RIM shares fall at the open after earnings

TORONTO (Reuters) - Research In Motion Ltd fell in early trading on Friday following the BlackBerry maker's Thursday earnings announcement, when the company outlined plans to change the way it charges for services.
RIM, pushing to revive its fortunes with the launch of its new BlackBerry 10 devices next month, surprised investors when it said it plans to alter its service revenue model, a move that could put the high-margin business under pressure.
Shares fell 16.0 percent to $11.86 in early trading on the Nasdaq. Toronto-listed shares fell 15.8 percent to C$11.74.
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Syrian president to give speech Sunday

BEIRUT (AP) — Syrian President Bashar Assad will deliver a speech on Sunday in a rare address to the nation, state media said, as rebels fighting to topple his embattled regime pressed ahead with an offensive on the capital.
The official SANA news agency said in a brief statement Saturday that Assad will speak about the latest developments in Syria. The speech would be the first by the leader since June, and comes amid intense fighting between government troops and rebels on the outskirts of Damascus.
Assad has rarely spoken in public since the uprising against him began in March 2011. In each of his previous speeches and interviews, the president has dug in his heels even as Western powers have moved to boost the opposition in Syria's civil war.
In his last public comments, Assad vowed in an interview with Russia Today on Nov. 8 that he would "live and die in Syria."
Fighting has raged for weeks in the neighborhoods and towns around Damascus that have been opposition strongholds since the Syrian revolt began. The uprising started with peaceful protests but morphed into a civil war that has killed more than 60,000 people, according to a recent United Nations recent estimate.
The rebels are trying to push through the government's heavy defenses in Damascus, prompting the regime to unleash a withering assault on the suburbs that has included intense barrages by artillery and warplanes.
Diplomatic efforts to end the Syrian crisis have failed so far to bring an end to the bloodshed, although the international community continues to push for a peaceful settlement.
On Saturday, Saudi Arabia's Foreign Minister Saud al-Faisal told reporters after a meeting with his Egyptian counterpart in Riyadh that there should be an immediate end to the bloodshed in Syria and called for a peaceful political transition.
Saudi Arabia and Egypt have both called on Assad to step down, and Riyadh has also been an outspoken supporter of the rebels.
The president of the U.N. Security Council said Thursday there are important developments in efforts to find a diplomatic solution to the 21-month conflict in Syria and there could be another U.S.-Russia meeting with international envoy Lakhdar Brahimi next week.
Brahimi and Russian Foreign Minister Sergey Lavrov both said after their meeting last Saturday that the Syrian crisis can only be settled through talks, while admitting that neither the government nor the opposition has shown a desire to compromise. Neither official hinted at a possible solution that would persuade the two sides to agree to a ceasefire and sit down for talks about a political transition.
But Lavrov said Syrian President Bashar Assad has no intention of stepping down — a key opposition demand — and it would be impossible to try to persuade him otherwise. Russia is a close ally of the Syrian government, and has shielded it from punitive measures at the U.N.
It was not clear what kind of initiative, if any, Assad may offer in his speech.
Meanwhile the violence continued unabated Saturday.
Rebels and government troops clashed in suburbs south of Damascus, including Harasta and Daraya, the Britain-based Syrian Observatory for Human Rights said. Fighting in Daraya alone left 10 dead, including six rebels, according to the Observatory, which relies on reports by activists on the ground.
The army dispatched fresh reinforcements to Daraya, part of an offensive aimed at dislodging rebels from the district, located just a few kilometers (miles) from a strategic military air base west of the capital, the Observatory said. Regaining control of Daraya would provide a boost to the regime's defense of Damascus.
Government troops also arrested several residents in raids in the suburb of Qatana, the Observatory said. Fighting was also heavy in the central province of Hama, Idlib, and in the southern part of the country, in Daraa, the birthplace of the Syrian uprising. Besides the deaths in Daraya, 35 people were killed around the country, the group said.
There was also fighting on the road to the Damascus International Airport, which has not been functioning since last month when clashes first erupted on the airport road, and international airlines have yet to resume flights to the capital. Airport officials have said the facility is open, but have not said which flights are operating.
Rebels frequently target government officials for assassination, and have killed several regime figures since the revolt began, including a suicide bombing in December that wounded Interior Minister Mohammed al-Shaar. After the Dec. 12 blast, al-Shaar was secretly sent to neighboring Lebanon for treatment of a back injury, but was rushed out of a Beirut hospital and back home two weeks later for fear of being arrested by Lebanese authorities.
On Saturday, SANA denied reports that al-Shaar had died, saying the minister is "in good health and recovering."
State media also said Syrian journalist Suheil al-Ali who worked for the Dunya pro-government television station died Friday of wounds sustained in a shooting attack in the suburbs of Damascus four days ago. The SANA state news agency blamed a "terrorist," the term the government uses for those trying to topple Assad.
In Tehran, Syrian Deputy Foreign Minister Faisal Mekdad discussed the conflict and ways to end it with Iranian Foreign Minister Ali Akbar Salehi, Iranian State TV said. Iran is one of Syria's strongest allies.
The conflict has increasingly taken sectarian overtones, with predominantly Sunni Muslim rebels fighting the ruling regime that is dominated by Alawites, an offshoot group of Shiite Islam.
Also on Saturday, an Arab League official said the group's foreign ministers will hold an emergency meeting in the coming days in Cairo to discuss ways to assist Syrian refugees in Lebanon. The official spoke on condition of anonymity because he was not authorized to release the information.
More than half a million Syrians have fled violence and sought shelter in neighboring countries, including some 130,000 to Lebanon. The country's government has requested $180 million from international donors to help its efforts with refugees.
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Iran parliament seeks full probe in blogger death

Iran parliament seeks full probe in blogger death
TEHRAN, Iran (AP) — Iran's parliament is urging the judiciary to thoroughly investigate the death of a blogger in custody and monitor police stations to prevent further abuses.
A parliamentary committee statement read during a Sunday session of the legislature called for a "special" investigation into the November death of Sattar Beheshti.
It is not clear what that means legally, as prosecutors are already investigating the case. But the statement reflects widespread outrage. Arrests of activists and claims of abuse in detention are commonplace in Iran, but deaths behind bars are much rarer.
Parliament also urged police to monitor all detention centers through closed circuit cameras, and suggested prosecutors visit regularly.
In December, Iran fired its head of cyber-security over the case. It also detained seven police officers, three of whom remain in detention.
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Israel leader appeals for right-wing votes

JERUSALEM (AP) — Israel's Prime Minister Benjamin Netanyahu appealed in a rare interview on Sunday to his right-wing base to cast ballots for his list, rather than hawkish alternatives, to prevent his being unseated by a potential center-left coalition.
His appeal reflects developments in recent weeks that have left Netanyahu more vulnerable ahead of Jan. 22 elections: the emergence of a charismatic new, pro-settler leader; blistering criticism of his leadership by a respected former security chief; and over the weekend, feelers by three center-left parties to unite ahead of the elections to form a bloc that would vie to form the next government.
Still, he does not seem to be in real danger of losing the premiership in the upcoming balloting, so it's not clear whether his comments reflected genuine nervousness or whether he was using the center-left unity talk to prod likeminded Israelis to rally around his hardline flag.
In interviews to Israel Radio and Army Radio, Netanyahu went on the attack against exploratory contacts among three of his adversaries to form a bloc that would pose a stiffer challenge to his leadership.
The bloc would consist of the Labor party, which opposes Netanyahu's economic policies; former Foreign Minister Tzipi Livni's Hatnua party, which thinks Netanyahu is jeopardizing efforts to make peace with the Palestinians, and former journalist Yair Lapid, whose Yesh Atid party thinks the prime minister has shortchanged the middle class.
The center-left parties, Netanyahu told both stations, "have one objective: To topple the government I lead."
The prime minister appeared to be falling back on his strong standing among hawkish Israelis to try to boost support for his troubled list. Polls show sizable numbers of right-wing voters withdrawing their support for Netanyahu's Likud Beiteinu list and redirecting it to the pro-settlement Jewish Home party, led by high-tech millionaire Naftali Bennett. At the same time, the surveys show respondents overwhelmingly choosing Netanyahu as the best option for prime minister.
"Whoever wants me as a strong prime minister can't have a strong prime minister while weakening me," Netanyahu told Israel Radio in an interview conducted Saturday night and broadcast Sunday. "I think there is only one way to guarantee that the right continues to govern Israel, and that's to vote for me."
Still, even though polls show backing for Likud Beiteinu dropping, they do not show Netanyahu's leadership to be at risk: The task of forming the next government will go to the party that appears best able to put together a coalition, and surveys show Netanyahu and his traditional pro-settlement and religious allies winning a majority of parliament's 120 seats, bolstered, perhaps, by one or more of the center-left parties now talking about joining ranks against him.
The numbers do not seem to favor the formation of a government led by centrists or leftists. Instead, the big question appears to how far to the right the next government will be. Labor has ruled out joining a Netanyahu-led government. Livni has not, and Lapid told Army Radio on Sunday that if polls are borne out, he would like to join a broad-based government to make it more moderate and put peacemaking with the Palestinians on the agenda.
In related news, Netanyahu dismissed the assault by former Shin Bet internal security chief Yuval Diskin against his leadership over the weekend. Diskin portrayed the Israeli leader as weak, indecisive and putting personal interests above the state's. He said he was going public with his concerns before elections in an effort to persuade voters not to cast ballots for Netanyahu.
Netanyahu told Israel Radio that Diskin went public so close to the election in an effort to sway the election results.
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Oracle beats outlook, shrugs off fiscal debate

BOSTON/SAN FRANCISCO (Reuters) - Technology giant Oracle Corp said software sales growth will stay strong into the new year despite fears that there could be big tax hikes and U.S. government spending cuts that could cause a slump in spending by customers.
Shares of the world's No. 3 software maker rose 1.3 percent after it reported fiscal second-quarter revenue and earnings that surpassed Wall Street forecasts.
Oracle President Safra Catz told investors that businesses were still looking to spend money already allocated to 2012 technology budgets.
"Folks want to close deals," she told analysts on a conference call following the earnings release on Tuesday. There has been "no negative impact on pricing. Pricing remains very good for us."
Oracle said software sales would grow 3 to 13 percent this quarter, which runs through February. It expects fiscal third-quarter hardware products sales to be flat to down 10 percent from a year ago.
The company's software and hardware forecasts were roughly in line with Wall Street expectations, according to FBR Markets analyst Daniel Ives.
Oracle reported that software sales and cloud software subscriptions rose 17 percent from a year earlier to $2.4 billion in its fiscal second quarter ended November 30.
It had forecast that new software sales would climb 5 to 15 percent from a year earlier, when it last reported earnings on September 20.
"I would call it an early Christmas present," Ives said. "It's a positive sign for the overall technology sector."
Investors pay close attention to new software sales because they generate high-margin, long-term maintenance contracts and are an important gauge of the company's future profits.
Oracle posted a second-quarter profit, excluding items, of 64 cents per share, beating the average analyst forecast of 61 cents according to Thomson Reuters I/B/E/S.
Jefferies & Co analyst Ross MacMillan said Oracle's results are encouraging for other makers of business software, many of which end their quarter on December 31.
OFF A CLIFF
Some investors have worried that corporations would postpone spending on technology projects because of uncertainty over the year-end deadline for Congress and U.S. President Barack Obama to reach a compromise to thwart an automatic rise in tax rates and government spending cuts.
Failing to reach a deal, economists say, could lead to another U.S. recession. Catz said Oracle's customers are still spending on software.
"What's going on in Washington - I don't know who it's necessarily influencing today. But I can tell you, our customers have been spending money with us even here in December."
On Tuesday, Oracle forecast earnings per share in the current fiscal third quarter of 64 to 68 cents, excluding items. That was about level with an average forecast for 66 cents.
"It tells you that there's still money being spent by enterprises on software. It's not like the world has ground to a halt," MacMillan said.
The picture was not so bright for Oracle's troubled hardware division, which it acquired with its $5.6 billion purchase of Sun Microsystems in January 2010. The division's revenue has fallen every quarter since it closed that deal.
Hardware systems product sales fell 23 percent from a year earlier to $734 million. Oracle had forecast that hardware sales would drop between 8 and 18 percent.
Chief Executive Larry Ellison told analysts he expected hardware systems revenue to start growing in the fiscal fourth quarter which begins March 1.
Oracle shares rose to $33.30 in extended trade after closing at $32.88 on Nasdaq.
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BofA CEO: Fed wants bank to show consistent earnings

CHARLOTTE, North Carolina (Reuters) - Bank of America Corp needs to show the U.S. Federal Reserve it can produce consistent earnings as part of the annual process to gain permission to return more capital to shareholders, CEO Brian Moynihan said in an interview.
The second-largest U.S. bank is turning a profit in most of its main businesses, but it inherited costly legal problems when it acquired companies during the financial crisis, including subprime mortgage lender Countrywide Financial.
In the third quarter, Bank of America reported only a nominal profit after reaching a $2.4 billion settlement with investors to resolve claims it hid crucial information from shareholders when it bought investment bank Merrill Lynch & Co.
Moynihan declined to comment on whether the bank's capital plan, which is due to the Fed by January 7, will include any proposed share buybacks or increases in dividends. Moynihan suffered a major embarrassment in 2011 when the Fed rejected the bank's request to increase its quarterly dividend, which has been stuck at just one penny per share since the financial crisis.
The Fed has been evaluating capital plans as part of its supervision of bank holding companies and under provisions in the Dodd-Frank financial reform law. It is unclear whether the Fed would approve any request for an increased dividend or share buybacks next year. A Fed spokesperson declined to comment.
"The element that is sort of unique to us is the predictability of the earnings stream," Moynihan said in an interview in his Charlotte, North Carolina, office. "We are working to get through that."
Other banks have demonstrated their ability to earn money more consistently. JPMorgan Chase & Co's quarterly profit, for example, hasn't fallen below $3.7 billion in the past year, even as it has taken losses on disastrous credit derivative trades.
Investors and analysts are hopeful that Bank of America's legal problems will die down soon. Its stock price has more than doubled this year, partly on expectations that the bank will increase its dividend and buy back more stock after the Federal Reserve reviews its capital plans this spring.
Analysts at Atlantic Equities on Tuesday said they expect Bank of America to buy back $4 billion of its own shares in 2013 and $10 billion in 2014, which would be its first buybacks since 2007.
The bank has "made a lot of progress" on legal issues, Moynihan said, but he acknowledged that the company is still working through lawsuits and investor demands to buy back soured mortgages the bank sold off during the housing boom.
In recent weeks, the bank's dispute with insurer MBIA Inc over mortgage-related claims has heated up, with Bank of America filing a new lawsuit last week against the insurer. The legal tussle with MBIA has dragged on, even as Bank of America has worked out settlements with other insurers of mortgage-backed securities issued by Countrywide.
Moynihan said the bank will settle the MBIA dispute if it can reach an agreement that is reasonable for shareholders but otherwise it is ready to litigate the matter.
The bank's shares closed Tuesday at $11.35, up 3.2 percent for the day. The shares are the best performer in the Dow Jones industrial average this year, after falling the most in 2011.
HEALING
In an effort to improve earnings, Moynihan is aiming to cut costs by $8 billion annually by mid-2015 through a program called Project New BAC, including 30,000 layoffs that have been under way since September 2011. Bank of America had noninterest expenses of $76.5 billion in 2011.
In addition, Bank of America expects to eventually reduce costs in its unit that serves delinquent mortgage customers to about $500 million per quarter from about $3.4 billion in the third quarter. If delinquent mortgages continue to fall, that saving should be achieved in 2015, if not sooner, Moynihan said.
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Top UBS shareholder pins rebound hopes on private wealth

LONDON (Reuters) - UBS's wealth management business will help it bounce back from a $1.5 billion rap for rigging interest rates, one of its largest investors said, although fears of costly civil lawsuits could cast a pall over its shares for some time.
Paras Anand, European equities head at Fidelity Worldwide Investment, said legal action sparked by the Libor scandal posed an unpredictable threat to the bank's near-term earnings, even if its core private banking franchise escaped permanent harm.
"The big unknown factor is the civil litigation that could follow on as a result of this...That is one thing at the back of our minds that we have to be cognizant of," Anand said in an interview with Reuters.
"The issue for shareholders is the challenge of pricing that risk in. The potential costs are too unquantifiable and indeed, it's unclear as to whether they will actually manifest or not."
Switzerland's largest bank was hit with the fine on Wednesday after admitting to fraud, paying bribes to brokers and "pervasive" manipulation of global benchmark interest rates by dozens of its staff.
UBS shares were trading 1.3 percent higher at 9:01 a.m. ET, as investors looked forward to the end of a scandal-filled chapter in the bank's history and a renewed focus on managing cash on behalf of rich clients, rather than so-called 'casino' investment banking.
"There's clearly been a backlash against big faceless financial entities but a private bank has big personal relationships with its customers ... These kinds of institutions are surprisingly resilient," Anand said.
"We have seen some awful scandals in businesses much weaker than UBS and they manage to survive," he added.
Fidelity owns around 45 million shares in UBS, equivalent to around 1.2 percent of the bank, and is its fifth largest institutional owner excluding sovereign wealth funds, according to Thomson Reuters data.
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