Considering how the riots didn't happen till months after the Danish papers published the cartoons, I don't trust their promptness. Maybe this is retaliation for a good review of The Satanic Verses or something.
Who cares if this story is true or not, this is more fun than another port thread.
THERE IS SMOKE on this cam...
It changes its view a lot, but in one shot looking down, there is clearly smoke:
http://www.earthcam.com/usa/newyork/timessquare/index.php?cam=5&display=