Former Lab Technician Denies Faulty DNA Work in Rape Cases

A former New York City laboratory technician whose work on rape cases is now being scrutinized for serious mistakes said on Friday that she had been unaware there were problems in her work and, disputing an earlier report, denied she had resigned under pressure.

The former lab technician, Serrita Mitchell, said any problems must have been someone else’s.

“My work?” Ms. Mitchell said. “No, no, no, not my work.”

Earlier, the city medical examiner’s office, where Ms. Mitchell said she was employed from 2000 to 2011, said it was reviewing 843 rape cases handled by a lab technician who might have missed critical evidence.

So far, it has finished looking over about half the cases, and found 26 in which the technician had missed biological evidence and 19 in which evidence was commingled with evidence from other cases. In seven cases where evidence was missed, the medical examiner’s office was able to extract a DNA profile, raising the possibility that detectives could have caught some suspects sooner.

The office declined to identify the technician. Documents said she quit in November 2011 after the office moved to fire her, once supervisors had begun to discover deficiencies in her work. A city official who declined to be identified said Ms. Mitchell was the technician.

However, Ms. Mitchell, reached at her home in the Bronx on Friday, said she had never been told there were problems. “It couldn’t be me because your work gets checked,” she said. “You have supervisors.”

She also said that she had resigned because of a rotator cuff injury that impeded her movement. “I loved the job so much that I stayed a little longer,” she said, explaining that she had not expected to stay with the medical examiner’s office so long. “Then it was time to leave.”

Also on Friday, the Legal Aid Society, which provides criminal defense lawyers for most of the city’s poor defendants, said it was demanding that the city turn over information about the cases under review.

If needed, Legal Aid will sue the city to gain access to identifying information about the cases, its chief lawyer, Steven Banks, said, noting that New York was one of only 14 states that did not require routine disclosure of criminal evidence before trial.

Disclosure of the faulty examination of the evidence is prompting questions about outside review of the medical examiner’s office. The City Council on Friday announced plans for an emergency oversight committee, and its members spoke with outrage about the likelihood that missed semen stains and “false negatives” might have enabled rapists to go unpunished.

“The mishandling of rape cases is making double victims of women who have already suffered an indescribably horrific event,” said Christine C. Quinn, the Council speaker.

A few more details emerged Friday about a 2001 case involving the rape of a minor in Brooklyn, in which the technician missed biological evidence, the review found. The victim accused an 18-year-old acquaintance of forcing himself on her, and he was questioned by the police but not charged, according to a law enforcement official.

Unrelated to the rape, he pleaded guilty in 2005 to third-degree robbery and served two years in prison. The DNA sample he gave in the robbery case was matched with the one belatedly developed from evidence the technician had overlooked in the 2001 rape, law enforcement officials said. He was recently indicted in the 2001 rape.

Especially alarming to defense lawyers was the possibility that DNA samples were cross-contaminated and led to false convictions, or could do so in the future.

“Up to this point,” Mr. Banks said, “they have not made information available to us, as the primary defender in New York City, to determine whether there’s an injustice that’s been done in past cases, pending cases, or allowing us to be on the lookout in future cases.” He added, “If it could happen with one analyst, how does anyone know that it stops there?”

The medical examiner’s office has said that the risk of cross-contamination was extremely low and that it does not appear that anyone was wrongly convicted in the cases that have been reviewed so far. And officials in at least two of the city’s district attorneys’ offices — for Brooklyn and Manhattan — said they had not found any erroneous convictions.

But Mr. Banks said the authorities needed to do more, and that their statements thus far were the equivalent of “trust us.”

“Given what’s happened,” he said, “that’s cold comfort.”

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Business Briefing | Retailing: Best Buy Shares Rally on Improved Holiday Sales

The Best Buy Company had better-than-expected holiday sales, setting off a gain of $2, or 16.4 percent, in its stock price, to $14.21 a share on Friday. The holiday quarter accounted for about a third of Best Buy’s revenue last year. The chain said that revenue at stores open at least a year fell 1.4 percent for the nine weeks ended Jan. 5. The company’s performance in the United States was flat. The chief executive, Hubert Joly, said in a statement that the result was better than the last several quarters. A Morningstar analyst, R. J. Hottovy, said the results showed that some of Best Buy’s initiatives, like more employee training and online price matching helped increase sales.

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Palestinians Set Up Camp in Israeli-Occupied West Bank Territory

JERUSALEM — Adopting a tactic more commonly employed by Jewish settlers who establish wildcat outposts in the West Bank, scores of Palestinian activists and international supporters erected tents on Friday in a hotly contested piece of Israeli-occupied West Bank territory known as E1, and said they intended to stay put.

The Palestinians claim E1, just east of Jerusalem, as part of a future state. The protest comes six weeks after Israel announced that it was moving forward with plans for thousands of settlement homes in E1, stirring international outrage.

Israeli military authorities arrived on Friday and handed the protesters notices warning them that they were illegally trespassing and that they had to leave, according to a police spokesman, Micky Rosenfeld. Mr. Rosenfeld said he expected some movement “at some point,” with the protesters either leaving voluntarily or being removed by Israeli security forces.

But the protesters said that they had anticipated such action and that their lawyers had already gone to court in Israel to argue for a delay in any evacuation until the state details the grounds for such a move. Protest leaders said the court had given the state six days to respond.

About 200 activists began pitching tents on a hill in the barren, stony territory on Friday morning, and issued a statement announcing the establishment of a village named Bab Al Shams (Arabic for “gate of the sun”), after the title of a novel by a Lebanese writer, Elias Khoury, that portrays Palestinian yearnings through a metaphorical story of love for the land.

Israeli plans to build in E1 have been vehemently opposed for years by international players, including the United States, which say construction there would partially separate the northern and southern West Bank, harming the prospects of a viable contiguous Palestinian state in that territory. Israel announced its intention as a countermeasure after the United Nations General Assembly voted in November to upgrade the Palestinians’ status to that of a nonmember observer state.

Israel wants to create contiguity between East Jerusalem, which it has annexed, and the large urban settlement of Maale Adumim that lies beyond E1, and says that the future of the West Bank has to be settled in negotiations. In the meantime, critics say, Israel continues to establish facts on the ground.

“We are here as a response to the settlers and to the Israeli policy of settlement expansion,” said Muhammad Khatib, a veteran member of the grass-roots Palestinian Popular Struggle Coordination Committee and a resident of Bilin. That West Bank village became a symbol of Palestinian defiance after it held weekly protests and won a ruling in the Israeli Supreme Court in 2007 forcing Israel to reroute its West Bank barrier so as to take in less of the village’s agricultural land.

“Now I am one of the people of Baba Al Shams,” said Mr. Khatib, speaking by telephone from the protest site. “We want to stay here forever.”

Mr. Khatib said that the police were stopping people and supplies from entering the site, but that the campers had come prepared. He added that if the Israeli security forces came to evict the protesters, “we will resist in our nonviolent way.”

Israel says that most of the E1 area is Israeli land. Protest leaders said they had set up their encampment on a parcel of land owned by a Palestinian family from A-Tur, a neighborhood of East Jerusalem. They added that the landowners had given their full permission for the encampment and had joined the activists at the site.

About 25 tents were set up Friday, including one serving as a clinic and one for the “village administration,” according to Abir Kopty, a spokeswoman for the coordination committee, who also spoke by telephone from the encampment.

“We call this a village, not an outpost,” Ms. Kopty said, “because there is a huge difference between Palestinians living on their own land and settlers building illegally on our occupied land.”

Hanan Ashrawi, a member of the Palestine Liberation Organization’s executive committee, said in a statement: “This initiative is a highly creative and legitimate nonviolent tool to protect our land from Israeli colonial plans. We have the right to live anywhere in our state, and we call upon the international community to support such initiatives.”

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U.S. warns on Java software as security concerns escalate

(Reuters) - The U.S. Department of Homeland Security urged computer users to disable Oracle Corp's Java software, amplifying security experts' prior warnings to hundreds of millions of consumers and businesses that use it to surf the Web.

Hackers have figured out how to exploit Java to install malicious software enabling them to commit crimes ranging from identity theft to making an infected computer part of an ad-hoc network of computers that can be used to attack websites.

"We are currently unaware of a practical solution to this problem," the Department of Homeland Security's Computer Emergency Readiness Team said in a posting on its website late on Thursday.

"This and previous Java vulnerabilities have been widely targeted by attackers, and new Java vulnerabilities are likely to be discovered," the agency said. "To defend against this and future Java vulnerabilities, disable Java in Web browsers."

Oracle declined to comment on the warning on Friday.

Java is a computer language that enables programmers to write software utilizing just one set of code that will run on virtually any type of computer, including ones that use Microsoft Corp's Windows, Apple Inc's OS X and Linux, an operating system widely employed by corporations.

Computer users access Java programs through modules, or plug-ins, that run Java software on top of browsers such as Internet Explorer and Firefox.

The U.S. government's warning on Java came after security experts warned earlier on Thursday of the newly discovered flaw.

It is relatively rare for government agencies to advise computer users to completely disable software due to a security bug, particularly in the case of widely used programs such as Java. They typically recommend taking steps to mitigate the risk of attack while manufacturers prepare an update, or hold off on publicizing the problem until an update is prepared.

In September, the German government advised the public to temporarily stop using Microsoft's Internet Explorer browser to give it time to patch a security vulnerability that opened it to attacks.

The Department of Homeland Security said attackers could trick targets into visiting malicious websites that would infect their PCs with software capable of exploiting the bug in Java.

It said an attacker could also infect a legitimate website by uploading malicious software that would infect machines of computer users who trust that site because they have previously visited it without experiencing any problems.

They said developers of several popular tools, known as exploit kits, which criminal hackers use to attack PCs, have added software that allows hackers to exploit the newly discovered bug in Java to attack computers.

Security experts have been scrutinizing the safety of Java since a similar security scare in August, which prompted some of them to advise using the software only on an as-needed basis.

At the time they advised businesses to only allow their workers to use Java browser plug-ins when prompted for permission by trusted programs such as GoToMeeting, a Web-based collaboration tool from Citrix Systems Inc.

Adam Gowdiak, a researcher with Polish security firm Security Explorations, subsequently said he had found other security bugs in Java that continued to make computers vulnerable to attack.

Java suffered another setback in October when Apple began removing old versions of the software from Internet browsers of Mac computers when its customers installed new versions of its OS X operating system. Apple did not provide a reason for the change and both companies declined comment at the time.

(Editing by Scott Malone, Steve Orlofsky and Bernadette Baum)

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Seattle bankruptcy hearing to decide Tully's sale

SEATTLE (AP) — The auction for beleaguered coffee company Tully's will likely conclude Friday in federal bankruptcy court, with an ownership group led by actor Patrick Dempsey in position to take over the chain. But Starbucks isn't' out of the running.

Dempsey — dubbed "McDreamy" in the "Grey's Anatomy" hospital TV drama — claimed victory last week after an auction.

But a company that teamed up with Starbucks to bid for the Tully's chain filed an objection Wednesday. AgriNurture Inc. says it's still willing to proceed with its combined bid with Starbucks of about $10.6 million. The bid from Dempsey's company, Global Baristas LLC, was for $9.2 million.

Tully's has 47 shops in Washington and California with more than 500 employees. It filed for Chapter 11 bankruptcy protection in October.

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The New Old Age Blog: Taking a Zen Approach to Caregiving

You try to help your elderly father. Irritated and defensive, he snaps at you instead of going along with your suggestion. And you think “this is so unfair” and feel a rising tide of anger.

How to handle situations like this, which arise often and create so much angst for caregivers?

Jennifer Block finds the answer in what she calls “contemplative caregiving” — the application of Buddhist principles to caregiving and the subject of a year-long course that starts at the San Francisco Zen Center in a few weeks.

This approach aims to cultivate compassion, both for older people and the people they depend on, said Ms. Block, 49, a Buddhist chaplain and the course’s lead instructor. She’s also the former director of education at the Zen Hospice project in San Francisco and founder of the Beyond Measure School for Contemplative Care, which is helping develop a new, Zen-inspired senior living community in the area.

I caught up with Ms. Block recently, and what follows is an edited transcript of our conversation.

Let’s start with your experience. Have you been a caregiver?

My experience in caregiving is as a professional providing spiritual care to individuals and families when they are facing and coping with aging and sickness and loss and dying, particularly in hospital and hospice settings.

What kinds of challenges have you witnessed?

People are for the most part unprepared for caregiving. They’re either untrained or unable to trust their own instincts. They lack confidence as well as knowledge. By confidence, I mean understanding and accepting that we don’t know all the answers – what to do, how to fix things.

This past weekend, I was on the phone with a woman who’d brought her mom to live near her in assisted living. The mom had been to the hospital the day before. My conversation with the daughter was about helping her see the truth that her mother needed more care and that was going to change the daughter’s responsibilities and her life. And also, her mother was frail, elderly, and coming nearer to death.

That’s hard, isn’t it?

Yes, because we live in a death-denying society. Also, we live in a fast-paced, demanding world that says don’t sit still — do something. But people receiving care often need most of all for us to spend time with them. When we do that, their mortality and our grief and our helplessness becomes closer to us and more apparent.

How can contemplative caregiving help?

We teach people to cultivate a relationship with aging, sickness and dying. To turn toward it rather than turning away, and to pay close attention. Most people don’t want to do this.

A person needs training to face what is difficult in oneself and in others. There are spiritual muscles we need to develop, just like we develop physical muscles in a gym. Also, the mind needs to be trained to be responsive instead of reactive.

What does that mean?

Here’s an example. Let’s say you’re trying to help your mother, and she says something off-putting to you like “you’ve always been terrible at keeping house. It’s no wonder you lost my pajamas.”

The first thing is to notice your experience. To become aware of that feeling, almost like being slapped emotionally. To notice your chest tightening.

Then I tell people to take a deep breath. And say something to themselves like “soften” to address that tightness. That’s how you can stay facing something uncomfortable rather than turning away.

If I were in this position, I might say something to myself like “hello unhappiness” or “hello suffering” or “hello aging” to tether myself.

The second step would be curiosity about that experience. Like, wow, where do I feel that anger that rose up in me, or that fear? Oh, it’s in my chest. I’m going to feel that, stay with it, investigate it.

Why is that important?

Because as we investigate something we come to understand it. And, paradoxically, when we pay attention to pain it changes. It softens. It moves. It lessens. It deepens. And we get to know it and learn not to be afraid of it or change it or fix it but just come alongside of it.

Over hours, days, months, years, the mind and heart come to know pain. And the response to pain is compassion — the wish for the alleviation of pain.

Let’s go back to what mother said about your housekeeping and the pajamas. Maybe you leave the room for five minutes so you can pay attention to your reaction and remember your training. Then, you can go back in and have a response rather than a reaction. Maybe something like “Mom, I think you’re right. I may not be the world’s best housekeeper. I’m sorry I lost your pajamas. It seems like you’re having a pretty strong response to that, and I’d like to know why it matters so much to you. What’s happening with you today?”

Are other skills important?

Another skill is to become aware of how much we receive as well as give in caregiving. Caregiving can be really gratifying. It’s an expression of our values and identity: the way we want the world to be. So, I try to teach people how this role benefits them. Such as learning what it’s like to be old. Or having a close, intimate relationship with an older parent for the first time in decades. It isn’t necessarily pleasant or easy. But the alternative is missing someone’s final chapter, and that can be a real loss.

What will you do in your course?

We’ll teach the principles of contemplative care and discuss them. We’ll have homework, such as ‘Bring me three examples of someone you were caring for who was caring toward you in return.’ That’s one way of practicing attention. And people will train in meditation.

We’ll also explore our own relationship to aging, sickness, dying and loss. We’ll tell our stories: this is the situation I was in, this is where I felt myself shut down, this was the edge of my comfort or knowledge. And we’ll teach principles from Buddhism. Equanimity. Compassion. Deep inner connectedness.

What can people do on their own?

Mindfulness training is offered in almost every city. That’s one of the core components of this approach.

I think every caregiver needs to have their own caregiver — a therapist or a colleague or a friend, someone who is there for them and with whom they can unburden themselves. I think of caregiving as drawing water from a well. We need to make sure that we have whatever nurtures us, whatever supplies that well. And often, that’s connecting with others.

Are other groups doing this kind of work?

In New York City, the New York Zen Center for Contemplative Care educates the public and professionals about contemplative care. And in New Mexico, the Upaya Zen Center does similar work, much of it centered around death and dying.

People who want to read about this might want to look at a new book of essays, “The Arts of Contemplative Care: Pioneering Voices in Buddhist Chaplaincy and Pastoral Work” (Wisdom Publications, 2012).

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DealBook: Client Redemptions Loom for SAC Capital

12:46 p.m. | Updated

The hedge fund giant SAC Capital Advisors is steeling itself for a possible wave of withdrawal requests from clients amid the government’s intensifying scrutiny of its trading practices.

Investors have about a month to decide whether to pull out money from SAC, the $14 billion fund owned by the billionaire investor Steven A. Cohen.

While posting one of the best investment track records on Wall Street across two decades, SAC has attracted billions of dollars from pension funds, wealthy families and other money management firms. But since late November, when federal prosecutors brought its latest criminal insider trading charge against a former SAC employee — a case that it calls the most lucrative insider trading scheme ever uncovered — those clients are weighing whether continuing their relationship with the fund is worth the reputational risk.

The fund has a standard quarterly redemption deadline, and the next one will fall on Feb. 15. Already, several of SAC’s clients, including Lyxor Asset Management and Titan Advisors, have notified the fund that they intend to withdraw their money. Others, like Skybridge Capital, have told SAC they will continue to invest with the fund.

Questions remain about the intentions of several of SAC’s well-known clients, including Blackstone Group, one of the world’s largest and most influential allocators to hedge funds. Blackstone has about $550 million invested in SAC, making it one of the fund’s largest outside investors. A Blackstone spokesman declined to comment.

The fund has told its employees that it could face at least $1 billion of withdrawals, according to a report in The Wall Street Journal on Friday. A spokesman for SAC said it was “far too early to speculate about redemptions, and we do not expect redemptions to have a significant impact on our funds.”

Any withdrawals from clients would come after a year of decent performance for SAC. In 2012 the firm returned about 13 percent net of fees, which while slightly underperforming the Standard & Poor’s 500 stock market index, is superior to the results of the average hedge fund.

While a spate of redemptions can have a crippling effect on a hedge fund by forcing it to sell its holdings at unfavorable prices, SAC is more insulated than most of its competitors from the ill effects of client withdrawals. That is because of the $14 billion that SAC manages, only about 40 percent of that comes from outside clients. The rest — a fortune of about $8 billion — belongs to Mr. Cohen and his employees.

Also, SAC has protected itself with a stringent redemption policy. The fund’s clients can redeem only 25 percent of their investment each quarter. So, for example, if a client has $200 million invested with SAC, and asks for its money back by the Feb. 15 deadline, SAC would return $50 million every three months beginning in March. That way, SAC is protected from having a forced liquidation of its investment portfolio.

Still, an investor exodus can have a crippling effect on a hedge fund, often causing it to shut down. Last month, Diamondback Capital Management, another hedge fund that became ensnared in the government’s insider trading investigation, closed after its investors sought to pull out roughly one-quarter of the fund’s assets.

Diamondback’s management decided that the most prudent course of action was to wind down rather than reorganize the firm to manage the reduced amount of money.

Like Diamondback, SAC has become embroiled in the government’s broad crackdown on insider trading at hedge funds. At least seven former SAC traders and analysts have been tied to illegal trading while at the fund. And the Securities and Exchange Commission has warned SAC that it might filed a civil action against the fund for failing to properly supervise its employees.

Mr. Cohen has told his employees that he believes he and his fund have at all times acted appropriately, and that the fund has fully cooperated with the government’s investigation.

In recent weeks, SAC has gone on a charm offensive in an attempt to hold on to clients. The fund has told its investors that they would not be responsible for any penalties incurred as a result of any of the government’s legal inquiry. Instead, SAC has told them, Mr. Cohen and his management company would pick up the costs.

There have also been changes at the fund. SAC last week told its staff that it was closing its office in Chicago, which is home to about a dozen employees. Such a move is not unusual, as the fund has closed offices before, such as San Francisco, where it saw limited opportunities.

A spokesman said it didn’t make sense to have an office in Chicago. SAC has more than 1,000 employees – portfolio managers, analysts, traders, and support staff – in five offices across the globe, with its headquarters in Stamford, Conn.

Though Mr. Cohen has told his friends and employees that he remains committed to managing money for outside clients, he could decide to follow in the footsteps of several fellow billionaire hedge fund managers.

A number of star investors, having already amassed billions in personal wealth, have decided to get out of the business of managing other people’s money. In recent years, for example, both George Soros and his onetime protégé, Stanley Druckenmiller, returned money to clients and set up so-called family offices to manage their own fortunes.

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Minister Pulls Out of Inauguration After Outcry

WASHINGTON – The Christian minister selected by President Obama to deliver the benediction at his inaugural this month has withdrawn from the program amid a storm of controversy over remarks he made about homosexuality in a sermon in the mid-1990s, according to a source close to the inaugural committee.

The minister, the Rev. Louie Giglio, founder of the Passion Conferences, an Atlanta organization that brings college students together in prayer and worship, withdrew Thursday morning, a day after the sermon came to light.

In it, Mr. Giglio called on fellow Christians to fight the “aggressive agenda” of the gay-rights movement, and advocated “the healing power of Jesus” as “the only way out of a homosexual lifestyle” – a comment some gay-rights advocates interpreted as an endorsement of reparative, or so-called gay-to-straight conversion, therapy, as a supposed cure for homosexuality

An official with Mr. Obama’s Presidential Inaugural Committee said the committee, which operates separately from the White House, vetted Mr. Giglio. People familiar with internal discussions between administration and committee officials said the White House viewed the selection as a problem for Mr. Obama, and told the panel on Wednesday night to quickly fix it. By Thursday morning, Mr. Giglio said he had withdrawn without disavowing the comments.

“We were not aware of Pastor Giglio’s past comments at the time of his selection and they don’t reflect our desire to celebrate the strength and diversity of our country at this inaugural,” said Addie Whisenant, the spokeswoman for the Presidential Inaugural Committee. “Pastor Giglio was asked to deliver the benediction in large part for his leadership in combating human trafficking around the world. As we now work to select someone to deliver the benediction, we will ensure their beliefs reflect this administration’s vision of inclusion and acceptance for all Americans.”

The minister’s quick withdrawal highlights how sensitive the White House is to concerns over gay rights. It comes at a time when Mr. Obama’s candidate for defense secretary, Chuck Hagel, a former Nebraska senator, is under fire for comments he made about gay people in the 1990s; some activists said the administration could ill afford two controversies over gay rights at the same time.

“It was the right decision,” said Chad Griffin, president of the Human Rights Campaign, a Washington-based advocacy group. “Participants in the inaugural festivities should unite rather than divide. Choosing an affirming and fair-minded voice as his replacement would be in keeping with the tone the president wants to set for his inaugural.”

The Giglio controversy echoes a controversy over Mr. Obama’s 2009 inaugural, when he angered many gay people by selecting the Rev. Rick Warren, author of “The Purpose Driven Life" and an outspoken opponent of same-sex marriage, to deliver the benediction.

“I think this is actually a bigger deal than Rick Warren because this gentleman is in many ways much worse,” said Richard Socarides, who advised President Bill Clinton on gay issues. “Rick Warren was not a good choice but he is kind of in the mainstream of religious thinking, but this guy is really an outlier.”

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Lumia sales lift Nokia results, raise turnaround hopes

HELSINKI (Reuters) - Nokia said strong sales of Lumia smartphones helped its mobile phone business achieve underlying profitability in the fourth quarter, raising hopes the struggling handset maker may be past the worst.

The Finnish company, which has been losing market share to Samsung and Apple, said the better-than-expected result was also helped by cost cuts, a stronger-than-expected performance from its Nokia Siemens Networks unit and 50 million euros ($65.2 million) in patent royalties.

The surprise announcement lifted the shares to nine-month highs and eased pressure on Chief Executive Stephen Elop, who has been trying to prove his February 2011 decision to switch to Microsoft Windows software was the right one.

Elop was seen to be running out of time after saying that the transition would take two years. Success of the high-end Lumia smartphones has been considered crucial for the company's survival, and investors had said Elop would need to quit or change strategy if sales did not pick up by early 2013.

"We're very pleased with the Lumia response," Elop told analysts, although he added that sales of the latest 920 models, which use the new Windows Phone 8 software, had been constrained by a shortage of supplies.

Nokia estimated fourth-quarter operating margin in its mobile phone business was between break-even to 2 percent. It previously forecast the margin to be around minus 6 percent.

Official results, including more details on its profit and cash position, are due on January 24.

Fourth-quarter net sales in devices and services were about 3.9 billion euros ($5.09 billion), Nokia said. It sold a total of 86.3 million devices. Smartphones accounted for 6.6 million units, of which 4.4 million were the Windows-based Lumia handsets.

Nokia shares rose 10.8 percent to 3.32 euros as some investors cheered the rare positive announcement from Nokia and traders scrambled to cover their short positions.

Nokia had 17 percent of shares out on loan, according to Markit data, making it one of the most "shorted" stocks in Europe.

STILL NEED EVIDENCE

The company said that conditions remained tough despite the stronger-than-expected fourth quarter, and forecast its margin to be around minus 2 percent in the first quarter of this year.

"We continue to operate in a competitive environment with limited visibility," Elop said.

Some analysts were skeptical about the success of the Lumia strategy. Nokia would not say how many of the Lumias it sold were the newest models rather than the heavily discounted ones launched earlier.

Many also noted Lumias sold in the fourth quarter still make up a small portion of global smartphone sales in the same period, estimated at over 200 million.

"4.4 million Lumias sold is not yet a promise of a turnaround," said Inderes analyst Mikael Rautanen, who had just downgraded the shares to "sell" on Tuesday.

Bernstein analyst Pierre Ferragu said he was still negative about the shares, rating them "underperform".

"Last year, in order to sustain Lumia volumes, Nokia had to cut prices very rapidly, driving gross margins close to zero. We believe this will repeat this year," he said.

Redeye analyst Greger Johansson said it was too early to call it a turnaround.

"They will have to prove a lot more until you can say that," he said. "I'm not still convinced that they are going to manage to succeed with those new smartphones. They have to sell a lot more in volumes until you can say that."

($1 = 0.7667 euros)

(Additional reporting by Terhi Kinnunen and Sudip Kar-Gupta; Editing by David Goodman and Sophie Walker)

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'Lincoln' leads Oscars with 12 nominations

BEVERLY HILLS, Calif. (AP) — Steven Spielberg has matched his personal best at the Academy Awards: 12 nominations for his Civil War saga "Lincoln," including best picture, director and acting honors for Daniel Day-Lewis, Sally Field and Tommy Lee Jones.

That ties the 12 nominations for his 1993 drama "Schindler's List," which won seven Oscars, including best picture and director.

Also among the nine nominees for best picture Thursday: the old-age love story "Amour"; the Iran hostage thriller "Argo"; the independent hit "Beasts of the Southern Wild"; the slave-revenge narrative "Django Unchained"; the musical "Les Miserables"; the shipwreck story "Life of Pi"; the lost-souls romance "Silver Linings Playbook"; and the Osama bin Laden manhunt chronicle "Zero Dark Thirty."

"Life of Pi" surprisingly ran second with 11 nominations, ahead of "Zero Dark Thirty" and "Les Miserables," which had been considered potential front-runners.

"I thought we'd get a few, so this is really great for us," said "Life of Pi" director Ang Lee. "Eleven really surprised me. But it's a good surprise. I'm very happily surprised."

More surprising were snubs in the directing category, where three favorites missed out: Ben Affleck for "Argo" and past Oscar winners Kathryn Bigelow for "Zero Dark Thirty" and Tom Hooper for "Les Miserables." Bigelow was the first woman ever the win the directing Oscar for 2009's "The Hurt Locker," while Hooper won a year later for "The King's Speech."

The best-picture category also had surprising omissions. The acclaimed first-love tale "Moonrise Kingdom" was left out and only got one nomination, for original screenplay. Also snubbed for best-picture was "The Master," a critical favorite that did manage three acting nominations, for Joaquin Phoenix, Amy Adams and Philip Seymour Hoffman.

Two-time winner Spielberg earned his seventh directing nomination, and also in the mix are past winner Lee for "Life of Pi" and past nominee David O. Russell for "Silver Linings Playbook." The other slots went to surprise picks who are first-time nominees: Michael Haneke for his French-language "Amour" and Benh Zeitlin for "Beasts of the Southern Wild."

Oscar directing contenders often are identical or at least usually line up closely with those for the Directors Guild of America Awards. But only Spielberg and Lee made both lists this time. The Directors Guild also nominated Affleck, Bigelow and Hooper, but not Haneke, Russell or Zeitlin.

Haneke's "Amour" also was a best-picture surprise. The film, which won the top prize at last May's Cannes Film Festival, mainly had been considered a favorite in the foreign-language category, where it also was nominated. "Amour" had five nominations, including original screenplay and best-actress for Emmanuelle Riva.

"It is fulfilling to discover that a film has found the audience and critical acclaim that 'Amour' has garnered," Haneke said. "I have been very fortunate on both those fronts, but it is especially rewarding to discover that a film has found favor among one's industry peers who know, in particular, the effort that goes into getting a film — any film — made."

The year's second-biggest box-office hit, "The Dark Knight Rises," was shut out entirely, even for visual effects. The omission of its predecessor, "The Dark Knight," from best-picture consideration for 2008 was largely responsible for the expansion of the Oscar category from five nominees to 10 the following year. "The Dark Knight" had earned eight nominations and won two Oscars.

Chronicling Abraham Lincoln's final months as he engineers passage of the 13th Amendment abolishing slavery, "Lincoln" stars best-actor contender Day-Lewis in a monumental performance as the 16th president, supporting-actress nominee Field as the notoriously headstrong Mary Todd Lincoln and supporting-actor prospect Jones as abolitionist firebrand Thaddeus Stevens.

Joining Day-Lewis in the best-actor field are Bradley Cooper as a psychiatric patient trying to get his life back together in "Silver Linings Playbook"; Hugh Jackman as Victor Hugo's tragic hero Jean Valjean in "Les Miserables"; Phoenix as a Navy vet who falls in with a cult in "The Master"; and Denzel Washington as a boozy airline pilot in "Flight."

Cooper had been a bit of a longshot. John Hawkes, a potential best-actor favorite, missed out for his role as a man in an iron lung aiming to lose his virginity in "The Sessions."

Nominated for best actress are Jessica Chastain as a CIA operative hunting bin Laden in "Zero Dark Thirty"; Jennifer Lawrence as a troubled young widow struggling to heal in "Silver Linings Playbook"; Riva as an ailing woman tended by her husband in "Amour"; Quvenzhane Wallis as a spirited girl on the Louisiana delta in "Beasts of the Southern Wild"; and Naomi Watts as a mother caught up in a devastating tsunami in "The Impossible."

Best actress had a wild age range: Riva is the oldest nominee ever in the category at 85, while Wallis is the youngest ever at 9.

Along with Field, supporting-actress nominees are Adams as a cult leader's devoted wife in "The Master"; Anne Hathaway as an outcast mother reduced to prostitution in "Les Miserables"; Helen Hunt as a sex surrogate in "The Sessions"; and Jacki Weaver as an unstable man's doting mom in "Silver Linings Playbook."

Besides Jones, the supporting-actor contenders are Alan Arkin as a wily Hollywood producer in "Argo"; Robert De Niro as a football-obsessed patriarch in "Silver Linings Playbook"; Hoffman as a dynamic cult leader in "The Master"; and Christoph Waltz as a genteel bounty hunter in "Django Unchained."

"Family Guy" creator Seth MacFarlane, who will host the Feb. 24 Oscars, joined Emma Stone to announce the Oscar lineup, and he scored a nomination himself. He's up for original song for "Everybody Needs a Best Friend," the tune he co-wrote for his big-screen directing debut "Ted."

"That's kind of cool I got nominated," MacFarlane deadpanned at the announcement. "I get to go to the Oscars."

Walt Disney predictably dominated the animated-feature category with three of the five nominees: "Brave," ''Frankenweenie" and "Wreck-It Ralph." Also nominated were "ParaNorman" and "The Pirates! Band of Misfits."

"I'm absolutely blown away," ''Wreck-It Ralph" director Rich Moore said. "It is weird at 5:30 in the morning to hear Emma Stone say your name. It's surreal."

"Lincoln" is Spielberg's best awards prospect since his critical peak in the 1990s, when he won best-picture and directing Oscars for "Schindler's List" and a second directing Oscar for "Saving Private Ryan."

Spielberg's latest film could vault him, Day-Lewis and Field to new heights among Hollywood's super-elite of multiple Oscar winners.

A best-picture win for "Lincoln" would be Spielberg's second, while another directing win would be his third, a feat achieved only by Frank Capra and William Wyler, who each earned three directing Oscars, and John Ford, who received four.

"Lincoln" also was the ninth best-picture nominee Spielberg has directed, moving him into a tie for second-place with Ford. Only Wyler directed more best-picture nominees, with 13.

Day-Lewis and Field both have two lead-acting Oscars already, he for "My Left Foot" and "There Will Be Blood" and she for "Norma Rae" and "Places in the Heart." A third Oscar for either would put them in rare company with previous triple winners Ingrid Bergman, Walter Brennan, Jack Nicholson and Meryl Streep. Katharine Hepburn is the record-holder with four acting Oscars.

An Oscar for Jones would be his second supporting-actor prize; he previously won for "The Fugitive."

"Lincoln" composer John Williams — whose five Oscars include three for the music of three earlier Spielberg films, "Jaws," ''E.T. the Extra-terrestrial" and "Schindler's List" — earned his 43rd nomination for best score, extending his all-time record in the category.

The Oscars feature a best-picture field that ranges from five to 10 films depending on a complex formula of ballots from the 5,856 voting members of the Academy of Motion Picture Arts and Sciences.

Nominations in most categories are decided by ballots from members of specific academy branches — such as directors, writers or actors. All members are eligible to vote for best-picture nominees, and the entire academy can vote in every category for the actual Oscars, whose balloting begins Feb. 8.

Winners for the 85th Oscars will be announced Feb. 24 at a ceremony aired live on ABC from Hollywood's Dolby Theatre.

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AP entertainment writers Christy Lemire, Sandy Cohen, Anthony McCartney and Derrik Lang in Los Angeles and AP writer Jill Lawless in London contributed to this report.

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