Soldier who lost 4 limbs has double-arm transplant


The first soldier to survive after losing all four limbs in the Iraq war has received a double-arm transplant.


Brendan Marrocco had the operation on Dec. 18 at Johns Hopkins Hospital in Baltimore, his father said Monday. The 26-year-old Marrocco, who is from New York City, was injured by a roadside bomb in 2009.


He also received bone marrow from the same dead donor who supplied his new arms. That novel approach is aimed at helping his body accept the new limbs with minimal medication to prevent rejection.


The military is sponsoring operations like these to help wounded troops. About 300 have lost arms or hands in the wars.


"He was the first quad amputee to survive" from the wars in Iraq and Afghanistan, and there have been four others since then, said Brendan Marrocco's father, Alex Marrocco. "He was really excited to get new arms."


The Marroccos want to thank the donor's family for "making a selfless decision ... making a difference in Brendan's life," the father said.


Surgeons plan to discuss the transplant at a news conference with the patient on Tuesday.


The 13-hour operation was led by Dr. W.P. Andrew Lee, plastic surgery chief at Johns Hopkins, and is the seventh double-hand or double-arm transplant done in the United States. Lee led three of those earlier operations when he previously worked at the University of Pittsburgh, including the only above-elbow transplant that had been done at the time, in 2010.


Marrocco's "was the most complicated one" so far, Lee said in an interview Monday. It will take more than a year to know how fully Marrocco will be able to use the new arms, Lee said.


"The maximum speed is an inch a month for nerve regeneration," he explained. "We're easily looking at a couple years" until the full extent of recovery is known.


While at Pittsburgh, Lee pioneered the novel immune suppression approach used for Marrocco. The surgeon led hand transplant operations on five patients, giving them marrow from their donors in addition to the new limbs. All five recipients have done well and four have been able to take just one anti-rejection drug instead of combination treatments most transplant patients receive.


Minimizing anti-rejection drugs is important because they have side effects and raise the risk of cancer over the long term. Those risks have limited the willingness of surgeons and patients to do more hand, arm and even face transplants. Unlike a life-saving heart or liver transplant, limb transplants are aimed at improving quality of life, not extending it.


Quality of life is a key concern for people missing arms and hands — prosthetics for those limbs are not as advanced as those for feet and legs.


Lee has received funding for his work from AFIRM, the Armed Forces Institute of Regenerative Medicine, a cooperative research network of top hospitals and universities around the country that the government formed about five years ago. With government money, he and several other plastic surgeons around the country are preparing to do more face transplants, possibly using the new minimal immune suppression approach.


Marrocco expects to spend three to four months at Hopkins, then return to a military hospital to continue physical therapy, his father said. Before the operation, he had been living with his older brother in a handicapped-accessible home on New York's Staten Island built with the help of several charities.


The home was heavily damaged by Superstorm Sandy last fall.


Despite being in a lot of pain for some time after the operation, Marrocco showed a sense of humor, his father said. He had a hoarse voice from a tube in his throat during the long surgery, decided that he sounded like Al Pacino, and started doing movie lines.


"He was making the nurses laugh," Alex Marrocco said.


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AP writer Alex Dominguez contributed to this report.


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S&P 500 slips after rally, but Apple lifts Nasdaq

NEW YORK (Reuters) - The S&P 500 edged lower on Monday as a four-week rally stalled, while a rebound in Apple shares helped buoy the Nasdaq.


Caterpillar shares helped cap losses in the Dow industrials even as the company posted a 55 percent drop in quarterly profit due to a charge connected with accounting fraud at a Chinese subsidiary and weak demand among its dealers. Caterpillar's shares, down 2.2 percent in the past three sessions, rose 1.5 percent Monday to $96.97.


The S&P 500 is coming off a streak of eight sessions of gains, the longest in eight years. On Friday, the major U.S. stock indexes closed a fourth straight week of gains with the S&P 500 ending the session above 1,500 for the first time in more than five years.


The rally has left the market vulnerable to a short-term pullback of up to 3 percent in the S&P 500 as bullish sentiment continues to rise, according to Richard Ross, Auerbach Grayson's global technical strategist.


"Still," Ross said, "we have a lot of momentum and nice seasonality, and technicals support the long-term bull market."


Data on Monday pointed to growing economic momentum as companies sensed improved consumer demand.


Thomson Reuters data showed that of the 150 companies in the S&P 500 that have reported earnings so far, 67.3 percent have beaten analysts' expectations, which is a higher proportion than over the past four quarters and above the average since 1994.


The Dow Jones industrial average <.dji> fell 9.02 points or 0.06 percent, to 13,886.96, the S&P 500 <.spx> lost 1.5 points or 0.1 percent, to 1,501.46 and the Nasdaq Composite <.ixic> added 8.46 points or 0.27 percent, to 3,158.17.


Bargain hunters lifted Apple after the tech giant's stock dropped 14.4 percent in the previous two sessions. With Apple's stock up 2.4 percent at $450.29, the iPad and iPhone maker regained the title as the largest U.S. company by market capitalization as Exxon Mobil fell 0.9 percent to $90.94 and slipped back to second place.


"I think there is more downside in Apple if you did get a broad market pullback," Auerbach Grayson's Ross said.


"I'd be patient unless you're a trader. It might not be the most attractive entry point."


U.S. durable goods orders jumped 4.6 percent in December, a pace that far outstripped expectations for a rise of 1.8 percent. Pending home sales unexpectedly dropped 4.3 percent. Analysts were looking for an increase of 0.3 percent.


Equities have also gained support from a recent agreement in Washington to extend the government's borrowing power. On Monday, Fitch Ratings said that agreement removed the near-term risk to the country's 'AAA' rating.


Hess Corp shares shot up 5.3 percent to $62.02 after the company said it would exit its refining business, freeing up to $1 billion of capital. Separately, hedge fund Elliott Associates is looking for approval to buy about $800 million more in Hess stock.


Keryx Biopharmaceuticals Inc said a late-stage trial of its experimental kidney disease drug met the main study goal, and its shares soared 67 percent to $5.75.


(The story fixes extraneous guides at bottom)


(Editing by Jan Paschal and Nick Zieminski)



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The Lede Blog: Images of New Clashes in Egypt, Two Years After the Revolution's 'Day of Rage'

Last Updated, 2:47 p.m. This post has been updated throughout the day with reports from bloggers and journalists in Egypt, where protests and clashes continued in major cities despite an attempt to impose emergency rule.

As my colleague David Kirkpatrick reports from Egypt, there were protests in the Suez Canal city of Port Said and fresh clashes in Cairo on Monday.

Video uploaded to YouTube on Sunday showed officers firing at protesters in Port Said, killing four, including a man in a wheelchair, according to Mosireen, a collective of activist Egyptian filmmakers.

Video said to show Egyptian police officers firing at protesters in the Suez Canal city of Port Said on Sunday.

As clashes continued in Port Said on Monday, despite a declaration of martial law, journalists and bloggers there uploaded video of angry chants against the government at funerals for protesters and reports of escalating mayhem.

Video said to show the funeral of protesters killed in Port Said, Egypt on Monday.

In Cairo, police fired tear gas on Sunday and Monday at protesters at the foot of the Kasr el-Nile bridge near Tahrir Square, which was the scene of an epic battle during the uprising against former President Hosni Mubarak exactly two years ago, on what was known as the revolution’s “Day of Rage.”

The activist blogger Omar Kamel shared dramatic photographs and video of the clashes by the bridge on Sunday, showing clouds of tear gas in front of the luxury hotels along the Nile Corniche illuminated by the protesters’ fireworks and lasers.

Video of clashes along the Nile Corniche in Cairo on Sunday night, posted online by Omar Kamel, an activist filmmaker.

The Egyptian newspaper El Watan uploaded video of clashes in the same area on Monday.

Video on clashes in Cairo on Monday, from hte Egyptian news site El Watan.

The Cairene blogger who writes as Kikhote uploaded video shot from above Tahrir Square on Monday that zoomed in to the foot of the Kasr el-Nil bridge, showing the location of the bridge and what looked like hundreds of protesters gathered there.

Video shot from above Tahrir Square on Monday showed the location of clashes at Kasr el-Nil bridge nearby.

Kikhote also drew attention to the activist blogger Rasha Azab’s photograph of a cloud of tear gas in the air above the heads of protesters near the foot of the bridge on Monday, in front of the distinctive salmon-colored facade of the Cairo Semiramis hotel.

Tarek Shalaby, another activist blogger, reported on Twitter that a couple of hundred protesters remained on the bridge, with dozens of officers from the Central Security Forces on the Corniche nearby, at about 2 p.m. on Monday afternoon.

A short time later, my colleague Kareem Fahim reported from the bridge that tear gas was being fired at protesters on the Cornche.

At abut 5 p.m. local time, Jonathan Rashad, a photographer, reported on Twitter that the officers had pushed protesters back from the Cornche on to the bridge and into Tahrir Square.

About two hours later, the Egyptian journalists Mohamed Abdelfattah and Simon Hanna reported from the Corniche that a protest march coming from the other direction had broken through the police lines just down the street from the Semiramis, and, after some fighting, the protesters captured a senior officer outside another luxury hotel, the Kempinski.

Witnesses also said that the protesters then took control of one police armored personnel carrier, driving it to Tahrir Square, and set fire to another.

At about 8 p.m. local time the A.P.C. that was driven into Tahrir Square by protesters was also on fire, as video posted online by the blogger Kikhote showed.

Video of an armored personnel carrier ablaze in Tahrir Square on Monday night.

As the 9 p.m. curfew imposed on Port Said approached, Rawya Rageh, a correspondent for Al Jazeera English, reported from the city that thousands of protesters had taken to the streets to defy the order — including the local soccer club’s most hardcore fans, the ultras, who were blamed for a deadly riot last year.

A blogger named Sameh Abd El-Khalek uploaded photographs to Twitter of what he said was the protest march on Monday night.

As the Egyptian blogger who writes as The Big Pharaoh noted, live television images also showed thousands of protesters breaking the 9 p.m. curfew in the city of Suez.

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Crucial, long-overdue BlackBerry makeover arrives






TORONTO (AP) — The maker of the BlackBerry smartphone is promising a speedy browser, a superb typing experience and the ability to keep work and personal identities separate on the same phone, the fruit of a crucial, long-overdue makeover for the Canadian company.


Thorsten Heins, chief executive of Research In Motion Ltd., will reveal the first phone with the new BlackBerry 10 system in New York on Wednesday. Repeated delays have left the once-pioneering BlackBerry an afterthought in the shadow of Apple’s trend-setting iPhone and Google’s Android-driven devices.






Now, there’s some optimism. Previews of the software have gotten favorable reviews on blogs. Financial analysts are starting to see some slight room for a comeback. RIM‘s stock has nearly tripled to about $ 16.30 from a nine-year low in September, though it’s still nearly 90 percent below its 2008 peak of $ 147.


Most analysts consider a BlackBerry 10 success to be crucial for the company’s long-term viability.


“The old models are becoming obsolete quickly,” BGC Financial analyst Colin Gillis said. “There is still a big user base but it’s going to rotate off. The question is: Where do they rotate to?”


The BlackBerry, pioneered in 1999, has been the dominant smartphone for on-the-go business people. Corporate information-technology managers like the phones because they’re relatively secure and easy to manage.


The BlackBerry has also crossed over to consumers. President Barack Obama couldn’t bear to part with it when he took office. Oprah Winfrey declared it one of her “favorite things.” People got so addicted that the device was nicknamed “the CrackBerry.”


But when the iPhone came out in 2007, it showed that phones can do much more than email and phone calls. They can play games, music and movies. Android came along to offer even more choices. Though IT managers still love BlackBerrys, employees were bringing their own devices to the workplace — a trend Heins acknowledged RIM was slow to adapt to.


Suddenly, the BlackBerry looked ancient.


Even as BlackBerry sales continued to grow in many parts of the world, many BlackBerry users in North America switched to iPhones and Android devices. BlackBerry’s worldwide subscriber based peaked at 80 million in the quarter that ended Sept. 1, before dropping to 79 million in the most-recent quarter. In the U.S., according to research firm IDC, shipments of BlackBerry phones plummeted from 46 percent of the market in 2008 to 2 percent in 2012.


RIM promised a new system to catch up, using technology it got through its 2010 purchase of QNX Software Systems. RIM initially said BlackBerry 10 would come by early 2012, but then the company changed that to late 2012. A few months later, that date was pushed further, to early 2013, missing the lucrative holiday season. The holdup helped wipe out more than $ 70 billion in shareholder wealth and 5,000 jobs.


Although executives have been providing a glimpse at some of BlackBerry 10′s new features for months, Heins will finally showcase a complete system at Wednesday’s event. Devices will go on sale soon after that.


RIM redesigned the system to embrace the multimedia, apps and touch-screen experience prevalent today.


“Historically there have been areas that have not been our strongest points,” Rick Costanzo, RIM’s executive vice president of global sales, said in an interview. “Not only have we caught up, but we may even be better than some of the competition now.”


Costanzo said “no one else can touch” what RIM’s new system offers.


The new operating system promises better multitasking than either the iPhone or Android. Simply swipe a finger across the phone’s display screen to switch to another program.


All emails and notifications from such applications as Twitter and Facebook go to the BlackBerry Hub, a nerve center accessible with a finger swipe even if you have another application open. One can peek into it and open an email, or return to the previous application without opening the email.


“You are not going in and out of applications; you’re flowing through applications with one simple gesture of your finger,” Costanzo said. “You can leave applications running. You can effortlessly flow between them. So that’s completely unique to us.”


That said, multitasking will be limited and won’t allow for extensive use of apps side by side, as is typically permitted on traditional computers. If you’re watching a video, it will still run while you check for email. But it will pause if you decide to open an email and resume when you are done.


The BlackBerry’s touch-screen keyboard promises to learn a user’s writing style and suggest words and phrases to complete, going beyond typo corrections offered by rivals. See the one you want, and flick it up to the message area. Costanzo said that “BlackBerry offers the best keyboard, period.”


Gus Papageorgiou, a Scotiabank financial analyst who has tried it out, agreed with that assessment and said the keyboard even learns and adjusts to your thumb placements.


The first BlackBerry 10 phone will have only a touch screen. RIM has said it will release a version with a physical keyboard soon after that. That’s an area RIM has excelled at, and it’s one reason many BlackBerry users have remained loyal despite temptations to switch.


Another distinguishing feature will be the BlackBerry Balance, which allows two personas on the same device. Businesses can keep their data secure without forcing employees to get a second device for personal use. For instance, IT managers can prevent personal apps from running inside corporate firewalls, but those managers won’t have access to personal data on the device.


With Balance, “you can just switch from work to personal mode,” Papageorgiou said. “I think that is something that will attract a lot of people.”


RIM is also claiming that the BlackBerry 10′s browser will be speedy, even faster than browsers for laptop and desktop computers. According to Papageorgiou, early, independent tests between the BlackBerry 10 and the iPhone support that claim.


Regardless of BlackBerry 10′s advances, though, the new system will face a key shortcoming: It won’t have as many apps written by outside companies and individuals as the iPhone and Android. RIM has said it plans to launch BlackBerry 10 with more than 70,000 apps, including those developed for RIM’s PlayBook tablet, first released in 2011. Even so, that’s just a tenth of what the iPhone and Android offer. Papageorgiou said the initial group will include the most popular ones such as Twitter and Facebook. But RIM will have to persuade others to make a BlackBerry version, when they are already struggling to keep up with both the iPhone and Android.


Like many analysts, Papageorgiou recently upgraded RIM’s stock, but cautions that longtime BlackBerry users will have to get used to a whole new operating system.


He said RIM can be successful if about a third of current subscribers upgrade and if the company can get 4 million new users overseas, especially in countries where the BlackBerry has remained popular. IDC said smartphone shipments grew 44 percent in 2012. If those trends continue, it will be possible for the BlackBerry to grow even if iPhone and Android users don’t switch.


“This doesn’t have to be the best smartphone on the planet to be a success for RIM,” he said. “I think the big question though is, if it fails, is it just too late? Are the other two ecosystems just so advanced that no one can catch up? That’s a big risk.”


Wireless News Headlines – Yahoo! News





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Justin Bieber: 'I'm Not in the Happiest Place' After Selena Gomez Split















01/28/2013 at 02:30 PM EST



Breaking up is hard to do – even for Justin Bieber.

After his on-again, off-again relationship with Selena Gomez, the 18-year-old pop sensation tells Billboard how he's been handling single life.

"There's so many rumors. People say I call Selena every day and she won't pick up the phone or I'm chasing her down, and these are all fake stories," he says.

He continues: "I don't go on blogs or anything like that. I hear things. People tell me if something happens on the Internet. It gets back to me, definitely."

But when asked if he's "pretty heartbroken," Bieber admits he's hasn't been having the easiest time following his split.

"I'm not in the happiest place that I've ever been. I'm trying to get through what I'm going through. Like I said, I have my really close friends to cheer me up and keep me going," he says.

Bieber – who says his song "Nothing Like Us" is about his breakup with Gomez, 20 – says he relies on his music for emotional release.

"I'm 18. I have a great team around me," he says. "I have great friends. We have a blast. They keep me occupied and keep my mind off negative things. It's funny when people are like 'You're 18. What have you really gone through?' I'm thinking, 'What do you mean? When you were 18, you don't think you went through that stuff?' When you are 18, you're going through that transition. You have a high school girlfriend, you might not. Going to college. Figuring yourself out, leaving home."

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CDC: Flu seems to level off except in the West


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


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


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


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


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


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Fed waits for job market to perk up


LONDON (Reuters) - The Federal Reserve's ultra-loose monetary policy is a root cause of the "currency wars" that some see as a looming threat to the world economy, but don't expect the U.S. central bank to signal a shift back to normal any time soon.


The Fed, whose policy-setting Federal Open Market Committee concludes a two-day meeting on Wednesday, said just last month that it expects to keep short-term interest rates exceptionally low until the U.S. unemployment rate falls to 6.5 percent, inflation permitting.


That goal is still distant. Figures on Friday are likely to show that the jobless rate was unchanged in January at 7.8 percent, while the economy created 155,000 jobs, the same as in December, according to economists polled by Reuters.


So it would be a huge surprise if the Fed were to do anything other than reaffirm last month's decision to anchor short-term interest rates in a range of zero to 0.25 percent and to keep buying $85 billion of bonds each month to hold down long-term rates.


The only question mark is whether the FOMC vote will be unanimous now that Richmond Fed President Jeffrey Lacker, who opposes the current round of bond-buying, has rotated off the panel, said Harm Bandholz, an economist with UniCredit Bank in New York.


Most economists polled by Reuters expect the Fed to keep its open-ended bond-buying program in place well into next year, even though the economic news flow and market confidence are improving markedly.


True, Wednesday's preliminary report on fourth-quarter GDP is likely to show that growth slowed to an annualized rate of 1.2 percent from 3.1 percent in the July-September period.


And the current quarter will also be soft as the expiry of a 2 percent payroll tax cut is dampening consumer spending.


But then Bandholz expects an average growth rate of 2.8 percent over the rest of the year. That would be the strongest three-quarter period of the recovery so far, he said.


"The outlook has improved a lot in the U.S. I've been on the cautious side for the last three years, but this time I'm a bit more bullish," he said.


THE FED BIDES ITS TIME


The recovery in housing would add at least half a percentage point to GDP growth in 2013, while capital spending was likely to revive now that uncertainty over budget talks in Washington had been largely allayed, Bandholz said.


"There's a lot of pent-up demand in the system. I don't think all these investments have been abandoned; they've just been postponed," he said.


At some point, investors' exuberance over the super-easy stance of the world's major central banks will give way to worries that they are about to take away the punch bowl.


Gustavo Reis, an economist with Bank of America Merrill Lynch in New York, said concerns about the costs of money-printing were likely to spread but would be offset by uncertainty over the impact on growth of fiscal tightening in the United States and Europe.


"All told, although global activity seems more robust now than at any point in 2012, we expect policymakers to continue to worry predominantly about downside risks," he said in a note.


The bank does not expect the Fed to consider halting asset purchases before 2014, while the latest episode of monetary easing announced by the Bank of Japan is likely to be ‘long-lived and significant'.


Many economists argue that bold monetary action is long overdue in Japan, whose nominal output has not grown in 20 years, saddling the government with a debt-to-GDP ratio of more than 220 percent.


But Douglas McWilliams, who heads the Centre for Economics and Business Research, a London consultancy, fears Japan's decision will lead the global economy into unpredictable currency wars.


"It's a bit like if someone's rude to you, you're rude to them back. You get tit-for-tat behavior," McWilliams said.


CURRENCY FRICTION, BUT NO WAR


Olivier Blanchard, the chief economist of the International Monetary Fund, last week called talk of currency wars overblown and said countries had to pull the right policy levers to get their economies back on track, with corresponding consequences for exchange rates.


However, McWilliams said the problem was that it was difficult to get countries to agree NOT to wage currency wars.


Tellingly, Chancellor Angela Merkel voiced German concerns last week that Japan might be deliberately seeking to cheapen the yen to give its exporters a competitive edge.


"So we may well find that there is a period of very heavy volatility before the authorities involved try and get some kind of agreement," McWilliams said.


In a relatively quiet week for economic data in the euro zone - money supply figures and confidence surveys from the European Commission are the highlights - the focus is likely to remain squarely on the euro, which has been rising briskly as traders price in the policy shifts that Blanchard had in mind.


While the Fed and the Bank of Japan are expanding their balance sheets, the European Central Bank is starting to soak up some of the emergency cash it lent to banks a year ago.


The central bank said on Friday that banks would repay early 137 billion euros of cheap borrowed money.


"I'm not sure if we have too strong a euro for the moment but certainly we would not want to see a currency war of competitive devaluations which would have a negative effect on the euro," the European Union's top monetary official, Olli Rehn, told Reuters.


(Additional reporting by Paul Taylor in Davos; editing by Jason Neely)



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The Lede Blog: Fire at a Nightclub in Southern Brazil

Victims of the fire are attended by medics.

An intense fire ripped through a nightclub crowded with university students in southern Brazil early on Sunday morning, leaving behind a scene of horror, with bodies piled in the club’s bathrooms and on the street.

At least 232 people were killed, many of them students in the agronomy and veterinary medicine programs at a local university, police officials said.

As Simon Romero reports, a flare from a band’s pyrotechnic show ignited the fire in the nightclub, called Kiss, in the southern city of Santa Maria. Rescue workers continued to haul bodies from the still-smoldering building on Sunday.

Amateur videos posted to YouTube showed scenes of chaos as medics scurried over the bodies of victims who appeared to be unconscious, checking for signs of life.

Medics rush to care for victims of the fire.

Officials and witnesses say that security guards at the club had locked some exits, sewing panic as people attempted to flee the flames and smoke.

“Only after a multitude pushed down the security guards did they see the crap they had done,” Murilo de Toledo Tiecher, 26, a medical student who survived the fire, said in comments posted on Facebook.

Shortly before the fire, a club D.J. posted a photo on Facebook from inside the crowded club with the caption “Kiss is pumping.”

A short time later, another photo that was said to be taken outside the club and widely disseminated through social media showed smoke billowing from the front entrance.

The fire quickly engulfed the building.

Firefighters and volunteers who used T-shirts to protect themselves from the smoke struggled to pull people from the burning building.

Firefighters and volunteers tried to pull people from the burning building

Photos from the scene showed frantic friends and family members gathered outside the club and a hospital.

As Mr. Romero reports, witnesses said the fire started about 2 a.m. after the band, Gurizada Fangangueira, took the stage. At least one member of the five-person band, which is based in Santa Maria and advertised its use of pyrotechnics, was said to have been killed in the fire.

Overcrowding and a disregard for fire safety codes have led to deadly blazes at nightclubs in the past, though Sunday’s tragedy in Brazil is among the worst.

In 2003 in Rhode Island, a also fire set off by a pyrotechnic display at a club killed about 100 people. A fire that erupted under similar circumstances in Russia left almost as many dead in 2009.

And in Luoyang, China in 2000, 309 people were killed in a fire that broke out at a dance hall, forcing some to leap from high-rise windows.


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Smartphone pioneer RIM looks to put recent hardships behind it with BB10






TORONTO, Cananda – Once a leader but now derided as a laggard, BlackBerry-maker Research In Motion hopes to regain the confidence of cynical smartphone users this week as the curtain is lifted on its much-anticipated new smartphones.


The stakes are high for the unveiling, which many observers say will determine whether RIM survives to see the launch of another BlackBerry smartphone.






It has been a steep decline for RIM, which less than five years ago was the most valuable company in Canada, above Royal Bank (TSX:RY). Affectionately called the “CrackBerry” maker, the mobile communications pioneer was Canada’s crowning achievement of the technology sector.


Back in 1984, the year RIM was founded, it was practically unimaginable that a tiny startup based in Waterloo, Ont. would help change the way we communicate, but for fresh engineering graduates Mike Lazaridis and Douglas Fregin that was always the plan.


“Like so many of these guys Lazaridis was a Star Trek lunatic,” said Alastair Sweeny, author of “BlackBerry Planet.”


“He says it’s almost like telepathy — humans have a yearning to communicate.”


The beginnings were humble for the two founders, with the majority of their time dedicated to Budgie, an LED sign business that was contracted by General Motors to communicate messages to workers on its assembly lines. Despite early interest, the project was a sales flop and RIM‘s owners decided to sell the business and look at other ventures.


One of those projects put RIM squarely in the eyes of Hollywood. The DigiSync film reader caught on with movie editors because its synching technology shaved hours off the time it took to turn miles of film into useable content in post-production. While the technology went on to win RIM both an Emmy and a technical achievement from the Academy Awards, it was never a top priority for RIM‘s founders.


Lazaridis was always into security,” said Sweeny. “He realized that corporations needed secure communications because of industrial espionage, because of hacking.”


Throughout the late 1980s, RIM was working alongside other industry players to develop technology that would eventually be used in pagers and wireless payment processing systems. By the start of the 1990s, the wheels were turning on the communication systems that would become the foundation of the BlackBerry.


An agreement with Ericcson’s Mobitex wireless network allowed RIM to create pagers that operated as a two-way communicators, a revolutionary concept for data transfer.


Turning the idea into a marketable product was a bigger challenge. The world had yet to become accustomed to the Internet age and most people hadn’t heard of email, nevermind used it. While the project was a bust with its first partner Cantel, RIM forged ahead.


The technology captured the attention and imaginations of an industry, and perhaps most importantly Jim Balsillie, an energetic Harvard graduate who, at the age of 33, invested $ 250,000 of his own money into the company by re-mortgaging his house.


In 1996, RIM launched its first sales success, a clamshell wireless handheld device called the RIM 900 Interactive Pager. It was a two-way communicator that also had the ability to send faxes, as well as link to the Internet and email.


But Lazaridis discovered that the email feature, which he believed was one of the strongest qualities of the device, wasn’t being used by most customers. So he hired Lexicon Branding, based in California, to find a way to draw more attention to its keyboard, the main feature that differentiated it from other pagers.


Branding executives pondered the device, focusing mainly on its appearance, and when one of them pointed out the little keypad looked like similar to the seeds of a strawberry, the conversation zeroed in on the names of fruits and vegetables. Eventually, the group settled on “BlackBerry” because it was both punchy and remained true to the device’s original black casing.


The company listed on the Toronto Stock Exchange in 1997, raising more than $ 115 million, and debuted the first BlackBerry the following year.


From there it seemed the sky was the limit.


Suddenly the BlackBerry was everywhere in the technology community, thrust into the spotlight by the enthusiastic co-CEO Balsillie who touted the device on Wall Street and handed it out for free at select technology conferences. Balsillie knew how to build buzz and proudly tapped away on the BlackBerry whenever he appeared before the media.


A demand had been created, and subscribers to the BlackBerry services continued to grow in leaps and bounds. In 1999, RIM listed on the Nasdaq, raising another US$ 250 million.


The success grabbed the attention of Virginia-based NTP Inc. which filed a lawsuit claiming that RIM‘s network infringed on its patents. While NTP won the case, and the courts ordered RIM to pay US$ 23.1 million, the battle continued in appeals courts for years before a settlement was reached for a much heftier $ 612.5 million.


Outside the courtrooms the BlackBerry was a massive success, garnering headlines when its enterprise network remained intact after the terrorist attacks on Sept. 11 when other wireless phone systems broke down.


The BlackBerry’s reputation was growing at a steady clip, helped by the introduction of cellphone service in 2002 on what had been a text-only device. Within two years, BlackBerry reached more than 1 million subscribers.


The smartphone was in demand at corporate offices around the world, and soon the more casual consumer began to take notice, helping to boost its subscribers to nine million by 2007. RIM also secured a distribution deal in China, driving its stock to a level that made it the most valuable Canadian company.


But amid all of the success a storm of competition was brewing in the tech industry.


In June 2007, Apple unleashed the first iPhone touchscreen device onto the U.S. market, garnering widespread praise from critics and consumers, but hardly rattling its competitors.


Microsoft’s chief executive Steve Ballmer famously dismissed the touchscreen device that year, saying “there’s no chance that the iPhone is going to get any significant market share.”


Whether it was a strategic decision or simply coincidence, Apple kept its iPhone far away from the Canadian marketplace for nearly a year, choosing to launch in six other countries first.


The lower profile with Canadian consumers also seemed to minimize the concern from RIM’s executives, who publicly downplayed the influence of the iPhone in an already crowded mobile phone market.


“They just missed it,” said Carl Howe, vice-president of consumer research at Yankee Group.


“They missed the idea that you could create a really good experience without having a keyboard. They gave Apple a two-year head start.”


By the time the iPhone hit Canadian shelves, RIM was facing scrutiny from analysts who worried that the growing number competitors, which now also included Google’s Android system, would devour marketshare.


RIM went on the defensive in 2008, releasing a combination keypad and touchscreen device it called the Storm, but the phone was swept up in a flurry of other BlackBerry releases that year. Much of the marketing clout was put behind the debut of a high-end BlackBerry Bold, which wasn’t a touchscreen.


“A lot of tech companies have their heads in the sand,” said Howe of the co-CEOs.


“It’s not that they’re stupid, and I think that’s an important point. People who get hit by ‘innovator’s dilemma’ are not stupid … I think when you create something from scratch and turn it into a multi-billion dollar business you’re very reluctant to say ‘I’m now going to throw away everything I’ve learned and do something different.’ “


At the height of its hype, the BlackBerry device was splashed across television shows and movies, while then-presidential candidate Barack Obama proclaimed he was a BlackBerry faithful during his campaign.


As competition heated up with Apple, investors became concerned that RIM’s co-CEOs, in particular Balsillie, were distracted by the possibilities that success brought them, rather than focused on revamping the BlackBerry for a new era.


In 2009, Balsillie launched his third, and most aggressive, attempt to buy an National Hockey League team, with hopes that he could convince the NHL to move the Phoenix Coyotes to Hamilton. The battle dragged on for months before Balsillie abandoned his dream once again.


Back in Waterloo a storm was brewing as technical problems began to wreak havoc on the company’s network infrastructure.


There were two network outages in less than a year that left BlackBerry users temporarily without their services. Some industry observers suggested the company could buckle under its own success. BlackBerry sales were soaring, even with the technical problems, with subscriber growth up 70 per cent to 36 million by the end of 2009. RIM’s leaders reassured users that the outages were a fluke and wouldn’t be a reoccurring problem.


Despite the setbacks, the BlackBerry image appeared to emerge unscathed. In April 2010 it cracked the Top Five mobile phone carriers worldwide and soon afterwards Queen Elizabeth made a visit to RIM’s headquarters in Waterloo.


Behind the scenes there was unrest among the company’s board of directors as the leaders clashed over where the BlackBerry brand should go next. Rumours swirled around the industry that trouble was afoot.


Fanfare eventually gave way to the realities of competition, with the first major blow coming from the failed launch of the PlayBook, RIM’s answer to Apple’s iPad. In September 2010, the co-CEOs showcased the new product for the public but waited another six months before unleashing it to stores.


By then it was too late, the tablet market had already been cornered by Apple and reviews of the PlayBook harshly criticized its lack of connectivity to popular BlackBerry functions like email and instant messenger.


Within months the foundation of RIM started to crumble as it repeatedly missed its own revenue and earnings targets. In June 2011, the company slashed 11 per cent of its workforce, or 2,000 jobs, to keep its cost in line.


A stark reminder of its fragility came in October 2011 when a worldwide four-day outage left BlackBerry users again without the use of the device they had come to rely on. The smartphones wouldn’t connect to the Internet, email or its messaging services.


The anger from its loyal users was heard loud and clear, and Lazaridis emerged from days of silence to apologize and tell users the company had let them down.


In an earnings call several weeks later, Lazaridis urged investor “patience and confidence” as the executives tried to improve performance. Both he and Balsillie, two of the company’s biggest shareholders, reduced their salaries to $ 1.


Again, it was a decision made too late — the outage had cost RIM more than $ 50 million in revenue and tarnished its reputation. In December 2011, the company reported that profits tumbled more than 70 per cent, affected by a big charge from sales discounts it was forced make on PlayBook tablets.


Perhaps an even bigger blow to RIM’s reputation was the delay of its next-generation BlackBerrys, pushing the planned release into 2012. The phones — which were delayed again throughout last year and will be unveiled this Wednesday — were seen as the company’s best hope to maintain market share against Apple and Android devices.


The company stock had tumbled from its lofty height of $ 137.41 on the Toronto Stock Exchange in mid-2008 to $ 14.80 at the end of 2011.


RIM, once a symbol of Canadian success and innovation, had become awash in its own troubles. Apple’s iPhone had cornered the rapidly developing apps market while RIM sat on the sidelines with developers.


Sweeny recalls visiting a group of developers, who he considered BlackBerry fanatics, while doing research for his book in 2008.


“They were writing great games and programs for the BlackBerry and they couldn’t get the latest hardware from RIM to test them on,” he said.


“I called them a couple years later and they weren’t writing for BlackBerry at all. They were writing programs for Apple and starting to write for Android.”


From an outsider’s perspective, it’s often suggested that the co-CEOs lost control of their empire, but some industry watchers say that RIM saw the troubles several years earlier.


“In this market you can’t admit that you’re behind,” said Tim Long, an analyst at BMO Capital Markets.


“You have to put on the face because once you start to lose momentum that can shift the buying patterns.”


Numerous acquisitions were made by RIM throughout 2010 and 2011 to beef up its stable of technology, Long said. That included Ottawa-based QNX Software Systems, whose technology became the basis of the new operating system, and Astonishing Tribe, the Swedish company that helped develop an early user interface of the Android operating system.


But the acquisitions came too late, and by late 2011 some investors were calling for its leaders to resign.


Bowing to pressure, Balsillie and Lazaridis stepped down from their co-CEO positions in January 2012, pocketing a combined $ 12 million in the process. The duo were replaced by Thorsten Heins, RIM’s former chief operating officer, and hardly two months later Balsillie had left the company entirely.


Almost immediately, Heins launched a major revamp of RIM’s operations, hiring several new executives with experience at other major tech companies. The approach was a last-ditch effort to revive the company, but it has also thrown the BlackBerry maker into the most uncertain period in its history.


With nearly $ 2 billion in its coffers Heins had options, but the clock was ticking to get a new smartphone on the market.


“Nobody is delusional here,” Rick Costanzo, the company’s new executive vice-president of global sales, said last summer.


“We get it. That’s why we’re building BlackBerry 10 and man are we committed.”


A new chapter in RIM’s history begins this week as the BlackBerry 10 smartphones and operating system are showcased to the world.


Wireless News Headlines – Yahoo! News





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Ailing Jennifer Lawrence Plans to Attend the Screen Actors Guild Awards, Say Sources









01/27/2013 at 01:40 PM EST



Will Jennifer Lawrence walk the red carpet at Sunday night's Screen Actors Guild Awards?

The Silver Linings Playbook star, who's nominated for her leading role playing troubled girl-next-door Tiffany, is currently sick with pneumonia, according to her costar. But sources tell PEOPLE that Lawrence is planning to attend the SAG Awards unless she takes a turn for the worse before showtime.

"She's been very sick," says one source. "She was laying low all week. She plans to be there tonight."

The actress, 22, was unable to attend Saturday's Australian Academy of Cinema and Television Arts International Awards in Los Angeles, where she was honored for her work in the film.

"I'm going to receive this on her behalf," Jacki Weaver told the audience as she accepted Lawrence's best lead actress trophy, according to E! News. "Poor Jen is really sick. She really is sick. She has pneumonia."

After nabbing a Golden Globe earlier this month, the actress is a favorite to pick up the SAG Award.

The 19th Annual Screen Actors Guild Awardswill air live on TNT and TBS on Sunday, Jan. 27, at 8 p.m. ET (5 p.m. PT) from the Shrine Auditorium in Los Angeles.

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