Ichiro's patience snaps with Yankees: report

during Game 3 in their MLB ALCS baseball playoff series in Detroit, Michigan, October …more
TOKYO (Reuters) - Japanese outfielder Ichiro Suzuki has lost patience with the New York Yankees over a contract extension and has begun talking with other teams, his agent said on Friday.
The Yankees have been busy locking up their principle pitchers, paying Hiroki Kuroda $15 million, Andy Pettitte $12 million and Mariano Rivera $10 million, drawing frustration from Ichiro.
"At the beginning we talked a lot but since that time, zero," Ichiro's agent Tony Attanasio told Friday's New York Post.
"As far as we are concerned we don't care what the Yankees do. We have had conversations with multiple clubs. If we see something we like he will go through with it."
Only a week ago Attanasio said the 39-year-old outfielder preferred to stay with the Yankees despite interest from several Major League Baseball teams.
Ichiro, who holds MLB's single-season hits record with 262, one of several he set at the Seattle Mariners from 2001-12, had become a fan favorite in New York.
During a seven-game streak in August, Ichiro, Japan's most successful sporting export, batted .526 - going 10 for 19 - and finished .322 for the season in 67 games as a Yankee.
Yankees general manager Brian Cashman refused to rule out Ichiro staying.
"Our focus was first on pitching and see the amount of dollars we needed to secure pitching," said Cashman. "Now we will focus on players who want to talk to us."
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Yankees' Rodriguez to have hip surgery

baseball playoff series against the Detroit Tigers in Detroit, Michigan, October …more
NEW YORK (Reuters) - New York Yankees third baseman Alex Rodriguez will likely miss the start of the 2013 Major League Baseball (MLB) season because of hip surgery, the team said on Monday.
The 37-year-old Rodriguez, MLB's active home runs leader, must complete a four-to-six week pre-rehabilitation regimen before having a left hip arthroscopy in January that will require four to six months of recovery, the Yankees said in a statement.
That means the 14-times All-Star and three-time American League Most Valuable Player, who was benched in the playoffs after struggling at the plate, will likely miss at least the start of the Yankees' season set to begin on April 1.
Doctors believe there is a strong possibility that the hip condition might have had a negative effect on Rodriguez's playoff performance, according to the Yankees.
The surgery to repair a torn labrum, bone impingement and the correction of a cyst is similar but not identical to the one performed on Rodriguez's right hip in 2009, according to the Yankees.
Rodriguez, who has a career 647 home runs, is coming off a disappointing season in which he hit 18 homers, drove in 57 runs and batted .272, and slumped during the postseason with a .120 batting average and no runs batted in.
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Reds land Korean Choo in trade with Indians, D-Backs

(Reuters) - The Cincinnati Reds acquired South Korean outfielder Choo Shin-soo from the Cleveland Indians on Tuesday in a three-team trade that involved nine players.
The 30-year-old Choo, entering the final year of his contract, declined to sign an extension with the Indians and will now give the Reds a potential lead-off hitter who batted .283 with 16 home runs last season.
"He fills the one big void that we had and that was a lead-off hitter and someone with the ability to get on base," Reds General Manager Walt Jocketty told MLB.com.
The Reds also picked up infielder Jason Donald and $3.5 million from Cleveland.
In exchange, the Indians receive outfielder Drew Stubbs and 21-year-old pitching prospect Trevor Bauer from the Reds along with pitchers Matt Albers and Bryan Shaw from the Arizona Diamondbacks.
The Diamondbacks get shortstop Didi Gregorius from Cincinnati along with pitcher Tony Sipp and infielder Lars Anderson from the Indians.
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Thousands rally against gay marriage in France

PARIS (AP) — Hundreds of thousands of protesters are mobilizing against the French president's plan to legalize gay marriage, streaming into Paris by bus, car and specially reserved high-speed train.
Police are expecting about 300,000 people to march toward the Eiffel Tower from three different points in the city, tying up traffic and closing subway stations for hours in what could be the largest demonstration in a decade.
President Francois Hollande has promised to legalize gay marriage, allowing same-sex couples legal protections that would allow them to adopt, among other things.
The proposal has grown increasingly unpopular in France, led by opposition from religious leaders. About 50 percent of French favor legalizing gay marriage, down from as high as 65 percent in August.
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Thousands gather to protest Russia's adoption ban

MOSCOW (AP) — Thousands of people are gathering in central Moscow for a protest against Russia's new law banning Americans from adopting Russian children.
They are carrying posters of President Vladimir Putin and members of Russia's parliament who overwhelmingly voted for the law last month. The posters have the word "Shame" written in red over the faces and proclaim that Sunday's demonstration is a "March Against the Scum" who enacted the law.
Outrage over the adoption ban has breathed new life into the dispirited anti-Kremlin opposition movement, whose protests against Putin and his government have flagged.
The adoption ban was retaliation for a new U.S. law aimed at punishing Russians accused of human rights abuses. Those opposed to the law say its main victims are not Americans but Russian orphans.
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AP Interview: Dane's life as a spy inside al-Qaida

COPENHAGEN, Denmark (AP) — After converting to Islam, a former member of a Danish motorcycle gang travels to Yemen to study the Quran and soon comes in contact with radical preachers waging holy war against the West.
On the verge of becoming a jihadist, he abruptly abandons his faith and embarks on a dangerous undercover mission to help Western intelligence agencies capture or kill terrorists.
Morten Storm, 37, claims he worked for six years as an informant for the CIA, Britain's MI5 and MI6 and Denmark's security service, PET. All declined to comment for this article.
"Could they just say 'he never worked for us'? Sometimes silence is also information," Storm told AP in Copenhagen. "I know this is true, I know what I have done."
Storm's unlikely story, told in a new book and an interview with The Associated Press, has the drama and intrigue of a "Homeland" episode. But the burly, red-bearded Dane insists his tale isn't fiction.
Storm said he decided to reveal his secret-agent life to the media — he first spoke to a Danish newspaper in October — because he felt betrayed by his agent runners.
In particular, he was upset that he wasn't given credit for the airstrike that killed Anwar al-Awlaki, a senior al-Qaida figure, in Yemen in 2011.
Storm claims the CIA won't admit that his work helped them track down the U.S.-born cleric, accused of having inspired the 2009 shootings in Fort Hood, Texas, and the attempted Christmas Day bombing of a jetliner approaching Detroit the same year.
He also claims to have played a role in a series of well-documented anti-terror operations in the past six years by infiltrating extremist mosques in Britain and militant groups in Somalia. He said he often met his handlers in exotic locations and provided a photograph of one such rendezvous with purported PET agents, at a geothermal spa in Iceland.
Another photograph shows a suitcase packed with cash — $250,000 he claims to have received from the CIA for an undercover operation to track down al-Awlaki though that effort ultimately failed.
Bob Ayers, a former U.S. intelligence officer, cast doubt on Storm's claims.
"Just because he claims to have worked for these agencies doesn't mean he was on anyone's payroll, as he almost certainly would not get clearance," said Ayers, who now lives in London. "It is also doubtful that he would have been one of Awlaki's trusted insiders. The only thing less trustworthy than an enemy agent is an enemy agent who has turned."
Storm says he provided information that led to the 2007 arrest in Britain of Hassan Tabbak, a Syrian-born man sentenced to seven years in prison for trying to make bombs in preparation for terrorist attacks.
In his book, "Storm, the Danish agent in al-Qaida," he also says he was involved in an operation targeting Saleh Nabhan, a senior al-Qaida operative killed by Navy SEALs in a helicopter attack inside Somalia in 2010. The book is set for release Monday in Denmark, but Storm gave the AP an advance copy.
The most elaborate operation involved al-Awlaki. In 2009, Storm said, the reclusive cleric asked for his help to find a European wife. Storm made contact on Facebook with a Muslim convert from Croatia named Aminah, who was fascinated with al-Awlaki. Storm said he helped carry encrypted video messages between the soon-to-be spouses on a flash drive, before they decided to meet in Yemen. He provided those video clips to AP.
A tracking device was placed in Aminah's suitcase, but the plan failed when she was told to transfer her belongings to a plastic bag upon arrival in Yemen, Storm said.
However, Storm was sent back to Yemen, he said, supplying various items through a courier to al-Awlaki, who still didn't suspect he was being double-crossed. The Dane believes his work eventually helped the CIA pinpoint al-Awlaki's position.
The Americans "had to crawl back to the Danish intelligence to beg them if I would travel back to Yemen and try to recreate or reestablish the contact, the communication with Anwar," Storm said. "Within four weeks, the contact was up again."
Storm, who hails from Korsoer, 75 miles (120 kilometers) southwest of Copenhagen, has past convictions for bar fights, violence, cigarette smuggling and petty theft stretching back to his early teens. He was a prospective member of the Bandidos bicycle gang before a Muslim jail mate convinced him to convert to Islam in 1997.
Storm said he later spent time with radical Islamists in Britain and Yemen, married a woman from Morocco and named their first son Osama after al-Qaida leader Osama bin Laden.
He wanted to join Islamist militants fighting in Somalia in 2006 but they rebuffed him. Storm said his anger at that rejection turned to doubts about his religion. Soon he had a complete change of heart, he said, and offered his services to PET agents, who put him in touch with their U.S. and British counterparts.
Storm said his relations with the CIA turned sour after he was told that al-Awlaki was killed in a separate operation. In a meeting at a seaside hotel in Denmark, he secretly recorded a conversation about the issue with a man he claims is a CIA officer.
The man Storm identified as Michael said in a recording given to the AP that the U.S. leadership — even President Barack Obama — were thankful for Storm's efforts, but added that "there were a number of other projects" to track down al-Awlaki. Michael said it was like in a soccer game when several players are in a position to a score.
"The other guy could pass it to you, but he didn't. He took the shot, he scores," Michael said. "That's what happened."
Storm wasn't satisfied with that explanation.
After spilling his secrets, Storm says he believes he's now become a potential target not only for al-Qaida, but the CIA.
"I think that when a person potentially could become a liability, it is what is easiest for intelligence services to get rid of their agents and especially people like me," Storm told AP.
He offered no firm evidence to suggest the CIA, or any other agency, had plans to hurt him.
Storm said he now lives at a secret address in Britain.
"I don't regret anything. All I wanted was to fight terrorism and I ended up being the bad guy," he said. "Everyone has won but me. I am happy I was able to save human lives, but obviously I am paying the price for this now.
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Serbia loosens grip over Kosovo

BELGRADE, Serbia (AP) — Serbia on Sunday adopted a set of guidelines for reconciliation talks with the leaders of Kosovo, in a strong first signal it is loosening its claim to its former province in hopes of getting closer to European Union membership.
In a resolution adopted by an overwhelming majority in Parliament, Serbia maintained it will never recognize Kosovo's 2008 declaration of independence. But in a big shift in policy, the document called for wide autonomy for minority Serbs within Kosovo's borders, indirectly recognizing Kosovo's sovereignty and territorial integrity.
While outlining a government plan for the talks with Kosovo's ethnic Albanian leaders, Serbia's Prime Minister Ivica Dacic said "Serbia's sovereignty over Kosovo practically does not exist" since NATO's 1999 bombing campaign chased Serbian troops out of the region.
Kosovo, which is recognized by some 90 countries including the United States and most EU states, is considered by Serbian nationalist the medieval cradle of the Serbian state and the Orthodox religion — something like Jerusalem for the Jews — and they have pledged never to give it up.
But, Dacic warned against "myths and fairytales" over Kosovo and said "we have to create a strong basis to save something."
"If Serbia keeps its head in the sand, it will have nothing to negotiate about," Dacic, who was former President Slobodan Milosevic's spokesman during the Kosovo war, said. "People need results and responsibility, not a policy of honorable failures and lost battles."
The more pragmatic approach to the ongoing talks indicates Serbian desire to get closer to EU membership. The EU said a progress in the talks is crucial for Belgrade to get a starting date for accession negotiations.
Hard-line nationalist lawmakers denounced the resolution, saying it represents "treason" and "a selloff" to the EU.
Serbia's nationalist President Tomislav Nikolic, who initiated the text of the original, more expansive resolution, praised the adoption of the document.
"This was a typical Serbian day in the parliament," Nikolic said, referring to the deep divisions in Serbia over Kosovo and other issues. "We did not reach a complete consensus, but it is clear that there is will to help find a solution to this problem.
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Steroids fallout: No BB Hall for Bonds, Clemens

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

NEW YORK (AP) — Nobody was happier about the Hall of Fame shutout than the Hall of Famers themselves.
Goose Gossage, Al Kaline, Dennis Eckersley and others are in no rush to open the door to Cooperstown for anyone linked to steroids.
Barry Bonds, Roger Clemens, Sammy Sosa: Keep 'em all out of our club.
"If they let these guys in ever — at any point — it's a big black eye for the Hall and for baseball," Gossage said in a phone interview with The Associated Press. "It's like telling our kids you can cheat, you can do whatever you want, and it's not going to matter."
For only the second time in 42 years, baseball writers failed to elect anyone to the Hall of Fame on Wednesday, sending a firm signal that stars of the Steroids Era will be held to a different standard.
All the awards and accomplishments collected over storied careers by Bonds, Clemens and Sosa — all eligible for the first time — could not offset suspicions those exploits were artificially boosted by performance-enhancing drugs.
"I'm kind of glad that nobody got in this year," Kaline said. "I feel honored to be in the Hall of Fame. And I would've felt a little uneasy sitting up there on the stage, listening to some of these new guys talk about how great they were."
Gossage went even further.
"I think the steroids guys that are under suspicion got too many votes," he said. "I don't know why they're making this such a question and why there's so much debate. To me, they cheated. Are we going to reward these guys?"
Not this year, at least.
Bonds received just 36.2 percent of the vote and Clemens 37.6 in totals announced by the Hall and the Baseball Writers' Association of America, both well short of the 75 percent needed for election — yet still too close for Gossage's taste. Sosa, eighth on the career home run list, got 12.5 percent.
"Wow! Baseball writers make a statement," Eckersley wrote on Twitter. "Feels right."
The results keep the sport's career home run leader (Bonds) and most decorated pitcher (Clemens) out of Cooperstown — for now. Bonds, Clemens and Sosa have up to 14 more years on the writers' ballot to gain baseball's highest honor.
"Even having just been considered for the first time is already great honor, and there's always a next time," Sosa said in a statement. "Baseball has been extremely good for me! Kiss to the heaven! It was an honor just to have been nominated. I'm happy about that."
Bonds, baseball's only seven-time MVP, hit 762 home runs — including a record 73 in 2001. He has denied knowingly using performance-enhancing drugs and was convicted of one count of obstruction of justice for giving an evasive answer in 2003 to a grand jury investigating PEDs.
Clemens, the game's lone seven-time Cy Young Award winner, is third in career strikeouts (4,672) and ninth in wins (354). He was acquitted of perjury charges stemming from congressional testimony during which he denied using PEDs.
"If you don't think Roger Clemens cheated, you're burying your head in the sand," Gossage said.
Sosa, who finished with 609 home runs, was among those who tested positive in MLB's 2003 anonymous survey, The New York Times reported in 2009. He told a congressional committee in 2005 that he never took illegal performance-enhancing drugs. He also was caught using a corked bat during his career.
"What really gets me is seeing how some of these players associated with drugs have jumped over many of the greats in our game," Kaline said. "Numbers mean a lot in baseball, maybe more so than in any other sport. And going back to Babe Ruth, and players like Harmon Killebrew and Frank Robinson and Willie Mays, seeing people jump over them with 600, 700 home runs, I don't like to see that.
"I don't know how great some of these players up for election would've been without drugs. But to me, it's cheating," he added. "Numbers are important, but so is integrity and character. Some of these guys might get in someday. But for a year or two, I'm glad they didn't."
Gossage, noting that cyclist Lance Armstrong was stripped of his seven Tour de France titles following allegations that he used performance-enhancing drugs, believes baseball should go just as far. He thinks the record book should be overhauled, taking away the accomplishments of players like Bonds, Sosa, Rafael Palmeiro and Mark McGwire — who has admitted using steroids and human growth hormone during his playing days.
McGwire, 10th on the career home run chart, received 16.9 percent of the vote on his seventh Hall try, down from 19.5 last year.
"I don't know if baseball knows how to deal with this at all," Gossage said. "Why don't they strip these guys of all these numbers? You've got to suffer the consequences. You get caught cheating on a test, you get expelled from school."
Juan Marichal is one Hall of Famer who doesn't see it that way. The former pitcher believes Bonds, Clemens and Sosa belong in Cooperstown.
"I think that they have been unfair to guys who were never found guilty of anything," Marichal said. "Their stats define them as immortals. That's the reality and that cannot be denied."
The BBWAA election rules say "voting shall be based upon the player's record, playing ability, integrity, sportsmanship, character, and contributions to the team(s) on which the player played."
While much of the focus this year was on Bonds, Clemens and Sosa, every other player with Cooperstown credentials was denied, too.
Craig Biggio, 20th on the career list with 3,060 hits, came the closest. He was chosen on 68.2 percent of the 569 ballots, 39 shy of election. Among other first-year eligibles, Mike Piazza received 57.8 percent and Curt Schilling 38.8. Jack Morris topped holdovers with 67.7 percent.
None of those players have been publicly linked to PED use, so it's difficult to determine whether they fell short due to suspicion, their stats — or the overall stench of the era they played in.
"What we're witnessing here is innocent people paying for the sinners," Marichal said.
Hall of Fame slugger Mike Schmidt said that comes with the territory.
"It's not news that Bonds, Clemens, Sosa, Palmeiro, and McGwire didn't get in, but that they received hardly any consideration at all. The real news is that Biggio and Piazza were well under the 75 percent needed," Schmidt wrote in an email to the AP.
"Curt Schilling made a good point. Everyone was guilty. Either you used PEDs, or you did nothing to stop their use. This generation got rich. Seems there was a price to pay."
At ceremonies in Cooperstown on July 28, the only inductees will be three men who died more than 70 years ago: Yankees owner Jacob Ruppert, umpire Hank O'Day and barehanded catcher Deacon White. They were chosen last month by the 16-member panel considering individuals from the era before integration in 1947.
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AP Baseball Writer Ben Walker, AP Sports Writers Ronald Blum and Dan Gelston, and AP freelance writer Dionisio Soldevila contributed to this report.
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Baseball-MLB, players agree to expand drug testing

Jan 10 (Reuters) - Major League Baseball and the players' union have agreed to expand their drug program to include random in-season blood testing for human growth hormone and a new test for testosterone, they said on Thursday.
The testing will start this season.
MLB has been conducting random blood testing for the detection of HGH among minor league players since July 2010.
Starting this season, the World Anti-Doping Agency (WADA)-accredited Montreal laboratory will establish a program in which a player's baseline testosterone/epitestosterone (T/E) ratio and other data will be maintained in order to enhance its ability to detect use of testosterone and other prohibited substances.
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British retailers start online sales early

REUTERS/Paul Hackett
LONDON (Reuters) - British retailers have brought forward their Christmas clearance sales online in the hope that shoppers will log on to buy bargains and offset lackluster spending in stores.
Marks & Spencer launched its sale online at midday on Monday, it said on its website, while department store John Lewis said it would cut online prices when its stores close at 1700 GMT. Debenhams has already started its online sale.
Retailers in recent years have started sales online on Christmas Day, ahead of the clearances in stores from Boxing Day, but are increasingly launching their online offers before Christmas after delivery deadlines for the day have passed.
Hard-pressed shoppers have been leaving it later to buy presents in the hope that retailers would slash prices, the British Retail Consortium said.
It was forecasting that 5 billion pounds ($8.1 billion) would be spent in the shops on Saturday and Sunday combined, the last weekend before Christmas.
Richard Dodd, the BRC's head of Media and Campaigns, said weekend trading had met expectations.
"Christmas, ultimately once all the final sums are done, will turn out to be acceptable but not exceptional," he said.
He said the sector expected a modest increase in cash spending against a year go, but not necessarily any significant increase in real terms once inflation was stripped out.
Many British families' budgets are stretched, according to a survey from Markit that showed the biggest deterioration in household finances for seven months.
Analyst Howard Archer at IHS Global Insight said the weakening in household finances could not come at a worse time for retailers, and it highlighted why many people appeared to have been careful in their Christmas shopping this year.
"The suspicion has to be that consumers will be especially keen to take advantage of genuine major bargains in the sales to acquire items that they cannot otherwise afford or are reluctant to make at the moment," he said.
"However, we suspect that people will likely to be more careful in buying - or reluctant to buy - items that they don't really want or need in the sales."
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China may require real name registration for internet access

BEIJING (Reuters) - China may require internet users to register with their real names when signing up to network providers, state media said on Tuesday, extending a policy already in force with microblogs in a bid to curb what officials call rumors and vulgarity.
A law being discussed this week would mean people would have to present their government-issued identity cards when signing contracts for fixed line and mobile internet access, state-run newspapers said.
"The law should escort the development of the internet to protect people's interest," Communist Party mouthpiece the People's Daily said in a front page commentary, echoing similar calls carried in state media over the past week.
"Only that way can our internet be healthier, more cultured and safer."
Many users say the restrictions are clearly aimed at further muzzling the often scathing, raucous - and perhaps most significantly, anonymous - online chatter in a country where the Internet offers a rare opportunity for open debate.
It could also prevent people from exposing corruption online if they fear retribution from officials, said some users.
It was unclear how the rules would be different from existing regulations as state media has provided only vague details and in practice customers have long had to present identity papers when signing contracts with internet providers.
Earlier this year, the government began forcing users of Sina Corp's wildly successful Weibo microblogging platform to register their real names.
The government says such a system is needed to prevent people making malicious and anonymous accusations online and that many other countries already have such rules.
"It would also be the biggest step backwards since 1989," wrote one indignant Weibo user, in apparent reference to the 1989 pro-democracy protests bloodily suppressed by the army.
Chinese internet users have long had to cope with extensive censorship, especially over politically sensitive topics like human rights, and popular foreign sites Facebook, Twitter and Google-owned YouTube are blocked.
Despite periodic calls for political reform, the ruling Communist Party has shown no sign of loosening its grip on power and brooks no dissent to its authority.
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Tajikistan blocks scores of websites as election looms

DUSHANBE (Reuters) - Tajikistan blocked access to more than 100 websites on Tuesday, in what a government source said was a dress rehearsal for a crackdown on online dissent before next year's election when President Imomali Rakhmon will again run for office.
Rakhmon, a 60-year-old former head of a Soviet cotton farm, has ruled the impoverished Central Asian nation of 7.5 million for 20 years. He has overseen constitutional amendments that allow him to seek a new seven-year term in November 2013.
The Internet remains the main platform where Tajiks can air grievances and criticize government policies at a time when the circulation of local newspapers is tiny and television is tightly controlled by the state.
Tajikistan's state communications service blocked 131 local and foreign Internet sites "for technical and maintenance works".
"Most probably, these works will be over in a week," Tatyana Kholmurodova, deputy head of the service, told Reuters. She declined to give the reason for the work, which cover even some sites with servers located abroad.
The blocked resources included Russia's popular social networking sites www.my.mail.ru and VKontakte (www.vk.com), as well as Tajik news site TJKnews.com and several local blogs.
"The government has ordered the communications service to test their ability to block dozens of sites at once, should such a need arise," a senior government official told Reuters on condition of anonymity.
"It is all about November 2013," he said, in a clear reference to the presidential election.
Other blocked websites included a Ukrainian soccer site, a Tajik rap music site, several local video-sharing sites and a pornography site.
VOLATILE NATION
Predominantly Muslim Tajikistan, which lies on a major transit route for Afghan drugs to Europe and Russia, remains volatile after a 1992-97 civil war in which Rakhmon's Moscow-backed secular government clashed with Islamist guerrillas.
Rakhmon justifies his authoritarian methods by saying he wants to oppose radical Islam. But some of his critics argue repression and poverty push many young Tajiks to embrace it.
Tighter Internet controls echo measures taken by other former Soviet republics of Central Asia, where authoritarian rulers are wary of the role social media played in revolutions in the Arab world and mass protests in Russia.
The government this year set up a volunteer-run body to monitor Internet use and reprimand those who openly criticize Rakhmon and other officials.
In November, Tajikistan blocked access to Facebook, saying it was spreading "mud and slander" about its veteran leader.
The authorities unblocked Facebook after concern was expressed by the United States and European Union, the main providers of humanitarian aid for Tajikistan, where almost a half of the population lives in abject poverty.
Asomiddin Asoyev, head of Tajikistan's association of Internet providers, said authorities were trying to create an illusion that there were no problems in Tajik society by silencing online criticism.
"This is self-deception," he told Reuters. "The best way of resolving a problem is its open discussion with civil society."
Moscow-based Central Asia expert Arkady Dubnov told Reuters that Rakhmon's authoritarian measures could lead to a backlash against the president in the election. "Trying to position itself as the main guarantor of stability through repression against Islamist activists, the Dushanbe government is actually achieving the reverse - people's trust in it is falling," he said.
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Netflix suffers Christmas Eve outage, points to Amazon

NEW YORK (Reuters) - An outage at one of Amazon's web service centers hit users of Netflix Inc.'s streaming video service on Christmas Eve and was not fully resolved until Christmas day, a spokesman for the movie rental company said on Tuesday.
The outage impacted Netflix subscribers across Canada, Latin America and the United States, and affected various devices that enable users to stream movies and television shows from home, Netflix spokesman Joris Evers said. Such devices range from gaming consoles such as Nintendo Wii and PlayStation 3 to Blu-ray players.
Evers said that the issue was the result of an outage at an Amazon Web Services' cloud computing center in Virginia, and started at about 12:30 p.m. PST (2030 GMT) on Monday and was fully restored Tuesday morning, although streaming was available for most users late on Monday.
"We are investigating exactly what happened and how it could have been prevented," Evers said.
"We are happy that people opening gifts of Netflix or Netflix capable devices can watch TV shows and movies and apologize for any inconvenience caused last night," he added.
An outage at Amazon Web Services, or AWS, knocked out such sites as Reddit and Foursquare in April of last year.
Amazon Web Services was not immediately available for comment. Evers, the Netflix spokesman, declined to comment on the company's contracts with Amazon.
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Netflix blames Amazon for Christmas Eve outage

NEW YORK (Reuters) - An outage at one of Amazon's web service centers hit users of Netflix Inc's streaming video service on Christmas Eve and was not fully resolved until Christmas Day, a spokesman for the movie rental company said on Tuesday.
The outage impacted Netflix subscribers across Canada, Latin America and the United States, and affected various devices that enable users to stream movies and television shows from home, Netflix spokesman Joris Evers said. Such devices range from gaming consoles like the Nintendo Wii and PlayStation 3 to Blu-ray DVD players.
Netflix, which is based in Los Gatos, California, has 30 million streaming subscribers worldwide, of which more than 27 million are in the Americas region that was exposed to the outage and could have potentially been affected, Evers said.
Evers said the issue was the result of an outage at an Amazon Web Services' cloud computing center in Virginia and started at about 12:30 p.m. PST (2030 GMT) on Monday and was fully restored before 8:00 a.m. PST Tuesday morning, although streaming was available for most users by 11:00 p.m. PST on Monday.
The event marks the latest in a series of outages from Amazon Web Services, with one occurring in April of last year that knocked out such sites as Reddit and Foursquare.
"We are investigating exactly what happened and how it could have been prevented," Evers of Netflix said.
"We are happy that people opening gifts of Netflix or Netflix capable devices can watch TV shows and movies and apologize for any inconvenience caused last night," he added.
Officials at Amazon Web Services were not available for comment. Evers, the Netflix spokesman, declined to comment on the company's contracts with Amazon.
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Markets rise as Alcoa sees stronger demand

LONDON (AP) — World stock markets rose Wednesday after the fourth-quarter earnings season got off to a positive start in the U.S. with aluminum giant Alcoa forecasting higher demand for 2013.
Sales of aluminum have been hurt by the weak global economy, but Alcoa predicted a 7 percent increase in demand this year, slightly better than the 6 percent increase in 2012. Because Alcoa supplies so many key industries, investors study its results for clues about the health and direction of the overall economy.
"Regional markets are mostly firmer after the Alcoa result set the tone early," said Stan Shamu of IG Markets in Melbourne in a market commentary. "Alcoa's results are generally considered a bellwether for the global economy and the fact that the aluminum giant forecasts higher demand in 2013 appeased investors."
Britain's FTSE 100 rise 1 percent to close at 6,098.65, having earlier traded above 6,100 for the first time since the spring of 2008. France's CAC-40 rose 0.3 percent to 3,717.45.
Germany's DAX ended 0.3 percent higher at 7,720.47, after official figures showed industrial production rose less than expected in November. The 0.2 percent gain was also not enough to offset a 2 percent fall the previous month and means German economic output overall likely fell in the fourth quarter.
Investors will look forward to a monetary policy meeting by the European Central Bank on Thursday for clues on whether the weakening economic outlook is likely to trigger an interest rate cut in the coming months.
On Wall Street, stocks rose as investors there got their first chance to react to the Alcoa results. The Dow Jones industrial average was up 0.6 percent at 13,414.66 while the S&P 500 rose 0.4 percent to 1,463.59.
In Asia, Hong Kong's Hang Seng advanced 0.5 percent to 23,218.47 after a downturn in the prior session, with sentiment helped by gains in mainland Chinese shares.
"Stability in China is helping. We are taking a lot of cues from China-Asia," said Jackson Wong, vice-president of Tanrich Securities in Hong Kong.
Japan's Nikkei 225 index opened lower on a strengthening yen but reversed course as the currency slipped against the dollar. The benchmark in Tokyo gained 0.7 percent to close at 10,578.57.
Australia's S&P/ASX 200 added 0.4 percent to 4,708.10. South Korea's Kopsi was 0.3 percent lower at 1,991.20. Benchmarks in Singapore, Taiwan, Thailand, and the Philippines rose. Indonesia and Malaysia fell. Mainland Chinese stocks were mixed.
Major indexes surged last week after U.S. lawmakers passed a bill to avoid a combination of government spending cuts and tax increases that have come to be known as the fiscal cliff. The deal, however, remains incomplete, and trading has been cautious since then. Politicians will face another deadline in two months to agree on more spending cuts.
In commodity markets, the benchmark crude oil contract for February delivery was down 13 cents to $93.02 per barrel in electronic trading on the New York Mercantile Exchange.
In currencies, the euro fell 0.1 percent to $1.3072 while the dollar rose against the Japanese yen, to 87.92 yen from 87.19 yen.
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Wall Street gains as earnings flow in; Alcoa up

NEW YORK (AP) — Stocks rose on Wall Street Wednesday after U.S. corporate earnings reports got off to a good start.
The Dow Jones industrial average rose 57 points to 13,396 as of 2:12 p.m. EST. The Dow is coming off of two days of losses.
The Standard & Poor's 500 index gained four points to 1,461 and the Nasdaq composite rose 16 points to 3,108.
Having rallied after a last-minute resolution stopped the U.S. going from over the "fiscal cliff," stocks are facing their first big challenge of the year as companies start to report earnings for the fourth quarter of 2012. Throughout last year, analysts cut their outlook for earnings growth in the period and now expect them to rise by 3.21 percent, according to data from S&P Capital IQ.
"Maybe earnings expectations were a little too low," said Ryan Detrick, a strategist at Schaeffer's Investment Research. "You don't need to have great earnings, you just need to beat those expectations" for stocks to rally, Detrick said.
Alcoa predicted rising demand for aluminum this year as the aerospace industry gains strength. Late Tuesday the company reported fourth-quarter revenue that beat analysts' estimates. Investors pay close attention to Alcoa's results and forecasts because the aluminum it makes is used in so many industries including construction and manufacturing.
Boeing was the biggest gainer of the 30 stocks in the Dow, accounting for 17 points of the Dow's increase. Boeing jumped $2.34 to $76.47 following two days of sharp declines triggered by new problems for its 787 Dreamliner. Boeing said it has "extreme confidence" in the plane even as federal investigators try to determine the cause of a fire Monday aboard an empty Japan Airlines plane in Boston and a fuel leak at another JAL 787 on Tuesday.
Consumer products maker Helen of Troy, whose brands include Dr. Scholl's, Vicks and Fabreze, rose 89 cents to $34.42 after reporting a 15 percent increase in net income. Agricultural products giant Monsanto gained 84 cents to $99.34 after it said that its profit nearly tripled in the first fiscal quarter as sales of its biotech corn seeds expanded in Latin America.
The yield on the 10-year Treasury note edged down to 1.86 percent from 1.87 percent.
Among other stocks making big moves:
— Wireless network operator Clearwire jumped 22 cents to $3.14 after Dish network made an unsolicited offer to buy the company, which has already agreed to sell itself to Sprint. Dish rose $1.17 to $37.14 and Sprint fell 8 cents to $5.89.
— Online education company Apollo Group plunged 6 percent after reporting a sharp decline in fall-term student sign-ups at the University of Phoenix. The stock fell $1.18 to $19.76.
— Seagate Technology, a maker of hard-disk drives, jumped $1.72 to $33.12 after predicting revenue for its fiscal second quarter that topped Wall Street expectations late Tuesday.
— Bank of America fell 47 cents to $11.51 after Credit Suisse analysts lowered their outlook on the lender to "neutral" for "outperform," saying the current stock price overestimates the improvement in cost reduction that the bank can achieve this year.
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Wall Street gains as earnings flow in; Boeing up

NEW YORK (AP) — Stocks rose on Wall Street Wednesday after U.S. corporate earnings reports got off to a good start.
The Dow Jones industrial average climbed 61.66 points to 13,390.51, its first gain of the week. The Standard & Poor's 500 index gained 3.87 points to 1,461.02, and the Nasdaq composite rose 14 to 3,105.81.
Having rallied after a last-minute resolution stopped the U.S. from going over the "fiscal cliff," stocks are facing their first big challenge of the year as companies start to report earnings for the fourth quarter of 2012. Throughout last year, analysts cut their outlook for earnings growth in the period and now expect them to rise by 3.21 percent, according to data from S&P Capital IQ.
"Maybe earnings expectations were a little too low," said Ryan Detrick, a strategist at Schaeffer's Investment Research. "You don't need to have great earnings, you just need to beat those expectations" for stocks to rally, Detrick said.
Early indications were decent. Aluminum maker Alcoa reported late Tuesday that it swung to a profit for the fourth quarter, with earnings that met Wall Street's expectations. The company brought in more revenue than analysts had expected, and the company also predicted rising demand for aluminum this year as the aerospace industry gains strength. Alcoa is usually the first Dow component to report earnings every quarter.
Despite the better revenue number, Alcoa's stock performance Wednesday was lackluster. It traded higher for part of the day then ended down 2 cents at $9.08.
Other companies fared better after reporting earnings. Helen of Troy, which sells personal care products under brands including Dr. Scholl's and Vidal Sassoon, rose 2.7 percent, up 90 cents to $34.43 after reporting a 15 percent increase in quarterly net income.
Boeing was the biggest gainer of the 30 stocks in the Dow. It jumped 3.5 percent, up $2.63 to $76.76, following two days of sharp declines triggered by new problems for its 787 Dreamliner. Boeing said it has "extreme confidence" in the plane even as federal investigators try to determine the cause of a fire Monday aboard an empty Japan Airlines plane in Boston and a fuel leak at another JAL 787 on Tuesday.
The yield on the 10-year Treasury note edged down to 1.86 percent from 1.87 percent.
Among other stocks making big moves:
— Wireless network operator Clearwire jumped 7.2 percent, or 21 cents, to $3.13, after Dish network made an unsolicited offer to buy the company, which has already agreed to sell itself to Sprint. Dish rose 88 cents to $36.85, and Sprint fell 9 cents to $5.88.
— Online education company Apollo Group plunged 7.8 percent after reporting a sharp decline in fall-term student sign-ups at the University of Phoenix. The stock fell $1.63 to $19.32.
— Seagate Technology, a maker of hard-disk drives, jumped 6.6 percent, up $2.09 to $33.48, after predicting revenue for its fiscal second quarter that topped Wall Street expectations late Tuesday.
— Bank of America fell 4.6 percent, down 55 cents to $11.43, after Credit Suisse analysts lowered their outlook on the bank to "neutral" for "outperform," saying the current stock price overestimates the improvement in cost reduction that the bank can achieve this year.
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Oakley challenges Nike over McIlroy move

American sunglasses maker Oakley has launched legal action to try to retain its sponsorship of world number one golfer Rory McIlroy who is set to become the new face of sportswear giant Nike.
U.S. PGA champion McIlroy is poised to rubber-stamp a 10-year deal with U.S. company Nike worth as much as $250 million, according to media reports.
Nike is set to supply the 23-year-old Northern Irishman's clubs and have its name or logo on his clothing in an exclusive deal.
However, Oakley, owned by Italy's Luxottica, is challenging the move and started legal action in its home state of California last month.
"Oakley's contract with Rory has a right of first refusal that permits us to retain Rory as an Oakley endorser by matching any offer he receives covering our products," the company said in a statement to Reuters.
"These types of provisions are common in the industry. Oakley values Rory and will do all it can to retain him," it added.
The Dubai-based hotel company Jumeirah Group confirmed earlier on Tuesday that its five-year sponsorship with 2011 U.S. Open champion McIlroy had ended, the latest indication that confirmation of the Nike deal was imminent.
"Jumeirah became my first corporate sponsor when I turned professional back in 2007 and I would like to thank everyone at the company for their support in helping me become the player I am today," McIlroy said in a news release.
The player, who topped the money-lists on both sides of the Atlantic last year, said in November he did not think that ditching the Titleist clubs that have taken him to the top of the sport would affect his game.
Nike is hoping a partnership with the clean-cut McIlroy will help it to move on after it dropped disgraced cyclist Lance Armstrong last year over his doping scandal.
The company stuck with former world number one golfer Tiger Woods despite the bad publicity the American suffered when a series of extra-marital affairs were exposed in 2009.
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Institute of Medicine to study U.S. youth sports concussions

WASHINGTON (Reuters) - The Institute of Medicine launched on Monday a sweeping study of rising sports-related concussions among U.S. youth, amid concerns that the injuries may have contributed to the suicides of professional football players.
The Institute, part of the private, non-profit National Academies, will probe sports-related concussions in young people from elementary school through early adulthood. The study will include military personnel and their dependants, and review concussions and risk factors.
The study, one of the most extensive ever done, will be scrutinized intently by Americans worried about brain injuries in sports, said Robert Graham, head of the panel carrying out the study.
"You start talking about, 'Is it safe for Sally to be playing soccer?,' you get lots of public interest," Graham, a public health expert at George Washington University in Washington, told Reuters after the committee's first meeting.
He said the panel likely would submit its report to the Institute of Medicine in the middle of the summer, with publication expected in late 2013.
A 2010 study by the U.S. Centers for Disease Control and Prevention (CDC) found that U.S. emergency rooms yearly treat 173,000 temporary brain injuries, including concussions, related to sports or recreation among people less than 19 years of age.
The number of emergency room visits for such injuries rose 60 percent in the previous decade among children and adolescents, the CDC study showed.
A separate 2007 study showed that the incidence of brain injury was highest in football and girls' soccer.
About 2,000 former National Football League players sued the league last year, alleging it concealed the risk of brain injury from players while marketing the ferocity of the game.
Concerns about a possible link between concussions and mental illnesses, such as depression, grew in the wake of the suicides of former NFL players Junior Seau, Ray Easterling and Dave Duerson in the last two years.
Participants at the committee's meeting said there was a shortage of data on sports-related concussions among young people. The number of relevant brains available for study is in the single digits, and many studies lack breakdowns by age.
Sponsors of the study include the Department of Defense, the CDC and the National Institutes of Health. The panel will also examine studies being done by the CDC and the American Academy of Neurology.
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Jets sack offensive coordinator Sparano after losing season

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

NEW YORK, Jan 6 (Reuters) - Investors' "fiscal cliff"
worries are likely to give way to more fundamental concerns,
such as earnings, as fourth-quarter reports get under way this
week.
Financial results, which begin after the market closes on
Tuesday with aluminum company Alcoa, are expected to be
only slightly better than the third-quarter's lackluster
results. As a warning sign, analysts' current estimates are down
sharply from what they were in October.
That could set stocks up for more volatility following a
week of sharp gains that put the Standard & Poor's 500 index
on Friday at the highest close since Dec. 31, 2007. The
index also registered its biggest weekly percentage gain in more
than a year.
Based on a Reuters analysis, Europe ranks among the chief
concerns cited by companies that warned on fourth-quarter
results. Uncertainty about the region and its weak economic
outlook were cited by more than half of the 25 largest S&P 500
companies that issued warnings.
In the most recent earnings conference calls, macroeconomic
worries were cited by 10 companies while the U.S. "fiscal cliff"
was cited by at least nine as reasons for their earnings
warnings.
"The number of things that could go wrong isn't so high, but
the magnitude of how wrong they could go is what's worrisome,"
said Kurt Winters, senior portfolio manager for Whitebox Mutual
Funds in Minneapolis.
Negative-to-positive guidance by S&P 500 companies for the
fourth quarter was 3.6 to 1, the second-worst since the third
quarter of 2001, according to Thomson Reuters data.
U.S. lawmakers narrowly averted the "fiscal cliff" by coming
to a last-minute agreement on a bill to avoid steep tax
increases last week - driving the rally in stocks - but the
battle over additional spending cuts is expected to resume in
two months.
Investors also have seen a revival of worries about Europe's
sovereign debt problems, with Moody's in November downgrading
France's credit rating and debt crises looming for Spain and
other countries.
"You have a recession in Europe as a base case. Europe is
still the biggest trading partner with a lot of U.S. companies,
and it's still a big chunk of global capital spending," said
Adam Parker, chief U.S. equity strategist at Morgan Stanley in
New York.
Among companies citing worries about Europe was eBay
, whose chief financial officer, Bob Swan, spoke of
"macro pressures from Europe" on the company's October earnings
conference call.
REVENUE WORRIES
One of the biggest worries voiced about earnings has been
whether companies will be able to continue to boost profit
growth despite relatively weak revenue growth.
S&P 500 revenue fell 0.8 percent in the third quarter for
the first decline since the third quarter of 2009, Thomson
Reuters data showed. Earnings growth for the quarter was a
paltry 0.1 percent after briefly dipping into negative
territory.
On top of that, just 40 percent of S&P 500 companies beat
revenue expectations in the third quarter, while 64.2 percent
beat earnings estimates, the Thomson Reuters data showed.
For the fourth quarter, estimates are slightly better but
are well off estimates from just a few months earlier. S&P 500
earnings are expected to have risen 2.8 percent while revenue is
expected to have gone up 1.9 percent.
In October, earnings growth for the fourth quarter was
forecast up 9.9 percent.
In spite of the cautious outlooks, some analysts still see a
good chance for earnings beats this reporting period.
"The thinking is you need top-line growth for earnings to
continue to expand, and we've seen the market defy that," said
Mike Jackson, founder of Denver-based investment firm T3 Equity
Labs.
Based on his analysis, energy, industrials and consumer
discretionary are the S&P sectors most likely to beat earnings
expectations in the upcoming season, while consumer staples,
materials and utilities are the least likely to beat, Jackson
said.
Sounding a positive note on Friday, drugmaker Eli Lilly and
Co said it expects profit in 2013 to increase more than
Wall Street had been forecasting, primarily due to cost controls
and improved productivity.
(Wall Street Week Ahead moves every Sunday. Comments or
questions on this one can be sent to
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Wall Street cheers "cliff" deal, but only for now

When lawmakers delivered a long-delayed, last-minute agreement on the budget, Wall Street celebrated. And it would be easy to think that the surge in the Dow the following day meant that investors had put their concerns about Washington's political gridlock behind them.
The Dow Jones industrial average surged on the news, but that doesn't mean the volatility is over. In fact, there could be more turmoil in the market soon because decisions on cutting the federal budget deficit have been put off until March, when the government will reach its borrowing limit. Republicans have already said they will demand cuts to spending as a condition for extending the limit.
"The uncertainty is still there, the key issues are spending cuts and entitlement reforms and, for the most part, those were not addressed," says Terry Sandven, chief equities strategist at U.S. Bank Wealth Management. "This sets the stage for sharper rhetoric and increased market volatility as these discussions evolve."
The last time lawmakers tussled over the debt limit, the stock market plunged and the U.S. government lost its AAA debt rating. The Dow fell almost 7 percent in the two weeks before an agreement was reached Aug. 3, 2011.
Many business leaders objected to the agreement lawmakers reached late Tuesday. The Business Roundtable, an association of chief executive officers of leading U.S. companies, said that although it addressed some of the immediate negative consequences that the economy would have faced going over the "fiscal cliff," it failed to address the "serious and fundamental" reforms the economy needs. The National Retail Federation said that the deal was welcome, though it was only the first step in necessary tax reform.
Companies are likely to remain wary of investing until they get more clarity from Washington, says Joe Heider, a principal at Rehmann Financial in Cleveland, Ohio. He likens the current U.S. business climate to a sporting event where the referees tell the players to take the field before telling them that the rules of the game will only be decided on once the final whistle has been blown.
"Washington needs to get out of the way of the financial markets and American business," said Heider. "They need to create some certainty over how businesses should best deploy all the cash that they're sitting on."
And corporations are sitting on a lot of cash. Companies have been steadily building up their reserves over the last five years and are now sitting on record cash piles. By the end of the third quarter of last year, S&P 500 companies had accumulated more than $1 trillion in cash, according to data from S&P Dow Jones Indices.
At least for now, companies are unlikely to invest much of that money back into their businesses simply because demand just isn't strong enough, says U.S. Bank's Sandven. Instead they will spend it on acquisitions, stock buy-backs and pay higher dividends. Those are all actions that should boost stock prices in the near term, despite the ongoing uncertainty and increased volatility that will be caused by political wrangling.
Investors should take advantage of any volatility in the market created by the political wrangling to seek out stocks that have a history of growing their dividends, says Sandven. He estimates that half of the stocks in the S&P 500 have a dividend yield that is higher than the current 10-year U.S. Treasury note. The 10-year Treasury note was at 1.90 percent Friday.
He also recommends that investors buy the stocks of companies that have exposure to emerging markets that have a growing middle class and don't have the same debt issues as the U.S.
Joseph Tanious, a global markets strategist at J.P. Morgan Funds, says investors would be wise to remain calm when the negotiations in Washington around the debt ceiling start to heat up this spring.
The stock market dropped sharply in the weeks after the election Nov. 6 as investors worried that a divided government wouldn't get a deal done in time to meet a budget deadline by the end of the year, but it has rebounded since then. The S&P 500 is now 2 percent higher than it was on election day, even after falling by as much as 5 percent in the two weeks following the vote. On Friday it closed at 1,466, the highest since December 2007.
"When push came to shove, Congress did come together to reach an agreement," says Tanious. "Many people were saying you should be out of the market ... (that) markets are going to capitulate, and that didn't happen."
Stocks have rallied over the last three years as investors remain optimistic that the economy will maintain a slow, but steady, recovery from recession, as the housing market improves and as the outlook for jobs gets better.
And while investors also see the wisdom in addressing the nation's long-term debt problems, they point out that businesses and consumers have been aggressively paying down their own debts in the aftermath of the 2008 financial crisis. That leaves more flexibility for people and companies to shop, invest, and spend money, helping to lift the economy — and the stock market — even if Washington's political dysfunction worsens.
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Analysis - U.S. fiscal crisis seen hurting tech earnings

Warning to investors: major U.S. technology companies could miss estimates for fourth-quarter earnings as "fiscal cliff" worries likely led some corporate clients to tighten their belts last month and refrain from spending all of their 2012 IT budgets.
Tech companies usually enjoy a spike in orders in December as corporations use money left over in their budgets to buy goods on their wish lists - information technology products that are nice to have, rather than essential.
But the so-called year-end budget flush was not as deep in 2012 as in typical years, according to tech analysts and other experts citing conversations with corporate technology buyers and sales sources. They said companies held back on IT purchases in December in part because of Washington's protracted negotiations to avoid the fiscal cliff, which is a package of automatic tax hikes and spending cuts that could have pushed the already soft U.S. economy into recession.
It took until late on January 1 for House Republican lawmakers led by John Boehner to agree to a bill to avert the cliff, which President Barack Obama signed into law the next day.
"CIOs and CFOs were not making investments," said Andrew Bartels, an analyst with Forrester Research who advises corporate technology buyers. "If Boehner and Obama had been able to strike a deal by around December 15, we would have had end-of-quarter investments."
Analysts say they expect tech spending to remain subdued through at least the first quarter, as businesses wait to see if Congress can resolve another looming fiscal fight, this time over the debt ceiling and federal spending cuts.
Wall Street has already significantly lowered expectations for the tech sector, which has been underperforming the overall market.
The Street now expects tech companies in the S&P 500 to report a 1.0 percent drop in fourth-quarter earnings, against an average 2.8 percent rise for companies in the full S&P 500. Three months ago, analysts were expecting tech sector earnings to rise 9.4 percent in the fourth quarter, according to Thomson Reuters I/B/E/S.
First-quarter tech profit growth estimates have also been lowered to 2.6 percent, from 9 percent three months ago, according to Thomson Reuters I/B/E/S.
Greg Harrison, a corporate earnings research analyst with Thomson Reuters, said he expects analysts will cut their predictions further after tech companies report fourth-quarter results.
Intel Corp will report its quarterly earnings on January 17, the first of a group of big tech companies reliant on enterprise spending. Intel will be followed by IBM, Microsoft Corp and EMC Corp later in January. Cisco Systems Inc, Dell Inc and Hewlett-Packard Co close their quarterly books in about a month.
Mark Luschini, chief investment strategist at Janney Montgomery Scott, which manages about $54 billion (33.7 billion pounds), said he generally expects fourth-quarter tech results to disappoint, but has yet to determine by how much.
He expects the sluggish performance to continue into the first quarter, then improve in the second half of the year, assuming Democrats and Republicans reach a deal on the debt ceiling and spending cuts.
"So far we only have one piece," he said of the fiscal cliff deal.
USE IT OR LOSE IT
Even if Washington politicians eventually resolve their differences over fiscal issues, that is not expected to fully restore losses already caused to tech spending, experts said.
Technology projects that were axed at the end of last year will not likely be resumed any time soon because annual tech budgets are allocated on a "use it or lose it" basis, according to experts who advise companies on technology investments.
"These budgets are based on how the business is doing at the time. All of these are postponable decisions," said Howard Anderson, a senior lecturer at the MIT Sloan School of Management and frequent adviser to chief investment officers at Fortune 500 companies.
Analysts said that makers of hardware, from computers to networking gear, likely missed out on the year-end budget flush because businesses can postpone upgrades for years by buying new software that is compatible with older equipment.
They said they expect some companies to have postponed the purchase of new PCs in the fourth quarter, which could hit the results of Windows and Office maker Microsoft, along with PC makers Dell and HP, as well as chipmakers Intel and Advanced Micro Devices Inc.
Nucleus Research analyst Rebecca Wettemann said some businesses likely delayed buying new PCs to avoid having to upgrade to Windows 8, which was introduced late last year.
"A new operating system causes huge disruptions for businesses," she said. "Who wants to take that on in the face of all the other uncertainty?"
Microsoft, Dell, HP and Intel declined to comment. AMD did not return requests for comment.
Beyond concerns about the U.S. economy, corporate IT buyers are also worried about the potential for further weakness in Europe and Asia.
Last Thursday, Forrester cut its closely watched forecast for 2013 global IT sales, citing the fiscal cliff debacle as one reason. Forrester now expects global IT sales to rise 3.3 percent to $2.2 trillion this year, down from its previous forecast for 4.3 percent growth.
VIRTUAL STORAGE
Analysts say the weak economy may boost adoption of recently introduced data storage technologies that allow companies to put more data on the equipment they already own, reducing the need for them to buy more hardware.
Some companies have already paid for that technology, but have yet to implement it because staff are not yet comfortable using it, said analyst Cindy Shaw of investment research firm Discern.
Shaw said that executives at those companies are likely to tell their IT staff to implement that technology to get full use out of existing equipment before they can buy more.
Storage equipment makers NetApp Inc and EMC, along with hard drive makers Western Digital Corp and Seagate Technology are likely to suffer the most from more use of the new technologies, which include storage virtualization. NetApp and Western Digital declined to comment. EMC and Seagate could not be reached for comment.
Defenders of the tech industry say the fallout from the fiscal cliff is already factored into share prices. The S&P 500 Information Technology Index has climbed 1.6 percent over the past month, below the 4.0 percent increase in the broader S&P 500 Index.
Some technology companies appear poised to outperform the pack.
Oracle Corp said on December 18 that it expects software sales growth to stay strong in 2013 despite fears about the fiscal crisis. The company's earnings beat Wall Street forecasts in its most recent quarter as strong software sales offset a sharp drop in hardware revenue.
Analysts said that IBM, whose quarter ended December 31, may have fared better than other big technology companies, because it is has a large amount of recurring revenue from its services and software divisions.
"Oracle and IBM both have super strong sales teams that can bring home what they need to year after year," said Kim Forrest, senior analyst of Fort Pitt Capital.
IBM and Oracle could not be reached for comment.
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Reports: sled crash kills 6 on Italian ski slope

ROME (AP) — Italian news reports say a motorized sled making a night run down an Italian ski slope slammed into a fence and flipped over into a ditch, killing six tourists and severely injuring two others aboard.
RAI state radio reported early Saturday that the sled's occupants were Russian tourists. The crash occurred on an unlit slope late Friday on Mount Cermis in northeast Italy. Victims' names were not immediately available. Cause of the crash was under investigation.
In 1998, a U.S. Marine jet, flying low on a training run from a nearby air base, accidently sliced a ski gondola's cable on Mount Cermis, sending the cable car crashing to the ground and claiming 20 lives.
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Italy: 6 Russian tourists die in snowmobile crash

ROME (AP) — Italian news reports say six Russian tourists were killed and two others were injured after their snowmobile slammed into a fence and flipped over into a ditch during a night run down an Italian ski slope.
RAI state radio reported early Saturday that the crash occurred on an unlit slope late Friday on Mount Cermis in northeast Italy. Victims' names were not immediately available. Cause of the crash was under investigation.
In 1998, a U.S. Marine jet, flying low on a training run from a nearby air base, accidently sliced a ski gondola's cable on Mount Cermis, sending the cable car crashing to the ground and claiming 20 lives.
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Excavators head to Myanmar to find WWII Spitfires

LONDON (AP) — An airplane-obsessed farmer, a freelance archaeologist and a team of excavators are heading to the Myanmar city of Yangon on Saturday to find a nearly forgotten stash of British fighter planes thought to be carefully buried beneath the former capital's airfield.
The venture, backed with a million-dollar guarantee from a Belarusian videogame company, could uncover dozens of Spitfire aircraft locked underground by American engineers at the end of World War II.
"We could easily double the number of Spitfires that are still known to exist," said 63-year-old David Cundall, the farmer and private pilot who has spent nearly two decades pursuing the theory that a batch of the famous fighter planes was buried, in pristine condition, in wooden crates in a riverbed at the end of an airport runway.
"In the Spitfire world it will be similar to finding Tutankhamen's tomb," he told reporters Friday, ahead of his flight.
Not everyone is as convinced. Even at the conference, freelance archaeologist Andy Brockman acknowledged that it was "entirely possible" that all the team would find was a mass of corroded metal and rusty aircraft parts — if it found anything at all.
But Cundall said eyewitness testimony — from British and American veterans as well as elderly local residents of Myanmar — coupled with survey data, aerial pictures, and ground radar soundings left him in no doubt that the planes were down there. And others not involved in the trip have expressed cautious optimism.
"There is a high percentage chance that something is buried there," said Charles Heyman, who edits the reference book, "The Armed Forces of the United Kingdom." Heyman said it wasn't unusual for British forces to leave behind high-grade equipment in former war zones - even in recent conflicts such as Iraq and Afghanistan.
The Spitfire remains the U.K.'s most famous combat aircraft, its reputation cemented by the Battle of Britain, when the fast-moving, sleek-looking single-seater aircraft helped beat back waves of German bombers. Britain built a total of some 20,000 Spitfires, although the dawn of the jet age at the end of World War II meant that the propeller-driven planes quickly became obsolete.
Many were written off as the British war effort wound down, but why a batch of Spitfires would have been boxed and buried, as opposed to scrapped and dumped, remains the biggest question hanging over the project.
Cundall, who has long scoured crash sites to recover buried aircraft, said he first heard of the Myanmar theory from a fellow plane hunter Jim Pearce, who was at a party in Jacksonville, Florida, when two American veterans approached him with an unusual story. The men said they had worked as engineers in what was then known as Burma when they were tasked with carving out a large pit burial pit for the aircraft.
"It was the craziest thing you Brits asked us to do," Cundall quoted the men as saying.
Cundall said he believed the story immediately. Advertisements seeking more information were placed in magazines with names like FlyPast and Warbirds, and soon other witnesses came forward.
One, a British veteran named Stanley Coomb, described driving along the air field's perimeter while engineers lowered huge wooden boxes — described as the size of double-decker buses — into a pit. Radar soundings appeared to show large, plane-sized objects lurking roughly 25 feet (8 meters) below the surface, Cundall said.
But finding the site was just half the battle. Cundall said it took 17 years of lobbying to get permission to dig in Myanmar, a task complicated by European sanctions against the country's authoritarian government, and, more recently, its tentative steps toward democracy. Cundall beat out other groups in an effort to win exclusive rights to the dig, finally signing an agreement in early October.
Along the way he found an unlikely ally, a Belarusian company called Wargaming.net best known for its multiplayer titles including "World of Warplanes" and "World of Tanks." The company's American director of special projects, Tracy Spaight, said he got his company involved after hearing about the Spitfires in the news, promising $500,000 toward the dig and up to another $500,000 if the Spitfires were found.
Company spokesman Frazer Nash batted away repeated questions about what the video game maker in the country known as Europe's last dictatorship hoped to get out of the deal, saying the company had an "open bucket" to dispense cash if the dig was a success.
"Money's not an issue," he told journalists. "Have you seen the profits for gaming?"
The reporters seemed mollified.
"Can I have a job?" one asked.
The Spitfires — if any are ever found — would be divided between the Myanmar government, in line for about half the total, a local company, which would get another 20 percent, and Cundall, who would get roughly a third. The Myanmar government might decide to sell its planes, Cundall said, although he promised that his share would be coming back to the U.K., "where they belong."
"It was a tool of war, but I want to make it a tool of friendship to bring Myanmar and Britain closer together." Also, he said, "I would love to fly one!"
After a last round of television interviews at the hotel Friday, Cundall slipped a jacket over his black Wargaming.net T-shirt and rubbed his hands together against the cold, casting his mind to his upcoming trip, and the moment of truth.
"Only a matter of time now before we start digging and find out: 'What's in the box?'" he said.
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Hong Kong shares may trim strong 2013 start after Fed voices concern

HONG KONG, Jan 4 (Reuters) - Hong Kong shares could end a
two-day rally on Friday, tracking Wall Street weakness after
signs that the U.S. Federal Reserve has growing concerns about
its stimulative monetary policy.
Any losses could be limited if mainland China markets reopen
strongly on Friday, trading for the first day in 2013 after a
three-day New Year holiday.
On Thursday, the Hang Seng Index ended up 0.4 percent
at 23,398.6, its highest since June 1, 2011. The China
Enterprises Index of the top Chinese listings in Hong
Kong added 0.8 percent, reaching another peak since August 2011.
On the week, the indexes are up 3.2 and 5.5 percent,
respectively. The H-share index's relative strength index (RSI)
value suggests that it is now at its most overbought since
October 2010.
Elsewhere in Asia, Japan's Nikkei is up 3 percent in
its first trading session for the year, while South Korea's
KOSPI is down 0.4 percent at 0042 GMT.
FACTORS TO WATCH:
* Consolidation of Austria's cutthroat telecom market moved
ahead on Thursday when Hutchison Whampoa Ltd completed
its 1.3 billion euro ($1.7 billion) takeover of Orange Austria,
making it the country's third-biggest mobile operator.
* Hong Kong's Li & Fung Group agreed to acquire a
majority stake in South Korean children's apparel maker Suhyang
Networks for roughly 200 billion won ($188 million), a South
Korean newspaper reported on Thursday.
* Hong Kong November 2012 retail sales rose 9.5 percent from
a year earlier.
* Bestway International Holdings Ltd has cancelled
part of its mining area in Mongolia due to the implementation of
new regulations.
* Chinese property developer Kaisa Group Holdings Ltd
has issued $500 million in senior notes due 2020
bearing an interest rate of 10.25 percent per annum.
* Chinese property developer Country Garden has
issued $750 million senior notes due 2023 with an interest rate
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Analysis: Alimta patent seen as Lilly's "wild card"

NEW YORK (Reuters) - Eli Lilly & Co may have a $15 billion wild card up its sleeve as it waits for desperately needed new drugs to bear fruit.
Should an obscure patent on Lilly lung cancer drug Alimta survive a court challenge this year, the company would be able to wring more than five additional years of peak sales out of the fast-growing product that it would otherwise lose to cheaper generics.
Annual sales of Alimta are expected by Wall Street to climb to $3.5 billion by 2016, when its basic patent lapses. Once faced with generic competition, branded drugs typically lose more than 80 percent of sales within a year.
While the likelihood of a Lilly victory is not a widely held view, a growing number of patent attorneys and industry analysts believe the particular patent being challenged will pass legal muster.
Alimta may keep its marketing exclusivity until 2022, thanks to protection from a separate so-called method-of-use patent on the way the drug is administered that many investors and Wall Street watchers are not aware of or have failed to appreciate.
Historically, method-of-use patents have had a much tougher time holding up in court than basic chemical patents on medicines. They are often viewed as manipulative, blatant efforts to extend the sales life of products.
But this one could be different because of specific safety language in the Alimta label that could provide a road block to cheaper generics.
The so-called '209 patent covers the administration of two nutrients - folic acid and vitamin B12 - to patients before they receive Alimta, to protect against toxic side effects of the cancer drug. Alimta's approved label instructs doctors to administer the nutrients prior to and during use of the medicine.
"For a generic to win approval, it usually has to copy the branded drug's label," said patent attorney Ben Hsing, a partner in the law firm of Kaye Scholer in New York.
Generics could have a hard time doing so because Lilly has a separate patent on the pre-administration of the nutrients, said Hsing, who last year successfully defended Roche Holding AG's Tarceva lung cancer drug from patent challenges by generic drugmaker Mylan Inc. "So I think generics would have a tough time" prevailing.
If generic versions of Alimta cannot mention use of the nutrients in their own labels, they could be compromising patient safety, which is not likely to sit well with health regulators that must approve any generic, according to patent attorneys.
Lilly, whose attorneys declined to comment for this story, is expected to counter legal arguments that use of folic acid and vitamin B12 is "obvious" and therefore not patentable by arguing that its researchers discovered the protective effects of the nutrients with respect to Alimta specifically.
Gary Frischling, a Los Angeles-based patent attorney for Irell & Manella, agreed that the language in Alimta's label could keep cheap generics at bay until 2022.
"This seems to be a case in which research done on how to safely use this particular drug has turned out to be very economically important," said Frischling, who has represented Elan Corp and other drugmakers.
PATENT WIN WOULD PROVIDE NEEDED BOOST
Lilly badly needs new medicines to replace ones that have already lost patent protection or will in the next two years.
In October 2011, the company began facing one of the worst patent cliffs in industry history when its biggest drug, Zyprexa for schizophrenia, began facing generics. Sales of the former $4.5 billion-a-year drug have plunged by two-thirds.
The pain worsens in December of 2013, when Lilly's current top seller, the $5 billion-a-year anti-depressant Cymbalta, goes generic, and after cheap versions of its $1 billion Evista osteoporosis drug arrive in early 2014.
Blockbuster Alimta sales well into 2022 could go a long way toward easing some of that pain, while other new medicines work their way toward approvals.
Generic drugmakers Teva Pharmaceuticals Industries Ltd and APP Pharmaceuticals LLC have challenged the validity of the '209 patent, and will battle Lilly this summer in federal court in the drugmaker's hometown of Indianapolis.
The U.S. Court of Appeals in Washington last August upheld the validity of the patent on the drug's chemical structure, protecting it from generics through late 2016.
If the method of use patent also holds up in court, Alimta would then be protected from 2017 to 2022, according to Seamus Fernandez, an analyst with Leerink Swann, who received a four-star rating from StarMine for his predictions about Lilly over the previous two years.
His "outperform" rating on Lilly is based partly on that expectation, even though the general consensus on Wall Street is to the contrary.
"We see a real opportunity here," said Fernandez, who estimated Lilly's earnings per share would get more than a 25 percent lift in 2017, 2018 and 2019 if the patent is upheld.
"It would provide a pretty nice runway to launch products and get them to market," said Fernandez. He cited Lilly treatments for Alzheimer's disease, arthritis, psoriasis, diabetes and cancer now in late-stage studies.
Michael Liss, portfolio manager at American Century Investments, said Lilly's profits and share price could expand significantly if only a few good-selling drugs are introduced during the next few years.
Sanford Bernstein's Tim Anderson also has an "outperform" rating on Lilly, based largely on confidence the method of use patent will prevail in court. Anderson also received a four-star out of five StarMine professional rating for his analysis of Lilly.
The company has taken a conservative stance, not stressing the possibility of a patent victory. Lilly Chief Financial Officer Derica Rice has said an extension of Alimta's patent would be an "upside" for Lilly.
Attorneys for Lilly declined to comment on the case. A Teva spokeswoman also declined to comment.
To be sure, keeping Alimta patent protection beyond 2016 is no lock. Based on historical precedence, Morningstar analyst Damien Conover offered little hope the patent will pass muster with the federal court. "Most people expect the patent to fail," Conover said. "Method-of-use patents tend to be particularly weak."
But most people may be underestimating the protective differences of this particular patent, according to legal experts.
Patricia Carson, a patent lawyer with the firm of Kirkland & Ellis in New York, said pre-administration of folic acid and vitamin B12 appears to be "specific to Alimta" and not a procedure common with other drugs.
"In development (of Alimta), they came up with this type of method," she said.
Even so, Carson said Lilly may have to convince the court the method would not have been obvious to the ordinary researcher.
Should the Alimta patent prevail, Conover said it would significantly bolster Lilly's attractiveness and profits beginning in 2017. It also would help Lilly cope with a second patent cliff that would begin that year, as its Cialis impotence treatment and Effient blood clot drug begin facing generics. The drugs now have annual sales of $2 billion and $450 million, respectively.
Lilly's fourth-quarter results, due later this month, are expected to show earnings tumbled about 24 percent in 2012. The company expects to begin rebounding from its patent cliff in 2015.
Cowen and Co analyst Steve Scala, called the patent case a "wildcard opportunity" for Lilly.
Lilly shares rose 19 percent in 2012, compared with a 10 percent gain for the ARCA Pharmaceutical Index of large U.S. and European drugmakers, suggesting confidence in an eventual turnaround for Lilly.
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Stocks fade after Fed discloses split on stimulus

NEW YORK (AP) — A two-day rally in the stock market came to an end Thursday afternoon when an account of the Federal Reserve's last meeting revealed a split between bank officials over how long the Fed should keep buying bonds to support the economy.
The Dow Jones industrial average and the Standard & Poor's 500 index treaded water for much of the day, then slid into the red around 2 p.m. Eastern, after the Fed released the minutes from its December meeting.
The Dow ended with a loss of 21.19 points at 13,391.36.
The S&P 500 lost 3.05 points to 1,459.37 and the Nasdaq composite fell 11.70 to 3,100.57.
At last month's meeting of the Federal Reserve's policy-making committee, the central bank pledged to buy $85 billion of Treasurys and mortgage-backed bonds and also keep a benchmark interest rate near zero until the unemployment rates drops below 6.5 percent.
On Thursday, the minutes from that meeting showed Fed officials were divided over the bond purchases. Some of its 12 voting members thought they should continue through this year, while another group thought they should be slowed or stopped much earlier. Just "a few" members saw no need for a time frame, according to the minutes.
"It's pretty surprising," said Thomas Simons, market economist at the investment bank Jefferies. "I think everybody thought there was broad agreement on policy, but now it seems like few of them really wanted to vote for it."
The stock market opened on a weak note after retailers reported mixed holiday sales and as the prospect of a new budget battle in Congress loomed. UnitedHealth Group led the Dow lower. The insurance giant's stock fell $2.55 to $51.99 after analysts at Deutsche Bank and other firms cut their ratings on the stock.
"It's natural to relax a bit after such a huge day as yesterday," said Lawrence Creatura, who manages a small-company fund at Federated Investors.
The Dow soared 308 points Wednesday, its largest point gain since December 2011. The rally was ignited after lawmakers passed a bill to avoid a combination of government spending cuts and tax increases called the "fiscal cliff."
That deal gave the market a jump start into the new year. The Dow and the S&P 500 are already up more than 2 percent.
"We're off to a very strong start," Creatura said. "The dominant reason is the resolution of the fiscal cliff. But January is usually a strong month, as investors all shift money into the market at the same time. When the calendar flips, it's as if you're allowed to begin the race anew."
Economists had warned that the full force of the fiscal cliff could drag the country into a recession. The law passed late Tuesday night averted that outcome for now, but other fiscal squabbles are likely in the months ahead. Congress must raise the government's borrowing limit soon or be forced to choose between slashing spending and paying its debts.
In other Thursday trading, prices of U.S. government bonds fell, sending their yields higher. The yield on the benchmark 10-year Treasury note rose to 1.90 percent from 1.84 percent late Wednesday, a sign that some bond traders believe the Fed minutes hinted at an early end to its bond buying.
Family Dollar Stores sank 13 percent after reporting earnings that fell short of analysts' projections. The company also forecast a weaker outlook for the current period and full year. Family Dollar's stock lost $8.30 to $55.74.
Nordstom Inc. surged 3 percent after the department-store chain reported strong holiday sales, especially in the South and Midwest. Nordstrom's stock was up $1.64 to $55.27.
Among other stocks making big moves:
— Transocean jumped $2.96 to $49.20. The owner of the oil rig that sank in the Gulf of Mexico in 2010 after an explosion killed 11 workers reached a $1.4 billion settlement with the Justice Department.
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Egypt says it seizes US-made missiles near Gaza

 Egyptian authorities seized six U.S.-made missiles in the Sinai Peninsula Friday that security officials said were likely smuggled from Libya and bound for the Gaza Strip.
Libya's 2011 uprising and subsequent civil war left the country awash in weapons, including rocket-propelled grenades, automatic rifles and other munitions. Since the end of the country's eight-month conflict, smugglers have transferred some of the weapons to Islamic militants in Egypt's Sinai Peninsula, which has faced a security vacuum since the country's own uprising, and from there onward in underground tunnels to neighboring Gaza.
Security officials said that police working on a tip from local Bedouin discovered the six U.S.-made missiles hidden in a hole in the desert outside the northern Sinai city of el-Arish before dawn on Friday. They said the anti-tank and anti-aircraft missiles have a range of up to two kilometers (one mile).
The officials, who spoke anonymously because they were not authorized to speak to media, did not specify the make of weapon.
Over the past year, Egypt's Interior Ministry has confiscated hundreds of weapons smuggled from Libya, often near the Egyptian city of Marsa Matrouh, which is located along the Mediterranean coastal highway some 430 kilometers (270 miles) northwest of Cairo. Last month, security officials seized 17 French-made missiles near el-Arish, some 750 kilometers east of Marsa Matrouh along the coast, before they could be smuggled through tunnels to the Gaza Strip.
Gaza has been under an Israeli-Egyptian blockade since the militant Hamas group took over in 2007 following an election win two years earlier. Egyptian security often turn a blind eye to the smuggling of goods to Gaza, which ranges from cars to diapers to food, but have come down harder on weapons smuggling.
Meanwhile, the U.S. State Department has provided funding to U.S. Customs and Border Protection to conduct training for officials from the Libyan Ministry of Defense and the Customs Authority with the aim of reducing the illicit transfers of weapons across borders.
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Saudi's top cleric warns against mixing of genders

 Saudi Arabia's top cleric on Friday warned against the mixing of the genders, saying it poses a threat to female chastity and society, as the kingdom prepares for the first time to grant women seats on the country's top advisory body.
Delivering his traditional Friday sermon, Grand Mufti Sheik Abdul-Aziz Al-Sheik said authorities must adhere to Shariah, or Islamic law, by ensuring men and women are separated as much as possible at all times. The cleric's comments come just weeks ahead of allowing women to be members of the 150-member Shura Council, the country's top advisory body.
Since 2006, women have been appointed as advisors to the council — an appointed, consultative body that has the authority to review laws and question ministers but cannot propose or veto legislation. There are currently 12 female advisors, but they do not have a right to vote in the assembly.
The move by King Abdullah to allow women a voice on the Shura Council is part of a larger reform effort by the monarchy to give women greater space in the public sphere. Last year, the kingdom began enforcing a law that allows women to work in female apparel and lingerie stores.
Religious leaders, including the grand mufti, have spoken out against such reforms.
The country is guided by an ultraconservative interpretation of Islam called Wahhabism. In the kingdom, women cannot travel, work, study abroad, marry, get divorced or gain admittance to a public hospital without permission from a male guardian — typically a husband, brother, father or uncle.
While Al-Sheik has spoken out in support of granting women the right to vote in 2015 alongside men in the nation's only open elections, he has criticized the decision to allow women to work in apparel stores, saying that it puts them in contact with men unrelated to them.
"It is necessary for women to be separated from men as much as possible, because this great religion protects the chastity of women against evil and corruption," Al-Sheik told worshippers at the Imam Turki mosque in Riyadh.
While his Friday sermon focused mainly on corruption in the kingdom, the grand mufti stressed that it is forbidden in Islam for a woman to stand before a man unveiled, warning that to do so will destroy the morals and values of society. The veil in Saudi Arabia refers to the full face covering worn by most women in the ultraconservative kingdom.
The Saudi government has not said how many women will be given seats on the Shura Council. Some local papers have suggested that women would be separated from the men in the assembly hall by a barrier, while others have suggested that women communicate via an internal video system.
However, those pushing for reform point to a recent council session where the country's top female official, deputy Education Minister Nura al-Fayez, sat in a full face veil and took part in the dialogue alongside the men.
"It sends a message to the conservatives that this is the example for women's participation in the Shura Council," Hatoon Al-Fassi, a columnist and professor of women's history in King Saud University said, adding that it also suggests this is what the king supports.
She said she is among many in Saudi Arabia who are rejecting a symbolic presence of women in the assembly.
"At the end we are not behind the scenes," Al-Fassi said. "We are asking for equality and for half of the council, or what is 75 seats."
Al-Fassi and other Saudi women have been pushing the government for social reforms and greater rights for women, including allowing women the right to drive and for the dissolution of male guardianship laws. Saudi women have staged protests defying the driving ban.
She said that there is pressure from the religious establishment to keep to a minimum the number of seats for women in the advisory body.
"I believe that the religious establishment will insist on forcing its opinion to resist the kingdom's progressive reforms, but as women we are insisting on building society hand in hand.
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