RIM shares rise 6 percent as Goldman jumps on BB10 bandwagon

TORONTO (Reuters) - A wave of optimism surrounding the launch of Research In Motion's re-engineered BlackBerry line picked up momentum on Thursday with Goldman Sachs raising its rating on the smartphone maker and setting off a surge in its share price.

The brokerage firm joined a growing chorus of analysts who have warmed to the prospects of a successful introduction of the new BlackBerry 10 devices, which RIM hopes will let it claw back market share lost to Apple Inc's iPhone and smartphones powered by Google's Android platform. The BB10 devices are expected to hit store shelves early next year.

The shift in sentiment has been swift. A few weeks ago, most analysts believed RIM had squandered any chance it had to become a serious competitor because of repeated delays in the launch of the new smartphone.

But with a launch date now set for January 30 and some positive feedback about the devices from telecom carriers and developers, some analysts now think RIM might be able turn around its fortunes.

In a note to clients, Goldman analyst Simona Jankowski said preliminary specifications that have emerged on the BB10 devices appear impressive.

"With these devices RIM appears to finally be aiming for the leading edge hardware performance that was missing from its prior generations," Jankowski Said.

GOLDMAN UPGRADE

Jankowski said she believes more applications will be available for BB10 than had been expected because BlackBerry users typically download a relatively high number of paid apps, which is an enticement to app developers.

Goldman, which raised its rating on RIM shares to "buy" from "neutral," also increased its price target to $16 from $9.

By midday, RIM's shares had jumped up more than 6 percent on the Nasdaq to $11.78, while its Toronto-listed shares rose by a similar margin to C$11.72.

RIM shares, which have plunged about 90 percent from a 2008 high of more than $148, have risen some 75 percent in the last two months as the company moves closer to the launch of the new devices.

RIM promises its new devices will be faster and smoother than previous smartphones, and will have a large catalog of apps that are crucial to the success of any new line of smartphones.

Earlier this month, Jefferies & Co analyst Peter Misek, who has been one of RIM's biggest critics, raised his rating and price target on the stock.

Last week, National Bank analyst Kris Thompson raised his price target on the shares, stating that there is more money to be made in the stock ahead of the launch of the BB10 devices.

RIM Chief Executive Thorsten Heins told Reuters earlier this month that he sees the new BB10 devices providing RIM with a framework for growth over the next decade.

To be sure, not everyone has jumped on the bandwagon. Wedge Partners analyst Brian Blair warned on Wednesday that rising expectations for the BB10 in 2013 have provided false hope for investors.

"We believe the run-up in the stock miscalculates the reality of consumer demand for BB10 next year. ... The fact is, the smartphone market has changed in the last 24 months, and RIM is not only late to the party, the party has moved to a different location and RIM is showing up at the wrong house," Blair said.

(Reporting by Euan Rocha; Editing by Maureen Bavdek; and Peter Galloway)

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Tagliabue holds Saints bounties hearing in DC

WASHINGTON (AP) — Former NFL Commissioner Paul Tagliabue and lawyers for the league and the players' union have arrived for a hearing in the Saints bounties case.

Tagliabue is overseeing the latest round of player appeals in Washington.

Former Saints assistant Mike Cerullo, a key witness in the NFL's investigation, is scheduled to speak Thursday. Former New Orleans defensive coordinator Gregg Williams is to participate in Friday's session.

Two Saints players who were suspended, linebacker Jonathan Vilma and defensive end Will Smith, had said they plan to attend when Williams is there.

Vilma's lawyer attended Thursday's hearing at an office building.

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Clinton releases road map for AIDS-free generation

WASHINGTON (AP) — In an ambitious road map for slashing the global spread of AIDS, the Obama administration says treating people sooner and more rapid expansion of other proven tools could help even the hardest-hit countries begin turning the tide of the epidemic over the next three to five years.

"An AIDS-free generation is not just a rallying cry — it is a goal that is within our reach," Secretary of State Hillary Rodham Clinton, who ordered the blueprint, said in the report.

"Make no mistake about it, HIV may well be with us into the future but the disease that it causes need not be," she said at the State Department Thursday.

President Barack Obama echoed that promise.

"We stand at a tipping point in the fight against HIV/AIDS, and working together, we can realize our historic opportunity to bring that fight to an end," Obama said in a proclamation to mark World AIDS Day on Saturday.

Some 34 million people worldwide are living with HIV, and despite a decline in new infections over the last decade, 2.5 million people were infected last year.

Given those staggering figures, what does an AIDS-free generation mean? That virtually no babies are born infected, young people have a much lower risk than today of becoming infected, and that people who already have HIV would receive life-saving treatment.

That last step is key: Treating people early in their infection, before they get sick, not only helps them survive but also dramatically cuts the chances that they'll infect others. Yet only about 8 million HIV patients in developing countries are getting treatment. The United Nations aims to have 15 million treated by 2015.

Other important steps include: Treating more pregnant women, and keeping them on treatment after their babies are born; increasing male circumcision to lower men's risk of heterosexual infection; increasing access to both male and female condoms; and more HIV testing.

The world spent $16.8 billion fighting AIDS in poor countries last year. The U.S. government is the leading donor, spending about $5.6 billion.

Thursday's report from PEPFAR, the President's Emergency Plan for AIDS Relief, outlines how progress could continue at current spending levels — something far from certain as Congress and Obama struggle to avert looming budget cuts at year's end — or how faster progress is possible with stepped-up commitments from hard-hit countries themselves.

Clinton warned Thursday that the U.S. must continue doing its share: "In the fight against HIV/AIDS, failure to live up to our commitments isn't just disappointing, it's deadly."

The report highlighted Zambia, which already is seeing some declines in new cases of HIV. It will have to treat only about 145,000 more patients over the next four years to meet its share of the U.N. goal, a move that could prevent more than 126,000 new infections in that same time period. But if Zambia could go further and treat nearly 198,000 more people, the benefit would be even greater — 179,000 new infections prevented, the report estimates.

In contrast, if Zambia had to stick with 2011 levels of HIV prevention, new infections could level off or even rise again over the next four years, the report found.

Advocacy groups said the blueprint offers a much-needed set of practical steps to achieve an AIDS-free generation — and makes clear that maintaining momentum is crucial despite economic difficulties here and abroad.

"The blueprint lays out the stark choices we have: To stick with the baseline and see an epidemic flatline or grow, or ramp up" to continue progress, said Chris Collins of amFAR, the Foundation for AIDS Research.

His group has estimated that more than 276,000 people would miss out on HIV treatment if U.S. dollars for the global AIDS fight are part of across-the-board spending cuts set to begin in January.

Thursday's report also urges targeting the populations at highest risk, including gay men, injecting drug users and sex workers, especially in countries where stigma and discrimination has denied them access to HIV prevention services.

"We have to go where the virus is," Clinton said.

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AP Newsbreak: New Suzanne Collins book in 2013

NEW YORK (AP) — "The Hunger Games" novelist Suzanne Collins has a new book coming out next year.

The multimillion-selling children's author has completed an autobiographical picture story scheduled for Sept. 10, 2013, Scholastic Inc. announced Thursday. The 40-page book will be called "Year of the Jungle," based on the time in Vietnam served by Collins' father, a career Air Force officer.

"Year of the Jungle" is her first book since 2010's "Mockingjay," the last of "The Hunger Games" trilogy that made Collins an international sensation. More than 50 million copies of the "Hunger Games" books are in print and the first of four planned movies has grossed more than $600 million worldwide since coming out in March.

Collins' next project will be intended for ages 4 and up, a younger audience than those who have read, and re-read, her dystopian stories about young people forced to hunt and kill each other. But "Year of the Jungle" will continue, in a gentler way, the author's exploration of war. James Proimos, an old friend from her days as a television writer who helped persuade Collins to become a children's author, illustrated the book.

"For several years I had this little wicker basket next to my writing chair with the postcards my dad had sent me from Vietnam and photos of that year. But I could never quite find a way into the story. It has elements that can be scary for the audience and it would be easy for the art to reinforce those. It could be really beautiful art but still be off-putting to a kid, which would defeat the point of doing the book," Collins, 50, said in a statement released by Scholastic.

"Then one day I was having lunch with Jim and telling him about the idea and he said, 'That sounds fantastic.' I looked at him and I had this flash of the story through his eyes, with his art. It was like being handed a key to a locked door. So, I just blurted out, 'Do you want to do it?' Fortunately he said 'Yes.'"

"How could I refuse?" Proimos said in a statement. "The idea she laid out over burritos and ice tea during our lunch was brilliant and not quite like any picture book I had ever come across. The writing is moving and personal. What Suzanne does so well here is convey complicated emotions through the eyes of a child."

According to Scholastic, "Year of the Jungle" will tell of a little girl named Suzy and her fears after her father leaves for war. She wonders when he'll come back and "feels more and more distant" as he misses family gatherings. He does return, but he has changed and his daughter must learn that "he still loves her just the same."

Collins has said before that she wanted to write a book about her father. In a 2010 interview with The Associated Press, she explained that her father was a trained historian who made a point of discussing war with his family.

"I believe he felt a great responsibility and urgency about educating his children about war," she said. "He would take us frequently to places like battlefields and war monuments. It would start back with whatever had precipitated the war and moved up through the battlefield you were standing in and through that and after that. It was a very comprehensive tour guide experience. So throughout our lives we basically heard about war."

Scholastic also announced Thursday that "Catching Fire," the second "Hunger Games" book and originally released in 2009, is coming out in June as a paperback. The paperback edition usually comes within a year of the hardcover, but "Catching Fire" had been selling so well that Scholastic waited. "Mockingjay" has yet to be released as a paperback.

Next summer, Collins' five-volume "The Underland Chronicles," published before "The Hunger Games," will be reissued with new covers.

"'The Underland Chronicles,' with its fantasy world and 11-year old protagonist, Gregor, was designed for middle readers," Collins said in a statement. "The 'Hunger Games' trilogy features a teen narrator, Katniss Everdeen, and a stark dystopian backdrop for the YA (young adult) audience. 'Year of the Jungle' attempts to reach the picture book readers by delving into my own experience as a first grader with a father deployed in Vietnam."

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French court clears Continental in Concorde crash

French appeals court on Thursday absolved Continental Airlines of blame for a 2000 Concorde crash that killed 113 people and cleared a mechanic at the U.S. airline of the charge of involuntary manslaughter.

The verdict comes over a decade after the accident helped to spell the end of the supersonic airliner. A previous court ruled that a small metal strip that fell onto the runway from a Continental aircraft just before the Concorde took off from Paris, caused the crash.

Continental was originally fined 200,000 euros and ordered to pay the Concorde's operator, Air France, a million euros in damages. Continental appealed the verdict which it described as unfair and absurd.

Welder John Taylor was cleared of a 15-month suspended prison sentence for having gone against industry norms and used titanium to forge the piece that dropped off the plane.

Continental, now part of United Continental Holdings , had been ordered under the original ruling to pay 70 percent of any damages payable to families of victims. Airbus parent EADS would have to pay the other 30 percent.

The crash sped up the demise of the droop-nosed Concorde - the fastest commercial airliner in history and a symbol of Franco-British co-operation - as safety concerns coupled with an economic downturn after 9/11 drove away its wealthy customers.

The Air France Concorde, carrying mostly German tourists bound for a Caribbean cruise, was taking off from Paris on July 25, 2000 when an engine caught fire. Trailing a plume of flames, it crashed into a hotel near Charles de Gaulle airport. All 109 passengers and four people on the ground died.

After modifications, the plane returned to service but its operators, Air France and British Airways, retired it in 2003, citing high operating costs and a drop in demand.
 

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Groupon CEO Mason open to stepping down

Groupon CEO Andrew Mason walks outside the Nasdaq after the company debuts in November 2011. (Brendan McDermid/Reuters / November 28, 2012)

Reuters

11:31 a.m. CST, November 28, 2012

Groupon Inc. CEO Andrew Mason, under fire for a plunging share price and tapering growth, said on Wednesday he would agree to step down if needed, as the struggling company's board prepared to debate on Thursday whether he remains the right leader.

Groupon has shed four-fifths of its value since its public trading debut as an investor darling during last year's consumer dotcom IPO boom. Wall Street has grown uneasy about the viability of its business as fever for daily deals has cooled among consumers and merchants, hurting its growth rate.

Mason, responding to reports that the board of directors will discuss his performance during a regular Thursday meeting, said it would be "weird" if they did not.

"It would be more noteworthy if the board wasn't discussing whether I'm the right guy for the job," Mason said in an interview from a Business Insider conference.

"If I ever thought I wasn't the right person for the job, I'd be the first person to fire myself."

Europe has been a particular problem for Groupon, partly because the sovereign debt crisis has sapped demand for higher-priced deals. Groupon was also offering steeper discounts, turning off some European merchants.

Adding to its difficulties, the U.S. Securities and Exchange Commission is looking into Groupon's accounting and disclosures, areas that raised questions among some during its IPO.

GRPN data by YCharts

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BlackBerry maker RIM loses patent dispute with Nokia

HELSINKI (Reuters) - Canada's Research In Motion (RIM) has lost a contract dispute over the use of Nokia patents in a case which could halt sales of its BlackBerry phones if it does not reach a deal to pay royalties to the Finnish company.

Nokia said on Wednesday a Swedish arbitrator had ruled that "RIM was in breach of contract and is not entitled to manufacture or sell WLAN products without first agreeing royalties with Nokia."

Wireless local access network (WLAN) technologies, usually marketed under the WiFi brand, are used across BlackBerry devices and by most other smartphones.

Nokia, which is trying to boost its royalty income as its phone business slides, said it had filed cases in the United States, Britain and Canada to enforce the arbitrator's ruling.

"This could have a significant financial impact to RIM, as all BlackBerry devices support WLAN," IDC analyst Francisco Jeronimo said.

RIM declined to comment. At 6 a.m. EDT its Frankfurt-listed shares were down 5 percent at 8.245 euros. Nokia shares were down 1.6 percent at 2.526 euros.

"If a sales ban was imposed it would be a massive blow for RIM as it manages its transition to the new BlackBerry 10 software platform," said Canalys analyst Pete Cunningham.

However, analysts think it is much more likely that RIM will reach a royalty agreement with Nokia to avert such an outcome.

RIM, a smartphone pioneer, hopes new devices using BlackBerry 10 software, due early 2013, will rescue it from a prolonged slump in the face of competition from the likes of Apple and Samsung.

RIM promises its new devices will be faster than previous smartphones, and will have a large catalogue of applications, which are crucial to the success of any new line of smartphones.

CONTRACT ROW

Nokia said it signed a cross-license agreement with RIM covering standards-essential cellular patents in 2003, a deal that was amended in 2008.

RIM sought arbitration in March 2011 with the Stockholm Chamber of Commerce, arguing the license should be extended to cover WLAN patents.

The arbitration tribunal concluded a nine day hearing in September 2012 and it issued a decision on November 6, Nokia said in a U.S. court filing seeking to enforce the ruling.

During arbitration RIM did not contest it manufactures and sells products using WLAN technology in accordance with Nokia's WLAN products, Nokia said, quoting the tribunal decision.

Nokia, along with Ericsson and Qualcomm, is among the leading patent holders in the wireless industry. Patent royalties generate annual revenue of about 500 million euros ($646 million) for Nokia.

Based on a Nortel patent sale and Google's acquisition of Motorola Mobility, some investors and analysts say Nokia's patent portfolio alone merits its current share price of around 2.50 euros.

However, the patent market has cooled since those deals were made and industry experts say that fair value of patents in large portfolios is $100,000 to $200,000, pricing Nokia's portfolio at up to 0.50 euros per share.

(Editing by David Goodman and Mark Potter)

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Bonds, Clemens, Sosa on Hall ballot for first time

NEW YORK (AP) — Barry Bonds, Roger Clemens and Sammy Sosa are listed on the baseball Hall of Fame ballot for the first time, setting up an election sure to become a referendum on the Steroids Era.

The 37-player ballot was announced Wednesday.

More than 600 longtime members of the Baseball Writers' Association of America will vote through next month. Candidates need 75 percent for induction, and the results will be announced Jan. 9.

Bonds is the all-time home run champion with 762 and won a record seven MVP awards. Clemens set a record with seven Cy Young trophies and Sosa hit 609 homers. The voters will now decide whether drug allegations that tainted their huge numbers should keep them out of Cooperstown.

Craig Biggio, Mike Piazza and Curt Schilling are among the 24 first-time eligibles. Jack Morris, Jeff Bagwell and Tim Raines are the top holdover candidates.

The upcoming election is certain to fuel the most polarizing Hall discussion since career hits leader Pete Rose's betting troubles put him on baseball's permanently ineligible list, barring him from the BBWAA ballot.

While many continued to debate whether Rose should be enshrined, it was moot because there is currently no way he can be considered.

On deck, though, are some of the game's biggest names — along with a lot of the sport's biggest baggage.

Bonds, Clemens and Sosa each posted monster statistics, though their accomplishments were shadowed by accusations they used performance-enhancing drugs. And as baseball keeps trying to rid itself of PEDs, their impact on HRs, RBIs and Ws remains a prickly problem.

Bonds was baseball's premier slugger on his generation and Clemens ranks ninth in career wins with 354. Sosa is eighth on the home run chart with 609.

Fans, players and Hall of Fame members have all chimed in about whether stars who supposedly juiced up should make it to Cooperstown.

Many of those opposed say drug cheats should never be afforded baseball's highest individual honors. Others on the opposite side claim the use of PEDs was pervasive in the 1980s, 1990s and early 2000s, and shouldn't disqualify candidates.

If recent voting for the Hall is any indication, the odds are solidly stacked against Bonds, Clemens and Sosa.

Mark McGwire is 10th on the career home run list with 583, but has never received even 24 percent in his six tries. Big Mac has admitted to using steroids and human growth hormone.

Rafael Palmeiro is among only four players with 500 homers and 3,000 hits, yet has gotten a high of 12.6 percent in his two years on the ballot. Palmeiro drew a 10-day suspension in 2005 after a positive test for performance-enhancing drugs, and said the result was due to a vitamin vial given to him by teammate Miguel Tejada.

Biggio topped the 3,000-hit mark — which always has been considered an automatic credential for Cooperstown — and spent his entire career with the Houston Astros.

Schilling was 216-146 and won three World Series championships, including his "bloody sock" performance for the Boston Red Sox in 2004.

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Simple measures cut infections caught in hospitals

CHICAGO (AP) — Preventing infections from surgery is a major concern for hospitals and it turns out some simple measures can make a big difference.

A project at seven big hospitals reduced infections after colorectal surgeries by nearly one-third. It prevented an estimated 135 infections, saving almost $4 million.

The measures included having patients shower with special germ-fighting soap before surgery, and having surgery teams change gowns, gloves and instruments during operations to prevent spreading germs picked up during the procedures.

Practices were standardized at the seven hospitals.

The Joint Commission hospital regulating group and the American College of Surgeons directed the project. They announced results on Wednesday.

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Online:

Joint Commission: http://www.jointcommission.org

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ABC celebrating Dick Clark on New Year's Eve

NEW YORK (AP) — ABC is turning its first New Year's Eve without Dick Clark in four decades partly into a celebration of the showbiz impresario's life.

Clark, who did the first annual "New Year's Rockin' Eve" special on ABC in 1972, died at age 82 in April. Fergie and Jenny McCarthy will be hosts of a two-hour tribute to Clark that will air at 8 p.m. ET on New Year's Eve.

ABC said Wednesday that Ryan Seacrest will host the countdown show from Times Square, with Taylor Swift, Carly Rae Jepsen, Neon Trees, Flo Rida and Pitbull among the musical guests. Seacrest hosted the past few years with Clark making short appearances. A stroke had diminished Clark's communications skills.

Al Green, Helen Reddy and Three Dog Night performed at Clark's first New Year's special.

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