Disney joins JAKKS, LA billionaire to bring toys to life

LOS ANGELES (Reuters) – Walt Disney toys are sold around the world. Now, children can find them in the cloud as well.

The media giant is teaming up with toy company JAKKS Pacific and Patrick Soon-Shiong, Los Angeles’ wealthiest person, on a new line of toys – with a nifty technological twist designed to link the goodies that kids lug home from the store with Disney’s stable of well-known animated characters.

“DreamPlay“, developed by Soon-Shiong’s NantWorks company, and JAKKS works via an app that can be downloaded on Apple Inc devices like the iPad, or smartphones and tablets running Google Inc Android software. When a device’s camera is trained on any toy specifically designed to work with DreamPlay, it triggers one of thousands of preset animations that appear on the device’s screen and seem to be unfolding in the real world.

With viewers’ eyes locked on the tablet or smartphone screen, fairies appear to glide in and out of buildings, animated critters start playing musical instruments, mythical characters prance on a toy piano’s keyboard.

Disney, which licensed its characters to DreamPlay, and its partners hope that children will take to the new approach, which is intended to extend and expand the life of the toy. But it remains to be seen if the concept will prove to be more than a novelty, and be able to arrest a child’s infamously short attention span.

The three will demo their concept on Tuesday at the Consumer Electronics Show in Las Vegas, but Reuters got a sneak peak at the technology on Monday.

In a showroom in the 20th floor of a Santa Monica, Calif. building, visitors to JAKKS’ demonstration are treated to an animated version of Sebastian – the red Jamaican crab from Disney’s “Little Mermaid” movie – who pops up onscreen on an iPad seconds after the tablet’s camera is trained on a real-life set of toy bongo drums.

The animated crab pounces on the drums and proceeds to bang out a calypso song onscreen, with both Sebastian and the physical drum set appearing together as if the two shared the same cartoon.

REAL, VIRTUAL INTERACTION

DreamPlay allows not just Sebastian, but also Tinker Bell and a host of other well-loved Disney characters to “interact” virtually with specially made toys via image-recognition software. The software was developed by Soon-Shiong, a former cancer surgeon who created drugs to fight diabetes and breast cancer and then sold the companies that produced them for $ 8.6 billion.

Soon-Shiong teamed with JAKKS, a $ 678 million-a-year toy maker and licensee of toys based on the Princess line of dolls, Marvel action figures and other Disney toys, among others.

The technology works via the “cloud” – images and video clips stored on remote servers that are streamed to kids’ mobiles when the app recognizes a particular item.

“It’s a tremendous way to combine great technology and Disney’s magical story telling to extend the time a child can play with a toy,” said Bob Chapek, president of Disney’s consumer products unit. “Kids find out that playing with their toy doesn’t end when they get it home.”

Since taking over in 2011, Chapek has repositioned Disney’s consumer product unit to expand its use of technology with its toys. DreamPlay is the first of what Chapek says are other products that will twin technology with familiar Disney toys, although he won’t name them.

Down the road, Disney may explore new business models, including selling subscriptions to content created specifically to be used with a particular toy, said Chapek.

The market is hardly certain for a product that requires a child to hold up a phone or tablet, and peer through it to play with a toy that’s stationary. Will children want to see Rapunzel endlessly dancing on the keys of a piano or Rosetta, a fairy from Disney’s “Tinker Bell” movies, fly in and out of a cottage?

“The technology may be great, but no one has proven to me yet that a kid will sit in front of an iPhone or iPad instead of playing with a toy that’s right in front of him,” said Sean McGowan, a toy analyst with Needham & Co who downgraded JAKKS to hold in September along with other toy companies, and then downgraded JAKKS to underperform in October.

JAKKS intends to begin selling DreamPlay versions of toys from the Disney Princess line in October. It will then expand its offerings next year, with international sales starting in 2014, said Stephen Berman, JAKKS President and CEO.

DreamPlay toys will be “a couple of dollars” costlier than the regular version, he says.

Target stores and Toys R Us are among the U.S. retailers who will carry the DreamPlay line, Berman says. Top-Toy, the giant Nordic retailer, has also signed on, while Beijing Hualian Group, which operates supermarkets and department stores across China, is coming onboard as well.

“Kids don’t own iPhones or iPads but they all know how to use them,” says Berman. “Kids have so much more imagination than we do. Imagine recording a bunch of the videos and giving the kid an iPad to play with them on a trip to see the grandparents.”

JAKKS will ramp up marketing for the DreamPlay line, said Berman. DreamPlay toys will be prominently displayed at all the partner-retailers, he added, and shoppers will be encouraged to use their smartphones to view them.

Those that aim smartphones at a boxed Tinker Bell, for instance, may get a start as the fairy from “Peter Pan” literally soars out of the box, leaving an empty package behind.

“Technology can help people live better, work better, play better,” said Soon-Shiong as he showed off the line of toys. “This is the way they will play better.”

(Reporting By Ronald Grover; Edited By Edwin Chan)

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'Bama bashes Notre Dame 42-14 in BCS title game

MIAMI GARDENS, Fla. (AP) — Barely taking time to celebrate their latest national championship, Nick Saban and the Alabama Crimson Tide are ready to get back to work.

That's how they make it look so easy.

In what must be an increasingly frustrating scene for the rest of college football, another season ended with Saban and his players frolicking in the middle of a confetti-strewn field. Eddie Lacy ran all over Notre Dame, AJ McCarron turned in another dazzling performance through the air, and the Tide defense shut down the Fighting Irish until it was no longer in doubt.

The result was a 42-14 blowout in the BCS title game Monday night, not only making Alabama a back-to-back champion, but a full-fledged dynasty with three crowns in four years.

This one was especially satisfying to Saban.

"People talk about how the most difficult thing is to win your first championship," he said. "Really, the most difficult one to win is the next one, because there's always a feeling of entitlement."

Rest assured, that feeling won't last long in Tuscaloosa.

While Saban insisted he was "happy as hell" and "has never been prouder of a group of young men," it was hard to tell. He was already talking about reporting to the office Wednesday morning and getting started on next season.

"One of these days, when I'm sitting on the side of the hill watching the stream go by, I'll probably figure it out even more," Saban said. "But what about next year's team? You've got to think about that, too."

So, in short order, he'll be talking with underclassmen about entering the NFL draft, making sure everyone goes back to class on schedule, and getting started on that next depth chart.

"The Process," as he calls it, never stops.

"We're going to enjoy it for 24 hours or so," Saban said.

No. 2 Alabama quieted the top-ranked Irish on the very first drive — so much for waking up the echoes — and could've started the celebration at halftime, heading to the locker room with a commanding 28-0 lead.

The Tide (13-1) pushed it out to 35-0 midway through the third quarter on the third of McCarron's four touchdown passes, a 34-yarder to Amari Cooper with a defender nowhere in sight.

At that point, Alabama was on a 69-0 blitz in national title games, having scored the last 13 points in its 2010 triumph over Texas and blanked LSU 21-0 for last year's BCS crown.

When Everett Golson finally scored for Notre Dame (12-1) with about 4 minutes remaining in the third, it snapped a scoreless stretch of nearly two full games — 108 minutes and 7 seconds — by the Tide.

"It was just a complete game by the offense, defense and special teams," said Alabama linebacker C.J. Mosley, the defensive MVP with eight tackles, one of them behind the line.

Despite the dazzling numbers by McCarron — 20 of 28 for 264 yards — he was denied a second straight offensive MVP award in the title game. That went to Lacy, who finished with 140 yards rushing on 20 carries and scored two TDs. Not a bad finish for the junior, who surely helped his status in the NFL draft should he decide to turn pro.

Lacy also was MVP of the Southeastern Conference championship game, rushing for a career-best 181 yards in the thrilling victory over Georgia that gave Alabama a chance to repeat as champion.

The Tide will have some big holes to fill, no matter who decides to leave school early, with offensive tackle D.J. Fluker and cornerback Dee Milliner also pondering their draft prospects. There's not a lot of seniors on the roster, but All-America linemen Barrett Jones and Chance Warmack and safety Robert Lester are among those who definitely won't be back.

But Alabama had some huge holes to fill a year ago, too, with five players drafted in the first 35 picks.

That worked out just fine.

The Crimson Tide wrapped up its ninth Associated Press national title, breaking a tie with Notre Dame for the most by any school and gaining a measure of redemption for a bitter loss to the Irish almost four decades ago: the epic 1973 Sugar Bowl in which Ara Parseghian's team edged Bear Bryant's powerhouse 24-23.

"The process is ongoing," said Saban, tightlipped as ever and showing little emotion after the fourth BCS national title of his coaching career. "We have a 24-hour rule around here. We enjoy everything for 24 hours."

Notre Dame went from unranked in the preseason to the top spot in the rankings by the end of the regular season, winning two games in overtime and three other times by seven points or less.

But the long wait for a championship — the Irish haven't finished No. 1 since 1988 — will have to wait at least one more year.

"They just did what Alabama does," moaned Manti Te'o, Notre Dame's star linebacker and Heisman Trophy finalist, trying to digest an embarrassing loss in his final college game.

Golson will be back.

He completed his first season as the starter by going 21 of 36 for 270 yards, with a touchdown and an interception. But the young quarterback got no help from the running game, which was held to 32 yards — 170 below its season average.

"We've got to get physically stronger, continue close the gap there," said Brian Kelly, the Irish's third-year coach. "Just overall, we need to see what it looks like. Our guys clearly know what it looks like now — a championship football team. That's back-to-back national champions. That's what it looks like. That's what you measure yourself against there. It's pretty clear across the board what we have to do."

Kelly vowed this was only beginning, insisting the bar has been raised in South Bend no matter what the outcome.

"We made incredible strides to get to this point," he said. "Now it's pretty clear what we've got to do to get over the top."

Alabama is already there but still longing for more, not content even after the second-biggest rout of the BCS era that began in 1999. The only title game that was more of a blowout was USC's 55-19 victory over Oklahoma in the 2005 Orange Bowl, a title that was later vacated because of NCAA violations.

You could almost hear television sets around the country flipping to other channels as Alabama poured it on, a hugely anticipated matchup between two of the nation's most storied programs reduced to a laugher when the Tide scored on its first three possessions.

"We're going for it next year again," said offensive tackle Cyrus Kouandijo, only a sophomore and already the owner of two rings. "And again. And again. And again. I love to win. That's why I came here."

___

Follow Paul Newberry on Twitter at www.twitter.com/pnewberry1963

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Oil Sand Industry in Canada Tied to Higher Carcinogen Level

Todd Korol/Reuters

An oil sands mine Fort McMurray, Alberta.

OTTAWA — The development of Alberta’s oil sands has increased levels of cancer-causing compounds in surrounding lakes well beyond natural levels, Canadian researchers reported in a study released on Monday. And they said the contamination covered a wider area than had previously been believed.

For the study, financed by the Canadian government, the researchers set out to develop a historical record of the contamination, analyzing sediment dating back about 50 years from six small and shallow lakes north of Fort McMurray, Alberta, the center of the oil sands industry. Layers of the sediment were tested for deposits of polycyclic aromatic hydrocarbons, or PAHs, groups of chemicals associated with oil that in many cases have been found to cause cancer in humans after long-term exposure.

“One of the biggest challenges is that we lacked long-term data,” said John P. Smol, the paper’s lead author and a professor of biology at Queen’s University in Kingston, Ontario. “So some in industry have been saying that the pollution in the tar sands is natural, it’s always been there.”

The researchers found that to the contrary, the levels of those deposits have been steadily rising since large-scale oil sands production began in 1978.

Samples from one test site, the paper said, now show 2.5 to 23 times more PAHs in current sediment than in layers dating back to around 1960.

“We’re not saying these are poisonous ponds,” Professor Smol said. “But it’s going to get worse. It’s not too late but the trend is not looking good.” He said that the wilderness lakes studied by the group were now contaminated as much as lakes in urban centers.

The study is likely to provide further ammunition to critics of the industry, who already contend that oil extracted from Canada’s oil sands poses environmental hazards like toxic sludge ponds, greenhouse gas emissions and the destruction of boreal forests.

Battles are also under way over the proposed construction of the Keystone XL pipeline, which would move the oil down through the western United States and down to refineries along the Gulf Coast, or an alternative pipeline that would transport the oil from landlocked Alberta to British Columbia for export to Asia.

The researchers, who included scientists at Environment Canada’s aquatic contaminants research division, chose to test for PAHs because they had been the subject of earlier studies, including one published in 2009 that analyzed the distribution of the chemicals in snowfall north of Fort McMurray. That research drew criticism from the government of Alberta and others for failing to provide a historical baseline.

“Now we have the smoking gun,” Professor Smol said.

He said he was not surprised that the analysis found a rise in PAH deposits after the industrial development of the oil sands, “but we needed the data.” He said he had not entirely expected, however, to observe the effect at the most remote test site, a lake that is about 50 miles to the north.

Asked about the study, Adam Sweet, a spokesman for Peter Kent, Canada’s environment minister, emphasized in an e-mail that with the exception of one lake very close to the oil sands, the levels of contaminants measured by the researchers “did not exceed Canadian guidelines and were low compared to urban areas.”

He added that an environmental monitoring program for the region announced last February 2012 was put into effect “to address the very concerns raised by such studies” and to “provide an improved understanding of the long-term cumulative effects of oil sands development.”

Earlier research has suggested several different ways that the chemicals could spread. Most oil sand production involve large-scale open-pit mining. The chemicals may become wind-borne when giant excavators dig them up and then deposit them into 400-ton dump trucks.

Upgraders at some oil sands projects that separate the oil bitumen from its surrounding sand are believed to emit PAHs. And some scientists believe that vast ponds holding wastewater from that upgrading and from other oil sand processes may be leaking PAHs and other chemicals into downstream bodies of water.

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Euro Watch: Unemployment Continues to Climb in Euro Zone

PARIS — Unemployment in the euro zone rose to a new record in November, according to data released Tuesday that also showed that the troubles in the 17-nation currency zone are straining its strongest member, Germany.

The euro zone jobless rate rose to a new high of 11.8 percent in November from 11.7 percent in October, Eurostat, the statistical agency of the European Union, reported from Luxembourg. Eurostat estimates that about 18.8 million in the euro zone were unemployed in November – 2 million more than a year earlier.

Germany has provided necessary momentum to Europe’s overall economy throughout the past three years, proving resilient to the crisis plaguing the common currency, largely due to the strength of its exports.

But on Tuesday, the Federal Statistics Office in Berlin said that German imports slid 3.7 percent in November, while exports dropped 3.4 percent, resulting in a narrowing of Germany’s trade surplus to €14.6 billion, or $19 billion.

German factory orders also fell in November amid weak demand from outside the euro area, the Economy Ministry in Berlin said Tuesday. Orders, adjusted for seasonal swings and inflation, dropped 1.8 percent from October, when they jumped a revised 3.8 percent.

“The November numbers are not a one-off but an extension of the current trend of weakening exports,” Carsten Brzeski, an economist at ING, wrote in a research note on Tuesday in which he pointed out an overall decline in German exports of about 4 percent since last May.

“Today’s data confirmed our view that exports should have turned from driver of growth into drag on growth,” he wrote.

A separate report from Eurostat showed retail sales fell 2.6 percent in November from a year earlier, though they managed a 0.1 percent gain from October.

The latest dire reports come as the governing council of the European Central Bank prepares to hold a policy meeting Thursday, followed by an interest-rate announcement. Despite a sharp dip in bank lending reported last week that has some analysts suggesting the central bank might try new steps to stimulate the economy, economists surveyed by Reuters expect the E.C.B. to leave policy unchanged this month, as it waits for a clearer picture of this year’s economic situation to emerge.

Like their counterparts in the United States, Japan and Britain, the euro zone monetary authorities have already opened the spigots, allowing banks to borrow essentially as much as they want at the benchmark rate. Mario Draghi, the E.C.B. governor, has pledged to do whatever is necessary to ensure the stability of the euro, including, if necessary, buying the sovereign bonds of Spain and Italy to hold their borrowing costs to sustainable levels.

The central bank's action has succeeded in calming markets and driving down government bond yields for embattled countries. The European Commission reported Tuesday that an index of economic sentiment in the euro zone had improved in December by 1.3 points, to 87.0 “Economic sentiment in the euro area improved among consumers and across all sectors, except retail trade,” the commission reported.

Europe also got a vote of confidence from Tokyo on Tuesday, as Finance Minister Taro Aso said Japan would buy bonds of the European Stability Mechanism, the euro zone bailout fund, as well as euro sovereign debt.

“The financial stability of Europe will help the stability of foreign exchange rates, including the yen,” Mr. Aso was quoted by the Nikkei newspaper as saying.

Attacking joblessness may require governments to ease back on austerity measures that many economists, including some at the International Monetary Fund, say might have gone too far. In France, President François Hollande has vowed to turn around the flagging labor market in France, where, according to Eurostat, unemployment as 10.5 percent in November.

Eurostat said Spain, suffering from the collapse of a property bubble and struggling to cope with tough austerity measures, had the highest unemployment rate, at 26.6 percent. Greece, the beleaguered country where the sovereign debt crisis began, was next at 26.0 percent, according to September data. Austria, at 4.5 percent, tiny Luxembourg, at 5.1 percent, and Germany, at 5.4 percent, were the lowest.

Worryingly, youth unemployment continues to grow, with 5.8 million people under 25 classified as jobless in November, up 420,000 from a year earlier.

In Berlin for talks with Chancellor Angela Merkel on Tuesday, the Greek prime minister, Antonis Samaras, singled out youth unemployment as one of the largest challenges Greece faces in trying to revive its economy. But he told reporters before meeting the chancellor that his overall message was one of optimism.

“I see the glass half-full,” Mr. Samaras said before taking part in an economic conference held behind closed doors in the German capital. “We’re delivering and Europe’s helping.”

It was the Greek prime minister’s second trip to Berlin since taking office and although the mood appeared lighter than during his inaugural visit in August, which came on the heels of calls from within Ms. Merkel’s government for Greece to leave the common currency, his country still faces enormous challenges.

Greece is focusing its efforts on winning back the trust of Europeans, as well as the markets, Mr. Samaras said. But he stressed that the high unemployment, especially among young people, was weighing heavily on Greeks.

“I would like to make it clear up front that our country is making enormous efforts and many are paying a high price, in order to get things back on track,” Mr. Samaras said.

Ms. Merkel stressed that Greece’s European partners must not leave it alone with its troubles, perhaps wary of the fragility of Mr. Samaras’ three-party coalition government which has been forced to push through deeply unpopular, painful reforms.

“We also must do everything to guarantee economic growth, security and jobs,” Ms. Merkel said.

David Jolly reported from Paris. James Kanter in Brussels and Niki Kitsantonis in Athens contributed reporting.

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Supporters Back Strike at Newspaper in China

James Pomfret/Reuters

Demonstrators gathered outside the headquarters of Southern Weekly newspaper Monday in Guangzhou, China.

BEIJING — Hundreds of people gathered outside the headquarters of a newspaper office in southern China on Monday to show their support for journalists who had declared a strike to protest what they called overbearing censorship by provincial propaganda officials.

The journalists, who work for Southern Weekend, a relatively liberal newspaper that has come under increasing pressure from officials in recent years, also received support on the Internet from celebrities and well-known commentators.

“Hoping for a spring in this harsh winter,” Li Bingbing, an actress, said to her 19 million followers on a microblog account. Yao Chen, an actress with more than 31 million followers, cited a quotation by Aleksandr Solzhenitsyn, the Russian Nobel laureate and dissident: “One word of truth outweighs the whole world.”

Many of the people who showed up Monday at the newspaper offices in Guangzhou, the capital of Guangdong Province, carried banners with slogans and white and yellow chrysanthemums, a flower that symbolizes mourning. One banner read: “Get rid of censorship. The Chinese people want freedom.” Police officers watched the protesters without immediately taking any harsh actions.

The angry journalists at Southern Weekend have been calling for the removal of Tuo Zhen, the top propaganda official in Guangdong, whom the journalists blame for overseeing a change in a New Year’s editorial that ran last week and was supposed to have called for greater respect for rights enshrined in the constitution under the headline “China’s Dream, the Dream of Constitutionalism,” according to the China Media Project at the University of Hong Kong. The editorial went through layers of changes and ultimately became one praising the current political system, in which the Communist Party exercises authority over all aspects of governance.

A well-known entrepreneur, Hung Huang, said on her microblog that the actions of a local official had “destroyed, overnight, all the credibility the country’s top leadership had labored to re-establish since the 18th Party Congress,” the November gathering in Beijing that was the climax of the leadership transition.

One journalist for Southern Weekend said Monday afternoon that negotiations between the various parties had been scheduled later in the day, but there were no results from any talks as of Monday evening.

It was unclear how many employees in the newsroom had heeded the calls for a strike. It appeared Sunday that many of Southern Weekend’s reporters had declared themselves on strike. A local journalist who went by the newspaper’s Beijing office on Monday said the building appeared to be open but quiet. One employee told the journalist that the people there were not on strike. Dozens of supporters showed up outside the building at various times, some carrying signs and flowers.

The conflict was exacerbated Sunday night by top editors at the newspaper, who posted a message on the publication’s official microblog saying that the New Year’s editorial had been written with the consent of editors at the newspaper.

According to an account from a newspaper employee posted online on Monday, that statement was made after pressure was exerted on the top editors by Yang Jian, the head of the party committee at Southern Media, the parent company that runs Southern Weekend and other publications. Southern Weekend’s editor in chief, Huang Can, then pressured an employee to give up the official microblog password so the statement could be posted on the microblog.

Neither Mr. Yang nor Mr. Huang could be reached for comment Monday.

Some political analysts have said the conflict raises questions about whether the central government, led by Xi Jinping, the new party chief, will support the idea of a more open media by moving to support the protesting journalists. In his first trip outside Beijing, Mr. Xi traveled to Guangdong and praised the market-oriented economic policies put in place by Deng Xiaoping, the former supreme leader. But more recently, Mr. Xi has said that China must respect its socialist roots.

Resolving the Southern Weekend tensions could also be a test for Hu Chunhua, the new party chief in Guangdong and a potential candidate to succeed Mr. Xi as the leader of China in a decade. Mr. Hu’s predecessor, Wang Yang, was regarded by many Western political analysts as being a “reformer,” but he presided over a tightening of media freedoms in the province and specifically over Southern Media.

On Monday, People’s Daily, the party’s mouthpiece, ran a signed commentary that referred to a recent meeting of propaganda officials in Beijing and said propaganda officials should “follow the rhythm of the times” and help the authorities establish a “pragmatic and open-minded image.” Some people have interpreted that as support for officials in adopting a more enlightened approach in dealing with the news media.

But Global Times, a populist newspaper, ran a scathing editorial that said Southern Weekend was merely a newspaper and should not challenge the system.

“Even in the West, mainstream media would not choose to openly pick a fight with the government,” the editorial said. Xinhua, the state news agency, published the editorial online.

Jonathan Ansfield contributed reporting. Mia Li and Shi Da and contributed research.

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Kuwaiti journalist jailed for Twitter ‘insults’

KUWAIT CITY (AP) — A Kuwait newspaper says an online journalist has been sentenced to two years in prison for posts deemed “insulting” to the Gulf nation’s ruler — the second such ruling this week.

The decision reflects a widening social media crackdown across the Gulf Arab states to quell perceived political dissent.

Kuwait’s pro-government Al Watan newspaper reported Monday that Ayyad al-Harbi, a journalist at news website Sabr, was charged with posting Twitter messages considered offensive to the nation’s Western-allied emir. No other details were given.

Kuwait, which hosts thousands of U.S. troops, has been gripped by months of political unrest led by anti-government groups, including Islamist factions.

On Sunday, Kuwaiti media said a social media activist also has received a two-year prison term for Twitter posts that allegedly insulted the emir.

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Here come the big boys

Here come the big boys.

The NFL's wild-card weekend is over, with nary an upset. Moving on are division winners Green Bay, Houston and Baltimore, along with NFC West runner-up Seattle and the only rookie quarterback still standing: Russell Wilson.

Ahead are some daunting challenges as the Ravens visit Denver, the Texans go to New England, the Packers head to San Francisco and the Seahawks journey to Atlanta.

Only the Seahawks-Falcons isn't a rematch.

Seattle isn't intimidated one bit about facing the NFC's top seed.

"Despite the fact that we have a 'nobody' team," Seattle cornerback Richard Sherman said after Sunday's convincing 24-14 comeback win at Washington, "a team not full of first-rounders and things like that, we have a lot of guys that play at a high level."

Of course, so do the Falcons (13-3), Broncos (13-3), Patriots (12-4) and 49ers (11-4-1).

"They have a great coach and a great quarterback and they have great role players on their team," Texans running back Arian Foster said of the Patriots, who routed Houston 42-14 last month. "I have a lot of respect for them, but we can play ball, too."

The Texans beat Cincinnati 19-13 on Saturday, then Green Bay took out Minnesota 24-10. In Sunday's other game, Baltimore eliminated Indianapolis 24-9.

The playoffs continue next Saturday with Baltimore (11-6) at Denver, followed by Green Bay (12-5) at San Francisco. The Broncos beat the Ravens 34-17 three weeks ago, while the 49ers knocked off the Packers 30-22 in the season opener.

On Sunday, it's Seattle (12-5) at Atlanta, followed by Houston (13-4) visiting New England.

___

Ravens at Broncos

Not only is Baltimore thrilled to keep playing and keep star linebacker Ray Lewis' career going, but the Ravens got the opponent they sought for the divisional round.

"I wanted Denver," said Anquan Boldin, who set a franchise record with 145 yards receiving, including the clinching touchdown against Indianapolis (11-6). "Because they beat us. We'll make it different."

Lewis made 13 tackles in his first game back in nearly three months. He ended his last home game in Baltimore before his impending retirement by lining up at fullback for the final kneel-down. Then Lewis went into a short version of his trademark dance before being mobbed by teammates. He followed with a victory lap, his right triceps, covered by a brace, held high in salute to the fans.

Joe Flacco became the first quarterback to win a postseason game in each of his first five seasons and John Harbaugh is the first coach to do so.

"I love our team," Lewis said, "and I'm really looking forward to going out there and playing them next week."

The loss ended the Colts' turnaround season in which they went from 2-14 to the playoffs in coach Chuck Pagano's first year in Indianapolis. Pagano missed 12 weeks while undergoing treatment for leukemia and returned last week.

Andrew Luck completed 28 of 54 passes, the most attempts by a rookie in a playoff game, for 288 yards.

Packers at 49ers

It's been a long time since these teams met on kickoff weekend, and much has changed.

Green Bay has become a bit more balanced on offense and somewhat stingier on defense than it was back in September. San Francisco has second-year quarterback Colin Kaepernick instead of Alex Smith, and receiver Michael Crabtree finally has developed into a threat.

The Packers held league rushing king Adrian Peterson to 99 yards in beating the Vikings (10-7), 100 yards less than he got on them the previous week.

"I don't think we had our identity at that point," QB Aaron Rodgers said of the Packers team San Francisco beat. "We were trying a lot of different things."

Seahawks at Falcons

Atlanta has flopped in its last three playoff games, including losing at home to Green Bay two years ago in a similar scenario.

Seattle won't bring as high-powered an offense as the Packers did to Atlanta, but it's versatile enough with the creative Wilson, bulldozing halfback Marshawn Lynch and a deep group of receivers.

The most significant challenge for the Falcons, though, will be a defense that completely shut down the Redskins and a hobbling Robert Griffin III for the final three quarters of their wild-card game.

Washington (10-7) had 129 yards in the first quarter and 74 for the rest of the game.

"Seventy yards in 3½ quarters is ridiculously good defense," coach Pete Carroll said after his Seahawks won their sixth straight and snapped Washington's seven-game winning streak.

Texans at Patriots

Both teams say the Monday night romp by New England on Dec. 10 is not an indicator of what's ahead. For their sake, the Texans better hope that is true.

"We didn't play our best football up there and we hurt ourselves with penalties and mistakes," said Foster, who rushed for 140 yards and a TD against the Bengals (10-7). "Anytime you give (the Patriots) opportunities, they'll take advantage of them. But we'll play our best up there."

They have no choice, and Patriots coach Bill Belichick fully expects a tighter game.

"When you play a team twice during the season, the games are totally different. They never go the same way," Belichick said. "We'll be able to certainly look at some of the matchups individually, guys that faced each (other) in the game. As far as plays and calls and things like that matching up, I'm sure they'll have some new wrinkles. I'm sure we'll have some, too. It will be totally different."

___

Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

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Tehran Is Choked by Annual Buildup of Air Pollution

TEHRAN — Already battered by international threats against their nation’s nuclear program, sanctions and a broken economy, Iranians living here in the capital are now trying to cope with what has become an annual pollution peril: a yellowish haze that engulfs Tehran this time of year.

For nearly a week, officials here and in other large cities have been calling on residents to remain indoors or avoid downtown areas, saying that with air pollution at such high levels, venturing outside could be tantamount to “suicide,” state radio reported Saturday.

On Sunday, government offices, schools, universities and banks reopened after the government had ordered them to shut down for five days to help ease the chronic pollution. Tehran’s normally bustling streets were largely deserted.

Residents who dare to go outside cover their mouths and noses with scarves or surgical masks, but their eyes tear up and their throats sting from the mist of pollutants, which a report by the municipality of Tehran says is made up of a mixture of particles containing lead, sulfur dioxins and benzene.

“It feels as if even God has turned against us,” Azadeh, a 32-year-old artist, said on a recent day as she looked out a window in her apartment that often offers a clear view of Tehran, a sprawling city that is home to millions. But on this day, Azadeh, who did not want her full name used, saw only the blurred outlines of high-rise buildings and the Milad communications tower in the distance. The setting sun was reduced to a yellowish coin by the thick blanket of smog.

The haze of pollution occurs every year when cold air and windless days trap fumes belched out by millions of cars and hundreds of old factories between the peaks of the majestic Alborz mountain range, which embraces Tehran like a crescent moon.

Iran is prominently represented in the World Health Organization’s 2011 report on air quality and health, with three of its provincial towns among the organization’s list of the world’s 10 most-polluted cities. According to the report, Tehran has roughly four times as many polluting particles per cubic meter as Los Angeles. Many cities known for their poor air quality, like Mexico City, Shanghai and Bangkok, are cleaner than Tehran.

But since 2010, when American sanctions on Iranian imports of refined gasoline began to bite, the situation has grown worse, according to the report by the municipality of Tehran.

Faced with possible fuel shortages, Iran surprised outsiders by quickly making up for the loss of imports by producing its own brew of gasoline. While the emergency fuel kept vehicles running, local experts warned that it was creating much more pollution.

A recently released report by Tehran’s department of air quality control contained blank spaces where there should have been information about levels of benzene and lead — components of gasoline — in the capital’s air. But the report did state that while Tehran experienced more than 300 “healthy days” in 2009, in 2011 there were fewer than 150.

Iran’s Health Ministry has reported a rise in respiratory and heart diseases, as well as an increase in a variety of cancers that it says are related to pollution.

The state newspaper Resalat on Saturday called the pollution a continuing crisis, and it urged the authorities to act. “Why is it that when the winds pick up, this problem is again quickly forgotten?” an editorial asked. Another newspaper, Donya-e-Eqtesad, which is critical of the government, pressed for an improvement in gasoline standards.

The pollution caused by the use of the emergency fuel concoction has been a taboo subject here, as officials try to portray each measure to counter the economic sanctions as a success that should not to be criticized by the local news media.

On state television, several officials have denied that the yellow haze has anything to do with the locally produced gasoline.

In an interview on Saturday, Ali Mohammad Sha’eri, the deputy director of Iran’s Environmental Protection Organization, strongly denied that the pollution was linked to gasoline. However, he said that only 20 percent of the emergency fuel was up to modern standards. “Hopefully in three months that level will be 50 percent,” he said.

Meanwhile, the government has imposed strict traffic regulations in Tehran, Isfahan and other major population centers. An odd-even traffic-control plan based on the last digit of vehicle license plates keeps about half of the approximately three and a half million cars in Tehran off the streets on a daily basis.

Other plans to combat the pollution have been less realistic, analysts say. President Mahmoud Ahmadinejad has long advocated a plan to move civil servants from Tehran to reduce overpopulation in the capital. In 2010, the governor of Tehran Province ordered crop-dusters to dump water on the smog in an effort to dissipate it. There have also been plans for placing air purifiers in the city, but experts say they will not work in open spaces.

For those living in Tehran and unable to leave town for a vacation home on the Caspian Sea, waiting for the winds to pick up seems to be the only option.

“My head hurts, and I’m constantly dead tired,” said Niloufar Mohammadi, a university student. “I try not to go out, but I can smell the pollution in my room as I am trying to study.”

Azadeh, the artist, said the pollution forced her to stay indoors, adding to her sense of isolation. Step by step her world was being curtailed, she said. The Western sanctions imposed on Iran make her feel like a pariah, she explained. The government’s mismanagement of the economy and the resulting inflation have left her with little purchasing power, she said; she has stopped shopping for everything but essential items. And last week, security officers removed her illegal satellite dish from her roof.

“The pollution is the last straw for me,” she said. “We should wait helpless for winds to pick up and clean the air before we can safely leave our houses. It shows we have lost all power to control our lives.”

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DealBook: After Madoff, Financial Fraud Defies Policing

LOS ANGELES — To Philip Horn, the Braemar Country Club was not just a golf course, it was an extension of his office. Most weeks, Mr. Horn, a financial adviser at Wells Fargo, chatted up potential clients between holes at the upscale club set against the backdrop of the Santa Monica Mountains.

“I always thought, ‘This is a great guy and a straight shooter,’ ” said Barry Zelner, one of several country club members who invested with Mr. Horn.

Now, those same clients are wondering what went wrong.

After Wells Fargo alerted him to account discrepancies, Mr. Zelner, a corporate lawyer, said he stormed onto the club’s rolling greens in April, accusing the broker of theft. “Tell them what you did, Phil,” the lawyer bellowed among a crowd of members.

A few months later, Mr. Horn pleaded guilty to defrauding more than a dozen clients and Wells Fargo.

While Mr. Horn is a relatively minor player in the pantheon of financial fraud, his actions highlight the persistent problems with policing the industry, even after the wave of rules enacted since the collapse of Bernard L. Madoff’s giant Ponzi scheme in 2008.

And the challenge of oversight is not becoming any easier, with the ranks of financial advisers swelling. As new regulations crimp profits, big banks like Wells Fargo are ramping up their brokerage businesses in an effort to make up for lost revenue.

Amid the renewed focus, banks have spent millions of dollars to beef up their compliance systems and improve their oversight. Regulators, too, have bolstered their efforts, increasing enforcement and adopting new measures.

Every month, the Financial Industry Regulatory Authority, a Wall Street watchdog, penalizes more than 100 brokers for various actions, including unauthorized trading and fraudulent activities, as well as smaller violations.

“Theft, Ponzi schemes and other financial scams continue to happen at an alarming rate,” said Thomas Ajamie, a plaintiff’s lawyer who represents two of Mr. Horn’s clients.

For more than two years, Mr. Horn systematically executed and canceled trades in clients’ portfolios, pocketing the profits. To avoid detection, he limited his paper trail and made it appear that the trades originated in his own account, according to court documents.

“It’s simply unbelievable to me that this kind of fraud could happen for so long without Wells Fargo doing anything about it,” Mr. Zelner said. After meeting Mr. Horn on the golf course, Derek Brown invested more than $10 million with him in 2006, assured by the Wells Fargo name on his business card. “This wasn’t just Schlepper & Schlepper,” Mr. Brown, a retired pharmaceutical executive, said.

A Wells Fargo spokeswoman, Raschelle Burton, said the bank discovered the problems with Mr. Horn in October 2011 and immediately alerted law enforcement agencies. Wells Fargo also fired Mr. Horn. Mr. Horn is set to be sentenced on Monday. Prosecutors have recommended an 18-month sentence. A lawyer for Mr. Horn declined to comment.

Some of Mr. Horn’s clients are struggling to understand the extent of their losses. Mr. Brown and Mr. Zelner say that Wells Fargo has not let them review the trading records. Instead, they have had to rely on the bank’s analysis. “The firm believes it has provided appropriate information,” Ms. Burton said.

Prosecutors estimate the scheme’s damages at $732,000. But there are indications the losses could be higher. Last year, Wells Fargo, without explanation, transferred roughly $500,000 to an account that Mr. Brown has at Merrill Lynch. Mr. Brown said he planned to file a lawsuit seeking additional compensation.

While some clients still have concerns, Wells Fargo said the matter had been resolved and declined to provide further details. “In cases where his actions harmed the clients, the firm has either credited those accounts or reached another resolution with those clients,” Ms. Burton said.

On paper, Mr. Horn seemed like a model broker. After a short stint at Lehman Brothers in New York, he spent a decade at Citigroup in Los Angeles, moving to Wells Fargo in 2006. For much of his career, his regulatory record was clean, with few customer complaints.

At Wells Fargo, Mr. Horn, who worked in a team of brokers, seemed to land clients without an aggressive approach. He wooed clients slowly, often over many years. Between golf holes, he would casually mention winning trades, almost as an aside.

He nurtured friendships with clients. Norman Strang, an 80-year-old retired aerospace executive, said his wife regularly cooked dinner for Mr. Horn at the couple’s home in Pacific Palisades, Calif. “Here he was being this friendly guy, and yet he stole several thousands of dollars from our account.” Mr. Horn went to the weddings of both Mr. Brown’s children and planned to join him on a charitable trip to Israel and Morocco in the fall of 2011.

In 2011, Mr. Horn invited clients to his 50th birthday party inspired by the movie “Saturday Night Fever.” The tall and lanky Mr. Horn wore a white disco suit and handed out CDs with a cover that superimposed his head onto John Travolta’s body.

Given Mr. Horn’s gregarious nature, clients say they dismissed what should have been red flags. According to Mr. Zelner, Mr. Horn avoided meeting at his office, preferring the golf course. Between games, they would meet in the country club’s parking lot, where the broker would pull trading documents from his trunk.

“Phil would present his investments as if he was giving you something that would protect you,” said Mr. Zelner, adding that “he was also just a guy you wanted to drink with.”

Many clients trusted him. Each month, they received thick booklets detailing trading activity, but few pored over the trades. “If I had time to do that, I wouldn’t need a broker,” Mr. Brown said.

Amid hundreds of legitimate transactions, a dubious trade was also hard to spot. In one instance, Mr. Horn bought 1,000 shares of an exchange-traded fund for $77.93 apiece on Feb. 15, 2011, according to Mr. Brown’s bank statements. A month later, Mr. Horn canceled the trade. By then, the price had surged to $86. But the transaction was buried within more than 50 double-sided pages. It appeared as a canceled trade, which by itself was not alarming.

Mr. Brown and his wife did not know anything was amiss until they received a startling call from an executive at Wells Fargo. While the couple were celebrating the Jewish holidays in Toronto in October 2011, the bank executive told them about the problems with their account. Mr. Brown added, “He said we had a ‘six-figure problem.’ ”

A version of this article appeared in print on 01/07/2013, on page A1 of the NewYork edition with the headline: Madoff Aside, Financial Fraud Defies Policing.

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Ex-Officer Is First From C.I.A. to Face Prison for a Leak

Christaan Felber for The New York Times

John Kiriakou with his daughter Kate at home in Arlington, Va., last month. He has struggled with how to explain to his children that he will be going away.

WASHINGTON — Looking back, John C. Kiriakou admits he should have known better. But when the F.B.I. called him a year ago and invited him to stop by and “help us with a case,” he did not hesitate.

Timeline

Leak-Related Cases Prosecuted During the Obama Administration

Christaan Felber for The New York Times

Mr. Kiriakou is scheduled to be sentenced to 30 months in prison as part of a plea deal.

In his years as a C.I.A. operative, after all, Mr. Kiriakou had worked closely with F.B.I. agents overseas. Just months earlier, he had reported to the bureau a recruiting attempt by someone he believed to be an Asian spy.

“Anything for the F.B.I.,” Mr. Kiriakou replied.

Only an hour into what began as a relaxed chat with the two agents — the younger one who traded Pittsburgh Steelers talk with him and the senior investigator with the droopy eye — did he begin to realize just who was the target of their investigation.

Finally, the older agent leaned in close and said, by Mr. Kiriakou’s recollection, “In the interest of full disclosure, I should tell you that right now we’re executing a search warrant at your house and seizing your electronic devices.”

On Jan. 25, Mr. Kiriakou is scheduled to be sentenced to 30 months in prison as part of a plea deal in which he admitted violating the Intelligence Identities Protection Act by e-mailing the name of a covert C.I.A. officer to a freelance reporter, who did not publish it. The law was passed in 1982, aimed at radical publications that deliberately sought to out undercover agents, exposing their secret work and endangering their lives.

In more than six decades of fraught interaction between the agency and the news media, John Kiriakou is the first current or former C.I.A. officer to be convicted of disclosing classified information to a reporter.

Mr. Kiriakou, 48, earned numerous commendations in nearly 15 years at the C.I.A., some of which were spent undercover overseas chasing Al Qaeda and other terrorist groups. He led the team in 2002 that found Abu Zubaydah, a terrorist logistics specialist for Al Qaeda, and other militants whose capture in Pakistan was hailed as a notable victory after the Sept. 11 attacks.

He got mixed reviews at the agency, which he left in 2004 for a consulting job. Some praised his skills, first as an analyst and then as an overseas operative; others considered him a loose cannon.

Mr. Kiriakou first stumbled into the public limelight by speaking out about waterboarding on television in 2007, quickly becoming a source for national security journalists, including this reporter, who turned up in Mr. Kiriakou’s indictment last year as Journalist B. When he gave the covert officer’s name to the freelancer, he said, he was simply trying to help a writer find a potential source and had no intention or expectation that the name would ever become public. In fact, it did not surface publicly until long after Mr. Kiriakou was charged.

He is remorseful, up to a point. “I should never have provided the name,” he said on Friday in the latest of a series of interviews. “I regret doing it, and I never will do it again.”

At the same time, he argues, with the backing of some former agency colleagues, that the case — one of an unprecedented string of six prosecutions under President Obama for leaking information to the news media — was unfair and ill-advised as public policy.

His supporters are an unlikely collection of old friends, former spies, left-leaning critics of the government and conservative Christian opponents of torture. Oliver Stone sent a message of encouragement, as did several professors at Liberty University, where Mr. Kiriakou has taught. They view the case as an outrage against a man who risked his life to defend the country.

Whatever his loquaciousness with journalists, they say, he neither intended to damage national security nor did so. Some see a particular injustice in the impending imprisonment of Mr. Kiriakou, who in his first 2007 appearance on ABC News defended the agency’s resort to desperate measures but also said that he had come to believe that waterboarding was torture and should no longer be used in American interrogations.

Bruce Riedel, a retired veteran C.I.A. officer who led an Afghan war review for Mr. Obama and turned down an offer to be considered for C.I.A. director in 2009, said Mr. Kiriakou, who worked for him in the 1990s, was “an exceptionally good intelligence officer” who did not deserve to go to prison.

This article has been revised to reflect the following correction:

Correction: January 5, 2013

A summary that appeared with an earlier version of this article misspelled the surname of the former C.I.A. operative. He is John C. Kiriakou, not Kiriako.

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