Stock futures flat, but techs rally in premarket

NEW YORK (Reuters) - Stock index futures were flat on Wednesday, with investors reluctant to make big bets following a five-day rally that took major averages to levels not seen since December 2007.

Tech shares will be in focus with earnings due from tech heavyweight Apple and following strong results from both IBM and Google, which rallied in premarket trading and continued the string of major companies outperforming following results.

Investors were also cautious as they awaited another onslaught of earnings reports, including from Dow component McDonald's Corp . Apple Inc reports after the market's close and investors will scour that report for signs the company can continue to grow at an accelerated pace.

"The market has an upward bias because earnings have generally been better than most expected, but whether we take another leg up from here depends on Apple," said Oliver Purshe, president of Gary Goldberg Financial Services in Suffern, New York. "That is such a heavily watched stock that if it doesn't come out with strong numbers we could take a pause."

Google Inc rose 5.1 percent to $738.61 in light premarket trading a day after the search giant's core Internet business outpaced expectations. Revenue was also higher than expected.

International Business Machines Corp late Tuesday forecast better-than-anticipated 2013 results and also posted fourth-quarter earnings and revenue that beat expectations. The results helped to allay concerns about the tech sector that arose when Intel Corp gave a weak outlook last week. IBM, which is a Dow component, rose 3.9 percent to $203.81 before the bell.

Dow component United Technologies Corp reported earnings that fell from the prior year, hurt by large restructuring charges.

Coach Inc slumped 12 percent to $53.20 before the bell after reporting sales that missed expectations.

According to the latest Thomson Reuters data, of the 74 S&P 500 companies that have reported earnings so far, 62.2 percent have topped expectations, roughly even with the 62 percent average since 1994, but below the 65 percent average over the past four quarters.

Overall, S&P 500 fourth-quarter earnings rose 2.6 percent, according to Thomson Reuters data. That estimate is above the 1.9 percent forecast from the start of earnings season, but well below the 9.9 percent fourth-quarter earnings forecast from October 1, the data showed.

S&P 500 futures fell 1.8 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 3 points and Nasdaq 100 futures rose 4 points.

Both the S&P 500 and Dow Jones industrial average hit five-year closing highs on Tuesday, and recent gains have largely been fueled by a strong start to the earning season. The S&P has jumped 6.4 percent over the past four weeks.

Republican leaders in the U.S. House of Representatives aim on Wednesday to pass a bill to extend the U.S. debt limit by nearly four months, to May 19. The White House welcomed the move, saying it would remove uncertainty about the issue.

The debt limit issue has been viewed as a market overhang for the past few weeks, with many investors worried that if no deal is reached to raise the limit, it could have a negative impact on the economy.

"We're raising our year-end target from 1,535 to about 1,575, in part because of the strong fourth-quarter earnings, but also because with the debt ceiling off the table that's a headwind removed from the market," Purshe said.

(Editing by W Simon and Kenneth Barry)

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IHT Rendezvous: Taiwan's Diverse Literature and History on Show in Two New Museums

TAINAN — Two new museums in Tainan, a city in Taiwan’s south, say much about how the island’s people have worked in recent years to build an unusually inclusive cultural identity, a model for Chinese-speaking societies, as I write in my Letter from Taiwan this week.

At the National Museum of Taiwan Literature, founded in 2003, exhibits explore the writing, film and music of indigenous cultures such as the Siraya, and of speakers of Taiyu, Holo and Hakka. (The name “Taiwan” is widely believed to come from the Sirayan word for a port in the south of the island, Tayovan.)

Another exhibit, “The Inner World of Taiwan Literature,” shows diverse voices from both before and after the Chinese Nationalists moved their seat of government to Taiwan in 1949.

Page Two

Posts written by the IHT’s Page Two columnists.

The National Museum of Taiwan History opened at the end of 2011. Its vision is “To protect Taiwan, our homeland, and to creating a single diverse and harmonious society,” as it says on its Web site, and offers exhibits such as “Taiwan Memories: A Century of Life,” and “On the Tracks of Anthroplogists,” an exhibit of Taiwan anthropology.

At the museum’s opening, its director, Lu Li-cheng, noted its tens of thousands of objects of local cultural life, and the museum’s emphasis on the interactions among ethnic groups in Taiwan through history.

“Of particular note is the collection of historic maps, charts and documents that the museum has obtained from foreign collectors,” Taiwan Today reported, quoting Mr. Li: “They will provide us with different viewpoints from which to look at Taiwan’s history.”

As Mark Harrison, a Taiwan specialist at the University of Tasmania, said in a telephone interview, it’s all part of Taiwanese people’s attempts to build an inclusive society.

“Taiwan’s history is very complex, and it’s a very strange history,’’ said Mr. Harrison. “In that history, there have been whole periods erased by various regimes,” as they asserted power over the island, including the Qing dynasty from China, the Japanese colonialists and, finally, the Nationalists.

“What’s been really interesting about Taiwan,’’ he said, “is how it has gone about recovering its history and understanding itself, and many nations could learn from that.’’

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First “Firefox OS” Phones Previewed, to Launch in February

Mozilla, the non-profit organization behind the popular Firefox web browser, has been promoting its Firefox OS project (once known as “Boot to Gecko”) for some time now. A hardware partnership with Telefonica, the international telecom giant, had been announced, but no phones had yet been unveiled.

But in an announcement today on its blog, Mozilla announced the impending launch of its first “developer preview” phones, the Keon and the Peak. Made in partnership with Geeksphone, a Spanish smartphone producer which used to make Android phones, these devices are meant to help app developers preview their work on the small screen. But they may also serve as a sneak preview of Mozilla’s plan to enter the smartphone market.

Introducing Firefox OS

Designed as an alternative to Google’s Android for low-powered smartphones, Firefox OS’ claim to fame is that it’s “built entirely using open web standards,” or open-source code written in the programming languages which make up the web, like JavaScript. Likewise, Firefox OS apps are websites specially formatted to look and feel like apps, and to respond to touchscreen controls and access phone features like vibration and the GPS.

A selection of Firefox apps is already available in the Mozilla Marketplace, but developers will eventually be able to take the open-source code behind it and create their own app markets like it if they so choose. These apps also run on the preview “Aurora” version of Firefox for Android, which is available for download from Mozilla’s website.

“Say ‘hola’” to the Keon and Peak

The Keon is Mozilla’s entry-level developer smartphone, while the Peak has somewhat more modern hardware specs.

The Keon has a 1 GHz Snapdragon processor, 512 MB of RAM, a 3.5-inch touchscreen, and 4 GB of flash memory, plus a microSD card slot to expand storage space. Its built-in camera is a basic 3-megapixel shooter, and lacks an LED flash. It’s roughly comparable to 2010′s iPhone 4 in terms of raw hardware specs, although it probably won’t be able to play the same kinds of 3D games since they’ll be written as web applications.

The Peak has a dual-core 1.2 GHz processor, a 4.3-inch IPS display, and an 8-megapixel camera with a flash, plus a 2-megapixel front-facing camera. It has the same amount of RAM and flash storage as the Keon does, though.

Both the Keon and the Peak are unlocked GSM smartphones, which may mean they will work on AT&T and T-Mobile’s networks in the States.

Pricing and availability

According to Peters, the “First phones will be available in February.” Prices have yet to be announced.

Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.

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Melissa Rycroft Tricks Her Daughter at the Dinner Table

Mom & Babies
Celebrity Baby Blog

01/22/2013 at 09:00 AM ET

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She triumphed with her fancy footwork on the dance floor, but Melissa Rycroft may have finally met her match.

Although completely head over heels in love with daughter Ava Grace, 2 next month, the first-time mom admits her little girl has her beat.

“She pushes my buttons like nobody else on this earth can do,” Rycroft, 29, tells PEOPLE.

“She’s going through that phase right now, the ‘I’m sorry, Mommy, you didn’t want me to touch this? This right here I wasn’t supposed to touch?’ And she just gives you this look and I want to be so angry with her, but I can’t!”

Rycroft isn’t the only one being tested by the toddler; Dad Tye Strickland has been known to be on the receiving end of a few of Ava’s tricks, too.

“It’s Daddy’s day with her while Mommy goes and works and as I was leaving [Ava] pooped in the bathtub,” she says with a laugh. “It’s little things like that where I go, ‘That’s my girl! There you go, Tye!’”

At the end of the day, however, it’s Rycroft versus the father-daughter duo — at least when it comes to the dinner table.

“We don’t want to make her a vegetarian or just a meatatarian or just a hot dogatarian like most toddlers are,” she quips. “It doesn’t help in my house that my husband also eats like a 5-year-old, so it’s almost like I’m raising two kids [and] trying to get vegetables in both of them.”

Noting that “if it’s green [Ava's] not going to eat it,” a crafty Rycroft reveals she may have finally found the secret to her struggles.

“I’m finding new recipes online of how you can kind of hide vegetables in meals and so far they can’t tell that it’s there,” she shares. “There’s a nice stuffed chicken you can do [where] you can put some spinach and cheese right in there. They’ll never know it’s there!”

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Foes of NYC soda size limit doubt racial fairness

NEW YORK (AP) — Opponents of the city's limit on the size of sugary drinks are raising questions of racial fairness alongside other complaints as the novel restriction faces a court test.

The NAACP's New York state branch and the Hispanic Federation have joined beverage makers and sellers in trying to stop the rule from taking effect March 12. With a hearing set Wednesday, critics are attacking what they call an inconsistent and undemocratic regulation, while city officials and health experts defend it as a pioneering and proper move to fight obesity.

The issue is complex for the minority advocates, especially given obesity rates that are higher than average among blacks and Hispanics, according to the federal Centers for Disease Control. The groups say in court papers they're concerned about the discrepancy, but the soda rule will unduly harm minority businesses and "freedom of choice in low-income communities."

The latest in a line of healthy-eating initiatives during Mayor Michael Bloomberg's administration, the beverage rule bars restaurants and many other eateries from selling high-sugar drinks in cups or containers bigger than 16 ounces. Violations could bring $200 fines; the city doesn't plan to start imposing those until June.

The city Board of Health OK'd the measure in September. Officials cited the city's rising obesity rate — about 24 percent of adults, up from 18 percent in 2002 — and pointed to studies linking sugary drinks to weight gain. Care for obesity-related illnesses costs more than $4.7 billion a year citywide, with government programs paying about 60 percent of that, according to city Health Commissioner Dr. Thomas Farley.

"It would be irresponsible for (the health board) not to act in the face of an epidemic of this proportion," the city says in court papers. The National Association of Local Boards of Health and several public health scholars have backed the city's position in filings of their own.

Opponents portray the regulation as government nagging that turns sugary drinks into a scapegoat when many factors are at play in the nation's growing girth.

The American Beverage Association and other groups, including movie theater owners and Korean grocers, sued. They argue that the first-of-its-kind restriction should have gone before the elected City Council instead of being approved by the Bloomberg-appointed health board.

Five City Council members echo that view in a court filing, saying the Council is "the proper forum for balancing the city's myriad interests in matters of public health." The Bloomberg administration counters that the health board, made up of doctors and other health professionals, has the "specialized expertise" needed to make the call on limiting cola sizes.

The suit also argues the rule is too narrow to be fair. Alcohol, unsweetened juice and milk-based drinks are excluded, as are supermarkets and many convenience stores — including 7-Eleven, home of the Big Gulp — that aren't subject to city health regulations.

The NAACP and the Hispanic Federation, a network of 100 northeastern groups, say minority-owned delis and corner stores will end up at a disadvantage compared to grocery chains.

"This sweeping regulation will no doubt burden and disproportionally impact minority-owned businesses at a time when these businesses can least afford it," they said in court papers. They say the city should focus instead on increasing physical education in schools.

During Bloomberg's 11-year tenure, the city also has made chain restaurants post calorie counts on their menus and barred artificial trans fats in french fries and other restaurant food.

In general, state and local governments have considerable authority to enact laws intended to protect people's health and safety, but it remains to be seen how a court will view a portion-size restriction, said Neal Fortin, director, Institute for Food Laws and Regulations at Michigan State University.

___

Follow Jennifer Peltz at http://twitter.com/jennpeltz

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Stock futures flat at five-year highs, investors await earnings

NEW YORK (Reuters) - Stock index futures were flat on Tuesday as investors held back from making large bets ahead of an onslaught of corporate earnings and after recently notching five-year highs.

Both the Dow and S&P 500 closed at their highest levels the earnings season. U.S. markets were closed on Monday for a public holiday.

Despite stronger-than-expected earnings results from major companies, including big banks, at the start of the quarterly reporting season, many investors are worried that other reports will reflect economic uncertainty in the fourth quarter.

"The market has been pleased with earnings thus far, and it is encouraging to see a cyclical company like DuPont show revenue strength, but I'm waiting on more tech and energy earnings until I come down one way or the other on this season," said Adam Sarhan, chief executive of Sarhan Capital in New York.

posted a steep drop in earnings on reduced demand for paint pigment, though revenue was ahead of expectations.

Verizon Communications Inc fell 1.1 percent to $42.06 in premarket trading after reporting a steep loss due to pension liabilities and charges related to superstorm Sandy that offset strength in its wireless business. Travelers Cos Inc also posted earnings that were hurt by losses related to Sandy.

DuPont, Verizon and Travelers are all Dow components, as is Johnson & Johnson , slated to report later Tuesday along with Google Inc and Texas Instruments . Tech earnings will be in particular focus after Intel Corp last week gave a revenue outlook that was below expectations.

Overall, S&P 500 fourth-quarter earnings are forecast to have risen 2.5 percent, according to Thomson Reuters data. That estimate is above the 1.9 percent forecast from a week ago but well below the 9.9 percent fourth-quarter earnings forecast from October 1, the data showed.

S&P 500 futures rose 0.3 point but remained below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 8 points and Nasdaq 100 futures rose 5 points.

Monday was a market holiday for Martin Luther King Day in the United States, and also marked the start of a second term for President Barack Obama, who called for aggressive action on climate change, economic equality and the federal budget.

"It remains a question whether Obama will be able to deliver on his agenda, but a sector like solar power companies could continue to be strong as he pushes for action," Sarhan said.

Markets have recently been pressured by uncertainty stemming from Washington about the federal debt limit and spending cuts that could hamper U.S. growth.

Republican leaders in the House of Representatives said they aim to pass on Wednesday a nearly four-month extension of the U.S. debt limit, allowing the government to borrow enough to meet its obligations during that period.

U.S. shares of Research in Motion jumped 8.9 percent to $17.25 in premarket trading after its chief executive said the company may consider strategic alliances with other companies after the launch of devices powered by RIM's new BlackBerry 10 operating system.

The Dow and S&P 500 closed at five-year highs on Friday as the market registered a third straight week of gains on a solid start to the quarterly earnings season, including from Morgan Stanley and General Electric Co .

(Editing by Chizu Nomiyama)

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IHT Rendezvous: Oscar Anticipation in the Subtitle Category

PARIS—With the multiple nominations for “Lincoln,” “Django Unchained” and “Zero Dark Thirty,” Europeans may see this year’s Academy Award field as something of a celebration of American history, in the age of Obama.

Still, “Amour,” Michael Haneke’s Austrian film shot in France and in French, made it into the best picture category, confirmation that the Academy thinks subtitled films can hold their own against American blockbusters. “Amour,” about life, death, age and love, is nominated in five categories (best picture, best foreign film, best actress, director and screenplay).

As Vanessa Thorpe wrote recently in The Guardian, “Academy voters appear to be hinting at a new openness to other cultures and the growing acceptability of subtitled entertainment.”

She theorized that a larger cultural shift is happening:

The new appetite for foreign fare might have started with the mass popularity of translated Scandinavian thrillers, from Stieg Larsson to Jo Nesbo, or it may have been the accidental result of cash-strapped public television schedulers searching for new quality drama with a reasonable price tag.

France took great national pride in last year’s best picture winner, “The Artist,” but, as Elaine Sciolino wrote at the time, it was shot in Los Angeles with an American crew, the rights were bought by an American, and it is all about Hollywood.

The fierce competition this year, and perhaps its grim subject matter, makes “Amour” something of a long shot as best picture. Among the best foreign-language film nominees, however, it stands as the overwhelming favorite to take the prize at the awards ceremony on Feb. 24.

The film has already swept all the European awards, including the 2012 Cannes Film Festival Palme d’Or; it was given the Golden Globe last week for best foreign language film, and more than 20 other awards and nominations. Oscar observers tend to agree it should leave with a golden statue, if not for best picture then surely for best foreign film.

But award ceremonies sometimes welcome surprises, and the foreign film category this year has some other strong contenders. The selection was made from a record-breaking 71 submissions in the category this year.

With two Scandinavian films in the running, three of the five nominees are from Europe. Denmark’s entry, “A Royal Affair,” a sumptuous romantic drama set in the 18th century, lost to “Amour” at the Golden Globes but took two awards at the Berlin International Film Festival: for best script and best actor for Mads Mikkelsen, whom you might recognize as the villain from “Casino Royale.”

“Kon-Tiki,” a box-office hit from Norway, got a double Golden Globe-Oscar nomination. It tells the story of Thor Heyerdahl’s 1947 trip across the Pacific on a small raft with five other men. Larry Rohter, who has been following the foreign film race closely for The New York Times, writes on the Carpetbagger blog that the Weinstein brothers are reportedly planning to release it in English this year.

Last year’s contenders included Iranian and Israeli films, this year the remaining two nominees are from the Americas.

The Chilean director Pablo Larrain was third-time lucky with “No,” his third film about the Pinochet years. Starring Gael Garcia Bernal, the film is about the 1988 referendum that ended the Pinochet dictatorship in Chile. This is Mr. Larrain’s second attempt at the award after being shortlisted in 2008 for his film “Tony Manero,” With “No,” which opens in February in the United States, Mr. Larrain won the top prize in the Directors’ Fortnight section at Cannes.

In a recent Q&A with Larry Rohter, the 36-year-old director talked about the difficulty that film committees face in choosing their entries for the Oscars. “What happens when the committee in each country meets to decide, sometimes they make the mistake that they think the movie that should be submitted is the one that they like more themselves,” he said.

Canada got a nod with “War Witch,” a film shot primarily in Congo about an adolescent girl-soldier trapped in civil war. The film, in French and the African language Lingala, wowed the critics and was awarded a top prize at this year’s Tribeca Film Festival. The nomination was yet another win for the government-supported National Film Board of Canada, which has garnered Oscar nominations for three years in a row.

Neither “No” nor “War Witch” made it into the Golden Globes selection.

The nomination will probably help “No” when it begins its release in Europe and the United States next month, as being in the Oscar race often gives movies a “nomination bump” in box-office figures, though Edmund Helmer wrote in an analysis recently for Reuters that a Golden Globe may be a better win financially.

One film that didn’t need to wait for its Golden Globe nomination to rock the box-office was “The Intouchables,” perhaps the most surprising absentee of the Oscars’ foreign film selection. The French movie, about the friendship between a rich Parisian quadriplegic and his caretaker, has become the highest-grossing film ever made in a language other than English, with a worldwide box-office take of roughly $410 million, about three times that of “The Artist.” Take that, Oscar.

Are you more likely to see a movie if it has won awards? Does the prospect of subtitles keep you from seeing a movie? And are there films you’ve seen that you think should have been nominated in the foreign film category that weren’t?

Fill out your own ballot in The New York Times Oscar poll.

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I Might Be Too Old for Facebook Graph Search

On Sunday, I turned 30.

That’s not too old, I tell myself, yet the signs of aging are creeping in. Teenagers listen to music that I either haven’t heard of or believe to be mostly terrible. They use slang I don’t recognize, and I imagine my slang would sound to them like “groovy” or “far out” sound to me.

But for the purposes of our tech blog, the most notable sign is how much more active teens are on Facebook than I am. To hear it from my wife, who works with children and teens at her job, they’re constantly signed in and active, to the point that reaching them by voice call is unreliable. Send them a Facebook message, even during school hours, and they’ll respond right away. (The reality isn’t quite that extreme; according to a Pew survey, most teens communicate through text messages and phone calls more than Facebook, but e-mail is far behind.)

So when Facebook announces a new feature, like Graph Search, I imagine those teens getting the most use out of it. Graph Search lets you look up people, places, photos and other things using natural search queries. Think of it like Google for everything that your friends know; instead of searching the Web for somewhere to eat or something to do, you could just search through the collective wisdom of your network.

Here are some of the example searches on Facebook’s Graph Search home page:

• Music my friends like


• Restaurants in London my friends have been to


• People who like cycling and are from my hometown


• Photos before 1990

Being able to find all that information–and provide your own information for friends–sounds great. But unless you and your pals are putting lots of data in, you’re probably not going to get a lot of data out. I know for sure that I haven’t put much effort into connecting my real life story to Facebook, and as I poke around my network, I see that many of my friends haven’t either. They don’t check in to places they visit. They don’t “Like” everything that they actually like. They haven’t uploaded photos from before 1990. Collectively, we haven’t invested in making Graph Search as useful as it could be.

It might be different if I was part of the generation that uses Facebook more often. Though it’s hard to find data on how Likes and check-ins vary by age, younger users tend to have more Facebook friends than older ones, according to Edison Research, so at least they have a bigger base of people to work with. And according to a 2011 study, teens spend more time on the network per day than older users. If posting on Facebook is part of your social circle’s daily life–that is, it’s not just a way to see what old high school buddies are up to–I imagine Graph Search will be a lot more useful.

That’s not to say Graph Search won’t be of any value to someone like me. It could come in handy as a way to sort through photos, for instance. There’s also a chance that Facebook will improve the ways that it picks up on our interests, and integrate frictionless sharing so there’s less work involved in becoming an information source.

But while I plan to keep up with technology for a long time, I realize it’s hard to keep using social networks like a teenager when your friends are getting older too. Facebook isn’t part of my daily life anymore, so I can’t imagine rewiring my habits and turning it into a primary information source, especially if my friends aren’t doing the same.  It’s much easier to rely on the tools I already have, such as traditional search engines and sites like Yelp–just like it’s easy to stop keeping track of popular music or to pick up on new slang.

Graph Search is in “very limited” beta now, and users who want to try it can join the waiting list. I look forward to seeing what I can do with it, even if it’s not really for me. In the meantime, here’s to growing older.

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The Biggest Loser's Alison Sweeney Blogs: The Entire Family Needs Fight Childhood Obesity Together

TV Watch

By Alison Sweeney

01/22/2013 at 08:30 AM EST

Alison Sweeney hosts NBC's The Biggest Loser and is the award-winning star of Days of Our Lives, in addition to being an author, director, producer, wife and mom. Like she has for the past two seasons, Alison will blog each week about the latest episode of The Biggest Loser. Follow her on Twitter @Ali_Sweeney

Can you imagine if Bob Harper surprised you at dinner or if Dolvett Quince walked into your classroom? How would you react?

Watching the kids's reactions to Bob, Jillian and Dolvett surprising them was priceless.

Seeing how Biingo and his family have struggled financially breaks my heart but, like Bob, I was impressed by how they've managed and that they've been able to make healthier choices without spending more money. One thing that was reinforced this week was that the entire family needs to work together to combat childhood obesity. All the pressure can't be placed on the kids.

While the trainers were gone, I had a blast running with the contestants in the 5K. I always try to get a workout in each day and by doing the run at work, I was set for the day!

Plus, it was a gorgeous setting at the beach and anyone who follows my blogs on my website knows how much I love to work out outdoors.

While the competitor in me wanting to be at the front of the pack, there was something really special about staying with some of the contestants who were struggling and helping to keep them motivated.

At the end, I did have to pick up my pace to welcome the contestants across the finish line, and it was so fun to cheer them to the end.

Francelina jammed at the end and Jackson made sixth place despite his physical restrictions. As some of the contestants ran back to help Michael and Alex at the end, it was a reminder of what The Biggest Loser is all about – helping one another to get in shape and accomplish their goals.

By the time we got to the weigh-in, tensions were high.

Favorite moment of the week: Any moment with Jackson – when he was leading his team and especially at the weigh-in. He's just so funny and in that way, he reminds me of Dan Evans. Remember him?

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Flu season fuels debate over paid sick time laws

NEW YORK (AP) — Sniffling, groggy and afraid she had caught the flu, Diana Zavala dragged herself in to work anyway for a day she felt she couldn't afford to miss.

A school speech therapist who works as an independent contractor, she doesn't have paid sick days. So the mother of two reported to work and hoped for the best — and was aching, shivering and coughing by the end of the day. She stayed home the next day, then loaded up on medicine and returned to work.

"It's a balancing act" between physical health and financial well-being, she said.

An unusually early and vigorous flu season is drawing attention to a cause that has scored victories but also hit roadblocks in recent years: mandatory paid sick leave for a third of civilian workers — more than 40 million people — who don't have it.

Supporters and opponents are particularly watching New York City, where lawmakers are weighing a sick leave proposal amid a competitive mayoral race.

Pointing to a flu outbreak that the governor has called a public health emergency, dozens of doctors, nurses, lawmakers and activists — some in surgical masks — rallied Friday on the City Hall steps to call for passage of the measure, which has awaited a City Council vote for nearly three years. Two likely mayoral contenders have also pressed the point.

The flu spike is making people more aware of the argument for sick pay, said Ellen Bravo, executive director of Family Values at Work, which promotes paid sick time initiatives around the country. "There's people who say, 'OK, I get it — you don't want your server coughing on your food,'" she said.

Advocates have cast paid sick time as both a workforce issue akin to parental leave and "living wage" laws, and a public health priority.

But to some business owners, paid sick leave is an impractical and unfair burden for small operations. Critics also say the timing is bad, given the choppy economy and the hardships inflicted by Superstorm Sandy.

Michael Sinensky, an owner of seven bars and restaurants around the city, was against the sick time proposal before Sandy. And after the storm shut down four of his restaurants for days or weeks, costing hundreds of thousands of dollars that his insurers have yet to pay, "we're in survival mode."

"We're at the point, right now, where we cannot afford additional social initiatives," said Sinensky, whose roughly 500 employees switch shifts if they can't work, an arrangement that some restaurateurs say benefits workers because paid sick time wouldn't include tips.

Employees without sick days are more likely to go to work with a contagious illness, send an ill child to school or day care and use hospital emergency rooms for care, according to a 2010 survey by the University of Chicago's National Opinion Research Center. A 2011 study in the American Journal of Public Health estimated that a lack of sick time helped spread 5 million cases of flu-like illness during the 2009 swine flu outbreak.

To be sure, many employees entitled to sick time go to work ill anyway, out of dedication or at least a desire to project it. But the work-through-it ethic is shifting somewhat amid growing awareness about spreading sickness.

"Right now, where companies' incentives lie is butting right up against this concern over people coming into the workplace, infecting others and bringing productivity of a whole company down," said John A. Challenger, CEO of employer consulting firm Challenger, Gray & Christmas.

Paid sick day requirements are often popular in polls, but only four places have them: San Francisco, Seattle, Washington, D.C., and the state of Connecticut. The specific provisions vary.

Milwaukee voters approved a sick time requirement in 2008, but the state Legislature passed a law blocking it. Philadelphia's mayor vetoed a sick leave measure in 2011; lawmakers have since instituted a sick time requirement for businesses with city contracts. Voters rejected a paid sick day measure in Denver in 2011.

In New York, City Councilwoman Gale Brewer's proposal would require up to five paid sick days a year at businesses with at least five employees. It wouldn't include independent contractors, such as Zavala, who supports the idea nonetheless.

The idea boasts such supporters as feminist Gloria Steinem and "Sex and the City" actress Cynthia Nixon, as well as a majority of City Council members and a coalition of unions, women's groups and public health advocates. But it also faces influential opponents, including business groups, Mayor Michael Bloomberg and City Council Speaker Christine Quinn, who has virtually complete control over what matters come to a vote.

Quinn, who is expected to run for mayor, said she considers paid sick leave a worthy goal but doesn't think it would be wise to implement it in a sluggish economy. Two of her likely opponents, Public Advocate Bill de Blasio and Comptroller John Liu, have reiterated calls for paid sick leave in light of the flu season.

While the debate plays out, Emilio Palaguachi is recovering from the flu and looking for a job. The father of four was abruptly fired without explanation earlier this month from his job at a deli after taking a day off to go to a doctor, he said. His former employer couldn't be reached by telephone.

"I needed work," Palaguachi said after Friday's City Hall rally, but "I needed to see the doctor because I'm sick."

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Associated Press writer Susan Haigh in Hartford, Conn., contributed to this report.

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Follow Jennifer Peltz at http://twitter.com/jennpeltz

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