Court rules for Motorola and makes Apple pull iPads and iPhones in Germany

Linda Young – AHN News Writer

Mannheim, Germany (AHN) – A court ruling favoring Motorola Mobility has forced Apple to pull several of its iPad and iPhone models from its German online store.

Motorola had filed suit against Apple to enforce its patent injunction against its rival. In December, the court in Manheim, Germany issued a ruling saying that Apple had failed to license one of Motorola’s wireless intellectual properties.

The affected products include Apple’s iPhone 3G, iPhone 3GS and iPhone 4, along with all 3G models of its iPad. However, its Apple’s newer iPhone 4S and its wi-fi-only iPad are not affected.

Apple says it will appeal the ruling. It claims that Motorola had repeatedly refused to license the applicable patent to Apple with reasonable terms and conditions. However, Motorola disagrees and says it has offered Apple reasonable licensing of the patent since 2007.

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U.S. stocks fall as GDP trails forecast

Diane Alter – AHN News Reporter

New York, NY, United States (AHN) – Wall Street opened lower Friday after a report showed that the U.S. economy expanded less than forecast..

Just after the opening bell, the Dow Jones Industrial Average was lower by 33 points, the Standard and Poor’s 500 Index was flat and the NASDAQ was up by about 6 points.

Weighing on stocks was a report that showed the U.S. economy expanded at 2.8 percent in the fourth quarter, less than the 3 percent that had been projected.

In Europe the Stoxx Europe 600 Index slipped 0.7 percent as investors await word on developments on the region’s sovereign debt crisis. European Union Economic and Monetary Affairs Commissioner Olli Rehn said authorities are “very close” to reaching an agreement on private-sector involvement in a Greek debt swap.

Despite those words of optimism, the dismal growth of GDP in the U.S. was keeping investors cautious. The health and growth of the U.S. economy is a very important and leading indicator of economic growth worldwide. As analysts like to say, “when the U.S. sneezes, the world catches a cold.”

In corporate news, Ford fell after reporting numbers that missed estimates. Starbucks shares slipped despite reporting better than expected numbers, and Juniper Networks plunged after the second biggest maker of computer networking equipment forecast sales and profits that missed estimates.

In commodities, oil was unchanged at $$99.60 a barrel, gold rose $4.70 to $1,725 a troy ounce and silver was up a few pennies at $33.63.

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Nancy Shevell, Mrs. Paul McCartney, resigns from MTA Board

Diane Alter – AHN News Reporter

NYC, NY, United States (AHN) – Nancy Shevell, otherwise known as Mrs. Paul McCartney, resigned from the Metropolitan Transportation Authority board Wednesday.

Ms. Shevell was appointed to the MTA board in 2001 by former Gov. George Pataki. She is the third-longest serving current member and has remained as a holdover member since her term expired in 2010.

Ms. Shevell is the vice president of New England Motor Freight and her family’s stable and prosperous businesses.

Ms. Shevell did not give any explanation for her resignation, but her presence, and the loss of her high profile name, is a loss for the board.

Ms. Shevell did not speak to reporters about her decision to step down. She did however say at the meeting Wednesday, “I am very emotional and sad right now.”

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Wall Street opens mixed Friday on GE, Google earnings

Diane Alter – AHN News Reporter

New York, NY, United States (AHN) – Wall Street opened mixed to lower Friday morning following earnings reports from General Eclectic and Google that disappointed.

Just after the opening bell, the Dow Jones Industrial Average was flat, the S&P 500 Index was down 3 points and the NASDAQ fell 9 points.

Weighing on stocks was an earnings report from Dow component General Electric. Shares of GE dropped more than 2 percent after the largest U.S. conglomerate reported roughly flat profit from continuing operations, and revenues that missed estimates.

Meanwhile, Internet giant Google tumbled more than 8 percent, or 52.38, to 586.66, after the search engine reported quarterly profit and revenue that missed Wall Street estimates. Google blamed the shortfall on declining search advertising rates.

Microsoft shares rose 3 percent after decent earnings, and IBM rose $4.87 to $185.45 after giving a strong outlook on a strong earnings report.

Investors are still keeping a close eye on developments in Europe regarding the sovereign debt crisis.

Greece and its private bondholders were “converging toward” a long-awaited debt swap deal, with an initial agreement coming as early as Friday that would prevent a default from Greece.

In commodities, oil was trading off $1.19 to $99.20 a barrel, and gold was down $1.20 to $1,652.90 a troy ounce.

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Nation’s Mayors Support Gay Marriage But Complain About Unemployment

Tom Ramstack – AHN News Legal Correspondent

DC, Washington, United States (AHN) – The U.S. Conference of Mayors wrapped up its winter meeting Friday in Washington, D.C., with Chicago Mayor Rahm Emanuel stepping into controversies on same sex marriage and education.

Emanuel joined about 80 other mayors from across the nation in endorsing laws to give legal recognition to same sex marriage, along with the tax breaks and other benefits spouses can share.

The mayors signed on to a statement that said, “Our cities derive great strength from their diversity and gay and lesbian families are a crucial part. Studies have shown what we know through our hands-on experience that cities that celebrate and cultivate diversity are the places where creativity and ideas thrive.”

Emanuel supported the Illinois Legislature’s effort last year to legalize civil unions for same-sex couples.

He said New York did “a good thing” last June when state lawmakers legalized gay marriage.

In separate comments Friday, Emanuel discussed his plan to turn Chicago’s community colleges into training institutions for the city’s employers.

Currently, Chicago’s City Colleges have a graduation rate of about 7 percent and job prospects for graduates that are “not as high,” Emanuel said.

His plan calls for each of the city’s seven community colleges to operate with specialties, such as health care, transportation, hospitality and manufacturing.

In addition, employers would be brought in to develop curricula that would train the students to become their employees.

“I want it to have economic value” to attend college, Emanuel said at the downtown Washington hotel where about 250 mayors were meeting.

Turning colleges into job training institutions is controversial among some academics, who say a well-rounded education requires liberal arts courses that include literature, history and the arts.

Nevertheless, job creation and recovery from the economic disaster of the Great Recession were dominant themes throughout the meeting this week.

The U.S. Conference of Mayors released a report that said the nation’s metropolitan areas will struggle for five more years to regain jobs lost during the recession that started in September 2008.

“The recovery is very uneven across U.S. regions, with the southeastern and southwestern metro [areas that] were the most affected by the housing bubble looking ahead to years of recovery,” the report says.

U.S. nonfarm payrolls will grow about 1.3 percent this year, which is unlikely to reduce the unemployment rate below 8 percent, according to a report by IHS Global Insight.

The report predicts the nation will regain nearly half the jobs lost during the Great Recession by the end of 2012.

The mayors used the economic report to try to prod Congress to approve legislation that would create more jobs.

Los Angeles Mayor Antonio Villaraigosa, president of the Conference of Mayors, said “Congress has jumped ship” in its obligation to stimulate the economy and employment.

However, Villaraigosa acknowledged cities will have a hard time squeezing money out of Congress at a time the federal government is trying to reduce its deficit by cutting spending.

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State Department to deny permit for Canada-U.S. oil pipeline project

Windsor Genova – AHN News News Writer

Washington, D.C., United States (AHN) – The U.S. State Department is reportedly denying a permit for the construction of Keystone XL, a 1,700-mile oil pipeline between Canada and the U.S. The news sent shares of TransCanada Corp., which will undertake the project, falling on Wednesday.

According to sources, the State Department will not issue the permit following the White House’s admission that it won’t meet the Feb. 21 deadline set by Congress to approve the pipeline that will transport Canadian bitumen to U.S. refineries in the Gulf Coast.

Meanwhile, 350.org, a group opposing the project, welcomed the news. Author, environmentalist and 350.org founder Bill McKibben said the denial of the Keystone XL permit is a victory for its opponents and a brave act of President Barack Obama.

McKibben said lobbyists for the project will still push American lawmakers to approve the project. Sen. John Hoeven (R-N.D.) plans to introduce a bill that will allow Congress to approve the $7 billion project.

Congress had given the State Department 60 days to decide on the project. The State Department, however, claimed that more time is needed to complete an environmental impact assessment on putting a pipeline in the sensitive Nebraska Aquifer, which is part of the proposed route of the pipeline.

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EU to delay oil embargo on Iran for sx months

Windsor Genova – AHN News News Writer

Brussels, Belgium (AHN) – A European Union official said Thursday the 27-nation bloc can start its oil embargo on Iran six months after agreeing to do so as three member countries—Greece, Italy and Spain—need to find alternative sources of oil first.

The official privy to ongoing negotiations of EU foreign ministers on the imposition of the embargo also said the ban on Iranian petrochemical products may start three months after all EU states agree on the oil embargo in their meeting on Jan. 23, the deadline for coming up with a collective decision.

The official added that it is possible that Italy may initially be exempted from imposing the oil embargo as it needs to sell oil imports to pay off its debt to Rome-based oil company Eni SpA.

EU foreign ministers are meeting in Brussels to explore ways to implement the oil embargo, according to Maja Kocijancic, a spokeswoman for the European Commission.

The EU imports 450,000 barrels of Iranian oil per day with Greece, Italy and Spain, accounting for nearly 70 percent of the volume in 2010.

Iran is the second largest oil producer among members of the Organization of Petroleum Exporting Countries. It produces and exports 3.58 million barrels of crude per day.

The oil embargo is the latest sanction imposed on Iran by Western countries, including the U.S., in a bid to force it to stop its nuclear program. The embargo aims to cut Tehran’s earnings from oil exports, where it sources funding for its nuclear program.

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U.S. consumer borrowing rises in November

Linda Young – AHN News Writer

Washington, D.C., United States (AHN) – Consumer borrowing in the United States rose in November by more than analysts had expected, fueled by purchases of cars and other items.

Spending rose by $20.4 billion to $2.48 trillion, which was the largest monthly increase since November 2001, according to the Federal Reserve.

That exceeded economists’ median estimate of $7 billion.

The data suggests that consumers are borrowing again, which could signal a recovery in the economy. Consumers had saved more and borrowed and spent less since 2007.

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Dow ended final trading day of 2011 down, closed up for the year

Diane Alter – AHN News Reporter

New York, NY, United States (AHN) – Last year was turbulent, trying and tumultuous for global stocks and commodities, And for many investors and traders, 2011 couldn’t end soon enough.

In the final trading day of 2011, the Dow Jones Industrial Average closed down 69 points, but managed to eck out a 5.5 percent gain for the year.

The closely tracked Standard & Poor’s 500 Index closed virtually flat, ending 2011 down 0.43 percent, while the tech heavy NASDAQ said good-bye to 2011 off 1.80 percent.

Commodities fared much better. Oil gained 8.15 percent in 2011, and gold was the sole double digit finisher bidding the year adieu with a stellar 10.23 percent gain.

The top three performers in the Dow were McDonalds, IBM and Pfizer. Laggards included Bank of American, Alcoa and Hewlett-Packard.

Leading gainers in the S&P were Cabot Oil & Gas, El Paso and Intuitive Surgical. Drags on the index were First Solar, Monster Worldwide, and Alpha Natural Resources.

Intuitive Surgical led the NASDAQ-100, followed by Alexion Pharmaceutics and Hansen Natural. The biggest loser in the index was Blackberry maker Research in Motion with First Solar and Netflix close behind.

Natural gas finished out the year at 2.989 per mil BTUs, its lowest level since 2009.

Gold, which closed 2011 up 10.23 percent, took a beating in December, falling as much as 10.5 percent in the final month of the year. The yellow metal peaked in August with a 33 percent rise.

While high unemployment, a nationwide ailing housing market and government gridlocks all weighed heavily on U.S. stocks, the European sovereign debt crisis was the biggest factor in equities gains and losses during 2011.

Markets were closed Jan. 2 in observance of New Year’s. Exchanges will start 2012 on Jan. 3 with normal trading hours, but volume and volatility is expected to be anything but normal.

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Ailing Yahoo! names ex-PayPal boss Thompson new CEO

AHN News Staff

Mountainview, CA, United States (AHN) – Former PayPal boss Scott Thompson has been named as the new chief executive of Internet search engine giant Yahoo.

Thompson will replace Carol Bartz, who had been sacked by the group four months ago for failing to turn the firm around.

A company statement said that Thompson, along with its board, would focus on company’s core business and try to identify the best approach for company as well as for its shareholders.

“Scott brings to Yahoo a proven record of building on a solid foundation of existing assets and resources to reignite innovation and drive growth, precisely the formula we need at Yahoo,” chairman Roy Bostock said in a statement.

“His deep understanding of online businesses combined with his team-building and operational capabilities will restore the energy, focus, and momentum necessary to grow the core business and deliver increased value for our shareholders,” he added.

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