Sands beefs up anti-money laundering safeguards: WSJ

Monday 11 February 2013

New York, Feb 4: Las Vegas Sands Corp (LVS) is no longer making international money transfers for its high-end casino customers and is revamping its compliance procedures as it faces regulatory scrutiny, the Wall Street Journal reported, citing people familiar with the matter.

The casino operator, which is the subject of a money-laundering investigation by U.S. authorities, has recently hired three former FBI agents to beef up its anti-money-laundering efforts, the Journal reported.

U.S. regulators are taking a look at the casino industry and considering tougher rules to combat money-laundering, the Journal said, citing Treasury Department officials.

The Sands, controlled by billionaire Sheldon Adelson, is also planning to improve the background checks the company does on its VIP customers and is retraining its staff on U.S. antibribery laws.

Sands has been in talks with U.S. authorities to resolve a probe into whether the casino failed to alert officials about suspicious transactions of two high rollers at its Las Vegas casino, people familiar with the matter told the Journal.

A spokesman for Sands did not immediately respond to a call seeking comment.

A spokesman for the Sands told the Wall Street Journal: "We have and will continue to build and enhance the best compliance processes in the business because we are leaders and good corporate citizens."

U.S. law requires casinos to report suspicious money transfers.

Regulatory changes could impose other requirements, such as collecting identification records for high-end customers and doing more research on customers' sources of funds, the Journal said, citing people familiar with the matter.

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787 probe far from complete, regulator "very concerned"

Washington, Feb 4 : US safety regulators are nowhere near finishing an investigation into a battery fire on the Boeing Co 787 Dreamliner, a top official said, raising the prospect of a prolonged grounding for the aircraft.

Deborah Hersman, chairman of the National Transportation Safety Board, made clear that investigators have found a series of "symptoms" in the battery damaged in a January 7 fire in Boston, but not the underlying cause of the problem. She also said the agency would be looking at the design of the battery compartment area of the plane and whether the certification standards had been strong enough.

The comments were seen by some safety experts within the aerospace industry as a clear signal that this is no longer just a teething issue for the new plane.

That will raise questions about the financial impact for Boeing, which is still running its assembly lines and backing up aircraft to be delivered, and for airlines, many of which counted on getting the futuristic 787 for their expansion plans.

"We are early in our investigation, we have a lot of activities to undertake," Hersman told a news conference.

"This is an unprecedented event. We are very concerned. We do not expect to see fire events on board aircraft. This is a very serious air safety concern."

She rebuffed multiple questions on how long the investigation would take, making clear it could be weeks or more. She also would not say when the 787 would fly again, which is in the hands of the Federal Aviation Administration.

Former NTSB Chairman Mark Rosenker said the briefing made it clear the investigators had come up short in their hunt for the cause of the battery fire.

"It's going to take them longer," he said in an interview. "Weeks, not days."

Richard Aboulafia, aerospace analyst with the Virginia-based Teal Group, said the NTSB briefing was a sobering reminder that investigators have not made much headway on finding a cause for the battery problems.

"It was hard to find a lot of optimism on the call. It sounds like they're still in the middle of a lot of hard work and a lot of mysteries," Aboulafia said. "It just wasn't encouraging. Fire is the last thing you want on an airplane."

The 787 has been grounded worldwide since an All Nippon Airways plane made an emergency landing in Japan on January 16 after a battery incident, which Hersman said may or may not have been a fire.

That emergency landing came after a fire occurred on a Japan Airlines Co Ltd 787 on the tarmac in Boston.

In a statement, Boeing said it was cooperating with regulators and had teams of "hundreds of engineering and technical experts" working on the situation.

"Boeing is eager to see both investigative groups continue their work and determine the cause of these events, and we support their thorough resolution," the company said, adding it was not permitted to comment directly on the ongoing investigations.

Still, Boeing shares are actually up 1.3 percent since regulators said the plane - full of high-tech innovations that are supposed to be a model for future aviation - could not fly.

At least one customer, Poland's LOT, has already raised the prospect of seeking compensation for its losses. Another, China's Hainan Airlines Co Ltd, said this week it was disappointed in the delays and that its expansion plans had been affected as a result.

Rosenker, the former NTSB official, noted that other new planes had problems when they were introduced, but not fires, which makes this situation stand out.

"Fire is something you don't fool with," he said. "You've got to understand that, particularly given the short period of time the aircraft has been flying."

Boeing has said in the past that, because of their chemical composition, these batteries are difficult to extinguish once they catch fire. As such, the plane is designed to contain fires while they burn themselves out.

Hersman, talking to reporters after the news conference, confirmed that there is no fire suppression system in the area where the battery burned, nor any way to access it in-flight.

Asked if the lack of a fire suppression system in the battery compartment was a design flaw, she said: "We'll certainly be looking at the design and we'll be looking at the certification standards to determine if they were robust enough."

If regulators do decide design changes are needed, that could have implications for Boeing's European rival Airbus and its future A350 jetliner.

"We believe so far we have a robust design, however we will draw the lessons from the 787," Airbus Chief Executive Fabrice Bregier said at the World Economic Forum in Davos.

Billed as Europe's response to the Dreamliner, the A350 is due to enter service next year using lithium-ion batteries, but without the same reliance on electrical systems as the 787, something Airbus says will put less burden on the batteries.

However, Airbus has so far declined to comment on how it would tackle a battery fire if one did break out on board.

FAA and NTSB inspectors visited a UTC Aerospace Systems plant in Phoenix, although a company spokesman declined to say what they focused or how long they would be at the plant. UTC makes the aircraft's auxiliary power unit.

Fiona Greig, a spokeswoman for Securaplane, which makes the battery charging unit and start power unit, said its equipment was tested and worked as it should. She declined comment when asked about the issues mentioned in those units by the NTSB.

The 787 program was already years behind schedule before last week's grounding, which means Boeing cannot deliver newly manufactured planes to customers.

That means customers such as United Continental Holdings Inc may have to wait even longer for planes on order. The company's United Airlines already flies six Dreamliners.

"History teaches us that all new aircraft types have issues and the 787 is no different," United Continental Chairman and Chief Executive Jeff Smisek said during the carrier's earnings conference call. "We continue to have confidence in the aircraft and in Boeing's ability to fix the issues, just as they have done on every other new aircraft model they've produced."

Smisek said that the carrier still expects to take delivery of two more 787s in the second half of the year.

Boeing has already delivered 50 of the 787s. Around half have been in operation in Japan, but airlines in India, South America, Poland, Qatar and Ethiopia are also flying the planes, as is U.S. carrier United.

The grounding of the Dreamliner, an advanced carbon-composite aircraft with a list price of $207 million, has already forced hundreds of flight cancellations worldwide.

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Starbucks stays hot in U.S., Asia; shares rise

New York, Feb 4  : Starbucks Corp (SBUX) reported stronger-than-expected sales in the United States and Asia despite economic uncertainty worldwide, offsetting unexpected costs including the bill for cleaning up after Superstorm Sandy.

Shares in the world's biggest coffee chain rose 1.9 percent in after-hours trade, even though the company's first-quarter profit matched but did not exceed Wall Street estimates and it merely repeated its forecasts for the full year. Starbucks often tops profit expectations and raises forecasts.

Seattle-based Starbucks is frequented by affluent consumers with extra money to spend on premium drinks like lattes and mochas, but the chain's executives joined industry peers in adopting a cautious stance for the new year, largely because of concerns that this month's U.S. payroll tax increase could depress consumer spending.

It's too early to tell whether the tax hike that is reducing take-home pay will have an impact on the company's business, Chief Financial Officer Troy Alstead said.

Starbucks' results landed a day after fellow restaurant bellwether McDonald's Corp (MCD) reported an unexpected rise in December sales at established U.S. restaurants. But McDonald's also warned that its January same-restaurant sales would fall as it follows strong year-ago results and fights for the business of budget-conscious diners.

"We don't know where the consumer is going to shake out this year," Edward Jones analyst Jack Russo said.

Starbucks reported net earnings of $432.2 million, or 57 cents per share, for the fiscal first quarter that ended December 30, meeting the average analyst estimate. That was up from $382.1 million, or 50 cents per share, a year earlier.

Overall revenue jumped almost 11 percent to $3.80 billion during the quarter, which is Starbucks' biggest for sales.

Global sales at stores open at least 13 months were up 6 percent - topping the 5.5 percent rise analysts polled by Consensus Metrix had expected. Performance was helped by a 4 percent increase in traffic and a 2 percent increase in average spending per visit.

Same-store sales rose 7 percent in the U.S.-dominated Americas region - which contributes about 75 percent of overall revenue at Starbucks - and topped analysts' estimate of 5.9 percent.

Sales at established shops were up 11 percent in the China/Asia Pacific region and down 1 percent in Europe, the Middle East and Africa. Results from Asia were better than expected, while EMEA was a bit worse.

Executives said they were pleased with the performance of the new Verismo single-cup coffee and espresso brewer. More than 150,000 Verismo brewers were sold in the first quarter, CFO Alstead said.

Overall operating margin expanded 40 basis points to 16.6 percent, despite a contraction in the Americas due to expenses related to Superstorm Sandy in the United States, litigation and a large conference the company hosted.

Seattle-based Starbucks reiterated its forecasts for the full year, including earnings per share of $2.06 to $2.15.

Shares in Starbucks rose 1.9 percent to $55.62 in extended trading after closing at $54.57.

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Starbucks stays hot in U.S., Asia; shares rise

New York, Feb 4  : Starbucks Corp (SBUX) reported stronger-than-expected sales in the United States and Asia despite economic uncertainty worldwide, offsetting unexpected costs including the bill for cleaning up after Superstorm Sandy.

Shares in the world's biggest coffee chain rose 1.9 percent in after-hours trade, even though the company's first-quarter profit matched but did not exceed Wall Street estimates and it merely repeated its forecasts for the full year. Starbucks often tops profit expectations and raises forecasts.

Seattle-based Starbucks is frequented by affluent consumers with extra money to spend on premium drinks like lattes and mochas, but the chain's executives joined industry peers in adopting a cautious stance for the new year, largely because of concerns that this month's U.S. payroll tax increase could depress consumer spending.

It's too early to tell whether the tax hike that is reducing take-home pay will have an impact on the company's business, Chief Financial Officer Troy Alstead said.

Starbucks' results landed a day after fellow restaurant bellwether McDonald's Corp (MCD) reported an unexpected rise in December sales at established U.S. restaurants. But McDonald's also warned that its January same-restaurant sales would fall as it follows strong year-ago results and fights for the business of budget-conscious diners.

"We don't know where the consumer is going to shake out this year," Edward Jones analyst Jack Russo said.

Starbucks reported net earnings of $432.2 million, or 57 cents per share, for the fiscal first quarter that ended December 30, meeting the average analyst estimate. That was up from $382.1 million, or 50 cents per share, a year earlier.

Overall revenue jumped almost 11 percent to $3.80 billion during the quarter, which is Starbucks' biggest for sales.

Global sales at stores open at least 13 months were up 6 percent - topping the 5.5 percent rise analysts polled by Consensus Metrix had expected. Performance was helped by a 4 percent increase in traffic and a 2 percent increase in average spending per visit.

Same-store sales rose 7 percent in the U.S.-dominated Americas region - which contributes about 75 percent of overall revenue at Starbucks - and topped analysts' estimate of 5.9 percent.

Sales at established shops were up 11 percent in the China/Asia Pacific region and down 1 percent in Europe, the Middle East and Africa. Results from Asia were better than expected, while EMEA was a bit worse.

Executives said they were pleased with the performance of the new Verismo single-cup coffee and espresso brewer. More than 150,000 Verismo brewers were sold in the first quarter, CFO Alstead said.

Overall operating margin expanded 40 basis points to 16.6 percent, despite a contraction in the Americas due to expenses related to Superstorm Sandy in the United States, litigation and a large conference the company hosted.

Seattle-based Starbucks reiterated its forecasts for the full year, including earnings per share of $2.06 to $2.15.

Shares in Starbucks rose 1.9 percent to $55.62 in extended trading after closing at $54.57.

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787 probe far from complete, regulator "very concerned"

Washington, Feb 4 : US safety regulators are nowhere near finishing an investigation into a battery fire on the Boeing Co 787 Dreamliner, a top official said, raising the prospect of a prolonged grounding for the aircraft.

Deborah Hersman, chairman of the National Transportation Safety Board, made clear that investigators have found a series of "symptoms" in the battery damaged in a January 7 fire in Boston, but not the underlying cause of the problem. She also said the agency would be looking at the design of the battery compartment area of the plane and whether the certification standards had been strong enough.

The comments were seen by some safety experts within the aerospace industry as a clear signal that this is no longer just a teething issue for the new plane.

That will raise questions about the financial impact for Boeing, which is still running its assembly lines and backing up aircraft to be delivered, and for airlines, many of which counted on getting the futuristic 787 for their expansion plans.

"We are early in our investigation, we have a lot of activities to undertake," Hersman told a news conference.

"This is an unprecedented event. We are very concerned. We do not expect to see fire events on board aircraft. This is a very serious air safety concern."

She rebuffed multiple questions on how long the investigation would take, making clear it could be weeks or more. She also would not say when the 787 would fly again, which is in the hands of the Federal Aviation Administration.

Former NTSB Chairman Mark Rosenker said the briefing made it clear the investigators had come up short in their hunt for the cause of the battery fire.

"It's going to take them longer," he said in an interview. "Weeks, not days."

Richard Aboulafia, aerospace analyst with the Virginia-based Teal Group, said the NTSB briefing was a sobering reminder that investigators have not made much headway on finding a cause for the battery problems.

"It was hard to find a lot of optimism on the call. It sounds like they're still in the middle of a lot of hard work and a lot of mysteries," Aboulafia said. "It just wasn't encouraging. Fire is the last thing you want on an airplane."

The 787 has been grounded worldwide since an All Nippon Airways plane made an emergency landing in Japan on January 16 after a battery incident, which Hersman said may or may not have been a fire.

That emergency landing came after a fire occurred on a Japan Airlines Co Ltd 787 on the tarmac in Boston.

In a statement, Boeing said it was cooperating with regulators and had teams of "hundreds of engineering and technical experts" working on the situation.

"Boeing is eager to see both investigative groups continue their work and determine the cause of these events, and we support their thorough resolution," the company said, adding it was not permitted to comment directly on the ongoing investigations.

Still, Boeing shares are actually up 1.3 percent since regulators said the plane - full of high-tech innovations that are supposed to be a model for future aviation - could not fly.

At least one customer, Poland's LOT, has already raised the prospect of seeking compensation for its losses. Another, China's Hainan Airlines Co Ltd, said this week it was disappointed in the delays and that its expansion plans had been affected as a result.

Rosenker, the former NTSB official, noted that other new planes had problems when they were introduced, but not fires, which makes this situation stand out.

"Fire is something you don't fool with," he said. "You've got to understand that, particularly given the short period of time the aircraft has been flying."

Boeing has said in the past that, because of their chemical composition, these batteries are difficult to extinguish once they catch fire. As such, the plane is designed to contain fires while they burn themselves out.

Hersman, talking to reporters after the news conference, confirmed that there is no fire suppression system in the area where the battery burned, nor any way to access it in-flight.

Asked if the lack of a fire suppression system in the battery compartment was a design flaw, she said: "We'll certainly be looking at the design and we'll be looking at the certification standards to determine if they were robust enough."

If regulators do decide design changes are needed, that could have implications for Boeing's European rival Airbus and its future A350 jetliner.

"We believe so far we have a robust design, however we will draw the lessons from the 787," Airbus Chief Executive Fabrice Bregier said at the World Economic Forum in Davos.

Billed as Europe's response to the Dreamliner, the A350 is due to enter service next year using lithium-ion batteries, but without the same reliance on electrical systems as the 787, something Airbus says will put less burden on the batteries.

However, Airbus has so far declined to comment on how it would tackle a battery fire if one did break out on board.

FAA and NTSB inspectors visited a UTC Aerospace Systems plant in Phoenix, although a company spokesman declined to say what they focused or how long they would be at the plant. UTC makes the aircraft's auxiliary power unit.

Fiona Greig, a spokeswoman for Securaplane, which makes the battery charging unit and start power unit, said its equipment was tested and worked as it should. She declined comment when asked about the issues mentioned in those units by the NTSB.

The 787 program was already years behind schedule before last week's grounding, which means Boeing cannot deliver newly manufactured planes to customers.

That means customers such as United Continental Holdings Inc may have to wait even longer for planes on order. The company's United Airlines already flies six Dreamliners.

"History teaches us that all new aircraft types have issues and the 787 is no different," United Continental Chairman and Chief Executive Jeff Smisek said during the carrier's earnings conference call. "We continue to have confidence in the aircraft and in Boeing's ability to fix the issues, just as they have done on every other new aircraft model they've produced."

Smisek said that the carrier still expects to take delivery of two more 787s in the second half of the year.

Boeing has already delivered 50 of the 787s. Around half have been in operation in Japan, but airlines in India, South America, Poland, Qatar and Ethiopia are also flying the planes, as is U.S. carrier United.

The grounding of the Dreamliner, an advanced carbon-composite aircraft with a list price of $207 million, has already forced hundreds of flight cancellations worldwide.

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Morgan Stanley CEO Gorman made $6 million for 2012

New York, Feb 4  : Morgan Stanley (MS) Chief Executive Officer James Gorman received lower compensation for 2012 after a difficult year for the bank in which profits declined.

Gorman received $6 million in total compensation for 2012, including $800,000 in salary, $2.6 million in deferred cash and $2.6 million in stock options, a person familiar with the matter said. He did not receive a cash bonus.

Gorman made $8.56 million for 2011, when counting salary, deferred cash and restricted stock grants.

Morgan Stanley's board also plans to award Gorman an undetermined amount of long-term incentive pay for 2012, the source said. But he will still make less than the $10.5 million total he made in 2011, when counting $1.9 million in long-term incentive pay, the source said.

Gorman isn't the only Wall Street chief taking a pay cut. JPMorgan Chase & Co (JPM) last week slashed CEO Jamie Dimon's bonus by half after the bank lost more than $6 billion on its disastrous "London Whale" trade.

Goldman Sachs Group Inc (GS) CEO Lloyd Blankfein, however, received a more than 50 percent increase in restricted shares as part of his bonus for 2012, according to filings last week.

Morgan Stanley disclosed stock and option awards for top executives in filings with the U.S. Securities and Exchange Commission. The rest of the executives' pay will be disclosed later in the company's annual proxy filing.

Among the executives, Chief Financial Officer Ruth Porat received 99,834 shares of restricted stock, worth $2.29 million, the day the shares were granted.

Gorman received stock options, which give the holder the right to buy stock at a certain price, instead of restricted stock grants for corporate tax reasons, the source said. Granting options was a way to maintain deductibility, which is allowed under IRS rules, the source said.

Porat was able to receive restricted stock because CFO compensation was not subject to the same tax deduction limits, the source said. The Obama administration is considering Porat for a position as Treasury deputy secretary, a source familiar with the matter said last week.

Charles Elson, director of the Weinberg Center for Corporate Governance at the University of Delaware, said he was surprised to see the use of stock options to pay Gorman because restricted shares are considered to be more in line with shareholder interests.

Restricted stock goes up and down with the value of a company's stock, while stock options can vary from being worth a lot to becoming worthless, he said. Restricted shares "are not a trip to Las Vegas," he said. "It's an ownership stake."

Morgan Stanley is still reinventing itself after the financial crisis. Its multi-billion dollar investment in Citigroup's Smith Barney retail brokerage is only just starting to generate the kinds of profit margins the bank had hoped for. And its fixed-income trading business is lagging peers', weighing on Morgan Stanley's overall profitability.

For all of 2012, the bank reported a loss for shareholders from continuing operations of $50 million, down from a $2.1 billion profit in 2011, when including accounting charges related to changes in the value of the bank's debt. Excluding those charges, the bank made $3.1 billion in 2012, up from a loss of $136 million in 2011.

The bank's fourth-quarter results showed progress, beating analysts' estimates by a wide margin, and leading Gorman to proclaim the bank had turned itself around.

Morgan Stanley is one of several Wall Street banks using layoffs and compensation cuts to help boost its bottom line. Across the entire company, compensation costs fell by $711 million, or 4 percent, in 2012 as Morgan Stanley cut nearly 5,000 employees from its payroll.

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Whitman Capital founder gets two years for insider trades

New York, Feb 4 : California hedge fund manager Doug Whitman was sentenced to two years in prison after he became the first defendant in a broad U.S. crackdown on insider trading to take the stand to convince jurors of his innocence.

U.S. District Judge Jed Rakoff in Manhattan imposed the sentence, which was less than half the 4-1/4 to 5-1/4 years that federal prosecutors wanted.

Whitman, the founder of Whitman Capital LLC in Menlo Park, was convicted in August of securities fraud and conspiracy over his involvement in two insider trading schemes between 2006 and 2009.

Prosecutors said one scheme resulted in more than $900,000 of illegal profit from trading the shares of Google Inc and video-conferencing company Polycom Inc.

They said the other involved "soft-dollar" payments used to obtain tips on and then trade in chipmaker Marvell Technology Group Ltd.

Rakoff said he believed Whitman "repeatedly perjured himself" on the stand and was "willfully, blatantly aware that he was trading on inside information every step of the way."

But he also noted evidence of the defendant's good character, including his assistance to children with learning disabilities, in imposing punishment.

Before learning his punishment, Whitman, 55, choked up as he read from a prepared statement in which the Atherton, California, resident alluded to the breakup of his 20-year marriage soon after he was charged.

"This has been the most painful and shaming experience of my life," Whitman said. "My father taught me not to cut corners and I tried to apply that to my life and my job ... My trial and my conviction have served as a rude and bitter wakeup call."

Whitman was also fined $250,000 and sentenced to one year of supervised release. He was granted bail pending an expected appeal. Federal prosecutor Chris LaVigne said the government will seek a forfeiture of $935,306 of illegal profit.

"Doug Whitman maintains his innocence and looks forward to vindication on appeal," his lawyer David Anderson said in a statement.

Whitman had sought a maximum prison term of six months.

Another of his lawyers, David Rody, told Rakoff that a long sentence was not needed for deterrence, and that prosecuting a "relatively smaller player" such as Whitman was enough to convince others in the hedge fund industry that "nobody's safe."

U.S. Attorney Preet Bharara in New York has obtained well over than 60 guilty pleas and verdicts since publicly revealing his insider trading probe in late 2009.

Prosecutors said Whitman tried to make illegal profit with the help of insiders such as Roomy Khan, a former Intel Corp employee who passed tips on Google and Polycom, and Karl Motey, a consultant who passed tips about Marvell.

Also testifying against Whitman was Wesley Wang, a former Whitman Capital employee who later worked at Steven Cohen's SAC Capital Advisors LP.

Khan, Motey and Wang have pleaded guilty to various crimes linked to insider trading. They have been cooperating with investigators with the hope of receiving lighter sentences.

As in many other recent insider trading prosecutions, the government's evidence against Whitman included telephone conversations secretly recorded by the FBI.

Khan was also a central figure in the government's prosecution of Galleon Group LLC hedge fund founder Raj Rajaratnam, a former billionaire who is now serving an 11-year prison sentence for insider trading.

Wang, meanwhile, has given the government information on as many as 20 people who may have been involved in insider trading, prosecutors have said. Among those he named was Dipak Patel, a former SAC portfolio manager.

Rakoff often imposes lesser sentences than the sentencing guidelines recommend and ignored the 10- to 12-month recommended lengthening of Whitman's sentence for perjury.

The judge said that provision could "chill" defendants from defending themselves under oath and be "an impediment to innocent people taking the stand and clearing their name."

In October, Rakoff sentenced former Goldman Sachs Group Inc director Rajat Gupta to two years in prison for tipping Rajaratnam - well below the eight to 10 years guideline range that prosecutors wanted. Gupta is appealing his conviction.

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Microsoft profit dips ahead of Office revamp

Seattle, Feb 4 : Microsoft Corp's quarterly profit edged lower as Office software sales slowed ahead of a new launch, offsetting a solid but unspectacular start for its Windows 8 operating system and sending the company's shares down 1.4 percent.

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

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

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

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

Wall Street had expected 75 cents per share, on average.

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

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

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

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

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

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

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

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

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

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

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

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

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

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Frisking intensified

Srinagar, Feb 4 : Authorities have beefed up security ahead of R-Day celebrations across the Valley. Searches and frisking have been intensified.

The police and CRPF personnel at many places in Srinagar city were seen carrying out through frisking of light vehicles. The documents of bikes were also being checked.  

Vehicles entering the city from outskirts were also being searched at different places and travelers frisked and their identity cards properly checked.

“Though there is no particular information about militant threat to cause disturbances during R-Day function but we have to make sure that arms and ammunition are not smuggled into the city,” a senior police officer told Greater Kashmir.

He added that forces are conducting random searches of vehicles instead of stopping every vehicle which crosses the area. “So far nothing was recovered,” the officer said adding the searches will continue till late in the night and tomorrow morning also.

The officer said sharp shooters would remain deployed on high rise buildings while a close watch will be maintained through Close Circuit Cameras (CCC) installed in Srinagar, where the main R-Day function would be held at Bakshi Stadium.

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‘LPG home delivery system streamlined’

Srinagar, Feb 4: Divisional Commissioner, held Kashmir, Dr Asgar Hassan Samoon directed the officers of all the districts to ensure home delivery of LPG in all the areas of the Valley so that consumers are facilitated by obtaining LPG at their doorsteps.

In a statement after video conference meeting with officers, Dr Samoon said that 60 LPG agencies need to be created against existing 43 agencies functioning in the Valley so that maximum coverage of all the areas is ensured.

He directed for proper publicity of numbers and areas of operation of all the Gas dealers through print and electronic media.

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Girl ends life,10 attempt suicide

Pulwama, Feb 4 : In a tragic incident, a girl committed suicide in held Kashmir’s Awantipora area, while 10 others made an abortive bid to end their lives after class 12th examinations results were announced.  

Shazia Khan, 18, daughter of Ghulam Rasool Khan, of Padgampora consumed some poisonous substance soon after she came to know about the result of her senior secondary school exam. “The girl was apparently upset after failing to qualify the examination,” a police official told Greater Kashmir. 

“The girl had consumed rat poison. She was rushed to the Awantipora hospital where from she was shifted to SMHS Srinagar where doctors declared her brought dead,” the official added.

Pertinently, last month a teenage girl from Kokernag area of Islamabad district had also ended her life by consuming poison after she failed in the secondary school examination. The girl had called her father before consuming poison and told him that she had worked hard and was expecting good results but could not believe that she had failed.

Meanwhile ten students made an abortive bid to end their life in the Valley for failing in 12th class Board Examination.

Official sources said the Valley’s prime specialty, SMHS hospital received around 10 cases of attempted suicides by the unsuccessful students out of which two were put on ventilator in critical condition.

According to sources students had mostly chosen to consume poisonous substances like Oxgano-Phosphate, rodenticides or high dose of sedatives depending upon the availability.
 The Causality Medical Officer (CMO), Dr Altaf said the hospital had registered only six suicide attempt cases since out of which two were put on ventilator in critical condition.
 However, he admitted that the cases might be higher.

“Most of the times people don’t report to us due to societal taboos and sense of guilt attached to it. The remaining patients either flee the hospital soon after the recovery or don’t register themselves,” he said.

As per Valley psychiatrists the tendency for self-harm (suicides) is directly related to huge parental and societal expectation of performance in formal education.

“Children who don’t somehow fit in the routine formal education set-up face a lot of stress, humiliation and challenge to their self-esteem, sometimes resulting in such extreme behavior,” said a known psychiatrist, Dr Arshad Hussain.

He said it was high time for us to realize that everyone does not necessarily fit into the scheme of things in the prevailing education system. “We have got to accept and love our children, letting them take what are termed as successes and failures as learning experiences,” he said.

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New genetic subtype of lung cancer defined

Islamabad, Feb 4 : A report from investigators at the Massachusetts General Hospital (MGH) Cancer Center has defined the role of a recently identified gene abnormality in a deadly form of lung cancer. Tumors driven by rearrangements in the ROS1 gene represent 1 to 2 percent of non-small-cell lung cancers (NSCLC), the leading cause of cancer death in the U.S.

The researchers show that ROS1-driven tumors can be treated with crizotinib, which also inhibits the growth of tumors driven by an oncogene called ALK, and describe the remarkable response of one patient to crizotinib treatment.

"ROS1 encodes a protein that is important for cell growth and survival, and deregulation of ROS1 through chromosomal rearrangement drives the growth of tumors," says Alice Shaw, MD, PhD, of the MGH Cancer Center -- co-lead author of the paper which has been published in the Journal of Clinical Oncology. "This finding is important because we have drugs that inhibit ROS1 and could lead to the sort of dramatic clinical response we describe in this paper."

The current findings add ROS1 to the list of genes known to drive NSCLC growth when altered -- a list that includes KRAS, mutations of which account for about 25 percent of cases; EGFR, accounting for 10 to 15 percent; and ALK, rearranged in about 4 percent. Altogether, known cancer-causing genetic changes have been found in a little more than half of NSCLC tumors. Originally identified in brain tumors, ROS1 rearrangement previously had been identified in one NSCLC patient and one NSCLC cell line. The current study was designed to determine the frequency of ROS1 rearrangement in NSCLC and to define the characteristics of patients with ROS1-rearranged tumors.

The investigators screened tumor samples from more than 1,000 NSCLC patients treated at the MGH, Vanderbilt University, the University of California at Irvine, and Fudan University in Shanghai, China. ROS1 rearrangement was identified in 18 tumor samples, for a prevalence of 1.7 percent; ALK rearrangements were identified in 31 samples, with no samples showing alterations in both genes. Patients with ROS1-positive tumors tended to be younger, never to have smoked and to have a type of lung cancer called adenocarcinoma -- characteristics very similar to those of ALK-positive patients.

An earlier MGH study of an experimental ALK inhibitor had found the drug suppressed the growth of a ROS1-positive cell line in addition to ALK-positive cell lines, suggesting that ROS1-positive tumors might be sensitive to the ALK-inhibitor crizotinib. This observation led corresponding author John Iafrate, MD, PhD, and his team to develop a diagnostic test that could identify ROS1-positive tumors. Around the time that test became clinically available, a lung cancer patient whose tumor had not responded to drugs targeting EGFR mutations was referred to the MGH Cancer Center for genetic testing. His tumor was negative for ALK but later proved to harbor a ROS1 rearrangement, and he was enrolled in an extension of the crizotinib clinical trial first reported in the October 28, 2010, New England Journal of Medicine.

"When he enrolled in the trial last April, this patient was extremely sick -- with significant weight loss and very low oxygen levels -- and was barely able to walk," says Shaw. "Within a few days of starting crizotinib, he felt better; and by the time we scanned his chest at seven weeks, the tumors had essentially disappeared from his lungs." Nine months after starting crizotinib therapy, this patient continues to do well. Additional ROS1-positive patients have been enrolled in this trial at MGH, at UC Irvine and at the University of Colorado.

Shaw is an assistant professor of Medicine and Iafrate is an associate professor of Pathology at Harvard Medical School. Co-lead authors are Kristin Bergethon, MGH Pathology, and Sai-Hong Ignatius Ou, MD, PhD, University of California at Irvine. The study was supported by grants from the National Institutes of Health and from Pfizer, which received FDA approval for crizotinib in August 2011.

Additional co-authors are Ryohei Katayama, Eugene Mark, Julie Batten, Eunice Kwak, Jeffrey Clark, Jeffrey Engelman, and Mari Mino Kenudson, MGH Cancer Center; Christina Siwak-Tapp, University of California at Irvine; Keith D. Wilner, Pfizer; Christine Lovly, Nerina McDonald, Pierre Massion, Adriana Gonzalez, David Carbone, and William Pao, Vanderbilt University Medical Center; Pierre Massion, Nashville Veterans Affairs Medical Center; Rong Fang and Hongbin Ji, Shanghai Institutes for Biological Sciences; and Haiquan Chen, Shanghai Medical College, Fudan University.

Massachusetts General Hospital, founded in 1811, is the original and largest teaching hospital of Harvard Medical School. The MGH conducts the largest hospital-based research program in the United States, with an annual research budget of more than $750 million and major research centers in AIDS, cardiovascular research, cancer, computational and integrative biology, cutaneous biology, human genetics, medical imaging, neurodegenerative disorders, regenerative medicine, reproductive biology, systems biology, transplantation biology and photomedicine.

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Norovirus is the leading cause of infection outbreaks in US hospitals

Islamabad, Feb 4 : Norovirus, a pathogen that often causes food poisoning and gastroenteritis, was responsible for 18.2 percent of all infection outbreaks and 65 percent of ward closures in U.S. hospitals during a two-year period, according to a new study published in the American Journal of Infection Control (AJIC), the official publication of APIC -- the Association for Professionals in Infection Control and Epidemiology.

A team of researchers from Chartis, Main Line Health System, Lexington Insurance Company, and APIC Consulting Services collected survey responses from 822 APIC members who work in U.S. hospitals regarding outbreak investigations at their institutions during 2008 and 2009. The study was conducted to determine how often outbreak investigations are initiated in U.S. hospitals, as well as the triggers for investigations, types of organisms, and control measures including unit closures.

Thirty-five percent of the 822 hospitals responding had investigated at least one outbreak in the previous two years. Four organisms caused nearly 60 percent of the outbreaks: norovirus (18.2 percent), Staphylococcus aureus (17.5 percent), Acinetobacter spp (13.7 percent), and Clostridium difficile (10.3 percent). These results reflect 386 outbreak investigations reported by 289 hospitals over a 24-month period.

Medical/surgical units were the most common location of outbreak investigations (25.7 percent), followed by surgical units (13.9 percent). Nearly one-third (29.2 percent) of outbreaks were reported in a category that included emergency departments, rehabilitation units, long-term acute care hospitals, psychiatric/behavioral health units, and skilled nursing facilities. According to the results, the average number of confirmed cases per outbreak was 10.1 and the average duration was 58.4 days. Unit closures were reported in 22.6 percent of the cases, causing an average 16.7 bed closures for 8.3 days.

Of reported outbreaks, only 132 (52.2 percent) of investigations were reported to an external agency, with just 71 (28.4 percent) involving assistance in the investigation by an external resource. In most states, reporting to the state health department is required and can provide hospitals with expertise to expedite and expand their outbreak investigations.

"It is clear that outbreaks of healthcare-associated infections occur with some frequency in hospitals as well as nonacute settings," state the authors. "An infection prevention and control program and its staff should be prepared for all aspects of an outbreak investigation through written policies and procedures as well as communication with internal and external partners."

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Exposure to common environmental bacteria may be source of some allergic inflammation

Islamabad, Feb 4: New research published in the Journal of Leukocyte Biology suggests that certain strains of Pseudomonas aeruginosa cause white blood cells to produce high levels of histamine, which worsens the severity of inflammation and infection.

Could some cases of asthma actually be caused by an allergic reaction to a common environmental bacteria? New research findings published in the Journal of Leukocyte Biology suggests that this idea may not be as far-fetched as it seems.

In a research report appearing in the February 2012 print issue, researchers show a link between common environmental bacteria and airway inflammation. Specifically, their research suggests that some strains of Pseudomonas aeruginosa cause white blood cells to produce very high levels of histamine, which in turn leads to inflammation, a hallmark symptom of asthma.

"We hope that these findings in mice will encourage human-focused research regarding bacterial stimulation of histamine production by white blood cells, like neutrophils, that are not traditionally associated with allergic inflammation," said George Caughey, M.D., a researcher involved in the work from the Veterans Affairs Medical Center and University of California in San Francisco. "Such research could improve our understanding of inflammation in bacterial infections, and help us to craft therapies for relief of inflammation and its consequences for short and long-term health."

To make this discovery, scientists studied the effect of two strains of pseudomonas bacteria on isolated mouse white blood cells tasked with killing bacteria, called neutrophils. Results showed that one strain killed the neutrophils, but the second strain produced substances that caused the neutrophils to increase their production of histamine significantly. To see if their discovery was applicable outside of the test tube, the histamine-stimulating strain was then used to infect mice to produce bronchitis and pneumonia. These mice experienced a significant increase of histamine in their airways and lungs. Additional work showed that the bacteria persuade neutrophils to produce histamine by causing them to make much more of the key enzyme in histamine synthesis (histidine decarboxylase) than neutrophils would otherwise do in the unstimulated state.

"Despite advances in diagnosing and treating the symptoms of asthma and allergy, our understanding of the underlying initiating events remains elusive," said John Wherry, Ph.D., Deputy Editor of the Journal of Leukocyte Biology. "This report helps shed light on how an 'everyday organism' might trigger asthma and allergy from an immune cell type not normally thought to be involved in allergic disease."

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Afghan intelligence chief to return to Afghanistan 'soon'

Kabul, Feb 3 : Afghanistan's intelligence chief Asadullah Khalid, who is undergoing treatment at a hospital in the US, said his health is improving and he will soon return to Afghanistan.

In a video message broadcast by the Afghan presidential palace office, Khalid said he was recovering from the injuries he received in a suicide bomb attack against him last month.

"I am fine and I am getting better day by day. I am feeling very well and I will return back my county very soon," he said.

On the video, he is seen showing his hands, saying that he is able to move them and the doctors have taken out the rods from of them.

Khalid survived the suicide attack at a National Directorate of Security (NDS) guesthouse in Kabul on December 6, sustaining serious injuries to the lower parts of his body. He was taken to the US for treatment on December 15.

The bomber, who met with Khalid on the pretext of peace talks, carried the bomb in his underwear.

President Hamid Karzai visited Khalid in hospital last week during his three-day official trip to the US.

Karzai appointed Khalid the head of the NDS in September 2012.

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Corruption will bring Afghanistan to its knees: Mojaddadi

Kabul, Feb 3 : Corruption in Afghanistan will bring the country to its knees if it continues, the former head of the senate told government officials and civil society activists at a gathering to address national concerns.

Labeling corruption in Afghanistan as shameful, Sebghatullah Mojaddadi said that the rampant graft may cripple Afghanistan, and suggested that to eradicate it tougher punishments need to be enforced on everyone equally and with no exception.

"The main cause of people's problems is corruption. In our country, there is murder, rape, kidnapping, stealing, and until religious laws are enforced on all – from the President to the ordinary citizen – we will not be out of this problem," he told the gathering in Kabul.

The Minister of Information and Culture Sayd Makhdoom Raheen said that better communication will help resolve the problems discussed at the meeting.

"What we need now is to resolve the country's important issues by communications and talks. We should listen to all opinions here and plan a solution for the issues, and put it into practice," he said.

An official from the Ministry of Defence stated that low capacity and sabotaging of activities were among the main challenges facing security, a topic also addressed at the gathering.

"Lack of capabilities among us is known as a threat. If we don't improve it, and if the lives of our soldiers are at risk every day, we will definitely lose the support from people and the soldiers' families which will cause us not to be triumphant in the battles," said Operational Head of Ministry of National Defence Afzal Aman said.

Ministry of Interior spokesman Sediq Sediqi said, "The intelligence of the neighbouring countries is trying to sabotage the process of police trainings. The neighbouring countries don't want the Afghan police to be trained by the international community."

The current number of military staff in the country is almost 352,000, with about 195,000 in the Afghan National Army and 157,000 in the national police. That is an average of 800 security personnel per district, although they are not distributed evenly across the districts.

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We don't want our burqas back: women in Afghanistan on the Taliban's return

Kabul, Feb 3 : Pre-dawn in Kabul. In each dark street a short line of giant lightbulbs switch on, red, green and white, marking bakeries where warm slabs of golden flatbread are handed through open shop-front windows to sleepy little boys in white tunics and to men with blankets round their shoulders picking up lunch on their way to work.

"This is man's bread," says Hamil Fareed, a young baker. "Women's bread," he explains, is different, the dough kneaded at home by mothers and cooked out of sight at the back in the clay ovens and returned to the family.

The segregation of Kabul's daily bread is not a cultural tradition, but started under the Taliban in the 1990s. Faced with a half-starved city of war widows barred from working, studying or leaving their homes, someone began a clandestine communal fire pit where women could bake flatbread for their children and earn a few coins by selling them on. The UN, impotent in quelling the vicious war, encouraged more such schemes and, when the Taliban soldiers who roamed the streets seemed to tolerate figures in burqas creeping out to little backstreet bakeries, heralded it as a "step forward" in women's rights.

The international community said the fall of the Taliban in 2001 would bring in a new era of rights. Afghanistan's women and girls would be returned to schools and workplaces and freed from the infamously fierce restrictions on their lives. It was a key political justification used by the British and Americans for their continued presence. That year US secretary of state Colin Powell declared that restoring women's human rights would "not be negotiable". Prime minister Tony Blair promised: "The conflict will not be the end. We will not walk away, as the outside world has done so many times before." Now, with the withdrawal of international forces and their caravan of international agencies, consultants and contractors looming in 2014, there is evidence that Afghan women have seen very few of the promised changes and are terrified of the future.

The outside world has used Afghanistan as a pawn in its geopolitical "great games" since the 19th century and ensnared it in a labyrinth of strategic and economic interests. Since 2001 the country has received some £60bn of aid; there have been tangible improvements in education, maternal mortality, employment, and the representation of women in governance. But there are signs that those gains are too fragile to survive the international community's departure.

A 2012 survey of women across Afghanistan by the charity ActionAid found that nine out of 10 feared the departure of the international community, believing that their lives will significantly deteriorate. And violence against women has never been higher: 87% of women report domestic abuse.

The return of 2.2 million girls to school after 2001 was considered the international community's great triumph, but in the past few years schools have been closing behind the departing backs of phased-out foreign forces. There have been reports of schoolgirls poisoned and beaten, headteachers assassinated and classrooms firebombed. The majority of girls don't stay on after fifth grade and nine out of 10 15-year-old girls are illiterate. Some girls are enrolled in schools but never go.

The British and other forces have built dozens of rural schools which the Afghan government cannot afford to keep open after 2014, and the same is true of the health clinics. Of the 5.8 million without access to healthcare in Afghanistan, 4.4 million are women.

There is rhetoric. And there is reality. Last year the UK's international development committee found "little evidence" to back up the British government's claims of commitment to promoting the rights of Afghan women. Among projects that receive the current £178m of UK annual aid poured into Afghanistan, only two are earmarked to help women.

The Elimination of Violence Against Women Act was brought into law in 2009, but it is widely ignored by courts, religious leaders have declared it un-Islamic, and in 2012 the US-backed government of President Hamid Karzai undermined it by upholding the right of a husband to beat his wife.

Half the female prison population are convicted of "moral crimes" – which include running away from violent husbands, fathers or in-laws. Federal law is universally ignored in the local courts, where nearly 90% of all criminal and civil legal disputes are settled, and where girls are bartered to settle family disputes and a man who kills his wife can expect a fine.

It is estimated the US government put $15m (£9.3m) into supporting the "informal justice" sector last year, entrenching repressive mentality. In April 2011, the Afghan government sought to reintroduce public morality laws, regulation was drafted to impose wedding codes to ensure that brides were modestly dressed, to ban music at weddings and to prevent male and female guests mixing. Shops were to be fined for selling inappropriate wedding clothes.

That caused consternation among the businessmen owners of Kabul's kitsch wedding halls. But Afghan's wealthy are unlikely to be around much longer. In the capital building grit still smothers the air, rising from spades and pickaxes as men work the giant ditches that line the pock-marked, uneven streets, but construction is slowing – many villas remain half-built and building sites deserted. The boom is over, the exodus has started, and property prices are dropping as houses empty of foreign agencies and wealthier Afghans.

Outside Kabul, in Balkh Province where the Taliban is gaining strength, signs of its influence are everywhere. Few women in Mazar-i-Sharif travel without a burqa – last year the religious council of the famous Blue Mosque, one of the few places where women are able to socialise in public, banned women from its weekly meetings.

The women I spoke to in Afghanistan were deeply afraid of the future, and thoroughly exhausted by their precarious lives, in which bombs and rockets still explode. 2014 will bring elections and a powerful network of conservative men; Taliban and warlords are edging into the gap the internationals will leave. And the little clay ovens still cook up women's bread and men's bread in a country expecting their return.

A mother of two teenage daughters, Fawzia Koofi, 36, has been MP for Badakhshan Province for seven years, and recently announced her intention to stand as a presidential candidate in 2014. Her husband died in a Taliban prison. Her father was killed by mujahaideen during the civil war. The seventh daughter, as a newborn she was left out in the sun to die before her parents relented.

If it hadn't been for the Taliban, Koofi would be a doctor now. "I was studying medicine when the Taliban came in 1996. That was my last day as a student. All of a sudden I was at home. You can see everything from your window, but you can't taste it, you can't touch it. I felt like a dead body."

Today she fears for the security of women in the public eye. "When the opportunity came in 2001, that was the time many of us started thinking of doing greater things, to contribute. We started programmes in health and education. We were told the international community was behind us – it was as if life had begun again after having been buried away in a box for so long.

"But the reality has not been what we were promised. There is lip service paid by the Afghan and US governments – gender projects created – but we can't access budgets.

"A few in this nation have come to the understanding that stopping girls' education halts a family's progress. I'm hopeful we will not go back to scratch. But I also know we will suffer – the main victims of the political games will be women and children."

She believes the women of Afghanistan have become "stronger" and adds: "They know how to use social networks, and if a woman is beaten in the streets then I hope there will be a phone camera and the world will know." But for women activists, "day by day it becomes more difficult. How many women really make their voices heard? I can count them on my fingers. There are 18 committees in our parliament, and I'm the only woman chair.

"When we talk about rights, about the taboos we face, they undermine you. Then they will use all the techniques including commenting – men will comment on your clothes, the way you talk and look, to bring you down.

Dr Qumar Frahmand, 40, is the head of a busy public clinic for women and children in Balkh Province. She sees 35 to 40 patients a day. "The situation has been getting better all the time because of the international NGOs coming in, and access to family planning, and vaccination for children has improved. But we still have a big problem with malnutrition because of poverty and ignorance.

"In the past 10 years, women have started to come out of their houses and see that having fewer children could mean a better life. Before, if a woman didn't have a boy she would keep having babies until she did.

"But will it all slip back? There is so much uncertainty, insecurity and rising unemployment, and the big thing I'm seeing is a rise in domestic violence. Last week a woman who was five months pregnant came here very seriously beaten and the foetus died. She went back to this husband because she has no other opportunity.

"We worry where we will find the money to keep the clinic going when the troops leave, and I cannot think what will happen if these clinic doors have to close. It's too terrible to think about. The security situation is worse for women in the rural areas and if they cannot come here I'm terrified to think how their lives will be."

A large desk puts space between Zarghona Walizada and her visitors. Beneath her chair are two large stones, her second line of defence. "I keep them close to my hands," she says. Her office in a suburb of Kabul – where she runs her own freight firm – is no longer a safe place.

"They came in cars with windows blacked out," she says. "My assistant tried to lock the doors, but these men with scarves around their faces came up the stairs with guns and broke down the door. I sat here behind my desk and stayed calm. I offered them tea, but I had my stones ready.

"They threatened me and demanded why I was not at home. For a long time we argued. They said it was not right for a woman to run a company. I thought they might shoot me, but finally they left. They'll be back."

On the wall is a newspaper cutting, a report of a speech by a UN official citing Walizada as an example of how women are forging ahead in Afghanistan. But Walizada is not the rule – she is the exception. "Women are encouraged by the US and the UN and the UK to make handicrafts, not to make business. The US army has contracts but gives them only to the corrupt politicians."

A widow, she trusts no one but "my driver, my brother and my sister. That is all. I can't worry about what people think. In Afghanistan two people accept me and 20 don't. People say bad things. Even the young boys make threats and throw stones."

She fears troop withdrawal in 2014 will kill the firm she has built. Her truck drivers face increasing threats from bandits, and three have been murdered in as many years. Fuel prices are rising, and those firms with US and UN contracts, which will dry up after the withdrawal, will come looking for the smaller freight contracts, like those she holds. "But I have my son studying in Paris, and at least I have done that – educated my son."

Medical student Maryam Farid, 20, lost her voice after being caught up in a bomb blast aged six and still has a speech impediment. Her father, a university professor, is liberal in allowing his seven daughters to be educated – their mother ran an underground girls' school in their tiny flat during the Taliban rule – but he has chosen her future specialisation, gynaecology, so she will only work among females.

"Is it what I want to do?" asks Farid. "Maybe not. But there is no choice, and I have accepted that." Farid studies hard and looks tired. She shares a laptop with her sisters, but internet access is prohibitively expensive for most young Afghans and the computer is mostly used to play educational CDs.

"The boys my age are the worst – they think we should not be studying," she says. "They say: what is the point, because after 2014 we will have to go back into the home again. They say it is against Islam. I know it is not. I love Islam. I am proud of my religion.

"All the girls are worried – we all think about this issue all the time, that after 2014 there will be no girl students and the women who worked to help other women in society will be killed.

"When I go to classes, only half of my energy is spent on my studies because the other 50% is spent in dealing with harassment from the male students. The teachers do not interfere because they do not want to get involved. You cannot complain to the principal because they say there are not these problems at our university, and I often want to leave. I am so tired of it."

Farid's mother, Shahla, is a former judge and teaches in the faculty of law and political science at Kabul University. She has acted as an advocate for battered women and is writing a book about women's rights in Afghanistan. A fifth of her students are female. She was the first woman from her region, Faryab Province, to study law.

"At that time there were more girls studying than now," she tells me.

"Myself, I am afraid for 2014. I have seven daughters – two are married, five are studying. I fear my youngest two will not get the chance to go to university even though both are best in their class. The youngest, Mahaba, doesn't understand, but my 13-year-old feels hopeless about the situation."

She says that when the foreigners go, Afghan men will fight again. "Our government doesn't think about women. If I had known this would happen I would have taken another path and not have been an activist. So I'm angry. I am afraid for my daughters, who might be kidnapped or punished for the advocacy work I have done.

"Women have started to reduce our activities, because the closer we get to 2014 the laws made to support women are losing their strength. My students who can leave are doing so.

"I've a daughter who begs us every day to leave, but my husband will not. He says we must all love our country."

Raihana Karimi is an engineer, like her husband. "But in this country it is shameful for a man to know a colleague's wife's name, so he could not have me working with him. He is happy now that I work among women."

In 2008 she joined a programme that trained women as paralegals. Now she runs a safe house for women, directly funded by the US embassy in Mazar-i-Sharif. "It's usually girls escaping forced marriage or violence – if they run away they can be arrested and go straight to jail. The effects of war are plain, and women bear the brunt. I talk to families to see if anything can be done to help solve the problems and their girl can return. But often they are very angry – they want to find and burn down the safe house."

Karimi says she now faces "a lot of threats. I know I will not only lose my job but will be the first target after the international community pulls out in 2014. The safe house will close, and although some NGOs say they will stay, everyone is working separately – there is no one aim. Our government is weak.

"I burned my burqa when the Taliban left; I don't want a new one. I beg the US and the UK, do not leave us. Please stay. We are very vulnerable, we are very afraid."

A 28-year-old teacher in a boys' high school in Mazar-i-Sharif, Shekiba Azizi also has three children of her own. She feels that uncertainty is allowing a creeping conservatism to dominate women's lives once again in Afghanistan. "Most of the other teachers now wear a burqa. But I hate it. I cannot see out and it's very claustrophobic. To walk to the bus stop I have to pass some warlords' houses, and they have armed guards who shout at me and harass me, so now I have to take a taxi to work, which is expensive. I even have to carry a burqa in my handbag now – just in case," she says, showing me the blue swathe of nylon fabric in her bag.

"The international community has spent a lot of money in Afghanistan, they say, but I have seen no effect on poor people. Now that they are going, we have the right to know our own future. They have to be clear about what is going to happen to us – they owe us that."

Dr Monisa Sherzada Hassan, 53, answers the communal door to her small apartment block in Kabul. Two small boys in the street stop and gape. Her head is covered but her heels are high and her make-up liberal. "I am a woman, and in my own home I will allow myself to be a woman even if outside I am not allowed," she says, leading the way to her modest living room, where every surface is heavy with welcoming platters of nuts and dried fruits. She escaped the Taliban in 1994, fleeing over the mountains by donkey with her toddler daughter. Her son and daughter are studying medicine in Germany. Hassan returned in 2001, and sits on a government committee set up on the insistence of the Nato coalition to look at peace and reconciliation.

"There are 70 members, and nine are women. The women have just a symbolic presence. By voting they get nothing – committees only have functions to hear, not be heard. For women it's not that they are not tough or capable, but that their position is not equal. I see progress if a man says: 'Hello, how are you?' Otherwise they see a woman and they look over her head.

"The younger women are the most broken and depressed. We try to show them we are with them, but they see no future. They are dependent financially on their families.

"If the US and UK wanted, they could eliminate the Taliban in two days. They brought them and they can get rid of them. Now they are trying to leave Afghanistan isolated.

"I don't understand why the foreign forces would leave now, because they just ensure that the next Afghan crisis will be bigger. Our young people have never lived without bloodshed, and the hunger of youth is a great weapon for fundamentalists.

"When the conservatives come back they will shoot all these women who have been fighting for justice. Any fundamentalist knows the addresses of those who speak out for women's rights. The international community should support and protect these women, but they just think about their own departure. These women think about what will happen when the doors of these embassies are closed in their faces and when nobody at all will think about them.

"I am lucky in that I've got a German passport and can leave when I want, but I would beg the British and the American politicians who promised so much: please make one page in Afghanistan's history a lighter one. Before it's too late."

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Hulk Hogan sues spine surgery clinic in Florida

Clearwater, Feb 3: Wrestler Hulk Hogan has filed a lawsuit against the Tampa-based Laser Spine Institute, saying the clinic did unnecessary surgeries that damaged his career.

The Tampa Bay Times reports that Hogan filed the lawsuit. He filed under his real name, which is Terry Bollea. It seeks damages of $50 million.

In addition to claiming unnecessary surgeries, the lawsuit also says the Laser Spine Institute used an endorsement from Hogan without permission or payment.

The Laser Spine Institute says it is aware of the lawsuit, but to protect patient privacy, it does not want to discuss details of the case.

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Why is it so cold in the Southwest?

New York, Feb 3 : Known for hot temperatures, Southern California and the rest of the Southwest United States are undergoing a cold snap that has set records in many areas throughout the region.

Los Angeles set a record daily low of 34 degrees Fahrenheit (1 degree Celsius) this morning (Jan. 14), the coldest it's been in 22 years, according to the National Weather Service. Water pipes also froze and busted in Las Vegas, where the mercury dropped to nearly 17 F (minus 8 C), according to news reports.

So what's bringing all this chilly air to the area?

The low temperatures are due to an extremely cold, dry mass of air originating off the Arctic sea ice in the Canadian Arctic, said Jeff Weber, a scientist with the University Corporation for Atmospheric Research in Boulder, Colo. This mass of air has been pushed southward by a warmer, high-pressure system that moved north and east toward Alaska from the Pacific, Weber told OurAmazingPlanet. This helps explain why it's unseasonably warm in Alaska, while Angelinos are searching for sweaters.
This flip-flopping of hot and cold is caused by a buckling of the jet stream, the current of air that normally ferries air in a relatively straight line from west to east across the United States and out into the Atlantic Ocean. However, due to higher-than-usual temperatures near Greenland, the stream is backed up. This heat and associated high pressure have slowed down the North Atlantic Oscillation, a climate pattern that pulls weather patterns eastward across the country.

This "buckling" has caused the jet stream to zigzag wildly, sending warm air from Hawaii to Alaska, and cold air from the Arctic all the way to northern Mexico, Weber said. While this isn't unheard of, the extent of the jet stream's "trough" is unusually deep, or far to the south, he said. This only happens about once every five to 10 years, he said.

Furthermore, there has been a localized low-pressure system on the California coast, which has allowed this cold, dry air to move from the Rocky Mountains toward the Pacific, said Stuart Seto, a weather specialist with the National Weather Service in Oxnard, Calif. This cold, dry air has displaced the moist air that usually blows onshore off the Pacific, giving Southern California and Los Angeles its famously balmy temperatures year-round.

This movement of air is similar to the phenomenon that causes the Santa Ana winds, which can blow out of the northeast into California at speeds of 40 mph (64 kph). The difference here is that this air is much colder and drier than the Santa Anas, and isn't producing winds nearly that fast, Weber said.

The dryness of the air is one important reason for the extreme cold; moist air can hold heat much more easily, Weber said. That explains why the desert is known for rapid temperature swings — hot days and cold nights — while coastal areas are noted for their moderate climates, with day and nighttime temperatures closer together, he said.

The cold air in the Southwest has been relatively stationary over the past few days. But the trough, with its cold temperatures, is gradually moving eastward, and record lows should be seen in the next two to five days in the Midwest, Weber said. Within a week, the frigid air should reach the Northeast, he said.

"It's been kind of a stagnant pattern, but we're going to share our cold air with the Midwest, and we're going to warm up," he said. By mid-week, temperatures are expected to return to seasonal averages for much of California and the Southwest, he added. "It's about time —and I 'm a guy who likes the cold," Weber said. Temperatures in Boulder have climbed above freezing only once since Dec. 24.

The pattern over Greenland that is causing the slowdown in the North Atlantic Oscillation also caused a similar blockage this past summer, leading to stagnant masses of hot air over the central United States, helping to cause the extreme heat that suffocated much of the nation during the season. It was also blocked during Hurricane Sandy, which helped steer the storm coastward, Weber said. In other words, the extreme cold is actually related to the same phenomenon that leads to extreme heat, and doesn't disprove global warming.

A buckled jet stream, and cold weather in the Southwest, happens just about every winter, although not usually to this extent, Weber said. However, more "extreme blocking," along with unusual heat waves and cold snaps, are more likely to be seen as a result of climate change, he said.

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NY poised to be 1st to pass post-massacre gun bill

Albany, Feb 3 : Days after calling for an overhaul of gun control in New York following the Connecticut school shooting, Gov. Andrew Cuomo worked out a tough proposal on gun control with legislative leaders who promised to pass the most restrictive gun law in the nation.

The measure passed the Senate 43-18 on the strength of support from Democrats, many of whom previously sponsored the bills that were once blocked by Republicans.

The Democrat-led Assembly gaveled out before midnight and planned to take the issue up. It is expected to pass easily.

"This is a scourge on society," Cuomo said, one month after the Newtown, Conn., shooting that took the lives of 20 first graders and six educators. "At what point do you say, 'No more innocent loss of life.'"

"It is well-balanced, it protects the Second Amendment," said Senate Republican leader Dean Skelos of Long Island. "And there is no confiscation of weapons, which was at one time being considered.

"This is going to go after those who are bringing illegal guns into the state, who are slaughtering people in New York City," Skelos said. "This is going to put people in jail and keep people in jail who shouldn't be out on the street in the first place."

"This will be the toughest gun control package in the nation," said Sen. Jeffrey Klein, leader of the Independent Democrat Conference that shares majority control with Republican senators. "All in all, it is a comprehensive, balanced approach that will save lives," Klein said in an interview.

Cuomo said he wanted quick action to avoid a run on assault rifles and ammunition as he tries to address what he estimates is about 1 million assault rifles in New York state. He made it a centerpiece of his progressive agenda in last week's State of the State address.

Republican Sen. Greg Ball called that political opportunism in a rare criticism of the popular and powerful governor seen by his supporters as a possible candidate for president in 2016.

"We haven't saved any lives tonight, except one: the political life of a governor who wants to be president," said Ball who represents part of the Hudson Valley. "We have taken an entire category of firearms that are currently legal that are in the homes of law-abiding, tax paying citizens. ... We are now turning those law-abiding citizens into criminals."

The governor confirmed the proposal, previously worked out in closed session, called for a tougher assault weapons ban and restrictions on ammunition and the sale of guns, as well as a mandatory police registry of assault weapons, grandfathering in assault weapons already in private hands.

It would create a more powerful tool to require the reporting of mentally ill people who say they intend to use a gun illegally and would address the unsafe storage of guns, the governor confirmed.

Under current state law, assault weapons are defined by having two "military rifle" features spelled out in the law. The proposal would reduce that to one feature and include the popular pistol grip.

Private sales of assault weapons to someone other than an immediate family would be subject to a background check through a dealer. Also Internet sales of assault weapons would be banned, and failing to safely store a weapon could be subject to a misdemeanor charge.

Ammunition magazines would be restricted to seven bullets, from the current 10, and current owners of higher-capacity magazines would have a year to sell them out of state. An owner caught at home with eight or more bullets in a magazine could face a misdemeanor charge.

In another provision, a therapist who believes a mental health patient made a credible threat to use a gun illegally would be required to report the incident to a mental health director who would have to report serious threats to the state Department of Criminal Justice Services. A patient's gun could be taken from him or her.

The legislation also increases sentences for gun crimes including the shooting of a first responder that Cuomo called the "Webster provision." Last month in the western New York town of Webster, two firefighters were killed after responding to a fire set by the shooter, who eventually killed himself.

Legislators wouldn't comment on the tentative deal or the provisions discussed in closed-door conferences.

"It's a tough vote," said Senate Deputy Majority Leader Thomas Libous of Broome County. "This is a very difficult issue depending on where you live in the state. I have had thousands of emails and calls ... and I have to respect their wishes." He said many of constituents worry the bill will conflict with the Second Amendment's right to bear arms while others anguish over shootings like at Newtown, Conn., and Columbine, Colo.

A vote would come exactly one month after a gunman killed 20 children and six educators inside Sandy Hook Elementary School in Newtown.

The closed-door meetings prompted about a dozen gun workers to travel more than two hours to Albany to protest the legislation they say could cost 300 to 700 jobs in the economically hard-hit Mohawk Valley.

"I have three small kids myself," said Jamie Rudall, a unionized worker who polishes shotgun receivers. "So I know what it means, the tragedy ... we need to look at ways to prevent that, rather than eliminate the rights of law-abiding citizens."

In the gun debate, one concern for New York is its major gun manufacturer upstate.

Remington Arms Co. makes the Bushmaster semi-automatic rifle that was used in the Connecticut shootings and again on Christmas Eve when the two firefighters were slain in Webster. The two-century-old Remington factory in Ilion in central New York employs 1,000 workers in a Republican Senate district.

Assemblyman Marc Butler, a Republican who represents the area, decried the closed-door meetings by Senate Republicans and the Democratic majority of the Assembly as "politics at its worst."

The bill would be the first test of the new coalition in control of the Senate, which has long been run by Republicans opposed to gun control measures. The chamber is now in the hands of Republicans and five breakaway Democrats led by Klein, an arrangement expected to result in more progressive legislation.

Former Republican Sen. Michael Balboni said that for legislators from the more conservative upstate region of New York, gun control "has the intensity of the gay marriage issue." In 2011, three of four Republicans who crossed the aisle to vote for same-sex marriage ended up losing their jobs because of their votes.

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Reid denies involvement in Utah businessman scheme

Salt Lake City, Feb 3 : Senate Majority Leader Harry Reid's office said he was never involved in a deal to have a Utah businessman pay the senator to make a federal investigation disappear.

St. George businessman Jeremy Johnson, who's accused of running a $350 million software scheme, said a top official in the Utah attorney general's office orchestrated an agreement in 2010 to pay $600,000 to someone connected to Reid.

Johnson told The Salt Lake Tribune over the weekend that he believed Reid would intervene in the Federal Trade Commission's investigation into his business.

A spokeswoman for Reid's office, Kristen Orthman, said that the Nevada Democrat "had no knowledge or involvement" in Johnson's case and said the allegations "are nothing more than innuendo and simply not true."

Federal prosecutors allege that Johnson's company sent software to consumers for a supposedly risk-free trial but billed them anyway.

Johnson was arrested at a Phoenix airport in 2011, carrying more than $26,000 in cash and a one-way plane ticket to Costa Rica.

Prosecutors initially charged him with one count of mail fraud. He was set to enter a guilty plea to two additional charges of bank fraud and money laundering as part of an agreement with the government.

But that deal fell apart after Johnson and prosecutors disagreed over the terms. Johnson instead decided to maintain his not guilty plea and the case is set to go to trial.

The Tribune reported that Johnson provided the newspaper with emails, financial statements, photos and a transcript of a recorded meeting with John Swallow, then the state's chief deputy attorney general.

Only one email from Johnson was available on the newspaper's website.

Swallow was elected as Utah Attorney General in November and was sworn into office last week. He has strongly denied the allegations and maintains he only offered to connect Johnson with a lobbying firm.

After the FTC filed a lawsuit against Johnson and nine business associates in December 2010, Johnson said he asked Swallow to return part of the $250,000 he had paid. Johnson said he doesn't know if anyone connected to Reid received it.

Swallow, a Republican, said he told Johnson he would not interfere with the FTC investigation or advocate for Johnson to the U.S. attorney.

"Any suggestion by Mr. Johnson that I have been involved in illegal or inappropriate activity regarding his FTC case or any other matter is false and defamatory," he said.

Swallow said he connected Johnson to someone who could hire lobbyists but did not participate in any agreement or receive any payment. He said Johnson is trying to divert attention from his own problems.

Utah Democrats have called for an independent investigation to look into the allegations against Swallow.

Swallow's office declined to answer questions and said they would be issuing a statement. Messages left with Reid's office for further comment weren't immediately returned.

Swallow's office released a letter asking the U.S. Attorney's Office in Salt Lake City to investigate Johnson's claims.

Swallow said he's confident an investigation will clear his name.

"These lies he's told have been fabricated for some end I cannot imagine. That's what I hope this investigation will show. I'm looking forward to clear my name and show people that this didn't happen," Swallow said.

The U.S. Attorney's Office in Salt Lake City has declined comment on whether there is an investigation into the alleged deal.

Before his arrest, Johnson donated generously to charities and to the political campaigns of former Utah Attorney General Mark Shurtleff. He gave $2,400 to Reid's re-election campaign in July 2010, according to Federal Election Commission records.

Johnson also used his personal helicopters to aid search and rescue efforts in southern Utah and made international headlines in January 2010 when he purchased a plane to fly doctors and other critical supplies to Haiti following a devastating earthquake.

Johnson, 37, could face decades in prison if he's convicted. He is currently free on a $2.8 million bond.

Prosecutors said they plan to file a new indictment in the case within a month, but wouldn't comment on whether other people besides Johnson would be charged.

A spokeswoman for Johnson's attorneys released a statement saying Swallow's claims that he was uninvolved and had no knowledge of the agreement are false.

"Johnson stands by his comments, as told to the Salt Lake Tribune, and continues to believe that his understanding of the agreement to be accurate," the statement said.

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Can we trust CNET again after a scandal this shady?

London, Feb 3 : CNET, one of the Internet's first and most influential authorities on gadgets and tech news, watched its editorial integrity spiral out of control, with staffers quitting and editors left to explain themselves in the wake of explosive new charges over its annual Consumer Electronics Show awards — a scandal, it would appear, that goes all the way to the top of its corporate umbrella, and could shake the entire ecosystem of online tech journalism.

Contrary to an already controversial move first reported, CNET parent company CBS didn't just asked the site to remove Dish's Slingbox Hopper from consideration for its Best of CES Awards amidst a lawsuit between CBS and Dish; the removal came after executives learned the gadget would take the top award, and that request came down from CBS CEO Leslie Moonves himself, sources tell The Verge's Joshua Topolsky. Now, CNET's corporate responsibilities appear to have made the long trusted site bend at will and, despite desperate pushback from some of its writers and editors, it appears CNET may have moved to cover up the series of events that led to the removal of the award.

For CNET, all of this looks very bad. How can readers trust the site for its famously unbiased reviews and industry news coverage if a media-conglomerate overlord is insisting that some things just "can't exist"? The events that have unfolded since the scandal broke wide open haven't exactly restored anyone's faith. Greg Sandoval, a seven-year veteran of the site, announced his resignation on Twitter, citing a lack of "editorial independence" from CBS as his motivation. In a separate tweet, he called CNET's dishonesty about its parent company's involvement with Dish "unacceptable." Since, both CNET and CBS have released not-too-convincing statements.

Following the Verge report and Sandoval's resignation, CNET Editor in Chief Lindsay Turrentine explained how CNET editors did everything in their power to fend off corporate insistence on its editorial decisions, but found the power of a pending deal between two bigger media companies too intimidating. So the editors gave in, and waited. "We were in an impossible situation as journalists," Turrentine wrote, adding that she thought about resigning. "I decided that the best thing for my team was to get through the day as best we could and to fight the fight from the other side." 

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Your cough will last longer than you think, study finds

London, Feb 3 : One week living with a hacking cough seems like forever, but experts say you'll likely have to wait even longer for it to clear up.

According to a new study, the average cough — commonly the result of a cold or other respiratory illness — lasts nearly 18 days.

However, the study also reported that people expect their cough to go away much sooner than 18 days. People surveyed as part of a poll for the study said they expected their cough to last about six to nine days.

This mismatch between expectations and reality may mean that people seek medical care for a cough sooner than they should, and receive unnecessary treatment, the researchers said.

If patients expect  a cough to last about six or seven days, it makes sense that they would seek care earlier than needed, the researchers wrote in the January/February issue of the journal Annals of Family Medicine.

About 50 percent of people who seek medical treatment  for an acute cough will be given antibiotics, even though most of these illnesses are caused by a virus, which does not respond to the drugs.

Providing patients with information about exactly how long their cough should last may reduce the unnecessary use of antibiotics, the researchers noted.

"We need to educate patients that an acute [cough] in an otherwise healthy adult is usually viral, does not require antibiotics, and may easily last a couple of weeks," said study researcher Dr. Mark Ebell, of the University of Georgia Health Science Campus in Athens.

Patients don't need to go to the doctor simply because their cough has lasted a week or more, Ebell said. Reasons to seek care earlier than a few weeks include: having chronic lung disease or another serious chronic illness; shortness of breath or significant wheezing; coughing up blood or rusty sputum; or a sudden worsening of symptoms, Ebell said.

The researchers reviewed information from 19 previous studies, conducted between 1976 and 2010, which examined cough duration in adults. Those with a serious chronic respiratory illness, or those whose coughing was caused by pneumonia, tuberculosis, asthma, allergies or sinusitis, were excluded from the studies.

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Chinese companies retreat from U.S. listings as scrutiny mounts

New York, Feb 3 : Chinese companies are deserting U.S. stock markets in record numbers as regulatory scrutiny mounts and the advantages of a U.S. listing slip away.

U.S. government investigations of suspect financial reports and battered share prices have for many Chinese companies wrecked the chances of raising new money in the United States and given them little reason so stay, China experts said.

"There's very little in way of new capital flows to those companies, their valuations are low and they're encountering significant headwinds in terms of regulatory oversight," said James Feltman, a senior managing director at Mesirow Financial Consulting.

Twenty-seven China-based companies with U.S. listings announced plans to go private through buy-outs in 2012, up from 16 in 2011 and just six in 2010, according to investment bank Roth Capital Partners. Before 2010, only one to two privatizations a year were typically done by China-based companies, Roth said.

In addition, about 50 mostly small Chinese companies "went dark," or deregistered with the U.S. Securities and Exchange Commission, ending their requirements for public disclosures. That was up from about 40 in 2011 and the most since at least 1994, when the SEC's records start.

Companies with a limited number of shareholders can voluntarily go dark and rid themselves of the cost of public filings without buying out investors, but those investors often suffer as the value of their shares falls.

"It's just another black eye for (Chinese) U.S.-listed companies," said James O'Neill, managing director of Jin Niu Investment Management Co, a Beijing-based firm.

Meanwhile, just three Chinese companies successfully went public on U.S. exchanges in 2012, down from 12 in 2011 and 41 in 2010.

About 300 China-based companies still have shares trading in the United States on exchanges or "over-the-counter" between individual dealers.

Bankers are aggressively pitching the idea of companies pulling out of the United States and relisting elsewhere, saying they can get a better share price in Hong Kong or mainland China, according to lawyers who work on going-private deals.

"The idea is that the markets here understand the China story better and will therefore hopefully assign a higher valuation to the stocks," said Mark Lehmkuhler, a partner at Davis Polk in Hong Kong.

U.S.-listed Chinese companies in the consumer staples sector, for example, were trading recently at a 67 percent discount to comparable Chinese companies on the Hong Kong Exchange, according to investment bank Morgan Joseph.

A failure by U.S. regulators to reach an agreement soon with China on accounting oversight may push more Chinese companies to abandon their U.S. listings, bankers and lawyers said.

The United States has been trying to get access to audit records and permission to inspect Chinese audit firms to combat a rash of accounting scandals. China has balked, leaving the future of U.S. listings for Chinese companies in doubt.

"I expect everyone is making alternative arrangements" in case U.S. and Chinese regulators do not reach a deal, said Paul Gillis, an accounting professor at Peking University in Beijing.

Stepping up pressure, the SEC has deregistered about 50 China-based companies over the past two years. Last month, it charged the Chinese arms of five top accounting firms with securities violations for failing to turn over documents, raising tensions in its standoff with China.

While most of the recent going-private transactions have been management-led buy-outs, cheap share prices have also led to several deals from large private equity firms.

A Carlyle Group LP-led consortium (CG.O) last month agreed to buy display advertising company Focus Media Holding Ltd (FMCN) for about $3.7 billion in the largest-ever private equity deal in China. The success of that deal may prompt others, lawyers said.

"As long as you've got financing available, you're likely to continue to see new deals being announced," said Jesse Sheley, a partner at Kirkland & Ellis who worked on the Focus Media deal.

Despite the billions being poured into the private markets, it may take longer for U.S. stock investors to feel comfortable investing in Chinese public companies again.

Investors are saying, "'What can I trust about these companies at all?'" said O'Neill at Jin Niu. "It's not a matter of good company versus bad company. The market has just turned against you."

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