Wall Street flat as Apple gains, Boeing weighs

NEW YORK (Reuters) - U.S. stocks were little changed on Wednesday as concerns about global economic growth and a drop in Boeing shares offset strong bank results and gains in technology stocks.


Goldman Sachs shares hit their highest level since June 2011 as earnings nearly tripled on increased revenue from dealmaking and lower compensation expenses, while JPMorgan Chase said fourth-quarter net income jumped 53 percent and earnings for 2012 set a record.


JPMorgan shares edged up 0.2 percent at $46.43 and Goldman was up 2.5 percent to $139.01. The KBW bank index <.bkx> gained 0.3 percent.


But with only 37 companies in the S&P 500 having reported earnings so far this season, investors are exercising caution until signs of growth can emerge.


A slow economic recovery in developed nations is holding back the global economy, the World Bank said on Tuesday, as it sharply scaled back its forecast for world growth in 2013 to 2.4 percent from an earlier forecast of 3.0 percent.


"Domestically, we are pretty well positioned," said Marc Helman, Vice President, Institutional Services at HFP Capital Markets in New York.


"But globally it's more of a mixed bag and that is where we have some of our concerns, so you are going to continue to see people wait on the sidelines until they get a little more clarity through the earnings season."


Shares of Dow component Boeing fell 3.1 percent to $74.59, the biggest drag on the Dow, on safety concerns for its new Dreamliner passenger jets. Japan's two leading airlines grounded their fleets of 787s after an emergency landing, adding to safety concerns triggered by a series of recent incidents.


The Dow Jones industrial average <.dji> shed 19.70 points, or 0.15 percent, to 13,515.19. The Standard & Poor's 500 Index <.spx> edged up 0.32 points, or 0.02 percent, to 1,472.66. The Nasdaq Composite Index <.ixic> gained 7.26 points, or 0.23 percent, to 3,118.04.


The Nasdaq moved higher on gains in Apple shares, which were up 3.2 percent at $501.66 after losses in three straight sessions. Morgan Stanley stamped the tech giant as a "best idea," citing overblown concerns about iPhone shipments.


Talks to take Dell Inc private were at an advanced stage, with at least four major banks lined up to provide financing, two sources with knowledge of the matter told Reuters. Shares fell 4 percent to $12.65 after jumping more than 21 percent over the past two sessions.


U.S. consumer prices were flat in December, pointing to muted inflation pressures that should give the Federal Reserve room to prop up the economy by staying on its ultra-easy monetary policy path.


(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)



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Lance Armstrong may not be done confessing


Lance Armstrong may not be done confessing.


His interview with Oprah Winfrey hasn't aired yet, but already some people want to hear more — under oath — before Armstrong is allowed to compete in elite triathlons, a sport he returned to after retiring from cycling in 2011. In addition to stripping him of all seven of his Tour de France titles last year, anti-doping officials banned Armstrong for life from sanctioned events.


"He's got to follow a certain course," David Howman, director general of World Anti-Doping Agency, told the AP. "That is not talking to a talk show host."


Armstrong already has had conversations with U.S. Anti-Doping Agency officials, touching off speculation that the team leader who demanded loyalty from others soon may face some very tough choices himself: whether to cooperate and name those who aided, knew about or helped cover up a sophisticated doping ring that Armstrong ran on his tour-winning U.S. Postal Service squads. Former teammate Frankie Andreu, one of several riders Armstrong cast aside on his ride to the top of the sport, said no one could provide a better blueprint for cleaning up the sport.


"Lance knows everything that happened," Andreu told The Associated Press. "He's the one who knows who did what because he was the ringleader. It's up to him how much he wants to expose."


World Anti-Doping Agency officials said nothing short of "a full confession under oath" would even cause them to reconsider the ban. Although Armstrong admitted to Winfrey on Monday that he used performance-enhancing drugs, Howman said that is "hardly the same as giving evidence to a relevant authority." The International Cycling Union also urged Armstrong to tell his story to an independent commission it has set up to examine claims that the sport's governing body hid suspicious samples, accepted financial donations, and helped Armstrong avoid detection in doping tests.


Winfrey wouldn't detail what Armstrong said during their interview at a downtown Austin hotel. In an appearance on "CBS This Morning," she said she was "mesmerized and riveted by some of his answers." What had been planned as a 90-minute broadcast will be shown as a two-part special, Thursday and Friday, on Winfrey's OWN network.


The lifetime ban was imposed after a 1,000-page report by USADA last year outlined a complex, long-running doping program led by Armstrong. The cyclist also lost nearly all of his endorsements and was forced to cut ties with the Livestrong cancer charity he founded in 1997. The damage to Armstrong's reputation was just as severe.


The report portrayed him as well-versed in the use of a wide range of performance-enhancers, including steroids and blood boosters such as EPO, and willing to exploit them to dominate. Nearly a dozen teammates provided testimony about that drug regimen, among them Andreu and his wife, Betsy.


"A lot of it was news and shocking to me," Andreu said. "I am sure it's shocking to the world. There's been signs leading up to this moment for a long time. For my wife and I, we've been attacked and ripped apart by Lance and all of his people, and all his supporters repeatedly for a long time. I just wish they wouldn't have been so blind and opened up their eyes earlier to all the signs that indicated there was deception there, so that we wouldn't have had to suffer as much.


"And it's not only us," he added, "he's ruined a lot of people's lives."


Armstrong was believed to have left for Hawaii. The street outside his Spanish-style villa on Austin's west side was quiet the day after international TV crews gathered there hoping to catch a glimpse of him. Meanwhile, members of his legal team mapped out a strategy on how to handle at least two pending lawsuits against Armstrong, and possibly a third.


Former teammate Floyd Landis, who was stripped of the 2006 Tour de France title for doping, alleges in one of the lawsuits that Armstrong defrauded the U.S. government by repeatedly denying he used performance-enhancing drugs. The False Claims Act lawsuit could require Armstrong to return substantial sponsorship fees and pay a hefty fine. The AP reported earlier Tuesday that Justice Department officials were likely to join the whistleblower lawsuit before a Thursday deadline.


___


Jim Litke reported from Chicago, Jim Vertuno from Austin, Texas. Stephen Wilson in London and John L. Mone in Dearborn, Mich., also contributed to this report.


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Smoke-Black Space Cloud Hides Baby Stars in Amazing Photo






A jaw-dropping new photo from a telescope in South America has revealed a smoke-black cloud in deep space hiding a bustling nursery of baby stars.


The new image, captured by a telescope at the European Southern Observatory in Chile, is the best view ever of the dark space cloud Lupus 3. The cosmic cloud is about 600 light-years from Earth in the constellation Scorpious (The Scorpion).






The observatory released a wide-view and video tour of the Lupus 3 space cloud and a dazzling bright star cluster in addition to the close-up photo.


“At first glance, these two features could not be more different, but they are in fact closely linked,” ESO officials said in an image description today (Jan. 16).  


As the denser regions of the cloud contract under their own gravity and heat up, they blaze up into newborn stars whose light is initially blocked by the surrounding gas. But as stars grow hotter over time, their stellar winds sweep away the obstructing gas so that they emerge as bright beacons similar to those in the star cluster near Lupus 3, ESO officials explained.


“The bright stars right of the center of this new picture form a perfect example of a small group of such hot young stars,” they added. “Some of their brilliant blue light is being scattered off the remaining dust around them.”


Two of the brightest stars in the cluster can be seen easily with a small telescope, and are likely less than 1 million years old, according to an image description.


The new photo of Lupus 3 and its neighboring star cluster was snapped by the MPG/ESO 2.2-meter telescope at ESO’s La Silla Observatory high up in Chile’s Atacama Desert. It covers a visible field about 5 light-years across.


ESO officials said the Lupus 3 space cloud is likely similar to the star nursery that gave birth to Earth’s sun more than 4 billion years ago.


Follow SPACE.com on Twitter @Spacedotcom. We’re also on Facebook & Google+.


Copyright 2013 SPACE.com, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Should we give Lance another chance?






STORY HIGHLIGHTS


  • Mike Downey: I haven't a smidgen of sympathy for the dope "pedaler"

  • Randy Cohen: If many cycling fans are right, most of the top riders engaged in doping

  • Jeff Pearlman: Lance racing again is not truly an option anyway -- he's almost 42

  • John Hoberman: Any lifting of his lifetime ban should be based on his total cooperation




(CNN) -- CNN asked for views on whether disgraced cyclist Lance Armstrong deserves another chance in light of his apologies to his charity, Livestrong, and his soon-to-be-aired interview with Oprah Winfrey, in which it's widely reported he admitted he used performance-enhancing drugs. Armstrong is banned from professional cycling for life and was stripped of his seven Tour de France titles.


Mike Downey: No sympathy for the dope "pedaler"


I was at the Champs-Elysees finish line on July 27, 1986, when the bike of Greg LeMond whizzed by, making him the first American to win the Tour de France. It was a monumental achievement: 210 cyclists, 23 grueling days, long and winding roads, treacherously steep hills.



Mike Downey

Mike Downey



Equally hard had to be the abuse LeMond endured in retirement after publicly decrying the sport's hypocrisies and daring to suggest that seven-time winner Lance Armstrong, the All-American boy himself, had not been on the up-and-up. Vilified and disdained, LeMond was treated like a tobacco company's insider who blew the whistle on the industry's methods or like Carl Lewis speculating that his rival Ben Johnson had not won foot races fairly and squarely. As if he had an ax to grind.


I haven't a smidgen of sympathy for Armstrong now that he is exposed for the dope-pedaler -- that's pedal, not peddle -- he truly was. He played the Jean Valjean part of the persecuted man for every franc that it was worth. Let us resist the magnanimous gesture to forgive, forget and give Lance a second (eighth?) chance. He was caught, unlike certain baseball players who have been merely suspected or accused, and has, evidently, confessed. Seven strikes and you're out.


Professional athletes do exist who 'fess up, serve a suspension, then are welcomed back. They, as with the ballplayers, did disgrace their life's work, yet none single-handedly won their sport's championship with their chicanery. None stood apart as Armstrong did and hogged credit for being a champion, a hero. None won a championship by compelling teammates to also cheat, at risk of being shunned, smeared or dropped from the team.


I say we say goodbye for good to Monsieur Armstrong, farewell, adieu. Off to Elba and exile with you, you rogue. Vive LeMond.


Mike Downey is a former columnist for The Los Angeles Times and Chicago Tribune.


To Armstrong's critics, doping admission would be sweet


Randy Cohen: All big-time cyclists who doped should confess


The important ethical question isn't whether Lance deserves a second chance. Chance to do what? Cheat in seven more Tours? Lie about it seven more times? Bully seven more teammates into doping? He behaved badly and is rightly censured.



Randy Cohen

Randy Cohen



But that should be the beginning, not the end, of this disheartening story. There's a lot more blame to go around. Cycling's governing bodies also have an ethical duty, and that's to provide a setting in which honest athletes can participate.


If many cycling fans are right, most of the top riders engaged in doping. You simply can't compete against them without doing the same. What was Lance to do? Quit the sport? And who inherits his Tour titles? Some other cheat?


It would be thrilling if one by one, they declined in a Spartacus moment -- an honest, I-am-drugged-Spartacus moment. This is a community problem; it demands community solutions. Unless those who run big-time cycling institute real reforms, Lance's fall will be merely a celebrity scandal, and there's little good in that.


Randy Cohen wrote The Ethicist column in The New York Times Magazine till 2011, and he is a former writer for "Late Night With David Letterman." His latest book is "Be Good: How to Navigate the Ethics of Everything."



Jeff Pearlman: He's almost 42, forget about it


Back when I was 8 or 9, my parents took me to my first trip to Disney World. I remember Space Mountain, and I remember Mickey Mouse's enormous head. For some reason, though, what I remember most is a sign posted within the borders of Epcot. It read: If you can dream it, you can do it.


"Dad," I said, "I dream of being 8-feet tall. But that'll never happen ..."


"Well, son ..."



Jeff Pearlman

Jeff Pearlman



"And, Dad, I dream of being able to fly just like Superman. But that'll never happen ..."


"Son, the thing is ..."


"And Dad, I'd really like to win an Olympic gold medal for my Joanie Cunningham impersonation, but ..."


"Son," my father said, "It's a sign. It's just a damn sign."


Sigh.


Throughout Lance Armstrong's recent fight to prove he hadn't cheated, and throughout the plights of Barry Bonds and Roger Clemens and Mark McGwire and the alleged PED abuses of dozens upon dozens of others, I've often thought about that day at Disney and, specifically, of that sign.


As a boy, it spoke to me as a kid longing for greatness. Maybe, just maybe, I can accomplish anything. Maybe ...


As a sportswriter who has chronicled much of the past two decades, however, it strikes me as foolish nonsense. As Armstrong's recent admission shows, the words must be altered to -- if you can dream it, you can do it -- as long as you leave your ethics at the door and cheat your ass off and don't mind throwing your supporters under a bus.









Lance Armstrong over the years



























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That, now, is the sad, pathetic legacy of men such as Armstrong and Bonds. Once upon a time, they dreamed of doing wonderful things: Of hitting baseballs 500 miles; of speeding down the largest mountains; of being special. Then, however, they learned (as we all do) that we are bound by the confines of humanity. Within the rules and regulations, there is only so strong. There is only so fast. There is only so big. Hence, one can either accept his lot in life and put out the best possible effort, or he can cheat and lie and enjoy the temporary fruits while trying to avoid the inevitable plummet.


Do I think he should be allowed to race again? No. Lance Armstrong racing again is not truly an option anyway -- he's almost 42.


Just the same, I am thrilled that he has -- at long last -- begun to come clean. There are lessons to be learned here, beyond those pertaining to cycling. And day's end, when the cheering has stopped, there is something to be said for trying your best, even if your best doesn't result in triumph.


There is empowerment in knowing you gave your all. There is satisfaction in achieving your own PR. There is the sense of community and camaraderie that comes in the aftermath of a sporting event. Cold beers, casual conversation, sore muscles -- bliss.


Armstrong and Bonds forgot that long ago. For them, it was all -- and only --about winning. They got lost in a corrupt world of enhancers and boosters and had their heads turned by the fame and accolades and money.


Now, though, they are outcasts. They are the tombstones of long-ago dreams.


Jeff Pearlman is the author of "Sweetness: The Enigmatic Life of Walter Payton." He blogs at jeffpearlman.com. Follow him on Twitter.


Oprah interview won't reduce sanctions against Armstrong, officials say


Wayne Norman: Like a convenience store robbery that goes wrong


Lance knows that a quick mea culpa is not enough -- otherwise, he would have admitted to doping long ago. Instead, he made a calculated gamble that he could preserve his reputation and brand by lying, defrauding corporate sponsors, impugning the authorities pursuing him and actively slandering and suing honest whistle-blowers who stood in his way.



Wayne Norman

Wayne Norman



That bet has not paid off.


Like a convenience store robbery that goes wrong and leads to a hostage-taking and a high-speed chase, Lance's doping is by far the least of his transgressions. A highly calculated confession about the doping still looks like Lance gambling to advance his interests. Former fans will need contrition and a sense that he genuinely regrets the gamble. Those he slandered and defrauded should demand even more.


Lance cannot get another chance as an athlete at this point. That would make a mockery of all sporting rules and their enforcement. When you've been that blatantly dishonest, it won't be easy to convince people to trust you again.


Wayne Norman is the Mike & Ruth Mackowski professor of ethics at Duke University.


John Eustice: Armstrong can make a deal and get leeway


What Lance has, the U.S. Anti-Doping Agency wants, and Lance is not going to give it to them unless he gets his (athletic) life back. USADA knows that Lance stands at the nexus of two distinct cultures, two completely different mindsets: The ideals and dreams of Olympic sport and the harsh, ratings-driven business of the professional game.



John Eustice

John Eustice



They view this conquest of Lance as their great chance to have the Olympic vision triumph over the cynicism of the pros. But they need his cooperation to win.


Despite the admitting of pros into the Olympic Games, in truth, the two cultures do not mesh. Pro sports are businesses where talent, ratings and the subsequent cash flows from them, must be protected just as in any other entertainment business.


USADA needs to understand how the professional mentality has "infected" the Olympic movement, and Lance is the key. Was he protected by the International Cycling Union? Was the Tour de France involved? Did it go even higher that that?


USADA makes deals. If Lance can provide them with information on the underground system that fuels athletes worldwide, and explain, for example, how of the 6,000 drugs tests given at the London Games, only one came back positive, allowing him to participate in some triathlons seems a very small price to pay.


Cycling analyst John Eustice was one of the pioneer Americans to break into the world of European pro cycling. He co-founded and captained the first American team to race in the Tour of Italy, and is a two-time United States Professional Champion.


John Hoberman: Is it possible to acquire a conscience overnight?


The report that Lance Armstrong choked up during his apology to Livestrong Foundation employees earlier this week would seem to mark an abrupt departure from the cold, calculating and manipulative personality he has displayed throughout his celebrated athletic career.


Having closely followed the Armstrong saga as a doping researcher, I have come to doubt whether this is man is capable of genuine contrition. One can only imagine the apologetic telephone calls he has been making to the former teammates and other victims he persecuted, threatened, bullied and slandered over so many years.



John Hoberman

John Hoberman



Is it really possible to acquire a conscience overnight? Can a person who has long-demonstrated reckless self-assertion, a lack of empathy, coldheartedness, egocentricity, superficial charm and irresponsibility suddenly repent after months of hostile intransigence?


One is tempted to say no, since this ensemble of traits bears a disturbing similarity to the psychopathic personality. Let us hope that Armstrong is capable of leaving his old self behind and building a healthier personal identity.


Any lifting of his lifetime ban from officially recognized competitions should be made contingent on his absolute and total cooperation with the United States Anti-Doping Agency and the World Anti-Doping Agency. Armstrong must demonstrate some good faith by revealing everything he knows about the illicit trade in doping drugs as well as the cynical and opportunistic doctors who have profited from these corrupt arrangements.


John Hoberman teaches at the University of Texas at Austin and is the author of "Mortal Engines: The Science of Performance and the Dehumanization of Sport." He was a consultant in 2005 for the SCA Promotions of Dallas, the insurance company demanding that Lance Armstrong repay a total of $7.5 million it paid to him in Tour de France bonuses.


Shawn Klein: If he cooperates, maybe the lifetime ban could be reduced


After years of adamant denials and protestations of his innocence, Lance Armstrong has reportedly come forward to admit his use of prohibited performance enhancing drugs. If Armstrong is sincerely contrite and forthright in his apology, most people, including myself, will forgive him for his use of prohibited drugs.



Shawn Klein

Shawn Klein



He cheated in a sport known for its widespread cheating; that doesn't justify his use but it does put his actions into an understandable context that makes it easier to excuse the use. Further, if Armstrong cooperates with the U.S. Anti-Doping Agency, his lifetime ban from cycling ought to be reduced to something more reasonable.


The more troubling aspects of the Armstrong case are the allegations that he harassed and intimidated team members and potential whistle-blowers. Violating the arbitrary rules of a sport shows a character flaw and poor judgment, but it is hard to see who else is truly harmed by such actions. But to threaten, intimidate and coerce others (either to use performance enhancing drugs themselves or to cover up his team's use) causes real harm.


Even if only some of these reports are accurate, Armstrong will have to do more than sit on Oprah's couch to earn forgiveness. 


Shawn Klein teaches at the Department of Philosophy and Center for Ethics and Entrepreneurship at Rockford College in Illinois and writes the Sportsethicist blog.


What do you think? Comment below and join us on Friday for a live chat on Twitter @CNNOpinion about Lance Armstrong.


Follow @CNNOpinion on Twitter.


Join us at Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of the authors.






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Two airlines ground Dreamliners after emergency landing









Japan's two leading airlines grounded their fleets of Boeing 787s on Wednesday after one of the Dreamliner passenger jets made an emergency landing, the latest in a series of incidents to heighten safety concerns over a plane many see as the future of commercial aviation.

Shares in the Chicago-based Boeing Co. were down 4.4 percent in premarket trading on the news.


All Nippon Airways Co. said instruments aboard a domestic flight indicated a battery error, triggering emergency warnings to the pilots. Shigeru Takano, a senior safety official at the Civil Aviation Bureau, said a second warning light indicated smoke.





Wednesday's incident, described by a transport ministry official as "highly serious" - language used in international safety circles as indicating there could have been an accident -- is the latest in a line of mishaps -- fuel leaks, a battery fire, wiring problem, brake computer glitch and cracked cockpit window - to hit the world's first mainly carbon-composite airliner in recent days.


"I think you're nearing the tipping point where they need to regard this as a serious crisis," said Richard Aboulafia, a senior analyst with the Teal Group inFairfax, Virginia. "This is going to change people's perception of the aircraft if they don't act quickly."


ANA, which said the battery in the forward cargo hold was the same lithium-ion type as one involved in a fire on another Dreamliner at a U.S. airport last week, grounded all 17 of its 787s, and Japan Airlines Co suspended its 787 flights scheduled for Wednesday and Thursday.


The two airlines, which operate around half of the 50 Dreamliners delivered to date, said they would decide on Thursday whether to resume Dreamliner flights the following day.


COMPREHENSIVE REVIEW


The 787, which has a list price of $207 million, represents a leap in the way planes are designed and built, but the project has been plagued by cost overruns and years of delays. Some have suggested Boeing's rush to get planes built after those delays resulted in the recent problems, a charge the company strenuously denies.


Both the U.S.Federal Aviation Administration (FAA) and the National Transportation Safety Board (NTSB) said they were monitoring the latest incident as part of a comprehensive review of the Dreamliner announced late last week.


ALARM TRIGGERED


ANA flight 692 left Yamaguchi in western Japan shortly after 8 a.m. local time (2300 GMT Tuesday) bound for Haneda Airport near Tokyo, a 65-minute flight. About 18 minutes into the flight, the plane descended and made an emergency landing 16 minutes later, according to flight-tracking website Flightaware.com.


A spokesman for Osaka airport authority said the plane landed at Takamatsu at 8:45 a.m. All 129 passengers and eight crew evacuated via the plane's inflatable chutes. Chief Cabinet Secretary Yoshihide Suga said five people were slightly injured.


At a news conference - where ANA's vice-president Osamu Shinobe bowed deeply in apology - the carrier said a battery in the forward cargo hold triggered emergency warnings to the pilots, who decided on the emergency action. "There was a battery alert in the cockpit and there was an odd smell detected in the cockpit and cabin, and (the pilot) decided to make an emergency landing," Shinobe said.


In a statement later, ANA said the main battery in the forward electrical equipment bay was discolored and there were signs of leakage.


Passengers leaving the flight told local TV there was an odor like burning plastic on the plane as soon as it took off. "There was a bad smell as soon as we started and before we made the emergency landing there was an announcement and the stewardess' voice was shaking, so I thought this was serious," one passenger toldTBS TV.


Another man told a local broadcaster: "There was a strong, burning smell, but the smoke appeared after they opened the emergency doors, after we landed."


Marc Birtel, a Boeing spokesman, told Reuters: "We've seen the reports, we're aware of the events and are working with our customer."


Robert Stallard, analyst at RBC Capital Markets, said lost revenue at the Japanese airlines could prompt compensation from Boeing. "What started as a series of relatively minor, isolated incidents now threatens to overhang Boeing until it can return confidence, and this looks to be a near-term challenge given the media's draw to all things 787," he said.


UNDER REVIEW





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Dozens held after Islamists attack Algerian gas field


ALGIERS (Reuters) - Islamist militants attacked a gas field in Algeria on Wednesday, claiming to have kidnapped up to 41 foreigners including seven Americans in a dawn raid in retaliation for France's intervention in Mali, according to regional media reports.


The raiders were also reported to have killed three people, including a Briton and a French national.


An al Qaeda affiliated group said the raid had been carried out because of Algeria's decision to allow France to use its air space for attacks against Islamists in Mali, where French forces have been in action against al Qaeda-linked militants since last week.


The attack in southern Algeria also raised fears that the French action in Mali could prompt further Islamist revenge attacks on Western targets in Africa, where al Qaeda in the Islamic Maghreb (AQIM) operates across borders in the Sahara desert, and in Europe.


AQIM said it had carried out Wednesday's raid on the In Amenas gas facility in Algeria, Mauritania's ANI news agency reported.


The Algerian interior ministry said: "A terrorist group, heavily armed and using three vehicles, launched an attack this Wednesday at 5 a.m. against a Sonatrach base in Tigantourine, near In Amenas, about 100 km (60 miles) from the Algerian and Libyan border."


The gas field is operated by a joint venture including BP, Norwegian oil firm Statoil and Algerian state company Sonatrach.


ARMED MEN


BP said armed men were still occupying facilities at the gas field.


"The site was attacked and occupied by a group of unidentified armed people at about 0500 UK time. Contact with the site is extremely difficult, but we understand that armed individuals are still occupying the In Amenas operations site," it said.


Algeria's official APS news agency said a Briton and an Algerian security guard had been killed and seven people were injured. A French national was also killed in the attack, a local source said.


Also among those reported kidnapped by various sources were five Japanese nationals working for the Japanese engineering firm JGC Corp, a French national, an Irishman, a Norwegian and a number of Britons.


A member of an Islamist group styling itself the "Blood Battalion" was quoted by Mauritanian media as saying that five of the hostages were being held at the gas facility and 36 were in a housing area. APS said the Islamist raiders had freed Algerians working at the gas facility.


"The operation was in response to the blatant interference by Algeria and the opening of its air space to French aircraft to bomb northern Mali," the Islamist spokesman told Mauritania's ANI news agency.


ANI, which has regular direct contact with Islamists, said that fighters under the command of Mokhtar Belmokhtar were holding the foreigners.


Belmokhtar for years commanded al Qaeda fighters in the Sahara before setting up his own armed Islamist group late last year after an apparent fallout with other militant leaders.


The Algerian army was in the area of the gas facility, according to French and Algerian sources.


SECURITY IMPLICATIONS


The attack was the first time in years that Islamist militants are known to have launched an attack on an Algerian energy facility.


The attack could have implications for security across the whole of Algeria's energy sector, which supplies about a quarter of Europe's natural gas imports and exports millions of barrels of crude oil each year.


Such an attack would require a large and heavily-armed insurgent force with a degree of freedom to move around -- all elements that al Qaeda has not previously had.


However, the conflict in neighboring Libya in 2011 changed the balance of force. Security experts say al Qaeda was able to obtain arms, including heavy weapons, from the looted arsenals of former leader Muammar Gaddafi.


Statoil, a minority shareholder in the gas venture, said it had 17 employees at the plant and four of them had been evacuated. The company declined to comment on the other 13.


The five Japanese work for the engineering firm JGC Corporation, Jiji news agency reported, quoting company officials. JGC has a deal with Sonatrach-BP-Statoil Association for work in gas production at In Amenas.


A reporter for Japan's NHK television managed to call a JGC worker in Algeria.


The worker said he got a phone call from a colleague at the gas field. "It was around 6 a.m. this morning. He said that he had been hearing gunshots for about 20 minutes. I wasn't able to get through to him since."


French troops launched their first ground operation against Islamist rebels in Mali on Wednesday in an action to dislodge from a strategic town al Qaeda-linked fighters who have resisted six days of air strikes.


(Additional reporting by Catherine Bremer and John Irish in Paris, Laurent Prieur in Nouakchott, Andrew Osborn in London, Balazs Koranyi in Oslo, Antoni Slodkowski in Tokyo, Raissa Kasolowsky in Abu Dhabi and Christian Lowe in Warsaw; Editing by Giles Elgood)



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Apple stock's continuing decline drags Wall Street lower

NEW YORK (Reuters) - Stocks fell on Tuesday on continued selling of tech heavyweight Apple and concerns over the brewing fight in Washington over raising the U.S. debt ceiling.


Apple fell for the third day in a row as the biggest drag on both the S&P 500 and Nasdaq 100 <.ndx> after reports on Monday of cuts to orders for iPhone parts. Apple was down nearly 3 percent at $487.50 after hitting a session low of $485.60, its lowest level since February.


A government report that retail sales rose more than expected in December was seen as a favorable sign for fourth-quarter growth and helped to limit losses. However, a separate report showed manufacturing activity in New York state contracted for the sixth month in a row in January.


Stocks' decline is "in part the result of the weight that Apple has on the market overall, particularly the indexes. It also has a large impact on investor psychology because it has been such a darling and such an overperformer," said Peter Kenny, Managing Director at Knight Capital in Jersey City, New Jersey.


"But the market is shifting some of their focus towards the data release regarding U.S. retail sales where we got a lot more clarity on today."


On Monday, President Barack Obama rejected any negotiations with Republicans over raising the U.S. debt ceiling. The United States could default on its debt if Congress does not increase the borrowing limit.


Resolving the debt ceiling debate is more a question of how than if. Investors don't expect a U.S. default, but they are also wary of another eleventh-hour agreement like the one in August 2011.


"If you were to look at a hurdle, the easiest one to look at is the debt ceiling because it's really going to underscore and underline with bold ink this protracted, institutionalized political battle in Washington," Kenny said.


The Dow Jones industrial average <.dji> dipped 14.45 points, or 0.11 percent, to 13,492.87. The Standard & Poor's 500 Index <.spx> shed 2.47 points, or 0.17 percent, to 1,468.21. The Nasdaq Composite Index <.ixic> lost 14.25 points, or 0.46 percent, to 3,103.25.


An expected lackluster earnings season also kept investors from taking aggressive bets. Analyst estimates for the quarter have fallen sharply since October. S&P 500 earnings growth is now seen up just 1.8 percent from a year ago, Thomson Reuters data showed.


Homebuilder Lennar reported a sharp rise in quarterly profit, but the stock fell 1.8 percent to $40.30 on worries that growth in orders was slowing. The PHLX housing sector index edged down 0.09 percent.


Express Inc surged 20.8 percent to $16.99 as the biggest percentage gainer on the New York Stock Exchange after the apparel retailer raised its fourth-quarter and full year 2012 outlook.


Shares of Dell rose 1.3 percent to $12.45 the day after sources said the company is in talks with private equity firms on a potential buyout.


Facebook added 0.8 percent to $31.18 ahead of a major news event at its headquarters. The secretive nature of the event has triggered a guessing game about what the company could unveil.


(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)



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Oprah: Lance Armstrong admitted doping


AUSTIN, Texas (AP) — Lance Armstrong has finally come clean.


Armstrong confessed to doping during an interview with Oprah Winfrey taped Monday, just a couple of hours after a wrenching apology to staff at the Livestrong charity he founded and has now been forced to surrender.


The day ended with 2 1/2 hours of questions from Winfrey at a downtown Austin hotel, where she said the world's most famous cyclist was "forthcoming" as she asked him in detail about doping allegations that followed him throughout his seven Tour de France victories.


Speaking on "CBS This Morning," Winfrey said Tuesday she had not planned to address Armstrong's confession before the interview aired on her OWN network but, "by the time I left Austin and landed in Chicago, you all had already confirmed it."


"So I'm sitting here now because it's already been confirmed," she added.


The session was to be broadcast on Thursday but Winfrey said it will now run in two parts over two nights because there is so much material.


Winfrey would not characterize whether Armstrong seemed contrite but said he seemed ready for the interview. "I would say that he met the moment," she said.


"I don't think 'emotional' begins to describe the intensity or the difficulty he experienced in talking about some of these things."


The confession was a stunning reversal for a proud athlete and celebrity who sought lavish praise in the court of public opinion and used courtrooms to punish his critics.


For more than a decade, Armstrong dared anybody who challenged his version of events to prove it. Finally, he told the tale himself after promising over the weekend to answer Winfrey's questions "directly, honestly and candidly."


The cyclist was stripped of his Tour titles, lost most of his endorsements and was forced to leave Livestrong last year after the U.S. Anti-Doping Agency issued a damning, 1,000-page report that accused him of masterminding a long-running doping scheme.


The International Cycling Union, or UCI, issued a statement on Tuesday saying it was aware of the reports that Armstrong had confessed to Winfrey. The governing body for the sport urged Armstrong to tell his story to an independent commission it has set up to examine claims it covered up suspicious samples from the cyclist, accepted financial donations from him and helped him avoid detection in doping tests.


Armstrong started Monday with a visit to the headquarters of Livestrong, the charity he founded in 1997 and turned into a global force on the strength of his athletic dominance and personal story of surviving testicular cancer that had spread to his lungs and brain.


About 100 Livestrong staff members gathered in a conference room as Armstrong told them "I'm sorry." He choked up during a 20-minute talk, expressing regret for the long-running controversy tied to performance-enhancers had caused, but stopped short of admitting he used them.


Before he was done, several members were in tears when he urged them to continue the charity's mission, helping cancer patients and their families.


"Heartfelt and sincere," is how Livestrong spokeswoman Katherine McLane described his speech.


Armstrong later huddled with almost a dozen people before stepping into a room set up at a downtown Austin hotel for the interview with Winfrey. The group included close friends and lawyers. They exchanged handshakes and smiles, but declined comment.


Winfrey has promoted her interview, one of the biggest for OWN since she launched the network in 2011, as a "no-holds barred" session, and after the voluminous USADA report — which included testimony from 11 former teammates — she said she went into the session with 112 questions ready to go. Not all of them were asked, she said, but many were.


USADA chief executive Travis Tygart, a longtime critic of Armstrong's, called the drug regimen practiced while Armstrong led the U.S. Postal Service team "the most sophisticated, professionalized and successful doping program that sport has ever seen." USADA did not respond to requests for comment about Armstrong's confession.


For years, Armstrong went after his critics ruthlessly during his reign as cycling champion. He scolded some in public and didn't hesitate to punish outspoken riders during the race itself. He waged legal battles against still others in court.


At least one of his opponents, the London-based Sunday Times, has already filed a lawsuit to recover about $500,000 it paid him to settle a libel case, and Dallas-based SCA Promotions, which tried to deny Armstrong a promised bonus for a Tour de France win, has threatened to bring another lawsuit seeking to recover more than $7.5 million awarded by an arbitration panel.


In Australia, the government of South Australia state said Tuesday it will seek the repayment of several million dollars in appearance fees paid to Armstrong for competing in the Tour Down Under in 2009, 2010 and 2011.


"We'd be more than happy for Mr. Armstrong to make any repayment of monies to us," South Australia Premier Jay Weatherill said.


Betsy Andreu, the wife of former Armstrong teammate Frankie Andreu, was one of the first to publicly accuse Armstrong of using performance-enhancing drugs. She called news of Armstrong's confession "very emotional and very sad," and choked up when asked to comment.


"He used to be one of my husband's best friends and because he wouldn't go along with the doping, he got kicked to the side," she said. "Lance could have a positive impact if he tells the truth on everything. He's got to be completely honest."


Betsy Andreu testified in SCA's arbitration case challenging the bonus in 2005, saying Armstrong admitted in an Indiana hospital room in 1996 that he had taken many performance-enhancing drugs, a claim Armstrong vehemently denied.


"It would be nice if he would come out and say the hospital room happened," Andreu said. "That's where it all started."


Former teammate Floyd Landis, who was stripped of the 2006 Tour de France title for doping, has filed a federal whistle-blower lawsuit that accused Armstrong of defrauding the U.S. Postal Service. An attorney familiar with Armstrong's legal problems told the AP that the Justice Department is highly likely to join the lawsuit. The False Claims Act lawsuit could result in Armstrong paying a substantial amount of money to the U.S. government. The deadline for the department to join the case is Thursday, though the department could seek an extension if necessary.


According to the attorney, who works outside the government, the lawsuit alleges that Armstrong defrauded the U.S. government based on his years of denying use of performance-enhancing drugs. The attorney spoke on condition of anonymity because the source was not authorized to speak on the record about the matter.


The lawsuit most likely to be influenced by a confession might be the Sunday Times case. Potential perjury charges stemming from Armstrong's sworn testimony in the 2005 arbitration fight would not apply because of the statute of limitations. Armstrong was not deposed during the federal investigation that was closed last year.


Armstrong is said to be worth around $100 million. But most sponsors dropped him after USADA's scathing report — at the cost of tens of millions of dollars — and soon after, he left the board of Livestrong.


After the USADA findings, he was also barred from competing in the elite triathlon or running events he participated in after his cycling career. World Anti-Doping Code rules state his lifetime ban cannot be reduced to less than eight years. WADA and U.S. Anti-Doping officials could agree to reduce the ban further depending on what information Armstrong provides and his level of cooperation.


___


Litke reported from Chicago. Pete Yost in Washington also contributed to this report.


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Chevron set to win Lithuanian shale gas license






VILNIUS, Lithuania (AP) — U.S. energy giant Chevron is poised to win a license for shale gas exploration in Lithuania, officials in the Baltic state announced Tuesday.


The license is for a field in western Lithuania, an area near the Baltic Sea where several small firms extract a tiny amount of crude oil. Last year Chevron bought a 50 percent stake in one of these firms, LL Investicijos, which owns a license to a neighboring field. Chevron officials have said they hoped to begin exploration work this year.






For Lithuania, shale gas — a form of natural gas trapped underground in porous rock and difficult to extract — represents a rare opportunity to decrease its energy dependency on Russia, which currently supplies all of the Baltic state’s gas.


Estimates vary, but Juozas Mockevicius, head of the Lithuanian Geological Service, has said that Lithuania could have between 50 billion and 60 billion cubic meters of shale gas reserves, or about 20 years’ worth of gas at the country’s current consumption rates.


“I am sure that foreign companies should be encouraged to come and do the research for shale gas,” Prime Minister Algirdas Butkevicius has told Lithuanian radio.


For Chevron, the Lithuanian tender represents the latest in a string of acquisitions as the company — the second-largest investor-owned oil and gas company in the world — aggressively boosts its international exploration business. In Eastern Europe, Chevron is also exploring for shale gas in Poland and Romania.


Mockevicius said that the winner, which will be officially announced next month, will have to invest 80 million litas ($ 30 million) in the new field.


Local Lithuanian residents and environmentalists are skeptical about the shale gas extraction, which is water-intensive and involves a complicated horizontal drilling procedure known as “fracking.”


“We do not want somebody drilling and spoiling our land when the gas starts to flow,” Jonas Nairanauskas, a resident in the western district of Taurage, told the Lietuvos Rytas daily.


Energy News Headlines – Yahoo! News





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Are gun curbs just symbolism?






STORY HIGHLIGHTS


  • Gun violence recommendations are expected from Vice President Biden on Tuesday

  • The proposals are expected to contain substantive and symbolic ideas to curb gun violence

  • Presidents use symbolism to shift public opinion or affect larger political or social change




Washington (CNN) -- The pictures told the story: Vice President Joe Biden looked solemn, patrician and in control as he sat at a long table in the White House, flanked by people on both sides of the gun control issue.


The images conveyed a sense that the White House was in command on this issue.


And that's the point. Historically, presidential administrations have used symbolic imagery—at times coupled with marginal actions—to shift public opinion or affect larger political or social change.


"Politics is a risk taking project," said Julian Zelizer, a Princeton University historian and CNN contributor. "They put together these commissions in response to some crisis. You try a hundred things and hope something works."


As Biden's gun control task force recommendations land on the desk of President Barack Obama, political experts say it is important that his administration sends a clear signal that it has things in hand.


Obama says gun lobby stokes fear of federal action










That is especially critical in what will likely be an uphill battle to push specific changes, like an assault weapons ban, as part of a broader effort on gun control.


The first move in the image battle will be to appear to move quickly and decisively.


"You have to give the Obama administration credit for one thing: They've learned from history to do things quickly," Larry Sabato, director of the University of Virginia's Center for Politics, said of previous task force initiatives that fizzled.


In 2010, Obama appointed a bipartisan commission headed by former Republican Sen. Alan Simpson of Wyoming and Erskine Bowles, a former Democratic White House chief of staff, to come up with a proposal to balance the budget and cut the debt.


Like the gun task force, Simpson-Bowles reviewed current regulations, gathered input from the public and engaged in tense internal conversations. But after months of working on a proposal—a blend of steep revenue increases and spending cuts—the group struggled to agree to a solution. The president did not take up the recommendations.


Obama largely avoided the issue of gun control during his first term.


He wrote an opinion piece two months after the 2011 assassination attempt on Rep. Gabrielle Giffords of Arizona, acknowledging the importance of the Second Amendment right to bear arms. In the piece he also called for a focus on "effective steps that will actually keep those irresponsible, law-breaking few from getting their hands on a gun in the first place."


Newtown searches for answers a month later


But in the aftermath of that shooting and as the election season loomed, the Justice Department backed off from a list of recommendations that included a measure designed to help keep mentally ill people from getting guns.


For now, at least, there is a sense in Washington that the Newtown, Connecticut, school shooting where 26 people -- 20 of them young children -- were slaughtered could lead to meaningful legislative reform.


Public opinion would seem to suggest that the White House efforts are well timed.


In the month since the massacre, a new poll showed the percentage of Americans who said they were dissatisfied with America's gun laws has spiked.


The Gallup survey released on Monday showed 38% of Americans were dissatisfied with current gun regulations, and wanted stricter laws. That represented 13-point jump from one year ago, when 25% expressed that view. "You want to strike while the iron is hot," Sabato said. "We Americans have short attention spans and, as horrible as the Newtown shooting was, will anyone be surprised if we moved along by spring?"


The White House has since worked overtime to show it considers gun control an urgent matter.


The vice president has spent the last week meeting with what the White House calls "stakeholders" in the gun control debate.


On Monday, Biden was to meet with members of a House Democratic task force on guns, along with Attorney General Eric Holder, Homeland Security Secretary Janet Napolitano, and Kathleen Sebelius, the secretary of Health and Human Services.


Universal background check: What does it mean?


In a series of face to face discussions on Thursday, Biden sat down with the National Rifle Association and other gun owners groups before conferring with representatives from the film and television industry.


In a sign the White House is prepared to move aggressively on its proposals, Biden made public comments just before meeting with the National Rifle Association, the country's most powerful gun lobby.


"Putting the vice president in charge of (the task force) and having him meeting with these groups is intended to show seriousness and an effort to reach out and respond to concerns and wishes of various groups," said Alan Abramowitz, a political science professor at Emory University.


Still, the NRA expressed disappointment in its discussion with Biden and later released a statement that accused the administration of mounting "an agenda to attack the Second Amendment."


Organizations seeking tougher gun control laws insist an assault weapons ban is critical to addressing the nation's recent rash of mass shootings. However, such a ban could be difficult in a Congress mired in gridlock.


"The bully pulpit is limited. It's hard for the president to sustain that momentum," Zelizer said of the White House's gun control efforts after the Newtown shootings. "The thing about symbolism is, like the shock over Newtown, they fade quickly."


Newtown opens eyes to other gun violence against young people


CNN's Jim Acosta and Kevin Liptak contributed to this report






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