Danny Puff

PYONGYANG, North Korea (AP) Former New Mexico Gov. Bill Richardson said Wednesday that his delegation is pressing North Korea to put a moratorium on missile launches and nuclear tests and to allow more cell phones and an open Internet for its citizens.

Richardson told The Associated Press in an exclusive interview in Pyongyang that the group is also asking for fair and humane treatment for an American citizen detained in North Korea. Also on the trip is Google Executive Chairman Eric Schmidt.

"The citizens of the DPRK (North Korea) will be better off with more cell phones and an active Internet. Those are the ... messages we've given to a variety of foreign policy officials, scientists" and government officials, Richardson said.

Most North Koreans have never logged onto the Internet, and the country's authoritarian government strictly limits access to the World Wide Web.

Richardson has said the delegation is on a private, humanitarian trip. Schmidt, who is the highest-profile U.S. business executive to visit North Korea since leader Kim Jong Un took power a year ago, has not spoken publicly about the reasons behind the journey to North Korea.

The visit comes just weeks after North Korea launched a long-range rocket to send a satellite into space. Washington has condemned the launch as a banned test of missile technology. State Department spokeswoman Victoria Nuland said Monday "the trip is ill-advised," and another State spokesman reacted to Richardson's latest remarks by referring to Nuland's statement again.

Spokesman Peter Velasco also said from Washington that he also did not believe Richardson's delegation had been in contact with U.S. officials since they arrived in Pyongyang.

Schmidt, who oversaw Google's expansion into a global Internet giant, speaks frequently about the importance of providing people around the world with Internet access and technology. Google now has offices in more than 40 countries, including all three of North Korea's neighbors: Russia, South Korea and China, another country criticized for systematic Internet censorship.

He and Google Ideas think tank director Jared Cohen, who is also on the trip, have collaborated on a book about the Internet's role in shaping society.

Using science and technology to build North Korea's beleaguered economy was the highlight of a New Year's Day speech by leader Kim Jong Un. Still, the reality is that experts see North Korea as one of the least connected countries in the world.

On Tuesday, students at North Korea's elite Kim Il Sung University showed Schmidt how they use Google to look for information online. Surfing the Internet that way is the privilege of only a very few in North Korea.

Officials say students at the university have had Internet access since April 2010.

While university students at Kim Chaek University of Science and Technology and the Pyongyang University of Science and Technology also have carefully monitored Internet access and are under strict instructions to access only educational materials most North Koreans have never surfed the Web.

Computers at Pyongyang's main library at the Grand People's Study house are linked to a domestic Intranet service that allows people to read state-run media online and access a trove of reading materials culled by North Korean officials. North Koreans with computers at home can also sign up for the Intranet service. But access to the World Wide Web is extremely rare and often is limited to those with clearance to get on the Internet.

The U.S. delegation's visit takes place as the U.S. pushes to punish North Korea for launching a long-range rocket in December.

Pyongyang celebrates the launch as a peaceful bid to send a satellite into space. The U.S. and other critics, however, condemn it as a covert test of long-range missile technology, and are urging the U.N. Security Council to take action against North Korea.

Some conservatives in the United States have had harsh criticism of the Schmidt-Richardson trip.

Schmidt and Richardson "have joined the long list of Americans and others used by the Kim family dictatorship for political advantage," John Bolton, who served as U.S. ambassador to the United Nations during the George W. Bush administration, wrote in the New York Daily News.

"North Korea has repeatedly welcomed prominent Americans to help elevate its stature. It is seeking direct negotiations with Washington, for in the distorted vision of the nation's leadership, this might lead to full diplomatic recognition and 'equal' status in the world community."

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NEW YORK/WASHINGTON (Reuters) - American International Group Inc, the insurer rescued by the U.S. government in 2008, said on Tuesday it is considering joining a lawsuit that claims the bailout terms were unfair, drawing angry condemnation from lawmakers.

A leading congressional Democrat called criticism of the deal's terms "utterly ridiculous," and former New York Attorney General Eliot Spitzer - who probed AIG when he was in office - called the prospect of a lawsuit "insulting to the public."

The White House declined to comment on the potential for a lawsuit but defended the $182 billion bailout.

Newly elected Senator Elizabeth Warren, feared by Wall Street as a potential thorn in its side on the Senate Banking Committee, called the lawsuit talk "outrageous" and said the company should not "bite the hand that fed them for helping them out in a crisis."

In a statement late Tuesday, AIG said it had no choice but to consider the demand from its former chief executive, Hank Greenberg, and his holding company Starr International that AIG join his lawsuit. Greenberg has sued for damages over the bailout and wants AIG to join him in challenging the "exorbitant" terms of the government rescue.

Legal action by AIG would be shocking, given that the company has just launched a high-profile television ad campaign called "Thank you, America," in which it offers the public its gratitude for the bailout. On Tuesday, AIG promoted the ads on Twitter, even as it came under fire over a possible lawsuit.

"AIG has paid back its debt to America with a profit, and we mean it when we say thank you to the American people," CEO Bob Benmosche said in a statement.

"At the same time, the Board of Directors has fiduciary and legal obligations to the Company and its shareholders to consider the demand served on us and respond in a fair, appropriate, and timely manner," he said.

AIG said its board would meet Wednesday to discuss joining the lawsuit, with three options on its plate: take over and pursue the claims made by Starr; refuse Greenberg's demand and block Starr from pursuing its claims; or let Starr pursue the claims on AIG's behalf.

It expects to make a decision "in the next several weeks," Benmosche said.

Greenberg, whose Starr International owned 12 percent of AIG before its near-collapse, has accused the New York Fed of using the rescue to bail out Wall Street banks at the expense of AIG shareholders. He has also called the NY Fed a "loan shark" for charging the "exorbitant" interest of 14.5 percent on its initial loan to AIG.

"If AIG enters this suit it would be the equivalent of a patient suing their doctor for saving their life," said Mark Williams, a former Federal Reserve bank examiner who teaches in the finance department at Boston University.

BUSINESS JUDGMENT

A federal judge in Manhattan already dismissed one of Greenberg's lawsuits in November; it is being appealed.

In his ruling dated November 19, Judge Paul Engelmayer said AIG had notified the court it would hold a board meeting January 9 to discuss joining one of the lawsuits, with a decision expected by the end of the month.

A separate lawsuit under different legal theories is still pending in the U.S. Court of Federal Claims in Washington.

One expert in securities law said he doubted AIG would ultimately decide to join the case.

"All the fiduciary standards that guide board behavior would warn against joining the suit," said James Cox, a professor of corporate and securities law at Duke University School of Law in Durham, North Carolina. "I see nothing to be gained by AIG piling on, and I see a lot of downside risk."

The deliberations were first reported by the New York Times.

'CHOICE WAS BANKRUPTCY'

The New York Fed said Tuesday there was no merit to any allegations that the bank harmed AIG.

"AIG's board of directors had an alternative choice to borrowing from the Federal Reserve and that choice was bankruptcy. Bankruptcy would have left all AIG shareholders with worthless stock," a representative of the bank said Tuesday.

Elijah Cummings, the ranking Democrat on the House Committee on Oversight and Government Reform, acknowledged that AIG's board has a fiduciary duty to consider the lawsuit. But he also said the company had a choice in 2008 and picked what it considered the better option.

"The idea that AIG might sue the government is an unbelievable insult to our nation's taxpayers, who cleaned up the mess this firm created," he said in a statement.

Cummings' former colleague, the recently retired Barney Frank, said he was "stunned" by the news and added that AIG was a fully willing participant in the rescue.

"There was not the hint of a suggestion of any coercion. They did this very voluntarily, very gratefully. And if the company were now to go around and join this lawsuit, that would be outrageous," Frank said in an interview.

The U.S. Treasury declined to comment. It completed its final sale of AIG stock in mid-December, concluding the bailout with what Treasury called a positive return of $22.7 billion.

AIG shares fell 0.8 percent to close at $35.65. After losing half its value in 2011, the stock rose more than 52 percent in 2012, tripling the gains of the broader S&P insurance index.

(Reporting by Ben Berkowitz, Karen Freifeld and Jonathan Spicer in New York and Emily Stephenson and Matt Spetalnick in Washington; Editing by Nick Zieminski and Richard Chang)

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PASADENA, Calif. (AP) Five minutes into their season-opening news conference and the new team at "American Idol" were having their first disagreement about their disagreements. Then Mariah Carey and Nicki Minaj kept it going.

"We're professionals. Have you ever had an argument with someone you've worked with?" Minaj said after repeated questions Tuesday about her reported feud with new fellow judge Carey.

"This was sort of one-sided," interjected Carey, wearing a queenly smile.

"No, it wasn't," snapped back Minaj.

Fox network executive Mike Darnell was asked by reporters with the Television Critics Association if the clash was authentic. He said there was a lot of musical passion within the group, which also includes country star Keith Urban and returning judge Randy Jackson, and that triggered disagreements.

"The fighting is what it is," Carey said at one point. "This is 'American Idol.' It's bigger than all that. It's bigger than some stupid trumped-up thing."

Reports that the two divas were at odds surfaced last fall. On "The View," Barbara Walters recounted a phone conversation with Carey in which the pop star said that Minaj threatened to shoot her after a taping. The rapper quickly responded with dismissive tweets.

Trumped up or not, she and Minaj appeared on the panel with Urban carefully placed between them and indulged in their briefly testy "one-sided" exchange. But they also responded to a request to say something nice about each other.

Minaj called Carey one of her favorite all-time artists who has shaped a generation of singers. In return, Carey fondly recalled working with Minaj on a single titled "ironically," as Carey noted "Up Out My Face."

"I knew she was going to go far, and still is," Carey said.

"American Idol" begins its 12th season Wednesday facing questions once again about its ability to endure as a top-rated show, especially given the increasingly crowded talent show landscape that includes NBC's hit "The Voice." All the shows are down in the ratings, Darnell noted.

Veteran executive producer Nigel Lythgoe is used to hearing the query. Famous judges have the pre-debut spotlight and media attention but the contestants ultimately are what keep viewers watching, he said after the panel.

That's not to say the panel isn't key, said Trish Kinane, another executive producer.

"We wanted judges who were experts and had a right to be here, and we also wanted honesty," she said. "We very much took that into consideration. I think we've got it. They're not shrinking violets, they say what they think, and we encourage that."

Minaj displayed that Tuesday, saying firmly that "Idol" is not the show for rap, her own genre.

"If you're looking for people to believe you and feed you as a rapper, I wouldn't do it," said Minaj, adding that viewers love "American Idol" as an "honest singing competition, and I'm not here to change that."

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WASHINGTON (Reuters) - The powerful gun lobby, the National Rifle Association, is slated to meet with Vice President Joe Biden as he considers recommendations on how to respond to a mass shooting last month in Newtown, Connecticut, the White House said on Tuesday.

After the Newtown school shooting, which President Barack Obama called the worst day of his presidency, he asked Biden to come up with a broad range of ideas to curb gun violence - ideas he will unveil in his annual State of the Union address, traditionally given in late January.

Obama has said he wants new gun control measures passed during the first year of his second term, but gun control is a divisive issue in the United States where the right to bear arms is enshrined in the Constitution.

Biden's task force is examining legislation that would ban assault rifles, but is also looking at the role of violent movies and videogames in mass shootings and whether there is adequate access to mental health services.

Biden and his task force are slated to hold meeting this week with victims of gun violence, gun safety groups, hunting groups, and gun owners, White House spokesman Jay Carney told reporters.

"His group will also meet with representatives of the entertainment and video-game industries," Carney said.

Health and Human Services Secretary Kathleen Sebelius will meet with mental health and disability advocates, and Education Secretary Arne Duncan is slated to meet with parent, teacher and education groups, Carney said.

The NRA has proposed armed guards in schools, an idea about which Obama has expressed skepticism.

The group's top lobbyist, James J. Baker, will attend the task force meeting on Thursday, an NRA spokesman said.

"We are sending a representative to hear what they have to say," NRA spokesman Andrew Arulanandam said in an e-mailed statement.

(Additional reporting by David Ingram; Editing by Sandra Maler and Jackie Frank)

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TOKYO (Reuters) - A Japanese-led team of scientists has captured on film the world's first live images of a giant squid, journeying to the depths of the ocean in search of the mysterious creature thought to have inspired the myth of the "kraken", a tentacled monster.

The images of the silvery, three-metre (10 feet) long cephalopod, looming out of the darkness nearly 1 km below the surface, were taken last July near the Ogasawara islands, 1,000 km (620 miles) south of Tokyo.

Though the beast was small by giant squid standards - the largest ever caught stretched 18 metres long, tentacles and all - filming it secretly in its natural habitat was a key step towards understanding the animal, researchers said.

"Many people have tried to capture an image of a giant squid alive in its natural habitat, whether researchers or film crews. But they all failed," said Tsunemi Kubodera, a zoologist at Japan's National Museum of Nature and Science, who led the team.

"These are the first ever images of a real live giant squid," Kubodera said of the footage, shot by Japanese national broadcaster NHK and the Discovery Channel.

[Slideshow: Tiniest animals on the planet]

The key to their success, said Kubodera, was a small submersible rigged with lights invisible to both human and cephalopod eyes.

He, a cameraman and the submersible's pilot drifted silently down to 630 metres and released a one-metre-long squid as bait. In all, they descended around 100 times.

"If you try and approach making a load of noise, using a bright white light, then the squid won't come anywhere near you. That was our basic thinking," Kubodera said.

[Slideshow: NatGeo's 2012 photo contest winners]

"So we sat there in the pitch black, using a near-infrared light invisible even to the human eye, waiting for the giant squid to approach."

As the squid neared they began to film, following it into the depths to around 900 metres.

"I've seen a lot of giant squid specimens in my time, but mainly those hauled out of the ocean. This was the first time for me to see with my own eyes a giant squid swimming," he said. "It was stunning, I couldn't have dreamt that it would be so beautiful. It was such a wonderful creature."

Until recently, little was known about the creature believed to be the real face of the mythical kraken, a sea-monster blamed by sailors for sinking ships off Norway in the 18th century.

But for Kubodera, the animal held no such terror.

"A giant squid essentially lives a solitary existence, swimming about all alone in the deep sea. It doesn't live in a group," he said. "So when I saw it, well, it looked to me like it was rather lonely."

(Reporting by Ruairidh Villar; Writing by Elaine Lies; Editing by Daniel Magnowski)

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PARIS (Reuters) - French film star Gerard Depardieu failed to show up in court to face drink driving charges on Tuesday as he pursued a headline-grabbing world tour that has seen him set up an alleged tax haven home in Belgium and pick up a passport in Russia.

The garrulous actor's lawyer said he had missed the hearing in Paris because he was now in Montenegro, holding meetings over a film in which he will play disgraced former IMF chief Dominique Strauss-Kahn.

The no-show means the case will turn into a full trial - guaranteeing yet another day in the spotlight for Depardieu who is already caught up in a public row with French authorities over his tax status.

It could also lead to the 64-year-old star of "Cyrano de Bergerac" and "Asterix and Obelix" getting a tougher sentence if convicted - in theory up to two years in prison.

"Despite wanting to be there and meet the judges and in no way to escape justice, Gerard Depardieu absolutely could not be present," his lawyer Eric de Caumont told a scrum of reporters outside the Paris courtroom on Tuesday.

He said his client was in Montenegro negotiating a deal for an upcoming film in which he would play Strauss-Kahn, who was seen as the next Socialist president of France before a U.S. sex scandal bought down his career last year.

A day earlier on Monday, Depardieu celebrated at a FIFA awards ceremony in Zurich.

Depardieu is accused of crashing his scooter in Paris with more than three times the legal limit of alcohol in his blood. No one else was injured in the accident.

The actor did not have to attend the hearing. But many defendants have used similar pre-trial sessions to strike a bargain with prosecutors and accept a lighter sentence in exchange for acknowledging guilt.

Depardieu hit the headlines last month after he bought a house over the border in Belgium, spurring accusations he was trying to dodge a proposed new tax on millionaires.

French Prime Minister Jean-Marc Ayrault called the move "pathetic" and unpatriotic.

Last week, Depardieu accepted a Russian passport, provoking even fiercer charges that he had abandoned his homeland.

Russia has a flat income tax rate of 13 percent, compared to the 75 percent on income over 1 million euros ($1.32 million) that President Francois Hollande wants to levy in France.

Depardieu on Monday denied he was leaving France for tax reasons.

"I have a Russian passport, but I remain French and I will probably have dual Belgian nationality. But if I'd wanted to escape the taxman, as the French press say, I would have done it a long time ago," he said.

Depardieu is a larger-than-life and outspoken figure who began his long career playing thugs and drop-outs before moving on to leading-man roles in films like the romantic comedy "Green Card".

A few months before the scooter incident, a car driver accused Depardieu of assault and battery during an altercation in Paris. Last year, the actor outraged passengers on an Air France flight by urinating into a bottle in the aisle.

(Additional Reporting by Thierry Leveque.; Editing by Mark John and Andrew Heavens)

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VATICAN CITY (Reuters) - The ubiquitous term "spread" - a staple of financial news bulletins and one of the main measures of investor sentiment - has now penetrated even the elevated lexicon of the papacy.

In his speech to diplomats from around the world, Pope Benedict chastised those who only think of a "spread" in financial terms. He said there should be a simultaneous concern for a social "spread" - the gap between the rich and poor.

"If the differential index between financial taxes represents a source of concern, the increasing differences between those few who grow ever richer and the many who grow hopelessly poorer, should be a cause for dismay," the pope told the diplomats in his speech at the Vatican on Monday.

"In a word, it is a question of refusing to be resigned to a 'spread' in social well-being, while at the same time fighting one in the financial sector," he said.

During the financial crisis facing Italy for more than a year, hardly a week has passed without a news report about the see-sawing spread - the risk premium investors demand to hold Italian bonds rather than their safer German equivalents.

The higher the spread, the greater interest payments are for Italy to finance its public debt. The spread was at 574 basis points about 14 months ago when Prime Minister Mario Monti took office, and is now at about 279 basis points.

But in the part of his speech that centred on financial issues - most of the address was dedicated to hot spots such as Syria - the pope said politicians had to consider people as well as numbers.

"Certainly, if justice is to be achieved, good economic models, however necessary, are not sufficient. Justice is achieved only when people are just," he said.

As far as the spread is concerned, Benedict, a world-class theologian who by his own admission is not good with numbers, is only the latest person to be unexpectedly touched by the S-word.

Last month Monti told a television interviewer that talk of bond spreads had filtered down from the power lunches of bankers and brokers all the way to his grandson's kindergarten.

"The youngest of my daughter's three children was home and saw a news programme on television and they were talking about the spread," Monti said. "And he said 'Mamma, but I'm Spread'".

It seems the word has become so much a part of the common lexicon that his schoolmates gave him the nickname "Spread".

(Reporting By Philip Pullella, editing by Paul Casciato)

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JOHANNESBURG (Reuters) - David R. Ellis, the child actor and former stuntman who went on to direct gory films including "Snakes on a Plane", has been found dead in a Johannesburg hotel.

Ellis, 60, was last seen alive in a restaurant on Saturday. His body was discovered in a bathroom by a hotel manager at the weekend. There was no indication of foul play or robbery, police said in a statement on Tuesday.

"It is unknown what was the cause of death," South African police said.

Ellis was in South Africa shooting a movie.

His 2006 film "Snakes on a Plane" about reptiles slithering through a jet inflicting gruesome deaths on passengers spawned numerous parodies, massive internet hoopla and was one of the most heavily hyped films of the North American summer season.

The film's star, Samuel L. Jackson, threatened to quit when the studio considered changing the title, saying he had taken the job based on the name.

"So talented, so kind, such a Good Friend. He'll be missed. Gone too soon!" Jackson tweeted on Tuesday.

Ellis also directed other B-list thrillers including "Shark Night" and "Cellular".

(Reporting by Jon Herskovitz, editing by Paul Casciato)

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LOS ANGELES (AP) During production of his final post-midnight show, Jimmy Kimmel's studio audience waited patiently while he taped a string of promotional spots.

"Hey, Denver: You, me, now at 10:35. Let's not be weird about this," the host quipped to the camera in his Hollywood Boulevard studio.

"This will be good for us," Kimmel said earnestly in another local station promo.

The message in each spot whether "Jimmy Kimmel Live" is on at 11:35 p.m. in the East and West or earlier elsewhere is that Kimmel will be playing in the same league as veterans Jay Leno and David Letterman, starting Tuesday with guests Jennifer Aniston and No Doubt.

The message Kimmel delivered to a recent teleconference was equally concise: He won't be changing his style for the move, pushing aside conventional wisdom that edgier late-night humor won't play in Peoria or elsewhere before the clock strikes 12.

It's "Jimmy Kimmel Live," after all, that has given the world such brashly funny videos as the Matt Damon-Sarah Silverman musical romp with bleep-worthy lyrics.

"There's this idea that you need to broaden the show or make it ... more wholesome or something like that. And I think that's a little bit out-of-date, that perception," Kimmel told reporters.

"I guess only time will tell," he added, in his typically low-key delivery.

Just as with Kimmel's promised approach to the most coveted time period in late-night, ABC is taking a bold step by swapping "Nightline" with his show. The news program, offering viewers a non-talk show option, has been the period's ratings leader.

But the network likely won't be sweating the early returns, according to analyst Brad Adgate of Horizon Media. He says putting Kimmel into the pre-midnight pocket, when more viewers are still up and watching, is a strategy aimed at an inevitable future.

"Leno and Letterman aren't going to be doing this forever," Adgate said, and ABC gives him a head start on establishing himself by putting him on now.

"This is something you may scratch your head at now, but in five years from now he's the incumbent and the leader" in the time period, the analyst said.

Long-term schemes, of course, don't always pan out. Despite anointing Conan O'Brien as its new "Tonight" host five years before he made the move in 2009, NBC ended up with a mess on its hands that saw O'Brien bolt to TBS and Leno retake "Tonight" in 2010 after his short-lived prime-time series.

Whether Kimmel gets a jump on his opponents-to-be with Jimmy Fallon the expected pick for "Tonight" being the late-night ruler is a far different proposition than in Johnny Carson's day. The "Tonight" institution, operating virtually unopposed, could average a nightly audience of as much as 15 million.

That's unimaginable in today's fragmented TV world. Leno claims the top talk-show spot with some 3.5 million average viewers, followed by Letterman on CBS with 2.8 million. "Jimmy Kimmel Live" was drawing under 2 million nightly viewers at 12:05 Eastern but, according to Nielsen Co. ratings, finished up 2012 with a 10-year viewership high.

The demographics also have changed, with more advertiser-favored young viewers gravitating to cable options such as Adult Swim or Comedy Central and increasingly likely to catch up online with the best moments of network late-night.

But the 11:35 p.m. East-West sweet spot remains the prize, and Kimmel may have more than the desire to succeed in mind. While he's a long-time admirer of Letterman, he's taken sharp public jabs at Leno, including blaming him for O'Brien's ill-fated tenure at "Tonight."

So Kimmel is humble about competing directly with Letterman (calling him a "legend in broadcasting" who shouldn't bat an eye at the prospect of new competition) but is throwing elbows at Leno, especially over the "Tonight" plan to get out ahead of "Jimmy Kimmel Live" by airing at 11:34 p.m. Eastern.

"Well, I think NBC has had a lot of success moving Jay Leno earlier so it makes perfect sense," he said, dryly, referring to Leno's short-lived prime-time stint. Kimmel dismissed the time-shifting as likely a brief "trick" to protect "Tonight" ratings, one that ultimately won't matter.

"This really isn't about the first month or about the first week or about the first night, it's a long-term thing," Kimmel told reporters. "If we do well the first week, I'm sure there will be a lot of press given to that. But what really matters is how you do in May, and that's when we'll really know ... where we stand."

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PARIS (AP) French actor Gerard Depardieu will not show up at a Paris court Tuesday to face drunken driving charges because he has clashing professional commitments abroad, his lawyer said Tuesday.

Depardieu's lawyer Eric de Caumont said his client was not trying to dodge French justice, but is abroad "meeting the producers of a movie," whose filming in the United States will begin in January.

The 64-year-old star of films such as "Green Card" and "Cyrano de Bergerac" was picked up last November by police after he fell off his scooter in northwest Paris.

The drunken driving hearing will now be deferred to a criminal court, and he could lose his driving license and could face up to two years in jail, Caumont said.

Depardieu has caused controversy in recent weeks for other reasons. On Saturday he received a Russian passport from President Vladimir Putin, after threatening to return his French passport after Prime Minister Jean-Marc Ayrault called him "pathetic" for deciding to move to tax-friendly Belgium.

In a much publicized letter in December, Depardieu also made reference to his headline-grabbing lifestyle: "I won't cast a stone at (people) who have cholesterol, hypertension, diabetes or too much alcohol or those who fall asleep on their scooter: I am one of them, as you dear media outlets like so much to repeat."

Back in 1998, Depardieu also crashed his motorcycle when his blood-alcohol limit was five times over the legal limit, escaping with leg and face injuries.

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LAS VEGAS (AP) -- Sony Corp. is finally pressing its advantage as a conglomerate that owns both high-tech gadgets and the content that plays on them by being the only electronics maker to offer ultra-HD TVs and a way to get movies to the new super clear screens.

Ultra-high definition TVs, which quadruple the number of pixels of current high definition technology, have been the talk of the International CES gadget show so far. But only Sony has offered a content solution to go with them.

With 84-inch ultra-HD set it launched in November, Sony threw in a tablet and computer server that has 10 movies preloaded on the device for $25,000. The movies came from the library of Sony Pictures or its subsidiary Columbia Pictures, like "The Amazing Spider-Man" and "The Karate Kid."

On Monday, Sony unveiled 55-inch and 65-inch ultra-HD sets that will sell this spring for an undisclosed price believed to be below $10,000. The Japanese electronics maker said it would launch a download service this summer in the U.S. so buyers of the smaller sets would have access to movies in the clearer format.

For now, it will offer the same 10 movies from its library for download.

After unveiling the service, Sony CEO Kazuo Hirai told reporters that the ultra-HD movies could be made available to other makers like Samsung or LG later. The company is eyeing coordination with other movie studios, but not immediately.

"That's a key differentiator from a Sony perspective that really speaks to the advantage of what we have in terms of both the electronics business and the content business," he said. "For the time being, that's something we bring exclusively to our customers."

Sony is betting big on ultra-HD, and is a leading supplier of a high-end cameras that shoot in the format, which renders moving images at a resolution of 3,840 pixels wide and 2,160 pixels tall. That is twice the length and width of high definition, resulting in four times as many pixels, or more than 8 million.

The company also makes projectors that show movies in so-called 4K, and Hirai said that anyone who has been to the movies lately has probably experienced it firsthand without realizing it.

Getting these higher resolution files to home televisions is no small matter. A Blu-ray disc format has not been created yet and broadcasters are years away from offering TV signals at the higher resolution.

Sony representatives said that buyers of its 55-inch and 65-inch TVs may be asked to buy an ultra-HD server separately, although a final decision hadn't been made. It is also unclear how much downloadable movies will cost.

The company said it would offer Blu-ray discs that are mastered in 4K but compressed to fit on a current Blu-ray disc. The TV's embedded technology presents the compressed movie at close to 4K resolution, but not quite as good as when they are played from the 4K media player.

But with all new technologies, there were glitches.

Hirai had an embarrassing moment Monday when he introduced the world's first ultra-HD TV using organic light-emitting diodes (OLED), only to see the screen go blank as the computer running it had an error.

"This revolutionary TV combines the world's largest OLED display with dazzling 4K resolution, including this beautiful ... interface screen," he said, then turned to see a blank screen as chuckles rippled through the crowd.

Later, Hirai looked back at the 56-inch display only to see the error continue.

"Excellent," he said.

A Sony staffer rolled the TV further away and Hirai carried on his presentation. He later appeared to be good-natured with journalists.

Hirai said the ultra-HD OLED set is a prototype and didn't announce price or availability.

In the Sony booth after the presentation, other ultra-HD OLED screens played without a problem.

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NEW YORK (AP) "Mary Poppins" is closing up its big umbrella on Broadway.

An official close to the show's producers said Monday that the 6-year-old musical will end performances in March at the New Amsterdam Theatre and eventually be replaced by a musical adapted from the film "Aladdin."

The official spoke to The Associated Press on condition of anonymity because he was not authorized to speak before the official announcement. The New York Post first reported the news, citing an anonymous source. A Disney representative did not immediately respond to a request for comment.

"Mary Poppins," co-produced by Disney and Cameron Mackintosh, is based both on the children's books by P.L. Travers and the 1964 movie starring Julie Andrews and Dick Van Dyke. It tells the story of the world's most practically perfect nanny in Edwardian London.

With a big cast, lavish sets and stunts that include Mary flying with her umbrella and Bert the chimney sweep tap dancing upside-down, the show was a hit after opening in 2006, two years after debuting in London.

The show is part of Disney Theatrical Productions' five big Broadway hits from seven attempts since 1994 a profitable list that includes "The Lion King" and the more recent "Newsies." That's way above the 3-in-10 average recoupment of most Broadway shows. "Mary Poppins" routinely grosses over $1 million every week despite the presence of touring versions.

When it closes, it will have been performed 2,619 times and have been seen by more than 4 million people. It recouped its initial Broadway investment within a year, and has gone on to be among the top 10 grossing shows for the past six years and top five for attendance. It will rank as the 22nd longest-running show in Broadway history.

Its soon-to-be vacant home at the New Amsterdam Theatre will be taken by the musical "Aladdin," which has melodies by Alan Menken and lyrics by Howard Ashman and Tim Rice the same team who created the animated film version that starred Robin Williams. The musical, with a book by Chad Beguelin, had its premiere in Seattle in summer 2011.

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MOSCOW (Reuters) - Russian President Vladimir Putin has granted citizenship to Gerard Depardieu, the French movie star whose decision to quit his homeland to avoid a tax hike prompted accusations of national betrayal.

The "Cyrano de Bergerac" and "Green Card" actor bought a house across the border in Belgium last year to avoid a new tax rate for millionaires planned by France's Socialist President Francois Hollande, but said he could also seek tax exile elsewhere.

Putin said last month that Depardieu would be welcome in Russia, which has a flat income tax rate of 13 percent, compared to the 75 percent on income over 1 million euros ($1.32 million) that Hollande wants to levy in France.

French Prime Minister Jean-Marc Ayrault called Depardieu's decision to seek Belgian residency "pathetic" and unpatriotic at a time when the French are being asked to pay higher taxes to reduce a bloated national debt.

"I am leaving because you believe that success, creation, talent, anything different must be sanctioned," the actor retorted in a letter published by a newspaper, saying he would hand in his passport and social security card.

Depardieu is well known in Russia, where he has appeared in many advertising campaigns. He worked in the country in 2011 on a film about the eccentric Russian monk Grigory Rasputin.

French media teased Depardieu, showing clips of the actor's Russian work that were unknown at home, including the Rasputin film and a commercial for ketchup.

Magazine L'Express put together a slideshow on its website of other countries that he could flee to, suggesting Italy where he has starred in commercials for Barilla pasta, or Japan, given that the actor owns a Japanese food shop in Paris.

Depardieu welcomed the move to grant him Russian citizenship, according to excerpts of a letter published by a Russian state TV website.

"I love your culture, your intelligence," the letter read. "My father was a communist of that era. He listened to Radio Moscow! That is my culture too."

Depardieu's publicist Francois Hassan Guerrar was not immediately available to comment on the letter.

Depardieu was one of several Western celebrities invited to celebrate the birthday of Ramzan Kadyrov, Chechnya's Kremlin-backed leader, in 2012.

Depardieu, 63, had told friends he was considering three options to escape France's new tax regime: settling in Belgium, relocating to Montenegro, where he has a business, or moving to Russia, French daily Le Monde reported in December.

Putin told a news conference last month: "If Gerard really wants to have either a residency permit in Russia or a Russian passport, we will assume that this matter is settled and settled positively.

"I know that he (Depardieu) considers himself a Frenchman. He loves his country very much, its history its culture - this is his life, and I'm sure he is going through a tough time now," Putin said.

The Kremlin's website said on Thursday that Putin had signed a decree granting Depardieu citizenship. Kremlin spokesman Dmitry Peskov said it was not necessary for Depardieu to move to Russia - that would be the actor's decision.

Russia's Deputy Prime Minister Dmitry Rogozin said Westerners still knew little of Russia's tax regime.

"When they find out, we can expect a mass migration of rich Europeans to Russia," Rogozin, a nationalist politician and former envoy to NATO, said on Twitter.

WELCOME TO RUSSIA

Muscovites said they would welcome Depardieu. "He is a normal guy. He is fond of drinking too, I suppose, the Russian way, so let him come here," said one resident, Lev Nikolaevich.

Putin has in the past spoken of good relations with France, which he visited last June, but he is a frequent critic of the West. He had a tense summit with the European Union last month and wants the bloc to move faster toward visa-free travel.

Since the Cold War, Moscow has often expressed support for Westerners at odds with their governments - a way to counter what Putin says is hypocritical U.S. and European criticism of the Kremlin's treatment of its own citizens.

In 2010, a Kremlin official suggested Wikileaks founder Julian Assange should be nominated for a Nobel Prize.

News of the decree granting Depardieu citizenship set off a frenzy of wry commentary on Russian social networking sites, some musing on why a Westerner would want a Russian passport.

One cartoon posted on the Internet depicted Putin and Depardieu as characters from the French comic books Asterix.

Another showed what appeared to be a nude photo of Depardieu on vacation, with a caption that referred to him as "our compatriot", playing on foreign criticism of how Russians behave on holiday.

Russia does not require people to hand in their foreign passports once they acquire a Russian one. Many Russians have citizenship of other countries and travel without problems.

Depardieu could also request Belgian nationality but has not yet made such a request, said Georges Dallemagne, head of Belgium's parliamentary committee that oversees naturalizations.

"As a Russian he could certainly remain in Belgium, he would possibly need the necessary visas but for a short period he could stay here," said Dallemagne.

France's Constitutional Council last month blocked the planned 75 percent tax rate due to the way it would be applied - but Hollande plans to propose redrafted legislation which will "still ask more of those who have the most".

(Additional reporting by Steve Gutterman, Nikolai Isayev and Alexander Fedorov in Moscow, Catherine Bremer in Paris and Robert-Jan Bartunek in Belgium; Writing by Megan Davies; Editing by Tom Pfeiffer)

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MOSCOW (Reuters) - French film star Gerard Depardieu arrived in Russia on Saturday to meet President Vladimir Putin, who granted him citizenship after a public spat in France over his efforts to avoid a potential 75 percent income tax.

Putin's spokesman Dmitry Peskov said the two would meet in the Black Sea resort of Sochi, where Putin was spending part of the 10-day New Year and Russian Orthodox Christmas holiday.

He said it was possible Putin would hand Depardieu his Russian passport during the meeting.

"It is a private meeting, we will not be releasing any other details," Peskov said by phone.

Russian media quoted him as saying the meeting would take place on Saturday. Depardieu's spokesman could not immediately be reached for comment.

On Thursday, the Kremlin announced that Putin had signed a decree granting Russian citizenship to Depardieu, who objected to Socialist president Francois Hollande's plan to impose a 75 percent tax rate on millionaires.

Depardieu is a popular figure in Russia, where he has appeared in many advertising campaigns, including for ketchup. He also worked there in 2011 on a film about the eccentric Russian monk Grigory Rasputin.

The star of the movies "Cyrano de Bergerac" and "Green Card" was also among the Western celebrities invited in 2012 to celebrate the birthday of Ramzan Kadyrov, the Kremlin-backed strongman leader of Russia's Chechnya province who is accused by rights groups of crushing dissent.

Some of Putin's critics called the passport move a stunt and pointed out that Putin last month announced a campaign to prevent rich Russians keeping their money offshore.

At a press conference on December 20 during which he offered Depardieu a passport, Putin said Russia had a close, special relationship with France and that he had developed warm ties with the actor, even though they had rarely met.

But Moscow suffered a blow in November when it was forced to suspend its bid to build an Orthodox church with five domes in the heart of Paris, whose mayor called the plan "ostentatious".

Russia has a flat-rate income tax of 13 percent compared to the 75 percent rate that French President Francois Hollande wants to introduce on income over 1 million euros ($1.32 million).

Depardieu has already bought a house in Belgium to establish Belgian residency in protest at Hollande's tax plans.

Hollande's original proposal was struck down by France's Constitutional Court in December, but he has pledged to press ahead with a redrafted tax on the wealthy.

French Prime Minister Jean-Marc Ayrault called Depardieu's decision to seek Belgian residency "pathetic" and unpatriotic, prompting an angry reply from the actor.

Russia does not require people to hand in their foreign passports once they acquire a Russian one. But it is rare for people from the European Union or the United States to seek Russian citizenship unless they have recent Russian roots.

(Additional reporting by John Irish in Paris; Writing by Gabriela Baczynska and Steve Gutterman; Editing by Kevin Liffey)

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BROOKFIELD, Mass. (AP) A man in Massachusetts says all he heard was a hiss before a bobcat pounced on him in his own garage, sinking its teeth into his face and its claws in his back.

Roger Mundell Jr. went into the garage in Brookfield on Sunday morning to fetch some tie-down straps for a friend when the animal attacked.

It then ran out of the garage and bit Mundell's 15-year-old nephew on the arms and back.

Mundell and his wife pinned the cat to the ground and shot it dead.

Mundell, his nephew and his wife, are being treated for rabies. His wife wasn't bitten, but got the animal's blood on her.

State Environmental Police took the bobcat to have it tested for rabies, which they think is likely given its unusual behavior.

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LOS ANGELES (Reuters) - As he famously droned on-screen in his signature "Terminator" movies, Arnold Schwarzenegger is back.

A year after leaving the California governor's office and becoming tabloid fodder for fathering a boy with his family's housekeeper and splitting with his wife, Maria Shriver, the 65-year old former bodybuilder will star in no less than three Hollywood movies over the next 12 months.

None are likely to win Schwarzenegger an Oscar. Indeed, the movies, and Schwarzenegger's own fee, are low-budget compared with his global blockbusters of yore. But studio executives are betting that overseas fans especially will once again respond to a personality whose 24 films generated worldwide ticket sales of $3.9 billion, according to boxoffice.com.

"He is still a worldwide star who resonates with action audiences around the world," said Rob Friedman, the co-chairman of the Lionsgate motion picture group, which is scheduled to release his next two films. "The Last Stand" will open on January 18, and "The Tomb" in September.

"Ten," the third film, is scheduled for release in January 2014 by Open Road Films, a joint venture of the AMC and Regal Theater chains.

"When you have left the movie business for seven years, it's kind of a scary thing to come back because you don't know if you're accepted or not," Schwarzenegger said at a Saturday press event for "The Last Stand."

"There could be a whole new generation of action stars that come up in the meantime."

The actor said he was "very pleasantly surprised" by what he called a "great reaction" to his cameo in the 2010 action film "The Expendables," which featured fellow action stars Sylvester Stallone and Jason Statham. The film grossed $103.1 million in U.S. ticket sales and $274.5 million worldwide.

Since then, Schwarzenegger appeared in a second "Expendables" and says he will join a fifth installment of the "Terminator" if it is made.

Comcast's Universal Pictures wants to "do a bunch" of new films based on the 30-year-old "Conan The Barbarian" movie, said Schwarzenegger, in which he would reprise his role as a barbarian.

He added that Universal, after 10 years of prodding by Schwarzenegger, also wants to do a sequel to the 1988 comedy "Twins," in which he and Danny DeVito played mismatched twins, to be called "Triplets."

Schwarzenegger no longer commands the $25 million paychecks he cashed in his heyday and will get between $8 and $10 million for each of his next three films, according to two people with knowledge of his salary but who were not authorized to speak publicly about it. He also gets a percentage of the profits, according to one of the people.

The new Schwarzenegger calculus banks on his films doing outsized business overseas while operating within budgets that are a fraction of the $200 million cost of his last action film, the 2003 "Terminator 3: Rise of the Machines." The budget for "The Last Stand" is estimated at $50 million, according to movie resource site IMDB.com.

"He has significant value outside the United States and Canada, where he is still revered by people who have grown up with him throughout the years," said Jere Hausfater, chief operating officer of film production company Aldamisa International, which hopes to do a film with Schwarzenegger in the future.

What audiences will see is a aging star who isn't afraid of showing his drooping muscles and widening paunch, or of making fun of being past his prime. In the "The Last Stand," a less than rock hard Schwarzenegger plays a retired Los Angeles policeman who becomes the sheriff of a small border town and is then called on to stop a violent drug lord from crossing.

In "Ten" he plays an aging drug agent, and in "The Tomb" an older prison inmate.

"We all go through the same dramas, we look at the mirror and say, what happened? You once had muscles and slowly they are deteriorating," said Schwarzenegger at "The Last Stand" press event.

"The great thing in the movie is that they we're not trying to play me as the 35-year-old action hero but the one who is about to retire, and all of a sudden there is this challenge where he really needs to get his act together."

The one-time muscle man compares his career metamorphosis to that of his friend Clint Eastwood, who transitioned from his Dirty Harry days to a wiser person who's not afraid to make fun of his slipping abilities in recent films like "Trouble with the Curve."

"That's called evolution," said Sylvester Stallone, who stars with Schwarzenegger as aging inmates in "The Tomb." "There are no more wooly mammoths. Things change, but the one thing you cannot replace is charisma. Certain people have it, and will have it until the day they die."

Schwarzenegger's infamy in fathering a son outside of his high-profile marriage to Shriver initially seemed to hurt his popular appeal. Within weeks of the disclosure, "The Governator," a comic book that would feature his likeness, was canceled.

Ultimately, though, moviegoers will be less interested in Schwarzenegger's political adventures and personal scandals than in what he puts on the screen, says Peter Sealey, founder of The Sausalito Group and a former Columbia Pictures president of marketing and distribution.

"The movie-going audience really don't care about things like infidelity, DUIs," added publicist Howard Bragman, vice-chairman of the firm called Reputation. "They overlook a lot. Ultimately, it remains, how are the movies? Is he credible? Is he going to be a joke?"

(Reporting by Ronald Grover and Zorianna Kit; Editing by Jonathan Weber and Cynthia Osterman)

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LAS VEGAS (AP) -- Headphone maker Monster's gadget show event was expectedly monstrously cheesy with a healthy dose of hype.

Head monster and founder Noel Lee skirted around a stage on a two-wheel Segway scooter at the International CES gadget show Monday, as celebrities, athletes and models touted the company's upcoming line of headphones to about a hundred journalists.

Taking the stage with him were New Orleans Saints' quarterback Drew Brees, rapper Nick Cannon, drummer Sheila E, model Tyson Beckford and boxer Sugar Ray Leonard.

Lee frequently urged the gathering to "give it up" for new products. Introduced at the show for the first time was a line called "Inspiration," which sported metal spikes on the headband.

"Oh, that's too kinky for me," Lee said. "Don't sit on your headphones."

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PARIS (Reuters) - Film star Gerard Depardieu denied that he was leaving his homeland for tax reasons on Monday, saying that, although he now had a Russian passport, he was still very much French.

In an interview with sports channel L'Equipe 21 - his first since a row broke out in December over his decision to buy a house over the border in Belgium - Depardieu said that if he had wanted to leave to avoid tax hikes he would have gone earlier.

"I have a Russian passport, but I remain French and I will probably have dual Belgian nationality. But if I'd wanted to escape the taxman, as the French press say, I would have done it a long time ago," he said.

Depardieu was speaking in Zurich on the sidelines of a football awards ceremony after receiving a new Russian passport on Sunday from President Vladimir Putin.

The 63-year-old star of "Cyrano de Bergerac" and "Green Card" has been accused by French government leaders of trying to dodge a proposed new tax rate for millionaires.

But in a letter last month to Prime Minister Jean-Marc Ayrault, who labeled the actor "pathetic", Depardieu said he was leaving because success was now being punished in France.

Hollande's original proposal to introduce a 75 percent rate on income over 1 million euros ($1.31 million) was struck down by France's Constitutional Court.

While he has said he will press ahead with a tax on the wealthy, it remains unclear whether the redrafted text will be as severe on top earners.

(Reporting By John Irish; Editing by Robin Pomeroy)

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NEW YORK (AP) The musical based on the film "Diner" has postponed its Broadway opening.

Producers said late Sunday night that the Kathleen Marshall-directed show with songs by Sheryl Crow will make its debut on Broadway in the fall, instead of the spring.

Producer Scott Zeiger in a statement says a four-week workshop of the show in November got good feedback and that early fall dates work better for all involved.

Set in Baltimore on Christmas 1959, the story explores the lives of a circle of friends in their early 20s, all set to vintage rock 'n' roll and doo-wop.

Barry Levinson, who wrote and directed the 1982 film, adapted it into the new musical. The film starred Steve Guttenberg, Mickey Rourke, Kevin Bacon, Paul Reiser, Tim Daly, Daniel Stern and Ellen Barkin.

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BEIJING (AP) Brad Pitt is now on China's version of Twitter, and his mysterious first tweet has drawn thousands of comments.

The actor's verified Sina Weibo account sent the message Monday: "It is the truth. Yup, I'm coming." That was forwarded more than 31,000 times and netted over 14,000 comments, many expressing surprise. He gathered more than 100,000 followers.

The IMDb.com movie website says Pitt was banned from ever entering China because of his role in the 1997 "Seven Years in Tibet." The government was upset about the film's portrayal of harsh Chinese rule in Tibet. His later film "Mr. & Mrs. Smith" with Angelina Jolie was popular in China.

Former NBA star Stephon Marbury who now plays for China's professional basketball league is prolific on Weibo and has over 779,000 followers.

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SYDNEY (Reuters) - Looking for a McDonald's in Australia this month? You may bump into a "Macca's" instead.

The international fast food giant will temporarily change signs at selected stores across the country to "Macca's," the affectionate Australian nickname for the chain, in celebration of Australia Day, which falls on January 26 - a move that is its first such globally.

"We're incredibly proud to embrace our Australian-only' nickname," said Mark Lollback, the company's chief marketing officer in Australia, in a statement on Tuesday.

"What better way to show Aussies how proud we are to be a part of the Australian community than change our store signs to the name the community has given us?"

Surveys have showed at least 50 percent of Australians use the nickname.

Thirteen stores will change their store signage this week, starting from the state of New South Wales on Tuesday, the company said. The regular signage will return from Feb 4.

Australian English has a number of unique turns of phrase. According to a national survey, "Macca's" is the second most recognised Australianism, just behind "footy" for Australian rules football.

The popularity of the nickname has also prompted McDonald's to call on Macquarie Dictionary, the authority on the English language in Australia, to include "Macca's" in their online version, a proposal supported by one third of Australians, the company said.

(Reporting By Maggie Lu Yueyang; editing by Elaine Lies)

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TOKYO (Reuters) - Panasonic Corp's answer to the brutal onslaught on its TV sales may be in a product the Japanese firm launched 17 years ago and which is a must-have for U.S. police cars.

Two thirds of the 420,000 patrol cars in the United States are equipped with the company's rugged Toughbook computers, and Panasonic chief Kazuhiro Tsuga sees the niche product as a model for how the sprawling conglomerate can make money beyond a gadget mass market increasingly dominated by Samsung Electronics and Apple Inc.

"What we need are businesses that earn, and they don't necessarily have to have big sales," Tsuga told reporters after his appointment as company president was approved in June.

Tsuga also sees avionics - Panasonic is the world's leading maker of in-flight entertainment systems - automated production machinery, and lighting as profit earners as income from TVs and other consumer electronics dwindles.

Panasonic, Sony Corp and Sharp Corp have been hit hard by South Korean-made TVs, Blu-ray players and mobiles and Apple tablets that threaten to wipe out Japan as a global consumer electronics hub. The Toughbook, sold only to businesses and governments, was conceived as a response to the type of profit sapping competition that is now roiling TVs.

"At the time, we were losing in personal computers to Compaq and IBM," said Hide Harada, who heads the Toughbook unit from the group's headquarters in Osaka, western Japan. IBM later sold its laptop business to China's Lenovo Group and Compaq was absorbed by Hewlett Packard.

"It was a guerilla strategy," Harada said, recalling the Toughbook's launch in 1996. Panasonic's promotion campaign included driving jeeps over its computers, dropping them on the ground and dousing them with coffee on morning TV shows.

At rival Sony, too, signs of a niche strategy are emerging in a battle with Apple and South Korean brands that are making gains from a weaker won currency. Combining technologies from several divisions - from projectors to video cameras and headphones - Sony's 3D Viewer head-mounted visor gives users the feel they are sitting in the middle of a 500-seat movie theater.

The target audience, says product manager Hideki Mori, are those consumers looking to immerse themselves in computer graphics and high quality movies. "Demand has been greater than anticipated," he said, declining to give specific sales numbers.

LOSING GROUND

The two Japanese firms will show off their wares at this week's annual CES consumer electronics show in Las Vegas, an event usually dominated by prototypes for next-generation TV technology. Tsuga is due to deliver the event's keynote speech.

In the past, the Japanese have showcased ultra high-definition 4K televisions, while Samsung and LG Electronics Inc have displayed their ultra-thin OLED (organic light-emitting diode) screens. But, at a price tag likely 10 times that of conventional LCD screens, consumers will take a while to make the generational leap.

Meanwhile, losses at Panasonic, Sony and Sharp mount up. Panasonic has predicted a net loss of $8.9 billion in the year to end-March, while Sharp, which has been bailed out by banks, expects an annual loss of $5.24 billion. Helped by asset sales, Sony should eke out a small profit.

Japan's share of the flat panel TV market has shrunk by around a quarter in the past two years, to around 31 percent, according to the Japan Electronics and Information Technology Industries Association. Amid a prolonged strong yen squeeze, the industry lobby expects Japan's share of the DVD and Blu-ray disc player market to have dropped to around half last year from nearly two-thirds in 2010. Just 8 of every 100 mobile phones sold globally are now Japanese. Manufacturers have shifted TV production overseas, with output in Japan now less than a tenth of what it was two years ago.

Tsuga, who acknowledges Panasonic is a "loser" in consumer electronics, has warned his business units they will be closed or sold if they fail to match Toughbook's success, giving each two years to deliver at least a 5 percent operating margin.

Any niche-winning strategy that takes his company away from mass market products means Tsuga will need fewer workers, investors say. Panasonic is Japan's biggest commercial employer with a workforce of more than 300,000. It plans to axe 10,000 jobs in the year to March on top of the 36,000 that were cut in the previous year. More big cuts in Japan, where major lay-offs are uncommon and severance packages expensive, won't be easy, said Yuuki Sakurai, CEO at Fukoku Capital Management in Tokyo, which manages assets worth $18.4 billion, but doesn't own Panasonic stock.

"It's like trying to chase the course of a battleship. If they want to become a light cruiser or destroyer, they'll have to lose employees," Sakurai said.

GLOBAL STANDARD

Workers Panasonic will likely keep are those in Kobe in western Japan who build the Toughbook PCs - a category defined by a U.S. military quality benchmark that serves as a de facto global standard. Its market share is on a par with Apple's in tablets, with most U.S. police departments willing to pay as much as $3,000 for the rugged laptops which can withstand bumpy high-speed chases and other rigors of street policing.

"They have been near bullet-proof. We had a patrol car catch fire and after all the heat, smoke and water dissipated the computer continued to function," said Bill Richards, logistics commander for the Tucson police in Arizona, whose force owns close to 650 Toughbooks that connect patrol cars with dispatchers, license records and other police databases.

Other customers include the New York Police Department, California Highway Patrol, Brazilian Military Police and British and U.S. military, which use them on unmanned aerial drones.

"Panasonic is the bellwether, the most recognized brand. The Toughbook is almost synonymous with rugged notebooks," said David Krebs, a vice president at VDC Research.

While margins in the global PC market are getting slimmer - research firm IHS iSuppli sees annual sales growth of around 7 percent over the next four years from about 216 million PCs last year - the premium-price, fatter margin, rugged PC niche is seen growing by around 10 percent a year to nearly 1.2 million computers by 2016, according to VDC Research.

ANALOG EDGE, DIGITAL SAMENESS

At the Kobe factory, Toughbooks are put through their paces: hosed down to test water resistance, baked to 50 degrees Celsius, chilled to minus 20 degrees and dropped on their tops, bottoms, sides and corners.

Harada describes it as an analog edge in digital products.

"Whoever makes them, the insides of a computer are pretty much the same. It's the mechanical side that makes us different," he explained.

The creators of Sony's 3D Viewer, too, are looking for mechanical appeal as much as electronic prowess. A second, redesigned model, which is now on sale in Japan, is 25 percent lighter at 330 grams, has a better grip and gives users the option of headphones or earplugs, said Mori. "We want to make it lighter," he added, noting engineers are looking to slim down the heaviest component, the lenses.

While Sony keeps chasing consumers, Panasonic is pursuing a business-to-business niche market model that Tsuga has put at the heart of his revival plan. High on Harada's target list for the Toughbook are Japanese police forces, which don't yet buy the computers.

There are no plans, he said, to make cheaper mass market models - which could protect some jobs in the group.

"We aren't going to put it in Best Buy or Walmart. I don't think it would turn out well."

($1 = 85.9250 Japanese yen)

(Editing by Ian Geoghegan)

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KYOTO (Reuters) - Nintendo Co Ltd's year-end sales of its Wii U games console were steady, though not as strong as when its Wii predecessor was first launched, the Japanese game maker's top executive told Reuters on Monday.

The company, which grew from making playing cards in the late 19th century into the blockbuster Super Mario video game series, is pinning its hopes on the Wii U after posting a first operating loss last year, as gamers ditch console games to play on smartphones and tablets.

"At the end of the Christmas season, it wasn't as though stores in the U.S. had no Wii U left in stock, as it was when Wii was first sold in that popular boom. But sales are not bad, and I feel it's selling steadily," Nintendo President Satoru Iwata said in an interview.

Iwata gave no details on sales or forecasts, but said Nintendo needed to focus on developing attractive software for its 3DS handheld device to draw new users, and increase Wii U sales as it battles competition from popular mobile devices. The Wii U carries video content from Netflix Inc and Hulu, and has a dedicated social gaming network called Miiverse, which allows users to interact and share games tips.

Nintendo said in October it aimed to sell 5.5 million Wii U devices by end-March. Wii U, the successor to the blockbuster Wii machine, went on sale in the United States on November 18. The company later said it sold more than 400,000 of the video game consoles in the first week.

Nintendo sold 638,339 Wii U consoles in Japan between December 8 and 30, according to data from game magazine publisher Enterbrain. The company has sold nearly 100 million of the original Wii units since its launch in 2006.

Rival Microsoft Corp sold more than 750,000 of its Xbox 360 console during the Black Friday week in November - one of the busiest U.S. consumer shopping periods of the year, beating sales of both Sony Corp's

DOUBLE CHALLENGE

Iwata acknowledged the challenge of producing two Wii U models at the same time, as most customers wanted the premium package, which sold out quickly in many places, while there was a glut of the slightly cheaper Wii U model on store shelves.

"It was the first time Nintendo released two models of the game console at the same time ... and I believe there was a challenge with balancing this. Specifically, inventory levels for the premium, deluxe package was unbalanced as many people wanted that version and couldn't find it," he said.

Iwata noted a weaker yen would have little impact on Nintendo's profits this fiscal year, but would positively impact its foreign denominated assets.

Nintendo's Osaka-listed shares earlier ended down nearly 2.1 percent on Monday at 8,980 yen, and have fallen 15 percent since the Wii U was launched.

(Editing by Ian Geoghegan)

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LAS VEGAS (AP) "Ultra-HD" TVs are set to be the talk of International CES, the gadget show kicking off this week in Las Vegas. But the televisions aren't likely to account for much of the market even four years down the road.

That is the conclusion of analysts of the show's host, a day before TV makers such as Samsung, LG and Sony attempt to wow conference attendees with their latest models.

Ultra high-definition TVs, with four times as many pixels as HD TVs, are expected to account for only 1.4 million units sold in the U.S. in 2016, or about 5 percent of the entire market. Sales in the rest of the world are expected to be smaller.

The analysts blamed high prices and low availability for the slow start.

"It's a very, very limited opportunity," said Steve Koenig, director of industry analysis at the Consumer Electronics Association, which officially kicks off the show Tuesday. "The price points here are in the five digits (in U.S. dollars) and very few manufacturers, at least at this stage, have products ready."

The consumer electronics industry is struggling to come back from a weak year in 2012, when an estimated $1.06 trillion worth of goods was sold around the world, down 1 percent from 2011, hurt by a weak European economy and flat TV sales in China.

The market is seen recovering this year, with global sales rising 4 percent to $1.11 trillion, pumped up due to renewed growth in the so-called BRIC countries, led by China, Brazil, Russia and India.

All the more reason for gadget makers to energetically tout their latest innovations. TV makers were somewhat chastened last year as enthusiasm for super-thin and vibrant organic light-emitting diode (OLED) TVs was hampered by production problems and delays. Now they have turned their focus to ultra-HD to drive consumer demand.

Steve Bambridge, business director for boutique research and consumer choices at GfK, said troubles making OLED sets are "not any secret." He added that while some makers planned to sell models this year after introducing them a year ago, he said he "won't be surprised if those go backwards."

Although the show has often unveiled the biggest and best of TV sets, the biggest electronics show in the Americas has increasingly been dominated by computers, tablets and mobile devices.

For good reason: In 2013, CEA and GfK predicted that for the first time, three categories of devices mobile personal computers, tablets and smartphones will account for over half of all consumer electronics spending worldwide.

Shawn DuBravac, the CEA's chief economist, said one trend at the show was the increasing number of exhibitors who display technology that uses a smartphone or tablet as their hub. He noted a 25 percent increase in exhibitors from health and fitness companies, including those that sell heart monitors and blood pressure applications.

He also said the clamshell design of laptop computers, which hasn't changed much in two decades, will face a significant challenge. He expects 30 to 40 different hardware designs for the laptop to be presented on the show floor. Some intriguing computers on display will be giant touch-screen tablets meant for lying flat, and laptops whose screens can swivel around or detach from the keyboard easily.

"The clamshell design is still intact 20 years later. That's starting to change," he said.

More companies are also expected to do more with devices that respond better to a wider range of gestures and more natural speech.

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WASHINGTON (AP) Struggling for the upper hand in the next round of debt talks, Republicans and Democrats this weekend drew lines in the sand they said they'd never cross when it comes to the U.S. debt limit.

The tough talk on the Sunday morning talk shows doesn't bode well for voters who are frustrated by the political gridlock.

"I believe we need to raise the debt ceiling, but if we don't raise it without a plan to get out of debt, all of us should be fired," said Sen. Lindsey Graham, R-S.C.

Last week's deal to avert the combination of end-of-year tax increases and spending cuts known as the "fiscal cliff" held income tax rates steady for 99 percent of Americans but left some other major pieces of business unresolved.

By late February or early March, the Treasury Department will run out of options to cover the nation's debts and could begin defaulting on government loans unless Congress raises the legal borrowing limit, or debt ceiling. Economists warn that a default could trigger a global recession.

Also looming are deep automatic spending cuts expected to take effect at the beginning of March that could further erase fragile gains in the U.S. economy. Then on March 27, the temporary measure that funds government activities expires, and congressional approval will be needed to keep the government running. That's one more chance to fight over spending.

Republicans say they are willing to raise the debt ceiling but insist any increase must be paired with significant savings from Medicare, Medicaid and other government benefit programs. President Barack Obama has said he's willing to consider spending cuts separately but won't bargain over the government's borrowing authority.

"One thing I will not compromise over is whether or not Congress should pay the tab for a bill they've already racked up," Obama said in his weekly radio and Internet address.

House Minority Leader Nancy Pelosi made a similar remark Sunday in insisting the two issues raising the debt ceiling and reducing spending shouldn't be coupled.

"Right now we have to pay the bills that have been incurred," Pelosi said. "And if you want to say cut spending for what we do next, fine, but don't tie it to the debt ceiling."

But Senate Republican Leader Mitch McConnell said spending cuts would have to be part of the equation if the proposal was to get any kind of GOP support.

McConnell on Sunday suggested Republicans were prepared to see the nation default on its spending obligations.

"It's a shame we have to use whatever leverage we have in Congress to get the president to deal with the biggest problem confronting our future, and that's our excessive spending,"

Meanwhile, Democrats said further tax increases for the wealthiest Americans were still possible as Congress looks to close the gap between revenues and expenditures. They say Obama has already agreed to significant spending cuts, and that the latest deal only gets the nation to about half of the revenue it needs to resolve the red ink.

"Trust me, there are plenty of things within that tax code these loopholes where people can park their money in some island offshore and not pay taxes. These are things that need to be closed. We can do that and use the money to reduce the deficit," said Illinois Sen. Dick Durbin, the second-ranking Senate Democrat.

But McConnell bluntly declared that the "tax issue is over" after last week's agreement.

"We don't have this problem because we tax too little; we have it because we spend too much," McConnell said.

McConnell spoke on NBC's "Meet the Press," ABC's "This Week" and CBS' "Face the Nation." Pelosi was on CBS' "Face the Nation." Durbin and Graham appeared on CNN's "State of the Union."

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LOS ANGELES (AP) It took Leatherface and his chainsaw to chase tiny hobbit Bilbo Baggins out of the top spot at the box office.

Lionsgate's horror sequel "Texas Chainsaw 3-D" debuted at No. 1 with $23 million, according to studio estimates Sunday. The movie picks up where 1974's "The Texas Chainsaw Massacre" left off, with masked killer Leatherface on the loose again.

Quentin Tarantino's revenge saga "Django Unchained" held on at No. 2 for a second-straight weekend with $20.1 million. The Weinstein Co. release raised its domestic total to $106.4 million.

After three weekends at No. 1, part one of Peter Jackson's "The Hobbit" trilogy slipped to third with $17.5 million. That lifts the domestic haul to $263.8 million for "The Hobbit." The Warner Bros. blockbuster added $57.1 million overseas to bring its international earnings to $561 million and its worldwide total to about $825 million.

Also passing the $100 million mark over the weekend was Universal's musical "Les Miserables," which finished at No. 4 with $16.1 million, pushing its domestic total to $103.6 million.

Like other horror franchises, "Texas Chainsaw Massacre" has had several other remakes or sequels, but the idea always seems ripe for a new wave of fright-flick fans. Nearly two-thirds of the audience was under 25, too young or not even born when earlier "Texas Chainsaw Massacre" movies came out.

"It's one of those that survives each generation. It's something that continues to come back and entertain its audience," said Richie Fay, head of distribution for Lionsgate.

"Texas Chainsaw" drew a hefty 84 percent of its business from 3-D screenings. Many movies now draw 50 percent or less of their revenue from 3-D screenings, but horror fans tend to prefer paying extra to see blood and guts fly with an added dimension.

In narrower release, Matt Damon's natural-gas fracking drama "Promised Land" had a slow start in its nationwide debut, coming in at No. 10 with $4.3 million after opening in limited release a week earlier.

Released by Focus Features, "Promised Land" stars Damon as a salesman pitching rural residents on fracking technology to drill for natural gas. The film widened to 1,676 theaters, averaging a slim $2,573 a cinema, compared with $8,666 in 2,654 theaters for "Texas Chainsaw."

Hollywood began the year where it left in 2012, when business surged during the holidays to carry the industry to a record $10.8 billion at the domestic box office.

Overall business this weekend came in at $149 million, up 7 percent from the same period last year, when "The Devil Inside" led with $33.7 million, according to box-office tracker Hollywood.com. But with strong business on New Year's Day last week, Hollywood already has raked in $254.2 million, 33 percent ahead of last year.

Box-office results ebb and flow quickly, so that lead could vanish almost overnight. But with a steady lineup of potential hits right through December, studios have a chance at another revenue record this year.

"The month that we had at the end of last year that led us to a record year continued right through New Year's and on now to the first official weekend of 2013," said Hollywood.com analyst Paul Dergarabedian. "We're looking for an even stronger year this year. That's in the realm of possibility. But we have 51 weekends to go."

Estimated ticket sales for Friday through Sunday at U.S. and Canadian theaters, according to Hollywood.com. Where available, latest international numbers are also included. Final domestic figures will be released Monday.

1. "Texas Chainsaw 3-D," $23 million.

2. "Django Unchained," $20.1 million.

3. "The Hobbit: An Unexpected Journey," $17.5 million ($57.1 million international).

4. "Les Miserables," $16.1 million ($14.5 million international).

5. "Parental Guidance," $10.1 million.

6. "Jack Reacher," $9.3 million ($22.3 million international).

7. "This Is 40," $8.6 million.

8. "Lincoln," $5.3 million.

9. "The Guilt Trip," $4.5 million.

10. "Promised Land," $4.3 million.

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Estimated weekend ticket sales at international theaters (excluding the U.S. and Canada) for films distributed overseas by Hollywood studios, according to Rentrak:

1. "Life of Pi," $60.1 million.

2. "The Hobbit: An Unexpected Journey," $57.1 million.

3. "Jack Reacher," $22.3 million.

4. "Wreck-It Ralph," $19.5 million.

5. "Les Miserables," $14.5 million.

6. "Rise of the Guardians," $9.6 million.

7. "Three Warriors on Distant Shores," $9 million.

8. "Skyfall," $7.4 million.

9. "The Impossible," $7 million.

10. "The Tower," $6.5 million.

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Online:

http://www.hollywood.com

http://www.rentrak.com

___

Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.

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WASHINGTON (Reuters) - From his lonely position as an early Republican critic of the Iraq war, former Nebraska Senator Chuck Hagel sometimes lectured his more timid Senate colleagues. "If you wanted a safe job, go sell shoes," he told them.

Now Democratic President Barack Obama, putting together his team for his second term, is poised to choose the intensely independent thinker to run the Pentagon. If Hagel is confirmed by the Senate, he will have to oversee the withdrawal of U.S. troops from another war zone - Afghanistan - and grapple with spending cuts.

The formal announcement of Hagel's nomination could come as early as Monday, Democratic Party sources said.

A social conservative and strong internationalist who co-chaired John McCain's failed Republican presidential campaign back in 2000, Hagel might seem an unlikely pick for Obama's Secretary of Defense, were it not for his opposition to the Iraq war launched by former President George W. Bush. That war was the issue on which Obama also rose to national prominence.

Four years ago, Obama said Iraq was not the only matter where he held similar views with Hagel, a decorated Vietnam veteran who was also once touted as presidential material.

"He's a staunch Republican, but Chuck and I agree almost on every item of foreign policy," Obama said in August 2008, a month after taking Hagel with him on a tour of Iraq.

Since his name emerged last year as a candidate for the Pentagon, some Republicans contend that Hagel has at times opposed Israel's interests. His critics note he voted against U.S. sanctions on Iran and made disparaging remarks about the influence of what he called a "Jewish lobby" in Washington.

Hagel has also been critical of the size of the American military, telling the Financial Times in 2011 that the Defense Department was "bloated" and needed "to be pared down."

Hagel served two terms in the Senate, representing the state of Nebraska, and left in 2008. He is now a professor at Georgetown University, but also serves as co-chairman of the President's Intelligence Advisory Board and a member of the Secretary of Defense's Policy Board.

Since he left the Senate, Hagel has been a big critic of his own party. He told the Financial Times in 2011 that he was "disgusted" by the "irresponsible actions" of Republicans during the debt-ceiling debate.

In 2012 he endorsed a Democrat candidate for Senate from Nebraska - former Senator Bob Kerrey - instead of Republican Deb Fischer, who won.

Hagel would not be the first Republican to serve Obama as Pentagon chief. Bob Gates, Obama's first defense secretary, was a holdover from the years of Republican President Bush.

AS A SENATOR, CLASHED WITH OTHER REPUBLICANS

While he was in the Senate as a senior member of the Foreign Relations, Banking, and Intelligence Committees, Hagel often clashed with his party's leaders on foreign and defense policy.

He co-sponsored legislation to ease U.S. trade restrictions with Cuba, and voted against trade sanctions on Iran and Libya.

In 2002 Hagel said the U.S. should try to improve relations with the countries Bush had branded an "axis of evil" - Iraq, Iran, and North Korea.

The same year, when Hagel expressed doubts about the Bush administration's buildup to war in Iraq, the conservative Weekly Standard magazine branded him part of an "axis of appeasement." But Hagel did vote to give the president the authority to carry out the March 2003 invasion.

Later Hagel said he regretted that vote and became a persistent critic of the conflict. In January 2007, he was the only Republican on the Senate Foreign Relations Committee to support a non binding measure that criticized Bush's decision to send more troops to Iraq.

Hagel told senators they must take a stand on "the most divisive issue in the country since Vietnam," a war in which he fought, but later decided was wrong. His stance put him at odds with his fellow Republican maverick, McCain, and Hagel was pilloried by other Republicans.

Former Vice President Dick Cheney told Newsweek: "I believe firmly in Ronald Reagan's 11th Commandment: thou shalt not speak ill of a fellow Republican. But it's very hard sometimes to adhere to that where Chuck Hagel is involved."

In 2008, Hagel did not make a public endorsement in the presidential race, but his wife Lilibet endorsed Obama and sat with Obama's wife Michelle during the last presidential debate.

Hagel skipped the 2008 Republican convention to travel to Central and South America. Then he further irked Republicans by telling the Omaha World-Herald newspaper that it was a "stretch" to say McCain's running mate Sarah Palin would be qualified to be president.

He was once considered a contender for the 2008 presidency himself, and there was speculation he would join New York Mayor Michael Bloomberg on an independent ticket. Instead he said in September 2007 that he was dropping out of politics and retiring from the Senate when his term ended in 2008.

Born in 1946, Hagel grew up in Nebraska as the oldest of four boys, and made a fortune by launching a cellphone company in the 1980s. His father was also a military man, a World War II veteran who died of a heart attack when Chuck was 16.

Hagel and his younger brother Tom volunteered for Vietnam, and Hagel saved Tom's life there by pulling him out of a burning vehicle. (Reporting By Susan Cornwell; Editing by David Brunnstrom)

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FRANKFURT (Reuters) - German business software maker SAP sees potential for one million new customers in China, five times the number it currently has world-wide, German weekly paper Frankfurter Allgemeine Sonntagszeitung said.

"China will be as important for us as the United States," SAP's co-Chief Executive Jim Hagemann Snabe told the paper, according to an advance extract.

Snabe said SAP wants to open the Chinese market by securing a deal with authorities to allow cloud computing services.

"We want to find a solution with Chinese authorities this year if possible," Snabe told the paper.

As part of SAP's growth strategy, it plans to invest around $2 billion in China by 2015.

(Reporting by Edward Taylor; Editing by Ruth Pitchford)

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(Reuters) - Octogenarian Playboy founder Hugh Hefner briefly swapped his iconic silk pajamas for a tuxedo to marry Crystal Harris, the one-time "runaway bride" who followed through this time at a New Year's Eve wedding.

"Happy New Year from Mr. and Mrs. Hugh Hefner!" the Playboy magazine publisher tweeted early on Tuesday.

The message accompanied a photograph of Hefner, 86, wearing what appeared to be purple silk pajamas under a black bathrobe and snuggling his bride, 26, still wearing her pale pink wedding dress. He also wore his trademark captain's hat.

An hour earlier, Hefner posted a picture of himself in a tuxedo with his bride under an arch of pink and white flowers at the wedding ceremony in the Playboy Mansion in Beverly Hills, California.

"Crystal & I married on New Year's Eve in the Mansion with Keith as my Best Man. Love that girl!" Hefner wrote on Twitter with the picture, referring to his brother Keith Hefner, a songwriter.

The couple tied the knot more than a year after their planned 2011 wedding was scuttled when Harris got cold feet.

The blonde Playboy Playmate of the Month for December 2009 jettisoned the adult entertainment mogul in what was called a "change of heart" five days before a lavish June 2011 wedding before 300 guests.

Harris, who appeared on the July 2011 cover of the adult magazine with a "runaway bride" sticker covering her bottom half, tweeted on Monday that she was ready to commit and changed her name to "Crystal Hefner" on the micro-blogging site.

"Today is the day I become Mrs. Hugh Hefner," Harris, who has a psychology degree, wrote on Twitter after writing "Feeling very happy, lucky, and blessed."

The San Diego native, whose parents are British, said she asked for Christmas ornaments rather than lingerie at her pre-Christmas bridal shower to help decorate Hefner's famed mansion.

Hefner, founder of the Playboy adult entertainment empire, has been married twice before. He and his second wife Kimberley Conrad, also a former Playmate, divorced in 2010 after a lengthy separation. His first marriage to Mildred Williams ended in divorce in 1959. He has two children from each marriage.

(Reporting by Eric Kelsey and Barbara Goldberg; Editing by Ellen Wulfhorst and Paul Simao)

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