The ACN Morning Report Wednesday March 20, 2013

GOOD MORNING! TODAY IS WEDNESDAY MARCH 20, 2013. HERE ARE TODAY'S TOP AND MOST INTERESTING HEADLINES FROM ACN:

55 Killed In Iraq On Anniversary -- Ohio Gunman Mocks Victims' Families -- Senate Dems Drop Assault Weapons -- Cyprus Uncertainty Puts EU In Jeopardy -- Pentagon Bans 60MM Mortars After Deaths -- Contingency Plans Underway For Syria

ATTACK CLAIMS 55 LIVES ON IRAQ ANNIVERSARY

Baghdad (CNN) -- At least 55 people were killed and scores more wounded when bombs exploded across Iraq on Tuesday, a stark reminder of the violence and instability that grips the country 10 years after the start of the U.S.-led war.

The attacks -- 17 car bombs, seven roadside bombs, and two shootings -- ripped mostly through Shiite neighborhoods of Baghdad, but also struck Sunni communities in other towns. At least 187 people were wounded.

TEENAGE GUNMAN IN OHIO MOCKS VICTIMS' FAMILY 

Thomas Lane wore a T-shirt with KILLER scrawled in black ink during his sentencing Tuesday in an Ohio courtroom for shooting and killing three students in a high school cafeteria and wounding two others last year.

Mr. Lane, 18, was sentenced to three life sentences without parole. He pleaded guilty last month to opening fire on the morning of Feb. 27, 2012, with a .22-caliber Ruger semiautomatic pistol at Chardon High School while waiting for a bus to attend an alternative high school.

SENATE LEADERS DROP ASSAULT WEAPONS FROM GUN SAFETY BILL

Three months after the mass shooting of 20 children and six adults at a Connecticut elementary school outraged the nation, Senate Democratic leaders are dropping an assault-weapon ban from gun legislation.

While public opinion polls show most Americans support an assault-weapon ban, Senate Majority Leader Harry Reid said yesterday the proposal has fewer than 40 votes in the 100-member chamber. Its sponsor, California Democrat Dianne Feinstein, will be given a chance to offer the measure as an amendment to gun legislation that Democrats will introduce, second-ranking Democrat Dick Durbin told reporters.

EURO ON DEFENSIVE AS CYPRUS PARLIAMENT DISREGARDS BANK TAX, MARKETS EYE BERNANKE

(Reuters) - The euro was pinned near four-month lows against the U.S. dollar in Asia on Wednesday after Cyprus' rejection of bailout terms seemed to threaten default or even expulsion from the euro zone.

The general assumption in markets is that the European Union, as so often before, will hash out a last minute deal that keeps Cyprus in the single currency.

PENTAGON BANS 60 MM MORTAR ROUNDS 

HAWTHORNE, Nev. (AP) - A mortar shell explosion killed at least seven Marines and injured several more during mountain warfare training in Nevada's high desert, prompting the Pentagon to immediately halt the use of the weapons until an investigation can determine their safety, officials said Tuesday. The explosion occurred Monday night at the Hawthorne Army Depot, a sprawling facility used by troops heading overseas, during an exercise involving the 2nd Marine Expeditionary Force from Camp Lejeune, N.C. Several Marines from the unit were injured in the blast, authorities said.

COMMANDER: CONTINGENCY PLANS UNDERWAY FOR SYRIA

WASHINGTON (AP) -- The top U.S. military commander in Europe said Tuesday that several NATO countries are working on contingency plans for possible military action to end the two-year civil war in Syria as President Bashar Assad's regime accused U.S.-backed Syrian rebels of using chemical weapons.

The ACN Morning Report Tuesday March 19 2013

GOOD MORNING! TODAY IS TUESDAY MARCH 19TH 2013. HERE ARE TODAY'S MOST INTERESTING AND TOP STORIES FROM ACN:

Pope Francis Inauguration Mass -- Chemical Weapons In Syria? -- 10th Anniversary Of Iraq War -- Fl. Student Plotted Attack -- Hillary Clinton Comes Out On Gay Marriage -- Cyprus To Vote On Taxing Deposits -- The Bernanke Buzzkill -- NASA Curiosity Rover Suffers Glitch -- NYC Plan To "Hide" Tobacco 

Pope Francis Pleas For Poor At Inaugural Mass

Pope Francis has inaugurated his papacy at a Mass in Rome, calling on global leaders and all the people of the world to defend the poor and the weak.

Up to 200,000 people attended the Mass in St Peter's Square.

His homily focused on protection - of the environment, children, the elderly and those in need, who he said were "often the last we think about".

Francis was elected by a conclave of cardinals last week to take over from Benedict XVI.

Syria Says Rebel "Chemical Weapon" Attack Kills 6

www.chron.com

DAMASCUS, Syria (AP) — Syria's information minister says a chemical weapon fired by rebels on a village in the north of the country is the "first act" by the opposition interim government announced in Istanbul.

Omran al-Zoubi says the missile containing "poisonous gases" was fired from Nairab district in Aleppo into Khan al-Assal village on Tuesday.

He says 16 people were killed and 86 wounded in the attack. He spoke to the pro-government Al-Ikhbariya TV station.

On 10th Anniversary Of Iraq War 20 Killed, 96 Injured

BAGHDAD, March 19 (Xinhua) -- Up to 20 people were killed and more than 97 wounded in a series of bombings and shootings in central Iraq on Tuesday morning, the police said.

In Baghdad, eight car bombs ripped through crowded areas mainly in Shiite districts across the capital, killing a total of 15 people and wounding 73 others, an interior ministry source told Xinhua on condition of anonymity.

Also in the capital, two people were killed when two sticky bombs attached to their cars detonated in western and eastern Baghdad, while a third shot dead by gunmen in the southern part of Baghdad, the source said.

Meanwhile, a suicide bomber drove an explosive-laden truck into the entrance of an Iraqi army base in the town of Iskandariyah, some 50 km south of Baghdad, killing at least two people and wounding more than 10 others, a local police source anonymously told Xinhua.

Central Florida Student Plotted Attack On Other Students

FSU

Authorities say a University of Central Florida student who pulled a dorm fire alarm in the middle of the night had a more sinister plan than sending students scurrying out into the night.

Campus police said Monday that 30-year-old James Oliver Seevakumaran was armed with two guns, hundreds of rounds of ammunition, a backpack filled with explosives and a plan to attack other students as they fled the seven-story dorm where he lived.

His plans were thrown off by campus police officers' quick response to the fire alarm and a 911 call from Seevakumaran's roommate who had holed himself in a bathroom after Seevakumaran pointed a gun at him.

Hillary Clinton Comes Out On Gay Marriage

Former Secretary of State Hillary Clinton may not have declared whether she’s running for president in 2016, but her public declaration supporting gay marriage on Monday puts her on the same page with other potential Democratic candidates should she decide to run.

Clinton made the announcement in an online video released by the Human Rights Campaign. “LGBT Americans are our colleagues, our teachers, our soldiers, our friends, our loved ones, and they are full and equal citizens and deserve the rights of citizenship. That includes marriage. That’s why I support marriage for lesbian and gay couples. I support it personally and as a matter of policy and law,” she said. Clinton acknowledged her evolving position on the issue. “Like so many others, my views have been shaped over time by people I have known and loved, by my experience representing our nation on the world stage, my devotion to law and human rights, and the guiding principles of my faith.”

Cyprus Parliament Says Bank Levy Unlikely

A number of members of Cyprus's parliament have told CNBC that the legislation to tax bank deposits is unlikely to pass, a move that could potentially put the country into default.

Parliament is due to convene at 4 p.m. London time on Tuesday and despite the ruling party saying they will approve the proposal, several parties have said they will reject the levy. No single party has a majority in the 56-member chamber to push through the vote.

Fed Meeting: Bracing For Bernanke Buzzkill

Stocks are rallying, job growth is strengthening and a housing recovery is well underway -- but don't expect the Federal Reserve to back away from its stimulative policies just yet.

If anything, the Fed is likely to deliver a buzzkill after its two-day meeting wraps up Wednesday. Fed chairman Ben Bernanke will also address the state of the economy in a press conference following the release of the Fed's latest statement on interest rates and new economic forecasts.

Second Computer Glitch Stalls NASA's Mars Rover

NASA.Gov

Computerworld - After a computer glitch sidelined NASA's Mars rover Curiosity late last month, another problem has it down again.

NASA reported that Curiosity put itself into safe mode on Saturday after a software bug caused a command file to fail a size-check.

"This is a very straightforward matter to deal with," said Richard Cook, Curiosity's project manager. "We can just delete that file, which we don't need any more, and we know how to keep this from occurring in the future."

NASA said late on Monday that bringing Curiosity out of safe mode is expected to take a couple of days.

NYC Plan Would Keep Tobacco Products Hidden

AP

NEW YORK (AP) — Cigarettes would have to be kept out of sight in New York City stores under a first-in-the-nation plan unveiled by Mayor Michael Bloomberg on Monday, igniting complaints from retailers and smokers who said they've had enough with the city’s crackdowns.

Shops from corner stores to supermarkets would have to keep tobacco products in cabinets, drawers, under the counter, behind a curtain or in other concealed spots. Officials also want to stop shops from taking cigarette coupons and honoring discounts, and are proposing a minimum price for cigarettes, below what the going rate is in much of the city now, to discourage black market sales.

The Morning Report -- Saturday February 9, 2013

Boeing To Get Flight Test -- Stocks Soar On Optimism -- Mass. Nuclear Power Plant Loses Power -- Panetta Retires, Hagel Waits -- White House Warns Of Sequestration -- Asteroid Approaches Earth -- Hunt For LAPD Cop Hindered By Snow --  Nemo Strikes Northeast United States

BOEING 787 DREAMLINER  FLIGHT TEST TODAY

Boeing will begin flight tests of its 787 Dreamliner on Saturday morning to gather data on the battery system that has caused the in-service 787 fleet to be grounded, according to an inside source.

The plane that will fly Saturday is Dreamliner No. 5, one of six planes filled with measuring equipment that was used in the flight tests for the 787’s original Federal Aviation Administration (FAA) certification.

Ground tests were successfully completed on the jet Friday.

On Thursday, the FAA granted Boeing’s request to do test flights specifically to gather data on the battery performance in flight.

The FAA has imposed strict operating conditions on the test flights, requiring preflight inspections and in-flight monitoring of the battery system.

STOCKS END HIGH FOR SIXTH STRAIGHT WEEK

Reuters

(Reuters) - The Nasdaq composite stock index closed at a 12-year high and the S&P 500 index at a five-year high, boosted by gains in technology shares and stronger overseas trade figures.

The S&P 500 also posted a sixth straight week of gains for the first time since August.

The technology sector led the day's gains, with the S&P 500 technology index .SPLRCT up 1.0 percent. Gains in professional network platform LinkedIn Corp (LNKD.N) and AOL Inc (AOL.N) after they reported quarterly results helped the sector.

MASSACHUSETTS NUCLEAR POWER PLANT LOSES POWER

PLYMOUTH, Mass. — The Nuclear Regulatory Commission says a power plant in Massachusetts has lost power and shut down during a massive snowstorm.

The NRC says the Pilgrim Nuclear Power Plant in Plymouth experienced an automatic shutdown at around 9:15 p.m. Friday after losing off-site power. Spokesman Neil Sheehan says the plant has declared an unusual event, which is the lowest level of emergency classification.

Sheehan says that the reactor shut down without any problems and that backup generators are powering plant equipment.

The NRC says there’s no threat to public safety.

The shutdown came as a major snowstorm began clobbering the New York-to-Boston corridor, knocking out power to more than 300,000 customers in Massachusetts.

PANETTA RETIRES WHILE SUCCESSOR AWAITS VOTE

Reuters

(Reuters) - President Barack Obama bade a fond farewell to retiring Defense Secretary Leon Panetta at a ceremony on Friday and voiced strong support for his nominated successor, Chuck Hagel, who was attacked by Republicans at a contentious Senate confirmation hearing last week.

Panetta, in his 19 months as Pentagon chief, ended the ban on women serving in front-line combat roles and oversaw the integration of gays and lesbians serving openly in the military. The Iraq war ended and the lastAfghanistan "surge" troops came home on his watch.

But he may be remembered most for his work before he came to the Pentagon in July 2011, as the CIA director who helped oversee the raid earlier that year that killed Osama bin Laden.

WHITE HOUSE WARNS OF "DAMAGING" SEQUESTRATION SPENDING CUTS

Reuters

(Reuters) - The White House said on Friday that government spending cuts due to take effect March 1 would have harsh consequences for ordinary Americans and the U.S. economy, seeking to turn up pressure on Congress to come up with a plan to avoid what Washington calls "sequestration."

President Barack Obama said the spending cuts could weaken U.S. military preparedness.

"There is no reason, no reason for that to happen," Obama said at a farewell ceremony for Defense Secretary Leon Panetta.

"Putting our fiscal house in order calls for a balanced approach, not massive, indiscriminate cuts that could have a severe impact on our military preparedness," he said.

ASTEROID TO NARROWLY MISS EARTH

NASA

Astronomers are keeping a wary eye on a large asteroid expected to narrowly miss hitting Earth next Friday in the closest known approach of a dangerous cosmic object since NASA started tracking such debris.

National Aeronautics and Space Administration experts who plotted its trajectory are confident that the primordial rock, weighing an estimated 130,000 metric tons, will pass within "a remarkably close distance" of Earth, nearer than many orbiting communications satellites but far enough away to safely speed past the planet.

HUNT FOR LA COP LEADS TO SNOWY MOUNTAINS

BIG BEAR LAKE, Calif. –  The hunt for Christopher Dorner in the snow-covered San Bernardino Mountains is expected to resume at daybreak Saturday, when authorities hope clearer skies will allow airplanes to help them in their search.

Relentless snowfall on Friday grounded helicopters with heat-sensing technology and hampered their effort to find the former Los Angeles police officer suspected of going on a deadly rampage to get back at those he blamed for ending his career.

NORTHEAST SNOWED IN AS 'NEMO' HITS

BuzzFeed

BOSTON — A massive storm packing hurricane-force winds and blizzard conditions is sweeping through the Northeast, dumping nearly 2 feet of snow on New England and knocking out power to more than a half a million customers.

More than 23 inches of snow had fallen in parts of central Connecticut by early Saturday, and more than 21 inches covered Randolph in southeastern Massachusetts.

The National Weather Service says up to 3 feet of snow is expected in Boston, threatening the city's 2003 record of 27.6 inches.

Dow Tops 14,000

The Dow Jones industrial average jumped more than 149 points, or 1.1%, to hit 14,009.8, its highest closing level since Oct. 12, 2007. The Dow is now less than 200 points from its all-time high of 14,198.10.

The S&P 500 rose 1% and is also at its highest level since 2007 -- about 4% away from its record high. The Nasdaq gained 1.2%.

Despite the day's big gains, stocks ended modestly higher for the week. The Dow gained 0.8%, the S&P 500 increased 0.6% and the Nasdaq climbed 0.9%.

Friday's strong advance followed reports on the job market, the manufacturing sector, construction spending and consumer sentiment, which all pointed to a healthy economic recovery.

Read more from CNN Money: http://money.cnn.com/2013/02/01/investing/stocks-markets/index.html?iid=mkt_SF_news

The Morning Report -- Wednesday January 30, 2013

Twinkies Saved? -- Home Prices Surge -- Consumer Confidence Collapses -- No More NFL? -- LaHood Leaves Obama Cabinet -- Senate Confirms Kerry  -- Should The Queen Retire? -- Fox News Crashes -- Man Kidnaps Child, AL 

HOSTESS PICKS APOLLO, METROPOULOS AS LEAD CAKES BID

AP

(Bloomberg) -- Hostess Brands Inc., the bankrupt maker of Wonder bread and Twinkies, picked the team of Apollo Global Management LLC and C. Dean Metropoulos & Co. as the lead bidder for its cake brands, said two people with knowledge of the matter.

The assets include some facilities, said one of the people, who asked not to be identified because the process is private. The offer becomes the so-called stalking horse for an auction of the cakes business, meaning it sets the standard that other suitors have to beat. Hostess’s cake products include CupCakes, Ding Dongs and Ho Hos.

HOME PRICES SURGE MORE THAN 5%, MOST SINCE 2006

Home prices rose in November, climbing more than 5 percent from a year ago, in the biggest increase since August 2006, when the housing market was just starting to collapse.

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A separate economic report issued Tuesday, on consumer confidence in the United States, held less encouraging data, with moods falling to their lowest level in more than a year as Americans grew more pessimistic about the economic outlook and their financial prospects. In the latest sign that the housing sector is on the mend, the Standard & Poor’s/Case Shiller composite index of home prices in 20 metropolitan areas gained 0.6 percent in November, on a seasonally adjusted basis, in line with economists’ forecasts.

CONSUMER CONFIDENCE COLLAPSES

BERNARD POLLARD: NFL WON'T LAST

NEW ORLEANS - Bernard Pollard is known for hard hits (just ask the New England Patriots), and he leveled one at the NFL this week when he predicted the league wouldn't be around in 30 years, because the crackdown on ferocious hits will turn off fans.

On Tuesday, at Super Bowl XLVII media day, the Baltimore Ravens safety didn't back down.

"There's a car crash every play," he said. "Those helmets are popping, those pads are hitting. This is a grown man's game.

"I stand by what I said. I'm entitled to my own opinion. I play this game. I understand this game. For me, growing up, to see where the game has gone from then to now, it's a very special game, but it's changing."

LAHOOD: IT'S TIME FOR ME TO MOVE ON

AP

Washington — Transportation Secretary Ray LaHood — who championed funding for Detroit's M-1 light rail project and oversaw key auto regulations — is stepping down after four years.

"I love this job. It's the best job I've ever had in government, in public service," LaHood said in a Detroit News interview Tuesday, noting he made the tough decision after talking to his wife of 45 years.

"It's time for me to move on," said LaHood, 67. "I do it with some reluctance and a great deal of satisfaction."

SENATE CONFIRMS KERRY

AP

The Senate confirmed President Barack Obama’s nomination of Sen. John Kerry, D- Mass, to be secretary of state Tuesday. The vote was 94 to 3, with three Republicans – Sen. Ted Cruz, R-Texas, Sen. John Cornyn, R-Texas, and Sen. Jim Inhofe, R-Okla. – voting against him.

“Sen. Kerry has a long history of liberal positions that are not consistent with a majority of Texans,” said Cornyn spokesman Drew Brandewie.

Kerry stood on the Senate floor as his colleagues voted on his confirmation. Kerry himself voted "present."

SHOULD THE QUEEN RETIRE AND GIVE THE CROWN TO CHARLES?

Queen Beatrix of the Netherlands announced Monday that she would be stepping down in April to allow her son to take the throne, but don't expect Queen Elizabeth do to the same, experts say. 

Beatrix, who turns 75 on Thursday, took to Dutch television to announce her abdication in favour of her eldest son, Crown Prince Willem-Alexander, 45. 

FOX NEWS RATINGS HIT 12 YEAR LOWS

At the end of each month, cable news ratings are released to the public. And, like clockwork, Fox News dominates the top 13 or so programs, far outstripping its competitors.

January was ... a little different. To be sure, everything is relative in cable news: Fox News still had nine out of the top 10 programs. It has spent 11 consecutive years as the top-rated cable news channel. Its 6 a.m. show drew almost double the ratings of CNN's top-ranking prime time show.

MAN FATALLY SHOOTS SCHOOL BUS DRIVER, KIDNAPS SON IN ALABAMA

AP

MIDLAND CITY, Ala. –  Authorities in southeastern Alabama say a man boarded a school bus, fatally shot the driver, then removed a 6-year-old passenger and ran.

The Dale County Sheriff told WBMA-TV that the suspect shot the driver in Midland City several times after he refused to let the child off the bus Tuesday afternoon. The driver later died of his wounds.

It is unclear how many other students were aboard the bus at the time, though WSFA.com reports that several children on the bus witnessed the man shoot the driver take the young boy away.

Is Apple A Broken Stock?

Is Apple Inc. (AAPL) a broken stock? It's not that Apple isn't making money. After all it made $13.1 billion last quarter. By some counts that's the largest non oil corporate earnings ever.

And it's not that it can't generate huge revenue growth. They told their investors it increased it's $54.5 billion sales by 18% last year.

Read more at Quartz Magazine.

The Morning Report - Friday January 25, 2013

Al Qaeda Operative Killed -- Mentally Ill Man 'Tortured' -- Microsoft Surprises -- VA  & The Electoral College -- Senate To Vote On Sandy Aid -- Gun Ban Measure Introduced -- Brown Signals Historical CA -- 

KEY AL QAEDA FIGURE KILLED BY DRONE

AP

SANAA, Yemen — Al-Qaida's No. 2 in Yemen died in a U.S. drone attack last year in southern Yemen, the country's official news agency and a security official said Thursday.

Saeed al-Shihri, a Saudi national who fought in Afghanistan and spent six years in the U.S. military prison at Guantanamo Bay, was wounded in a missile attack in the southern city of Saada on Oct. 28, according to SABA news agency.

MOM PLANS PROTEST OVER 'TORTURE' OF MENTALLY ILL SON

PNG

A mother whose adult son is being detained in a criminal psychiatric hospital for a crime six years ago is planning to live in a box at the Vancouver Art Gallery for nine days and nights to draw attention to what she calls the “torture” he endures there.

Chahna Verney said her son, Ben, (she doesn’t want his last name published) has been held for almost four years at B.C.’s Forensic Psychiatric Hospital, where he has spent “the vast majority of his time locked up in an isolation cell.”

MICROSOFT REPORTS RECORD REVENUE IN 2ND QUARTER

REDMOND, Wash. — Jan. 24, 2013 — Microsoft Corp. today announced quarterly revenue of $21.46 billion for the quarter ended December 31, 2012. Operating income, net income, and diluted earnings per share for the quarter were $7.77 billion, $6.38 billion, and $0.76 per share.

These financial results reflect the net deferral of revenue for the Windows Upgrade Offer, Office Upgrade Offer and Pre-sales, and the Entertainment and Devices Division Video Game Deferral, partially offset by the recognition of previously deferred revenue for Windows 8 Pre-sales. The following table reconciles these financial results reported in accordance with generally accepted accounting principles (GAAP) to non-GAAP financial results. We have provided this non-GAAP financial information to aid investors in better understanding the company’s performance.

VIRGINIA STATE SENATE MOVES AHEAD WITH ELECTORAL-COLLEGE RIGGING BILL

Getty Images

These guys are swiftly becoming my favorite state legislative body. From the AP:

Virginia's Republican-ruled legislature has taken the first steps toward ending the state's winner-takes-all system of apportioning its 13 presidential electoral votes. A Senate subcommittee recommended Sen. Bill Carrico's bill on Wednesday on a 3-3 party line vote.

SENATE SETS SANDY AID RELIEF VOTE FOR MONDAY

AP

WASHINGTON — The Senate is set to vote Monday on a $50.5 billion emergency relief bill to help victims of Superstorm Sandy.

Northeast lawmakers from both parties hope to win Senate approval of the measure and send it to President Barack Obama, who has said he would sign it. The House passed it last week.

SENATOR FEINSTEIN ROLLS OUT GUN BAN MEASURE

Getty Images

Washington -- - Nearly two decades after she championed a nationwide ban on assault weapons, California Sen. Dianne Feinstein and other Democratic lawmakers rolled out a new ban on military-style rifles Thursday in the wake of the mass shooting last month at a Connecticut elementary school.

The measure, proposed more than eight years after the 1994 ban expired, would prohibit 157 rifles, including the Bushmaster XM-15 that Adam Lanza used in the attack on Sandy Hook Elementary School in Newtown, Conn., that killed 20 children and six adults. It also would outlaw ammunition magazines with a capacity above 10 rounds.

BROWN DELIVERS UPBEAT STATE OF THE STATE

Sacramento -- - Gov. Jerry Brown, riding a wave of remarkable political success from the first two years of his term in office, delivered a State of the State speech Thursday that cast California as being on the cusp of an era akin to the grand times of state history.

It was the kind of optimistic and enthusiastic address to the people of California that was not possible when Brown came into office two years ago facing a nearly $26 billion deficit.

The Morning Report -- Saturday January 19, 2013

Most Support NRA -- Republicans Pick Battles -- Obama Speech Challenges -- CA Job Growth Slows -- US Economy Grows 

DESPITE RECENT CRITICISMS MOST SUPPORT NRA, POLL SHOWS

While the National Rifle Association takes a beating daily in the media, a recent poll shows a majority of Americans still support the nation's leading gun-rights group. Gallup polling shows 54 percent of Americans have a favorable opinion of the NRA. Thirty-eight percent have an unfavorable opinion. 

Read more: http://www.foxnews.com/politics/2013/01/18/majority-supports-nra-despite-recent-criticism-poll-shows/#ixzz2IPiBNNNk

REPUBLICANS THINK SEQUESTRATION IS BETTER FIGHT

WILLIAMSBURG, Va. — Republicans are diving into a strategy to resolve the debt ceiling standoff that they believe will maximize their leverage in the upcoming fiscal fights and show they’re not trying to plunge the nation into default. At their three-day retreat here, the GOP regrouped following the fiscal cliff crisis and decided to move forward next week with a bill to lift the debt cap — with a demand the Senate pass a budget or dock the pay of lawmakers.

Read more: http://www.politico.com/story/2013/01/republicans-sequestration-fight-86425.html#ixzz2IPiZJnoL

FOR OBAMA, SECOND INAUGURAL SPEECH IS SPECIAL CHALLENGE

(Reuters) - Four years ago, his challenge was to cut through what he called the "gathering clouds and raging storms" of an economic recession.

When President Barack Obama gives his second inaugural address outside the U.S. Capitol on Monday, the road ahead for him and his presidency is no less challenging. Battles with Republicans loom over federal spending, taxes, the government's debt limit, gun control and immigration.

Read more: http://www.reuters.com/article/2013/01/18/us-usa-inauguration-speech-idUSBRE90H1AF20130118

CALIFORNIA JOB GROWTH SLOWS IN DECEMBER; PAYROLLS SHRINK

After adding jobs at a steady clip through most of last year, California's employment engine lost steam in December as employers reduced payrolls by 17,500 net positions.

The unemployment rate remained unchanged at 9.8% last month, according to figures released Friday by the state's Employment Development Department.

The loss of payroll jobs in December ends a seven-month streak in the Golden State.

Read more: http://www.latimes.com/business/la-fi-california-jobs-20130119,0,4247208.story

US ECONOMY GROWS BY 155,000 JOBS IN DECEMBER

WASHINGTON (AP) — Holiday shopping, strong auto sales and a recovering housing market helped boost the U.S. economy from the middle of November through early January, according to a Federal Reserve survey released Wednesday.

The Fed said 12 of its regional banking districts reported "modest or moderate" growth in the final weeks of 2012. Of those, only St. Louis said growth had slowed from the previous survey, which covered October through early November.

Read more: http://www.google.com/hostednews/ap/article/ALeqM5hR-RgtCK_lfFKGR5_WqOXE-QBA_g?docId=d685669f01934b37abf433d9842f1e56

AROUND THE WORLD

European regulators ground the Boeing 787 Dreamliner

LONDON -- European air-safety officials followed their American counterparts’ lead Thursday by grounding Boeing 787 Dreamliner jumbo jets after a series of worrisome incidents aboard the new aircraft.

The European Aviation Safety Agency, or EASA, announced that it was adopting the Federal Aviation Administration's directive, issued Wednesday, ordering all 787s taken out of service. Jeremie Teahan, a spokesman for the EASA, said the action was taken "to ensure the continuing airworthiness of the European fleet." 

Read more: http://www.latimes.com/news/world/worldnow/la-fg-wn-european-regulators-ground-the-boeing-787-dreamliner-20130117,0,2662539.story

BUSINESS

Stocks Mixed, But S&P 500 Hits Five-Year High

The S&P 500 climbed 5 points, or 0.3%, to 1,486, bringing its gain to 0.95% this week. Surprisingly bleak U.S. consumer confidence and a lagging technology sector weighed on the markets. Still, the S&P 500 is at its highest close since Dec. 26, 2007.

The Dow Jones Industrial Average closed up 54 points, or 0.4%, to 13,650. The blue-chip index gained 1.2% for the week and finished up six of the past seven days.

Read more: http://www.thestreet.com/story/11816929/1/stock-market-story-jan-18.html?cm_ven=GOOGLEN

Dow, S&P 500 close at 5-year highs

After a mostly flat trading day, the Dow and S&P 500 climbed during the last hours of trading Friday to finish the week at their highest levels since December 2007. CNN Money has more.