung puts lid on capex for the first time since financial crisis


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


Samsung, one of the industry's most aggressive spenders, has ramped up capital expenditure every year since 2004 except 2009 to meet soaring demand for its array of consumer electronics and mobile devices. It sold a record 700,000 smartphones a day in the last quarter.


But with the personal computer market shrinking for the first time in 11 years, the global smartphone market growing more slowly, and Apple Inc moving to buy fewer of Samsung's microprocessors used in the iPhone and iPad, the South Korean IT giant is now forced to keep a lid on spending.


"Overall its earnings momentum remains intact, and smartphone shipments will continue to grow even in the traditionally weak first quarter, as Samsung's got a broader product line-up and Apple appears to be struggling in pushing iPhone volumes aggressively," said Lee Se-chul, a Seoul-based analyst at Meritz Securities.


Samsung, which reported a record quarterly and annual profit on Friday, said it would keep 2013 capital expenditure unchanged from 2012.


"The key word for us in investment in 2013 is flexibility. We'll decide as the market demand dictates," Robert Yi, head of Samsung's investor relations, told analysts.


Data from the company shows Samsung started to slow down planned investment in the last quarter.


Samsung said it spent 4.4 trillion won in October-December, pushing its 2012 investment to a record 23 trillion won ($21.5 billion). But the company said in October that it was on course to spend 25 trillion won in 2012.


Analysts had expected a 4-20 percent cut in Samsung's 2013 capital spending.


By contrast, Taiwanese rival TSMC is planning to raise its capital expenditure to $9 billion this year, aimed in part at winning Apple orders away from Samsung.


Shares in Samsung fell 2.1 percent as of 0250 GMT, lagging a 1.1 percent decline in the wider market.


RECORD EARNINGS


Samsung had poured money into factories to boost production of chips and panels used in Apple products and its Galaxy range devices, pushing its operating profit to 8.84 trillion won in the last quarter. The 89 percent increase from a year earlier was in line with its earlier estimate.


Profit at its mobile devices division, which makes phones, tablets and cameras, more than doubled to 5.44 trillion won in the quarter from a year earlier, lifted by a broader offering of smartphones - from the very cheap to the very expensive.


The division accounted for 62 percent of Samsung's overall fourth-quarter profit, up from 55 percent a year earlier.


Samsung is also seeing strong sales of its Note phablet, which analysts expect to help Samsung get through any seasonal weakness better than rivals.


Samsung, which doesn't provide a breakdown of smartphone sales, is estimated to have sold around 63 million smartphones in the last quarter, including 15 million Galaxy S IIIs and 7 million Note IIs.


The company also said 2012 operating profit rose 86 percent to an all-time high of 29 trillion won.


SAMSUNG VS APPLE


Samsung sold 213 million smartphones last year and enlarged its share of the global market to 30.4 percent from around 20 percent in 2011, a report by market research firm Strategy Analytics showed on Friday. The sharp increase reflects Samsung's aggressive marketing of its wide product range.


Apple's share of the market rose slightly to 19.4 percent from 19.0 percent in 2011, according to the report.


Globally, sales of smartphones surged 42.7 percent last year to 700 million, Strategy Analytics said.


Samsung said on Friday it expects the global smartphone segment to shrink in January-March from the seasonally strong fourth quarter, and that growth of the overall handset market will slow to the mid single-digits this year.


The forecast is in line with industry estimates, with signs of a slowdown having already emerged.


Apple shipped 47.8 million iPhones in the three months ended December, a record that nonetheless disappointed many analysts accustomed to years of outperformance. The Cupertino, California-based company also missed Wall Street's revenue forecast for a third straight quarter as iPhone sales lagged expectations.


Apple shares have dropped by more than a third since mid-September as investors fret that its days of hyper growth are over and its devices are no longer as 'must-have' as they were.


By contrast, shares in Samsung have risen 12 percent in the same period as the company once seen as quick to copy the ideas of others now sets the pace in innovation.


At the world's biggest electronics show in Las Vegas this month, Samsung unveiled a prototype phone with a flexible display that can be folded almost like paper, and a microchip with eight processing cores, creating a buzz that these may be used in the next Galaxy range.


"It's very probable to us that the Exynos 5 Octa (processor) will find its way into the Galaxy S4," UBS analyst Nicolas Gaudois wrote in a recent note.


"It also looked as if the curved display is close enough to finished product. We came away even more convinced that displays will provide significant differentiation to Samsung devices, and application processors will materially grow over time," Gaudois said. ($1 = 1066.2000 Korean won)


(This story corrects 19th paragraph to show Apple's 2012 smartphone market share rose slightly according to Strategy Analytics.)


(Reporting by Miyoung Kim; Editing by Ryan Woo)



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Azarenka secures back-to-back Australian titles


MELBOURNE, Australia (AP) — Victoria Azarenka won her second consecutive Australian Open title, beating Li Na 4-6, 6-4, 6-3 in a dramatic final that contained a break for fireworks, two medical timeouts and a nasty fall to the court by Li.


The Chinese star first tumbled to the court after twisting her left ankle in the fifth game of the second set and had it taped.


On the first point after a 10-minute pause in the third set while fireworks boomed overhead from nearby Australia Day celebrations, Li fell over again and slammed the back of her head on the court. The 2011 French Open champion was treated immediately and had another timeout before being allowed to resume the match.


Azarenka, who broke down in tears and sobbed into her towel when the match ended, won five of the next six games to claim her second major title and retain the No. 1 ranking.


"Unfortunately, you have to go through some rough patches to achieve great things. That's what makes it so special for me," she said. "I went through that, and I'm still able to kiss that beautiful trophy."


Serena Williams, who lost in the quarterfinals, will become the new No. 2 in the rankings.


The 2-hour, 40-minute match featured 16 service breaks, with Li losing her service nine times.


On a crisp Saturday night, Azarenka won the coin toss and elected to receive, a ploy that seemed to work when a nervous Li was broken to start the match. After a double fault on the first point, Li's forehand long gave Azarenka the early lead.


When she first injured her ankle, Li was trailing 3-1 in the second set. When she came back, she won three of the next four games to level the set at 4-4, but Azarenka broke back and then held her serve to level the match.


Azarenka broke in the opening game of the final set, just two games before the match was suspended for the fireworks, a planned stoppage of play that both players were notified about before the match.


While Azarenka jogged around and practiced her serving motion during the 10-minute fireworks break, Li sat on her courtside chair for most of the stoppage.


It was on the first point that she again fell to the court.


Li said she went "totally black" for two seconds after her head hit the court, and when a medical official asked her to follow her finger, "I started laughing, thinking 'This is a tennis court, not like a hospital.'"


Li said the tournament doctor saw her after the match and checked out her head and neck.


"I should be OK,' Li said.


From the outset, the capacity crowd at Rod Laver Arena was firmly behind Li, cheering loudly when she was introduced. Azarenka, meanwhile, had her errors applauded, and one spectator even mocked the loud hooting sound she makes when she hits a shot.


The chill from the crowd was a remnant of Azarenka's semifinal win over American teenager Sloane Stephens, when Azarenka was criticized for taking a questionable 10-minute medical timeout near the end of the match. She was accused of taking the time out to compose herself after she'd wasted five match points while serving for the match against Stephens, although Azarenka said she needed the time out because a rib injury was making it difficult for her to breathe.


In the second set Saturday, a few fans heckled Azarenka over the incident. One man yelled, "Take a deep breath, Vicky."


By the end of the match, she appeared to have won some of the fans back. Azarenka's friend, rapper Redfoo, yelled down to her from the player box "You deserve it," and she later blew kisses to the crowd. Someone else in the crowd shouted "Victoria, we love you."


Azarekna appeared to quickly forgive the crowd, saying during the trophy presentations that she wanted to thank the fans for their support.


"I will always keep very special memories of this court and it will be in my heart forever," she said, pausing several times to find the right words. "Of course, I (almost) forgot to say congratulations to Li Na, she's had a terrific start to the year ... hope to see you in many, many more finals."


Azarenka and Li had met twice before in Grand Slam tournaments, with Li winning both times — in the fourth round of the 2011 Australian Open and quarterfinals at the French Open. Li lost the 2011 Australian Open final to Kim Clijsters but won her first Grand Slam title at Roland Garros a few months later, beating Francesca Schiavone.


But after failing to advance past the fourth round at any major in 2012, Li hired Carlos Rodriguez, Justine Henin's former coach. The hard training he's put her through in the past four months appears to be paying dividends.


Li won a WTA tournament in China before travelling to Australia, where she advanced to the semifinals at the Sydney International.


In the men's final on Sunday, Novak Djokovic will attempt to win his third consecutive Australian Open against U.S. Open champion Andy Murray. Djokovic has had the benefit of an extra day off after an easy three-set win over David Ferrer on Thursday night, while Murray needed a tough five-setter to defeat Roger Federer.


Murray has predicted a tough match with long rallies against Djokovic, the player he beat in the final at Flushing Meadows in September.


"I'm ready for the pain," he said. "I hope it's a painful match, that will mean it will be a good one."


In the other final Sunday to end the year's first Grand Slam, the unseeded pairs of Jarmila Gajdosova and Matthew Ebden of Australia and the Czech Republic's Lucie Hradecka and Frantisek Cermak play for the mixed doubles championship.


Read More..

Fox News, Palin cutting ties






NEW YORK (AP) — Fox News Channel is parting ways with former Republican vice presidential candidate Sarah Palin, ending her three-year tenure as a contributor on the network.


While Palin’s time at Fox was occasionally rocky, the network’s news executive, Bill Shine, said Friday that “we have thoroughly enjoyed our association” with her.






“We wish her the best in her future endeavors,” said Shine, Fox’s executive vice president for programming.


A person familiar with discussions between Fox and Palin described the parting as amicable, saying that Fox and Palin had discussed renewing her contract but she decided to do other things. The person spoke on condition of anonymity because they were not authorized to speak on the record.


Palin’s lawyer in Alaska, John Tiemessen, had no immediate comment on her exit. Palin’s last appearance on Fox News was Dec. 19 on Greta Van Susteren‘s show.


Palin signed to deliver commentary on Fox in January 2010, reportedly for $ 1 million a year. It was a coup for both sides at the time; the former Alaska governor was a little more than a year removed from her attention-getting run for the vice presidency and was considered one of the leading contenders for the 2012 presidential nomination. At Fox, she had a platform on the most popular network for conservative viewers. Fox installed equipment in Palin’s Wasilla, Alaska, home to make her regular appearances easier.


But there were some indications of tension between her and Fox News Chairman Roger Ailes, who was quoted in a 2011 story by The Associated Press saying, “I hired Sarah Palin because she was hot and got ratings.”


When Palin announced she would not be a candidate in 2012, she said it on a conservative radio show, which didn’t sit well with the company paying her to be a contributor. Palin took to her Facebook page late last summer to complain that Fox had cancelled her appearances one night at the GOP national convention; Fox said it was simply because the GOP had to condense its speaker schedule due to a hurricane.


Four years removed from her vice presidential candidacy, Palin’s influence had waned and she was somewhat overshadowed as a contributor at Fox by Karl Rove, former President George W. Bush‘s top political aide. Rove recently renewed his contract at Fox through the 2016 election.


With four more years of a Barack Obama administration in power, Fox recently hired former Democratic presidential candidate Dennis Kucinich as a contributor.


Entertainment News Headlines – Yahoo! News





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CDC: Flu seems to level off except in the West


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


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


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


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


___


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


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Disney says JJ Abrams to direct next 'Star Wars'


LOS ANGELES (AP) — It's official. The force is with J.J. Abrams.


The Walt Disney Co. issued a statement Friday night confirming reports that had been circulating for two days that Abrams, Emmy-award-winning creator of TV's "Lost" and director of 2009's "Star Trek" movie, has been pegged to direct the seventh installment of the "Star Wars" franchise.


"J.J. is the perfect director to helm this," said Kathleen Kennedy, the movie's producer and president of Lucasfilm, which was acquired by Disney last month for $4.06 billion.


"Beyond having such great instincts as a filmmaker, he has an intuitive understanding of this franchise. He understands the essence of the Star Wars experience," Kennedy said in the statement.


The movie will have a script from "Toy Story 3" writer Michael Arndt and a 2015 release.


Lawrence Kasdan, who wrote "The Empire Strikes Back" and "Return of the Jedi" in the original trilogy, will work as a consultant on the new project.


Abrams has already headed the reboot of another storied space franchise, "Star Trek," for rival studio Paramount Pictures. The next installment in that series, "Star Trek: Into Darkness," is set to hit theaters May 17.


But he has long been known as a "Star Wars" devotee. Abrams spoke about the plot of the original "Star Wars" in the lecture series "TED Talks" in March 2007, and reportedly became enamored of "Lost" co-creator Damon Lindelof partly because Lindelof was wearing a "Star Wars" T-shirt when they first met.


In 2009, Abrams told the Los Angeles Times: "As a kid, 'Star Wars' was much more my thing than 'Star Trek' was."


In Friday night's statement he called it an "absolute honor" to get the job.


"I may be even more grateful to George Lucas now than I was as a kid," Abrams said.


Lucas himself said in the statement that "I've consistently been impressed with J.J. as a filmmaker and storyteller. He's an ideal choice to direct the new Star Wars film and the legacy couldn't be in better hands."


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2012 stock report: Pains and gains









If you invested heavily in Illinois companies that provide consulting services, you had little reason to celebrate in 2012.

While the Standard & Poor's 500 index ended the year up 13 percent, most large businesses in the region that counsel other companies on how to improve their operations saw their stock prices drop.

Business support services was one of the few sectors getting clobbered in a 2012 Tribune ranking of Illinois and northwest Indiana stocks' performance.

Stock prices gained at about 70 percent of the 127 companies on the list, and about half outperformed the S&P 500. Bank owners such as Taylor Capital Group emerged from their 2011 doldrums, and Ulta Salon Cosmetics & Fragrance Inc. and Discover Financial Services marked their second consecutive year of soaring stock prices.

The year's biggest decliner, down 76 percent, was Groupon, as once-torrid revenue growth at the daily deals offerer started slowing.

Career Education was the second-worst performer; its stock fell 56 percent. The highly scrutinized for-profit school chain said it would close campuses and cut jobs amid sinking revenue and financial losses.

Sectors boosted by broad gains in 2012 included electrical parts and equipment, industrial machinery, and specialty chemicals.

Of seven Illinois banks on the list, all but one outperformed the S&P 500, with price appreciation of those six ranging from 16 to 86 percent.

In contrast, stocks of four of five professional services firms — Navigant Consulting, Huron Consulting Group, Heidrick & Struggles International and R.R. Donnelley & Sons — closed down 2 to 38 percent.

Each had its own set of issues.

Navigant's services, for example, include advising companies that face disputes, litigation and investigations, including government probes, as well as businesses that need help valuing potential mergers and acquisitions.

"You see fewer government investigations during an election year, as regulators are leaving their jobs, and they don't want to start new ones," said Tobey Sommer, a SunTrust Robinson Humphrey analyst. "Also, worries about the 'fiscal cliff' slowed M&A because CEOs didn't want to look foolish acquiring a company in September ahead of the fiscal cliff when they might have been able to buy it for 20 percent less in January had we gone off."

Meanwhile, Heidrick's troubles included a slowing market for executive searches. In early 2012, analysts expected Heidrick's annual earnings to be in the range of about $1.30 per share. It appears that it will earn closer to 57 cents a share.

Huron's earnings estimates during 2012 were also trimmed, to about $2.10 from about $2.40 a share as the timing of fee payments to its health care consulting business proved volatile.

"Its underlying demand is strong," but an increasing number of clients had signed contracts where a larger portion of revenue was contingent on the outcome of Huron's consulting work, said Randle Reece, analyst with Avondale Partners LLC. That made it harder for the company and the analysts who cover it to predict the timing of revenues, since they are deferred.

For investors interested in "Dumpster diving," Morningstar Inc. considers Exelon, WMS Industries and Caterpillar to be high quality yet undervalued this year, said Heather Brilliant, chief equities strategist.

Navigant is among the region's beaten-down stocks liked by stock research firm EVA Dimensions LLC. "Its fundamentals are improving, and it's really cheap," said EVA analyst Andrew Zamfotis.

Best of the best

Here are the top three stock gainers of 2012:

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Light snow makes for slick morning commute




















Chicago's morning weather forecast




















































A burst of snow slickened the morning commute but may not end Chicago's record stretch of days without an inch of snow falling.

“Looks like we will not get an inch. It will probably be closer to half an inch,” said Ben Deubelbeiss, a meteorologist with the National Weather Service.






As of 6 a.m., four-tenths of an inch of snow was recorded at O'Hare International Airport. Through Thursday, Chicago has seen 334 days without an inch of snow falling in a day. That beats the previous record streak of 319 set in 1940.

Snow started falling in the Chicago area around 4:45 a.m. Within half an hour, Illinois state police were reporting slick conditions on roads and had already responded to six minor accidents. Shortly after 6 a.m., a nine-car crash was reported near North Avenue on the Kennedy Expressway, but there were no reports of serious injuries.

By 7:15 a.m., state police said they had responded to about two dozen crashes on area expressways.

The snow was expected to end this morning.

“Something like this wouldn’t be newsworthy if it wasn’t for the fact it hasn’t snowed all year,” said Gino Izzi, another meteorologist for the weather service.

Still, the Chicago Department of Streets and Sanitation deployed almost 200 of its 284 plow trucks to clear streets of snow and apply salt to the roads.

"We’re going to be monitoring the weather but at this point we’re looking at snowfall at least through the rush hour," said Anne Sheahan, spokeswoman for Streets and Sanitation.

The next bout of snow is not expected until next week.

"We don’t have much of a chance of snow for the next five or six days," Izzi said. "If we miss (an inch of snow) today – today’s our one shot until we get to the middle or end of next week."

pnickeas@tribune.com
Twitter: @peternickeas






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Microsoft profit dips ahead of Office revamp


SEATTLE (Reuters) - Microsoft Corp's quarterly profit edged lower as Office software sales slowed ahead of a new launch, offsetting a solid but unspectacular start for its Windows 8 operating system and sending the company's shares down 1.4 percent.


The results mark a stark change from the 1990s, when Microsoft was the unchallenged king of computing and the release of a new Windows operating system would supercharge sales, generate excitement and generally boost its stock.


None of that appears to be true now, as Microsoft has been overtaken by Apple Inc and Google Inc in the rush toward mobile computing, while sales of traditional desktop computers are in decline.


"There's still no sign that Windows 8 is a gangbuster," said Andrew Bartels, an analyst at Forrester Research. "Compared to prior periods, where you saw a big increase when a new one came out, you're not seeing that."


Profit at the world's largest software company slid to $6.4 billion, or 76 cents per share, in the fiscal second quarter, from $6.6 billion, or 78 cents per share, in the year-ago quarter.


Wall Street had expected 75 cents per share, on average, according to Thomson Reuters I/B/E/S.


Overall sales rose 3 percent to $21.5 billion, Microsoft said on Thursday, in line with analysts' estimates.


The biggest factor weighing on Microsoft was a 10 percent decline in sales at its Office unit to $5.7 billion, which took into account the loss of deferred revenue relating to discounted upgrades to the new version of the software, expected shortly.


"It's a pause before a product launch, which is typical," said Josh Olson, an analyst at Edward Jones.


WINDOWS SHRUG


Windows sales jumped 24 percent to $5.9 billion, slightly ahead of analysts' average expectations, which had been gradually lowered over the last few months. That also included some deferred revenue relating to discounted upgrades.


Microsoft said it has sold more than 60 million Windows 8 licenses since its late-October launch, an unexceptional start for a product which has not gripped the public's imagination in the way of Apple's iPad.


The company already announced 60 million Windows 8 sales two weeks ago, broadly in line with Windows 7 sales three years before.


"Windows 8 continues to have an uphill battle in convincing investors this is going to be the key to the growth story for Microsoft," said Daniel Ives, an analyst at FBR Capital Markets. "It continues to be a major prove-me product cycle."


Microsoft did not detail sales of its new Surface tablet - a direct competitor to the iPad - although chief financial officer Peter Klein said the company was expanding production and distribution.


Windows executives suggest that Windows will win more people over when new touch-screen devices start hitting the shelves in coming months.


"Demand is stronger than supply across a number of key device types, whether Windows tablets, convertibles, or all-in-ones," Tami Reller, chief financial officer of Microsoft's Windows unit, told Reuters earlier this month. "Most of the opportunity is still ahead of us."


Analysts seem prepared to give Microsoft more time to prove its point.


"It's been disruptive but the PC market is far from dead," said Colin Gillis, an analyst at BGC Financial. "Even if they have minimal success with Surface, they don't need much to move the needle."


Microsoft shares have fallen 2 percent since Windows 8 was launched on October 26, compared to a 5 percent gain in the tech-heavy Nasdaq composite index. They fell to $27.06 in after-hours trading, after closing at $27.23 on Nasdaq.


(Additional reporting by Jennifer Saba; Editing by Richard Chang and Bob Burgdorfer)



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Murray advances to Australian Open men's final


MELBOURNE, Australia (AP) — Andy Murray has finally beaten Roger Federer at a Grand Slam.


The U.S. Open champion stayed in the hunt for a second consecutive major title with a 6-4, 6-7 (5), 6-3, 6-7 (2), 6-2 win over the 17-time Grand Slam champion at the Australian Open on Friday.


Murray will play defending champion and top-seeded Novak Djokovic, who was rarely troubled while beating David Ferrer in straight sets in just under 90 minutes on Thursday night — about 2½ hours less than Friday's semifinal.


Advantage to Djokovic, then, for the Sunday night final.


While U.S. Open champion Murray came into the match with a 10-9 career advantage, Murray had never beaten Federer in the three times they had met in majors — at finals at the 2008 U.S. Open, 2010 Australian Open and last year at Wimbledon.


"It's always tough against him when he plays his best tennis," Murray said, explaining why he was unable to close out the victory while serving for the match at 6-5 in the fourth set. "I was obviously very nervous. He plays his best tennis when his back is against the wall."


Federer outplayed Murray at stages of the match, but the 25-year-old Scot appeared to have the legs and stamina to give him the advantage over the 31-year-old Federer in the fifth set, including a service break to clinch the tense match.


With a capacity crowd of 15,000 at Rod Laver Arena watching, including the Australian legend Laver himself, Federer opened the match serving and was in trouble early, losing a 28-rally point to set up break point for Murray. But Federer held the game with a stunning cross-court forehand that just looped over the net from the baseline.


Murray, who had not lost a set through five rounds at Melbourne Park this year, had the first service break — on his fourth break point — to lead 2-1. It came in unusually cool summer conditions in Melbourne — breezy and temperatures of only 60 degrees during most of the match.


There were no service breaks or even break-point chances in the second set, resulting in the tiebreaker that Federer dominated early to take a 4-1 lead. But Murray fought back to level at 5-5 before Federer secured a set point with a cross-court return of Murray's smash attempt. The Swiss star clinched the tiebreaker and the 58-minute second set when Murray hit a forehand long on the next point.


The crowd was initially evenly split between Federer and Murray supporters — and at times, they were competing to be heard. At one point in the second set, a group of Murray fans wearing white shirts with blue letters spelling his nickname "Muzza" stood to chant Murray's name, while a group of Federer supporters with Swiss flags on their cheeks and shirts chanted Federer's name.


Murray broke Federer's service in the sixth game of the third set, clinched when Federer's attempted backhand in the left corner went long, then consolidated the break with a strong service game that included his 14th ace of the match to go up 5-2.


Federer, hampered by a 56 percent first-serve percentage through the first seven games of the set, managed to hold his service in the next. But Murray took a 2-1 set lead in the next game, clinching the game and the set with an ace.


With the crowd chanting "Let's go Roger, let's go," Federer grabbed back the momentum by breaking Murray for the first time in the match, then held his next service game before Murray won the next three games.


There was some controversy in that leveling game when Murray thought he had game point on a shot to the base line, but it was over-ruled by a linesman. He eventually held to level the set at 4-4, then 5-5 before the late exchange of service breaks that sent the set to another tiebreaker won by Federer, sending the match to a fifth set.


Earlier Friday, top-seeded Sara Errani and Roberta Vinci of Italy won the first title of 2013 at Melbourne Park, beating the unseeded Australian pair of Ashleigh Barty and Casey Dellacqua 6-2, 3-6, 6-2 for the women's doubles championship.


The 16-year-old Barty was attempting to become the youngest Grand Slam champion since Martina Hingis won the Australian Open singles title in 1997.


On Saturday, defending champion Victoria Azarenka plays sixth-seeded Li Na of China for the women's singles title. Li lost the Australian Open final to Kim Clijsters in 2011 two months before winning her first and only Grand Slam at the French Open.


"Last time was more exciting, (more) nervous because it was my first time to be in a final," Li said Friday. "But I think this time (I'm) more calmed down, more cool."


Azarenka leads 5-4 in career matches, including the last four times they've played.


"I'm really hungry to defend my title," said Azarenka, who needs to beat Li to retain her No. 1 ranking. "I've put myself in the position to give it the best shot."


Also on Saturday, American brothers Bob and Mike Bryan will play their fifth consecutive Australian Open doubles final and attempt to win their record 13th Grand Slam doubles championship. They'll play the Dutch pair of Robin Haase and Igor Sijsling.


Read More..

Burnt circuit boards snag Japan's 787 probe









A device seen as key to explaining why a Boeing Co. 787 Dreamliner jet made an emergency landing in Japan last week is burnt and unlikely to provide safety inspectors with data they need, said a person with knowledge of the ongoing investigation.

Circuit boards that control and monitor the performance of the plane's lithium-ion battery unit were charred and may be of little use to the teams investigating why the battery effectively melted, forcing safety investigators to scramble for possible clues from other components in the plane's electronics, said the person, who didn't want to be named as the probe is ongoing.

Aviation authorities in Japan face a painstaking reconstruction that may take months before they can unravel what caused one of the batteries to overheat, triggering warnings in the plane's cockpit.

That relatively inexpensive circuit boards may be keeping $10 billion worth of futuristic aircraft idle underscores how dependent the Boeing jet is on advanced electronics rather than more traditional, but less fuel-efficient, parts, experts said.

"The circuit board (system) is badly damaged. We'll see how much we can learn from examining it, but we'll also have to look at other recording devices on the aircraft to try and find out what happened," the person with direct knowledge of the investigation told Reuters.

BATTERY "BRAIN"

The circuit boards, known as the battery monitoring unit, are the "brains" of the battery, experts said. About the size of a laptop computer, the boards monitor functions of the lithium-ion battery's eight cells and feed this information to the charger. That effectively makes the boards responsible for preventing a battery from overcharging.

One key question for safety investigators is how the battery's eight individual cells became volatile even though the overall voltage to the battery was steady and didn't exceed the 32-volt capacity, officials have said. That data is not recorded in the Dreamliner's "black box" flight-data recorder.

U.S, Japanese and Boeing representatives have this week been at the Kyoto headquarters of GS Yuasa Corp, which makes batteries for the 787, looking at everything from manufacturing quality to technical standards.

The main battery from the All Nippon Airways flight is still at the GS Yuasa plant, where it is being cleaned and disassembled for further checks. Once they are done, Japanese safety officials plan to take the damaged circuit boards to the manufacturer, Fujisawa-based Kanto Aircraft Instrument, for a detailed inspection.

All 50 of Boeing's Dreamliners in service were grounded last week after the ANA-operated flight's emergency landing on a domestic flight. That followed an auxiliary battery fire in a Japan Airlines Co. Ltd 787 parked at Boston Airport.

"There is a possibility that a fire destroyed the elements that caused the problem and if so, it will become difficult to investigate the cause," said Hideaki Horie, project professor at the Institute of Industrial Science at Tokyo University.

Horie said Boeing should re-think the design of the battery safety and data recovery system even while it investigates what caused the recent Dreamliner incidents.

The 787 uses two lithium-ion batteries, which are about twice as large as a car battery. The batteries weigh less than a conventional battery and provide more power. They are Boeing's first step toward hybrid power systems like those used by automakers General Motors Co. and Toyota Motor Corp .
 

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Sentencing today for Chicago man in Mumbai terror attack









David Coleman Headley, an admitted terrorist with links to al-Qaida who helped plot the 2008 massacre in Mumbai, is scheduled to be sentenced today at Chicago’s federal courthouse.

Headley, 52,  who is to be sentenced amid heightened security measures in U.S. District Judge Harry Leinenweber’s courtroom, faces 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 agreed to cooperate on the day of his arrest at O’Hare International Airport 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.

asweeney@tribune.com



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Apple results spur price target cuts, shares fall 9 percent


(Reuters) - Weaker-than-expected holiday sales of Apple Inc's iPhone reinforced fears that it is losing its dominance in smartphones, driving its shares down 9 percent in premarket trading and drawing another round of stock price target cuts.


Fourteen brokerages including Barclays Capital, Mizuho Securities USA, Credit Suisse, Deutsche Bank, Raymond James, Robert W. Baird & Co and Canaccord Genuity cut their price target on the stock by $142 on average to $599.


Apple's shares closed at $514 Wednesday on the Nasdaq.


Jefferies & Co cut its rating on Apple's stock to "hold" from "buy" and slashed its share price target by $300 to $500.


Jefferies analyst Peter Misek, who has previously raised red flags about Apple cutting orders to suppliers, said the iPhone slowdown was "real and material" and here to stay.


"We think Apple is losing the screen-size wars," Misek said, noting that demand was moving away from the iPhone's 3.5-inch and 4-inch screens to screens of 5 inches offered by rivals such as Samsung Electronics Co Ltd, HTC Corp and Nokia Oyj.


Misek is a top-rated analyst for the accuracy of his earnings estimates for Apple, according to Thomson Reuters StarMine.


Apple said it shipped a record 47.8 million iPhones in the December quarter, but this trailed the average analyst forecast of 50 million units.


Deutsche Bank trimmed its price target to $575 from $800, and said Apple should start making a lower-priced iPhone to arrest the market share loss.


Credit Suisse analysts said a new product cycle and wider telecom carrier selection could be possible catalysts for the company, but added that these were not imminent.


"We believe a lower ability to beat earnings per share expectations, and some concerns on demand, may weigh on the stock near-term," said Credit Suisse, which cut its target price by $150 to $600.


Up to Wednesday, 24 analysts had lowered their price targets since October when Apple reported its fourth-quarter results, according to Thomson Reuters data.


Apple is the lowest ranked stock among the marquee technology firms in the United States based on the change in analyst sentiment, or Analysts Revision Model (ARM), according to StarMine.


Apple's global ARM score of 10 is well below Google Inc's 34 and Microsoft Corp's 19 out of a possible 100. Nokia and Samsung have scores of 82 and 89, respectively.


Research in Motion Ltd has a perfect score of 100, according to the model, which measures analysts' revision of key indicators such as earnings and revenue estimates and changes to their ratings.


Apple shares were trading at $468 before the bell.


(Reporting by Himank Sharma and Saqib Ahmed in Bangalore; Editing by Saumyadeb Chakrabarty)



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NCAA announces problems with Miami investigation


CORAL GABLES, Fla. (AP) — The NCAA's probe of Miami's athletic compliance practices is ramping up yet again.


Only this time, the Hurricanes aren't exactly the subject of the inquiry.


In a bizarre twist, it's college sports' governing body itself that is being investigated after NCAA President Mark Emmert acknowledged on Wednesday "a very severe issue of improper conduct" by former investigators working the long, complex Miami case.


The NCAA said its investigation was based, at least in part, on information that it should not have had access to, the testimony of those who appeared under subpoena to be deposed in the bankruptcy case involving former Miami booster Nevin Shapiro, one of the most notorious Ponzi scheme architects in history.


The NCAA does not have subpoena power. Shapiro's attorney did, and used it — and apparently entered into some sort of contractual agreement with the NCAA, one that apparently either was not or should never have been approved.


"We cannot have the NCAA bringing forward an allegation ... that was collected by processes none of us could stand for," Emmert said. "We're going to move it as fast as possible, but we have to get this right."


Wednesday's revelations mean that the notice of allegations against Miami — the NCAA's findings of wrongdoing, a document that was nearly completed and was expected to be released by the end of this week — will be delayed for at least a couple more weeks, if not longer. The long-term ramifications could be more damning for the NCAA, especially if the outside investigator they have commissioned to look into the mess finds more problems.


The NCAA did not name the attorney involved, whom Emmert only referred to as "she." The NCAA said it would not confirm that it was Maria Elena Perez, a Miami graduate and Shapiro's longtime defense attorney.


Perez did not respond to telephone or email messages. A person in her office said the attorney was working in New York and would be forwarded requests for comment.


"As we have done since the beginning, we will continue to work with the NCAA and now with their outside investigator hoping for a swift resolution of the investigation and our case," Miami President Donna Shalala said.


Emmert said two depositions are involved in this allegation of improper conduct by former enforcement-office staffers. One of those two depositions was given Dec. 19, 2011, by former Miami equipment-room staffer Sean Allen — who has been linked to Shapiro and many of the allegations that he made against the university.


Among the questions Allen was asked in that deposition:


— "Did you ever witness Mr. Shapiro paying any money to any University of Miami football or basketball players?"


— "Would it be fair to say that Mr. Shapiro did, in fact, confer various financial benefits on the University of Miami Athletic Program and its players?"


— "Did you ever overhear any of the coaches or any other staff for the University of Miami providing Mr. Shapiro with inside information regarding, you know, the condition of any particular athlete for the purposes of Mr. Shapiro's gambling?"


It's unknown which of Allen's answers caught the NCAA investigators' attention.


What is known publicly now, and has been suspected by some for months, is that those investigators never should have known those questions were asked.


"How in the world can you get this far without it being recognized that this was an inappropriate way to proceed?" Emmert asked.


That's the question that the NCAA wants answered, and fast.


Emmert spoke angrily at times during a half-hour conference call to discuss the findings, in which he revealed that he briefed the NCAA's executive committee and the Division I board presidents with some information about the Miami matter. He said he developed a better understanding of what went on in the days that followed, which led to the hiring of Kenneth L. Wainstein of the firm Cadwalader, Wickersham & Taft LLP to conduct the external review of what happened.


Wainstein, Emmert said, will begin his probe on Thursday, with the NCAA hoping that he can finish within two weeks.


"We want to make sure that any evidence that's brought forward is appropriately collected and it has the integrity that we expect and demand," Emmert said.


It was part of a stunning day for Hurricane athletics: The 25th-ranked men's basketball team routed No. 1 Duke later Wednesday, 90-63.


Emmert said the NCAA was trying to find out why part of the investigation was based on depositions specific to the bankruptcy case against Shapiro, who will have to repay $82.7 million to his victims as part of his sentence. And the timing of this also is curious. Several people who were to be named in the NCAA's notice of allegations against Miami have been told that the document was in the final stages of preparation — and one person who spoke with the AP said at least one person who was to have faced a charge of wrongdoing was told the letter was scheduled for delivery to Miami on Tuesday.


Now it's anyone's guess when that will happen.


Emmert said the NCAA learned of the alleged misconduct, in part, through legal bills presented by Shapiro's attorney for work that was not properly approved by the organization's general counsel's office.


"One of the questions that has to be answered, unequivocally, is what was the nature of that contractual arrangement and what was all the activity that that individual was involved with," Emmert said. "There is some uncertainty about all of that and it's one of the first orders of business for the firm that we've hired to investigate."


The Hurricanes' athletic compliance practices have been probed by the NCAA for nearly two years. Allegations of wrongdoing involving Miami's football and men's basketball programs became widely known in August 2011 when Yahoo Sports published accusations brought by Shapiro, who is serving a 20-year term in federal prison for masterminding a $930 million Ponzi scheme.


Miami has self-imposed two football postseason bans in response to the investigation. The Hurricanes also would have played in the Atlantic Coast Conference championship game this past season, meaning they could have qualified for the Orange Bowl.


"In my two-and-a-half years I've certainly never seen anything like this, and don't want to see it again," Emmert said.


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Country singer Gary Allan’s new album gets label’s early push






NASHVILLE, Tennessee (Reuters) – The release of country music singer Gary Allan’s new album “Set You Free,” this week, his first since undergoing vocal surgery in 2010, was not meant to happen so soon.


But when his record label, MCA Nashville, saw his new song “Every Storm (Runs out of Rain),” race up the charts in September, the label pushed the album’s release up two months from March.






“I’ve been doing this forever and it usually goes the other way,” Allan told Reuters. “It’s super exciting for me.”


Now in its 20th week on Billboard’s country chart, “Every Storm (Runs out of Rain),” peaked last week at No. 4 and has been downloaded some 685,000 times, according to Nielsen SoundScan.


Allan, 45, who has scored three country chart toppers in his 17-year career, said his latest hit was the right song at the right time for a country politically divided and seemingly down on its luck.


“It’s a song about hope,” he said. “Sometimes a song really resonates with people and the public because of the timing of its release. This is a time when our country needs hope and I think that’s why it’s doing so well.”


Allan’s voice is stronger on the album and he credits surgery he underwent in 2010 to remove a polyp from his vocal cords, which made it difficult for him to sing high notes.


“I don’t think I realized it really, but there were a few years where I couldn’t hit the falsetto notes on songs like ‘Smoke Rings in the Dark.’ After the surgery, it was like I was 18 again,” he said.


Allan, a California native who often plays down-home American rodeos and state fairs, is best known as a brooding troubadour who likes to pack an emotional punch.


TEAM OF RIVALS


“I don’t want to hear songs about how sunshiny things are,” he said. “I don’t like songs that feel like radio candy … I like the ones that make you think, laugh or cry – they pull some kind of emotion out of you.”


Allan for the first time played a part in writing every song on “Set You Free” to achieve that sentiment. He also used a team of rivals to freshen up his sound on his ninth studio album.


“I think you need to do something new to keep reinventing yourself,” he said. “I used three different producers and we were all a little competitive with each other to see who could get the best songs,” he said.


“The result was we got better quality in the songs and the recording. It’s my favorite album I’ve ever done.”


Among his favorite songs on the album is “One More Time,” a song about the death of his father in 2008, written with Hillary Lindsey and Matt Warren – co-writers on “Every Storm.”


“We just wanted to write an introspective song,” Allan said. “We kept thinking ‘What would you say when you got to the pearly gates?’, and what I would say is ‘I want one more time, I’m not ready to be there.’”


Another song, “Pieces,” describes Allan’s life philosophy.


“No matter who you meet in life, you take something from them, positive or negative,” Allan said. “That’s what the song is about, pieces of what I’ve been through and of the people I’ve met.”


MCA Nashville is part of Universal Music Group, a subsidiary of France’s Vivendi SA.


(Reporting by Vernell Hackett, editing by Eric Kelsey, desking by G Crosse)


Music News Headlines – Yahoo! News





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AP Interview: UN wants better family planning


DAVOS, Switzerland (AP) — The U.N.'s top population official wants governments to do more to ensure that women have access to family planning.


The U.N. says the world will add a billion people to its current population of some 7 billion within a decade, further straining the planet's resources.


Babatunde Osotimehin, executive director of the U.N. Population Fund, says more than 220 million women in the developing world want family planning but aren't getting it.


Speaking to The Associated Press at the World Economic Forum in Davos, he said many women want to have fewer children and that "30 percent of those who die giving birth we can prevent with family planning."


He also called for providing girls with "comprehensive sexuality education."


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Paris Opera Ballet names Millepied of 'Black Swan'


PARIS (AP) — Benjamin Millepied, the "Black Swan" choreographer who helped transform Natalie Portman into an obsessed, paranoid ballerina for the film and later married the actress, was named director of the Paris Opera Ballet on Thursday.


Millepied, 35, is a former principal dancer with the New York City Ballet who left in 2011 to create his own dance company in Los Angeles, L.A. Dance Project. He'll start at the Paris company in October 2014, when the current dance director, Brigitte Lefevre, retires.


Millepied and Portman, who have a son, met during the making of "Black Swan," Darren Aronofsky's psychological thriller that stars Portman as a ballet dancer.


Portman won the best actress Academy Award or her performance in the movie.


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U. of I. to launch tech research center in Chicago









Plans to launch a University of Illinois-affiliated technology research center in Chicago will be unveiled Thursday — the latest regional effort to stem an exodus of high-tech brainpower and entrepreneurship to the coasts.


A private, not-for-profit company, to be called UI Labs, is expected to open offices in or near the Loop to foster collaboration between the region's scientists and engineers from academia, industry and government.


The project, expected to be financed by private donations, corporate partnerships and federal grants, will be outlined for U. of I. trustees Thursday. The goal is to raise $20 million for first-year operations.





The aim is build a research and engineering powerhouse that will attract a range of industries to Chicago, along the lines of what the former Bell Labs did for the East Coast. The University of Illinois at Urbana-Champaign will offer up its vast tech resources, including the National Center for Supercomputing Applications and its Blue Waters supercomputer. It is anticipated other local universities and national research centers will participate.


"I was in India last week, talking with firms that were thinking of coming to Illinois to engage with university scientists," said U. of I. President Robert Easter. "And they say, 'We have a presence in Chicago or we're thinking of having a presence in Chicago, and it would be much more convenient if we could work with you there.'"


Or as project adviser James Duderstadt, president emeritus of the University of Michigan, put it, the U. of I. is among the top five universities in the nation in such high-tech fields as computer science and engineering, "but it's down there in the cornfields."


"All the pieces are there, but some of the things Chicago is lacking are things Urbana-Champaign has," he said.


The idea is to marry the two, helping Chicago attain the sort of direct scientific underpinnings that long have fostered tech hotbeds in Boston and the San Francisco Bay Area.


"This is an opportunity to essentially build some of the glue and connective tissue … and that's needed to keep students from leaving and, frankly, to grow some companies in Chicago," said Lesa Mitchell, vice president of innovation and networks for the Kansas City, Mo.-based Kauffman Foundation, which focuses on entrepreneurship.


Chicago faces intense competition nationwide, as many cities aim for technological prowess and growth. The start of the year brought the launch of a Cornell NYC Tech campus, for instance, a graduate program in applied sciences that will turn out high-level scientists in New York City.


In Illinois, the challenge is retaining talent. One telling statistic: 32 percent of computer science graduates from the U. of I. in Urbana-Champaign get jobs in California, said Larry Schook, the university's vice president for research.


Among U. of I. grads who made their names out West are Marc Andreessen, co-founder of Netscape; software entrepreneur Thomas Siebel, a major U. of I. donor; and Ray Ozzie, who recently retired as chief software architect for Microsoft Inc.


The goal of this project, supported by Gov. Pat Quinn and Mayor Rahm Emanuel, is to retain the next generation of Illinois-trained innovators.


The University of Illinois will have an affiliation agreement with the lab that would outline the flow of personnel, resources and services between them. The goal is to attract 250 faculty fellows during the first three years. Additionally, more than 1,000 undergraduate and graduate students are expected to participate in UI Labs training and entrepreneurial programs during the first five years.


"Some students and researchers prefer the city to a smaller community … so this could increase the quality of the faculty," said Bruce Rauner, a prominent Chicago venture capitalist who has worked on the development of this plan. "This can drive better research."


The intent is to develop a "junior year abroad program" as well, with the aim of attracting top students from overseas.


The UI Labs project will start within the next month or so, Schook said, with the naming of board members and a director search.


"We'd love to have … the smartest tech students in the world come to participate and stay here to create companies," Schook said.


Rauner, who made his fortune as co-founder of private equity firm GTCR and heads venture firm R8 Capital Partners, said he intends to participate in fundraising and to donate millions personally. Ultimately, to bring the center to world-class status, it may be necessary to raise a $300 million endowment, he said.


The University of Illinois has programs aimed at linking businesses to applicable academic research, including the University of Illinois at Chicago's Innovation Center and research parks at Chicago and Urbana. While those attempt to match faculty research with companies that could use it, the UI Labs model would aim for even deeper collaborative brainstorming, Easter said.


"A company struggling with a problem related to its technology could come in and sit with faculty who do theoretical work to see if those principles could lead to a solution," he said. "Out of that will come innovation, and that will drive economic growth."


kbergen@tribune.com


Twitter @kathy_bergen





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200 firefighters battle massive Bridgeport warehouse blaze









Firefighters were still on the scene of a smoldering warehouse in Bridgeport this morning, pouring water on hot spots after a 5-11 alarm fire raced through the five-story building as a third of the department's on-duty personnel fought it.

The blaze was spotted by a fire chief passing by the former Harris Marcus Group building at 3757 S. Ashland Ave. shortly after 9 p.m. Extra alarms were quickly called as the fire spread throughout the warehouse and the roof collapsed and the more than 200 firefighters contended with frozen hydrants and icy ladders. The fire was finally brought under control around 12:30 a.m.






Chicago Fire Cmsr. Jose Santiago said the fire was Chicago's largest in seven years. "This was a very large fire, unbelievable fire load, a lot of wood, timber, old stuff, varnish," Santiago said on the scene. "Once it caught, it caught and ran.

"Everything is wood inside these buildings, beautiful façades on the outside. They've been up for a long time. When they start burning like this, they start coming down," Santiago said.

The commissioner said the freezing cold made the firefighters' job tougher. "We run into a lot of problems, like the ice weight on the building and ladders," Santiago said. "We had the Water Department to come out and steam off our ladders."

Heat from the fire could be felt several blocks away as flames climbed into the sky and ash rained down on cars.

"You could see the embers from the highway," said Darcy Benedict, a 28-year-old UIC medical school student. "I could see blue flames rising up."

Benedict and her boyfriend saw the fire from Interstate 55, a mile away, and got off the highway to get a better look.

At least 40 people stood behind police tape, bundled up and taking videos with cellphones. Several wondered how firefighters would be able to contain the blaze.

The commander at the scene called for a 5-11 with two "special alarms" to bring in special equipment and more manpower as the massive five started spreading to other buildings.

“I’m looking at the south side of the main fire building and there’s a big portion of exterior wall and roof collapse,” Fire Department spokeswoman Meg Ahlheim said as firefighters made progress around 10:30 p.m.

Special alarms are rare. A 5-11 with two special alarms was called in 2006 when a fire gutted the historic Wirt Dexter Building in the South Loop. That fire broke out before 3 p.m. on a weekday, snarled downtown traffic and forced the CTA to stop service on Loop L tracks.

There was a 5-11 alarm fire in the Avondale neighborhood on the Northwest Side last year. That fire burned for hours and required about 200 firefighters, but no special alarms were called.

Alarms normally escalate one at a time beyond a normal fire response up to a fifth alarm, though the scene commander skipped a fourth alarm Tuesday night once the fire jumped to another building.

lford@tribune.com
Twitter: @ltaford


pnickeas@tribune.com
Twitter: @peternickeas


ehirst@tribune.com
Twitter: @ellenjeanhirst



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Motorola Solutions profit beats estimates on government spending


(Reuters) - Communications gear maker Motorola Solutions Inc reported better-than-expected fourth-quarter profit, boosted by higher government spending on public safety, but forecast current quarter revenue below analysts' estimates.


The company expects first-quarter revenue to increase 4 percent to 5 percent from a year earlier. This means a revenue of between $2.03 billion and $2.05 billion.


It forecast earnings of between 62 cents and 67 cents per share from continuing operations in the first quarter of 2013.


Analysts on average are expecting a profit of 67 cents per share on revenue of $2.07 billion, according to Thomson Reuters I/B/E/S.


Motorola Solutions benefited over the past year as two-way radio users were required by the Federal Communications Commission to upgrade their devices for a switch to narrow bands of 12.5 kHz from wideband channels of 25 kHz by January 1, 2013.


The company dominates the two-way radio market with its land-mobile-radio systems and public-safety products.


"In 2013, we expect the end of narrowbanding to result in government revenue growth slowing down to the mid single digits ... from the strong growth seen last year," Sanford C. Bernstein analyst Pierre Ferragu wrote in a pre-earnings note.


Net income from continuing operations rose to $336 million, or $1.18 per share, in the fourth quarter, from $177 million, or 54 cents per share, a year earlier.


Excluding items, the company earned $1.10 per share from continuing operations, above analysts' expectations of $1.02.


Revenue rose 6 percent to $2.44 billion, in-line with analysts' estimates of $2.45 billion.


Motorola Solutions is not related to Motorola Mobility, the cellphone maker bought by Google Inc for $12.5 billion in 2011.


Shares of the Schaumburg, Illinois-based company were up marginally at $59 in premarket trading on Wednesday. They closed at $58.29 on the New York Stock Exchange on Tuesday.


(Reporting by Neha Alawadhi in Bangalore; Editing by Sriraj Kalluvila)



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Te'o tells Couric he briefly lied about girlfriend


NEW YORK (AP) — Notre Dame linebacker Manti Te'o has told Katie Couric that he briefly lied about his online girlfriend after discovering she didn't exist, while maintaining that he had no part in creating the hoax.


Pressed by Couric to admit that he was in on the deception, Te'o said he believed that his girlfriend Lennay Kekua had died of cancer and didn't lie about it until December.


"Katie, put yourself in my situation. I, my whole world told me that she died on Sept. 12. Everybody knew that. This girl, who I committed myself to, died on Sept. 12," Te'o said in an interview to air Thursday on Couric's syndicated talk show. A segment of the interview with Te'o and his parents was broadcast Wednesday on "Good Morning America."


The Heisman Trophy runner-up said he only learned of the hoax when he received a phone call in December from a woman saying she was Kekua.


"Now I get a phone call on Dec. 6, saying that she's alive and then I'm going be put on national TV two days later. And to ask me about the same question. You know, what would you do?" Te'o said.


An Associated Press review of news coverage found that the Heisman Trophy runner-up talked about his doomed love in a Web interview on Dec. 8 and again in a newspaper interview published Dec. 10.


Te'o's father defended his son when Couric pointed out that many people don't believe the Irish star, suspecting he used the situation for personal gain.


"People can speculate about what they think he is. I've known him 21 years of his life. And he's not a liar. He's a kid," Brian Te'o said with tears in his eyes.


On Tuesday, the woman whose photo was used as the "face" of the Twitter account of Te'o's supposed girlfriend says the man allegedly behind the hoax confessed and apologized to her.


Diane O'Meara told NBC's "Today" show that Ronaiah Tuiasosopo used pictures of her without her knowledge in creating a fake woman called Lennay Kekua.


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Foes of NYC soda size limit doubt racial fairness


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


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


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


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


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


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


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


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


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


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


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


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


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


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


___


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


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Josh Duhamel named host of Kids' Choice Awards


NEW YORK (AP) — There's plenty of green slime in Josh Duhamel's future.


The star of "Transformers: Dark of the Moon" on Wednesday was named host of Nickelodeon's 26th Annual Kids' Choice Awards, which will be broadcast from the Galen Center in Los Angeles on March 23.


Duhamel, who starred on the NBC drama "Las Vegas," has already been inducted into Nickelodeon's Arm Fart Hall of Fame and showered in green goo.


The Kids' Choice Awards honor kids' favorites in film, music, sports and television by tallying the votes of kids online and via mobile devices. During the show, green slime is routinely dumped on celebrities and winners receive trophies shaped like blimps.


Last year's awards, hosted by Will Smith, attracted 6.2 million viewers.


___


Online: http://www.nick.com


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Prosecutors: Peregrine Financial fraud loss exceeds $215M









Peregrine Financial Group's former chief executive stole more than $215 million from customers of his now-defunct futures brokerage and should be sentenced to the maximum 50 years in jail, U.S. prosecutors said Tuesday.

Russell Wasendorf Sr., 64, who founded the firm, has pleaded guilty to embezzlement but wants a lighter sentence, saying that the loss was less than $200 million and that he used "very basic, simple means" to carry out his fraud, according to documents filed by U.S. prosecutors.

Wasendorf, whose attempted suicide sent his firm into bankruptcy last July, is in jail in Iowa and will be sentenced Jan. 31.

U.S. prosecutors say the large loss, the sophisticated nature of the crime and the sheer number of victims -- more than 10,000 -- justify his spending the rest of his life behind bars.

"While some of defendant's individual acts might be characterized as simple in isolation, they were part of an exceedingly complex scheme whereby defendant's entire business was used as a mechanism to gather and purloin investor funds," prosecutors said in their sentencing memorandum, promising to fight any attempt by Wasendorf to receive a sentence of less than 50 years.

Prosecutors put the exact loss at $215,530,547, based on Peregrine's bank records, and will call Brenda Cuypers, the firm's chief financial officer, as a witness at the sentencing hearing next week.

They had previously pegged the embezzlement only at "more than $100 million," to which Wasendorf pleaded guilty.

Wasendorf's public defender has a policy of declining to comment on cases, and did not reply to an email from Reuters seeking comment.

The collapse last July of Peregrine Financial, known as PFGBest, dealt a blow to confidence in the U.S futures industry, already reeling from $1.6 billion hole in customer pockets left when giant brokerage MF Global failed nine months earlier.

Futures traders had never before suffered such large losses as a result of a brokerage failure.

"To see (Wasendorf) go to jail could give some people some hope," said James Koutoulas, co-head of the Commodity Customer Coalition, which fought to get customer money back in both bankruptcies. "In MF Global, justice hasn't been done."

No one has been charged with wrongdoing in MF Global's collapse.

Regulators have scrambled to patch perceived gaps in customer protections at brokerages and exchanges that handle contracts valued at some $2.5 trillion a day.

That figure is set to rise as new rules push over-the-counter swaps onto regulated trading venues.

The sentencing memorandum offers new details in the government's account of the fraud, which Wasendorf said in a July statement began in the early 1990s after he was hounded by an overzealous regulator.

The fraud began even earlier, prosecutors said in Tuesday's filing, when he stole at least $250,000 from customers' accounts to pay back the original financier of his brokerage, a person referred to in the document only by the initials "J.C."

"Using a copy machine, defendant fabricated a bank statement to conceal the theft of funds," the document said. For the next nearly 20 years, prosecutors said, he faked bank balances, fabricated deposits, and used a rented post office box in Cedar Falls, Iowa, to intercept letters from his auditors meant to check up on his balances at U.S. Bank.

He even went so far as to fly from Chicago, where his firm did most of its business, to Iowa to prevent the near-discovery of his fraud, ultimately convincing Peregrine and U.S. Bank employees that nothing was wrong, the document said.

All the while he worked to make Peregrine Financial seem much bigger and more successful than it was, they said.

Wasendorf believed that "if he could make himself appear rich, the auditors and regulators wouldn't be concerned with the state of his personal finances and not discover it was all a fraud," prosecutors quoted Wasendorf as saying in a sealed presentencing report.

But Peregrine was never actually profitable, even though by its demise investors had entrusted more than $376 million to him and his firm, they said.

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Single-digit freeze continues; wind chills at dangerous levels

Chicago's morning weather forecast. ( WGN - Chicago)









Brace yourself and bundle up.

After a night when temperatures dipped to the low single digits, "they're not going to move a whole lot today," said Mark Ratzer, a meteorologist with the National Weather Service.






Temperatures may not break 10 degrees today, Ratzer says, and if they do, it won't be by more than a degree or two. A wind chill advisory issued Monday remains in effect until 10 a.m. this morning.

At 7:15 a.m., it was minus 1 degree at O'Hare International Airport, with a wind chill of minus 15. That's the first time since Feb. 10, 2011 that a subzero temperature has been recorded in Chicago. The streak of 711 consecutive days without a subzero temperature was the fourth longest on record, according to Richard Castro, also a meteorologist at the weather service.

If there's good news, it's that the wind won't be quite as strong as it was Monday when wind chills plummeted into the negative teens.

It won't be as cold as it was on Jan. 22, 1936, when a low temperature of 17 degrees below zero set Chicago's all-time record.

That's about where the good news stops. The cold will linger for several days, and temperatures are not expected to top 32 degrees until early next week, Ratzer said.

The overnight low of 4 degrees was the coldest since Feb. 10, 2011, when aided by a heavy snow cover, temperatures dipped to 9 below zero.

Over a 30-year period, the average temperature high for Jan. 22 is 31 degrees and the average low is 16.

Authorities reported no overnight deaths from the cold, though today's temperatures remain dangerous for anyone spending prolonged periods outdoors.

At least seven people in Cook County have died from causes related to the cold this season.

asege@tribune.com

Twitter: @AdamSege

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