Investors face another Washington deadline

NEW YORK (Reuters) - Investors face another Washington-imposed deadline on government spending cuts next week, but it's not generating the same level of fear as two months ago when the "fiscal cliff" loomed large.

Investors in sectors most likely to be affected by the cuts, like defense, seem untroubled that the budget talks could send stocks tumbling.

Talks on the U.S. budget crisis began again this week leading up to the March 1 deadline for the so-called sequestration when $85 billion in automatic federal spending cuts are scheduled to take effect.

"It's at this point a political hot button in Washington but a very low level investor concern," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. The fight pits President Barack Obama and fellow Democrats against congressional Republicans.

Stocks rallied in early January after a compromise temporarily avoided the fiscal cliff, and the Standard & Poor's 500 index <.spx> has risen 6.3 percent since the start of the year.

But the benchmark index lost steam this week, posting its first week of losses since the start of the year. Minutes on Wednesday from the last Federal Reserve meeting, which suggested the central bank may slow or stop its stimulus policy sooner than expected, provided the catalyst.

National elections in Italy on Sunday and Monday could also add to investor concern. Most investors expect a government headed by Pier Luigi Bersani to win and continue with reforms to tackle Italy's debt problems. However, a resurgence by former leader Silvio Berlusconi has raised doubts.

"Europe has been in the last six months less of a topic for the stock market, but the problems haven't gone away. This may bring back investor attention to that," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

OPTIONS BULLS TARGET GAINS

The spending cuts, if they go ahead, could hit the defense industry particularly hard.

Yet in the options market, bulls were targeting gains in Lockheed Martin Corp , the Pentagon's biggest supplier.

Calls on the stock far outpaced puts, suggesting that many investors anticipate the stock to move higher. Overall options volume on the stock was 2.8 times the daily average with 17,000 calls and 3,360 puts traded, according to options analytics firm Trade Alert.

"The upside call buying in Lockheed solidifies the idea that option investors are not pricing in a lot of downside risk in most defense stocks from the likely impact of sequestration," said Jared Woodard, a founder of research and advisory firm condoroptions.com in Forest, Virginia.

The stock ended up 0.6 percent at $88.12 on Friday.

If lawmakers fail to reach an agreement on reducing the U.S. budget deficit in the next few days, a sequester would include significant cuts in defense spending. Companies such as General Dynamics Corp and Smith & Wesson Holding Corp could be affected.

General Dynamics Corp shares rose 1.2 percent to $67.32 and Smith & Wesson added 4.6 percent to $9.18 on Friday.

EYES ON GDP DATA, APPLE

The latest data on fourth-quarter U.S. gross domestic product is expected on Thursday, and some analysts predict an upward revision following trade data that showed America's deficit shrank in December to its narrowest in nearly three years.

U.S. GDP unexpectedly contracted in the fourth quarter, according to an earlier government estimate, but analysts said there was no reason for panic, given that consumer spending and business investment picked up.

Investors will be looking for any hints of changes in the Fed's policy of monetary easing when Fed Chairman Ben Bernake speaks before congressional committees on Tuesday and Wednesday.

Shares of Apple will be watched closely next week when the company's annual stockholders' meeting is held.

On Friday, a U.S. judge handed outspoken hedge fund manager David Einhorn a victory in his battle with the iPhone maker, blocking the company from moving forward with a shareholder vote on a controversial proposal to limit the company's ability to issue preferred stock.

(Additional reporting by Doris Frankel; Editing by Kenneth Barry)

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BBC Leaders Have Harsh Words for Own Corporation

LONDON (AP) — The BBC is a bloated, top-heavy, and poorly-led corporation staffed by dull executives — and that's just what the company's leadership says.

In 3,000 pages of emails and interviews published Friday, the BBC's top officials have harsh words for the institutional culture of their respected media group, whose reputation has been tarnished by a pedophilia scandal.

Leading BBC presenter Jeremy Paxman says it has recruited many people "who are clearly not the most creative." BBC Trust Chairman Chris Patten says the organization once had "more senior leaders than China."

The comments are contained in the BBC's probe of its handling of sex crime allegations against the late entertainer Jimmy Savile. It concluded that chaos and miscommunication were to blame for a bungled response to the sex abuse revelations.

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Music Mogul Clive Davis: My Lucky Life

By Kevin O'Donnell

02/22/2013 at 10:00 AM EST

On a late January afternoon, Clive Davis is sitting in his wood-paneled office in Sony Music's Manhattan headquarters. Soon he'll be off to catch the opening night of his pal Barry Manilow's new Broadway show.

But right now he's gazing at his wall, which holds photos of him with just about every superstar musician through the years: Whitney Houston, Alicia Keys, Aretha Franklin.

Growing up in Brooklyn in the '30s and '40s, the legendary music mogul, now 80, was never obsessed with music – "My charts were baseball charts!" – and today sometimes even he can't believe his enormous success. "Luck played a part," he says.

Luck and a phenomenal gift for recognizing, nurturing and selling talent. In his new memoir, The Soundtrack of My Life, the five-time Grammy-winning Hall of Famer reflects on his nearly five decades as a record producer and executive, discovering and guiding performers like Houston and Alicia Keys, overseeing the careers of, at one time, Barbra Streisand and Bob Dylan and helping Santana make a huge comeback in 1999.

"The breadth of styles he can bring to the top – no one can touch that," says Bill Werde, Billboard's editorial director. "Clive deeply feels the music."

His memoir also pulls back the curtain on his personal life. Though married twice and father to four grown children, he reveals that he is bisexual and that his current relationship is with a man.

Though he says he never hid his sexual orientation from those closest to him, he's telling the rest of the world in his book because "this is the story of my life," he says. "I knew I was going to include that important part of it."

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Govs to hear Oregon health care plan

SALEM, Ore. (AP) — Oregon Gov. John Kitzhaber will brief other state leaders this weekend on his plan to lower Medicaid costs, touting an overhaul that President Barack Obama highlighted in his State of the Union address for its potential to lower the deficit even as health care expenses climb.

The Oregon Democrat leaves for Washington, D.C., on Friday to pitch his plan that changes the way doctors and hospitals are paid and improves health care coordination for low income residents so that treatable medical problems don't grow in severity or expense.

Kitzhaber says his goal is to win over a handful of other governors from each party.

"I think the politics have been dialed down a couple of notches, and now people are willing to sit down and talk about how we can solve the problem" of rising health care costs, Kitzhaber told The Associated Press in a recent interview.

Kitzhaber introduced the plan in 2011 in the face of a severe state budget deficit, and he's been talking for two years about expanding the initiative beyond his state. Now, it seems he's found people ready to listen.

Hospital executives from Alabama visited Oregon last month to learn about the effort. And the U.S. Department of Health and Human Services announced Thursday that it's giving Oregon a $45 million grant to help spread the changes beyond the Medicaid population and share information with other states, making it one of only six states to earn a State Innovation Model grant.

Kitzhaber will address his counterparts at a meeting of the National Governors Association. His talk isn't scheduled on the official agenda, but a spokeswoman confirmed that Kitzhaber is expected to present.

"The governors love what they call stealing from one another — taking the good ideas and the successes of their colleagues and trying to figure out how to apply that in their home state," said Matt Salo, director of the National Association of Medicaid Directors.

There's been "huge interest" among other states in Oregon's health overhaul, Salo said, not because the concepts are brand new, but because the state managed to avoid pitfalls that often block health system changes.

Kitzhaber persuaded state lawmakers to redesign the system of delivering and paying for health care under Medicaid, creating incentives for providers to coordinate patient care and prevent avoidable emergency room visits. He has long complained that the current financial incentives encourage volume over quality, driving costs up without making people healthier.

Obama, in his State of the Union address this month, suggested that changes such as Oregon's could be part of a long-term strategy to lower the federal debt by reigning in the growing cost of federally funded health care.

"We'll bring down costs by changing the way our government pays for Medicare, because our medical bills shouldn't be based on the number of tests ordered or days spent in the hospital — they should be based on the quality of care that our seniors receive," Obama said.

The Obama administration has invested in the program, putting up $1.9 billion to keep Oregon's Medicaid program afloat over the next five years while providers make the transition to new business models and incorporate new staff and technology.

In exchange, though, the state has agreed to lower per-capita health care cost inflation by 2 percentage points without affecting quality.

The Medicaid system is unique in each state, and Kitzhaber isn't suggesting that other states should adopt Oregon's specific approach, said Mike Bonetto, Kitzhaber's health care policy adviser. Rather, he wants governors to buy into the broad concept that the delivery system and payment models need to change.

That's not a new theory. But Oregon has shown that under the right circumstances massive changes to deeply entrenched business models can gain wide support.

What Oregon can't yet show is proof the idea is working — that it's lowering costs without squeezing on the quality or availability of care. The state is just finishing compiling baseline data that will be used as a basis of comparison.

One factor driving the Obama administration's interest in Oregon's success is the president's health care overhaul. Under the Affordable Care Act, millions more Americans will join the Medicaid rolls after Jan. 1, and the health care system will have to be able to absorb the influx of patients in a logistically and financially sustainable way.

The federal government will pay 100 percent of the costs for those additional patients in the first three years before scaling back to 90 percent in 2020 and beyond.

"There are a lot of governors who are facing the same challenges we're facing in Oregon," Kitzhaber said. "They recognize that the cost of health care is something they're going to have to get their arms around."

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Wall Street rebounds as technology stocks gain

NEW YORK (Reuters) - Stocks advanced on Friday, rebounding after two days of losses, led by gains in technology stocks after better-than-expected earnings from Hewlett-Packard.

The benchmark S&P 500 <.spx> has shed 1.9 percent over the past two sessions, its worst two-day drop since early November, putting the index on pace for its first weekly decline of the year. The retreat was triggered by minutes from the Federal Reserve's January meeting released earlier in the week which suggested stimulus measures may end earlier than thought.

Still, the index is up nearly 6 percent for the year and managed to hold the 1,500 support level, despite the recent declines.

"When you get a move like that, you are bound to see a pause and the Fed minutes is a good enough reason to at least reassess," said Michael Marrale, head of research sales and trading at ITG in New York.

"But if, in fact, things do heat up a bit (in the economy), ultimately we are going to see rates go higher and ultimately, that will take money out of bonds and into equities, which is a major backstop for equities."

Hewlett-Packard Co jumped 8 percent to $18.48 as the top boost on both the Dow and S&P 500 after the No. 1 PC maker's quarterly revenue and forecasts beat analysts' expectations as it continued to cut costs under CEO Meg Whitman's turnaround plan.

The Dow Jones industrial average <.dji> rose 62.07 points, or 0.45 percent, at 13,942.69. The Standard & Poor's 500 Index <.spx> gained 7.85 points, or 0.52 percent, at 1,510.27. The Nasdaq Composite Index <.ixic> added 18.59 points, or 0.59 percent, at 3,150.08.

Also buoying tech stocks were gains in semiconductor companies Marvell Technology Group Ltd , up 1.6 percent at $9.63, and Texas Instruments Inc , up 3.6 percent at $33.65. The PHLX semiconductor index <.sox> gained 1.3 percent.

Marvell forecast results this quarter that were largely above analysts' expectations as it gained market share in the hard-disk drive and flash-storage businesses.

Fellow chipmaker Texas Instruments raised its quarterly dividend by a third and said it would buy back an additional $5 billion in stock.

Abercrombie & Fitch dropped 5 percent to $46.57 after the clothing retailer reported a drop in fourth-quarter comparable sales, even as its latest quarterly earnings topped estimates.

Insurer American International Group Inc posted fourth-quarter results that beat analysts' expectations. Shares advanced 4 percent to $38.78.

According to Thomson Reuters data through Thursday morning, of 427 companies in the S&P 500 that have reported results, 69.3 percent have exceeded analysts' expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters.

Fourth-quarter earnings for S&P 500 companies are estimated to have risen 5.9 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

(Editing by Bernadette Baum)

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Police Replace Pistorius Detective in Embarrassing Setback

PRETORIA, South Africa — The South Africa police replaced the lead investigator in the Oscar Pistorius homicide case on Thursday after embarrassing revelations that he was under investigation himself for seven criminal charges of attempted murder.

The decision by the national police commissioner to remove the investigator, Hilton Botha, was the latest in a series of abrupt twists and setbacks in the prosecution of Mr. Pistorius, the double amputee track star accused of killing his girlfriend. It caused a further delay in the defendant’s hearing on his request to go free on bail in the case that has riveted South Africa and much of the world.

The commissioner, Riah Phiyega, said Mr. Botha would be relieved by Lt. Gen Vinesh Moonoo, whom Ms. Phiyega described as the country’s “top detective,” The Associated Press reported.

The attempted-murder accusations hanging over Mr. Botha only compounded questions about his work on the Pistorius case. Under cross-examination on Wednesday, Mr. Botha was forced to acknowledge sloppy police work and to concede that he could not rule out Mr. Pistorius’s version of events in the shooting death of his girlfriend based on the existing evidence.

“The poor quality of evidence presented by chief investigating officer Botha exposed the disastrous shortcomings in the state’s case,” Mr. Pistorius’s defense lawyer, Barry Roux, said on Thursday.

The courtroom itself became part of the drama on Thursday when the magistrate hearing the case ordered an abrupt and brief suspension because of an unexplained “threat to the court.” The case was later adjourned until Friday.

While the prosecution has accused Mr. Pistorius, 26, of premeditated murder in the killing, Mr. Pistorius has said he opened fire through a locked bathroom door thinking there was an intruder in his home in a gated community and had no intention of killing his girlfriend, Reeva Steenkamp, 29, a model and law-school graduate.

When the bail hearing resumed on Thursday — Mr. Pistorius’s fourth court appearance since the shooting on Feb. 14 — the chief prosecutor, Gerrie Nel, began by acknowledging the attempted murder charges against Mr. Botha, but said prosecutors did not realize that the case had been reinstated when Mr. Botha testified against Mr. Pistorius on Wednesday.

Mr. Nel went on to assail Mr. Pistorius’s defense of his actions in the early hours of Thursday one week ago, when, the athlete has said, he did not realize Ms. Steenkamp was no longer in bed as he rose to investigate the supposed intruder, shouting to her to call the police.

“You want to protect her, but you don’t even look at her. You don’t even ask: Reeva, are you all right?” Mr. Nel said. “His version is so improbable.”

Earlier, the hearing dwelt for some time on the absence of urine from Ms. Steenkamp’s bladder when she died, consistent, the defense said, with the suggestion that she simply went to the toilet rather than fled from Mr. Pistorius after an argument as the prosecution asserts.

Mr. Roux, the defense lawyer, said she may have locked the toilet door after hearing Mr. Pistorius call out that an intruder was in the house.

The case has continued to take a toll on Mr. Pistorius’s global reputation as an emblem of athletic prowess and of triumph over adversity. On Thursday, Nike became the latest corporate sponsor to suspend ties with him. “We believe Oscar Pistorius should be afforded due process, and we will continue to monitor the situation closely,” the company said in a statement on its Web site.

Here in Pretoria, in a development that seemed as bewildering as it was sensational on Thursday, a police brigadier, Neville Malila, said earlier that Detective Botha was set to appear in court in May facing attempted murder charges relating to an episode in October 2011, when Mr. Botha and two other police officers were accused of firing at a minivan carrying seven people.

“Botha and two other policemen allegedly tried to stop a minibus taxi with seven people. They fired shots,” Brigadier Malila said.

South African news reports said the 2011 shooting happened when the officers were pursuing a man accused of killing and dismembering a woman.

Medupe Simasiku, a spokesman for the National Prosecuting Authority, said “the decision to reinstate was taken on Feb. 4, way before the issue of Pistorius” or the shooting death of Ms. Steenkamp “came to light.”

“It’s completely unrelated to this trial,” the spokesman said.

Mr. Botha was quoted in South African news reports as denying claims that he was drunk during the episode in question. He said he and other officers had aimed at the wheels of the minivan without causing injuries and he was convinced that the case had been withdrawn.

The Pistorius case has riveted South Africa and fascinated a wider audience, reflecting Mr. Pistorius’s status as one of the world’s most renowned athletes, whose distinctive carbon-fiber running blades inspired the nickname Blade Runner.

He was born without fibula bones in both legs and underwent amputation before he was one year old. Yet he went on to become a global Paralympic champion and the first Paralympic sprinter to compete against able-bodied runners in the 2012 London Olympics.

The questions surrounding Detective Botha surfaced on Wednesday after he explained how preliminary ballistic evidence supported the prosecution’s assertion that Mr. Pistorius had been wearing prosthetic legs when he shot at a locked bathroom door early on Feb. 14. Ms. Steenkamp wasbehind it at the time.

Mr. Pistorius said in an affidavit read to the court on Tuesday that he had hobbled over from bed on his stumps and had felt extremely vulnerable to a possible intruder as a result.

Lydia Polgreen reported from Pretoria, South Africa, and Alan Cowell from London.

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Prince Harry Rekindles Romance with Cressida Bonas: Report

By Tim Nudd

02/21/2013 at 10:50 AM EST

Prince Harry and Cressida Bonas

Bauer-Griffin; Splash News Online

Has he found his princess this time?

Prince Harry has reportedly rekindled his romance with Cressida Bonas, a British model and society girl with whom he was briefly linked to last summer, according to the Daily Mail, which published a photo of them embracing during a recent ski vacation.

According to various British papers, the couple have been enjoying a PDA-filled trip in the Swiss Alps this week – joining Harry's uncle, Prince Andrew, for his 53rd birthday celebrations.

Andrew's daughter, Princess Eugenie, who is also along for the trip – along with her sister Beatrice and her mother Sarah, Duchess of York – was the one who introduced Bonas to Harry in the first place.

Blonde like Chelsy Davy, Harry's most notable ex, Bonas, 24, is the daughter of Lady Mary-Gaye Georgiana Lorna Curzon, the half-sister of actress Isabella Anstruther-Gough-Calthorpe, who is engaged to Richard Branson's son Sam.

Harry and Bonas also flew together to the Caribbean island of Necker last summer for Sam Branson's birthday.

Their relationship cooled after Harry's notorious naked antics in Las Vegas last August, according to the British press.

Harry, 28, returned last month from Afghanistan, where he had been serving as a captain and Apache helicopter co-pilot gunner.

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Adults get 11 percent of calories from fast food

ATLANTA (AP) — On an average day, U.S. adults get roughly 11 percent of their calories from fast food, a government study shows.

That's down slightly from the 13 percent reported the last time the government tried to pin down how much of the American diet is coming from fast food. Eating fast food too frequently has been seen as a driver of America's obesity problem.

For the research, about 11,000 adults were asked extensive questions about what they ate and drank over the previous 24 hours to come up with the results.

Among the findings:

— Young adults eat more fast food than their elders; 15 percent of calories for ages 20 to 39 and dropping to 6 percent for those 60 and older.

— Blacks get more of their calories from fast-food, 15 percent compared to 11 percent for whites and Hispanics.

— Young black adults got a whopping 21 percent from the likes of Wendy's, Taco Bell and KFC.

The figures are averages. Included in the calculations are some people who almost never eat fast food, as well as others who eat a lot of it.

The survey covers the years 2007 through 2010 and was released Thursday by the Centers for Disease Control and Prevention. The authors couldn't explain why the proportion of calories from fast food dropped from the 13 percent found in a survey for 2003 through 2006.

One nutrition professor cast doubts on the latest results, saying 11 percent seemed implausibly low. New York University's Marion Nestle said it wouldn't be surprising if some people under-reported their hamburgers, fries and milkshakes since eating too much fast food is increasingly seen as something of a no-no.

"If I were a fast-food company, I'd say 'See, we have nothing to do with obesity! Americans are getting 90 percent of their calories somewhere else!'" she said.

The study didn't include the total number of fast-food calories, just the percentage. Previous government research suggests that the average U.S. adult each day consumes about 270 calories of fast food — the equivalent of a small McDonald's hamburger and a few fries.

The new CDC study found that obese people get about 13 percent of daily calories from fast food, compared with less than 10 percent for skinny and normal-weight people.

There was no difference seen by household income, except for young adults. The poorest — those with an annual household income of less than $30,000 — got 17 percent of their calories from fast food, while the figure was under 14 percent for the most affluent 20- and 30-somethings with a household income of more than $50,000.

That's not surprising since there are disproportionately higher numbers of fast-food restaurants in low-income neighborhoods, Nestle said.

Fast food is accessible and "it's cheap," she said.

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Wall Street falls after raft of weak data

NEW YORK (Reuters) - U.S. stocks declined on Thursday as a ream of weak economic data did little to assuage some investors' concerns that the Federal Reserve may rein in its economic stimulus measures and amid uncertainty over ongoing budget talks in Washington.

The number of Americans filing new claims for unemployment benefits rose last week and consumer prices were flat in January, buttressing the argument for the Fed to continue its accommodative monetary policy.

On Wednesday, minutes from the U.S. Federal Reserve's most recent meeting suggested the central bank may slow or stop buying bonds sooner than expected. The news sent shares lower and the benchmark S&P 500 index dropped 1.2 percent, its biggest decline since November 14.

The Fed has used quantitative easing, or QE, since 2008 in a bid to stimulate the economy. The policy, which involves expanding the Fed's balance sheet to buy bonds, has been credited with pushing money into the stock market, and its withdrawal would remove a ballast for the markets.

The benchmark S&P index has dropped 1.9 percent over the past two sessions but is still up more than 5 percent for the year. That's led many analysts to believe that the Fed minutes, the upcoming sequestration in Washington and sluggish consumer spending may be triggers for an overdue pullback in equities.

The sequestration - automatic across-the-board spending cuts put in place as part of a larger congressional budget fight - are due to kick in March 1 unless lawmakers agree on an alternative.

"It's the sequester, it's the knee-jerk reaction to yesterday's Fed minutes and it's the realization the consumer is slowing," said Phil Orlando, chief equity market strategist, at Federated Investors, in New York.

"I'd love to see a healthy 5 percent correction; let's wash out some of the weak hands and set up for a better move during the year."

Financial data firm Markit said its "flash," or preliminary U.S. Manufacturing Purchasing Managers Index slowed to 55.2 this month from 55.8, which had been the best showing since April, 2012.

Wal-Mart Stores Inc , seen as a gauge of consumer spending, said U.S. sales weakness persisted into early February, as Americans absorbed the impact of higher payroll taxes and gasoline prices, along with slow tax refunds that put some spending on hold. But shares rose 2.2 percent to $70.73 to help curb declines on the Dow as earnings topped expectations.

The Dow Jones industrial average <.dji> dropped 64.01 points, or 0.46 percent, to 13,863.53. The Standard & Poor's 500 Index <.spx> lost 10.33 points, or 0.68 percent, to 1,501.62. The Nasdaq Composite Index <.ixic> fell 25.93 points, or 0.82 percent, to 3,138.48.

In a positive sign, data showed home resales edged higher in January and left inventory of homes at its lowest level in 13 years as the housing market continues to steadily improve.

But the Federal Reserve Bank of Philadelphia said its index of business conditions in the U.S. Mid-Atlantic region fell in February to minus 12.5, the lowest level in eight months, from minus 5.8 in January.

VeriFone Systems Inc tumbled 37.7 percent to $19.86 after the credit card swipe-machine maker forecast first and second-quarter profit that were well below analysts' expectations.

According to Thomson Reuters data through Thursday morning, of the 427 companies in the S&P 500 that have reported results, 69.3 percent have exceeded analysts' expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters.

Fourth-quarter earnings for S&P 500 companies are estimated to have risen 5.9 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

Berry Petroleum Co jumped 16.5 percent to $444.95 after oil and gas producer Linn Energy LLC said it would buy the company in an all-stock deal valued at $4.3 billion including debt. Linn Energy shares advanced 3 percent to $37.76.

(Editing by Bernadette Baum)

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IHT Rendezvous: True or False? The Tussle Over Ping Fu's Memoir

Did Ping Fu, a prominent Chinese-American businesswoman and author of a recent memoir, “Bend, not Break,” make up her horrible experiences during the 1966-76 Cultural Revolution in order to gain United States citizenship? Did they help her become an American by claiming political asylum?

That’s what her critics, many of them fellow Chinese-Americans, say. It’s an accusation that can stick. As a recent New York Times investigation showed, claiming persecution has spawned an immigration industry involving lawyers prepping clients to make false asylum claims.

As I write in my Letter from China this week, Ms. Fu is being accused of making up a lot of things in her memoir. She’s also a successful entrepreneur: the U.S. government honored Ms. Fu, the founder of the software company Geomagic (in the process of being sold to 3D Systems), with a “2012 Outstanding American by Choice” award.

Ms. Fu is on the board of the White House’s National Advisory Council on Innovation and Entrepreneurship, and is a member of the National Council on Women in Technology, according to the Web site of the U.S. Citizenship and Immigration Services.

Ms. Fu, who says in her memoir she was “quietly deported” to the U.S. in 1984 for writing about female infanticide while still a college student, denies the accusations. But until now she hadn’t explained in public how she became an American.

In an interview with the International Herald Tribune, she said, apparently for the first time, the reason she kept quiet was she was trying to protect her first husband, an American, whom she does not mention in her memoir. The marriage took place while she was living in California, she said.

“I had a first marriage and that’s how I got my green card,” she said by telephone. She married on Sept. 1, 1986 and divorced three years later. Until now she had kept silent because of a “smear” campaign against her online, mostly by fellow Chinese who accuse her of lying, which extended to real-life harassment, she said: “They smear my name, they try to get my daughter’s name on the Internet, they sent people to Shanghai to surround my family and to Nanjing to harass my neighbors.” She said the accusers, who are “angry” for reasons she doesn’t really understand, contacted U.S. immigration authorities to challenge her award and her citizenship, as well as shareholders of 3D Systems to warn them she was a “liar,” and not to buy Geomagic. Her second husband, Herbert Edelsbrunner, whom she has since divorced, received many “hate e-mails,” she said. “I just don’t want to hurt innocent people.”

If a first, unpublicized marriage might lay to rest one contentious issue, there are others. Some were the result of exaggeration or unclear communication with her ghostwriter, MeiMei Fox of Los Angeles, she said.

In the interview, she volunteered an example of an error: a widely criticized account of the ‘‘period police,’’ the authorities who checked a woman’s menstrual cycle to ensure she wasn’t pregnant in the early days of the one-child policy. To stop women substituting others’ sanitary pads for inspection, they were sometimes required to use their own finger to show blood. Through a misunderstanding with Ms. Fox, Ms. Fu said this was portrayed as the use of other people’s fingers — an invasion of the woman’s body.

Ms. Fox “wrote it wrong,’’ she said. ‘‘I corrected it three times but it didn’t get corrected.’’ Women used their own finger to show blood, she said, but the mistake went into print anyway.

In general, Ms. Fox may have ‘‘just made some searches on the Internet that maybe weren’t correct,’’ Ms. Fu said.

Chiefly the errors involved use of the words ‘‘all, never, any,’’ that generalized unacceptably, Ms. Fu said. And, ‘‘She doesn’t know China’s geography,’’ she said.

At the beginning of her memoir, Ms. Fu writes of being kidnapped by a Vietnamese-American on arrival in the U.S. state of New Mexico and locked in his apartment to care for his very young children, whose mother had left, in a bizarre incident. A spokeswoman at the Albuquerque Police Department’s Records Office, where the alleged kidnapping took place, said she could not locate such an incident in their records. Asked about it, Ms. Fu repeated that she did not press charges as, fresh from China, she was terrified of all police, “So I don’t know how they keep records, if there is no criminal charges or record.”

And in an e-mail to me, she admitted she made mistakes about a magazine she said she helped edit, called Wugou, or “No Hook,” produced in 1979 by students at her college, then called the Jiangsu Teacher’s College (later it changed its name to Suzhou University, she said.) It was not that magazine but another one, This Generation, that was taken to a meeting in Beijing of student magazine writers from around the country, she wrote in the e-mail. “A good case that shows everyone’s memory can be wrong,” she wrote.

But bigger questions about the scale of the online vitriol from parts of the Chinese and Chinese-American community remain. “I really haven’t known China for 20-something years, and it didn’t occur to me that what I wrote would generate so much anger,” she said. In the last years, “as China got stronger, nationalistic views got stronger,” she said, making a “civil conversation” about disagreements apparently harder.

Additional reporting by Cindy Hao in Seattle.

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