Samsung and Apple are still the only winners in the mobile market

The duopoly of the U.S. mobile market intensified dramatically in 2012. Despite increased efforts from Motorola, LG (066570), HTC (2498), Nokia (NOK) and Microsoft (MSFT) to gain market share, Samsung (005930) and Apple (AAPL) continue to steal customers away from every other company. During a three-month period ending in November, comScore found that Samsung’s lead in the U.S. smartphone market increased 1.2 percentage points for a controlling 26.9% share. Apple’s smartphone market share grew from 17.1% to 18.5%, gaining 1.4 points following the launch of the iPhone 5. Rounding out the top-five were LG, Motorola and HTC, all of which saw their market shares decrease from August. LG fell 0.7 points to 17.5%, Motorola dropped 0.8 points to 10.4% and HTC’s market share decreased from 6.3% to 5.9%.

[More from BGR: Samsung confirms plan to begin inching away from Android]

[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]

The research firm found that 123.3 million people in the U.S. owned smartphones during the period, an increase of 6% since August. A majority of devices, 53.7%, were powered by Google’s (GOOG) Android operating system, which saw growth of 1.1 percentage points. Apple’s iOS market share increased 0.7 percentage points to 35%.

2012 was a transitional year for Research in Motion (RIMM) and Microsoft. Both companies spent most of the year preparing new operating systems. RIM will unveil its BlackBerry 10 operating system later this month and devices powered by Windows Phone 8 launched this past November. As a result, both companies saw lost share toward the end of 2012; RIM’s BlackBerry platform ranked third with a 7.3% share, down from 8.3% in August, and Microsoft’s operating system dropped 0.6 percentage points to a 3% share of the market.

This article was originally published by BGR

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Taylor Swift’s ”Red” holds down top spot on Billboard chart

LOS ANGELES (Reuters) – Country-pop star Taylor Swift‘s “Red” finished 2012 atop the Billboard 200 album chart on Thursday, claiming the No. 1 spot for the fourth consecutive week.

It was the album’s seventh non-consecutive week at No. 1 on the chart as post-holiday digital sales accounted for more than half of its 241,000 units sold, according to figures from Nielsen SoundScan.

Swift, 23, has now topped the Billboard album chart for 24 weeks in her four-album career, tying Adele for the most weeks by a female artist at number one on the chart since Nielsen SoundScan began tracking sales figures for Billboard in 1991.

The soundtrack to the big screen adaptation of Broadway musical “Les Miserables” jumped 31 spots to number two on the album chart. It sold 136,000 units and was buoyed by a full week on the chart and the release of the film in movie theaters on December 25.

British boy band One Direction placed third with “Take Me Home,” while singer Bruno Mars‘ “Unorthodox Jukebox” and rapper T.I.’s “Trouble Man: Heavy Is the Head” round out the top five.

U.S. album sales for last week were up 27 percent compared to the same week in 2011, at 9.77 million units.

The post-Christmas week, in which many cashed in their holiday gift cards, saw a record for digital song downloads in a week as a total of 55.74 million tracks were downloaded, besting the previous record of 47.73 million from the same week in 2008.

(Reporting by Eric Kelsey; Editing by Sandra Maler)

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Scant Proof Is Found to Back Up Claims by Energy Drinks

Energy drinks are the fastest-growing part of the beverage industry, with sales in the United States reaching more than $10 billion in 2012 — more than Americans spent on iced tea or sports beverages like Gatorade.

Their rising popularity represents a generational shift in what people drink, and reflects a successful campaign to convince consumers, particularly teenagers, that the drinks provide a mental and physical edge.

The drinks are now under scrutiny by the Food and Drug Administration after reports of deaths and serious injuries that may be linked to their high caffeine levels. But however that review ends, one thing is clear, interviews with researchers and a review of scientific studies show: the energy drink industry is based on a brew of ingredients that, apart from caffeine, have little, if any benefit for consumers.

“If you had a cup of coffee you are going to affect metabolism in the same way,” said Dr. Robert W. Pettitt, an associate professor at Minnesota State University in Mankato, who has studied the drinks.

Energy drink companies have promoted their products not as caffeine-fueled concoctions but as specially engineered blends that provide something more. For example, producers claim that “Red Bull gives you wings,” that Rockstar Energy is “scientifically formulated” and Monster Energy is a “killer energy brew.” Representative Edward J. Markey of Massachusetts, a Democrat, has asked the government to investigate the industry’s marketing claims.

Promoting a message beyond caffeine has enabled the beverage makers to charge premium prices. A 16-ounce energy drink that sells for $2.99 a can contains about the same amount of caffeine as a tablet of NoDoz that costs 30 cents. Even Starbucks coffee is cheap by comparison; a 12-ounce cup that costs $1.85 has even more caffeine.

As with earlier elixirs, a dearth of evidence underlies such claims. Only a few human studies of energy drinks or the ingredients in them have been performed and they point to a similar conclusion, researchers say — that the beverages are mainly about caffeine.

Caffeine is called the world’s most widely used drug. A stimulant, it increases alertness, awareness and, if taken at the right time, improves athletic performance, studies show. Energy drink users feel its kick faster because the beverages are typically swallowed quickly or are sold as concentrates.

“These are caffeine delivery systems,” said Dr. Roland Griffiths, a researcher at Johns Hopkins University who has studied energy drinks. “They don’t want to say this is equivalent to a NoDoz because that is not a very sexy sales message.”

A scientist at the University of Wisconsin became puzzled as he researched an ingredient used in energy drinks like Red Bull, 5-Hour Energy and Monster Energy. The researcher, Dr. Craig A. Goodman, could not find any trials in humans of the additive, a substance with the tongue-twisting name of glucuronolactone that is related to glucose, a sugar. But Dr. Goodman, who had studied other energy drink ingredients, eventually found two 40-year-old studies from Japan that had examined it.

In the experiments, scientists injected large doses of the substance into laboratory rats. Afterward, the rats swam better. “I have no idea what it does in energy drinks,” Dr. Goodman said.

Energy drink manufacturers say it is their proprietary formulas, rather than specific ingredients, that provide users with physical and mental benefits. But that has not prevented them from implying otherwise.

Consider the case of taurine, an additive used in most energy products.

On its Web site, the producer of Red Bull, for example, states that “more than 2,500 reports have been published about taurine and its physiological effects,” including acting as a “detoxifying agent.” In addition, that company, Red Bull of Austria, points to a 2009 safety study by a European regulatory group that gave it a clean bill of health.

But Red Bull’s Web site does not mention reports by that same group, the European Food Safety Authority, which concluded that claims about the benefits in energy drinks lacked scientific support. Based on those findings, the European Commission has refused to approve claims that taurine helps maintain mental function and heart health and reduces muscle fatigue.

Taurine, an amino acidlike substance that got its name because it was first found in the bile of bulls, does play a role in bodily functions, and recent research suggests it might help prevent heart attacks in women with high cholesterol. However, most people get more than adequate amounts from foods like meat, experts said. And researchers added that those with heart problems who may need supplements would find far better sources than energy drinks.

Hiroko Tabuchi contributed reporting from Tokyo and Poypiti Amatatham from Bangkok.

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Google puts Motorola campus on market

Smartphone maker Motorola Mobility will move its headquarters from Libertyville to the Merchandise Mart in the summer of 2013, relocating 3,000 employees to downtown Chicago, the company and Mayor Rahm Emanuel announced Thursday. (Source: WGN - Chicago)

Tribune staff

10:47 a.m. CST, January 3, 2013

Google has put up for sale Motorola Mobility Holdings Inc.'s 1.1 million-square-foot headquarters in Libertyville.

The asking price for the property is not being disclosed, according to a spokeswoman for Binswanger, exclusive agent on the property.

The 20-year-old corporate campus, which was used for office space and research and development labs, consists of four connected, multistory buildings and includes a daycare center, cafeteria, full-service gym and other recreational facilities. Renovations to the buildings were undertaken in 1998 through 2005. There also is parking for 3,400 vehicles.

In May, Google completed its acquisition of Motorola Mobility, making it a wholly owned subsidiary. Two months later, the company announced it would move Motorola Mobility's headquarters to the Merchandise Mart in downtown Chicago in 2013.

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Field of Dreams baseball site sold to group led by Oak Lawn couple

They bought it, and now they hope even more people will come.

An investor group led by an Oak Lawn couple has completed its purchase of the famed "Field of Dreams" movie site in Iowa with plans to preserve it and build an adjacent baseball training and tournament complex. The 193-acre property includes the field and farmhouse made famous in the 1989 Kevin Costner baseball classic.

Go the Distance Baseball LLC, which counts baseball Hall of Famer Wade Boggs among its members, closed on the Dyersville, Iowa, property last week for $3.4 million plus interest in a controversial deal that was 2 1/2 years in the making.

"We've got that big milestone under our belt now, and we're just getting into the business of opening the (site)," said Denise Stillman, president and CEO of Go the Distance. She and her husband, Mike, began their pursuit of the land, near Dubuque, in July 2010.

The Stillmans have said they saw "Field of Dreams" on one of their first dates and decided to try to buy the property shortly after they learned it was for sale.

"I'm just really excited about what lies ahead," Denise Stillman said Wednesday. "We've got so much work to do to get the field ready to open again April 1. That's when the tourist site opens."

All-Star Ballpark Heaven is scheduled to open with 12 fields and 60 team "clubhouses" for lodging in 2014, before doubling the number of each by 2017. Once complete, the complex will also include a community center, banquet facilities and an auditorium, among other amenities, according to Go The Distance. Construction is to begin this spring.

"My family's farm has been part of the landscape for more than a century," seller Don Lansing said in a news release announcing the deal's completion. "I have been honored to care for it my entire life and know the Stillmans and their group will care for the movie site like I did."

Lansing grew up in the farmhouse shown in the film. He and his wife, Becky, will continue to work with the new owners, such as by helping maintain the property and by leading tours, Stillman said.

The deal was first announced Oct. 30, 2011, pending investor support, tax incentives and zoning approva,l but was dogged by claims from nearby landowners that the complex would snarl traffic and worsen flooding and that the town acted inappropriately in granting a zoning change.

The site attracts an estimated 65,000 visitors per year.

rmanker@tribune.com

Twitter: @RobManker

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Ubuntu se mete en los celulares con un sistema operativo propio

Al igual que otras plataformas que buscan una convergencia entre el mundo móvil y la PC, Canonical confirmó el arribo de su sistema operativo Ubuntu a los dispositivos móviles. Disponible en una primera instancia como una instalación no oficial para la línea de smartphones Nexus 3, la versión de Linux utilizada en más de 20 millones busca posicionarse como una alternativa ante un mercado dominado por compañías como Apple y Google, junto a las propuestas de Microsoft con Windows Phone y Research in Motion con sus teléfonos BlackBerry.

La compañía dio un primer paso en febrero de 2012 con Ubuntu for Android , una distribución para “mejorar” el Android convencional.

La versión actual es un sistema operativo que sólo comparte con Android el uso de sus drivers (ambos están basados en Linux), pero no usa una máquina virtual Java, por lo que los 700.000 programas con las que cuenta Android no estarán disponibles directamente. Ubuntu tendrá su propia suite de aplicaciones, y permitirá la suma de nuevas que estén programadas en HTML5 o sean nativas.

Canonical también planea lanzar un teléfono de diseño propio que llegaría al mercado en 2014, pero no brindó mayores detalles sobre el fabricante involucrado. Los recientes cambios en la interfaz de Ubuntu, denominada Unity, marcaron una tendencia en la distribución hacia la interacción en pantallas sensibles al tacto, y este lanzamiento representa un primer paso de la distribución para ingresar en el mundo móvil de los smartphones y las tabletas.

Las prestaciones de una PC, en un dispositivo de bolsillo

Según Mark Shuttleworth, CEO de Canonical, en un principio esta versión de Ubuntu apunta a los entusiastas de la plataforma, pero con una rápida expansión hacia el resto de los usuarios. “Por primera vez en la historia los usuarios de los teléfonos celulares pueden tener las prestaciones completas que tiene en una PC, y tenemos una ventaja en esto”, dijo el ejecutivo.

Así lo explica Mark Shuttleworth en video, mostrando los gestos que permiten controlar Ubuntu móvil:

El concepto se asemeja a la modalidad presentada por Motorola con su teléfono Atrix , que se convertía en una PC al ser conectado en una base que servía de conexión con un monitor. A su vez, el móvil también podía ser utilizado como una notebook mediante un dispositivo denominado lapdock.

Aún no disponible para su descarga, la presentación formal de Ubuntu para teléfonos ante el público será en la feria Consumer Electronic Show de Las Vegas, en donde LA NACION estará presente para la cobertura de los primeros lanzamientos del año que realizará la industria.

En busca del podio móvil

Con los dispositivos basados en iOS y Android, varias compañías disputan ser la alternativa a las plataformas dominantes. Microsoft busca de la mano de Nokia posicionar a Windows Phone junto a fabricantes como HTC y Samsung. La compañía de Redmond también desea aprovechar la integración con Windows 8 para sacar provecho de su dominio en el mundo de las PC, un segmento en lento retroceso frente a los teléfonos inteligentes y tabletas.

En este punto, la integración entre las PC y los dispositivos móviles también forman parte de los objetivos de Apple, que replicó el exitoso modelo App Store en su línea de computadoras con Mac OS X, utilizado en el iPhone y la tableta iPad, mientras que Google mantiene su apuesta en su plataforma basada en la nube con servicios como Gmail y Drive, entre otros.

Por su parte, Research in Motion presentará su nueva plataforma BB10 , un demorado lanzamiento que tendrá lugar a fines de este mes y con el que busca recuperar el terreno perdido en los últimos años con un renovado teléfono móvil tactil basado en el sistema operativo QNX, utilizado en su tableta Playbook.

Dentro de este pelotón de contendientes también se encuentra Firefox OS , un competidor que más se asemeja a la filosofía de la plataforma de Canonical y que ofrece un sistema operativo basado en el navegador web de la fundación Mozilla. Cuenta con el apoyo de las principales operadoras de telecomunicaciones y apunta a contar con un teléfono de costo accesible para mercados emergentes.

Por su parte, un grupo de desarrolladores responsables de Meego, la plataforma utilizada por Nokia para el N9, se reunieron para presentar a Sailfish OS , un sistema operativo basado en Linux que se encuentra en una incipiente etapa de desarrollo y que planea tener también, al igual que Firefox OS y Ubuntu, un teléfono para mediados de este año.

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From “Les Misérables” to “The Hobbit,” holiday movies are getting longer

LOS ANGELES (TheWrap.com) – Moviegoers rushing out to catch “Django Unchained” or “The Hobbit” over New Year’s should consider packing an overnight bag.

The average length of a holiday movie has been larded up by nearly 10 minutes since 2011, according to a survey of the running times of the top 10 box office films of the final weekend of the year. They ran well over two hours.

Moreover, the top 10 grossing holiday movies of 2012 were nearly 25 minutes longer than they were just two years ago.

Of the five top earners last weekend, only one film, the family flick “Parental Guidance,” clocks in at under two hours. In contrast, three of those movies, “Django Unchained,” “The Hobbit: An Unexpected Journey” and “Les Misérables,” eat up roughly 160 minutes of ticket-buyers’ time.

And that group doesn’t even take into account hits like “Skyfall” (143 minutes), “The Avengers” (143 minutes) and “The Dark Knight Rises” (165 minutes) or limited release films such as “Zero Dark Thirty” (160 minutes), all of which boast the kind of languorous pacing usually reserved for a David Lean epic.

The capacious running times are testing moviegoers’ patience, as well as bladders. In the Los Angeles Times Monday, Steven Zeitchik bemoaned the series of false endings in films like “Lincoln” and “Life of Pi.” He argued that several accomplished filmmakers are piling on the climaxes and prolonging the ending credits in a way that undermines the emotional impact of their word.

“Hollywood films are struggling to find the exit,” Zeitchik wrote. “Stories that seem to end, end again, and then end once more. Climactic scenes wind down, then wind up. Movies that appear headed for a satisfying resolution turn away, then try to stumble back.”

Also crying out for a bloodier approach in the editing suite was Variety’s Josh Dickey. The swollen run times aren’t just artistically necessary, he noted – they actually damage a film’s box-office take.

“It turns out that a long runtime causes no positive or negative reaction during a film’s marketing period,” Dickey wrote. “And for really big event movies, viewers sometimes feel a longer movie gave them their money’s worth (call it the TGI Friday’s portion-size effect). But once a film gets playing, social response suggests long length can stall its word-of-mouth momentum, usually emerging as secondary complaint – but a persistent one.”

It’s certainly true that exhibitors favor shorter running times for films, because it allows them to cram in more showings on a given day. Despite Dickey’s fears, however, the expansive lengths of movies like “Lincoln” (145 minutes) and “Les Misérables” (157 minutes) haven’t scared off moviegoers.

Both movies will likely gross more than $ 100 million domestically.

Overall, the domestic box office is poised to shatter records with $ 10.8 billion in revenue. Attendance will also likely be up 6 percent by the time 2012 wraps up.

Admittedly, surveying the top 10 grossing films of a particular calendar weekend is a small sample size, but it does appear that audiences and critics are noticing that they are checking their watches more frequently as they follow Bilbo’s adventures in Middle-Earth or Jean Valjean’s travails.

It’s not clear, however, that this is a seasonal anomaly. A decade ago, films like “Gangs of New York” and “The Lord of the Rings: The Two Towers” similarly strained audience’s endurance. The average length of the top 10 films during 2002 was 126.6 minutes, just two minutes shorter than the average this year.

Movies News Headlines – Yahoo! News

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Employers Must Offer Family Health Care, Affordable or Not, Administration Says

WASHINGTON — In a long-awaited interpretation of the new health care law, the Obama administration said Monday that employers must offer health insurance to employees and their children, but will not be subject to any penalties if family coverage is unaffordable to workers.

The requirement for employers to provide health benefits to employees is a cornerstone of the new law, but the new rules proposed by the Internal Revenue Service said that employers’ obligation was to provide affordable insurance to cover their full-time employees. The rules offer no guarantee of affordable insurance for a worker’s children or spouse. To avoid a possible tax penalty, the government said, employers with 50 or more full-time employees must offer affordable coverage to those employees. But, it said, the meaning of “affordable” depends entirely on the cost of individual coverage for the employee, what the worker would pay for “self-only coverage.”

The new rules, to be published in the Federal Register, create a strong incentive for employers to put money into insurance for their employees rather than dependents. It is unclear whether the spouse and children of an employee will be able to obtain federal subsidies to help them buy coverage — separate from the employee — through insurance exchanges being established in every state. The administration explicitly reserved judgment on that question, which could affect millions of people in families with low and moderate incomes.

Many employers provide family coverage to full-time employees, but many do not. Family coverage is much more expensive, and the employee’s share of the premium is typically much larger.

In 2012, according to an annual survey by the Kaiser Family Foundation, premiums for employer-sponsored health insurance averaged $5,615 a year for single coverage and $15,745 for family coverage. The employee’s share of the premium averaged $951 for individual coverage and more than four times as much, $4,316, for family coverage.

Starting in 2014, most Americans will be required to have health insurance. Low- and middle-income people can get tax credits to help pay their premiums, unless they have access to affordable coverage from an employer.

In its proposal, the Internal Revenue Service said, “Coverage for an employee under an employer-sponsored plan is affordable if the employee’s required contribution for self-only coverage does not exceed 9.5 percent of the employee’s household income.”

The rules, though labeled a proposal, are more significant than most proposed regulations. The Internal Revenue Service said employers could rely on them in making plans for 2014.

In writing the law, members of Congress often conjured up a picture of employees working year-round at full-time jobs. But in drafting the rules, the I.R.S. wrestled with the complex reality of part-time, seasonal and temporary workers.

In addition, the administration expressed concern that some employers might try to evade the new requirements by firing and rehiring employees, manipulating their work hours or using temporary staffing agencies. The rules include several provisions to prevent such abuse.

The law says an employer with 50 or more full-time employees may be subject to a tax penalty if it fails to offer coverage to “its full-time employees (and their dependents).”

Employers asked for guidance, and the Obama administration provided it, saying that a dependent is an employee’s child under the age of 26.

“Dependent does not include the spouse of an employee,” the proposed rules say.

Thus, employers must offer coverage to children of an employee, but do not have to make it affordable. And they do not have to offer coverage at all to the spouse of an employee.

The administration said that the rules — which apply to private businesses, nonprofit organizations and state and local government agencies — would require changes at many work sites.

“A number of employers currently offer coverage only to their employees, and not to dependents,” the I.R.S. said. “For these employers, expanding their health plans to add dependent coverage will require substantial revisions to their plans.”

In view of this challenge, the agency said it would grant a one-time reprieve to employers who fail to offer coverage to dependents of full-time employees, provided they take steps in 2014 to come into compliance. Under the rules, employers must offer coverage to employees in 2014 and must offer coverage to dependents as well, starting in 2015.

The new rules apply to employers that have at least 50 full-time employees or an equivalent combination of full-time and part-time employees. A full-time employee is a person employed on average at least 30 hours a week. And 100 half-time employees are considered equivalent to 50 full-time employees.

Thus, the government said, an employer will be subject to the new requirement if it has 40 full-time employees working 30 hours a week and 20 half-time employees working 15 hours a week.

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Dow soars 2% after deal to avoid 'cliff'

NEW YORK (Reuters) - Stocks kicked off the new year with their best day in over a year on Wednesday, sparked by relief over a last-minute deal in Washington to avert the "fiscal cliff" of tax hikes and spending cuts that threatened to derail the economy's growth.

In 2013's first trading session, the S&P 500 achieved its biggest one-day gain since December 20, 2011, pushing the benchmark index to its highest close since September 14.

Concerns over Washington's ability to sidestep the cliff had driven the S&P 500 down for five straight sessions, before signs that a resolution was near sent the benchmark index higher on the final trading session of 2012.

The CBOE Volatility Index or the VIX , Wall Street's favorite gauge of investor anxiety, dropped 18.5 percent to 14.68 at the close. The VIX has fallen 35.4 percent over the past two sessions, the biggest 2-day percentage drop in the history of the index.

The Dow Jones industrial average jumped 308.41 points, or 2.35 percent, to 13,412.55 at the close. The Standard & Poor's 500 Index gained 36.23 points, or 2.54 percent, to finish at 1,462.42. The Nasdaq Composite Index climbed 92.75 points, or 3.07 percent, to end at 3,112.26.

U.S. markets were closed on Tuesday for New Year's Day.

Market breadth reflected the strong rally, with 10 stocks rising for every one that fell on the New York Stock Exchange. All 10 of the S&P 500 industry sector indexes gained at least 1 percent. The S&P financial index shot up 2.9 percent.

The S&P Information Technology index gained 3.2 percent, including Hewlett-Packard , which climbed 5.4 percent to $15.02. HP's gain followed a miserable 2012 when the stock fell nearly 45 percent as one of the S&P 500's worst performers for 2012.

On Tuesday, Congress passed a bill to prevent huge tax hikes and delay spending cuts that would have pushed the world's largest economy off a "fiscal cliff" and possibly into recession.

The vote avoided steep income-tax increases for a majority of Americans, but failed to resolve a major showdown over cutting the budget deficit, leaving investors and businesses with only limited clarity about the outlook for the economy. Spending cuts of $109 billion in military and domestic programs were temporarily delayed, and another fight over raising the U.S. debt limit also looms.

"We got through the fiscal cliff. The next big thing, and probably more contentious thing, is negotiating the debt ceiling and possibly entitlement reform in early 2013," said Jim Russell, senior equity strategist for U.S. Bank Wealth Management in Cincinnati.

Hard choices about budget cuts and the critical need to raise the debt ceiling will confront Congress about the same time in two months "so the fur will be flying," Russell said.

U.S. stocks ended 2012 with the S&P 500 up 13.4 percent for the year, as investors largely shrugged off worries about the fiscal cliff. For the year, the Dow gained 7.3 percent and the Nasdaq jumped 15.9 percent.

Bank shares rose following news that U.S. regulators are close to securing another multibillion-dollar settlement with the largest banks to resolve allegations that they unlawfully cut corners when foreclosing on delinquent borrowers.

Bank of America Corp rose 3.7 percent to $12.03 and Citigroup Inc gained 4.3 percent to $41.25. The KBW bank index rose 3.2 percent.

Shares of Zipcar Inc surged 47.8 percent to $12.18 after Avis Budget Group Inc said it would buy Zipcar for about $500 million in cash to compete with larger rivals Hertz and Enterprise Holdings Inc. Avis advanced 4.8 percent to $20.77.

Shares of Apple rose 3.2 percent to $549.03, helping to lift the S&P information technology index up 3.2 percent following a report that the most valuable tech company has started testing a new iPhone and a new version of its iOS software.

Economic data from the Institute for Supply Management showed U.S. manufacturing ended 2012 on an upswing despite fears about the fiscal cliff, but the Commerce Department reported that construction spending fell in November for the first time in eight months.

Volume was heavy, with about 7.8 billion shares traded on the New York Stock Exchange, the NYSE MKT and the Nasdaq, well above the 2012 daily average of 6.42 billion.

(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)

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House Republicans balk at fiscal cliff deal

WASHINGTON (Reuters) - Last-minute efforts to step back from the "fiscal cliff" ran into trouble on Tuesday as Republicans in the House of Representatives balked at a deal that would prevent Washington from pushing the world's biggest economy into a recession.

House Republicans complained that a bill passed by the Senate in a late-night show of unity to prevent a budget crisis contained tax hikes for the wealthiest Americans but no spending cuts. Some conservatives sought to change the bill to add cuts.

That would set up a high-stakes showdown between the two chambers and risk a stinging rebuke from financial markets that are due to open in Asia in a few hours.

The Senate would refuse to accept any changes to the bill, a Senate aide said, and it appeared increasingly possible that Congress could push the country over the fiscal cliff after all, despite months of effort.

Strictly speaking, the United States went over the cliff in the first minutes of the New Year because Congress failed to produce legislation to halt $600 billion of tax hikes and spending cuts that start kicking in on January 1.

But with financial markets and federal government offices closed for the New Year's Day holiday, lawmakers had a little more time to work out a compromise without real-world consequences.

The Senate bill drew overwhelming support from Republicans and Democrats alike when it passed by a vote of 89 to 8.

But Republicans who control the House expressed wide dismay with the measure, which includes only $12 billion in spending cuts along with $620 billion in tax increases on top earners.

Majority Leader Eric Cantor, the No. 2 Republican in the House, told reporters after huddling with other Republicans that he does not support the Senate's bill.

"The lack of spending cuts in the Senate bill was a universal concern amongst members in today's meeting. Conversations with members will continue throughout the afternoon on the path forward," said Cantor spokesman Rory Cooper.

Republicans returned for a second meeting at 5:15 p.m. EST (2215 GMT).

Republicans could face a backlash if they scuttle the deal. Income tax rates rose back to 1990s levels for all Americans at midnight, and across-the-board spending cuts on defense and domestic programs would begin to kick in on Wednesday.

Economists say the combination of tax cuts and spending cuts could cause the economy to shrink, and public opinion polls show Republicans would shoulder the blame.

MARKET DISCIPLINE?

Lingering uncertainty over U.S. fiscal policy has unnerved investors and depressed business activity for months.

Financial markets have staved off a steep plunge on the assumption that Washington would ultimately avoid pushing the country off the fiscal cliff into a recession.

Several Republicans said the fight could spill over until Wednesday, at which point they could be pressured by financial markets to accept the Senate bill.

"Everyone knows once the markets open tomorrow our courage drops in direct proportion to the market fall," said one Republican lawmaker who spoke on condition of anonymity.

The bill passed by the Democratic-led Senate at around 2 a.m. would raise income taxes on families earning more than $450,000 per year and limit the amount of deductions they can take to lower their tax bill.

Low temporary rates that have been in place for less-affluent taxpayers for the past decade would be made permanent, along with a range of targeted tax breaks put in place to fight the 2009 economic downturn.

However, workers would see up to $2,000 more taken out of their paychecks annually as a temporary payroll tax cut was set to expire.

The non-partisan Congressional Budget Office said the Senate bill would increase budget deficits by nearly $4 trillion over the coming 10 years, compared to the budget savings that would occur if the extreme measures of the cliff were to kick in.

But the bill would actually save $650 billion during that time period when measured against the tax and spending policies that were in effect on Monday, according to the Committee for a Responsible Federal Budget, an independent group that has pushed for more aggressive deficit savings.

(Additional reporting by Richard Cowan; Writing by Andy Sullivan; Editing by Alistair Bell and Eric Beech)

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