RIM rebrands as BlackBerry; launches nifty new devices

NEW YORK (Reuters) – Research In Motion Ltd on Wednesday unveiled the long-delayed line of smartphones it hopes will put it on the comeback trail, but it disappointed investors by saying U.S. sales of its all-new BlackBerry 10 devices will not start until March, sending its share price tumbling 12 percent.

Chief Executive Thorsten Heins also announced that RIM was abandoning the name it has used since its inception in 1985 to take the name of its signature product, signaling his hopes for a fresh start for the company that pioneered on-your-hip email.

“From this point forward, RIM becomes BlackBerry,” Heins said at the New York launch. “It is one brand; it is one promise.”

RIM, which is already starting to call itself BlackBerry, had initially planned to launch the new BlackBerry 10 devices a year ago. But it pushed the release date back twice as it struggled to perfect a new operating system.

Ahead of Wednesday’s announcements, analysts had said that any launch after February would be a black mark for the Canada-based company.

“The biggest disappointment was the delay in the U.S., that it will take so long before the devices get going there,” said Eric Jackson, founder and managing Partner at Ironfire Capital LLC in New York.

Heins said the delays reflected the need for U.S. carrier testing, although carrier AT&T Inc offered few clues on what that meant. Instead, the carrier merely stated it was enthusiastic about the devices and would announce availability, pricing and other information at a later date.

“Carriers in all other parts of the world get their devices through the testing process significantly faster than the U.S. carriers do,” said John Jackson, an analyst at IDC, adding that the U.S. process can often take “weeks” longer.

Nevertheless investors were extremely disappointed with the delay and RIM shares on the Nasdaq ended the day 12 percent lower at $ 13.78. Its Toronto-listed shares fell by almost the same margin to close at C$ 13.86.

RIM launched its first BlackBerry back in 1999 as a way for busy executives to stay in touch with their clients and their offices, and the company quickly cornered the market for secure corporate and government emails.

But its star faded as competition rose and the BlackBerry is now a far-behind also-ran in the race for market share, with a 3.4 percent global showing in the fourth quarter – down from 20 percent three years before. Its North American market share is even smaller – a mere 2 percent in the fourth quarter.

RIM shares have tumbled along with the company’s market share and the stock is down 90 percent since its 2008 peak. Despite the pullback on Wednesday, RIM‘s share price has more than doubled over the last four months, reflecting the growing buzz about its new devices.

TOUCH COMPETITION

The new BlackBerry 10 phones will compete with Apple’s iPhone and devices using Google’s Android technology, both of which have soared above the BlackBerry in a competitive market.

The BlackBerry 10 devices boast fast browsers, new features, smart cameras and – unlike previous BlackBerry models – enter the market primed with a large application library, including services such as Skype and the popular game Angry Birds.

The BlackBerry Z10 touchscreen device, in black or white, will be the first to hit the market, with a country-by-country rollout that starts in Britain on Thursday.

A Q10 model, equipped with a small “qwerty” keyboard that RIM made into its trademark, will launch globally in April.

“I’m still confident that a lot of the subscriber base are going to want the upgrade to BlackBerry 10. It’s a very strong improvement over what they currently have. This is not going to cause mass defections from iOS and Android, but it doesn’t have to be a success for RIM. You’ve got to start somewhere,” said Jackson of Ironfire, which owns shares in RIM.

The Z10 device won a lukewarm review from The Wall Street Journal’s tech blogger Walt Mossberg, who complained of a shortage of apps.

On the other hand, David Pogue, who writes for The New York Times, apologized for describing BlackBerry as doomed in the past. The Z10 touchscreen device was “lovely, fast and efficient, bristling with fresh, useful ideas,” he said.

While technology analysts conceded that RIM has done quite a remarkable job on many of the features of BlackBerry 10 and on the array of its app selection for a new platform, many argue it will be a very tough slog for RIM to regain its crown.

“I don’t think that RIM will return to its glory days,” said Charles Golvin, analyst at Forrester Research. “Success for them looks like staunching the bleeding and clawing back a percentage or point or two of market share.”

Announcements about pricing so far have been in line with expectations. U.S. carrier Verizon Wireless said the phone would cost $ 199 for a two-year contract, while Canada’s Rogers Communications is quoting C$ 149 ($ 150) for certain three-year plans.

GLITZY LAUNCH

RIM picked a range of venues for its global launch parties, including Dubai’s $ 650-a-night Armani Hotel, which occupies six floors of the Burj Khalifa, the world’s tallest tower.

The New York event took place in a sprawling basketball facility on the Lower East Side of Manhattan, just north of the Manhattan Bridge. The BlackBerry has been “Re-designed. Re-engineered. Re-invented,” RIM said.

RIM, which is splurging on a Super Bowl ad to promote its new phones, also introduced Grammy-winning singer-songwriter Alicia Keys as its global creative director.

“I was in a long-term relationship with BlackBerry and then I started to notice some new, kind of hotter, attractive, sexier phones at the gym, and I kind of broke up with you for something that had a little more bling,” Keys said at the New York launch.

“But I always missed the way you organized my life and the way you were there for me at my job, and so I started to have two phones – I was kind of playing the field. But then … you added a lot more features … and now, we’re exclusively dating again, and I’m very happy,” she said.

($ 1=$ 1.0029 Canadian)

(Writing by Janet Guttsman; editing by Frank McGurty, Lisa Von Ahn, Peter Galloway, G Crosse)

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Jason London Suffered 'Brutal Attack' While Being Arrested: Rep

By Maggie Coughlan and Ken Lee

01/30/2013 at 08:30 PM EST

After being arrested following a bar fight in Scottsdale, Ariz., over the weekend, Jason London insists the incident isn't what it seems.

"The details of the events leading up to the incident are still being worked out with the help of many eyewitness testimonies; people who were there with Jason for the duration of the evening and with the recollection Jason does have. We will undoubtedly get to the bottom of the specifics. Neither Jason nor any of the witnesses we have spoken to have any recollection of anything even feeling like it was going south," according to a statement released by London's rep.

The statement claims that "excessive force" was used by the four bouncers during the altercation at the Martini Ranch.

The statement continues: "Bars are institutions where there are drunk people who are sometimes inappropriate and even violent. It is the bouncers' job to remove the problem and if it is necessary, to use force in order to secure the safety of the establishment and patrons. It is not acceptable to retaliate with brutality once that has been accomplished."

London's injuries include "a right orbital fracture, a right maxillary sinus fracture, multiple contusions, multiple hematomas and concussion."

But the cause of the scuffle remains unclear: "In the midst of having a good time, Jason does remember one of the guys saying something about Jason looking at his friend's girl wrong and grabbing and dragging him. The next thing Jason remembers was coming to with the cops arresting him," the statement reads.

Following his arrest, the actor – who is best known for his role in Dazed and Confused – allegedly intentionally defecated in the backseat of a patrol car, the police report claims.

The report also states that the twin brother of Jeremy London continually cursed at the officer, dropping a homophobic slur and telling the officer to "look me up" because "I'm rich" and "a famous actor."

Managers for the Martini Ranch weren't immediately available for comment.

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Sex to burn calories? Authors expose obesity myths

Fact or fiction? Sex burns a lot of calories. Snacking or skipping breakfast is bad. School gym classes make a big difference in kids' weight.

All are myths or at least presumptions that may not be true, say researchers who reviewed the science behind some widely held obesity beliefs and found it lacking.

Their report in Thursday's New England Journal of Medicine says dogma and fallacies are detracting from real solutions to the nation's weight problems.

"The evidence is what matters," and many feel-good ideas repeated by well-meaning health experts just don't have it, said the lead author, David Allison, a biostatistician at the University of Alabama at Birmingham.

Independent researchers say the authors have some valid points. But many of the report's authors also have deep financial ties to food, beverage and weight-loss product makers — the disclosures take up half a page of fine print in the journal.

"It raises questions about what the purpose of this paper is" and whether it's aimed at promoting drugs, meal replacement products and bariatric surgery as solutions, said Marion Nestle, a New York University professor of nutrition and food studies.

"The big issues in weight loss are how you change the food environment in order for people to make healthy choices," such as limits on soda sizes and marketing junk food to children, she said. Some of the myths they cite are "straw men" issues, she said.

But some are pretty interesting.

Sex, for instance. Not that people do it to try to lose weight, but claims that it burns 100 to 300 calories are common, Allison said. Yet the only study that scientifically measured the energy output found that sex lasted six minutes on average — "disappointing, isn't it?" — and burned a mere 21 calories, about as much as walking, he said.

That's for a man. The study was done in 1984 and didn't measure the women's experience.

Among the other myths or assumptions the authors cite, based on their review of the most rigorous studies on each topic:

—Small changes in diet or exercise lead to large, long-term weight changes. Fact: The body adapts to changes, so small steps to cut calories don't have the same effect over time, studies suggest. At least one outside expert agrees with the authors that the "small changes" concept is based on an "oversimplified" 3,500-calorie rule, that adding or cutting that many calories alters weight by one pound.

—School gym classes have a big impact on kids' weight. Fact: Classes typically are not long, often or intense enough to make much difference.

—Losing a lot of weight quickly is worse than losing a little slowly over the long term. Fact: Although many dieters regain weight, those who lose a lot to start with often end up at a lower weight than people who drop more modest amounts.

—Snacking leads to weight gain. Fact: No high quality studies support that, the authors say.

—Regularly eating breakfast helps prevent obesity. Fact: Two studies found no effect on weight and one suggested that the effect depended on whether people were used to skipping breakfast or not.

—Setting overly ambitious goals leads to frustration and less weight loss. Fact: Some studies suggest people do better with high goals.

Some things may not have the strongest evidence for preventing obesity but are good for other reasons, such as breastfeeding and eating plenty of fruits and vegetables, the authors write. And exercise helps prevent a host of health problems regardless of whether it helps a person shed weight.

"I agree with most of the points" except the authors' conclusions that meal replacement products and diet drugs work for battling obesity, said Dr. David Ludwig, a prominent obesity research with Boston Children's Hospital who has no industry ties. Most weight-loss drugs sold over the last century had to be recalled because of serious side effects, so "there's much more evidence of failure than success," he said.

___

Online:

Obesity info: http://www.cdc.gov/obesity/data/trends.html

New England Journal: http://www.nejm.org

___

Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Chesapeake CEO McClendon steps down after year of tumult

(Reuters) - Chesapeake Energy Corp said on Tuesday that Aubrey McClendon will step down as chief executive after a tumultuous year in which a series of Reuters investigations triggered civil and criminal probes of the second-largest U.S. natural gas producer.

News of the executive's plan to depart on April 1 boosted the company's shares by 9 percent. The stock has made a partial recovery since losing almost half its value last spring after a Reuters report opened the company and its co-founder up to intense scrutiny.

Federal regulators and Chesapeake's board are both looking into whether McClendon, 53, blurred the line between his personal dealings and that of the company, and into possible antitrust violations. Big shareholders took control of the board in June after he was stripped of his title as chairman of the company he co-founded in 1989.

The internal deliberations that led to McClendon's departure remain unclear. The findings of the board's probe will be released next month, but Chesapeake said in a statement that the review has "to date found no improper conduct."

"I think that the controversy, governance and other issues that have been pulled up have caused lots of questions about him," said David Larcker, professor of accounting at Stanford University's Graduate School of Business. "This was just sucking up so much time, it had to be a reasonable decision to change management."

Chairman Archie Dunham was not available to comment late on Tuesday. The former head of ConocoPhillips was brought in to quell the shareholder revolt.

In an email to employees, McClendon put his departure down to "philosophical differences" with the board, but assured them: "The separation will be amicable and smooth."

Despite a history of McClendon's perks and corporate benefits creating controversy among shareholders, he will leave Chesapeake with a lavish package. The company said he "will receive his full compensation and other benefits to which he is entitled."

A person familiar with the terms of McClendon's departure said it was being treated as "termination without cause," entitling the CEO to some of the most generous benefits laid out in an employment contract that details a wide range of severance scenarios.

A chart presented to shareholders before Chesapeake's annual meeting last year showed that termination without cause could entitle McClendon to as much as $53 million in total benefits over five years, including up to $2.5 million related to his use of company aircraft. It was not clear whether McClendon's package would conform to that chart, which was based on past compensation levels. Chesapeake's board recently cut McClendon's pay package and gave him no bonus for 2012.

The same chart presented to shareholders showed that, if McClendon had retired without the backing of the board, he could have been on the hook for millions in "claw-back" payments related to a $75 million award from the company in 2008.

A Chesapeake spokesman declined comment.

FRACK KING

As head of a company that bet big on natural gas, McClendon played a key role in promoting the hydraulic fracturing technology that unlocked the huge U.S. supplies in shale formations that are now depressing prices.

News of his departure comes just over two weeks after Encana Corp CEO Randy Eresman said he would step down immediately.

Last June, Reuters reported that Chesapeake plotted with Encana, its top competitor, to suppress land prices in the Collingwood shale in Northern Michigan, a matter that is the subject of investigation by both the state of Michigan and the Department of Justice.

That followed a Reuters investigation in April which found McClendon had arranged to personally borrow more than $1 billion from EIG Global Energy Partners, a firm that also is a big investor in Chesapeake.

The loans, arranged through McClendon's personal shell companies, were secured by his interest in company wells. McClendon is allowed to take up to 2.5 percent stake in every well Chesapeake drills under a controversial program called the Founders Well Participation Program (FWPP).

"The empire that he built was based on far higher gas prices, both for Chesapeake and for him through the Founder Well Participation Program. So given that outlook, it's not a surprise he is stepping down," said Mark Hanson, an oil and gas analyst at Morningstar Inc in Chicago.

"At the end of the day, it's no longer the company that it once was. The board is really not with him these days. If you have done things a certain way for 23 years and then all of a sudden things change as radically as they have in the last six months, it's hard to get used to."

In early May, after another Reuters investigation revealed that McClendon had partially owned and helped run a secretive $200 million hedge fund to trade in the same commodities Chesapeake produces, Florida Senator Bill Nelson urged the U.S. Department of Justice to investigate potential market manipulation or fraud by the CEO.

An aide to Senator Nelson said he was not immediately available for comment on McClendon's pending departure.

Major investors Carl Icahn, who now has a Chesapeake stake of nearly 9 percent, and Mason Hawkins, with 13.5 percent, took control of the nine-member board last June.

In a statement issued about a half-hour after the news of the departure, Icahn said he believed history would prove McClendon was right about the ultimate value of natural gas and praised the assets assembled by the former CEO.

"While it is known that some of these assets will be sold by the company in due course, I do not believe that this will in any way effect the ultimate realization of Chesapeake's potential," Icahn said.

Chesapeake has been forced to sell billions of dollars worth of acreage, but Dunham said in a memo to employees on Tuesday that "the company is not for sale."

Chesapeake shares rose to $20.69 in post market trading, up from a New York Stock Exchange close of $18.97. The stock is down from highs just above $26 last March, which came before natural gas prices tumbled to decade lows and McClendon became an object of so much bad publicity.

(Reporting by Anna Driver and Brian Grow, with additional reporting by Joshua Schneyer and David Sheppard.; Writing by Braden Reddall; editing by Carol Bishopric, Phil Berlowitz and Andre Grenon)

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Sixty-five people executed in Syria's Aleppo: activists

BEIRUT (Reuters) - At least 65 people were found shot dead with their hands bound in the northern Syrian city of Aleppo on Tuesday in a "new massacre" in the near two-year revolt against President Bashar al-Assad, activists said.

Opposition campaigners blamed the government but it was impossible to confirm who was responsible. Assad's forces and rebels have been battling in Syria's commercial hub since July and both have been accused of carrying out summary executions.

U.N.-Arab League mediator Lakhdar Brahimi told the U.N. Security Council "unprecedented levels of horror" had been reached in Syria, and that both the government and rebels had committed atrocious crimes, diplomats said.

He appealed to the 15-nation council to overcome its deadlock and take action to help end the civil war in which Syria is "breaking up before everyone's eyes".

More than 60,000 people are estimated to have been killed in the war, the longest and deadliest of the revolts that began throughout the Arab world two years ago.

The U.N. refugee agency said the fighting had forced more than 700,000 people to flee. World powers fear the conflict could envelop Syria's neighbors including Lebanon, Jordan and Turkey, further destabilizing an already explosive region.

Opposition activists posted a video of at least 51 muddied male bodies alongside what they said was the Queiq River in Aleppo's rebel-held Bustan al-Qasr neighborhood.

The bodies had what looked like bullet wounds in their heads and some of the victims appeared to be young, possibly teenagers, dressed in jeans, shirts and trainers.

Aleppo-based opposition activists who asked not to be named for security reasons blamed pro-Assad militia fighters.

They said the men had been executed and dumped in the river before floating downstream into the rebel area. State media did not mention the incident.

The British-based Syrian Observatory for Human Rights, which says it provides objective information about casualties on both sides of Syria's war from a network of monitors, said the footage was evidence of a new massacre and the death toll could rise as high as 80.

"They were killed only because they are Muslims," said a bearded man in another video said to have been filmed in central Bustan al-Qasr after the bodies were removed from the river. A pickup truck with a pile of corpses was parked behind him.

STALEMATE

It is hard for Reuters to verify such reports from inside Syria because of restrictions on independent media.

Rebels are stuck in a stalemate with government forces in Aleppo - Syria's most populous city which is divided roughly in half between the two sides.

The revolt started as a peaceful protest movement against more than four decades of rule by Assad and his family, but turned into an armed rebellion after a government crackdown.

About 712,000 Syrian refugees have registered in other countries in the region or are awaiting processing as of Tuesday, the U.N. refugee agency said.

"We have seen an unrelenting flow of refugees across all borders. We are running double shifts to register people," Sybella Wilkes, spokeswoman for the U.N. High Commissioner for Refugees (UNHCR), told Reuters in Geneva.

The United Nations said it had received aid promises ahead of a donor conference in Kuwait on Wednesday where it is seeking $1.5 billion for refugees and people inside Syria. Washington announced an additional $155 million that its said brought the total U.S. humanitarian aid to the crisis to some $365 million.

Aid group Médecins Sans Frontières said the bulk of the current aid was going to government-controlled areas in Syria and called on donors to make sure they were even-handed.

MISSILES

In the eastern city of Deir al-Zor, insurgents including al Qaeda-linked Islamists captured a security agency after days of heavy fighting, according to an activist.

Some of the fighters were shown carrying a black flag with the Islamic declaration of faith and the name of the al-Nusra Front, which has ties to al Qaeda in neighboring Iraq.

The war has become heavily sectarian, with rebels who mostly come from the Sunni Muslim majority fighting an army whose top generals are mostly from Assad's Alawite sect, an offshoot of Shi'ite Islam. Assad has framed the revolt as a foreign-backed conspiracy and blames the West and Sunni Gulf states.

Fighting also took place in the northern town of Ras al-Ain, on the border with Turkey, between rebels and Kurdish militants, the Observatory said.

In Turkey, a second pair of Patriot missile batteries being sent by NATO countries are now operational, a German security official said.

The United States, Germany and the Netherlands each committed to sending two batteries and up to 400 soldiers to operate them after Ankara asked for help to bolster its air defenses against possible missile attack from Syria.

(Additional reporting by Sylvia Westall in Kuwait, Sabine Siebold in Berlin and Stephanie Nebehay in Geneva; Editing by Andrew Heavens and Robin Pomeroy)

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New BlackBerry to Be ‘Most Comprehensive in Mobile History’

RIM is finally ready with its answer to Apple’s iPhone and the many Android smartphones. After months of delays, RIM CEO Thorsten Heins, along with others from the company, will take the stage Wednesday in New York to unveil the final version of BlackBerry 10, the next version of RIM’s phone software, and the phones that will run it.

“We expect tomorrow to really be the kickoff for the introduction of Blackberry 10,” RIM’s Chief Marketing Officer Frank Boulben told ABC News in a phone interview. “We have been engaged for quite a period of time with the two main constituents — the carriers and the developers — and we’ve already said we are in the labs of more than 150 carriers around the world.”

Column: BlackBerry Burden: What RIM Must Do to Come Back

With more than 150 wireless carriers around the world planning to offer the latest BlackBerry, Boulben says it will be the most “comprehensive launch,” not only for the company, but in the history of the mobile industry.

“This makes it the most comprehensive launch in mobile history. There has never been a platform launching with that many carriers,” he said. When the iPhone 5 made its debut in September it actually had more — Apple said there would be 240 carriers by December. But Boulben points out that BlackBerry 10 is an entirely new operating system that doesn’t share a single line of code with previous BlackBerry software; the iPhone 5 and iOS 6, by contrast, was essentially an upgrade.

At Wednesday’s event the company will show its new handsets in detail. RIM is expected to release a touch-screen device called the Z10 and another with a physical keyboard. AT&T, T-Mobile and Verizon have said they will carry devices that run the new software. Boulben also said RIM will highlight major differences between BlackBerry 10 and the other leading mobile phone platforms.

“We are highly differentiated in four areas,” Boulben said. The first is with communications — RIM has designed the software around a messaging hub and new multitasking features. The second: the touch keyboard, which predicts words as you are typing them. Lastly, RIM says its BlackBerry Messenger and its BlackBerry Balance feature, which separates work from personal uses on the phone, set it apart.

Boulben would not address specifically how much market share RIM is hoping to gain back in the U.S., having lost the lead it had in the last decade. According to Kantar Worldpane ComTech’s data released in November 2012, the BlackBerry brand only had 1.6 percent of the American smartphone market. The iPhone had 48.1 percent of the market and Android had 46.7.

“It’s a change in smartphone experience — the dominant paradigm, introduced six years ago, was great and revolutionary at the time. But six years is a long time for a technology cycle, with a new user experience with a clear focus we have the opportunity to take market share back,” Boulben said.

RIM CMO: BlackBerry 10 Will Make Others Look Outdated

While RIM is of course bullish about its new products, it faces one big challenge it might not be able to control: apps. While the platform might be innovative, it will trail behind the Apple App Store and Google Play Store in variety of apps. Boulben says the momentum around apps is strong and that Wednesday the BlackBerry World store will launch with 70,000 new apps.

RIM BlackBerry 10 Launch

Apps that worked on previous BlackBerry 7 devices won’t work on the BlackBerry 10 platform, since it is completely new. Analysts say that apps are bound to be the pain point for the platform, but it’s not too late to rule out RIM from taking back at least some of what it has lost.

“Given the speed that the market is moving, it’s hard to be dismissive of RIM given the strength of their brand and continued loyalty of many users,” Michael Gartenberg, Gartner Research Director, told ABC News. “It will be important for RIM to show tomorrow how they’ve evolved the BlackBerry to meet the challenges of other platforms and at the same time show positive differentiation.”

And that seems to be exactly RIM’s plan. “The time was right to switch to a new platform, one that will allow us to continue true to our DNA but also take it to the next level,” Boulben said. “It is a major undertaking for the company. It has been two years in the making, but we are ready.”

RIM’s BlackBerry 10 event begins at 10:00 a.m. ET on Jan. 30, 2013. ABC News will be reporting on the news throughout the day.

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Ashley Judd Splits from Husband Dario Franchitti

01/29/2013 at 08:05 PM EST

Ashley Judd and Dario Franchitti

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Ashley Judd and Dario Franchitti are splitting after more than a decade of marriage.

"We have mutually decided to end our marriage. We'll always be family and continue to cherish our relationship based on the special love, integrity, and respect we have always enjoyed," Judd, 44, and Franchitti, 39, tell PEOPLE exclusively in a statement on Tuesday.

After being engaged for about two years, the Missing star and the racecar driver tied the knot in a highly private ceremony in Scotland in 2001.

Judd's sister, Wynonna Judd, served as maid of honor, while the groom's brother Mario was the best man. – Julie Jordan

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Soldier with new arms determined to be independent

BALTIMORE (AP) — After weeks of round-the-clock medical care, Brendan Marrocco insisted on rolling his own wheelchair into a news conference using his new transplanted arms. Then he brushed his hair to one side.

Such simple tasks would go unnoticed in most patients. But for Marrocco, who lost all four limbs while serving in Iraq, these little actions demonstrate how far he's come only six weeks after getting a double-arm transplant.

Wounded by a roadside bomb in 2009, the former soldier said he could get by without legs, but he hated living without arms.

"Not having arms takes so much away from you. Even your personality, you know. You talk with your hands. You do everything with your hands, and when you don't have that, you're kind of lost for a while," the 26-year-old New Yorker told reporters Tuesday at Johns Hopkins Hospital.

Doctors don't want him using his new arms too much yet, but his gritty determination to regain independence was one of the chief reasons he was chosen to receive the surgery, which has been performed in the U.S. only seven times.

That's the message Marrocco said he has for other wounded soldiers.

"Just not to give up hope. You know, life always gets better, and you're still alive," he said. "And to be stubborn. There's a lot of people who will say you can't do something. Just be stubborn and do it anyway. Work your ass off and do it."

Dr. W.P. Andrew Lee, head of the team that conducted the surgery, said the new arms could eventually provide much of the same function as his original arms and hands. Another double-arm transplant patient can now use chopsticks and tie his shoes.

Lee said Marrocco's recovery has been remarkable, and the transplant is helping to "restore physical and psychological well-being."

Tuesday's news conference was held to mark a milestone in his recovery — the day he was to be discharged from the hospital.

Next comes several years of rehabilitation, including physical therapy that is going to become more difficult as feeling returns to the arms.

Before the surgery, he had been living with his older brother in a specially equipped home on New York's Staten Island that had been built with the help of several charities. Shortly after moving in, he said it was "a relief to not have to rely on other people so much."

The home was heavily damaged by Superstorm Sandy last fall.

"We'll get it back together. We've been through a lot worse than that," his father, Alex Marrocco, said.

For the next few months, Marrocco plans to live with his brother in an apartment near the hospital.

The former infantryman said he can already move the elbow on his left arm and rotate it a little bit, but there hasn't been much movement yet for his right arm, which was transplanted higher up.

Marrocco's mother, Michelle Marrocco, said he can't hug her yet, so he brushes his left arm against her face.

The first time he moved his left arm was a complete surprise, an involuntary motion while friends were visiting him in the hospital, he said.

"I had no idea what was going through my mind. I was with my friends, and it happened by accident," he recalled. "One of my friends said 'Did you do that on purpose?' And I didn't know I did it."

Marrocco's operation also involved a technical feat not tried in previous cases, Lee said in an interview after the news conference.

A small part of Marrocco's left forearm remained just below his elbow, and doctors transplanted a whole new forearm around and on top of it, then rewired nerves to serve the old and new muscles in that arm.

"We wanted to save his joint. In the unlucky event we would lose the transplant, we still wanted him to have the elbow joint," Lee said.

He also explained why leg transplants are not done for people missing those limbs — "it's not very practical." That's because nerves regrow at best about an inch a month, so it would be many years before a transplanted leg was useful.

Even if movement returned, a patient might lack sensation on the soles of the feet, which would be unsafe if the person stepped on sharp objects and couldn't feel the pain.

And unlike prosthetic arms and hands, which many patients find frustrating, the ones for legs are good. That makes the risks of a transplant not worth taking.

"It's premature" until there are better ways to help nerves regrow, Lee said.

Now Marrocco, who was the first soldier to survive losing all four limbs in the Iraq War, is looking forward to getting behind the wheel of his black 2006 Dodge Charger and hand-cycling a marathon.

Asked if he could one day throw a football, Dr. Jaimie Shores said sure, but maybe not like Baltimore Ravens quarterback Joe Flacco.

"Thanks for having faith in me," Marrocco interjected, drawing laughter from the crowd.

His mother said Marrocco has always been "a tough cookie."

"He's not changed that, and he's just taken it and made it an art form," Michelle Marrocco said. "He's never going to stop. He's going to be that boy I knew was going to be a pain in my butt forever. And he's going to show people how to live their lives."

___

Associated Press Chief Medical Writer Marilynn Marchione in Milwaukee and AP writer David Dishneau in Hagerstown, Md., contributed to this report.

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Asian shares rise, cautious before Fed, U.S. data

TOKYO (Reuters) - Asian shares rose on Tuesday as recent selling drew bargain hunters, but investors were cautious ahead of more U.S. economic reports and a Federal Reserve policy decision later in the week that may offer clues to the Fed's stimulus plans.

The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> advanced 0.7 percent to snap a four-day losing streak, led by a 1.1 percent jump in Australian shares <.axjo> to a fresh 21-month high on gains in financials shares.

South Korean shares <.ks11>, which slumped to an 8-week low on Monday, rebounded 0.8 percent.

Japan's Nikkei stock average <.n225> reversed earlier declines and rose 0.6 percent, buoyed by optimism over earnings of major banks. It briefly touched a fresh 32-month high above 11,000 on Monday. <.t/>

The benchmark Standard & Poor's 500 Index <.spx> eased slightly on Monday after an eight-day winning run but held above 1,500 points, after closing above that level on Friday for the first time in more than five years.

Risk appetite has been improving overall with U.S. earnings generally solid. A rise in a gauge of planned U.S. business spending in December added to a recent run of positive global economic data, along with signs of easing financial stress in the euro zone. Euro zone blue chips touched fresh 18-month peaks on Monday.

More solid U.S. growth indicators would, however, fuel speculation the Fed may consider pulling back on aggressive easing stimulus. The Fed ends a two-day policy meeting on Wednesday. The first estimate of U.S. fourth-quarter gross domestic product also will be released on Wednesday, followed by non-farm payrolls on Friday.

"Ahead of key events, markets are likely to stay in ranges. But with yields on U.S. Treasury and German government bonds inching higher, one might say investors may be shifting funds to riskier assets from safe-havens," said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo.

"That's part of the reason why the euro has stayed firm," he said.

Saito said while a rise in U.S. yields underpins the dollar against the yen, they were likely to be capped with end-month selling from exporters and options lined up between 90.50 and 91.50 yen.

The benchmark U.S. 10-year note yield briefly pierced 2 percent on Monday for the first time since last April, and inched up 1 basis point (bps) in Asia from New York close. The 10-year Japanese government bond yield also rose.

Naka Matsuzawa, fixed income strategist at Nomura Securities, said in a research that 5-year Treasuries have sold off about 10 bps over the last two days and breached 0.80 percent that has served as a support since April 2012, a sell-off which "would not have occurred unless expectations of an economic recovery have gained ground to the extent that the monetary policy outlook begins to change."

"The market is aware that risks are toward more hawkish FOMC statements in the future rather than dovish ones," considering a pick-up in the U.S. economic recovery and stock market rally, as well as the underlying global risk-on trend, he said.

YEN SELLING PAUSES

Yen selling paused, helping to bolster the benchmark South Korean stock index which is vulnerable to exchange rate swings as exporters lead market capitalization.

The dollar fell 0.1 percent to 90.78 yen after touching 91.32 on Monday, its highest level since June 2010, while the euro recouped earlier losses against the yen to steady around 122.14 yen after hitting 122.91 on Monday, its highest point since April.

The euro steadied against the dollar at $1.3456.

The pound fell to $1.5687 GBP=D4, near its lowest since August, in part because of comments from incoming Bank of England Governor Mark Carney that there was still scope for monetary policy to do more in the developed world.

"The prospect of more activist monetary policy is not exactly an encouraging one for GBP, certainly not as it comes on top of a host of other negative developments - an economy that is triple-dipping, a government that is struggling to cut its deficit, and soul-searching about the UK's role within the EU," wrote analysts at JPMorgan in a note.

But a more positive global growth outlook underpinned commodities.

U.S. crude rose 0.2 percent to $96.67 a barrel and Brent inched up 0.1 percent to $113.54.

London copper gained 0.2 percent to $8,065.50 a tonne.

Gold inched up 0.3 percent to $1,659.66 an ounce but was capped by receding investor appetite for safe-haven assets.

(Editing by Eric Meijer & Kim Coghill)

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French seal off Mali's Timbuktu, rebels torch library

GAO, Mali (Reuters) - French and Malian troops retook control of Timbuktu, a UNESCO World Heritage site, on Monday after Islamist rebel occupiers fled the ancient Sahara trading town and torched several buildings, including a library holding priceless manuscripts.

The United States and the European Union are backing a French-led intervention in Mali against al Qaeda-allied militants they fear could use the West African state's desert north as a springboard for international attacks.

The recovery of Timbuktu followed the swift capture by French and Malian forces at the weekend of Gao, another major town in Mali's north that had been occupied by the alliance of jihadist groups since last year.

The two-week-old mission by France in its former Sahel colony, at the request of Mali's government, has driven the Islamist rebels northwards out of towns into the desert and mountains.

Without a shot being fired, 1,000 French soldiers and paratroopers and 200 Malian troops seized Timbuktu airport and surrounded the town on the banks of the Niger River, looking to block the escape of insurgents.

In both Timbuktu and Gao, cheering crowds turned out to welcome the French and Malian troops.

A third town in Mali's vast desert north, Kidal, had remained in Islamist militant hands. But Malian Tuareg MNLA rebels, who are seeking autonomy for their northern region, said on Monday they had taken charge in Kidal after Islamist fighters abandoned it.

A diplomat in Bamako confirmed the MNLA takeover of Kidal.

A French military spokesman said the assault forces at Timbuktu were avoiding any fighting inside the city to protect the cultural treasures, mosques and religious shrines in what is considered a seat of Islamic learning.

But Timbuktu Mayor Ousmane Halle told Reuters departing Islamist gunmen had four days earlier set fire to the town's new Ahmed Baba Institute, which contained thousands of manuscripts.

UNESCO spokesman Roni Amelan said the Paris-based U.N. cultural agency was "horrified" by the news of the fire, but was awaiting a full assessment of the damage.

Ali Baba, a worker at the Ahmed Baba Institute, told Sky News in Timbuktu more than 3,000 manuscripts had been destroyed. "They are bandits. They have burned some manuscripts and also stole a lot of manuscripts which they took with them," he said.

Marie Rodet, an African history lecturer at Britain's School of Oriental and African Studies, said Timbuktu held one of the greatest libraries of Islamic manuscripts in the world.

"It's pure retaliation. They (the Islamist militant rebels) knew they were losing the battle and they hit where it really hurts," Rodet told Reuters. "These people are not interested in any intellectual debate. They are anti-intellectual."

ISLAMISTS "ALL FLED"

The Ahmed Baba Institute, one of several libraries and collections in Timbuktu containing fragile documents dating back to the 13th century, is named after a Timbuktu-born contemporary of William Shakespeare and houses more than 20,000 scholarly manuscripts. Some were stored in underground vaults.

The French and Malians have encountered no resistance so far in Timbuktu. But they will now have to comb through a labyrinth of ancient mosques, monuments, mud-brick homes and narrow alleyways to flush out any hiding fighters.

The Islamist forces comprise a loose alliance that groups Al Qaeda in the Islamic Maghreb (AQIM) with Malian Islamist group Ansar Dine and AQIM splinter MUJWA.

They have retreated in the face of relentless French air strikes and superior firepower and are believed to be sheltering in the rugged Adrar des Ifoghas mountain range, north of Kidal.

The MNLA Tuareg rebels who say they now hold Kidal have offered to help the French-led offensive against the al Qaeda-affiliated Islamists. It was not clear, however, whether the French and Malians would steer their offensive further towards Kidal, or hold negotiations with the MNLA.

FRANCE: MALI "BEING LIBERATED"

The world was shocked by Timbuktu's capture in April by Tuareg fighters, whose separatist rebellion was later hijacked by Islamist radicals who imposed severe sharia (Islamic law).

Provoking international outrage, the Muslim militants - who follow a more radical Salafist brand of Islam - destroyed dozens of ancient shrines in Timbuktu sacred to Sufi Muslims, condemning them as idolatrous and un-Islamic.

They also imposed a strict form of Islamic law, or sharia, authorizing the stoning of adulterers and amputations for thieves, while forcing women to go veiled.

On Sunday, many women among the thousands of Gao residents who came out to celebrate the rebels' expulsion made a point of going unveiled. Other residents smoked cigarettes and played music to flout the bans previously imposed by the rebels.

Hundreds of troops from Niger and Chad have been brought to Gao to help secure the town.

"Little by little, Mali is being liberated," French Foreign Minister Laurent Fabius told France 2 television.

Speaking at a news conference in Paris, French President Francois Hollande said French troops would take a step back once the job of retaking key towns was complete, and Malian and other African troops would take over the task of hunting the rebels.

"They are the ones who will go into the northern part, which we know is the most difficult because that's where the terrorists are hiding," Hollande said.

As the French and Malian troops thrust into northern Mali, African troops for a U.N.-backed continental intervention force for Mali, expected to number 7,700, are being flown into the country, despite severe delays and logistical problems.

Outgoing African Union Chairman President Thomas Boni Yayi of Benin scolded AU states at a weekend summit in Addis Ababa for their slow response to assist Mali while former colonial power France took the lead in the military operation.

Burkina Faso, Benin, Nigeria, Senegal, Togo, Niger and Chad are providing soldiers for the AFISMA force. Burundi and other nations have pledged to contribute.

AU Peace and Security Commissioner Ramtane Lamamra said these regional troops could play a useful "clean-up" role once the main military operations against the Islamist rebels end.

Speaking in Addis Ababa on Monday, U.N. Secretary-General Ban Ki-moon said the U.N. was "actively considering" helping the troop-contributing African countries with logistical support.

(Additional reporting by Richard Valdmanis in Sevare, Mali, Bate Felix and David Lewis in Dakar, Maria Golovina in London, Alexandria Sage, Vicky Buffery and Emmanuel Jarry in Paris, Tiemoko Diallo in Bamako, Abdoulaye Massalatchi in Niamey, Richard Lough and Aaron Masho in Addis Ababa; Writing by Pascal Fletcher; Editing by Andrew Heavens)

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