US stocks dive after Fed minutes

NEW YORK: US stocks piled up losses Wednesday after Federal Reserve minutes showed divisions over asset purchases, with some officials suggesting to wind them down before the jobs market picks up.

The Dow Jones Industrial Average finished down 108.13 points (0.77 percent) at 13,927.54.

The S&P 500-stock index fell 18.99 points (1.24 percent) to 1,511.95 and the tech-rich Nasdaq Composite dropped 49.18 points (1.53 percent) to 3,164.41, dragged down by heavyweight Apple, off 2.4 percent.

After opening mostly lower amid mixed housing and wholesale inflation data, the indexes hit fresh session lows after the Fed released the minutes of the January 29-30 Federal Open Market Committee meeting.

A "number" of participants said that an ongoing evaluation of the $85 billion per month asset purchases "might well lead the committee to taper or end its purchases before it judged that a substantial improvement in the outlook for the labor market had occurred," the minutes said.

Paul Edelstein of IHS Global Insight said in a research note that "if markets do not expect the Fed to stay the course, then expectations for economic growth and inflation will stay depressed and demand for safe assets (cash and government securities) will remain high."

Office Depot and OfficeMax meanwhile confirmed their merger after a premature announcement of the news.

The all-stock merger would create an $18 billion office supplies retailer. Office Depot shares slumped 16.7 percent and OfficeMax shed 7.0 percent.

Hotel chain Marriott fell 2.7 percent after posting quarterly results that missed expectations.

Luxury home builder Toll Brothers also suffered from disappointing earnings, losing 9.1 percent.

Dell, which reported a 32 percent profit fall in 2012 that was nevertheless slightly better than expected, rose 0.2 percent.

Yahoo! fell 1.7 percent after unveiling a new homepage.

Sony slid 1.2 percent ahead of its PlayStation 4 news conference

The bond market was mixed. The yield on the 10-year Treasury bond fell to 2.02 percent from 2.03 percent late Tuesday, while the 30-year edged up to 3.21 percent from 3.20 percent. Bond prices and yields move inversely.

-AFP/ac

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Trade unions' strike: Stick backfires, Mamata Banerjee offers carrot to traders

KOLKATA: Chastened by the widespread outrage among traders—who kept their shutters down despite her brandishing a stick, making Day One of the strike called by central trade unions a partial success—chief minister Mamata Banerjee decided to hand out carrots to the few who answered her call and kept their shops open on Wednesday.

Sources said Mamata asked mayor Sovon Chatterjee to work out an incentive to reward shop-owners who stayed open so that it encourages others to follow suit the next time. The decision was taken on the spur of the moment during an inspection of the city the CM undertook with the mayor in the early afternoon.

Mamata was initially taken aback at the sight of downed shutters in the wholesale belt of Burrabazar and Posta, but was relieved to see the vegetable market in Sealdah open.

Sources said the incentive idea struck her when she realized that cancelling the trade licences of those who stayed shut is not an option: the state will have to punish about 85% shopkeepers in the city then.

"I thank everyone who has opened their shop," Mamata said. "More shops are expected to open in the next half of the day. As for those that stayed shut, the high court has issued an order and the law will take its course."

Chatterjee said: "We are making a list of shops that were open. We will reward them." But officials in the Kolkata Municipal Corporation's licence department said there is no such rule and implementing the reward scheme will be difficult.

Mamata's decision to discuss the matter only with Forum of Traders' Organization (West Bengal) general secretary Rabindranath Koley boomeranged as other federations were aggrieved and did all they could to foil the government's efforts to keep shops open.

"Traders have shown politicians that they will not be scared into submission," said Tarak Trivedi of the Federation of Trade Organization that claims 50 lakh businessmen as members. "Treat us with respect and we will extend a helping hand."

On Tuesday, it was Koley who had announced the decision to take "uncooperative" traders to task. On Wednesday, he did the task of mollifying.

He said the CM is trying out various measures to lure traders away from the culture of staying at home during strikes. "In Kankurgachi, VIP, New Market, Gariahat, Lake Market and elsewhere, 50% shops were open," Koley said. "That is a long way from the scenes in the past when everything would be shut. The trading community is timid and needs to be encouraged to defy political strikes."

Timidity was, however, not the trait traders displayed when they defied the CM's threat of licence cancellation. "Had she called all the trade organizations and appealed to us to stay open, an overwhelming majority of shop-owners would have complied," said Atmaram Kajaria, president of the Federation of West Bengal Trade Association that claims to represent two crore traders in the state. "But by issuing a threat that is impractical and impossible to carry out, the CM suffered a loss of face that she could have easily avoided."

Though all trade unions, barring Citu, have decided to continue with the strike on Thursday, trade bodies said the scene will be different in Kolkata and most shops will open for business.

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Suitcase-size Satellite to Patrol for Dangerous Asteroids

Earth received a wakeup call last week with a double shot of incoming space rocks—the near miss of asteroid DA14 and the Russian meteor explosion. Our planet is in a cosmic shooting gallery and more work needs to be done to survey menacing asteroids, astronomers say.

Now the Canadian Space Agency is stepping up to the plate to help do just that with the launch of a new sentinel to detect and track near-Earth objects (NEOs). The pint-size space telescope is hitching a ride into orbit aboard an Indian rocket on February 25.

Even though the Near-Earth Object Space Surveillance Satellite (NEOSSat) might find it challenging to hunt down relatively smaller size meteors, like the one that crashed in Russia last week, it will be the first telescope in orbit dedicated to keeping tabs on what's buzzing around Earth. ("Pictures: Meteorite Hits Russia.")

In addition to keeping an eye out for space rocks, NEOSSat will pull double duty by monitoring traffic among the increasing crowd of orbiting satellites—guarding against collisions between wayward space junk. (Learn about how satellite collisions create dangerous debris.)

In recent years there have been a few head-on collisions between orbiting satellites and several near misses with the International Space Station, making this a concern for satellite providers and space agencies.

Suitcase-size Sentinel

Weighing in at a mere 143 pounds (65 kilograms), this $12 million suitcase-size satellite will spend half its time pinpointing asteroids. Researchers say it could find at least a hundred new ones during its first year of operation—some of which currently have undetected orbits between the Earth and the sun.

"This spacecraft is designed to be able to search the sky near the sun, which is difficult for Earth-based telescopes to do, and so it therefore complements ground-based search programs," said Alan Hildebrand, planetary scientist at the University of Calgary in Alberta, Canada, and lead scientist for the NEOSSat mission.

Outfitted with a special sunshade, the telescope will be pointed precisely within a 45 degree angle of the sun in order to continuously snap hundred-second-long exposures that the team hopes will eventually reveal at least 50 percent of the asteroids half a mile (one kilometer) across or larger within Earth's orbit around the sun.

Asteroids from far out in the solar system sometimes swing past Earth, but the most dangerous ones are those that continually cross Earth's orbit—like the inner-Earth objects (IEOs), or Atira class asteroids, which shuttle between our planet and the sun.

NEOSSat's six-inch-wide (15-centimeter-wide) telescope is no larger than those used by many backyard astronomers. But when observing space from Earth, there is simply too much scattered sunshine and atmosphere, making it difficult to spot IEOs, added Hildebrand.

Flying in a polar orbit some 435 miles (700 kilometers) above the blurring effects of the atmosphere, the tiny spacecraft will be on duty around the clock, "so it should be able to spot asteroids that are even fainter than what some of the current ground-based surveys are capable of," he said.

Celestial Hide-and-Seek

Robert Jedicke, an astronomer at the University of Hawaii, who is not involved with the mission, calls Atira asteroids the champions in the hide-and-seek-game of NEO surveying. (Learn how the University of Hawaii is monitoring asteroids.)

Some NEOs hide in plain sight, said Jedicke. They move like asteroids much farther away from Earth, fooling observers into thinking the NEO is more distant than it actually is. And we can't spot some IEOs simply because they're hidden in the sun's glare, he added.

"Finding them will allow us to fine-tune the calculations of the risk of Earth impact and to test our theories that govern the evolution of asteroid orbits out of the main belt into the region near Earth."

While the technology for finding potentially dangerous asteroids has matured over the past couple of decades, most of the asteroids—larger than the Russian meteor—that can cause serious damage haven't been discovered yet, warned Jedicke.

"Just like the Chelyabinsk meteor, right now, the most likely warning time we have of an asteroid impact is zero," he said.

"While NEOSSat will make an important contribution to the goal of reducing the NEO impact risk, there will still be much left to be done."

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Armstrong Snubs Offer From Anti-Doping Officials

Lance Armstrong has turned down what may be his last chance at reducing his lifetime sporting ban.

Armstrong has already admitted in an interview with Oprah Winfrey to a career fueled by doping and deceit. But to get a break from the U.S. Anti-Doping Agency, all he had to do was tell his story to those who police sports doping. The deadline was today, and Armstrong now says he won't do it.

"For several reasons, Lance will not participate in USADA's efforts to selectively conduct American prosecutions that only demonize selected individuals while failing to address the 95 percent of the sport over which USADA has no jurisdiction," said Tim Herman, Armstrong's longtime lawyer. "Lance is willing to cooperate fully and has been very clear: He will be the first man through the door, and once inside will answer every question, at an international tribunal formed to comprehensively address pro cycling."

But the "international tribunal" Armstrong is anxious to cooperate with has one major problem: It doesn't exist.

The UCI, cycling's governing body, has talked about forming a "truth and reconciliation" commission, but the World Anti-Doping Agency has resisted, citing serious concerns about the UCI and its leadership.

READ MORE: Armstrong Admits to Doping

Livestrong, Elizabeth Kreutz/AP Photo

READ MORE: Lance Armstrong May Have Lied to Winfrey: Investigators

WATCH: Armstrong's Many Denials Caught on Tape

U.S. Anti-Doping Agency officials seemed stunned by Armstrong's decision simply to walk away.

"Over the last few weeks, he [Armstrong] has led us to believe that he wanted to come in and assist USADA, but was worried of potential criminal and civil liability if he did so," said Travis Tygart, CEO of the U.S. Anti-Doping Agency. "Today, we learned from the media that Mr. Armstrong is choosing not to come in and be truthful and that he will not take the opportunity to work toward righting his wrongs in sport."

Armstrong's ongoing saga plays out amid a backdrop of serious legal problems.

Sources believe one reason Armstrong wants to testify to an international tribunal, rather than USADA, is because perjury charges don't apply if Armstrong lies to a foreign agency, they told ABC News.

While Armstrong has admitted doping, he has not given up any details, including the people and methods required to pull off one of the greatest scandals in all of sport.

Armstrong is facing several multimillion-dollar lawsuits right now, but his biggest problems may be on the horizon. As ABC News first reported, a high-level source said a criminal investigation is ongoing. And the Department of Justice also reportedly is considering joining a whistleblower lawsuit claiming the U.S. Postal Service was defrauded out of millions of dollars paid to sponsor Armstrong's cycling team.

READ MORE: 10 Scandalous Public Confessions

PHOTOS: Olympic Doping Scandals: Past and Present

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Supreme Court to consider limits on individual political contributions

The Supreme Court reentered the controversial field of campaign finance Tuesday, agreeing to consider a Republican challenge to decades-old limits on the total amount a person can contribute to candidates, political parties and political action committees.

It is the court’s first major campaign finance case since its 2010 decision in Citizens United v. Federal Election Commission, which allowed unlimited corporate and union spending in elections. By extension, the decision led to the creation of super PACs, whose multimillion-dollar donations transformed funding of the 2012 presidential contest.

The new case, which will be heard in the court’s term that begins in October, concerns the federal limit on the amount an individual can contribute to certain campaigns during each election cycle.

For 2013-14, that would be $123,200 — a maximum of $48,600 to federal candidates and $74,600 to political parties and some political action committees.

Shaun McCutcheon, an Alabama conservative activist and businessman, brought the lawsuit along with the Republican National Committee because he is seeking to contribute more than those amounts. He is not challenging the limit on the amount he can give to individual candidates, $2,600.

A three-judge lower-court panel rejected McCutcheon’s contention that the aggregate limits were unconstitutionally low and overbroad. “It is not the judicial role to parse legislative judgment about what limits to impose,” the panel wrote.

Those who favor limits on campaign contributions were alarmed by the Supreme Court’s decision to review the ruling.

“It has become readily apparent that there are a number of justices who are willing to usurp Congress’s role as legislator when it comes to matter of campaign finance,” said Tara Malloy, senior counsel for the Campaign Legal Center.

“An aggregate contribution limit was passed in the wake of the Watergate money scandals and was upheld in the 1976 Supreme Court decision Buckley v. Valeo.” Without the limits, she said in a statement, “corruption, or at the very least the appearance of corruption, would be the rule rather than the exception in Washington.”

Fred Wertheimer, a longtime campaign finance advocate and president of Democracy 21, warned of multimillion-dollar contributions to political parties if the court were to toss out the limits.

But Brad Smith, chairman of the Center for Competitive Politics and an opponent of limits, said the Citizens United ruling may lead to the court’s reexamination of the Buckley v. Valeo decision, which justified contribution limits on anticorruption grounds.

“The case gives the court an opportunity to clarify an important legal question: If contribution limits to individual committees and candidates prevent corruption, what additional interest justifies aggregate contributions?” Smith said in a statement.

The Citizens United decision was a big boost to interest groups, weakening the ability of campaigns and parties to compete with them. There are no limits on the amount that individuals can contribute to super PACs. The challenge would restore some of the balance by removing restrictions on the political parties.

It is part of a systematic challenge to campaign finance restrictions undertaken by Republicans and conservative interest groups. They have had considerable success with Chief Justice John G. Roberts Jr.’s court, which has been suspicious of spending limits it has found hinder political speech.

But even though Republicans have brought the challenge, the Democratic Party and its political action committees also would benefit from unfettered contributions.

The case is
McCutcheon v. Federal Election Commission
.

T.W. Farnam contributed to this report.

Discuss this topic and other political issues in The Post’s Politics Discussion Forums.

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BP vows to "vigorously defend" itself at US oil spill trial

CHICAGO: British energy giant BP vowed Tuesday to "vigorously defend" itself in court next week against US government claims for "excessive" fines in the 2010 Gulf of Mexico oil spill disaster.

Prosecutors shot back with a warning that they will be fighting for the stiffest penalties possible at a blockbuster trial which opens Monday with tens of billions of dollars at stake.

"The United States is fully prepared for trial," Wyn Hornbuckle, a spokesman for the US Department of Justice, told AFP.

"We intend to prove that BP was grossly negligent and engaged in willful misconduct in causing the oil spill."

The mammoth trial in a New Orleans, Louisiana federal courthouse consolidates scores of remaining lawsuits stemming from the worst environmental disaster to strike the United States.

The first phase of the trial will focus on liability for the April 20, 2010 explosion that sank the BP-leased Deepwater Horizon drilling rig off the coast of Louisiana.

The blast killed 11 people and unleashed millions of barrels of oil into the Gulf, blackening beaches in five states and crippling tourism and fishing industries.

It took 87 days to cap BP's runaway well in a tragedy that riveted the nation.

BP is fighting civil penalties which could amount to as much as $21 billion if gross negligence is found.

"Gross negligence is a very high bar that BP believes cannot be met in this case," Rupert Bondy, group general counsel at BP, said in a statement.

"This was a tragic accident, resulting from multiple causes and involving multiple parties."

In addition to fighting the federal government over environmental fines, BP is also seeking to shift some of the liability to its subcontractors, drilling rig operator Transocean and Halliburton, which was responsible for the well's faulty cement job.

BP pleaded guilty in November to criminal charges -- including felony manslaughter -- and agreed to pay a record $4.5 billion in criminal fines.

It reached a $7.8 billion settlement early last year that will cover the bulk of the outstanding private claims for economic loss, property damage and medical problems.

It has paid out $10 billion to businesses, individuals and local governments impacted by the spill and spent more than $14 billion on the response and cleanup.

BP also remains on the hook for billions in additional damages, including the cost of environmental rehabilitation.

But while it was willing to settle the civil charges on "reasonable terms" BP said it will not accept the US government's assertion of gross negligence, or its estimation of how much oil was spilled.

"Faced with demands that are excessive and not based on reality or the merits of the case, we are going to trial," Bondy said in the statement.

"We have confidence in our case and in the legal team representing the company and defending our interests."

In a preview of an argument that will not reach trial until the second phase begins later this year, BP said the official US government estimate that 4.9 million barrels of oil was unleashed from the runaway well was "overstated" by at least 20 percent.

"BP believes that a figure of 3.1 million barrels should be the uppermost limit of the number of barrels spilled that should be used in calculating a Clean Water Act penalty," it said.

Meanwhile, the judge overseeing the consolidated trial on Tuesday approved a $1 billion settlement for civil penalties against rig operator Transocean.

The decision came after a $400 million settlement of criminal penalties against the Swiss drilling giant was approved last week.

Transocean pleaded guilty to one criminal count of violating the Clean Water Act and agreed to pay the $400 million fine for negligence that led to the explosion of the Deepwater Horizon rig.

The $1 billion civil penalty is for fines related to the oil spilled into the Gulf.

It is also responsible for implementing measures to improve operational safety and emergency response capabilities at all their drilling rigs working in waters of the United States.

-AFP/ac

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Sukhoi crashes in Rajasthan, pilots eject safely

NEW DELHI: A frontline Sukhoi-30MKI fighter crashed at the Pokhran range in Rajasthan on Tuesday evening. The two experienced pilots, Squadron Leaders G B S Chauhan and A R Tanta, managed to eject safely.

While the court of inquiry will establish the exact reason behind the crash, preliminary reports blamed a "technical snag" for the mishap. The aircraft was undertaking night-flying drills as part of rehearsals for the massive IAF fire power display at the Pokhran range slated for February 22 when the technical problem took place around 7.20 pm.

The over 160 Sukhois inducted by IAF till now — 272 of them have been contracted from Russia in deals worth Rs 55,717 crore - were "temporarily grounded" at Pune, Bareilly, Tezpur, Chabua and other airbases after one had crashed in December 2011. The probe then had blamed the failure of the fly-by-wire (FBW) system for the crash.

IAF chief Air Chief Marshal N A K Browne had himself taken to the skies in a Sukhoi within a week to show "all was well" with India's latest and most potent fighters, which are progressively being based on both the western and eastern fronts against Pakistan and China.

The Sukhois, with just four crashes in around 90,000 hours of flying over the last 13 years, have had a good track-record with IAF. But with the bulk of the 272 Sukhois ordered being manufactured by HAL under transfer of technology from Russia, a hard-nosed look at quality, maintenance and servicing issues at the defence PSU is certainly needed.

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New Study Analyzes Heavy Metal Dancing

Parents may never understand their rock 'n' roll loving children, but scientists might. A study published online in arXiv this week seeks to explain the "mosh pit"—using physics.

To most scientists, heavy metal refers to elements on the lower end of the periodic table. But to Jesse Silverberg and Matt Bierbaum, doctoral students at Cornell University's department of Condensed Matter Physics, the aggressive music—and the violent dancing that accompanies it—could be a key to understanding extreme situations such as riots and panicked responses to disasters.

For the past two years, Silverberg and Bierbaum have studied "moshing," at heavy metal concerts, using theories of collective motion and the physical properties of gasses to better understand the chaos of metal fans' dancing.

Moshing, for those who have never attended a heavy metal show, is a form of dancing in which participants bump, jostle, and slam into one another. It's a form of social ritual that anthropologists have likened to spirit possession in its uncontrolled, dynamic, and often violent nature.

Silverberg and Bierbaum say it can also be understood by applying models of gaseous particles. As these particles float in groups, they too run, bash, and slam into each other, sending the elements flying in chaotic patterns.

"We are interested in how humans behave in similar excited states," said Silverberg, "but it's not exactly ethical to start a riot for research."

Extreme Physics

Mosh pits provided the scientists with a way to observe excited collective movement without causing undue injury or death. Analyzing hours of recorded footage from concerts and making multiple field trips to music clubs, Silverberg and Bierbaum recognized the particulate physical patterns in the mosh pit.

Further, they differentiated two distinct forms of heavy metal dancing: the "mosh pit" itself, which follows the gaseous pattern, and the "circle pit" (where dancers run, smash, and dance in a circular rotation) within it, which adheres to a vortex pattern of particulate behavior.

Based on these observations, they created an interactive computer model depicting the behavior.

Animal Instincts

"Herd animals behave in very similar spirit—what physicists call 'flocking' behavior," said Bierbaum. (See "The Genius of Swarms," from the July 2007 issue of National Geographic magazine.)

As with groups of flying birds or schooling fish, simple rules can be applied to individuals in large groups—like moshers—to understand what seems to be very complex behavior. This makes modeling possible, allowing computers to re-create immense numbers of actions in a matter of seconds. These models can then be used to design spaces that would minimize trampling or injury, or to tailor responses to disasters like fires.

"The lessons we've learned in mosh pits [could be used] to build better stadiums, or movie theaters," Silverberg said.

James Sethna, one of the researchers' advising professors, hastened to add that his students' forays into heavy metal science "didn't start out for reasons of creating safer stadiums. We did it because it was cool and we wanted to know if we could explain human behavior—albeit slightly intoxicated behavior—without having to use complex [models]."

A longtime heavy metal fan himself, Silverberg shared which band produced the best results: "Killswitch Engage ... always gets the crowd nuts. Although of course everyone has their own favorites."

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Report Fingers Chinese Military Unit in US Hacks

A Virginia-based cyber security firm has released a new report alleging a specific Chinese military unit is likely behind one of the largest cyber espionage and attack campaigns aimed at American infrastructure and corporations.

In the report, released today by Mandiant, China's Unit 61398 is blamed for stealing "hundreds of terabytes of data from at least 141 organizations" since 2006, including 115 targets in the U.S. Twenty different industrial sectors were targeted in the attacks, Mandiant said, from energy and aerospace to transportation and financial institutions.

Mandiant believes it has tracked Unit 61398 to a 12-story office building in Shanghai that could employ hundreds of workers.

"Once [Unit 61398] has established access [to a target network], they periodically revisit the victim's network over several months or years and steal broad categories of intellectual property, including technology blueprints, proprietary manufacturing processes, test results, business plans, pricing documents, partnership agreements, and emails and contact lists from victim organizations' leadership," the report says.

The New York Times, which first reported on the Mandiant paper Monday, said digital forensic evidence presented by Mandiant pointing to the 12-story Shangai building as the likely source of the attacks has been confirmed by American intelligence officials. Mandiant was the firm that The Times said helped them investigate and eventually repel cyber attacks on their own systems in China last month.

Peter Parks/AFP/Getty Images

The Chinese government has repeatedly denied involvement in cyber intrusions and Chinese Foreign Ministry spokesperson Hong Lei said today that the claims in the Mandiant report were unsupported, according to a report by The Associated Press.

"To make groundless accusations based on some rough material is neither responsible nor professional," he reportedly said.

Mandiant's report was released a week after President Obama said in his State of the Union address that America must "face the rapidly growing threat from cyber attack."

"We know hackers steal people's identities and infiltrate private e-mail. We know foreign countries and companies swipe our corporate secrets. Now our enemies are also seeking the ability to sabotage our power grid, our financial institutions, and our air traffic control systems. We cannot look back years from now and wonder why we did nothing in the face of real threats to our security and our economy," he said.

Though Obama did not reference China or any country specifically, U.S. officials have previously accused the Asian nation of undertaking a widespread cyber espionage campaign.

Referring to alleged Chinese hacking in October 2011, House Intelligence Committee Chairman Rep. Mike Rogers (R-Mich.) said in an open committee meeting that he did not believe "that there is a precedent in history for such a massive and sustained intelligence effort by a government agency to blatantly steal commercial data and intellectual property."

Rogers said that cyber intrusions into American and other Western corporations by hackers working on behalf of Beijing -- allegedly including attacks on corporate giants like Google and Lockheed Martin -- amounted to "brazen and widespread theft."

"The Chinese have proven very, very good at hacking their way into very large American companies that spend a lot of money trying to protect themselves," cyber security expert and ABC News consultant Richard Clarke said in an interview last week.

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Football: Nani propels United into FA Cup quarter-finals

MANCHESTER, United Kingdom: Nani scored one and made the other as Manchester United beat Reading 2-1 to book their place in the FA Cup quarter-finals here on Monday.

The Portuguese winger was only brought on as a substitute because of a first-half injury to Phil Jones but he certainly made his mark with a powerful second-half strike before setting up Javier Hernandez with a pinpoint cross.

United will now face the winner of Chelsea and Middlesbrough in the quarter-finals as Alex Ferguson's side continue to challenge for trophies on three fronts despite a late scare when Jobi McAnuff pulled one back for Reading.

"I'm satisfied with the quality of our play," said Ferguson, who made eight changes to the side that drew 1-1 with Real Madrid in last week's Champions League clash.

"We should have punished them better though.

"At 2-0 you are never comfortable. Nani deserved to be man of the match, his contribution was terrific. I had a feeling he would win the match for us. We are at home in the next round and we would take that against anyone."

His Reading counterpart Brian McDermott took solace from the overall performance.

"We came to Manchester United and put on a good performance as well, and we're disappointed not to be coming away with a result," said McDermott, whose side face a crucial Premier League relegation clash with fellow strugglers Wigan next Saturday.

United had come flying out of the blocks and Danny Welbeck gave Reading keeper Adam Federici his first work of the night a minute later with a low strike that was pushed away.

The Reading keeper pulled off a good save in the 22nd minute to deny Tom Cleverley's low shot before getting back on his feet to turn away Ashley Young's timid strike from close range.

Jones, after his impressive man-marking job against Cristiano Ronaldo last week, could be a doubt for the return leg in March after injuring his ankle in a clash with McAnuff and Nani replaced him.

Adam Le Fondre gave United keeper David De Gea his first work of the night with a quick turn and shot that the United keeper saved.

Nani then got straight into the action with a rasping shot that beat Federici before cracking off the post and flying away from danger.

The winger then forced the Royals stopper into a decent save in first-half stoppage time with a long-range effort.

United started the second half like the first with Cleverley trying to drill a low effort through a crowd of players before Reading cleared.

A deflected header from Vidic off Sean Morrison had to be cleared off the line by Reading striker Noel Hunt who was playing with staples in a head wound after a clash with the Serbian defender in the first half.

Reading were being pinned back as van Persie replaced Young before Nani whizzed one by the post in the 65th minute.

The Portuguese winger was certainly out to prove a point after not making the starting line-up and when Antonio Valencia laid the ball to him in the area in the 69th minute, he took a touch before rifling the ball home for just his third of the season.

Le Fondre fired at De Gea within moments but the tie was all but put beyond the visitors in the 72nd minute when Nani crossed for Hernandez who headed in at the front post.

With nine minutes remaining, Chris Smalling failed to clear a cross and McAnuff pounced to pull one back for Reading but they could not get a second to force the replay as Le Fondre headed a corner just over in stoppage time.

-AFP/ac

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