Volunteers track Santa's progress, answer calls

Most of the thousands of children who call the annual Santa-tracking operation at a Colorado Air Force Base on Christmas Eve ask the usual questions: "Where's Santa, and when will he get here?"
So volunteer Sara Berghoff was caught off-guard Monday when a child called to see if Santa could be especially kind this year to the families affected by the Connecticut school shooting.
"I'm from Newtown, Connecticut, where the shooting was," she remembers the child asking. "Is it possible that Santa can bring extra presents so I can deliver them to the families that lost kids?"
Sara, just 13 herself, was surprised but gathered her thoughts quickly. "If I can get ahold of him, I'll try to get the message to him," she told the child.
Sara was one of hundreds of volunteers at NORAD Tracks Santa who answered more than 88,000 calls by Monday evening, program spokeswoman Marisa Novobilski said.
First lady Michelle Obama, who is spending the holidays with her family in Hawaii, also joined in answering calls as she has in recent years. She spent about 30 minutes talking with children from across the country.
The calls into NORAD this year were on pace to exceed last year's record of 107,000.
The North American Aerospace Defense Command, a joint U.S.-Canada command responsible for protecting the skies over both nations, tracks Santa from its home at Peterson Air Force Base.
NORAD and its predecessor have been fielding Christmas Eve phone calls from children — and a few adults — since 1955. That's when a newspaper ad listed the wrong phone number for kids to call Santa. Callers ended up getting the Continental Air Defense Command, which later became NORAD. CONAD commanders played along, and the ritual has been repeated every year since.
After 57 years, NORAD can predict what most kids will ask. Its 11-page playbook for volunteers includes a list of nearly 20 questions and answers, including how old is Santa (at least 16 centuries) and has Santa ever crashed into anything (no).
But kids still manage to ask the unexpected, including, "Does Santa leave presents for dogs?"
A sampling of anecdotes from the program this year:
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THE REAL DEAL: A young boy called to ask if Santa was real.
Air Force Maj. Jamie Humphries, who took the call, said, "I'm 37 years old, and I believe in Santa, and if you believe in him as well, then he must be real."
The boy turned from the phone and yelled to others in the room, "I told you guys he was real!"
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DON'T WORRY, HE'LL FIND YOU: Glenn Barr took a call from a 10-year-old who wasn't sure if he would be sleeping at his mom's house or his dad's and was worried about whether Santa would find him.
"I told him Santa would know where he was and not to worry," Barr said.
Another child asked if he was on the nice list or the naughty list.
"That's a closely guarded secret, and only Santa knows," Barr replied.
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TOYS IN HEAVEN: A young boy who called from Missouri asked when Santa would drop off toys in heaven.
His mother got on the line and explained to Jennifer Eckels, who took the call, that the boy's younger sister died this year.
"He kept saying 'in heaven,'" Eckels said. She told him, "I think Santa headed there first thing."
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BEST OF: Choice questions and comments wound up posted on a flip chart.
"Big sister wanted to add her 3-year-old brother to the naughty list," one read.
"Are there police elves?" said another.
"How much to adopt one of Santa's reindeer?"
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INTERNATIONAL FLAVOR: NORAD got calls from 220 countries and territories last year, and non-English-speakers called this year as well.
Volunteers who speak other languages get green Santa hats and a placard listing their languages so organizers can find them quickly.
"Need a Spanish speaker!" one organizer called as he rushed out of one of three phone rooms.
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HE KNOWS WHEN YOU'RE AWAKE: At NORAD's suggestion, volunteers often tell callers that Santa won't drop off the presents until all the kids in the home are asleep.
"Ohhhhhhh," said an 8-year-old from Illinois, as if trying to digest a brand-new fact.
"I'm going to be asleep by 4 o'clock," said a child from Virginia.
"Thank you so much for that information," said a grateful mom from Michigan.
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CHRISTMAS EVE IN AFGHANISTAN: Five U.S. service personnel answered calls from Afghanistan for about 90 minutes through a conferencing hookup.
"They had a great time," said Novobilski, the program spokeswoman.
NORAD wanted to set up a call center in Afghanistan but that proved too complex, she said.
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HEY, MR. ELF: "Mr. Elf," said one caller, "This is Adam, and I've been really good this year."
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FOR GEARHEADS: For people who want to know the specs of Santa's sleigh, NORAD offers a trove of tidbits, including:
Weight at takeoff: 75,000 GD (gumdrops).
Propulsion: 9 RP (reindeer power).
Fuel: Hay, oats and carrots (for reindeer).
Emissions: Classified.

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Lawmakers play waiting game with 'fiscal cliff' deadline in sight

With only a week left before a deadline for the United States to go over a "fiscal cliff," lawmakers played a waiting game on Monday in the hope that someone will produce a plan to avoid harsh budget cuts and higher taxes for most Americans from New Year's Day.
Though Republicans and Democrats have spent the better part of a year describing a plunge off the cliff as a looming catastrophe, the nation's capital showed no outward signs of worry, let alone impending calamity.
The White House has set up shop in Hawaii, where President Barack Obama is vacationing.
The Capitol was deserted and the Treasury Department - which would have to do a lot of last-minute number-crunching with or without a deal - was closed.
So were all other federal government offices, with Obama having followed a tradition of declaring the Monday before a Tuesday Christmas a holiday for government employees, notwithstanding the approaching fiscal cliff.
Expectations for some 11th-hour rescue focused largely on Senate Minority Leader Mitch McConnell, a Republican, in part because he has performed the role of legislative wizard in previous stalemates.
But McConnell, who is up for re-election in 2014, was shunning the role this year, his spokesman saying that it was now up to the Democrats in the Senate to make the next move.
"We don't yet know what Senator Reid will bring to the floor. He is not negotiating with us and the president is out of town," said McConnell's spokesman, referring to Senate Majority Leader Harry Reid, a Democrat. "So I just don't know what they're going to do over there," he said.
Two-day-old tweets on leadership websites told the story insofar as it was visible to the public.
House Speaker John Boehner's referred everyone to McConnell. McConnell's tweet passed the responsibility along to Obama, saying it was a "moment that calls for presidential leadership."
Reid's tweet said: "There will be very serious consequences for millions of families if Congress fails to act" on the cliff.
The next session of the Senate is set for Thursday, but the issues presented by across-the-board tax hikes and indiscriminate reductions in government spending, were not on the calendar.
The House has nothing on its schedule for the week, but members have been told they could be called back at 48 hours notice, making a Thursday return a theoretical possibility.
However, aides to the Republican leaders in Congress said there were no talks with Democrats on Monday and none scheduled after negotiations fell off track last week when Boehner failed to persuade House Republicans to accept tax increases on incomes of more than $1 million a year.
"Nothing new, Merry Christmas," an aide to Boehner responded when asked if there was any movement on the fiscal cliff.
But a senior Obama administration official, speaking on condition of anonymity, said White House aides were talking with Senate Democratic staffers about the situation.
SCALED-BACK EXPECTATIONS
If there is some last-minute legislation, Republicans and Democrats agreed on Sunday news shows that it will not be any sort of "grand bargain" encompassing taxes and spending cuts, but most likely a short-term deal putting everything off for a few weeks or months, thereby risking a negative market reaction.
A limited agreement would still need bipartisan support, as Obama has said he would veto a bill that does not raise taxes on the wealthiest Americans.
On Monday, Texas Senator Kay Bailey Hutchison urged fellow Republicans to be flexible.
"We're now at a point where we're not going to get what we think is right for our economy and our country because we don't control government. So we've got to work within the system we have," she told MSNBC.
Two bills in Congress could conceivably form the basis for a last-minute stopgap measure.
Last spring, Republicans in the House passed a measure that would extend Bush-era tax cuts for everyone, reflecting the party's deep reluctance to increase taxes.
The Democratic-controlled Senate passed a bill in August, extending lower tax rates for everyone except the wealthiest Americans - a group defined at that point as households with a net income of $250,000 or above. Obama has since increased that to $400,000 a year, in an effort to win Republican support.
Analysts say Democrats might be able to get the backing of enough Republicans in both the House and Senate, especially if they are willing to raise the number to $500,000.
Under that scenario, lawmakers might also put off spending cuts of $109 billion that would take effect from January and agree to Republican demands for cuts in entitlement programs such as Medicare and Medicaid, the government-run health insurance plans for seniors and the poor.
However, with only a few work days left in Congress after Christmas, there is a good chance that no deal can be worked out and tax rates would then go up, at least briefly, until an agreement is reached in Washington.
"We may go off the cliff on January 1, but we would correct that very quickly thereafter," Democratic Representative John Yarmuth told MSNBC.
The prospects of the United States going over the fiscal cliff dampened enthusiasm on Wall Street for a "Santa rally" in the holiday season, when stocks traditionally rise.
The Dow Jones industrial average dropped 51.76 points, or 0.39 percent, in Monday's shortened holiday session.
Failure to work out tax rates in the coming days would cause chaos at the Internal Revenue Service, said analyst Chris Krueger of Guggenheim Securities.
"Next weekend is going to be a total, total debacle," he said. The IRS is unlikely to have enough time to revise its tables for withholding taxes.
"The withholding tables are sort of like an aircraft carrier, you can't turn the thing on a dime." he said.

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Bush spokesman says former president will spend Christmas in hospital after developing fever

Former President George H.W. Bush will spend Christmas in a Texas hospital after developing a fever and weakness following a monthlong, bronchitis-like cough, his spokesman said Monday.
A hospital spokesman had said the 88-year-old would be released in time to spend the holiday at home, but that changed after Bush developed a fever.
"He's had a few setbacks. Late last week, he had a few low-energy days followed by a low-grade fever," Jim McGrath, Bush's spokesman, told The Associated Press. "Doctors still say they are cautiously optimistic, but every time they get over one thing, another thing pops up."
He said the cough that initially brought Bush to the hospital on Nov. 23 is now evident only about once a day, and the fever appears to be under control, although doctors are still working to get the right balance in Bush's medications. No discharge date has been set.
"Given his current condition, doctors just want to hang on to him," McGrath said. He didn't know what had caused the fever.
Bush's son, George W. Bush, the 43rd president, has been among the visitors at the hospital.
Being in the hospital for such a long time has not been easy for Bush, who is accustomed to being active, McGrath said. But the president has said he's determined "not to get grumpy about it."
"He's just the most relentlessly positive person," McGrath said, and "he does enjoy joking with the nurses."

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Venezuela's Chavez improving after surgery: officials

Venezuelan President Hugo Chavez is improving after a cancer operation in Cuba and has started exercising, officials said on Monday, amid doubts over whether the former soldier is in good enough health to continue governing.
Vice President Nicolas Maduro said he had spoken by phone with Chavez, who was walking and doing exercises as part of his treatment.
"We've gotten the best present we could get this Christmas: a phone call from our commander president," Maduro said on state television.
Information Minister Ernesto Villegas said earlier in the day that Chavez had "shown a slight improvement in his condition," without providing details.
Chavez has not been heard from in two weeks following a fourth operation for an unspecified type of cancer in the pelvic region. The government has said he suffered post-operatory complications including unexpected bleeding and a lung infection, but offered few details about his actual condition.
His death, or even his resignation for health reasons, would upend the politics of the South American OPEC nation where his personalized brand of oil-financed socialism has made him a hero to the poor but a pariah to critics who call him a dictator.
His allies are now openly discussing the possibility that he may not be back in time to be sworn in for his third six-year term on the constitutionally mandated date of January 10.
Opposition leaders say a delay to his taking power would be another signal that Chavez is not in condition to govern and that fresh elections should be called to choose his replacement.
They believe they have a better shot against Maduro, Chavez's anointed successor, than against the charismatic president who for 14 years has been nearly invincible at the ballot box.
But a constitutional dispute over succession could lead to a messy transition toward a post-Chavez era.
Maduro has become the government's main figurehead in the president's absence. His speeches have mimicked Chavez's bombastic style that mixes historical references with acid insults of adversaries.
Opposition leader Henrique Capriles, who lost to Chavez in the October presidential vote, slammed Maduro in an interview published on Sunday for failing to seek dialogue with the opposition at a time of political uncertainty.
"Maduro is not the one that won the elections, nor is he the leader," Capriles told the local El Universal newspaper. "Because Chavez is absent, this is precisely the time that (Maduro) needs help from people (in the opposition camp)."
Chavez has vastly expanded presidential powers and built a near-cult following among millions of poor Venezuelans, who love his feisty language and social welfare projects.
The opposition is smarting from this month's governors elections in which Chavez allies won 20 of 23 states. They are trying to keep attention focused on day-to-day problems from rampant crime to power outages.

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Netflix says video streaming service hit by outage

Families across the United States will have to rely on other sources of entertainment after Netflix's video streaming service was hit by a Christmas Eve outage.
The company based in Los Gatos, Calif., apologized in a company tweet for the outage Monday night.
The company says on its Twitter page that the outage was caused by "some of Amazon's cloud infrastructure." Netflix says it was working with Amazon engineers to restore the outage, which a company spokesman told the Wall Street Journal stretched "across the Americas."
Attempts to reach Netflix by The Associated Press were unsuccessful.

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This subscriber loss may haunt RIM in coming months

RIM’s (RIMM) share price popped by 8% soon after it released its earnings, buoyed by positive sales and earnings surprises. The fact that RIM managed to beat expectations on both fronts is a real achievement. The company has been able to manage the 50% annualized decline in device volume a lot more gracefully than most investors expected. The adjusted EPS loss of $0.22 was much smaller than the $0.36 loss Wall Street expected. However, there is a fly in the ointment the size of a hamster — for the first time ever, the base of BlackBerry subscribers has started shrinking globally. Wall Street expected RIM to add 300,000 new subscribers. Instead, the company lost about a million, with the number of total subscribers dipping from 80 million to 79 million in three months.
[More from BGR: RIM’s first BlackBerry 10 smartphone to be called the ‘Z10′]
The key surprise in RIM’s summer quarter was the company’s ability to expand its subscriber base even as its sales in the United States and the United Kingdom markets tanked. That was one of the factors that underpinned the strong share price rebound during the autumn. And the key surprise in RIM’s November quarter is the new trend of subscriber base decline. What has been crucially important for RIM over the past dark year is the rock solid loyalty of its emerging market customers in South Africa, Nigeria, Indonesia, Malaysia, the Philippines and Brazil. Those markets have enabled RIM to beat subscriber base estimates for four quarters running, even as American and British consumers abandoned the brand.
[More from BGR: RIM beats estimates in Q3, but subscriber base shrinks]
That loyalty may now be wobbling. Nokia (NOK) launched a broad range of very cheap Asha QWERTY models in the beginning of 2012 and has been pushing these models aggressively into Africa and Asia over the past two quarters. Samsung (005930) has moved into bargain basement level with its own Android QWERTY devices dropping to the 5,000 rupee level and below in India. This pincer move may have started to take its toll on RIM.
RIM added 2 million subscribers during the August quarter and then lost 1 million in the November quarter. It’s hard to estimate precise rates, because RIM refuses to give out detailed information but this could represent a swing from 9% annualized growth to 4% annualized decline in just three months.
In a couple of months, RIM will launch a new range of Blackberry models with a spanking new OS and appealing revamp of the Blackberry Messenger software. But the first models coming out will be expensive and aimed at business users. The low-end erosion that the autumn subscriber loss indicates may bite deep during the February and May quarters. What RIM really needs badly is a range of appealing new QWERTY devices priced well below $200 in retail. It is not clear when these devices will arrive. Much hinges now on whether RIM has an aggressive low-end strategy in place or whether the company will chase the dream of reconquering its high-end prominence.
Messaging apps like 2go and WhatsApp are growing at breakneck speed in Africa and Asia — they knit together users of various platforms from iOS to Android to S40 to Blackberry. The subscriber contraction of the November quarter indicates that RIM needs to somehow revive the emerging market interest in BBM very soon. The short squeeze that started in October is still driving RIM’s share price higher. But over the coming weeks we may well see investors begin to ponder the year 2013 subscriber trajectory.

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Distracted Pedestrian Crashes WABC Meteorologist's Live Weather Report

WABC-TV meteorologist Lee Goldberg was doing a live weather report on the sidewalk outside the station's studios on Columbus Avenue in Manhattan today when he was unceremoniously interrupted by a pedestrian who was distracted by his cell phone.
Goldberg was doing the live report when the pedestrian, looking intently at his cell phone, walked up behind Goldberg. The pedestrian veered off to the side, but then walked directly in front of the camera while looking at Goldberg.
Goldberg stopped his report to watch as the man walked through the shot. Then, holding out his palm and pantomiming someone looking at a cell phone, said: "Everybody's looking at their texts … and then they walk right through. That's pretty good," he said, adding with apparent irony, "Happy holidays."
The news anchors in the studio - David Novarro and Liz Cho - got a good laugh out of the whole thing.
"You're just another guy talking to a TV camera in the middle of the street. Get out of my way," Navarro joked, channeling the unidentified pedestrian.
He added in an exaggerated New York accent, "I'm shopping here!"

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RIM loses BlackBerry subscribers for first time

 Research In Motion's stock plunged in after-hours trading Thursday after the BlackBerry maker said it plans to change the way it charges fees.
RIM also announced that it lost subscribers for the first time in the latest quarter, as the global number of BlackBerry users dipped to 79 million.
In a rare positive sign, the Canadian company added to its cash position during the quarter as it prepared to launch new smartphones on Jan. 30. The new devices are deemed critical to the company's survival.
RIM's stock initially jumped more than 8 percent in after-hours trading on that news, but then fell $1.48, or 10.4 percent, to $12.65 after RIM said on a conference call that it won't generate as much revenue from telecommunications carriers once it releases the new BlackBerry 10 platform.
RIM is changing the way it charges service fees, putting an important source of revenue at risk. RIM CEO Thorsten Heins said only subscribers who want enhanced security will pay fees under the new system.
"Other subscribers who do not utilize such services are expected to generate less or no service revenue," Heins said. "The mix in level of service fees revenue will change going forward and will be under pressure over the next year during this transition."
RIM's stock had been on a three-month rally that has seen the stock more than double from its lowest level since 2003.
But Mike Walkley, an analyst with Canaccord Genuity, said BlackBerry 10 will change RIM's services revenue model dramatically. He said that instead of getting about $6 per device each month from carriers and users RIM could get as little as zero.
"That's what turned the stock from being up 10 percent to being down 10 percent," Walkley said. "That's been part of our worry. How do they come back with a new platform and get carriers to continue to share the higher revenue —which sounds like they are not going to— and then subsidize the phone to make it affordable for consumers and enterprises."
"People are seeing that the services revenue has a lot of risk to it now with the BlackBerry 10 migration."
Three months ago, RIM had 80 million subscribers. Analysts said the loss of 1 million subscribers was expected. Once coveted symbols of an always-connected lifestyle, BlackBerry phones have lost their luster to Apple's iPhone and phones that run on Google's Android software.
RIM is banking its future on its much-delayed BlackBerry 10 platform, which is meant to offer the multimedia, Internet browsing and apps experience that customers now demand.
"We believe the company has stabilized and will turn the corner in the next year," Heins said. He noted that the company's cash holdings grew by $600 million in the quarter to $2.9 billion, even after the funding of all its restructuring costs. RIM previously announced 5,000 layoffs this year.
Heins said subscribers in North America showed the largest decline, but said there is growth overseas.
Colin Gillis, an analyst with BGC Financial, said before the conference call that the company bought itself more time.
"It doesn't mean (BlackBerry) 10 will gain traction. A lot of people said 10 would be DOA, but I don't think that's going to be the case," he said.
Jefferies analyst Peter Misek also earlier called the results better than expected, noting that RIM added a significant amount of cash. RIM will need the money to advertise the new BlackBerrys and operating system.
Misek also called it a positive development that RIM said there would not be another delay to BlackBerry 10.
"The success or failure of this company will be on BlackBerry 10," Misek said.
RIM posted net income of $14 million, or 3 cents per share for its fiscal third quarter, which ended Dec. 1. That compares with a profit of $265 million, or 51 cents per share, in the same quarter a year ago.
The latest figure includes a favorable tax settlement. Excluding that adjustment, RIM lost 22 cents per share. Analysts polled by FactSet were expecting a wider loss of 27 cents.
RIM reported revenue of $2.7 billion, down 47 percent from a year ago.

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When South Korean automaker Hyundai Motor Co announced last month it had overstated the fuel efficiency levels on around one million of its cars in the United States and Canada some investors were left fuming more than others. Some had already sold their shares before the announcement on November 2. The stock fell 4 percent on November 1 with about 2.2 million shares changing hands, the highest trading volume of the year at that point. "This smells pretty bad," said Robert Boxwell, director of consulting firm Opera Advisors in Kuala Lumpur who has studied insider dealing patterns. "It would have fallen into our suspect trading category," he added. Boxwell spots suspect trading by looking at how much the volume diverges from the average level in the days before a market moving announcement. In the Hyundai instance, the volume was more than five standard deviations, a measure of variation, away from the daily average of 598,741 shares over the past year. A Hyundai spokeswoman declined to comment. Research from the Capital Markets Co-operative Research Centre (CMCRC), an academic centre in Sydney that studies financial market efficiency, found that 26 percent of price-sensitive announcements in Asia Pacific markets showed signs of leakage in the first quarter of this year, the most recent period for which data was available. That compared with 13 percent in North American markets. The CMCRC says it looks for suspected information leaks by examining abnormal price moves and trading volumes ahead of price-sensitive announcements. Investors say one reason for leaks in Asia has been low enforcement rates for insider trading and breaches of disclosure rules. Enforcement in some markets is virtually non-existent. There are also misconceptions about whether trading on non-public information is a crime. "The idea that insider trading is wrong rather than smart is only being ingrained in the current generation of Asian players, not the older generation who are often still in the driving seat," said Peter Douglas, founder of GFIA, a hedge fund consultancy in Singapore. LOSS OF CONFIDENCE Japan's largest investment bank Nomura Holdings was embarrassed this year after regulatory investigations found it leaked information to clients ahead of three public share offerings. Nomura has acknowledged that its employees leaked information on three share issues it underwrote in 2010. In June, it published the results of an internal investigation that found breaches of basic investment banking safeguards against leaking confidential information and announced a raft of measures to prevent recurrence. The bank was also fined 200 million yen ($2.37 million) by the Tokyo Stock Exchange and 300 million yen by the Japan Securities Dealers Association. Such leaks hurt companies' share prices in the long run because investors put in less money if they feel they are not on a level playing field. "It is very damaging. You may not know how much money you've lost but if there is not confidence that the regulators are prosecuting and enforcing the rules on this then it undermines investor confidence and liquidity," said Jamie Allen, secretary general of the Asian Corporate Governance Association. The issue isn't being ignored. Many Asian markets such as Hong Kong and China have tightened their rules on insider trading over the past decade. Indeed some investors feel that while leaks and insider dealing are unfair, regulators in the region have more serious issues they should be tackling. "I would like to see the regulators spend more resources on investigating and prosecuting fraud against listed companies, which severely damages shareholder value," said David Webb, a corporate governance activist in Hong Kong, arguing insider dealing as less of an impact on a company's long-term share price. HTC AND APPLE A week after Hyundai's announcement about its problems in the United States, there was an unexpected move on the Taiwan Stock Exchange. Shares in smartphone maker HTC Corp jumped almost seven percent on Friday, November 9, hitting the daily upper trading limit. On Sunday came the surprise announcement that the company was ending its long-running patent dispute with Apple Inc , a move seen as a positive for the stock. The Taiwan bourse announced it was investigating the trading patterns to see if there was a possible leak. When asked for comment, HTC referred back to a November 13 statement in which the company said it had kept the Apple settlement process confidential and has strict controls on insider trading. Michael Lin, a spokesman for the Taiwan Exchange, told Reuters on Friday that the bourse is still working with the regulator on the case. 'ENORMOUS LOSSES' Michael Aitken, who oversees research at the CMCRC, said many other Asian markets lack tough enough rules to force information to be released as efficiently and timely as possible, a primary reason for the prevalence of leaks. "Poor regulation hampers enforcement efforts," he said pointing out that few markets have the "continuous disclosure" rules used in Australia which require listed companies to release material information as soon as possible. In Korea, when Hyundai shares started to fall, rumours began swirling that news about a problem with some of its cars was on its way, but investors say it took the company too long to disclose what exactly was happening. "Hyundai at that time did not confirm the rumours. We suffered enormous losses because of this," said one fund manager, who declined to be named because he was not authorised to speak to the media. An official from Korea Exchange declined to comment on whether it was investigating this case, saying only that the exchange looks carefully into possible cases of insider trading. Across Asia, regulators concede that many company executives and insiders still do not appreciate that leaking or trading on material, non-public information is an offence. "People don't even know they are engaging in insider trading, for example if their friends are talking about it on the golf course," said Tong Daochi director-general for international affairs at the China Securities Regulatory Commission, during a regulation conference last month. "We try to tell society, what are the criminal issues, what are the insider trading issues? For example we have held 27 press conferences to tell the public what kind of activities are involved in insider trading and to let people know that this is an active crime." ($1 = 84.2600 Japanese yen) ($1 = 0.6147 British pounds)

Research In Motion shares tumbled more than 10 percent on Thursday after the company reported the first ever decline in its subscriber numbers and outlined plans to transform the way it charges for its BlackBerry services.
RIM, which hopes to revive its fortunes and reinvent itself via the launch of a brand new line of BlackBerry 10 devices next month, caught investors off-guard on its quarterly conference call, when it said it plans to alter its service revenue model - a move that will pressure the high-margin business that accounts for about a third of RIM's sales.
"RIM provided few details regarding the economics of these changes, thus adding a large cloud of uncertainty to the primary driver of its profitability, which we view as especially worrisome given risks already surrounding the firm's massive BlackBerry 10 transition," said Morningstar analyst Brian Colello.
Those subscribers who need enhanced services like advanced security will pay for these services, while those who do not use such services will generate much lower to no service revenue, RIM Chief Executive Thorsten Heins told analysts and investors on a conference call on Thursday.
"I want to be very clear on this. Service revenues are not going away, but our business model and service offerings are going to evolve ... The mix in level of service fees revenue will change going forward and will be under pressure over the next year," cautioned Heins.
The news startled investors, who had earlier in the evening pushed RIM's stock more than 7 percent higher in post-market trading, after the company reported a narrower-than-expected quarterly loss and said it boosted its cash cushion ahead of next month's crucial launch of the BlackBerry 10 smartphone.
RIM's shares have for weeks been on a tear as optimism around BB10 has grown. Following RIM's surprise announcement on service revenues, however, the stock ended 9 percent lower at $12.85 in trading after the closing bell.
Analysts also expressed concern about the decline in RIM's subscriber base.
"The early reaction was probably just 'Hey, numbers looked OK, better loss, the cash flow was good' but if you know the company, you're looking at the subscriber base falling off," said Mark McKechnie at Evercore Partners in San Francisco.
CASH BALANCE
One reason the shares rose earlier was RIM managed to build up its cash cushion to $2.9 billion from $2.3 billion in the previous quarter.
Analysts have been keeping a sharp eye on the size of RIM's cash pile, as RIM will need the funds to manufacture and effectively promote BlackBerry 10 in a crowded market.
RIM is counting on the new line to claw back market share lost in recent years to the likes of Apple Inc's iPhone and a slew of devices powered by Google Inc's Android operating system.
"They've done a great job at generating cash," said Raymond James analyst Tavis McCourt in Nashville. "They're certainly in a much better position than they were three or four quarters ago."
The Waterloo, Ontario-based company said it is now testing its BB10 devices with more than 150 carriers - up from about 50 carriers as of the end of October. RIM expects more carriers to come on board ahead of the formal launch of BB10 on January 30.
Positive feedback from developers and carriers around RIM's new BlackBerry 10 devices has buoyed the stock in the last three months. Despite the plunge in RIM's share price on Thursday, the stock has more than doubled in value the last three months.
SMALLER-THAN-EXPECTED LOSS
On an operating basis, RIM fared a little better than Wall Street had expected. It reported a loss of $114 million or 22 cents a share, excluding one-time items. Analysts, on average, had forecast a loss of 35 cents a share, according to Thomson Reuters I/B/E/S.
RIM also reported a surprise net profit of $9 million, or 2 cents a share, for its fiscal third quarter ended December 1, on the back of a one-time income tax related gain. That compared with a year-ago profit of $265 million, or 51 cents.
RIM said it shipped 6.9 million smartphones in the quarter, even as its subscriber base fell to about 79 million in the quarter from about 80 million in the period ended September 1.
In recent years, RIM's user base has grown, even as the BlackBerry lost ground in North America and Europe, boosted by gains in emerging markets. While eye opening, the shrinkage was not as bad as some observers expected during the last quarter before the BB10 launch.
"We're encouraged that the subscriber base only declined slightly during a very public transition, and BlackBerry sales were about what we expected," said Morningstar's Colello, who is based in Chicago.

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Insiders steal a march in leak prone Asian markets

When South Korean automaker Hyundai Motor Co announced last month it had overstated the fuel efficiency levels on around one million of its cars in the United States and Canada some investors were left fuming more than others.
Some had already sold their shares before the announcement on November 2. The stock fell 4 percent on November 1 with about 2.2 million shares changing hands, the highest trading volume of the year at that point.
"This smells pretty bad," said Robert Boxwell, director of consulting firm Opera Advisors in Kuala Lumpur who has studied insider dealing patterns.
"It would have fallen into our suspect trading category," he added.
Boxwell spots suspect trading by looking at how much the volume diverges from the average level in the days before a market moving announcement. In the Hyundai instance, the volume was more than five standard deviations, a measure of variation, away from the daily average of 598,741 shares over the past year.
A Hyundai spokeswoman declined to comment.
Research from the Capital Markets Co-operative Research Centre (CMCRC), an academic centre in Sydney that studies financial market efficiency, found that 26 percent of price-sensitive announcements in Asia Pacific markets showed signs of leakage in the first quarter of this year, the most recent period for which data was available.
That compared with 13 percent in North American markets.
The CMCRC says it looks for suspected information leaks by examining abnormal price moves and trading volumes ahead of price-sensitive announcements.
Investors say one reason for leaks in Asia has been low enforcement rates for insider trading and breaches of disclosure rules. Enforcement in some markets is virtually non-existent.
There are also misconceptions about whether trading on non-public information is a crime.
"The idea that insider trading is wrong rather than smart is only being ingrained in the current generation of Asian players, not the older generation who are often still in the driving seat," said Peter Douglas, founder of GFIA, a hedge fund consultancy in Singapore.
LOSS OF CONFIDENCE
Japan's largest investment bank Nomura Holdings was embarrassed this year after regulatory investigations found it leaked information to clients ahead of three public share offerings.
Nomura has acknowledged that its employees leaked information on three share issues it underwrote in 2010. In June, it published the results of an internal investigation that found breaches of basic investment banking safeguards against leaking confidential information and announced a raft of measures to prevent recurrence.
The bank was also fined 200 million yen ($2.37 million) by the Tokyo Stock Exchange and 300 million yen by the Japan Securities Dealers Association.
Such leaks hurt companies' share prices in the long run because investors put in less money if they feel they are not on a level playing field.
"It is very damaging. You may not know how much money you've lost but if there is not confidence that the regulators are prosecuting and enforcing the rules on this then it undermines investor confidence and liquidity," said Jamie Allen, secretary general of the Asian Corporate Governance Association.
The issue isn't being ignored. Many Asian markets such as Hong Kong and China have tightened their rules on insider trading over the past decade.
Indeed some investors feel that while leaks and insider dealing are unfair, regulators in the region have more serious issues they should be tackling.
"I would like to see the regulators spend more resources on investigating and prosecuting fraud against listed companies, which severely damages shareholder value," said David Webb, a corporate governance activist in Hong Kong, arguing insider dealing as less of an impact on a company's long-term share price.
HTC AND APPLE
A week after Hyundai's announcement about its problems in the United States, there was an unexpected move on the Taiwan Stock Exchange.
Shares in smartphone maker HTC Corp jumped almost seven percent on Friday, November 9, hitting the daily upper trading limit. On Sunday came the surprise announcement that the company was ending its long-running patent dispute with Apple Inc , a move seen as a positive for the stock.
The Taiwan bourse announced it was investigating the trading patterns to see if there was a possible leak.
When asked for comment, HTC referred back to a November 13 statement in which the company said it had kept the Apple settlement process confidential and has strict controls on insider trading.
Michael Lin, a spokesman for the Taiwan Exchange, told Reuters on Friday that the bourse is still working with the regulator on the case.
'ENORMOUS LOSSES'
Michael Aitken, who oversees research at the CMCRC, said many other Asian markets lack tough enough rules to force information to be released as efficiently and timely as possible, a primary reason for the prevalence of leaks.
"Poor regulation hampers enforcement efforts," he said pointing out that few markets have the "continuous disclosure" rules used in Australia which require listed companies to release material information as soon as possible.
In Korea, when Hyundai shares started to fall, rumours began swirling that news about a problem with some of its cars was on its way, but investors say it took the company too long to disclose what exactly was happening.
"Hyundai at that time did not confirm the rumours. We suffered enormous losses because of this," said one fund manager, who declined to be named because he was not authorised to speak to the media.
An official from Korea Exchange declined to comment on whether it was investigating this case, saying only that the exchange looks carefully into possible cases of insider trading.
Across Asia, regulators concede that many company executives and insiders still do not appreciate that leaking or trading on material, non-public information is an offence.
"People don't even know they are engaging in insider trading, for example if their friends are talking about it on the golf course," said Tong Daochi director-general for international affairs at the China Securities Regulatory Commission, during a regulation conference last month.
"We try to tell society, what are the criminal issues, what are the insider trading issues? For example we have held 27 press conferences to tell the public what kind of activities are involved in insider trading and to let people know that this is an active crime." ($1 = 84.2600 Japanese yen) ($1 = 0.6147 British pounds)

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