News botryose

Possible SIA revamp on the cards

SINGAPORE: As the aviation industry continues to be plagued by rising fuel costs and weakness in the global economy, Singapore Airlines has seen its profits being squeezed as more travellers turn to cheaper alternatives.

The airline, which is Asia's second largest by market capitalisation, cautioned on Thursday that loads and yields for its passenger and cargo businesses are expected to remain under pressure.

In an effort to further slash costs, SIA has also recently reduced its cockpit crew.

Competition from gulf carriers and budget airlines has significantly affected the profits of legacy carriers. With costs of jet fuel set to rise even further, analysts say it is imperative for legacy carriers such as SIA to revamp itself, either with new product offerings or new destinations.

"SIA has always done exceptionally well with its offering of premium products... But perhaps it's time for them to re-look the premium economy segment... which is an area where many other competitors are looking at," said Shukor Yusof, an aviation analyst with Standard & Poor's.

"If they were to come up with something that would entice passengers that are currently flying low cost carriers and if they can manage the fares in a way that would attract large numbers on board, then it would work," he said.

Besides SilkAir, SIA has also started its long-haul low-cost offshoot Scoot, in an attempt to glean some profits from the low cost carrier segment.

However some believe SIA should continue to pump money to protect its premium seats segment.

"Their premium sector is what holds them up. They've high yielding passengers and if they try to reduce that, they will lose them to other premium carriers like Cathay, Qantas, (or) Emirates," said Shashank Nigam, CEO of Simpliflying.

"Singapore airlines, while they're part of Star Alliance, they're not very close to their members so certainly after having sold (their) Virgin Atlantic stake, they should be looking at other partnerships to enhance passenger experience," he added.

Besides teaming up with Emirates, competitor Qantas has also announced its intention to form stronger links to the key hubs of Singapore and Hong Kong, paving the way for more head-on competition with SIA.

Analysts say some of these enhancements should include more technology updates to appeal to the well-connected traveller.

- CNA/jc

3 dead; cops targeted; manhunt spreads across LA

Labels: Lifestyle

By Michael Pearson, CNN

updated 10:40 AM EST, Thu February 7, 2013

A manhunt is underway for Christopher Jordan Dorner, 33, a former Los Angeles police.

STORY HIGHLIGHTS

NEW: Good Samaritan radioed in Riverside police shooting, authorities say

Police are seeking Christopher Jordan Dorner in connection with shootings overnight

Dorner, a former cop, allegedly threatened "unconventional and asymmetrical warfare"

He is also the suspect in a double murder Sunday in Irvine, police there say

(CNN) -- A former Los Angeles cop who had allegedly warned he would target law enforcement in retribution for being fired is now suspected of shooting at least two officers early Thursday, killing one, authorities said.

The shootings -- which come a day after Irvine, California police named Christopher Jordan Dorner as the suspect in a double slaying there Sunday -- sparked a huge manhunt in Southern California.

The California Highway Patrol issued an alert Thursday morning urging officers in several Southern California counties to be on the lookout for the onetime officer.

Dorner, 33, is suspected of shooting two officers in Riverside, one fatally, around 1:30 a.m., police there confirmed to CNN. Police learned of the shooting when Good Samaritan picked up a police radio and made a distress call on behalf of the wounded officers, Riverside police said.

CNN affiliate KTLA reported another officer had been shot in Corona, California.

In addition to Thursday's shootings, Dorner is suspected of the February 3 deaths of Keith Lawrence and Monica Quan in Irvine, according to police there.

Dorner has made violent threats against other Los Angeles police officers, the agency said.

"I will bring unconventional and asymmetrical warfare to those in LAPD uniform whether on or off duty," Dorner allegedly wrote in a lengthy letter promising retribution against the department, where he worked from 2005 until 2008. An LAPD source provided the document Thursday to CNN.

The letter writer claimed he was terminated after he reported excessive force by a fellow officer, and said his attacks were retribution for his termination, as well as a culture of racism and violence he says continues within the department.

He called the attacks against police "a necessary evil that I do not enjoy but must partake and complete for substantial change to occur within the LAPD and reclaim my name."

Los Angeles police warned people who encounter Dorner not to approach him, saying he is likely "armed and extremely dangerous."

"Our department is implementing all measures possible to ensure the safety of our LAPD personnel, their families and the Los Angeles community, and will continue to do so until Dorner is apprehended and all threats have been abated," police said in a statement.

CNN's Mallory Simon and Deanna Hackney contributed to this report.

Winter nor'easter sweeping into Northeast

Labels: Health

A major snowstorm is passing through the Great Lakes Thursday morning, and by Friday night could make travel nearly impossible in parts of the Northeast.

CBS News weather consultant David Bernard says there is a potential for historic snows and blizzard conditions across the Northeast, with as much as 2 feet of snow in some areas.

The National Weather Service says this nor'easter-type storm system will bring strong winds and heavy snow to the region, with eastern New England experiencing the greatest effects. A blizzard watch was issued for Boston and surrounding areas, including Rhode Island, and has now been extended to the eastern end of Long Island and most of Connecticut.

A coastal flooding watch also is in effect for some shore communities in Massachusetts, Connecticut and Long Island.

Beginning late Thursday most of the Northeast will be under a winter storm watch. The snow will start Friday morning, with the heaviest amounts dumped going into Saturday as the storm moves past New England and upstate New York, the weather service said.

Bernard says the storm system - an area of low pressure over the Carolinas - is going to rapidly move to the Northeast during the day Friday; by Friday evening it may start as rain along the coast, but inland areas will get snow.

Late Friday night into Saturday morning, Bernard said, it should be all snow across the Northeast and New England. He said up to 2 feet of snow is not out of the question.

"This has the potential for being a dangerous storm, especially for Massachusetts into northeast Connecticut and up into Maine," said Louis Uccellini, director of the weather agency's National Centers for Environmental Prediction.

The storm would hit just after the 35th anniversary of the historic blizzard of 1978, which paralyzed the region with more than 2 feet of snow and hurricane force winds.

In New York City Friday's rain will turn to snow, with the potential of 6, maybe 12 inches of snow, Bernard said.

Assuming the snow clears out by the weekend with no major problems, ski areas in Massachusetts were excited by the prospect of the first major snowstorm they've seen since October 2011.

Tom Meyers, marketing director for Wachusett Mountain Ski Area in Princeton, Mass., said that at an annual conference of the National Ski Areas Association in Vermont this week, many participants were "buzzing" about the storm. He said the snow will arrive at an especially opportune time — a week before many schools in Massachusetts have February vacation.

"It is perfect timing because it will just remind everybody that it is winter, it's real, and get out and enjoy it," Meyers said.

"We'll be here with bells on," said Christopher Kitchin, inside operations manager at Nashoba Valley Ski Area in Westford, Mass. "People are getting excited. They want to get out in the snow and go snow-tubing, skiing and snowboarding."

At Mount Snow in Vermont, spokesman Dave Meeker said the true value of the storm will be driving traffic from southern New England northward.

"It's great when we get snow, but it's a tremendous help when down-country gets snow," he said. "When they have snow in their backyards, they're inspired."

Ex-LA Cop Sought in Shootings of 3 Cops, 2 Slayings

Labels: Business

Police in Southern California say they suspect that a fired cop is connected to the shootings -- one fatal -- of three police officers this morning, as well as the weekend slayings of an assistant women's college basketball coach and her fiancé in what cops believe are acts of revenge against the LAPD, as suggested in the suspect's online manifesto.

Former police officer Christopher Jordan Dorner, 33, who's a U.S. Navy reservist, has been publically named as a suspect in the killings of Monica Quan, 28, and her 27-year-old fiancé, Keith Lawrence, Irvine police Chief David L. Maggard said at a news conference Wednesday night.

"We are considering him armed and dangerous," Lt. Julia Engen of the Irvine Police Department said.

Police say Dorner shot at four officers in two incidents overnight, hitting three of them: one in Corona, Calif., and two in Riverside, Calif.

Sgt. Rudy Lopez of the LAPD said two LAPD officers were in Corona, and were heading out on special detail to check on one of the individuals named in Dorner's manifesto. Dorner allegedly grazed one of them but missed the other.

The Riverside Police Department said two of its officers were shot before one of them died, KABC-TV reported. The extent of the other's injuries is unclear.

Police suspected a connection to Dorner.

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"They were on routine patrol stopped at a stop light when they were ambushed," Lt. Guy Toussant of the Riverside police department said.

Police around Southern California are wearing tactical gear, including helmets and guns across their chests. The light-up signs along California highways show the license plate number of Dorner's car, and say to call 911 if it is seen. The problem, police say, is that they believe Dorner is switching license plates on his car, a 2005 charcoal gray Nissan Titan pickup truck.

Lawrence was found slumped behind the wheel of his white Kia in the parking lot of their upscale apartment complex in Irvine Sunday and Quan was in the passenger seat.

"A particular interest at this point in the investigation is a multi-page manifesto in which the suspect has implicated himself in the slayings," Maggard said.

Police said Dorner's manifesto included threats against members of the LAPD. Police say they are taking extra measures to ensure the safety of officers and their families.

The document, allegedly posted on an Internet message board this week, apparently blames Quan's father, retired LAPD Capt. Randy Quan, for his firing from the department.

"Your lack of ethics and conspiring to wrong a just individual are over," he allegedly wrote.

One passage from the manifesto reads, "I will bring unconventional and asymmetrical warfare to those in LAPD uniform whether on or off duty."

"I never had the opportunity to have a family of my own," it reads. "I'm terminating yours."

Dorner was with the department from 2005 until 2008, when he was fired for making false statements.

Randy Quan, who became a lawyer in retirement, represented Dorner in front of the Board of Rights, a tribunal that ruled against Dorner at the time of his dismissal, LAPD Capt. William Hayes told The Associated Press Wednesday night.

According to documents from a court of appeals hearing in October 2011, Dorner was fired from the LAPD after he made a complaint against his field-training officer, Sgt. Teresa Evans, saying in the course of an arrest she had kicked a suspect who was a schizophrenic with severe dementia.

After an investigation, Dorner was fired for making false statements.

Should we still fear al Qaeda?

Labels: World

Mali military battles Islamist insurgents

STORY HIGHLIGHTS

Peter Bergen: U.K. politicians called North Africa terror an existential threat

Bergen says core al Qaeda has been greatly weakened, hasn't mounted serious operations

Terror groups loosely affiliated with al Qaeda have also lost ground, he says

Bergen: Jihadist violence does continue, but it does no good to overstate threat

Editor's note: Peter Bergen is CNN's national security analyst, the author of "Manhunt: The Ten-Year Search for bin Laden -- From 9/11 to Abbottabad", and a director at the New America Foundation.

Washington (CNN) -- The attack in January on a gas facility in Algeria by an al Qaeda-linked group that resulted in at least 37 dead hostages has sparked an outpouring of dire warnings from leading Western politicians.

British Prime Minister David Cameron described a "large and existential threat" emanating from North Africa. Tony Blair, his predecessor as prime minister, agreed saying, "David Cameron is right to warn that this is a battle for our values and way of life which will take years, even decades."

Hang on chaps! Before we all get our knickers in a tremendous twist: How exactly does an attack on an undefended gas facility in the remotest depths of the Algerian desert become an "existential threat" to our "way of life"?

Across the Atlantic, American politicians also got into sky-is-falling mode. Republican Congressman Mike Rogers, who heads the House Intelligence Committee, fulminated, "This is going to get worse. You cannot allow this to become a national security issue for the United States. And I argue it's already crossed that threshold."

Peter Bergen

Previous real U.S. national security threats and their manifestations include 9/11, the doctrine of mutually assured destruction (from the potential use of nuclear weapons) with the Soviets, Pearl Harbor and Hitler's armies taking over much of Europe.

A ragtag group of jihadists roaming the North African deserts is orders of magnitude less significant than those genuine threats to the West and is more comparable to the threats posed by the bands of pirates who continue to harass shipping off the coast of Somalia. They are surely a problem, but a localized and containable one.

Western politicians and commentators who claim that the al Qaeda linked groups in North Africa are a serious threat to the West unnecessarily alarm their publics and also feed the self-image of these terrorists who aspire to attack the West, but don't have the capacity to do so. Terrorism doesn't work if folks aren't terrorized.

North African group hasn't attacked in the West

Western politicians and commentators who claim that the al Qaeda linked groups in North Africa are a serious threat to the West unnecessarily alarm their publics...
Peter Bergen

Much has been written, for instance, in recent weeks about al Qaeda in the Islamic Maghreb (AQIM), al Qaeda's North African affiliate, a splinter group of which carried out the attack on the Algerian gas facility. But according to Camille Tawil, who has authoritatively covered Islamist militant groups over the past two decades for the leading Arabic daily Al-Hayat and has written three books about al Qaeda, AQIM doesn't threaten the West: "To my knowledge no known attacks or aborted attacks in the West have been linked directly to AQIM."

AQIM was formed seven years ago so the group has had more than enough time to plot and carry out an attack in the West. By way of comparison, it took two years of serious plotting for al Qaeda to plan the 9/11 attacks.

So, what is the real level of threat now posed by al Qaeda and allied groups?

Let's start with "core al Qaeda" which attacked the United States on 9/11 and that is headquartered in Pakistan. This group hasn't, of course, been able to pull off an attack in the United States in twelve years. Nor has it been able to mount an attack anywhere in the West since the attacks on London's transportation system eight years ago.

Core al Qaeda on way to extinction

Osama bin Laden, the group's founder and charismatic leader, was buried at sea a year and half ago and despite concerns that his "martyrdom" would provoke a rash of attacks in the West or against Western interests in the Muslim world there has instead been.... nothing.

Meanwhile, CIA drone strikes in Pakistan during President Obama's tenure alone have killed 38 of al Qaeda's leaders in Pakistan, according to a count by the New America Foundation.

Those drone strikes were so effective that shortly before bin Laden died he was contemplating ordering what remained of al Qaeda to move to Kunar Province in the remote, heavily forested mountains of eastern Afghanistan, according to documents that were discovered following the SEAL assault on the compound where bin Laden was hiding in Abbottabad, Pakistan.

Core al Qaeda is going the way of the dodo.

Affiliates are no better off

And a number of the affiliates of core al Qaeda are in just as bad shape as the mother ship.

Jemaah Islamiah (JI), the virulent Southeast Asian al Qaeda affiliate that killed hundreds in the years after 9/11 is largely out of business. Why so? JI killed mostly Westerners in its first attacks on the tourist island of Bali in 2002, but the subsequent Bali attack three years later killed mostly Indonesians. So too did JI's attacks on the Marriott hotel in the capital Jakarta in 2003 and the Australian embassy in 2004. As a result, JI lost any shred of popular support it had once enjoyed.

At the same time the Indonesian government, which at one point had denied that JI even existed, mounted a sophisticated campaign to dismantle the group, capturing many of its leaders and putting them on trial.

In the Philippines, the Abu Sayyaf Group, a number of whose leaders had trained in Afghanistan in al Qaeda's camps, and which specialized in kidnapping Westerners in the years after 9/11, was effectively dismantled by the Philippine army working in tandem with a small contingent of U.S. Special Operations Forces.

In Pakistan, the Pakistani Taliban in 2009 took over the once-tranquil mountainous vacation destination of Swat, and destroyed some 180 schools and beheaded 70 policemen there. Suddenly, they were only 70 miles from the capital Islamabad and some warned that the Pakistani state was in danger. Today, the Pakistani Taliban have been rolled back to their bases along the Afghan border and 16 of their leaders have been killed by CIA drones since President Obama took office.

Al Qaeda militants based in Saudi Arabia mounted a terrorist campaign beginning in 2003 that killed dozens of Saudis, and they also attacked a number of the oil workers and oil facilities that lie at the heart of the Saudi economy. This prompted the Saudi government to mount such an effective crackdown that the few remaining al Qaeda leaders who were not killed or captured have in recent years fled south to Yemen where the remnants of al Qaeda in the Arabian Peninsula (AQAP) are now based.

From its new headquarters in Yemen AQAP has made serious efforts to attack the United States, sending the "underwear bomber" to blow up Northwest Flight 253 over Detroit on Christmas Day 2009 and also smuggling bombs on to U.S.-bound cargo shipments in October 2010.

None of these attempts were successful.

Yemen militants decimated

As a result of the threat posed by AQAP, the United States has mounted a devastating campaign against the group over the past three years. There was one American drone strike in Yemen in 2009. In 2012 there were 46. That drone campaign has killed 28 prominent members of the group, according to a count by the New America Foundation. Among them was the No. 2 in AQAP, Said al-Shihri, who was confirmed to be dead last week.

In the chaos of the multiple civil wars that gripped Yemen in 2011, AQAP seized a number of towns in southern Yemen. But AQAP has now been pushed out of those towns because of effective joint operations between U.S. Special Operations Forces, the CIA and the Yemeni government.

The Yemeni president, Abd Rabbuh Mansur Hadi, even went to the United Nations General Assembly in September where he publicly endorsed the use of CIA drones in his country, something of a first.

A couple of years ago, al Qaeda's Somali affiliate, Al- Shabaab ("the youth" in Arabic) controlled much of southern Somalia including key cities such as the capital Mogadishu.

Once in a position of power, Shaabab inflicted Taliban-like rule on a reluctant Somali population, which eroded its popular legitimacy. Shabaab was also the target of effective military operations by the military of neighboring Kenya, troops of the African Union and U.S. Special Operation Forces.

As a result, today the group controls only some rural areas and for the first time in two decades the United States has formally recognized a Somali government.

Mali conflict shows weakness of jihadist militant groups

Similarly, groups with an al Qaeda-like agenda captured most of northern Mali last year, a vast desert region the size of France. Once in power they imposed Taliban-like strictures on the population, banning smoking and music and enforcing their interpretation of Sharia law with the amputation of hands. The militants also destroyed tombs in the ancient city of Timbuktu, a UNESCO World Heritage site, on the grounds that the tombs promoted "idol worship."

None of these measures endeared the jihadist militants to the population of Mali. In the past weeks, as a relatively small force of some 2,000 French soldiers has rolled through Mali putting the militants on the run, the French have been cheered on by dancing and singing Malians.

When French soldiers are greeted as an army of liberation in an area of the world that in the past century was part of a vast French empire, you can get a sense of how much the jihadist militants had alienated the locals.

Last week the French military took the city of Timbuktu. The defeat of the al Qaeda-linked groups as effective insurgent forces in Mali is now almost complete.

What has just happened in Mali gets to the central problem that jihadist militant groups invariably have. Wherever they begin to control territory and population they create self-styled Islamic "emirates" where they then rule like the Taliban.

Over time this doesn't go down too well with the locals, who usually practice a far less austere version of Islam, and they eventually rise up against the militants, or, if they are too weak to do so themselves, they will cheer on an outside intervention to turf out the militants.

The classical example of this happened in Iraq where al Qaeda in Iraq (AQI) controlled Anbar Province, about a third of the country in 2006. AQI cadres ruled with an iron fist and imposed their ultrafundamentalist rule on their fellow Sunnis, who they killed if they felt they were deviating from their supposedly purist Islamic precepts.

This provoked the "Sunni Awakening" of Iraqi tribes that rose up against AQI. These tribes then allied with the U.S. military and by the end of 2007 AQI went from an insurgent group that controlled vast territories to a terrorist group that controlled little but was still able to pull off occasional spectacular terrorist attacks in Baghdad.

Jihadist violence still a threat

The collapse of core al Qaeda and a number of its key affiliates does not, of course, mean that jihadist violence is over. Such religiously motivated mayhem has been a feature of the Muslim world for many centuries. Recall the Assassins, a Shia sect that from its base in what is now Iran dispatched cutthroats armed with daggers to kill its enemies around the Middle East during the 12th and 13th centuries. In so doing the sect gave the world the useful noun "assassin."

And so while core al Qaeda and several of its affiliates and like-minded groups are in terrible shape, there are certainly groups with links to al Qaeda or animated by its ideology that are today enjoying something of a resurgence.

Most of these groups do not call themselves al Qaeda, which is a smart tactic, as even bin Laden himself was advising his Somali affiliate, Al Shabaab, not to use the al Qaeda name as it would turn off fundraisers because the shine had long gone off the al Qaeda brand, according to documents recovered at bin Laden's Abbottabad compound.

One such militant group is the Nigerian Boko Haram, which bombed the United Nations headquarters in Nigeria in 2011 and has also attacked a wide range of Christian targets in the country. However, the group has shown "no capability to attack the West and also has no known members outside of West Africa," according to Virginia Comolli of the London-based International Institute for Strategic Studies who tracks the group.

Ansar al-Sharia, "Supporters of Sharia," is the name taken by the militant group in Libya that carried out the attack against the U.S. consulate in Benghazi in September in which four Americans were killed. Similarly, in Yemen militants that are aligned with al Qaeda have labeled themselves Ansar al-Sharia.

But this new branding hasn't done the militants much good in either country. In Libya, shortly after the attack on the U.S. consulate, an enraged mob stormed and took over Ansar al Sharia's headquarters in Benghazi. And, as we have seen, in Yemen the jihadists have now been forced out of the towns in the south that they had once held.

One strong foothold in Syria

The one country where jihadist militants have a serious foothold and are likely to play an important role for some period in the future is in Syria. That is because of a perfect storm there that favors them. The Sunni militants in Syria are fighting the regime of Bashir al Assad, a secular dictator who is also an Alawite, which many Muslims believe to be a heretical branch of Shiism.

For the jihadists, Assad's secularism makes him an apostate and his Alawi roots also make him a heretic, while his brutal tactics make him an international pariah. This trifecta makes funding the Sunni insurgency highly attractive for donors in the Gulf.

And for the Arabs who form the heart of al Qaeda the fight against Assad is in the heart of the Arab world, a contest that happens to border also on the hated state of Israel. Also Syria was for much of the past decade the entry point for many hundreds of foreign fighters who poured into Iraq to join Al Qaeda in Iraq following the American invasion of the country. As a result, al Qaeda has long had an infrastructure both in Syria and, of course, in neighboring Iraq.

The Al Nusra Front is the name of arguably the most effective fighting force in Syria. In December the State Department publicly said that Al Nusra, which is estimated to number in the low thousands and about 10% of the fighters arrayed against Assad, was a front for Al Qaeda in Iraq (AQI).

Al Nusra certainly seems to have learned from AQI's mistakes. For starters, it doesn't call itself al Qaeda. Secondly, it hasn't launched a campaign to crack down on social issues such as smoking or listening to music and so has not alienated the local Sunni population as AQI did in Iraq.

Barak Barfi, a journalist and fellow at the New America Foundation who has spent several months on the ground in Aleppo in northwestern Syria reporting on the opposition to Assad, says Nusra fighters stand out for their bravery and discipline: "They are winning over the hearts and minds of Aleppo residents who see them as straight shooters. There is a regimented recruiting process that weeds out the chaff. Their bases are highly organized with each person given specific responsibilities."

Arab Spring countries seen as an opportunity

The chaotic conditions of several of the countries of the "Arab Spring" are certainly something al Qaeda views as an opportunity. Ayman al-Zawahiri the leader of the group, has issued 27 audio and video statements since the death of bin Laden, 10 of which have focused on the Arab countries that have experienced the revolutions of the past two years.

But if history is a guide, the jihadist militants, whether in Syria or elsewhere, are likely to repeat the mistakes and failures that their fellow militants have experienced during the past decade in countries as disparate as Somalia, the Philippines, Yemen, Iraq, Indonesia, Saudi Arabia and now, Mali.

That's because encoded in the DNA of al Qaeda and like-minded groups are the seeds of their own destruction because in power they rule like the Taliban, and they also attack fellow Muslims who don't follow their dictates to the letter. This doesn't mesh very well with these organizations' claims that they are the defenders of Muslims.

These groups also have no real plans for the multiple political and economic problems that beset much of the Islamic world. And they won't engage in normal politics such as elections believing them to be "un-Islamic."

This is invariably a recipe for irrelevance or defeat. In not one nation in the Muslim world since 9/11 has a jihadist militant group seized control of a country. And al Qaeda and its allies' record of effective attacks in the West has been non-existent since 2005.

With threats like these we can all sleep soundly at night.

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Euro not currently overvalued, Germany says

Labels: Technology

BERLIN : The euro is not currently overvalued and exchange rates should not be used to try and boost competitiveness, the German government said Wednesday, rejecting French calls for ways to cap the single currency's recent rise.

"The German government is of the conviction that the euro, historically speaking, is currently not overvalued," government spokesman Steffen Seibert told a news briefing.

"What we're currently seeing is a rise in the value of the euro which is a counter-reaction to the massive depreciation in the wake of the eurozone crisis," Seibert said.

Earlier in Paris, French Finance Minister Pierre Moscovici had said an overvalued euro hurts economic growth and the issue should be discussed among eurozone finance ministers and the group of 20 leading economies.

But Berlin sees no cause for alarm.

The latest rise in the euro "shows that financial markets' confidence in the euro is returning. That's not a bad thing," government spokesman Seibert continued.

Germany believes that a currency's exchange rate should reflect its economic fundamentals "and flexible exchange rates are the best to way to achieve this," he said.

"I can only point out that both the G8 and the G20 separately agreed that it made sense for the markets to set exchange rates," the spokesman noted.

French minister Moscovici said that while the euro's recent rise was partly explained by the abatement of the eurozone crisis, the monetary policy of other countries was also to blame.

Moscovici said it is "legitimate" to discuss with European finance ministers what could be the fair value of the euro and the right way to get there.

But while Seibert acknowledged that the topic would likely be discussed, "from our point of view, exchange rate policy is not an appropriate tool to boost competitiveness.

"The effects of things like targeted devaluation tend to be rather short-term. You can't use it to achieve a lasting boost in competitiveness," Seibert said.

A day earlier, French President Francois Hollande had said the euro's value cannot not be left to the whims of the market.

Speaking to European Parliament in Strasbourg said "a single currency zone must have a foreign exchange policy otherwise it will see an exchange rate imposed on it (by the markets) which is out of line with its real competitive position."

The euro has strengthened sharply in the past few months as the eurozone appeared to have finally got the better of a debt crisis which at one stage looked likely to sink the whole project.

On Friday, the single currency hit US$1.3711, a level last seen in mid-November 2011, stoking concerns that it could begin to hurt exports, a key growth driver at a time when the overall eurozone economy is struggling badly.

For several months some emerging countries have objected that monetary policy by leading central banks, in injecting liquidity into their own economies, tends to depress their currencies and amounts to a policy of competitive devaluation.

Analysts say that the policy of the European Central Bank is showing signs of being somewhat less relaxed and this is one factor tending to push up the euro.

- AFP/ch

Panetta: Military faces 'readiness crisis'

Labels: Lifestyle

STORY HIGHLIGHTS

President Obama and Congress are battling over automatic spending cuts

Secretary Panetta says political partisanship threatens U.S. stability

"This is not a game. This is reality," Panetta says of reduced readiness

The across-the-board cuts will take effect March 1 unless Congress acts

Washington (CNN) -- Furloughed workers, reduced combat readiness, shrunken naval operations and cuts to Air Force flying hours and weapons maintenance.

Defense Secretary Leon Panetta listed those consequences as he provided a stark warning Wednesday about the effects of impending budget cuts on the military. The result, he said, would be "the most serious readiness crisis" faced by the military in over a decade.

Panetta's address at Georgetown University in Washington, which he called "hopefully one of my last speeches as secretary of defense," included the first details of how the Pentagon would deal with the automatic spending cuts -- or sequestration in congressional jargon -- set to trigger March 1.

For the Department of Defense, sequestration means $46 billion in spending cuts this year, which would result in "a serious disruption in defense programs and a sharp decline in our military readiness," Panetta said.

Opinion: How to avoid job-killing budget cuts

"There are no good options" to deal with the situation, he continued, saying 46,000 department jobs would be at risk and more damaging measures could result in coming months, including:

-- Furloughing as many as 800,000 civilian workers for up to 22 days;

-- Cutting back on Army training and maintenance, which would reduce readiness of combat brigades outside Afghanistan;

-- Shrinking naval operations; and,

-- Reducing Air Force flying hours and weapons systems maintenance.

"This is not a game. This is reality," Panetta said, his voice rising. "These steps would seriously damage a fragile American economy and they would degrade our ability to respond to crisis precisely at a time of rising instability across the globe."

His comments sought to increase pressure on Republicans and Democrats to reach agreement on deficit reduction steps, thereby avoiding the across-the-board spending cuts of sequestration that were part of a 2011 deal that raised the federal debt ceiling.

On Tuesday, President Barack Obama called for a short-term deal to put off the cuts so Congress could continue work on a permanent fix that provides desired reductions in the federal deficit.

Obama made clear that he still wants a broader deficit reduction agreement with Republicans that includes spending cuts, entitlement reforms and increased revenue from eliminating some tax breaks.

However, Obama said, with time running out before the sequestration cuts slash government spending and result in job losses and economic slowdown, Congress should pass a temporary fix that would allow time for further negotiations on a broader plan.

"Our economy right now is headed in the right direction and it will stay that way as long as there aren't any more self-inflicted wounds coming out of Washington," he said. "So let's keep on chipping away at this problem together, as Democrats and Republicans, to give our workers and our businesses the support that they need to thrive in the weeks and months ahead."

In response, House Speaker John Boehner, R-Ohio, and Senate Republican leader Mitch McConnell of Kentucky said further budget reduction steps should focus on spending cuts and reforming entitlement programs such as Medicare and Medicaid.

Opinion: Republicans, be smart about defense cuts

In the 2011 debt ceiling deal that ended a showdown over whether to increase the federal government's borrowing limit to meet its obligations, Congress and the White House agreed to include the automatic spending cuts of sequestration as motivation to pass a comprehensive deficit-reduction plan.

Deep partisan divisions prevented such an agreement from happening in 2012, an election year. Initially the cuts were to go into effect on January 2, but the government delayed the impact of sequestration for the first two months of 2013.

Panetta referred to what he described as "partisan dysfunction in Congress" that he said threatens the quality of life and national security of the nation.

Instead of making tough decisions to resolve problems, political leaders from both parties let issues become crises that require immediate but insufficient responses, he said.

"It's the easy way out," Panetta said, adding that there is a price to be paid for such an approach.

"You lose the trust of the American people," he said. "You create an aura of constant uncertainty that pervades every issue and gradually undermines the very credibility of the nation."

Referring specifically to sequestration, he said: "There isn't anybody I've talked to on Capitol Hill that doesn't think this is crazy."

Obama said Tuesday that he still supports a broader deficit deal and made clear that revenue from tax reform measures previously agreed to by Republicans -- such as eliminating some loopholes to increase revenue for the government -- should be part of it.

However, he noted that it is unlikely Congress will reach a deficit-reduction deal by March 1 to render the sequestration cuts moot.

"If they can't get a bigger package done by the time the sequester is scheduled to go into effect, then I believe that they should at least pass a smaller package of spending cuts and tax reforms that would delay the economically damaging effects of the sequester for a few more months until Congress finds a way to replace these cuts with a smarter solution," Obama said.

Boehner reacted to news of Obama's plan by saying it was the president who "first proposed the sequester and insisted it become law."

Reiterating the longstanding position of Republicans in budget negotiations, Boehner called for replacing the sequester plan with spending cuts and reforms -- a reference to changes in entitlement programs.

A last-second agreement in the previous Congress that passed in the first days of 2013 raised tax rates on top income earners as part of a limited deficit-reduction package.

That measure followed weeks of tough negotiations involving Obama and Congress in which other steps to increase government revenue, such as eliminating some tax breaks for corporations, were considered but not included in the final deal.

How our tribes cause gridlock in Congress

Obama and Democrats now want such revenue-raising steps to be part of a package that would replace the mandated deficit reduction of the sequester cuts.

McConnell expressed his opposition to such a move Tuesday, saying, "The American people will not support more tax hikes in place of the meaningful spending reductions both parties already agreed to and the president signed into law."

Federal spending cuts under sequestration total more than $1 trillion over 10 years, half of which would come from the Pentagon.

Obama's push to avoid those cuts comes a week before he outlines his second-term agenda in the State of the Union address.

Congress, which authorizes federal spending, has failed to pass detailed annual budgets in recent years due to partisan gridlock over spending and debt, as well as electoral politics.

Instead, it has approved a series of extensions of past spending authorizations -- called continuing resolutions -- to keep the government funded.

Temporarily extending the sequester deadline would follow a similar move by congressional Republicans last month on raising the nation's debt ceiling. That deal put off further wrangling on the federal borrowing limit until mid-May.

Some analysts warn that Washington's fiscal paralysis harms the nation's fragile economy and could bring another recession.

CNN's Barbara Starr contributed to this report.

Boy Scouts push back decision on allowing gay members

Labels: Health

IRVING, Texas The Boy Scouts of America's national executive board has delayed a decision on whether to lift its longstanding ban on gay scouts and leaders.

BSA said Wednesday the organization will take action on the resolution at its national meeting in May.

The organization said last week it was considering a shift of its policy, which has led officials to remove gay leaders and scouts. That announcement pushed years of debate over the policy to an even higher level.

President Barack Obama — Scouting's honorary president — spoke in favor of letting gay scouts in. Others opposed a shift. Protesters on both sides rallied at BSA headquarters in Irving, outside Dallas.

Scout leaders across the country will now have to decide how to handle a very delicate issue.

Hostage Taker Waged Firefight With SWAT Agents

Labels: Business

Jimmy Lee Dykes, the man who held a 5-year-old boy hostage for nearly a week in an underground bunker in Alabama, had two homemade explosive devices on his property and engaged in a firefight with SWAT agents before they stormed the bunker and killed him, according to the FBI.

One explosive device was found inside the bunker and another was located in the PVC pipe negotiators used to communicate with Dykes, the FBI said Tuesday night. Both devices were "disrupted," according to the FBI.
The search for hazards is expected to continue through today.

Preliminary investigation reports indicate that Dykes engaged in a firefight with the SWAT agents who made entry, according to the FBI.

Officials were able to insert a high-tech camera into the 6-by-8-foot bunker to monitor Dykes' movements, and they became increasingly concerned that he might act out, a law enforcement source with direct knowledge of the case told ABC News Monday.

FBI special agents were positioned near the entrance of the bunker and negotiators were able to convince Dykes to approach the bunker door. FBI agents used two explosions to gain entry into the bunker. It also appears that Dykes reinforced the bunker against any attempted entry by law enforcement, according to the FBI.

ABC News has learned that Dykes first opened fired on the agents during the bunker raid. Moments later, the agents returned fire, killing Dykes.

The shooting review team continues to gather facts regarding the incident, the FBI said.

Ala. Hostage Standoff Over: Kidnapper Dead, Child Safe Watch Video

The boy, only identified as Ethan, was rescued from the scene by a waiting ambulance. The bunker raid came six days after Dykes boarded a school bus, fatally shot the driver and abducted the boy, who suffered no physical injuries.

Click here for a look at what's next for Ethan.

"It's all about timing that is why you practice. You practice blowing the door in split seconds, flash bang, shoot before Mr. Dykes would even have an opportunity to react," Brad Garrett, former FBI agent and ABC News consultant, said.

Meanwhile, Ethan is set to celebrate his 6th birthday today, happily reunited with his family.

Ethan's thrilled relatives told "Good Morning America" Tuesday that he seemed "normal as a child could be" after what he went through and has been happily playing with his toy dinosaur.

"He's happy to be home," Ethan's great uncle Berlin Enfinger told "GMA." "He's very excited and he looks good."

"For the first time in almost a week, I woke up this morning to the most beautiful sight...my sweet boy. I can't describe how incredible it is to hold him again," Ethan's' mother wrote in a statement released by the FBI Tuesday.

Ethan is "running around the hospital room, putting sticky notes on everyone that was in there, eating a turkey sandwich and watching SpongeBob," Dale County Schools Superintendent Donny Bynum said at a news conference Tuesday.

When asked about a birthday party for Ethan, Bynum said, "We are still in the planning stages. Our time frame is that we are waiting for Ethan, waiting on that process, but we are going to have it at a school facility, most likely the football stadium at Dale County High School."

He said many "tears of celebration" were shed Monday night when Ethan was reunited with his family.

"If I could, I would do cartwheels all the way down the road," Ethan's aunt Debra Cook told "GMA." "I was ecstatic. Everything just seemed like it was so much clearer. You know, we had all been walking around in a fog and everyone was just excited. There's no words to put how we felt and how relieved we were."

Cook said that Ethan has not yet told them anything about what happened in the bunker and they know very little about Dykes.

What the family does know is that they are overjoyed to have their "little buddy" back.

"He's a special child, 90 miles per hour all the time," Cook said. "[He's] a very, very loving child. When he walks in the room, he just lights it up."

Richard III still the criminal king

Labels: World

Richard III on stage and screen

STORY HIGHLIGHTS

Dan Jones: Richard III's remains found; some see chance to redeem his bad reputation

Jones says the bones reveal and confirm his appearance, how he died and his injuries

Nothing changes his rep as a usurper of the Crown who likely had nephews killed, Jones says

Jones: Richard good or bad? Truth likely somewhere in between

Editor's note: Dan Jones is a historian and newspaper columnist based in London. His new book, "The Plantagenets" (Viking) is published in the US this Spring. Follow him on Twitter.

(CNN) -- Richard III is the king we British just can't seem to make our minds up about.

The monarch who reigned from 1483 to 1485 became, a century later, the blackest villain of Shakespeare's history plays. The three most commonly known facts of his life are that he stole the Crown, murdered his nephews and died wailing for a horse at the Battle of Bosworth in 1485. His death ushered in the Tudor dynasty, so Richard often suffers the dual ignominy of being named the last "medieval" king of England -- in which medieval is not held to be a good thing.

Like any black legend, much of it is slander.

Richard did indeed usurp the Crown and lose at Bosworth. He probably had his nephews killed too -- it is unknowable but overwhelmingly likely. Yet as his many supporters have been busy telling us since it was announced Monday that Richard's lost skeleton was found in a car park in Leicester, he wasn't all bad. In fact, he was for most of his life loyal and conscientious.

Dan Jones

To fill you in, a news conference held at the University of Leicester Monday confirmed what archaeologists working there have suspected for months: that a skeleton removed from under a parking lot in the city center last fall was indeed the long-lost remains of Richard III.

His official burial place -- under the floor of a church belonging to the monastic order of the Greyfriars -- had been lost during the dissolution of the monasteries that was carried out in the 1530s under Henry VIII. A legend grew up that the bones had been thrown in a river. Today, we know they were not.

What do the bones tell us?

Well, they show that Richard -- identified by mitochondrial DNA tests against a Canadian descendant of his sister, Anne of York -- was about 5-foot-8, suffered curvature of the spine and had delicate limbs. He had been buried roughly and unceremoniously in a shallow grave too small for him, beneath the choir of the church.

He had died from a slicing blow to the back of the head sustained during battle and had suffered many other "humiliation injuries" after his death, including having a knife or dagger plunged into his hind parts. His hands may have been tied at his burial. A TV show aired Monday night in the UK was expected to show a facial reconstruction from the skull.

Opinion: What will the finding of Richard III mean?

In other words, we have quite a lot of either new or confirmed biographical information about Richard.

He was not a hunchback, but he was spindly and warped. He died unhorsed. He was buried where it was said he was buried. He very likely was, as one source had said, carried roughly across a horse's back from the battlefield where he died to Leicester, stripped naked and abused all the way.

All this is known today thanks to a superb piece of historical teamwork.

The interdisciplinary team at Leicester that worked toward Monday's revelations deserves huge plaudits. From the desk-based research that pinpointed the spot to dig, to the digging itself, to the bone analysis, the DNA work and the genealogy that identified Richard's descendants, all of it is worthy of the highest praise. Hat-tips, too, to the Richard III Society, as well as Leicester's City Council, which pulled together to make the project happen and also to publicize the society and city so effectively.

However, should anyone today tell you that Richard's skeleton somehow vindicates his historical reputation, you may tell them they are talking horsefeathers.

Back from the grave, King Richard III gets rehab

Richard III got a rep for a reason. He usurped the Crown from a 12-year old boy, who later died.

This was his great crime, and there is no point denying it. It is true that before this crime, Richard was a conspicuously loyal lieutenant to the boy's father, his own brother, King Edward IV. It is also true that once he was king, Richard made a great effort to promote justice to the poor and needy, stabilize royal finances and contain public disorder.

But this does not mitigate that he stole the Crown, justifying it after the fact with the claim that his nephews were illegitimate. Likewise, it remains indisputably true that his usurpation threw English politics, painstakingly restored to some order in the 12 years before his crime, into a turmoil from which it did not fully recover for another two decades.

So the discovery of Richard's bones is exciting. But it does not tell us anything to justify changing the current historical view of Richard: that the Tudor historians and propagandists, culminating with Shakespeare, may have exaggerated his physical deformities and the horrors of Richard's character, but he remains a criminal king whose actions wrought havoc on his realm.

Unfortunately, we don't all want to hear that. Richard remains the only king with a society devoted to rehabilitating his name, and it is a trait of some "Ricardians" to refuse to acknowledge any criticism of their hero whatever. So despite today's discovery, we Brits are likely to remain split on Richard down the old lines: murdering, crook-backed, dissembling Shakespearean monster versus misunderstood, loyal, enlightened, slandered hero. Which is the truth?

Somewhere in between. That's a classic historian's answer, isn't it? But it's also the truth.

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Richard III still the criminal king

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