AP source: Armstrong-Oprah interview 'emotional'


AUSTIN, Texas (AP) — Lance Armstrong's interview with Oprah Winfrey was "emotional at times," according to a person familiar with the situation, and it followed an apology to the staff at the Livestrong Foundation that left some of them in tears.


The person spoke on condition of anonymity and would neither confirm nor deny that the disgraced cyclist confessed to using performance-enhancing drugs during the taping, which is scheduled to be broadcast Thursday night and is supposed to remain confidential until then.


A group of about 10 close friends and advisers to Armstrong left a downtown Austin hotel about three hours after they arrived Monday afternoon for the interview. Among them were Armstrong attorneys Tim Herman and Sean Breen, along with Bill Stapleton, Armstrong's longtime agent, manager and business partner. All declined comment entering and exiting the session.


Soon afterward, Winfrey tweeted: "Just wrapped with (at)lancearmstrong More than 2 1/2 hours. He came READY!" She was scheduled to appear on "CBS This Morning" on Tuesday to discuss the interview.


Armstrong stopped at the Livestrong Foundation, which he founded, on his way to the interview and said, "I'm sorry" to staff members, some of whom broke down in tears. A person with knowledge of that session said Armstrong choked up and several employees cried during the session.


The person also said Armstrong apologized for letting the staff down and putting Livestrong at risk but he did not make a direct confession to using banned drugs. He said he would try to restore the foundation's reputation, and urged the group to continue fighting for the charity's mission of helping cancer patients and their families.


Armstrong spoke to a room full of about 100 staff members for about 20 minutes, expressing regret for everything the controversy has put them through, the person said. He told them how much the foundation means to him and that he considers the people who work there to be like members of his family. None of the people in the room challenged Armstrong over his long denials of doping.


Winfrey and her crew had earlier said they would film Monday's session at Armstrong's home. As a result, local and international news crews were encamped near the cyclist's Spanish-style villa before dawn.


Armstrong still managed to slip away for a run despite the crowds outside his home. He returned by cutting through a neighbor's yard and hopping a fence.


During a jog on Sunday, Armstrong talked to the AP for a few minutes saying, "I'm calm, I'm at ease and ready to speak candidly." He declined to go into specifics.


Armstrong lost the Tour titles he won from 1999 to 2005 following a voluminous U.S. Anti-Doping Agency report that portrayed him as a ruthless competitor, willing to go to any lengths to win the prestigious race. USADA chief executive Travis Tygart labeled the doping regimen allegedly carried out by the U.S. Postal Service team that Armstrong once led, "The most sophisticated, professionalized and successful doping program that sport has ever seen."


Yet Armstrong looked like just another runner getting in his roadwork when he talked to the AP, wearing a red jersey and black shorts, sunglasses and a white baseball cap pulled down to his eyes. Leaning into a reporter's car on the shoulder of a busy Austin road, he seemed unfazed by the attention and the news crews that made stops at his home. He cracked a few jokes about all the reporters vying for his attention, then added, "but now I want to finish my run," and took off down the road.


The interview with Winfrey was Armstrong's first public response to the USADA report. Armstrong was not expected to provide a detailed account about his involvement, nor address in depth many of the specific allegations in the more than 1,000-page USADA report.


In a text to the AP on Saturday, Armstrong said: "I told her (Winfrey) to go wherever she wants and I'll answer the questions directly, honestly and candidly. That's all I can say."


After a federal investigation of the cyclist was dropped without charges being brought last year, USADA stepped in with an investigation of its own. The agency deposed 11 former teammates and accused Armstrong of masterminding a complex and brazen drug program that included steroids, blood boosters and a range of other performance-enhancers.


Once all the information was out and his reputation shattered, Armstrong defiantly tweeted a picture of himself on a couch at home with all seven of the yellow leader's jerseys on display in frames behind him. But the preponderance of evidence in the USADA report and pending legal challenges on several fronts apparently forced him to change tactics after more a decade of denials.


He still faces legal problems.


Former teammate Floyd Landis, who was stripped of the 2006 Tour de France title for doping, has filed a federal whistle-blower lawsuit that accused Armstrong of defrauding the U.S. Postal Service. The Justice Department has yet to decide whether it will join the suit as a plaintiff.


The London-based Sunday Times also is suing Armstrong to recover about $500,000 it paid him to settle a libel lawsuit. On Sunday, the newspaper took out a full-page ad in the Chicago Tribune, offering Winfrey suggestions for what questions to ask Armstrong. Dallas-based SCA Promotions, which tried to deny Armstrong a promised bonus for a Tour de France win, has threatened to bring yet another lawsuit seeking to recover more than $7.5 million an arbitration panel awarded the cyclist in that dispute.


The lawsuit most likely to be influenced by a confession might be the Sunday Times case. Potential perjury charges stemming from Armstrong's sworn testimony in the 2005 arbitration fight would not apply because of the statute of limitations. Armstrong was not deposed during the federal investigation that was closed last year.


Many of his sponsors dropped Armstrong after the damning USADA report — at the cost of tens of millions of dollars — and soon after, he left the board of Livestrong, which he founded in 1997. Armstrong is still said to be worth about $100 million.


Livestrong might be one reason Armstrong has decided to come forward with an apology and limited confession. The charity supports cancer patients and still faces an image problem because of its association with Armstrong. He also may be hoping a confession would allow him to return to competition in the elite triathlon or running events he participated in after his cycling career.


World Anti-Doping Code rules state his lifetime ban cannot be reduced to less than eight years. WADA and U.S. Anti-Doping officials could agree to reduce the ban further depending on what information Armstrong provides and his level of cooperation.


___


AP Sports Columnist Jim Litke contributed to this report.


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Gas prices holding steady in RI






PROVIDENCE, R.I. (AP) — Prices at the pump in Rhode Island are holding steady.


AAA Southern New England said Monday that the average cost of a gallon of regular gasoline is $ 3.53, the same as last week.






Prices in Rhode Island are up two cents in the last month. The current local per-gallon average is 23 cents above the national average of $ 3.30.


Rhode Islanders were paying an average of $ 3.48 a gallon a year ago this week.


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Are gun curbs just symbolism?







STORY HIGHLIGHTS


  • Gun violence recommendations are expected from Vice President Biden on Tuesday

  • The proposals are expected to contain substantive and symbolic ideas to curb gun violence

  • Presidents use symbolism to shift public opinion or affect larger political or social change




Washington (CNN) -- The pictures told the story: Vice President Joe Biden looked solemn, patrician and in control as he sat at a long table in the White House, flanked by people on both sides of the gun control issue.


The images conveyed a sense that the White House was in command on this issue.


And that's the point. Historically, presidential administrations have used symbolic imagery—at times coupled with marginal actions—to shift public opinion or affect larger political or social change.


"Politics is a risk taking project," said Julian Zelizer, a Princeton University historian and CNN contributor. "They put together these commissions in response to some crisis. You try a hundred things and hope something works."


On the eve of the Biden-led gun control task force recommendations to President Barack Obama, political experts say it is important that his administration sends a clear signal that it has things in hand.


That is especially critical in what will likely be an uphill battle to push specific changes, like an assault weapons ban, as part of a broader effort on gun control.


The first move in the image battle will be to appear to move quickly and decisively.


"You have to give the Obama administration credit for one thing: They've learned from history to do things quickly," Larry Sabato, director of the University of Virginia's Center for Politics, said of previous task force initiatives that fizzled.








In 2010, Obama appointed a bipartisan commission headed by former Republican Sen. Alan Simpson of Wyoming and Erskine Bowles, a former Democratic White House chief of staff, to come up with a proposal to balance the budget and cut the debt.


Like the gun task force, Simpson-Bowles reviewed current regulations, gathered input from the public and engaged in tense internal conversations. But after months of working on a proposal—a blend of steep revenue increases and spending cuts—the group struggled to agree to a solution. The president did not take up the recommendations.


Obama largely avoided the issue of gun control during his first term.


He wrote an opinion piece two months after the 2011 assassination attempt on Rep. Gabrielle Giffords of Arizona, acknowledging the importance of the Second Amendment right to bear arms. In the piece he also called for a focus on "effective steps that will actually keep those irresponsible, law-breaking few from getting their hands on a gun in the first place."


But in the aftermath of that shooting and as the election season loomed, the Justice Department backed off from a list of recommendations that included a measure designed to help keep mentally ill people from getting guns.


For now, at least, there is a sense in Washington that the Newtown, Connecticut, school shooting where 26 people -- 20 of them young children -- were slaughtered could lead to meaningful legislative reform.


Public opinion would seem to suggest that the White House efforts are well timed.


In the month since the massacre, a new poll showed the percentage of Americans who said they were dissatisfied with America's gun laws has spiked.


The Gallup survey released on Monday showed 38% of Americans were dissatisfied with current gun regulations, and wanted stricter laws. That represented 13-point jump from one year ago, when 25% expressed that view. "You want to strike while the iron is hot," Sabato said. "We Americans have short attention spans and, as horrible as the Newtown shooting was, will anyone be surprised if we moved along by spring?"


The White House has since worked overtime to show it considers gun control an urgent matter.


The vice president has spent the last week meeting with what the White House calls "stakeholders" in the gun control debate.


On Monday, Biden was to meet with members of a House Democratic task force on guns, along with Attorney General Eric Holder, Homeland Security Secretary Janet Napolitano, and Kathleen Sebelius, the secretary of Health and Human Services.


In a series of face to face discussions on Thursday, Biden sat down with the National Rifle Association and other gun owners groups before conferring with representatives from the film and television industry.


In a sign the White House is prepared to move aggressively on its proposals, Biden made public comments just before meeting with the National Rifle Association, the country's most powerful gun lobby.


"Putting the vice president in charge of (the task force) and having him meeting with these groups is intended to show seriousness and an effort to reach out and respond to concerns and wishes of various groups," said Alan Abramowitz, a political science professor at Emory University.


Still, the NRA expressed disappointment in its discussion with Biden and later released a statement that accused the administration of mounting "an agenda to attack the Second Amendment."


Organizations seeking tougher gun control laws insist an assault weapons ban is critical to addressing the nation's recent rash of mass shootings. However, such a ban could be difficult in a Congress mired in gridlock.


"The bully pulpit is limited. It's hard for the president to sustain that momentum," Zelizer said of the White House's gun control efforts after the Newtown shootings. "The thing about symbolism is, like the shock over Newtown, they fade quickly."


CNN's Jim Acosta and Kevin Liptak contributed to this report






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Witness: Joliet slaying victim told 'you ain't going home tonight'




















Two men and two women are due in court for killing and robbing two of their friends.




















































Friends and relatives of the victims of last week’s double homicide in Joliet gathered outside the Will County Courthouse this afternoon, asking that the alleged killers be brought to justice.


Eric Glover, 22, and Terrence O. Rankins, 22, were found strangled last week in a home on the 1100 block of North Hickory Street. Police officials said robbery appeared to be the motive for the slayings.


The four defendants -- Adam Landerman, 19; Alisa R. Massaro, 18; Bethany L. McKee, 18; and Joshua F. Miner, 24 -- each face first-degree murder charges and remain in custody on $10 million bond. Landerman is the son of a Joliet police officer. When the suspects were arrested Thursday afternoon, three of them were partying inside the home, officials have said.








Outside the courtroom this afternoon, friends of the victims said Rankins and Glover were called to the home by the women charged with their murders.


Casey Smith said Rankins called him Wednesday night and that Rankins had joked with him that the women were telling him and Glover that they had been “kidnapped.”


“He said they told him you ain’t going home tonight,” Smith recalled, adding that Rankins thought it was a joke. “They said you’re kidnapped and you ain’t going home.”


Smith said he tried calling Rankins multiple times later that same night, but no one answered.


Will County State’s Attorney James Glasgow said he will personally prosecute the case. Pointing to the “heinous” violence in this case, Glasgow said he felt it was something that was “the responsibility of the elected prosecutor to prosecute.”


A Will County judge set a  preliminary hearing for the case for Feb. 5. Glasgow said he expects to present the case to a grand jury before that date.


triblocalfeedback@tribune.com


Twitter: @TribLocal






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West African army chiefs to approve Mali troops plan


BAMAKO (Reuters) - West African defense chiefs will on Tuesday approve plans to speed up the deployment of African troops against Islamist rebels in northern Mali, with some regional soldiers seen arriving next week.


France has already poured hundreds of troops into Mali and carried out days of air strikes in a vast desert area seized last year by an Islamist alliance that combines al Qaeda's north African wing AQIM with Mali's home-grown MUJWA and Ansar Dine rebel groups.


Western and regional powers are concerned the insurgents will use Mali's north as a launchpad for international attacks.


"On January 15, the committee of Chiefs of Defense Staff will meet in Bamako to approve the contingency plan," the mission head of the ECOWAS grouping of West African states, Aboudou Toure Cheaka, told Reuters.


"I can tell you that in one week, the troops will effectively be on the ground," he said, adding their immediate mission would be to help stop the rebel advance while preparations for a full intervention plan continued.


He did not say how many soldiers would arrive.


The original timetable for the 3,300-strong U.N.-sanctioned African force - backed by western logistics, money and intelligence services - did not initially foresee full deployment before September due to logistical constraints.


Senegal, Burkina Faso, Niger, Nigeria and Guinea have all offered troops. But regional powerhouse Nigeria, which is due to lead the mission, has cautioned that even if some troops arrive in Mali soon, training will take more time.


The plan is being fast-tracked after France rushed to respond to a plea for help by Mali's government after mobile columns of Islamist fighters last week threatened the central garrison towns of Mopti and Sevare, with its key airport.


The French defense ministry said on Monday it aimed to deploy some 2,500 soldiers to Mali to bolster the Malian army and the eventual West African force.


"SAFEGUARD MALI"


French Prime Minister Jean-Marc Ayrault said France's goals were to stop the Islamist rebels, to "safeguard the existence of Mali" and pave the way for the African-led military operation.


U.S. officials said Washington was sharing information with French forces in Mali and considering providing logistics, surveillance and airlift capability.


"We have made a commitment that al Qaeda is not going to find anyplace to hide," U.S. Defense Secretary Leon Panetta told reporters as he began a visit to Europe.


As French aircraft bombarded mobile columns of Islamist fighters, other insurgents launched a counter-attack further to the south, dislodging government forces from the town of Diabaly, 350 km (220 miles) from Bamako.


French intervention has raised the threat for eight French hostages held by al Qaeda allies in the Sahara and for 30,000 French expatriates living in neighboring, mostly Muslim states. Concerned about reprisals at home, France has tightened security at public buildings and on public transport.


The U.N. said an estimated 30,000 people had fled the latest fighting in Mali, joining more than 200,000 already displaced.


U.N. Secretary-General Ban Ki-moon on Monday welcomed the French-led military intervention in Mali and voiced the hope that it would halt the Islamist assault.


Amnesty International said at least six civilians were killed in recent fighting in the town of Konna, where French aircraft had earlier bombarded rebel positions, and called on both sides to spare non-combatants.


France, which has repeatedly said it has abandoned its role as the policeman of its former African colonies, is among the toughest proponents of a speedier deployment of the African troops, and convened a U.N. Security Council meeting Monday to discuss the crisis.


French U.N. Ambassador Gerard Araud told reporters after the meeting that the U.S., Canada, Belgium, Denmark and Germany had also offered logistical support for France's Mali operation.


"I felt that all the members of the Security Council were expressing their support (for) and understanding of the French decision," Araud told reporters.


No Europeans or other African Union members will be allowed in the defense chiefs meeting in Bamako on Tuesday, a western diplomat told Reuters, requesting not to be named.


"They don't want any French pressure at the meeting," the diplomat said.


(Reporting by Bate Felix; Additional reporting by Michelle Nichols and Louis Charbonneau at the United Nations Richard Valdmanis in Dakar, Brian Love in Paris and David Alexander in Lisbon; Editing by Richard Valdmanis and Giles Elgood)



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Getting comfortable with living on the edge


LONDON (Reuters) - Just as you learn to put up with a nagging toothache, this week is expected to provide fresh evidence that the U.S. economy is getting used to life on the edge of the fiscal cliff.


Of course, putting off that trip to the dentist is not necessarily wise. The longer Washington delays, the more painful it will become to narrow its gaping budget deficit.


But surveys of U.S. consumer confidence in January and of house builder sentiment in December are likely to show resilience, buttressing the argument of equity bulls that Wall Street's firm start to the year is more than a relief rally or a desperate search for higher returns on investment.


Bluford Puttnam, chief economist of CME Group, said the U.S. economy had managed to grow almost 2 percent last year and create about 1.8 million jobs despite stagnation in Europe, a slowdown in China and the deadlocked budget talks.


"So I see a lot of momentum going into 2013," Puttnam said. "If we can get past this fiscal cliff, the economy is poised to have a much more confident year."


Despite fiscal tightening, he said growth could reach 2.5 percent to 3.0 percent.


Puttnam said the next rounds in the budget battle later this quarter would again be bitterly fought and the resolution would again satisfy no one. But, as with the showdown at the end of 2012, the economy would quickly move on.


"There is a one-in-ten chance that the government may even shut down for a week. It's just going to be ugly. And then it will be over. There will be some kind of compromise, and by April it will fade quickly into the background," he said.


THREE GORGES


U.S. retail sales are likely to have increased only 0.2 percent in December, dampened by the budget worries, according to economists polled by Reuters.


But a pair of regional Federal Reserve surveys and the monthly Reuters/University of Michigan consumer poll are projected to improve, while housing starts, new building permits and builders' confidence should all show that the housing recovery stands on firm foundations.


"That's what's really encouraging consumers to feel that the economy is getting better and that the momentum is broadly positive," said Jerry Webman, chief economist at OppenheimerFunds in New York.


While the phrase fiscal cliff used by U.S. Federal Reserve chief Ben Bernanke conjured up an image of an immediate plunge at the start of this year, in truth any austerity was always likely to take effect on the economy gradually.


Bank of America Merrill Lynch describes the challenges the United States faces in coming months rather as three fiscal gorges it must leap over.


The government could hit the debt ceiling approved by Congress as early as mid-February; across-the-board spending cuts are due to kick in on March 1; and the ‘continuing resolution' to fund all discretionary government spending expires on March 27.


Ideally, investors would like Democrats and Republicans to resolve all three issues with an overarching agreement to slash the deficit by $4 trillion over the next decade.


Instead, given the dysfunctional state of politics, Webman said the best that could be hoped for was another short-term fix that cuts spending and ends some tax breaks.


"The U.S. doesn't move by grand bargains, by big deals. We move by incremental decisions, and I think we'll make some imperfect but improved decisions over the course of 2013," he said.


CHINA ON THE MEND, EUROPE EERILY CALM


Encouraging economic news from China, including stronger-than-expected exports and imports in December, has also supported the start-of-year move by financial market investors out of cash and into riskier assets.


Figures on Friday are expected to show that the world's second-largest economy grew 7.8 percent from a year earlier, rebounding from the 7.4 percent pace of the third quarter and further allaying fears of a hard landing.


"Given some of the bearish commentary on China a few months ago, this should be a relief for markets and it's good for the world economy," said Derry Pickford, macro analyst at investment managers Ashburton in London.


Continuing calm in the euro zone has also helped equities, even though full-year German GDP data on Tuesday will serve as a reminder of the area's economic malaise.


Europe's largest economy contracted last quarter as factories slashed output in response to weak demand from Germany's neighbors, the Economy Ministry said on Friday.


At a news conference a day earlier, European Central Bank President Mario Draghi said he expected a recovery in euro zone growth later this year. But he ruled out an early end to the ECB's crisis policy measures and cautioned that risks were still tilted to the downside. Markets shrugged.


In Europe as in the United States, investors seem to have got used to high levels of policy uncertainty, said Ethan Harris, chief U.S. economist at Bank of America Merrill Lynch.


"It appears that the markets will look past brinkmanship moments unless policy makers break new ground," he said.


In Europe, that might mean not just threatening to eject Greece from the euro zone but actually forcing the exit. In the United States, that might mean not just threatening to violate the debt ceiling but actually doing so, Harris said in a report.


As long as such extreme events do not occur, Harris expects periodic swoons in confidence but no acute crisis.


"This renewed resilience is important because we expect many brinkmanship moments in the months ahead. A now-regular pattern has been established where deals are only struck at the last minute and often under market pressure," he wrote.


(Editing by Patrick Graham)



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Vereen's 2 TDs lead Pats to 17-13 halftime lead


FOXBOROUGH, Mass. (AP) — Shane Vereen scored two touchdowns, Wes Welker had 120 yards receiving and the New England Patriots overcame a 94-yard return by Danieal Manning on the opening kickoff to take a 17-13 lead over the Houston Texans at halftime of their AFC divisional playoff game Sunday.


Shayne Graham kicked a 55-yard field goal on the final play of the half after a short punt by Zoltan Mesko gave the Texans the ball at their 38-yard line.


The Patriots got little help from running back Danny Woodhead and tight end Rob Gronkowski, who left with injuries.


Woodhead hurt his thumb after carrying the ball on the Patriots' first offensive play and Gronkowski went to the locker room with an arm injury midway through the period. Gronkowski was playing his second game since breaking his left forearm


Vereen scored on a 1-yard run with 1:28 left in the first quarter after Graham opened the scoring with a 27-yard field goal.


Stephen Gostkowski gave the Patriots (12-4) a 10-3 lead with a 31-yard field goal on the first series of the second quarter. They went ahead 17-3 as Tom Brady threw to a wide-open Vereen, who easily ran into the end zone for an 8-yard touchdown reception.


But the Texans (13-4) made it 17-10 with 1:15 left in the half on a 1-yard run by Arian Foster, who gained all 47 yards on the drive on five rushes. Manning had set them up with another big kickoff return. He ran 35 yards before being horse-collared by Gostkowski, who was called for a 15-yard penalty.


Manning's first kickoff return set up Graham's opening field goal just 1:03 into the game.


That early score was in stark contrast to Houston's first game against New England, a 42-14 loss in which the Texans trailed 21-0 at halftime.


The Patriots punted on their first two possessions before taking charge.


After a poor punt by Donnie Jones gave them the ball at their 35, Stevan Ridley rushed 14 yards on the first play, then lost 2 on the next. Brady then connected on three straight passes: 13 yards to Ridley, 25 to Vereen and 14 to Aaron Hernandez.


Vereen ran in from the 1-yard line on the next play.


After Gostkowski's field goal, Jones punted again for Houston and New England started at its 20. With a second-and-3 at the Patriots 39, Brady hit Welker for a 47-yard completion down the left sideline. It was Welker's 59th postseason catch, a New England club record.


On the next play, Vereen drifted out to the left with no Texan nearby and scored 3:38 before intermission.


The Patriots had early troubles on offense, punting on their first two possessions. Brady was sacked once, with NFL sacks leader J.J. Watt and Brooks Reed sharing credit for it.


In the first meeting with the Texans, Brady threw touchdown passes on the Patriots' first three possessions.


The winner of Sunday's game will host the Baltimore Ravens in the AFC championship game next Sunday.


New England's victory over Houston in Foxborough on Dec. 10 began the Texans' stretch of three losses in their last four regular-season games that cost them a playoff bye and home-field advantage.


But Houston beat the Cincinnati Bengals 19-13 in a wild-card game to advance to Sunday's rematch, the first playoff meeting between the Texans and Patriots.


AFC East champion New England had a first-round bye and is the top remaining AFC seed after the No. 1 Denver Broncos lost to the No. 4 Ravens 38-35 in double overtime on Saturday.


___


Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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Gas prices surge 7 cents after months of decline






CAMARILLO, Calif. (AP) — After months of dropping, gas prices are back on the upswing.


The average U.S. price of a gallon of gasoline has surged seven cents in the last three weeks. That’s according to the Lundberg Survey of fuel prices released Sunday that puts the price of a gallon of regular at $ 3.32.






Midgrade costs an average of $ 3.50 a gallon, and premium is $ 3.63. Diesel remained unchanged at $ 3.96 a gallon.


Of the places surveyed in the lower 48 states, Salt Lake City has the nation’s lowest average price at $ 3.04. Long Island, N.Y., has the highest at $ 3.75.


In California, the lowest average price was $ 3.46 in Sacramento and the highest was $ 3.65 in Bakersfield. The average statewide for a gallon of regular was $ 3.59, up a dime.


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Quest: U.S. economy to dominate Davos




The United States and the sorry state of its political and budgetary process will be the center of attention at Davos, writes Quest




STORY HIGHLIGHTS


  • Quest: Davos is a chance to see where the political and economic landmines are in 2013

  • Quest: People will be speculating about how dysfunctional the U.S. political process has become

  • Quest: Davos has been consumed by eurozone sovereign debt crises for three years




Editor's note: Watch Quest Means Business on CNN International, 1900pm GMT weekdays. Quest Means Business is presented by CNN's foremost international business correspondent Richard Quest. Follow him on Twitter.


(CNN) -- It is that time of the year, again. Come January no sooner have the Christmas trees been taken down, as the winter sales are in full vicious flood the world of business start thinking about going to the world economic forum, better known as Davos.


For the past three years Davos has been consumed by the eurozone sovereign debt crises.


As it worsened the speculation became ever more frantic.....Will Greece leave the euro? Will the eurozone even survive? Was this all just a big German trick to run Europe? More extreme, more dramatic, more nonsense.


Can China be the biggest engine of growth for the global economy. Round and round in circles we have gone on these subjects until frankly I did wonder if there was anything else to say short of it's a horrible mess!


This year there is a new bogey man. The US and in particular the sorry state of the country's political and budgetary process will, I have little doubt, be the center of attention.


Read more: More 'cliffs' to come in new Congress


Not just because Congress fluffed its big test on the fiscal cliff, but because in doing so it created many more deadlines, any one of which could be deeply unsettling to global markets... There is the $100 billion budget cutbacks postponed for two months by the recent agreement; postponed to the end of February.


At exactly the same time as the US Treasury's ability to rob Peter to pay Paul on the debt ceiling crises comes to a head.


Read more: Both Obama, GOP set for tough talks ahead


The Treasury's "debt suspension period" is an extraordinary piece of financial chicanery that if we tried it with our credit cards would get us locked up!! Then there is the expiration of the latest continuing resolution, the authority by which congress is spending money.


There is the terrifying prospect that all these budget woes will conflate into one big political fist fight as the US faces cutbacks, default or shutdown!!


I am being alarmist. Most rational people believe that the worst sting will be taken out of this tail....not before we have all been to the edge...and back. And that is what Davos will have on its mind.


People will be speculating about how dysfunctional the US political process has become and is it broken beyond repair (if they are not asking that then they should be...)




They will be pondering which is more serious for risk...the US budget and debt crises or the Eurozone sovereign debt debacle. A classic case of between the devil and the deep blue sea.




The official topic this year is Resilient Dynamism. I have absolutely no idea what this means. None whatsoever. It is another of WEF's ersatz themes dreamt up to stimulate debate in what Martin Sorrell has beautifully terms "davosian language" In short everyone interprets it as they will.




What I will enjoy, as I do every year, is the chance to hear the global players speak and the brightest and best thinkers give us their take on the global problems the atmosphere becomes febrile as the rock-stars of finance and economics give speeches, talk on panels and give insight.




Of course comes of these musings, it never does at Davos. That's not the point. This is a chance to take stock and see where the political and economic landmines are in 2013. I like to think of Davos as the equivalent of Control/Alt/Delete. It allows us to reboot.


We leave at least having an idea of where people stand on the big issues provided you can see through the panegyrics of self congratulatory back slapping that always takes place whenever you get like minded people in one place... And this year, I predict the big issue being discussed in coffee bars, salons and fondue houses will be the United States and its budgetary woes.







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Grounded 787 Dreamliner leaks fuel in tests by Japanese airline

The FAA stepped in Friday to assure the public that Boeing's new 787 "Dreamliner" is safe to fly. The AP spoke with Kevin Hiatt, Flight Safety Foundation CEO & President, who says mechanical issues with new aircrafts are not uncommon. (Jan. 11)









Tokyo—





Japan Airlines Co (JAL) said on Sunday that a Boeing Co 787 Dreamliner jet undergoing checks in Tokyo following a fuel leak at Boston airport last week had leaked fuel during tests earlier in the day.

An open valve on the aircraft caused fuel to leak from a nozzle on the left wing used to remove fuel, a company spokeswoman said. The jet is out of service after spilling about 40 gallons of fuel onto the airport taxiway in Boston due to a separate valve-related problem.






In Boston, a different valve on the plane opened, causing fuel to flow from the center tank to the left main tank. When that tank filled up, it overflowed into a surge tank and out through a vent. The spill happened as the plane was taxiing for takeoff on a flight to Tokyo on January 8. It made the flight about four hours later.

The causes of both incidents are unknown, the JAL spokeswoman added. There is no timetable for the plane to return to service.

On Friday, the U.S. government ordered a wide-ranging review of Boeing's 787 Dreamliner, citing concern over a battery that caught fire on January 7, also on a JAL plane in Boston, and other problems. The government and Boeing insisted the passenger jet remained safe to fly.

The 787 represents the boldest bet Boeing has made on a new plane in more than a decade, and because the aircraft required billions to develop, much of the company's financial performance is riding on its success. Boeing is trying to double production to 10 jets a month this year to cash in on nearly 800 orders.

The eight airlines that operate the 50 jets delivered so far have expressed support for it, saying the mishaps are teething problems common with most new airplanes, and the 787's fuel savings make it an important addition to their fleets. JAL and local rival All Nippon Airways Co fly 24 Dreamliners.

The review follows a slew of incidents that have focused intense scrutiny on the new plane. While many of the issues that have dogged the 787 are typically considered routine, their occurrence in quick succession on an aircraft that incorporates major new technology and has not seen wide use yet has sparked concerns about safety.

In December, a 787 operated by United Airlines and bound from Houston to Newark, New Jersey, was forced to land in New Orleans after a warning light in the cockpit indicated a generator had failed.

Boeing later said a faulty circuit board produced in Mexico and supplied by UTC Aerospace Systems, a unit of United Technologies , had produced a false reading in the cockpit. A UTC Aerospace spokesman declined to comment.

Also in December, two other 787s suffered problems with electrical panels. The fire on January 7 started when a lithium-ion battery used in an auxiliary power system ignited while the plane was parked at the gate. It burned for about 40 minutes before firefighters put the flames out, and smoke entered the cabin. Passengers and crew had already left the aircraft.

On December 5, U.S. regulators said there was a manufacturing fault in 787 fuel lines and advised operators to make extra inspections to guard against engine failures.

Last week, the plane had seven reported incidents, ranging from the fire to a cracked cockpit window.

(Reporting by James Topham in Tokyo and Alwyn Scott in Seattle; Editing by Jeremy Laurence, Catherine Evans and Dale Hudson)

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