Shares dip as investors brace for euro zone data

LONDON (Reuters) - European shares weakened on Thursday as investors braced for the year's first reading on euro zone business activity for 2013 after data showed that France, the region's second-biggest economy, may be in recession.


Markets are hoping for a modest improvement in the estimates for manufacturing and service sector activity across the euro area for January, due later, to support the recent rallies in equities and peripheral European debt markets.


"January's flash PMI data (for France) signals a very disappointing start to 2013," said Jack Kennedy, senior economist at Markit, which compiles the purchasing managers' index (PMI) data.


Europe's FTSEurofirst 300 index <.fteu3> of top company shares fell 0.3 percent to 1,164.30 points after the French data was released, still not far from a peak of 1,170.29 points hit two weeks ago, a level not seen since early 2011.


London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> were down by up to 0.5 percent.


"All the major benchmarks are looking overbought, and any short-term correction will be seen as a buying opportunity, but the longer-term trend is still to the upside," said Jawaid Afsar, a sales trader at Securequity.


The euro fell 0.2 percent on the day to hit $1.3286 after Markit said its preliminary composite purchasing managers' index (PMI) for France, covering activity in the services and manufacturing sectors combined, came out at 42.7 for the month, down from 44.6 in December.


The common currency recovered slightly when German PMI data for January showed private-sector activity jumped to its highest level in a year.


APPLE BITES


The main European tech stock index <.sx8p> was down 0.85 percent after the world's largest technology company, Apple , released disappointing earnings figures after the U.S. markets had closed.


The results had earlier fanned earnings worries across the technology sector in Asia, overshadowing positive data on Chinese manufacturing activity.


China's HSBC flash purchasing managers' index (PMI) rose to 51.9 in January to a two-year high, signaling a rebound in manufacturing activity and confirming a recovery in growth in the world's second-largest economy was on track.


(Additional reporting by David Brett; Editing by Will Waterman)



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Azarenka beats Stephens; sets up final vs Li


MELBOURNE, Australia (AP) — Victoria Azarenka had to endure some anxious moments before and after her win over American teenager Sloane Stephens.


Li Na wasn't flustered at all while beating No. 2-ranked Maria Sharapova.


The result is that Li will play for the Australian Open title against Azarenka, who ended Stephens' unexpected run to the semifinals that included a quarterfinal upset of 15-time Grand Slam champion Serena Williams.


While Li's 6-2, 6-2 win over Sharapova, who set a tournament record in dropping only nine games in five matches en route to the semis, never appeared in doubt on Thursday, Azarenka added some intrigue in the second semifinal on Rod Laver Arena.


Azarenka finished off a 6-1, 6-4 over Stephens after a medical timeout for rib and knee injuries. The No. 1-ranked player had wasted five match points in the game immediately before leaving the court for medical attention, then returned to break Stephens' serve to end the match.


"Well, I almost did the choke of the year," Azarenka told an on-court interviewer immediately after the match. "At 5-3, having so many chances I couldn't close it out."


Australian Open officials said the tournament doctor reported that Azarenka had left knee and rib injuries.


"I just felt a little bit overwhelmed. I realized I'm one step away from the final and nerves got into me for sure," Azarenka said.


The 23-year-old Belarusian's on-court comments after the match led to speculation about the timing of her medical timeout. She didn't help herself in a second television interview after the match that suggested she was suffering from a severe case of the nerves.


"I couldn't breathe. I had chest pains," she said. "It was like I was getting a heart attack. After that it wasn't my best, but it's important to overcome this little bit of a struggle and win the match."


Defending champion Novak Djokovic and David Ferrer were only one step away from the men's final. They were playing a semifinal later Thursday, with the victor advancing to a final against the winner of Friday's semifinal between Roger Federer and Andy Murray.


In her official post-match news conference — more than an hour after she finished playing — Azarenka felt a need to explain her comments immediately after the match.


"I think I just really misunderstood what (the on-court interviewer) asked me because the question was I had few difficulties and why I went off," Azarenka said. "I completely thought of a different thing, why I couldn't close out of match, you know, that I had few difficulties.


"So I understand the whole situation right now, but it just really (is a) simple misunderstanding of a question. I guess it was my bad."


Pressed again to explain her earlier TV comments, Azarenka said: "I did say that. I did say I couldn't breathe. It was locked. That came from my back. "


Stephens didn't think the timing of the medical break affected the outcome of the match.


"It's happened before. Last match, match before, I've had people going for medical breaks, going to the bathroom," she said. "Didn't affect me. Just another something else that happens."


The temperature hit 97 degrees during the second women's semifinal, slightly hotter than it had been when Li beat Sharapova to reach the Australian Open final for the second time in three years.


The semifinal started badly for the 25-year-old Russian, serving double-faults to lose the first two points and conceding a break in the first game.


Li was the first Chinese player to reach a Grand Slam final when she lost to Kim Clijsters at Melbourne Park in 2011. She had her breakthrough a few months later when she won the French Open, beating Sharapova in the semifinals along the way.


The crowd got behind Li early in the match, yelling "Come on, Li Na!" and others yelling "Jia You!" which is "Come on" in Chinese. After she broke Sharapova to take a 5-2 lead, the Chinese fans in the crowd shook Chinese flags and shouted again, "Jia You!"


"I don't know what happened, (but) I always play well here, so thanks guys," said Li, who was playing her third Australian Open semifinal in four years. "I just came to the court feeling like, 'OK, just do it.'"


The heat and the speed of the court surface suited Li's game.


She broke Sharapova in the third game of the second set and served an ace to move within a point of a 4-2 lead, but lost the next three points to give her opponent a break opportunity.


Two big second serves took Sharapova by surprise, and Li fended off the challenge.


Li's coach, Carlos Rodriguez, who worked with retired seven-time major winner Justine Henin, pumped his fist over his heart after Li won the game.


Sharapova had control in her next service game, but Li scrambled from side to side and pushed the reigning French Open champion to go for the lines, getting a series of unforced errors and another break.


The sixth-seeded Li has been working since August with Rodriguez, and credits him with reviving her career with a renewed emphasis on condition.


"I'm happy. I know I have a tough coach, a tough physio," Li said, looking across to the stands and adding: "You don't need to push me anymore. I will push myself."


Sharapova, who lost the 2012 Australian final in straight sets to Azarenka, admitted it was hard to get into the match against Li.


"She was certainly much more aggressive than I was, dictating the play. I was always on the defense," said Sharapova, who could have gained the No. 1 ranking by reaching the Australian final. "When I had my opportunities and break points in games that went to deuce, I don't think any of them really went my way."


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Deep freeze grips northern U.S. from Minnesota to Maine






MINNEAPOLIS (Reuters) – Frigid arctic air held the U.S. Midwest and Northeast in its icy grip on Wednesday, with the cold so dangerous that municipal emergency warming centers opened up and ski resorts shut down.


The National Weather Service warned the wind chill could make the temperature feel like 40 degrees below zero Fahrenheit(minus 40 degrees Celsius) in parts of Northern Minnesota until noon on Thursday.






Wintry conditions from Minneapolis to Washington marked the coldest conditions in many parts of the United States in four years, but were nowhere near the record lows for January, meteorologists said.


“This cold that we are experiencing right now came straight from the arctic,” said Tom Kines, an AccuWeather.com senior meteorologist.


Washington, D.C., reported its coldest weather in four years, reaching 16 degrees Fahrenheit (minus 9 degrees Celsius)at Reagan National Airport early Wednesday.


The National Weather Service issued a wind chill warning for New Hampshire until Wednesday evening, with values as low as 43 degrees below zero (minus 42 degrees Celsius) because of steady winds up to 20 miles per hour and gusts up to 30 mph.


New Hampshire’s Wildcat Mountain ski area said it would be closed to skiers on Wednesday and Thursday as temperatures, forecast to drop to 10 degrees below zero Fahrenheit (minus 23 degrees Celsius), made for “unsafe conditions” for skiers and workers.


The deep freeze had forced some Minnesota school districts to delay openings or cancel classes and activities on Tuesday, and some ski areas to close early due to the wind chills.


“It won’t take that much wind to get things a little bit colder than they really seem to be,” National Weather Service meteorologist Kevin Kraujalis said.


Temperatures in Minnesota were on par with New York state, New Hampshire, Vermont and Maine.


Connecticut’s governor Dannel Malloy urged towns and cities to open warming centers and at least four municipalities did, including Bristol, Torrington, Meriden and West Haven, said Scott DeVico, spokesman for the Connecticut Department of Emergency Services & Public Protection. At least 22 people seeking shelter called an emergency 211 phone line overnight, he said.


Warming centers were open across New York City.


In Chicago on Wednesday, a five-story warehouse, that caught fire in frigid cold on Tuesday, was covered in ice as water from the fire hoses froze.


(Additional reporting by Scott Malone in Boston and Ian Simpson in Washington; Editing by Barbara Goldberg and Bob Burgdorfer)


Weather News Headlines – Yahoo! News





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Benghazi blame-game is useless



























































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STORY HIGHLIGHTS


  • Anthony Cordesman: Questions for Hillary Clinton on Benghazi attack inevitable, important

  • But political blame game useless, a discouraging message to diplomats, military advisers, he says

  • He says in hindsight, warnings, pleas for support mistakenly make crisis seem obvious

  • Writer: U.S. must focus forward: encourage, support risk-takers doing crucial work in field




Editor's note: Anthony H. Cordesman holds the Arleigh A. Burke Chair in Strategy at the Center for Strategic and International Studies. Follow CSIS on Twitter.


(CNN) -- Politics are politics, and partisan congressional challenges over the death of Ambassador Chris Stevens and other Americans in Benghazi, Libya, last September were inevitable.


But while some of the questions Secretary of State Hillary Clinton was asked in her appearance before the Senate Foreign Relations Committee bordered on politics at their worst, some represented democracy at its best: A legitimate challenge of how the government works. The fact is, we do need to ask serious questions about the way our diplomats function, how they are deployed and protected.


In her responses, Clinton took responsibility, as the top official in every department always must. The question now, however, is what, if anything, will we really learn from the events that led to the deaths of Stevens and his colleagues?



Anthony H. Cordesman

Anthony H. Cordesman



Do we actually learn something from their courage and sacrifice, and the similar experience of other American diplomats and officers that have faced similar attacks in the past? Or do we go on playing a pointless blame game, creating a climate that discourages our diplomats, U.S. military advisory teams and intelligence officers from taking necessary risks -- and relies even more on fortifying our embassies.


Three lessons here. The first: Virtually every post mortem that relies on the blame game has the same result. There is always someone who asked for more resources and warned of the risk before the event. There are always enough intelligence indicators so that once you go back -- knowing the pattern of actual events -- it becomes possible to predict the past with 20-20 hindsight.


The problem is that the post mortems and hearings tend to be useless. Every prudent security officer has always asked for more; the indicators that could provide warning with 20-20 hindsight will still be buried in a flood of other reporting that warns of crises that don't take place; U.S. officials will still have to deal with what intelligence experts call "noise" -- the vast amount of reporting and other data that make it impossible to sort out the right information until the event actually occurs and the patterns are known. All of this makes it hard to know what request or warning ever matters.


Opinion: Algeria hostage crisis shows jihadists on rise


Yes, intelligence and warning can always be improved if the post mortem is realistic and objective. But the resulting improvements will never be enough. No one will ever assess all the risks correctly, U.S. diplomats and other Americans will be vulnerable when they operate in a hostile environment, and risk-taking will remain inevitable.



The second lesson is that we cannot deal with crises like the political upheavals in the Arab world, or the more direct threats that countries like Iran and North Korea can pose, unless our diplomats and military advisers take risks -- and more casualties -- in the process.


Stevens and those around him did what had to be done. These are the teams that can help lead unstable countries towards democracy and stability. They are the crucial to our counterterrorism efforts in the field and to building up the military security capabilities of developing states. They are key to uniting given factions, creating effective governance, and persuading states to move toward development and greater concern for human rights.


They can only be effective if they are on the scene, work with the leaders and factions involved, and often go into harms way where there are terrorist and military threats. Like Stevens, they cannot wait for perfect security, stay in a safe area, or minimize risks and deal with the realities of Libya, filled with local power struggles, extremist elements and potential threats.


We need risk-takers. We need them in any country that is going through the kind of upheavals taking place in Libya, as well as in countries where our enemies operate, and semi-war zones like Afghanistan, Iraq, Somalia, Syria, and Yemen. We need diplomats, U.S. military advisory teams, and intelligence officers that reach far beyond our embassies and go into high risk zones. We need to reward and honor those risk-takers, not those who shelter in safety and avoid the risks they should take or fear their career will be damaged if anyone is killed or hurt.


Opinion: Algeria crisis is a wakeup call for America








The third lesson is that we do need to steadily strengthen our ability to provide secure mobility, better intelligence, better communications, and better protection for those diplomats, U.S. military advisory teams and intelligence officers. We need to be able to better provide emergency help to those American NGO personnel and businessmen who take similar risks.


We need both an administration and a Congress that look beyond the blame game and understand that some things are worth spending money on. We need them to understand that what we once called the Arab Spring is clearly going to be the Arab Decade, and we face different but equally real risks in the field in Asia, Africa, and Latin America.


It is far better -- and cheaper even, in the medium term -- to fund strong U.S. country teams, military advisers, counterterrorism teams and development efforts than to let nations collapse, to let extremists take over, to lose allies, and see American NGOs and businesses unable to operate.


We need to see what new methods and investments can protect our people in the field and reduce the risks they should be taking. The answer may be special communications, intelligence system, helicopters and armored vehicles, emergency response teams and new career security personnel to replace contractors and foreign nationals.


What the answer is not is partisan blame, risk avoidance, punishing those who do take risks for the result, and failing to make the improvements in security for risk takers -- while building larger fortress embassies. If you want to honor the Americans lost in the line of duty, focus on the future and not the past.


The opinions expressed in this commentary are solely those of Anthony Cordesman






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Bulls rally to beat Pistons 85-82









As the United Center rocked and the Bulls celebrated Marco Belinelli's go-ahead, three-point play with 7.5 seconds left, Joakim Noah remained down in the photographer's pit along the baseline, cameras and cheerleaders all around him.


"I didn't really see the play," Noah said. "I had the cheerleaders' pom-poms in my face."


His teammates saw it, which is why they were celebrating the shot that sealed the Bulls' stirring 85-82 comeback over the Pistons, their 17th straight victory in this series. It marked the second time in just more than a month the Bulls erased a 17-point deficit against the Pistons to prevail.








And yet Noah, who had authored, really, the play of the season — one that defines the heart and hustle that has the Derrick Rose-less Bulls on pace for 50 victories now that the midway point has been reached — remained down.


"We were over there celebrating and he was still knocked over by the cheerleaders," said Nate Robinson, who kick-started the rally with nine straight points early in the fourth. "We were like, 'Oh, yeah, we have to go help him up.' But that play shows how hard Jo works. He never gives up."


Noah smiled, clearly relishing the opportunity to tweak his teammates.


"Damn, it took forever, right?" he said of the delay.


All's well that ends well, right?


But make sure to find a replay of Noah's hustle, which came off Belinelli's bricked jumper. As Noah tumbled into cameras and cheerleaders, Belinelli cut to the basket, grabbed the fruit of Noah's effort and laid it in as Rodney Stuckey fouled him.


"I scored, but the credit goes to Jo," said Belinelli, who scored his second game-winner in four games.


Coach Tom Thibodeau just shook his head.


"Quite frankly, I don't know he got to it," Thibodeau said. "It was an incredible play."


The Bulls then watched tying 3-point attempts from Tayshuan Prince and Stuckey rim out as time expired.


"I stayed with the play," Noah said. "The basketball gods were on our side. It's not really a great play because if Detroit gets it, it's a four-on-five fast break the other side. Fortunately, we got it. "


Robinson's boundless energy can delve into extracurricular emotion, but there's no denying he jump-started the comeback. Robinson keyed a 12-2 run to open the fourth with nine straight points and a dish for a fast-break dunk from Butler, who tied his career-highs with 18 points and nine rebounds.


Butler, starting again for the injured Luol Deng, played all but 91 seconds and overcame a 1-for-8 start. He also hit a huge 3-pointer — the Bulls missed their first 10 and made just 3 of 14 — for an 82-80 lead before Jason Maxiell tied the game with 29.4 seconds left off a defensive breakdown.


"Jimmy just kept working the game," Thibodeau said. "He never got down. He kept battling and battling."


Robinson finished with 11 points.


"That's Nate. He made a lot of big-time plays for us," Thibodeau said. "He's not afraid. I respect that about him.


"The group that started the fourth quarter played with energy, got some stops and got us going.


Noah played 45 minutes with 10 points and 18 rebounds.


"We just kept saying, 'We're going to rally together,'" Butler said. "That's what this team is all about."


kcjohnson@tribune.com


Twitter @kcjhoop





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North Korea to target U.S. with nuclear, rocket tests


SEOUL (Reuters) - North Korea said on Thursday it would carry out further rocket launches and a nuclear test that would target the United States, dramatically stepping up its threats against a country it called its "sworn enemy".


The announcement by the country's top military body came a day after the U.N. Security Council agreed to a U.S.-backed resolution to censure and sanction North Korea for a rocket launch in December that breached U.N. rules.


"We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States," North Korea's National Defence Commission said, according to state news agency KCNA.


North Korea is believed by South Korea and other observers to be "technically ready" for a third nuclear test, and the decision to go ahead rests with leader Kim Jong-un who pressed ahead with the December rocket launch in defiance of the U.N. sanctions.


China, the one major diplomatic ally of the isolated and impoverished North, agreed to the U.S.-backed resolution and it also supported resolutions in 2006 and 2009 after Pyongyang's two earlier nuclear tests.


Thursday's statement by North Korea represents a huge challenge to Beijing as it undergoes a leadership transition with Xi Jinping due to take office in March.


China's Foreign Ministry called for calm and restraint and a return to six-party talks, but effectively singled out North Korea, urging the "relevant party" not to take any steps that would raise tensions.


"We hope the relevant party can remain calm and act and speak in a cautious and prudent way and not take any steps which may further worsen the situation," ministry spokesman Hong Lei told reporters at a regular press briefing.


North Korea has rejected proposals to restart the talks aimed at reining in its nuclear capacity. The United States, China, Russia, Japan and the two Koreas are the six parties involved.


"After all these years and numerous rounds of six-party talks we can see that China's influence over North Korea is actually very limited. All China can do is try to persuade them not to carry out their threats," said Cai Jian, an expert on Korea at Fudan University in Shanghai.


Analysts said the North could test as early as February as South Korea prepares to install a new, untested president or that it could choose to stage a nuclear explosion to coincide with former ruler Kim Jong-il's Feb 16 birthday.


"North Korea will have felt betrayed by China for agreeing to the latest U.N. resolution and they might be targeting (China) as well (with this statement)," said Lee Seung-yeol, senior research fellow at Ewha Institute of Unification Studies in Seoul.


U.S. URGES NO TEST


Washington urged North Korea not to proceed with a third test just as the North's statement was published on Thursday.


"Whether North Korea tests or not is up to North Korea," Glyn Davies, the top U.S. envoy for North Korean diplomacy, said in the South Korean capital of Seoul.


"We hope they don't do it. We call on them not to do it," Davies said after a meeting with South Korean officials. "This is not a moment to increase tensions on the Korean peninsula."


The North was banned from developing missile and nuclear technology under sanctions dating from its 2006 and 2009 nuclear tests.


A South Korean military official said the concern now is that Pyongyang could undertake a third nuclear test using highly enriched uranium for the first time, opening a second path to a bomb.


North Korea's 2006 nuclear test using plutonium produced a puny yield equivalent to one kiloton of TNT - compared with 13-18 kilotons for the Hiroshima bomb - and U.S. intelligence estimates put the 2009 test's yield at roughly two kilotons


North Korea is estimated to have enough fissile material for about a dozen plutonium warheads, although estimates vary, and intelligence reports suggest that it has been enriching uranium to supplement that stock and give it a second path to the bomb.


According to estimates from the Institute for Science and International Security from late 2012, North Korea could have enough weapons grade uranium for 21-32 nuclear weapons by 2016 if it used one centrifuge at its Yongbyon nuclear plant to enrich uranium to weapons grade.


North Korea gave no time-frame for the coming test and often employs harsh rhetoric in response to U.N. and U.S. actions that it sees as hostile.


Its long-range rockets are not seen as capable of reaching the United States mainland and it is not believed to have the technology to mount a nuclear warhead on a long-range missile.


The bellicose statement on Thursday appeared to dent any remaining hopes that Kim Jong-un, believed to be 30 years old, would pursue a different path from his father Kim Jong-il, who oversaw the country's military and nuclear programs.


The older Kim died in December 2011.


"The UNSC (Security Council) resolution masterminded by the U.S. has brought its hostile policy towards the Democratic Peoples Republic of Korea (North Korea) to its most dangerous stage," the commission was quoted as saying.


(Additional reporting by Christine Kim in SEOUL, Ben Blanchard and Sui-Lee Wee in Beijing; Writing by David Chance; Editing by Raju Gopalakrishnan)



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Insight: Boeing 787 battery woes put FAA approval under scrutiny


SEATTLE/TOKYO (Reuters) - In 2007, U.S. regulators cleared Boeing's use of a highly flammable battery in the 787 Dreamliner, deciding it was safe to let the lithium-ion battery burn out if it caught fire mid-air as long as the flames were contained, and smoke and fumes vented properly, according to documents reviewed by Reuters.


Fire risk on planes has always been a major concern, especially given the amount of fuel they carry and the heat generated by jet engines. U.S. aviation standards require planes to have numerous on-board fire suppression systems.


But through a review of government documents and interviews with aviation and battery experts, Reuters found that the U.S. Federal Aviation Administration granted the Dreamliner special conditions and said its contain-and-vent system was sufficient to control the build-up of explosive or toxic gases, except in situations considered "extremely remote."


The FAA's 2007 decision is now coming under scrutiny after the lithium-ion batteries in two 787 planes failed within days of each other, sparking a fire in one case in Boston, and generating warnings and an acrid smell that prompted the pilots of the second plane to make an emergency landing in Japan.


A key U.S. Senate committee plans to hold a hearing in the coming weeks to examine aviation safety oversight and the FAA's certification of the 787, an aide to the Senate Commerce, Science and Transportation Committee told Reuters on Tuesday.


The FAA has grounded the Dreamliner in the U.S. pending an investigation, and other aviation regulators around the world immediately followed, stopping use of all 50 planes in service, each of which can carry about 250 passengers.


The National Transportation Safety Board is conducting the U.S. probe, with help from Boeing, the battery maker, GS Yuasa Corp of Japan, and the FAA.


The review has broad implications for other aircraft makers, including EADS unit Airbus, which also had to meet special conditions set by the FAA to use lithium-ion batteries on the A380 - a superjumbo jet that carries about 550 passengers.


A spokesperson for the FAA defended the 2007 approval, saying, "the whole aviation system is designed so that if a worst case happens, there are systems in place to prevent that from interfering with other systems on the plane."


Boeing said the 787's battery system has four layers of protection to prevent the battery from overcharging, making a fire extremely unlikely. The company said it was confident the battery could safely burn out in air because of a robust system for containing a fire and venting smoke and fumes.


The batteries were chosen "after a careful review of available alternatives because they best met the performance and design objectives of the 787," Boeing spokesman Marc Birtel said. "Based on everything we know at this point, we have not changed our evaluation."


The cause of the two 787 battery failures is not yet known and investigators are still determining how the contain-and-vent systems performed. But the incidents have revived a decades-old debate on the safety of lithium-ion batteries and raised questions over whether the FAA should have consented to their use in the 787.


Congressman Rick Larsen, who was named ranking member of the House Aviation Subcommittee on Tuesday, said it was appropriate for the FAA to impose special conditions for the 787, the world's first carbon composite aircraft, but a review of the approval "may be something we could look at in light of the current problems."


The FAA spokesperson said the agency may add new requirements for the batteries upon completion of the NTSB probe, but declined to elaborate.


Depending on the outcome of the review, Boeing could face steep costs, ranging from compensating airlines for lost use of planes to a possible major redesign and re-certification of the battery or electrical system, industry experts say.


WIDELY USED TECHNOLOGY


Lithium-ion batteries are lightweight, recharge quickly and can hold more power than conventional cells. But they have a history of safety concerns, leading some battery experts to question their use in any consumer product.


In the FAA's 2007 review, it said lithium-ion batteries were "significantly more susceptible" to fires than other types and added that those fires are tough to put out.


"Metallic lithium can ignite, resulting in a self-sustaining fire or explosion," the FAA said in granting approval.


FAA rules do not cover lithium batteries, so the agency in 2007 set nine "special conditions" Boeing had to meet to ensure their safety. A year earlier, the FAA had set similar conditions for Airbus. Special conditions are commonly used to cover new technology for which rules have not yet been written.


In both cases, the Air Line Pilots Association International, the world's largest pilot union, said airplane fire is so dangerous that the FAA should require cabin crew to have fire extinguishers and training to put out a lithium-ion battery fire. "A fire from these devices, in any situation, is unacceptable," the union said, during the 787 approval process.


The FAA said it chose not to require special fire extinguishers and training because of the four redundant systems already in the Boeing system to prevent the battery from catching fire.


The ALPA said on Tuesday it is monitoring the investigation into the 787 battery incidents, but declined to comment while the probe is going on.


"It goes back to why this was approved in the first place," said Hidetake Sakuma, an aviation safety consultant and a former safety manager at Japan Airlines Co Ltd.


"Of course there were people asking whether this was really safe, but they (the FAA) approved it and the Japanese airlines never questioned it."


Japanese airlines operate nearly half of the 787s in service.


ODD SMELL


Passengers on the Japan flight reported an odor like burning plastic soon after takeoff. All Nippon Airways Co Ltd Vice President Osamu Shinobe said in addition to a battery alert in the cockpit, "there was an odd smell detected in the cockpit and cabin."


The NTSB declined to comment, citing the ongoing probe. The Japan Transportation Safety Board, which is leading that investigation, and the NTSB so far describe it as a "battery incident," not a fire.


A photograph of the battery retrieved from the flight showed a blackened, melted interior with fused wires, a deformed lid and scorched casing.


A GS Yuasa spokesman said the company is cooperating with the investigation, but declined to comment on the details.


Boeing has not commented specifically on the battery failure in this incident. In the case of the Boston plane, Boeing said smoke got into the cabin because the 787 was on the ground without cabin pressure to redirect airflow.


Some experts cautioned against a rush to judgment about lithium-ion battery technology, saying the key was to understand failure rates and design a safe system.


"Everyone knew these dangers, but after it was designed, there were multiple tests and that's why it's in the final plane," said Yoshitomo Aoki, a Japanese aviation commentator. "It wouldn't have been approved if it wasn't safe."


Airbus plans to use lithium-ion batteries in its forthcoming A350 jet, its answer to the 787. That plane will use a different architecture that puts less stress on batteries, while expelling unwanted gases safely, Airbus says.


On Sunday, the NTSB widened its probe to include the Tucson, Arizona-based company that makes the charger for the batteries, Securaplane Technologies, a unit of Britain's Meggitt Plc. Securaplane said it is cooperating with the investigation.


"In no way would a fire like this lead me to say you should never have a lithium-ion battery on an airplane. That's just the wrong way to go," said Daniel Doughty, who helped write testing standards for electrical cars and worked on battery technology during 27 years at Sandia National Laboratory, a federally funded research center owned by Lockheed Martin Corp.


But Doughty and others said the FAA's earlier decisions deserved scrutiny.


"It's fair to ask about the approval process," Doughty said. "There needs to be some explanation and defense of whatever they did."


(Reporting by Alwyn Scott in SEATTLE and Mari Saito in TOKYO; Additional reporting by Tim Kelly, Maki Shiraki and Kentaro Sugiyama in TOKYO, Antoni Slodkowski in TAKAMATSU, Yoshiyuki Osada in OSAKA, Andrea Shalal-Esa in WASHINGTON, Bill Rigby in SEATTLE, Tim Hepher in PARIS, Peter Henderson in SAN FRANCISCO and Bernie Woodall and Deepa Seetharaman in DETROIT; Editing by Edward Tobin, Tiffany Wu and Andre Grenon)



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Williams loses Stephens; Azarenka into semis


MELBOURNE, Australia (AP) — Serena Williams was only thinking out loud when she muttered that this Australian Open had been "the worst two weeks."


Not long after a courtside microphone picked up those comments during her quarterfinal with 19-year-old American Sloane Stephens, things got a whole lot worse.


Stephens outplayed Williams, whose movement and serves had been slowed by a back injury, and beat the 15-time Grand Slam champion 3-6, 7-5, 6-4. It was Williams' first loss since Aug. 17, and her first defeat at a Grand Slam tournament since last year's French Open.


Williams' downer of a Grand Slam Down Under started badly when she turned her right ankle in her opening match at Melbourne Park.


"I've had a tough two weeks between the ankle ... and my back, which started hurting," Williams said. "A lot of stuff."


While Williams packed for home — she and sister Venus have also lost in doubles — Stephens advanced to a semifinal Thursday against defending champion Victoria Azarenka.


The top-seeded Azarenka beat Svetlana Kuznetsova 7-5, 6-1 in the early quarterfinal at Rod Laver Arena. Maria Sharapova, who has lost only nine games in five matches, plays Li Na in the other semifinal Thursday.


On the men's side, Andy Murray advanced to the semis with a 6-4, 6-1, 6-2 victory over Jeremy Chardy. Murray, the U.S. Open champion, will play the winner of Wednesday's late quarterfinal between No. 2 Roger Federer and No. 7 Jo-Wilfried Tsonga.


The other semifinal has defending champion Novak Djokovic taking on No. David Ferrer on Thursday.


Williams hurt her back in the eighth game of the second set and things got progressively worse. She yelled at herself on several occasions, and smashed a racket into the court, earning a $1,500 fine from tournament officials.


"I was running to the net for a drop shot," Williams said, describing the lead up to her injury. "As I went to hit it, it was on the backhand. I even screamed on the court. I totally locked up after that."


She reiterated after the match that her injuries had made this Australian Open difficult for her.


"Absolutely, I'm almost relieved that it's over because there's only so much I felt I could do," she said. "I've been thrown a lot of (curve) balls these two weeks."


Stephens has been, too, but has coped well, and the magnitude of her accomplishment only hit her while she was warming down after the match.


"I was stretching, and I was like, 'I'm in the semis of a Grand Slam.' I was like, 'Whoa. It wasn't as hard as I thought,'" she said. "To be in the semis of a Grand Slam is definitely a good accomplishment. A lot of hard work."


The No. 29-seeded Stephens hadn't been given much of a chance of beating Williams, who lost only four matches in 2012 and was in contention to regain the No. 1 ranking at the age of 31.


Williams' latest winning streak included a straight-set win over Stephens at the Brisbane International this month.


Stephens wasn't even sure that she could beat Williams until she woke up Wednesday.


"When I got up, I was like, 'Look, Dude, like, you can do this.' Like, 'Go out and play and do your best," she said.


Williams walked around the net to congratulate Stephens, who then clapped her hand on her racket and waved to the crowd, a look of disbelief on her face.


Stephens has said she had a photo of Williams in her room when she was a child, and had long admired the Williams sisters.


"This is so crazy. Oh my goodness," Stephens said, wiping away tears in her post-match TV interview. "I think I'll put a poster of myself (up) now."


Azarenka, with her most famous fan sitting in the crowd wearing a shirt reminding her to keep calm, overcame some early jitters to beat Kuznetsova.


After dropping serve in a long fourth game that went to deuce 10 times, Azarenka recovered to dominate the rest of the match against Kuznetsova, a two-time major winner who was floating dangerously in the draw with a No. 75 ranking as she recovers from a knee injury.


Azarenka's American rapper friend, Redfoo, returned from a concert in Malaysia to attend Wednesday's quarterfinal match.


Wearing a red sleeveless T-shirt that read "Keep Calm and Bring Out the Bottles," the name of his next single, Redfoo stood, clapped and yelled "Come on, Vika!" during the tight first set.


Williams' loss was a boost for Azarenka, who lost all five head-to-heads against the American in 2012 and is 1-11 in their career meetings.


The 25-year-old Murray had his service broken for only the second time while serving for the match. But he broke back immediately to clinch a quarterfinal victory.


Murray discounted comments in the British media that he was upset with an almost full schedule of day matches while Federer was given featured cooler night slots on Rod Laver Arena.


"The scheduling for me is part and parcel of playing in really any tennis tournament," Murray said. "It's tough to make the schedule perfect for every single player."


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Democratic Senators Pass Torch to EPA on Climate Change






After years of trying—and failing—to get climate-change legislation through Congress, top Senate Democrats are publicly ready to hand over the power to President Obama and the Environmental Protection Agency.


“A lot of people don’t recognize that EPA has huge authority to reduce carbon in the air,” Senate Environment and Public Works Committee Chairwoman Barbara Boxer, D-Calif., said at a briefing Tuesday.






“A lot of you press me … on: ‘Where is the bill on climate change? Where is the bill’? There doesn’t have to be a bill,” Boxer told a group of reporters in her office in the Hart Senate Building. “There will be many approaches, but I’m telling you right now, EPA has the authority in the transportation sector, in the electricity sector, and the industrial sector under the Clean Air Act.”


Boxer’s public comments come a few months after another top Democrat, Senate Democratic Policy and Communications Center Chairman Chuck Schumer of New York, made similar comments to another group of reporters shortly after the election in November. Speaking at a Christian Science Monitor breakfast, Schumer noted the significance of EPA’s authority to regulate greenhouse-gas emissions and said that Congress could instead tackle smaller bits of policy, such as energy-efficiency legislation.


The statements by Boxer and Schumer that they won’t push big climate legislation and will defer to EPA on global warming are two of the clearest signals yet that the Democratic Party will not only defend the agency’s authority to regulate carbon emissions but that it will also follow through on the regulations, despite Republican criticism and industry pleas to slow down the rules. Boxer’s statement also came on the heels of Obama’s Inaugural Address, where he gave a full-throttled call to action on climate change.


After spending the past two years fighting over EPA and casting messaging votes on the agency’s carbon rules, Congress is poised for even more intense partisan clashes. This year’s fights will carry more weight as the agency gets closer to rolling out the regulations that will affect coal-fired power plants across the country. Senate Majority Leader Harry Reid, D-Nev., ensured during the last congressional session that no GOP-led efforts to pass legislation delaying or eliminating EPA’s climate rules can succeed. Boxer is confident Senate Democrats can beat back expected GOP efforts this Congress, too.


“We will stop it every time, let me just tell you that,” Boxer said.


A 2007 ruling from the Supreme Court is backing Boxer up. Republicans—with potential support from some moderate Democrats up for reelection in 2014—will nonetheless put up a big fight. Sen. James Inhofe, R-Okla., who has been the ranking member on the Environment and Public Works Committee during Obama’s first term, and GOP leadership in the House have vowed to keep trying to curtail EPA on a whole host of issues, especially climate change. A request for comment to the Environment panel’s new top Republican, Sen. David Vitter of Louisiana, was not returned.


Energy News Headlines – Yahoo! News





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2013 could be 'climate game-changer'




An ice sculpture entitled 'Minimum Monument' by Brazilian artist Nele Azevedo outside Berlin's Concert Hall, September 2, 2009.




STORY HIGHLIGHTS


  • The "neglected" risk of climate change seems to be rising to the top of leaders' agendas

  • Extreme weather events are costing the global economy billions of dollars each year

  • Gas can be an important bridge to a lower carbon future but it's not the answer

  • More investment in renewable energy is needed, with fewer risks




Editor's note: Andrew Steer is President and CEO of the World Resources Institute, a think tank that works with governments, businesses and civil society to find sustainable solutions to environmental and development challenges.


(CNN) -- As leaders gather for the World Economic Forum in Davos, signs of economic hope are upon us. The global economy is on the mend. Worldwide, the middle class is expanding by an estimated 100 million per year. And the quality of life for millions in Asia and Africa is growing at an unprecedented pace.


Threats abound, of course. One neglected risk -- climate change -- appears to at last be rising to the top of agendas in business and political circles. When the World Economic Forum recently asked 1,000 leaders from industry, government, academia, and civil society to rank risks over the coming decade for the Global Risks 2013 report, climate change was in the top three. And in his second inaugural address, President Obama identified climate change as a major priority for his Administration.



Andrew Steer

Andrew Steer



For good reason: last year was the hottest year on record for the continental United States, and records for extreme weather events were broken around the world. We are seeing more droughts, wildfires, and rising seas. The current U.S. drought will wipe out approximately 1% of the U.S. GDP and is on course to be the costliest natural disaster in U.S. history. Damage from Hurricane Sandy will cost another 0.5% of GDP. And a recent study found that the cost of climate change is about $1.2 trillion per year globally, or 1.6% of global GDP.


Shifting to low-carbon energy sources is critical to mitigating climate change's impacts. Today's global energy mix is changing rapidly, but is it heading in the right direction?


Coal is the greatest driver of carbon dioxide emissions from energy, accounting for more than 40% of the total worldwide. Although coal demand is falling in the United States -- with 55 coal-powered plants closed in the past year -- it's growing globally. The World Resources Institute (WRI) recently identified 1,200 proposed new coal plants around the world. And last year, the United States hit a record-high level of coal exports—arguably transferring U.S. emissions abroad.










Meanwhile, shale gas is booming. Production in the United States has increased nearly tenfold since 2005, and China, India, Argentina, and many others have huge potential reserves. This development can be an economic blessing in many regions, and, because carbon emissions of shale gas are roughly half those of coal, it can help us get onto a lower carbon growth path.


However, while gas is an important bridge to a low carbon future—and can be a component of such a future—it can't get us fully to where we need to be. Greenhouse gas emissions in industrial countries need to fall by 80-90% by 2050 to prevent climate change's most disastrous impacts. And there is evidence that gas is crowding out renewables.


Renewable energy -- especially solar and wind power -- are clear winners when it comes to reducing emissions. Unfortunately, despite falling prices, the financial markets remain largely risk-averse. Many investors are less willing to finance renewable power. As a result of this mindset, along with policy uncertainty and the proliferation of low-cost gas, renewable energy investment dropped 11%, to $268 billion, last year.


What do we need to get on track?


Incentivizing renewable energy investment


Currently, more than 100 countries have renewable energy targets, more than 40 developing nations have introduced feed-in tariffs, and countries from Saudi Arabia to South Africa are making big bets on renewables as a growth market. Many countries are also exploring carbon-trading markets, including the EU, South Korea, and Australia. This year, China launched pilot trading projects in five cities and two provinces, with a goal of a national program by 2015.


Removing market barriers


Despite growing demand for renewable energy from many companies, this demand often remains unmet due to numerous regulatory, financial, and psychological barriers in the marketplace.


In an effort to address these, WRI just launched the Green Power Market Development Group in India, bringing together industry, government, and NGOs to build critical support for renewable energy markets. A dozen major companies from a variety of sectors—like Infosys, ACC, Cognizant, IBM, WIPRO, and others— have joined the initiative. This type of government-industry-utility partnership, built upon highly successful models elsewhere, can spur expanded clean energy development. It will be highlighted in Davos this week at meetings of the Green Growth Action Alliance (G2A2).


De-risking investments


For technical, policy, and financial reasons, risks are often higher for renewables than fossil-based energy. Addressing these risks is the big remaining task to bring about the needed energy transformation. Some new funding mechanisms are emerging that can help reduce risk and thus leverage large sums of financing. For example, the Green Climate Fund could, if well-designed, be an important venue to raise funds and drive additional investments from capital markets. Likewise, multi-lateral development banks' recent $175 billion commitment to sustainable transport could help leverage more funds from the private and public sectors.


Some forward-looking companies are seeking to create internal incentives for green investments. For example, companies like Unilever, Johnson & Johnson, and UPS have been taking actions to reduce internal hurdle rates and shift strategic thinking to the longer-term horizons that many green strategies need.


Davos is exactly the type of venue for finding solutions to such issues, which requires leadership and coalition-building from the private and public sectors. For example, the the G2A2, an alliance of CEOs committed to addressing climate and environmental risks, will launch the Green Investment Report with precisely the goal of "unlocking finance for green growth".


Depending on what happens at Davos—and other forums and meetings like it throughout the year—2013 could just be a game-changer.


Follow us on Twitter@CNNOpinion.


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The opinions expressed in this commentary are solely those of Andrew Steer.






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