School murders silence “cliff” rhetoric as deadline nears






WASHINGTON (Reuters) – Mass murder in Connecticut silenced “fiscal cliff” talk on Saturday as the White House and Congress quietly got ready for a final scramble to avert the tax hikes and spending cuts set for the New Year, with sessions of the U.S. House of Representatives now scheduled just days before Christmas.


President Barack Obama canceled a trip he had planned to make next Wednesday to Portland, Maine to press his case for tax hikes for the wealthy. His weekly radio and Internet address on Saturday focused on Newtown, the site of Friday’s school shootings, in which a gunman killed 20 children and six adults before taking his own life.






House Speaker John Boehner of Ohio canceled the standard Republican radio response to Obama “so that President Obama can speak for the entire nation at this time of mourning,” he said in a statement issued late Friday.


The moratorium on cliff pronouncements masked a growing recognition that the two sides could remain deadlocked at the end of the year on the key sticking point – whether to leave low tax rates in place except for high earners, as Obama wants, or extend them for all taxpayers, as Boehner wants.


With multiple polls showing that the public supports Obama’s position, Republicans in the U.S. Senate prodded their counterparts in the House to make a face-saving retreat, in a fashion that would allow Obama’s proposal to pass the Republican-controlled House while simultaneously letting Republicans cast a vote against it.


Republicans could then shift the debate onto territory they consider more favorable to them, cutting government spending to reduce the deficit.


“Just about everyone is throwing stuff on the wall to see if anything sticks,” one Republican aide said with reference to various proposals being discussed on how to proceed. Alluding to public opinion polls, the aide added: “We know if there is no deal, we will get blamed.”


“We could win the argument on spending cuts,” said a Republican senator who asked not to be identified. “We aren’t winning the argument on taxes.”


However, Republican leaders in both chambers are leery about seeming to cave on taxes. “There’s concern that if we did that, Obama would simply declare victory and walk away and not address spending,” said one aide. “We don’t trust these guys.”


Some of the prodding was coming from Senate Minority Leader Mitch McConnell of Kentucky.


Don Stewart, a McConnell spokesman, said the minority leader in the Democratic-controlled Senate hasn’t embraced any single plan, but has discussed and circulated measures offered by fellow Senate Republicans.


“Senator McConnell does not advocate raising taxes on anybody or anything,” Stewart said.


“We’re focused on getting a balanced plan from the White House that will begin to solve the problem of our debt and deficit to improve the economy and create American jobs,” said Boehner spokesman Michael Steel.


“Right now, all the president is offering is massive tax hikes with little or no spending cuts and reforms,” Steel said.


House Majority Leader Eric Cantor scheduled “possible legislation related to expiring provisions of law,” a reference to the expiring tax cuts, for the end of the week, portending a weekend session.


Cantor has said the House would meet through the Christmas holidays and beyond.


Hopes expressed after the November6 general election of some “grand bargain” on deficit reduction have all but disappeared, at least for this year. This is partly because time is running out and partly result of growing warnings from Democrats in Congress that they would not support big changes in the Medicare program, the government-run health insurance program for seniors that is a major contributor to the government’s debt.


House Democratic Minority Leader Nancy Pelosi of California ruled out one frequently mentioned proposal – raising the age of eligibility for Medicare, in a December 12 CBS television interview.


Asked if she was drawing a “red line,” around that idea, Pelosi said her comments were “something that says, ‘don’t go there,’ because it doesn’t produce money.


(Reporting by Thomas Ferraro and Kim Dixon; Editing by Fred Barbash and David Brunnstrom)


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Police hope motive emerges from evidence in shooter's home


Conn. State police spokesman Lt. Paul Vance at Saturday morning's news conference. (Jason Sickles/Yahoo News)


NEWTOWN, CT - The Sandy Hook school principal and another staffer were killed after lunging at a gunman who forced his way inside to begin a deadly shooting spree, the regional school superintendent said Saturday.


The principal, Dawn Hochsprung, 47, and school psychologist Mary Sherlach, 56, died along with 4 other adults and 20 children in the second deadliest mass shooting in U.S. history. The alleged shooter, 20-year old Adam Lanza, was found dead at the scene, and his mother, Nancy Lanza, was discovered dead at their home.


Newtown school superintendent Janet Robinson told reporters that the two educators and other staff members had put themselves in harms way to protect children once it became clear the school was under siege.


"The teachers were really, really focused on saving their students," Robinson said.


Police on Saturday said evidence recovered at gunman Lanza's home may provide a motive for the massacre.


State police spokesman Lt. Paul Vance declined to provide specifics about the evidence but said, "we're hopeful it will paint a complete picture."


Authorities say Lanza  killed his mother at their home Friday morning before driving to Sandy Hook.


[Related: Follow the latest updates from our reporters in Newtown]


Armed with two semi-automatic pistols, Lanza rapidly sprayed bullets in hallways and classrooms. Lanza killed himself before police officers could reach him.


Lt. Vance said all the bodies were removed from the school overnight. A medical examiner is expected to release the names of the victims later today.


Police have assigned a trooper to support each victim's family in the days ahead. Vance asked reporters to respect the families' grief and privacy.


"This is an extremely heartbreaking thing for them to endure," Lt. Vance said.


Police were expected to release the names of the victims Saturday afternoon. Some names were already being disclosed by family members, including teachers Lauren Rousseau, 30, and Vicki Soto, 27.


It will likely take investigators two more days to process the school crime scene where it is believed Lanza fired as many as 100 rounds from his guns.


"It's going to be a slow, painstaking process," Lt. Vance said.



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Evidence at suspected shooter’s home may point to motive, police say


Conn. State police spokesman Lt. Paul Vance at Saturday morning's news conference. (Jason Sickles/Yahoo News)


NEWTOWN, CT - Evidence recovered at gunman Adam Lanza's home may provide a motive for the massacre that left 26 dead at an elementary school, police said on Saturday.


State police spokesman Lt. Paul Vance declined to provide specifics about the evidence but said, "we're hopeful it will paint a complete picture."


Authorities say Lanza, 20, killed his mother Nancy Lanza, at their home Friday morning before driving to Sandy Hook Elementary where he forced his way in to commit one of the worst mass shootings in U.S. history.


[Related: Follow the latest updates from our reporters in Newtown]


Armed with two semi-automatic pistols, Lanza rapidly sprayed bullets in hallways and classrooms. Twenty children, many of them kindergarteners, and six faculty members lost their lives. Lanza killed himself before police officers could reach him.


Lt. Vance said all the bodies were removed from the school overnight. A medical examiner is expected to release the names of the victims later today.


Police have assigned a trooper to support each victim's family in the days ahead. Vance asked reporters to respect the families' grief and privacy.


"This is an extremely heartbreaking thing for them to endure," Lt. Vance said.


Principal Dawn Hochsprung, 47, and first-grade teacher Vicki Soto, 27, have already been identified by family and friends as two of the slain staffers. Both are being heralded as heroes for putting themselves in harms way to protect children and colleagues.


It will likely take investigators two more days to process the school crime scene where it is believed Lanza fired as many as 100 rounds from his guns.


"It's going to be a slow, painstaking process," Lt. Vance said.



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Top Canada court upholds anti-terrorism law in unanimous ruling






OTTAWA (Reuters) – Canada‘s Supreme Court on Friday upheld an anti-terrorism law enacted after the September 11, 2001, attacks on the United States, ruling unanimously that those who choose to engage in terrorism must “pay a very heavy price.”


The law’s constitutionality was challenged by Mohammad Momin Khawaja, convicted in Canada of terrorism for involvement with a British group that had plotted unsuccessfully to set off bombs in London.






It was also challenged by two men accused of terrorism by the United States for trying to buy missiles or weapons technology for the Sri Lankan Tamil Tigers.


The court rejected arguments that the law’s definition of terrorism was overly broad. It upheld Khawaja’s life sentence and confirmed the orders to extradite the other two to the United States.


Khawaja, a Canadian of Pakistani descent, was the first to be convicted under the law. He was sentenced in 2008 to 10-1/2 years in prison, and his sentence was then extended to life after appeal by the government.


The trial judge noted that Khawaja referred to Osama Bin Laden as “the most beloved person to me in the … whole world, after Allah.” He was found to have participated in a terrorism training camp in Pakistan and to have designed a device dubbed the “hi fi digimonster” for detonating bombs.


“The appellant was a willing participant in a terrorist group,” Supreme Court Chief Justice Beverley McLachlin wrote in the 7-0 decision, adding that he was “apparently remorseless.”


“He was committed to bringing death on all those opposed to his extremist ideology and took many steps to provide support to the group. The bomb detonators he attempted to build would have killed many civilians had his plans succeeded.”


The law applies to any act committed for a political, religious or ideological purpose with the intention of intimidating the public by causing death or serious bodily harm, or substantial property damage, or causing serious interference with an essential service.


The court also ruled that Canada can proceed to extradite two men the United States has accused of involvement with the Tamil Tigers, which waged a bloody war for independence in Sri Lanka and is considered a terrorist organization by Washington and Ottawa.


The Canadian government declined to comment on when they would be extradited.


Piratheepan Nadarajah was alleged to have tried to purchase surface-to-air missiles and AK-47 assault rifles for the Tamil Tigers from an undercover officer posing as a black-market arms dealer on Long Island, New York.


The other man, Suresh Sriskandarajah, was alleged to have helped Tamil Tigers get electronic equipment, submarine and warship design software and communications equipment.


They surrendered to the government ahead of the court decision, their lawyers said.


BEYOND ‘LEGITIMATE EXPRESSION’


The court disagreed that the federal law’s terrorism provisions had put a chilling effect on Canadians’ freedom of expression and was disproportionately broad.


“Only individuals who go well beyond the legitimate expression of a political, religious or ideological thought, belief or opinion, and instead engage in one of the serious forms of violence – or threaten one of the serious forms of violence – listed (in the law) need fear liability under the terrorism provisions of the Criminal Code,” McLachlin wrote.


She quoted with approval the appeals court decision in the Khawaja case that faulted the Ottawa trial judge’s sentence for failing to send a “clear and unmistakable message that terrorism is reprehensible and those who choose to engage in it will pay a very heavy price.”


The original sentence of 10-1/2 years does “not approach an adequate sentence for such acts,” she concluded.


Khawaja’s lawyer, Lawrence Greenspon, said it was a “terrible day” for his client and said too often people were investigated or prosecuted for their religious or political beliefs.


“It’s a … very unfortunate ruling for minorities in this country, and we’re extremely disappointed with the result,” he told reporters in the foyer of the Supreme Court.


Justice Minister Rob Nicholson said the decision was important as Canada was not immune to the threat of terrorism. “The court sent a strong message that terrorism will not be treated leniently in Canada,” he said.


The cases are Mohammad Momin Khawaja v. Her Majesty the Queen. (Ont) (34103); Suresh Sriskandarajah v. United States of America, Minister of Justice and Attorney General of Canada (34009), Piratheepan Nadarajah v. United States of America, Minister of Justice and Attorney General of Canada (34013).


(Additional reporting by Louise Egan; Editing by Jackie Frank and Xavier Briand)


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“Homeland” leads old favorites in Golden Globes TV race






LOS ANGELES (Reuters) – Cable shows got more Golden Globe nominations for television than traditional network programs on Thursday as HBO‘s political movie “Game Change” and Showtime‘s psychological thriller series “Homeland,” – one of last year’s big winners – led the race.


“Homeland” led the TV drama category with four nominations including best drama, best actor for Damian Lewis and best actress for Claire Danes in her role as a bi-polar CIA agent tracking down a home-grown Muslim extremist.






The show faces stiff competition from British aristocratic drama “Downton Abbey, which also won an acting nod for Michelle Dockery, along with “Breaking Bad,” “Boardwalk Empire,” and newcomer “The Newsroom.”


“‘Homeland’ fans seemed to be a little more split on whether creatively the second season was as successful as the first season so it’ll be curious if that ends up impacting the show’s chances in terms of taking home the awards,” James Hibberd, senior staff writer at Entertainment Weekly, told Reuters.


Downtown Abbey” creator Julian Fellowes told Reuters: “We’re up against the big boys now, but the whole thing is very flattering and exciting.”


He added: “The themes of the show are pretty international, they’re about adjusting to change and being caught out by what life does to you…all of that is common to every country.”


HBO movie “Game Change,” about the surprise selection of Sarah Palin as John McCain’s running mate in the 2008 presidential campaign, landed five nods in the miniseries/movie category, including for actors Julianne Moore and Woody Harrelson.


“‘Game Change’ is pure awards bait. It’s a well-done, smart political drama based on a book, with a certain amount of left-wing political slant and it’s very much the type of movie you’d expect awards voters to like,” Hibberd said.


New HBO drama “The Newsroom” bumped long-time awards favorite “Mad Men” from the best drama category, surprising many who believed the stylish advertising series was a shoo-in.


“The Globes tend to like the glamorous and sophisticated dramas with big city settings and they tend to shy away from gritty, rural Americana dramas…about sweaty guys with guns instead of charming men in suits, like ‘The Newsroom’ and ‘Boardwalk Empire,’” Hibberd said.


He noted that the only exception was “Breaking Bad,” which finally made the best drama category this year after four seasons on air.


Other notable snubs included HBO‘s epic fantasy drama “Game of Thrones,” which failed to pick up any nominations, and Ryan Murphy’s miniseries “American Horror Story: Asylum” which landed one best actress nod for Jessica Lange, who took home the award for 2012.


‘MODERN FAMILY’ LEADS COMEDY RACE


While last year’s Golden Globes picked newcomers over staple awards favorites for leading nominees, this year’s comedy categories saw the return of many old faces, including “Modern Family,” which led the comedy race with three nods.


Comedians Tina Fey and Amy Poehler, who will be hosting the awards ceremony on January 13, each landed a best comedy actress nod in the television race for their long-popular NBC comedies – Fey for “30 Rock” and Poehler for “Parks and Recreation.”


“You can be sure that the hosts are going to have fun with this during the telecast, they’re going to find ways to play off this during their presentation,” Hibberd said.


Fey and Poehler will replace Ricky Gervais at the awards gala dinner, after the British comedian helmed the Globes with his risqué dry humor for three years.


HBO‘s raunchy new comedy “Girls” earned two key nominations in the best TV comedy category and best comedy actress for Lena Dunham, while Showtime‘s new satire “House of Lies” landed the show’s lead Don Cheadle a best actor nod.


With the exception of NBC’s musical comedy “Smash” in the best comedy series category, no new network comedies managed to break into key races, which Hibberd attributed to a “disappointing” fall season.


Cable channel HBO picked up 17 nominations and Showtime garnered 7 across all major television categories. Networks ABC had 5, CBS and NBC got 4, and Fox got 2.


(Reporting By Piya Sinha-Roy, editing by Jill Serjeant)


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Hillary Clinton recovering after sustaining concussion: spokesman






WASHINGTON (Reuters) – U.S. Secretary of State Hillary Clinton is recovering after sustaining a concussion, a State Department spokesman said on Saturday.


“While suffering from a stomach virus, Secretary Clinton became dehydrated and fainted, sustaining a concussion,” Clinton spokesman Philippe Reines said in a statement.






“She has been recovering at home and will continue to be monitored regularly by her doctors. At their recommendation, she will continue to work from home next week, staying in regular contact with department and other officials. She is looking forward to being back in the office soon,” Reines added.


Clinton fell ill with a stomach virus last weekend and was forced to cancel a planned trip to the Middle East and North Africa.


(Reporting by Andrew Quinn; Editing by Will Dunham)


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App of the Week: Manilla






App Name: Manilla


Price: Free






Available Platforms: Apple’s iOS ( iPad, iPod Touch and iPhone), Android


What does this app do? Manilla provides a secure way for you manage and organize your bills on your mobile device, tablet or desktop. This finance app, of which an updated version for the iPhone 5 was released this week, allows you to link to your accounts, set up reminders to pay your bills, and keep track of household finances such as utilities and services.


From your mobile device, select the “Accounts” tab to see a queue of accounts you linked to within the app. On the bottom right, tap the settings button to add an account.The new release also lets you manage your accounts with local businesses or individuals who do not have an online payment system – the landscaper or babysitter, for example.


Press the “Reminders” tab to select a business you use, such as your wireless carrier. The app will display a screen with your account and bill information as well as let you set up reminders to pay your bill, which will be delivered through email or text message. Select, “View Bill,” to see details, such as when you made your last payment, or select “Documents” and the app’s built in PDF viewer will display your bill within the application.


You cannot pay your bill directly from the app. However, select “Go to Site” and the app will direct you to a business’s website where you can pay your bill.


Is it easy to set up? Yes. Once you download Manilla, the app requires you to register with an email and password.


Should I try it? Manilla takes all of your bill information and puts into an easy-to-use interface, and with over 3,500 businesses the app makes it easy to link to a variety of accounts. If you’re interested in building and monitoring a budget, too, you will find a better solution with Mint.com’s app. Still, Manilla makes keeping track of all of your bills simple – a sure way to stay on top of your finances.


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NKorea rocket launch shows young leader as gambler






PYONGYANG, North Korea (AP) — A triumphant North Korea staged a mass rally of soldiers and civilians Friday to glorify the country’s young ruler, who took a big gamble this week in sending a satellite into orbit in defiance of international warnings.


Wednesday’s rocket launch came just eight months after a similar attempt ended in an embarrassing public failure, and just under a year after Kim Jong Un inherited power following his father’s death.






The surprising success of the launch may have earned Kim global condemnation, but at home the gamble paid off, at least in the short term. To his people, it made the 20-something Kim appear powerful, capable and determined in the face of foreign adversaries.


Tens of thousands of North Koreans, packed into snowy Kim Il Sung Square, clenched their fists in a unified show of resolve as a military band tooted horns and pounded on drums.


Huge red banners positioned in the square called on North Koreans to defend Kim Jong Un with their lives. They also paid homage to Kim Jong Un’s father, Kim Jong Il, and his grandfather, North Korean founder Kim Il Sung.


Pyongyang says the rocket put a crop and weather monitoring satellite into orbit. Much of the rest of the world sees it as a thinly disguised test of banned long-range missile technology. It could bring a fresh round of U.N. sanctions that would increase his country’s international isolation. At the same time, the success of the launch could strengthen North Korea’s military, the only entity that poses a potential threat to Kim’s rule.


The launch’s success, 14 years after North Korea’s first attempt, shows more than a little of the gambling spirit in the third Kim to rule North Korea since it became a country in 1948.


“North Korean officials will long be touting Kim Jong Un as a gutsy leader” who commanded the rocket launch despite being new to the job and young, said Kim Byung-ro, a North Korea specialist at Seoul National University in South Korea.


The propaganda machinery churned into action early Friday, with state media detailing how Kim Jong Un issued the order to fire off the rocket just days after scientists fretted over technical issues, ignoring the chorus of warnings from Washington to Moscow against a move likely to invite more sanctions.


Top officials followed Kim in shrugging off international condemnation.


Workers’ Party Secretary Kim Ki Nam told the crowd, bundled up against a winter chill in the heart of the capital, that “hostile forces” had dubbed the launch a missile test. He rejected the claim and called on North Koreans to stand their ground against the “cunning” critics.


North Korea called the satellite a gift to Kim Jong Il, who is said to have set the lofty goal of getting a satellite into space and then tapped his son to see it into fruition. The satellite, which North Korean scientists say is designed to send back data about crops and weather, was named Kwangmyongsong, or “Lode Star” — the nickname legendarily given to the elder Kim at birth.


Kim Jong Il died on Dec. 17, 2011, so to North Koreans, the successful launch is a tribute. State TV have been replaying video of the launch to “Song of Gen. Kim Jong Il.”


But it is the son who will bask in the glory, and face the international censure that may follow.


Even while he was being groomed to succeed his father, Kim Jong Un had been portrayed as championing science and technology as a way to lift North Korea out of decades of economic hardship.


“It makes me happy that our satellite is flying in space,” Pyongyang citizen Jong Sun Hui said as Friday’s ceremony came to a close and tens of thousands rushed into the streets, many linking arms as they went.


“The satellite launch demonstrated our strong power and the might of our science and technology once again,” she told The Associated Press. “And it also clearly testifies that a thriving nation is in our near future.”


Aside from winning him support from the people, the success of the launch helps his image as he works to consolidate power over a government crammed with elderly, old-school lieutenants of his father and grandfather, foreign analysts said.


Experts say that what is unclear, however, is whether Kim will continue to smoothly solidify power, steering clear of friction with the powerful military while dealing with the strong possibility of more crushing sanctions. The United Nations says North Korea already has a serious hunger problem.


“Certainly in the short run, this is an enormous boost to his prestige,” according to Marcus Noland, a North Korea analyst at the Peterson Institute for International Economics in Washington.


Noland, however, also mentioned the “Machiavellian argument” that this could cause future problems for Kim by significantly boosting the power of the military — “the only real threat to his rule.”


Successfully firing a rocket was so politically crucial for Kim at the onset of his rule that he allowed an April launch to go through even though it resulted in the collapse of a nascent food-aid-for-nuclear-freeze deal with the United States, said North Korea analyst Kim Yeon-su of Korea National Defense University in Seoul.


The launch success consolidates his image as heir to his father’s legacy. But it could end up deepening North Korea’s political and economic isolation, he said.


On Friday, the section at the rally reserved for foreign diplomats was noticeably sparse. U.N. officials and some European envoys stayed away from the celebration, as they did in April after the last launch.


Despite the success, experts say North Korea is years from even having a shot at developing reliable missiles that could bombard the American mainland and other distant targets.


North Korea will need larger and more dependable missiles, and more advanced nuclear weapons, to threaten U.S. shores, though it already poses a shorter-range missile threat to its neighbors.


The next big question is how the outside world will punish Pyongyang — and try to steer North Korea from what could come next: a nuclear test. In 2009, the North conducted an atomic explosion just weeks after a rocket launch.


Scott Snyder, a Korea specialist for the Council on Foreign Relations, wrote recently that North Korea‘s nuclear ambitions should inspire the U.S., China, South Korea and Japan to put aside their issues and focus on dealing with Pyongyang.


If there is a common threat that should galvanize regional cooperation, “it most certainly should be the prospect of a 30-year-old leader of a terrorized population with his finger on a nuclear trigger,” Snyder said.


____


Jon Chol Jin in Pyongyang, and Foster Klug and Sam Kim in Seoul, South Korea, contributed to this report. Follow Jean H. Lee on Twitter: (at)newsjean.


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Xbox 720 and PlayStation 4 might not launch until 2014






Nintendo (NTDOY) says its kickstarted the next generation of video game consoles with the Wii U. But considering its graphics and processing power are comparable to Microsoft’s (MSFT) Xbox 360 and Sony’s (SNE) PlayStation 3, hardcore gamers are holding out for the next Xbox, tentatively dubbed “Xbox 720,” and next-generation PlayStation, tentatively called PS4. Rumors insist Microsoft and Sony will both launch their next consoles in the fall of 2013, but SemiAccurate, the website that first reported the next Xbox could see a delay, says there is a bit of confusion over how the consoles are progressing and when they’ll arrive.


According to SemiAccurate, the next Xbox is currently code-named “Kryptos” and not “Durango” anymore, and the next PlayStation is now code-named “Thebes” rather than “Orbis.” The PS4 will reportedly have a 28-nanometer AMD chipset and will be produced by IBM or Global Foundries.






SemiAccurate says the PS4 could be released in spring of 2014 or fall 2014 and the Xbox 720 could still see the delay from fall 2013 to 2014.


Xbox World claimed last month that the next Xbox will have a Blu-ray disc drive, Kinect 2.0, directional audio, TV output and input, an “innovative controller” and support for augmented reality glasses – all packaged in a magnesium alloy shell that will supposedly use the same patented “VaporMg” process found on the Surface tablet.


Not only that, but Microsoft is also working on an “Xbox Lite,” according to reports from earlier this year.


As for PS4 details, VG247 reported in November that Sony has already sent out various developer kits with specs including 16GB of RAM and 256GB of storage.


Sony and Microsoft are expected to reveal their next consoles at E3 2013 this coming June.


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“X Factor” judge L.A. Reid quitting TV talent show






LOS ANGELES (Reuters) – L.A. Reid, “The X Factor” judge, says he is leaving the TV talent show next season after two years on the panel.


Reid, 56, chairman and chief executive of Epic Records, told “Access Hollywood,” the television program and website, he has decided to leave the Fox reality singing show to return to the record label full time.






“I have decided that I will not return to ‘The X Factor’ next year,” Reid told “Access Hollywood” late Thursday. “I have to go back and I have a company to run that I’ve kind of neglected, and it saddens me a little bit, but only a little bit.”


He added that the show was “a nice break, it was a nice departure from what I’ve done for the past 20 years, but now I gotta go back to work.”


Fox declined to comment on Reid’s departure on Friday.


Reid joined “The X Factor” when Cowell introduced the show in the United States in September 2011. Reid sat alongside Paula Abdul, former Pussycat Dolls singer Nicole Scherzinger and Cowell.


Cowell fired Abdul and Scherzinger after a disappointing first season and brought in pop stars Britney Spears and Demi Lovato.


But “The X Factor” audiences have dropped this year to an average 9.7 million from about 12.5 million an episode in 2011.


The show broadcasts a two-part finale next week with the winner earning a $ 5 million prize and record contract.


Epic Records, a unit of Sony Music Entertainment, which commands a roster of artists including Avril Lavigne, will sign the winners of “The X Factor.”


(Reporting by Piya Sinha-Roy; editing by Jill Serjeant and Jeffrey Benkoe)


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