Einhorn case against Apple rests on unusual legal tactic

NEW YORK (Reuters) – Hedge fund star David Einhorn wants to force Apple Inc to share some of its huge cash reserves with investors, but his lawsuit rests on a U.S. securities rule that has little legal precedent.

Einhorn’s Greenlight Capital sued the iPad and iPhone maker in U.S. District Court in Manhattan on Thursday to try to prevent Apple from eliminating preferred stock from its charter. The suit is part of Einhorn’s bid to pressure Apple to use some of its $ 137 billion in cash to issue perpetual preferred shares that pay dividends to existing shareholders.

The suit contends Apple violated Securities and Exchange Commission rules that prohibit companies from “bundling” unrelated matters into a single proposal for a shareholder vote.

Establishing that Apple violated the rules could be tricky. Little to no case law exists on the question and the SEC’s own rule is relatively general with little guidance, legal experts said.

Still, James Cox, a professor at Duke University School of Law, thinks Einhorn “has a hell of good case.”

“I think he’s got Apple in the crosshairs,” he added, saying that it “strikes me as a fairly dramatic case of bundling.”

The hedge fund manager is seeking an injunction to block a February 27 shareholder vote on the proposal, saying Apple violated Section 14 of the Securities Exchange Act of 1934. Arguments are to be heard before U.S. District Judge Richard Sullivan on February 22. Apple has until February 15 to file a response with the court.

The proxy proposal at issue, Proposal No. 2, seeks to amend Apple’s articles of incorporation in three ways: by providing for majority voting for directors, establishing a par value for Apple stock and eliminating its ability to issue preferred stock.

Einhorn is represented by law firm Akin Gump Strauss Hauer & Feld, Greenlight’s long-time outside counsel. No lawyer for Apple is yet listed on the court docket and a representative declined to say who would represent Apple in the case.

On Friday, the California Public Employees Retirement System, the biggest U.S. public pension fund and owner of 2.7 million Apple shares, and influential proxy voting firm ISS Proxy Advisory Services both urged investors to vote in favor of the shareholder proposal in question.

“All shareholders should have a vote,” Anne Simpson, CalPERS Senior Portfolio Manager and Director for Corporate Governance said on CNBC. “We don’t want the board cutting a deal on the side with a hedge fund out of fear of a lawsuit that will cancel the annual meeting.

“This is a big issue that needs to be thought through carefully and we want the board to come to all shareholders and give a chance to have their voice heard.

ISS, which issues recommendations on how shareholders should vote on proxy proposals, generally believes the “bundling” of proposals was not in the best interest of shareholders, but supported the elimination of “blank check” preferred shares due to their potential to be misused as a takeover defense.

“Though many investors have viewed Apple’s cash holdings as excessive and wanted to see more of it returned to shareholders, that view may not be universally held: other investors may prefer to see the cash (or at least a large portion of it) deployed for investments and acquisitions,” it said in its Friday statement.

HOW WILL APPLE RESPOND?

It is unclear how Apple will respond in its formal reply to the lawsuits. On Thursday, Apple said Einhorn’s lawsuit was misguided and that adoption of Proposal No. 2 would not preclude preferred share issuances in future.

“Currently, Apple’s articles of incorporation provide for the issuance of ‘blank check’ preferred stock by the Board of Directors without shareholder approval,” Apple said. “If Proposal #2 is adopted, our shareholders would have the right to approve the issuance of preferred stock.”

Einhorn, a well-known short-seller and Apple gadget fan, said in an interview with CNBC the company harbored a “Depression-era” mentality that led it to hoard cash and invest only in the safest, lowest-yielding securities.

Apple nearly went broke in the 1990s before Steve Jobs returned and engineered a sensational turnaround, with products such as the iPhone and iPad that became must-haves for consumers around the world. The company’s near-death experience has led Apple to be exceptionally conservative with its cash.

Greenlight in its complaint said it supports two of the proposals, but not getting rid of preferred stock. Einhorn deems preferred stock superior to dividends or share buybacks and has separately put forward a proposal for an issuance of Apple preferred stock with a perpetual 4 percent dividend.

But as Apple’s proxy proposal is structured, Greenlight said, shareholders have “no choice but to either vote in favor of an amendment they oppose, or against an amendment they support.”

Few lawsuits have ever been filed challenging proposals under the rules, a situation some legal experts attributed to the normally passive nature of shareholders.

“In most cases you’re not going to get a lot of complaining about bundling,” said Brian Slipakoff, special counsel at law firm Duane Morris in Philadelphia.

In one of the few related lawsuits, the 2nd U.S. Circuit Court of Appeals in New York in 1999 recognized an implied private right of action by shareholders suing over alleged anti-bundling rule violations.

That precedent could back Einhorn in his legal standing to bring the case. The appeals court ruling was cited by Greenlight in additional court papers filed late on Thursday.

Francis Vasquez, a lawyer with the law firm White & Case who is not involved in the case, said Apple might argue that because the stockholder proposals in Proposal 2 are all amendments to the charter, they are properly related.

The California company has another five proposals up for a vote, which are not being challenged by Einhorn and do not involve amending Apple’s charter. Those measures focus on matters such as director elections and executive compensation.

“Apple’s first argument likely is going to be, ‘Look, these are all amendments we put in one place, they don’t have to do with the other items,’” Vasquez said.

The anti-bundling rules date from 1992. John Coffee, a professor at Columbia Law School, said the idea was to “prevent managements from bribing shareholders with a sweetener into voting for a proposal they would otherwise reject.”

The case is Greenlight Capital LP, et al., v. Apple Inc., U.S. District Court, Southern District of New York, 13-900.

(Reporting By Nate Raymond in New York. Additional reporting by Poornima Gupta; Editing by Martha Graybow, Tiffany Wu, Tim Dobbyn and Todd Eastham)

Tech News Headlines – Yahoo! News

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Minka Kelly: 'I'm Not Worthy' of Acting with Oprah

By Jennifer Cress

02/08/2013 at 07:40 PM EST

Minka Kelly as Jacqueline Kennedy Onassis

Pacific Coast News

It's intimidating enough to play Jackie O, but Minka Kelly felt even more pressure to perform when she found out who was joining the cast of her latest film, The Butler.

"I'm not worthy. I feel so lucky and grateful. I was like, 'What am I doing here?!' " Kelly tells PEOPLE of starring alongside Robin Williams, Forest Whitaker, John Cusack, Vanessa Redgrave, Jane Fonda and more in the upcoming film, which tells the story of a butler who served eight presidents.

The movie also features another major star: the one and only Oprah Winfrey. "I didn't get to meet Oprah because our shooting schedules were different, but she's a pretty loved lady," Kelly says. "I have yet to hear a bad thing about her!"

Kelly found that the most difficult part of playing Jackie Kennedy was nailing the former first lady's distinct accent. "I think she spoke in a way she thought she should speak, so getting that down was hard. There's a musicality and rhythm to the way she speaks," Kelly explains. "I went to sleep listening to her."

Another tough task? Slipping into the retro costumes. "My body is so different from her because I have curves, so fitting into those vintage clothes was actually really hard," she shares. "Also it was hot – and there was a lot of wool!"

Jennifer Graylock / Getty

But Kelly had no issue slipping into the stunning Oscar de la Renta gown (left) she strutted down the runway in at the Red Dress Collection fashion show in N.Y.C. on Wednesday night. The actress walked for the second year in a row in honor of The Heart Truth campaign, which encourages women to monitor their heart health.

For the month of February, Diet Coke will donate $1 for every person who uploads a heart-inspired photo to Twitter or Instagram using the hashtag #showyourheart. Visit to dietcoke.com/showyourheart for more information.

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After early start, worst of flu season may be over

NEW YORK (AP) — The worst of the flu season appears to be over.

The number of states reporting intense or widespread illnesses dropped again last week, and in a few states there was very little flu going around, U.S. health officials said Friday.

The season started earlier than normal, first in the Southeast and then spreading. But now, by some measures, flu activity has been ebbing for at least four weeks in much of the country. Flu and pneumonia deaths also dropped the last two weeks, the Centers for Disease Control and Prevention reported.

"It's likely that the worst of the current flu season is over," CDC spokesman Tom Skinner said.

But flu is hard to predict, he and others stressed, and there have been spikes late in the season in the past.

For now, states like Georgia and New York — where doctor's offices were jammed a few weeks ago — are reporting low flu activity. The hot spots are now the West Coast and the Southwest.

Among the places that have seen a drop: Lehigh Valley Hospital-Cedar Crest in Allentown, Pa., which put up a tent outside its emergency room last month to help deal with the steady stream of patients. There were about 100 patients each day back then. Now it's down to 25 and the hospital may pack up its tent next week, said Terry Burger, director of infection control and prevention for the hospital.

"There's no question that we're seeing a decline," she said.

In early December, CDC officials announced flu season had arrived, a month earlier than usual. They were worried, saying it had been nine years since a winter flu season started like this one. That was 2003-04 — one of the deadliest seasons in the past 35 years, with more than 48,000 deaths.

Like this year, the major flu strain was one that tends to make people sicker, especially the elderly, who are most vulnerable to flu and its complications

But back then, that year's flu vaccine wasn't made to protect against that bug, and fewer people got flu shots. The vaccine is reformulated almost every year, and the CDC has said this year's vaccine is a good match to the types that are circulating. A preliminary CDC study showed it is about 60 percent effective, which is close to the average.

So far, the season has been labeled moderately severe.

Like others, Lehigh Valley's Burger was cautious about making predictions. "I'm not certain we're completely out of the woods," with more wintry weather ahead and people likely to be packed indoors where flu can spread around, she said.

The government does not keep a running tally of flu-related deaths in adults, but has received reports of 59 deaths in children. The most — nine — were in Texas, where flu activity was still high last week. Roughly 100 children die in an average flu season, the CDC says

On average, about 24,000 Americans die each flu season, according to the CDC.

According to the CDC report, the number of states with intense activity is down to 19, from 24 the previous week, and flu is widespread in 38 states, down from 42.

Flu is now minimal in Florida, Kentucky, Maine, Montana, New Hampshire and South Carolina.

___

Online:

CDC: http://www.cdc.gov/flu/

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Stocks end higher for sixth straight week, tech leads

NEW YORK (Reuters) - The Nasdaq composite stock index closed at a 12-year high and the S&P 500 index at a five-year high, boosted by gains in technology shares and stronger overseas trade figures.

The S&P 500 also posted a sixth straight week of gains for the first time since August.

The technology sector led the day's gains, with the S&P 500 technology index <.splrct> up 1.0 percent. Gains in professional network platform LinkedIn Corp and AOL Inc after they reported quarterly results helped the sector.

Shares of LinkedIn jumped 21.3 percent to $150.48 after the social networking site announced strong quarterly profits and gave a bullish forecast for the year.

AOL Inc shares rose 7.4 percent to $33.72 after the online company reported higher quarterly profit, boosted by a 13 percent rise in advertising sales.

Data showed Chinese exports grew more than expected, a positive sign for the global economy. The U.S. trade deficit narrowed in December, suggesting the U.S. economy likely grew in the fourth quarter instead of contracting slightly as originally reported by the U.S. government.

"That may have sent a ray of optimism," said Fred Dickson, chief market strategist at D.A. Davidson & Co in Lake Oswego, Oregon.

Trading volume on Friday was below average for the week as a blizzard swept into the northeastern United States.

The U.S. stock market has posted strong gains since the start of the year, with the S&P 500 up 6.4 percent since December 31. The advance has slowed in recent days, with fourth-quarter earnings winding down and few incentives to continue the rally on the horizon.

"I think we're in the middle of a trading range and I'd put plus or minus 5.0 percent around it. Fundamental factors are best described as neutral," Dickson said.

The Dow Jones industrial average <.dji> ended up 48.92 points, or 0.35 percent, at 13,992.97. The Standard & Poor's 500 Index <.spx> was up 8.54 points, or 0.57 percent, at 1,517.93. The Nasdaq Composite Index <.ixic> was up 28.74 points, or 0.91 percent, at 3,193.87, its highest closing level since November 2000.

For the week, the Dow was down 0.1 percent, the S&P 500 was up 0.3 percent and the Nasdaq up 0.5 percent.

Shares of Dell closed at $13.63, up 0.7 percent, after briefly trading above a buyout offering price of $13.65 during the session.

Dell's largest independent shareholder, Southeastern Asset Management, said it plans to oppose the buyout of the personal computer maker, setting up a battle for founder Michael Dell.

Signs of economic strength overseas buoyed sentiment on Wall Street. Chinese exports grew more than expected in January, while imports climbed 28.8 percent, highlighting robust domestic demand. German data showed a 2012 surplus that was the nation's second highest in more than 60 years, an indication of the underlying strength of Europe's biggest economy.

Separately, U.S. economic data showed the trade deficit shrank in December to $38.5 billion, its narrowest in nearly three years, indicating the economy did much better in the fourth quarter than initially estimated.

Earnings have mostly come in stronger than expected since the start of the reporting period. Fourth-quarter earnings for S&P 500 companies now are estimated up 5.2 percent versus a year ago, according to Thomson Reuters data. That contrasts with a 1.9 percent growth forecast at the start of the earnings season.

Molina Healthcare Inc surged 10.4 percent to $31.88 as the biggest boost to the index after posting fourth-quarter earnings.

The CBOE Volatility index <.vix>, Wall Street's so-called fear gauge, was down 3.6 percent at 13.02. The gauge, a key measure of market expectations of short-term volatility, generally moves inversely to the S&P 500.

"I'm watching the 14 level closely" on the CBOE Volatility index, said Bryan Sapp, senior trading analyst at Schaeffer's Investment Research. "The break below it at the beginning of the year signaled the sharp rally in January, and a rally back above it could be a sign to exercise some caution."

Volume was roughly 5.6 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.

Advancers outpaced decliners on the NYSE by nearly 2 to 1 and on the Nasdaq by almost 5 to 3.

(Additional reporting by Angela Moon; Editing by Bernadette Baum, Nick Zieminski, Kenneth Barry and Andrew Hay)

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Japan may release data proving Chinese radar incident: media

TOKYO (Reuters) - Japan may release data it says will prove a Chinese naval vessel directed its fire control radar at a Japanese destroyer near disputed islands in the East China Sea, local media reported.

Japan has said a Chinese frigate on January 30 locked its targeting radar on a Japanese destroyer - a step that usually precedes the firing of weapons - but China insists that its vessel used only ordinary surveillance radar.

The incident has added to tensions between the two nations over the disputed islands.

Japan will consider how much normally classified data it can release, the media reports said, citing comments by Japan Defence Minister Itsunori Onodera on local television.

"The government is considering the extent of what can be disclosed," Kyodo news agency quoted Onodera as saying.

China has accused Japan of smearing its name with the accusations, and on Saturday, the official Xinhua news agency continued the war of words.

"By spreading false accusations and posing as a poor victim, Japan had intended to tarnish China's image so as to gain sympathy and support, but a lie does not help," it said in an English language commentary.

"China has been exercising maximum restraint and stayed committed to solving the dispute through dialogue and consultation."

Japan and China have been involved in a series of incidents in recent months in the East China Sea where Chinese and Japanese naval vessels regularly shadow each others movements.

Both countries claim a small clusters of islands, known as Diaoyu in China and Senkaku in Japan, believed to be rich in oil and gas. Controlled by Japan, possession of the uninhabited outcrops and the sea surrounding them would provide China with easier access to the Pacific.

Hopes had been rising for an easing in tensions, including a possible summit between Japanese Prime Minister Shinzo Abe and Chinese Communist Party chief Xi Jinping. But the radar issue has seen China and Japan engage in a fresh round of invective.

China's Defence Ministry on Thursday said Japan's complaints did not "match the facts". The Chinese ship's radar, it said, had maintained regular alerting and surveillance operations and the ship "did not use fire control radar".

Japan's position against China has hardened since Abe led his conservative party to a landslide election victory in December, promising to beef up the military and stand tough in territorial disputes.

The commander of U.S. forces in the Asia-Pacific said the squabble between Japan and China underlined the need for rules to prevent such incidents turning into serious conflict.

China also has ongoing territorial disputes with other Asian nations including Vietnam and the Philippines over islands in the South China Sea.

(Reporting by Tim Kelly; Additional reporting by Ben Blanchard in BEIJING; Editing by Michael Perry)

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Is It OK to Use Kickstarter to Make Money?

Three weeks early and $ 359,630 short, Björk’s Kickstarter project to make an Android version of the Icelandic superstar’s iOS-only educational Biophilia app has been canceled because few people wanted to give charity to a rich person. Kickstarter doesn’t bill itself as crowd-sourced philanthropy, rather describing itself as a “funding platform for creative projects.” But since the beginning, the spirit of the site has involved patronizing a ”creator [who] couldn’t get money through traditional channels,” as Rob Walker explained in a 2011 New York Times Magazine profile of the then-new company. So, the people took it as an abuse of the system when a famous person like Björk, who has enough money to buy herself a penthouse in Brooklyn Heights goes on there soliciting nearly $ 600,000. But it’s not like Björk is the first established rich person to go on there asking for money. Legendary video game designer Tim Schafer, for example, got $ 3.3 million to make his next game, and established designers have also had luck, too.

RELATED: With Multimillion Dollar Pebble Watch, Kickerstarter Really Grows Up

But, this time, something was different. The people have no sympathy for the failure of a millionaire. “A moment’s silence for multimillionaire Björk who couldn’t convince the public to fund her latest whim,” tweeted one particularly upset Mancunian DJ, echoing the sentiments of others who don’t approve of a “super high status persons using Kickstarter.” Even before she stepped away from the ambitious project, people questioned the move, with tweets like “something tells me @bjork probably has the resources to fund porting her paid music app without crowdfunding” and “struggling up-and-coming artist Björk launches a Kickstarterproject? Seriously?” All of a sudden it’s not OK for rich people to make money on Kickstarter again. What changed?

RELATED: What the Future of Our Crowd-Funded Products Will Look Like

The crowd-funding platform has combined elements of philanthropy and commerce, but these days one side can be emphasized more than other. In Jenna Wortham’s profile of the company in 2009, The New York Times described Kickstarter as a place where “Patrons Support Artists on the Web.” Two years later,  Wired‘s Carly Adler described it as a sort of a public research and development unit, calling it “a lab for daring prototypes and ingenious products.”  

RELATED: ‘Fifty Shades’ Outpaces Potter; Authors’ Drunk Texts Imagined

Kickstarter co-Founder Yancey Strickler explained how the service lived between those two poles to Walker. “Money demands answers,” he said. “People want to put money into things that they think will be successful, and to be successful you have to participate in the market, and the market has very specific rules.” At times, the market rewarded good ideas, like the multimillion dollar Pebble smartwatch. But it didn’t take too long for people to realize that money begets more money. Soon, bigger players with better PR and marketing came to the platform and succeeded, as Technology Review‘s David Zax laments: 

What I love about Kickstarter is that any scrappy entrepreneur with an idea can go out there and get funding for his back-of-napkin vision. When you look at the two most successful Kickstarter campaigns to date (here, the runner-up), they involve established or semi-established companies whose promotional videos wear their production value on their sleeve. These aren’t rogue designers, tinkerers, or DIY “makers.” And this isn’t, in a meaningful sense, a kick-start–it’s a 90-yard punt.

Kickstarter entered most people’s consciousness around this time, when it focused more on commercial success. The funding of huge projects like Pebble and that Tim Schafer project led to a saturation of crap on the site from people just trying to get rich quick. And it made some especially mad because it felt like people hitting friends up for money, not a deserved artist seeking philanthropy. The site has turned into more of an online panhandling forum, as Ryan Tate writing for Gawker explained last year, than the people’s republic of crowd-funding for the greater good. 

RELATED: Everything to Know About the Dan Harmon, Charlie Kaufman Kickstarter

Perhaps this huge Björk failure is the manifestation of those feelings. She should have succeeded, with her well produced Kickstarter video touting a project tied to an album with both commercial and critical success. It shouldn’t have mattered that Björk has a ton of her own money, she played by the market rules Strickler talked about. But, it didn’t work out like that. Perhaps that’s because her project, which mixed philanthropy with art, reminded people that the site was once for “starving artist” types, not for rich people to use as PR for their charities.  

Wireless News Headlines – Yahoo! News

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American Idol: Early Favorites Eliminated in Hollywood

TV Watch

American Idol

By Steve Helling

02/07/2013 at 10:30 PM EST

From left: Randy Jackson, Mariah Carey, Ryan Seacrest, Nicki Minaj and Keith Urban

Michael Becker/FOX.

At the beginning of Thursday's American Idol, there were 43 men left in the competition. The next hour was a bloodbath, with many tears and a few tantrums – as well as some standout performances. Curtis Finch Jr., for example, performed a version of Christina Perri's "Jar Of Hearts" that was arguably the strongest of the evening. It may be the season's most overdone song, yet Finch successfully infused it with a rising gospel vibe.

Like every reality show, the contestants learned valuable life lessons as they fought to stay in the game. Here are five:

1. Never Let Them See You Sweat
Paul Jolley looked like he was going to throw up when he took the stage. "I'm so nervous," he said as he fought back tears. The judges watched quietly as he pulled himself together and gave a strong performance of Carrie Underwood's "Blown Away." He advanced, but not before Nicki Minaj criticized him for showing his nerves. "You walked out so defeated and that really irritated me," she said. "Just give us one minute of professionalism."

2. Be Funny and Unexpected
Admit it: It was kind of funny watching Gurpreet Singh Sarin nail "Georgia On My Mind." The judges liked him, perhaps because he doesn't fit any mold. Neither does Charlie Askew, who worked his quirky awkwardness into an intriguing version of Gotye's "Somebody that I Used To Know," complete with a spoken-word intro. "I am obsessed with you," Minaj said, prompting Askew to respond, "Baby, I could say the same thing." She ate it up.

3. Too Much of A Good Thing Can Be Lethal
Matheus Fernandes, one of the standouts from the Los Angeles auditions, was eliminated after a shaky rendition of Kelly Clarkson's "Stronger." The 4'9" contestant made one too many self-depreciating comments about his height, prompting Minaj to say, "Sometimes things can go from being inspiring to becoming you wanting a pity party." When Carey called him a "good person," his face said it all – Fernandes knew he wouldn't be advancing to the next round. In contrast, Lazaro Arbos said nary a word about his stutter, yet he advanced easily, despite an unspectacular rendition of Lady Gaga's "Edge of Glory."

4. If You Lose, Lose Gracefully
The night's "Sour Grapes Award" goes to Papa Peachez, who performed a karaoke-worthy version of Gaga's "Yoü and I." Minaj was unimpressed. "I'm so disappointed," she said. "I don't know why you chose that song." After he was eliminated, Peachez decided he didn't want to win American Idol, after all. "This isn't the competition for me," he said. "I just don't like singing other people's songs."

5. Big Risks Can Reap Big Rewards
Nick Boddington was eliminated in Las Vegas last season, so he came back determined to take some risks. He accompanied himself on the piano while singing Grace Potter's "Stars." It was a strong performance that the judges loved.

After the dust settled, 28 contestants remained. The judges corralled them onto the stage and announced that they would eliminate eight more male contestants next week, after the ladies' auditions.

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Southern diet, fried foods, may raise stroke risk

Deep-fried foods may be causing trouble in the Deep South. People whose diets are heavy on them and sugary drinks like sweet tea and soda were more likely to suffer a stroke, a new study finds.

It's the first big look at diet and strokes, and researchers say it might help explain why blacks in the Southeast — the nation's "stroke belt" — suffer more of them.

Blacks were five times more likely than whites to have the Southern dietary pattern linked with the highest stroke risk. And blacks and whites who live in the South were more likely to eat this way than people in other parts of the country were. Diet might explain as much as two-thirds of the excess stroke risk seen in blacks versus whites, researchers concluded.

"We're talking about fried foods, french fries, hamburgers, processed meats, hot dogs," bacon, ham, liver, gizzards and sugary drinks, said the study's leader, Suzanne Judd of the University of Alabama in Birmingham.

People who ate about six meals a week featuring these sorts of foods had a 41 percent higher stroke risk than people who ate that way about once a month, researchers found.

In contrast, people whose diets were high in fruits, vegetables, whole grains and fish had a 29 percent lower stroke risk.

"It's a very big difference," Judd said. "The message for people in the middle is there's a graded risk" — the likelihood of suffering a stroke rises in proportion to each Southern meal in a week.

Results were reported Thursday at an American Stroke Association conference in Honolulu.

The federally funded study was launched in 2002 to explore regional variations in stroke risks and reasons for them. More than 20,000 people 45 or older — half of them black — from all 48 mainland states filled out food surveys and were sorted into one of five diet styles:

—Southern: Fried foods, processed meats (lunchmeat, jerky), red meat, eggs, sweet drinks and whole milk.

—Convenience: Mexican and Chinese food, pizza, pasta.

—Plant-based: Fruits, vegetables, juice, cereal, fish, poultry, yogurt, nuts and whole-grain bread.

—Sweets: Added fats, breads, chocolate, desserts, sweet breakfast foods.

—Alcohol: Beer, wine, liquor, green leafy vegetables, salad dressings, nuts and seeds, coffee.

"They're not mutually exclusive" — for example, hamburgers fall into both convenience and Southern diets, Judd said. Each person got a score for each diet, depending on how many meals leaned that way.

Over more than five years of follow-up, nearly 500 strokes occurred. Researchers saw clear patterns with the Southern and plant-based diets; the other three didn't seem to affect stroke risk.

There were 138 strokes among the 4,977 who ate the most Southern food, compared to 109 strokes among the 5,156 people eating the least of it.

There were 122 strokes among the 5,076 who ate the most plant-based meals, compared to 135 strokes among the 5,056 people who seldom ate that way.

The trends held up after researchers took into account other factors such as age, income, smoking, education, exercise and total calories consumed.

Fried foods tend to be eaten with lots of salt, which raises blood pressure — a known stroke risk factor, Judd said. And sweet drinks can contribute to diabetes, the disease that celebrity chef Paula Deen — the queen of Southern cuisine — revealed she had a year ago.

The National Institute of Neurological Disorders and Stroke, drugmaker Amgen Inc. and General Mills Inc. funded the study.

"This study does strongly suggest that food does have an influence and people should be trying to avoid these kinds of fatty foods and high sugar content," said an independent expert, Dr. Brian Silver, a Brown University neurologist and stroke center director at Rhode Island Hospital.

"I don't mean to sound like an ogre. I know when I'm in New Orleans I certainly enjoy the food there. But you don't have to make a regular habit of eating all this stuff."

___

Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Asian shares inch higher on solid China trade data

TOKYO (Reuters) - Asian shares edged up on Friday after China's trade data for January handily beat forecasts to underscore a recovery trend, but prices were capped by investors seeking to book profits before next week's Chinese new year holidays.

The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> edged up 0.2 percent, wiping earlier losses when bearish sentiment was carried over from overnight after European Central Bank President Mario Draghi noted risks still facing the euro zone economy. The pan-Asian index rose to a 18-month high on Monday.

China said its exports grew 25.0 percent in January from a year ago, the strongest showing since April 2011 and well ahead of market expectations for a 17 percent rise, while imports also beat forecasts, surging 28.8 percent on the year.

"China's economic conditions are improving and the trade data confirms the continuation of a recovery trend. Not just the trade data but retail, production and investment flows clearly show that the economy bottomed out in the third quarter last year," said Hirokazu Yuihama, a senior strategist at Daiwa Securities in Tokyo.

U.S. stocks edged lower while disappointing results from French drugmaker Sanofi sent European shares down to 2013 closing lows.

Australian shares rose 0.5 percent while South Korean shares <.ks11> climbed 0.6 percent, on track to reverse six losing sessions as investors bought up auto shares after recent declines.

Japan's Nikkei stock average <.n225> fell 1.4 percent as investors took profits from the index's surge to a its highest level since October 2008 on Wednesday. <.t/>

"Asian markets are undergoing a pre-holiday adjustment, keeping prices top-heavy, with many opting to book profits. Prices have gained sharply over the past months, so a correction is healthy. But the upward trend in Asian equities markets remains intact," Daiwa's Yuihama said.

EURO STEADIES

The euro was off its two-week lows hit the previous session as investors took Draghi's comments as signalling concerns about the euro and Europe's growth outlook, boosting the dollar <.dxy> to a one-month high against a basket of key currencies.

The euro edged up 0.1 percent to $1.3410, after slumping to a two-week low of $1.33705 on Thursday, but still below a 14-1/2-month high against of $1.3711 hit last week.

The ECB kept interest rates at a record low 0.75 percent at its policy meeting on Thursday. Draghi said the ECB will monitor the economic impact of a strengthening euro, feeding expectations the currency's climb could open the door to an interest rate cut.

While Draghi said the exchange rate was not a policy target but is important for growth and price stability, he also noted the euro's appreciation was a sign of returning confidence in the currency.

Spain sold more debt than planned on Thursday, auctioning over 18 percent of its full-year medium- and long-term funding target. The strong demand indicated easing worries about Madrid's financing ability despite political uncertainty over a corruption scandal.

The yen remained near lows against the dollar and the euro.

Data showed on Friday Japan logged a current account deficit for a second straight month in December, resulting in its smallest annual surplus on record in 2012, with evidence of deteriorating trade balances supporting the yen's weakening trend.

"Japan will remain a nation of current account surpluses but the surplus will not be as high as it used to be," said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo.

The dollar eased 0.1 percent to 93.53 yen after reaching 94.075 yen, its highest since May 2010 on Wednesday. The euro inched up 0.1 percent to 125.43 yen, having hit its strongest since April 2010 of 127.71 yen on Wednesday.

"Currencies are increasingly becoming part of the policy debate...In the case of the EUR, we believe that the bullish 'overshooting' trend will remain intact as ECB policy continues to promote an asset market friendly environment," Morgan Stanley said in a note.

Morgan Stanley added that the anticipation of the Bank of Japan taking bolder easing steps is set to keep the weak yen trend going, supporting global risk appetite.

U.S. crude futures and Brent were both up 0.2 percent to $96.01 a barrel and $117.48 respectively.

London copper added 0.5 percent to $8,241 a tonne.

(Editing by Eric Meijer)

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Opposition leader's funeral brings day of reckoning for Tunisia

TUNIS (Reuters) - Tunisia's political crisis looked likely to deepen on Friday with strikes and protests planned around the funeral of assassinated opposition politician Chokri Belaid.

Belaid's killing on Wednesday has brought thousands of people onto the streets of the capital Tunis and other cities in violence-marred protests.

Unions have called a general strike for Friday, setting the stage for further confrontation two years on from the pro-democracy revolution that inspired the Arab Spring.

Tunisia is riven by tensions between the dominant Islamists and their secular opponents, and by disillusionment over the lack of social progress since the overthrow of dictator Zine al-Abidine Ben Ali in January 2011.

In response to Belaid's assassination, Prime Minister Hamdi Jebali, an Islamist, said on Wednesday he would dissolve the government, name a non-partisan cabinet of technocrats and hold early elections. But his partners opposed the move and it is yet to be approved by parliament.

No one has claimed responsibility for the killing of Belaid, a lawyer and secular political figure, who was shot by a gunman as he left home for work on Wednesday.

But a crowd set fire to the headquarters of Ennahda, the Islamist party of Prime Minister Jebali, who leads a coalition with two junior secularist parties. Ennahda denies any involvement.

While Belaid had only a modest political following, his criticism of Ennahda policies spoke for many Tunisians who fear religious radicals are bent on snuffing out freedoms won in the first of the revolts that rippled through the Arab world.

"Criminals assassinated Chokri's body, but will not assassinate Chokri's struggle," his widow Besma said on Thursday.

"My sadness ended when I saw thousands flocking to the streets...at that moment I knew that the country is fine and men and women in my country are defending democracy, freedom and life."

All three ruling parties and sections of the opposition rebuffed Jebali's plan to create a small, technocrat government to take over day-to-day matters until elections could be held, demanding they be consulted before any such move.

"In the likely event that there is no agreement, civil unrest will increase, reaching a level that cannot be contained by the police," said Firas Abi Ali of the London-based Exclusive Analysis think-tank.

"If unrest continued for more than two weeks, the army would probably reluctantly step in and back a technocrat government, as well as fresh elections for a new Constituent Assembly."

The economic effect of political uncertainty and street unrest could be serious in a country which has yet to draft a post-revolutionary constitution and which relies heavily on the tourist trade.

The cost of insuring Tunisian government bonds against default rose to its highest level in more than four years on Thursday and ratings agency Fitch said it could further downgrade Tunisia if political instability continues or worsens.

(Writing by Robin Pomeroy; Editing by Angus MacSwan)

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