Tech stocks lift Dow, Nasdaq; S&P holds flat

NEW YORK (Reuters) - The Dow and Nasdaq advanced on Wednesday, lifted by IBM and Google whose stronger-than-expected profits helped to alleviate growing investor concern about the tech sector.


IBM's and Google's earnings, released after Tuesday's close, were the latest reassuring fourth-quarter results that pushed the Dow and S&P 500 to five-year highs as worries about the "fiscal cliff" and euro zone debt crisis faded and earnings became the market's main focus.


International Business Machines Corp forecast better-than-anticipated 2013 results and also posted fourth-quarter earnings and revenue that beat expectations.


Shares in the world's largest technology services company climbed 4.9 percent to $205.71, its biggest advance since July, making it by far the largest boost to the Dow.


Worries about the profit potential in the tech sector had increased amid questions about waning demand for Apple Inc products and a weak outlook from Intel Corp last week.


Also helping to boost the tech sector was a 6.4 percent jump in Google Inc to $747.55. The Internet search company reported its core business outpaced expectations and revenue was higher than expected.


"That is kind of what got the Street's attention - is that tech was considered an area of vulnerability and now seems to be actually be an area of real strength, and not just in terms of the fourth quarter, but in terms of guidance," said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.


Despite a 1.1 percent gain in the S&P technology sector <.splrct>, gains on the broader S&P 500 index were limited a day after the benchmark index closed at a fresh 5-year high.


The recent gains have been largely fueled by a stronger-than-expected start to the earning season, pushing the benchmark S&P index near the 1,500 level, last reached on December 12, 2007, and may make additional gains harder to come by after a 4.6 increase for the month.


"It's only reasonable to expect some sort of resistance when you get to that all-important level, the fact that here it is Jan 23 and we are brushing up against it, is really impressive," Kenny said.


With tech earnings strong, Thomson Reuters data through Wednesday shows that of the 99 S&P 500 companies that have reported earnings so far, 67.7 percent have topped expectations, above the 62 percent average since 1994 and the 65 percent average over the past four quarters.


The Dow Jones industrial average <.dji> gained 67.98 points, or 0.50 percent, to 13,780.19. The Standard & Poor's 500 Index <.spx> added 1.36 points, or 0.09 percent, to 1,493.92. The Nasdaq Composite Index <.ixic> rose 11.50 points, or 0.37 percent, to 3,154.68.


McDonald's edged up 0.5 percent to $93.37 after reporting a rise in fourth-quarter earnings, lifted by an increase in same-store sales. Fellow Dow component United Technology Corp's earnings fell from the prior year, hurt by large restructuring charges. Shares climbed 0.6 percent to $87.98.


On the downside, leather-goods maker Coach Inc plunged 15.48 percent to $51.31 as the S&P's worst performer after reporting sales that missed expectations. The S&P consumer discretionary sector <.splrcd> slipped 0.3 percent.


After the market closes, investors will scour Apple's results, with the options market bracing for a big move in Apple shares after its earnings, amid a dramatic plunge for the world's most valuable publicly traded company. Apple shares rose 0.4 percent to $507.04 on Wednesday.


Overall, S&P 500 fourth-quarter earnings rose 2.8 percent, according to Thomson Reuters data. That estimate is above the 1.9 percent forecast at the start of earnings season, but well below the 9.9 percent fourth-quarter earnings forecast on October 1, the data showed.


Republican leaders in the U.S. House of Representatives began considering a Republican measure on Wednesday to extend the U.S. debt limit for nearly four months but many Democrats vowed to oppose the measure, calling it a gimmick that sets up a new "fiscal cliff.


(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)



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NCAA announces problems with Miami investigation


CORAL GABLES, Fla. (AP) — The NCAA has found what it calls "a very severe case of improper conduct" committed by former members of its own enforcement program during the Miami investigation, and will not deliver the long-awaited notice of allegations against the Hurricanes until an external review is completed.


NCAA President Mark Emmert announced the findings Wednesday. The sports governing body said former enforcement staff members worked with the criminal defense attorney for former Miami booster and convicted Ponzi scheme architect Nevin Shapiro "to improperly obtain information ... through a bankruptcy proceeding that did not involve the NCAA."


The NCAA did not name the attorney involved. Shapiro has been represented by Maria Elena Perez, a Miami graduate. Perez did not immediately return a request for comment from The Associated Press on Wednesday.


One key person in the investigation has been former Miami equipment-room staffer Sean Allen, who was deposed by Perez as part of Shapiro's bankruptcy proceedings. If the NCAA found that it could not use the information gleaned in that particular deposition, that would figure to be a major victory for the Hurricanes.


Miami had no immediate comment.


"I have been vocal in the past regarding the need for integrity by NCAA member schools, athletics administrators, coaches, and student-athletes," Emmert said. "That same commitment to integrity applies to all of us in the NCAA national office."


The Hurricanes' athletic compliance practices have been probed by the NCAA for nearly two years. Allegations of wrongdoing involving Miami's football and men's basketball programs became widely known in August 2011 when Yahoo Sports published accusations brought by Shapiro, who is serving a 20-year term in federal prison for masterminding a $930 million Ponzi scheme.


This would figure to be another significant issue for the NCAA and its enforcement department. Among the others pending:


— A California case filed by former Southern Cal assistant football coach Todd McNair, who said the NCAA was "malicious" in its investigation into his role in the benefits scandal surrounding Heisman Trophy winner Reggie Bush. Los Angeles Superior Court Judge Frederick Shaller said he was convinced the actions of NCAA investigators were "over the top."


— Earlier this month, the NCAA was sued by Pennsylvania Gov. Thomas W. Corbett, who claimed the sports governing body overstepped its authority and "piled on" when it penalized Penn State for the Jerry Sandusky scandal last summer. The governor asked a federal judge to throw out the sanctions, arguing that the measures — which include a four-year bowl ban and $60 million fine — have harmed students, business owners and others who had nothing to do with Sandusky's crimes.


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How Much Will Tar Sands Oil Add to Global Warming?






James Hansen has been publicly speaking about climate change since 1988. The NASA climatologist testified to Congress that year and he’s been testifying ever since to crowds large and small, most recently to a small gathering of religious leaders outside the White House last week. The grandfatherly scientist has the long face of a man used to seeing bad news in the numbers and speaks with the thick, even cadence of the northern Midwest, where he grew up, a trait that also helps ensure that his sometimes convoluted science gets across.

This cautious man has also been arrested multiple times.


His acts of civil disobedience started in 2009, and he was first arrested in 2011 for protesting the development of Canada’s tar sands and, especially, the Keystone XL pipeline proposal that would serve to open the spigot for such oil even wider. “To avoid passing tipping points, such as initiation of the collapse of the West Antarctic Ice Sheet, we need to limit the climate forcing severely. It’s still possible to do that, if we phase down carbon emissions rapidly, but that means moving expeditiously to clean energies of the future,” he explains. “Moving to tar sands, one of the dirtiest, most carbon-intensive fuels on the planet, is a step in exactly the opposite direction, indicating either that governments don’t understand the situation or that they just don’t give a damn.”






He adds: “People who care should draw the line.”


Hansen is not alone in caring. In addition to a groundswell of opposition to the 2,700-kilometer-long Keystone pipeline, 17 of his fellow climate scientists joined him in signing a letter urging Pres. Barack Obama to reject the project last week. Simply put, building the pipeline—and enabling more tar sands production—runs “counter to both national and planetary interests,” the researchers wrote. “The year of review that you asked for on the project made it clear exactly how pressing the climate issue really is.” Obama seemed to agree in his second inaugural address this week, noting “we will respond to the threat of climate change, knowing that the failure to do so would betray our children and future generations.”


At the same time, the U.S. imports nearly nine million barrels of oil per day and burns nearly a billion metric tons of coal annually. China’s coal burning is even larger and continues to grow by leaps and bounds. Partially as a result, global emissions of greenhouse gases continue to grow by leaps and bounds too—and China is one alternative customer eager for the oil from Canada’s tar sands. Neither developed nor developing nations will break the fossil-fuel addiction overnight, and there are still more than a billion people who would benefit from more fossil-fuel burning to help lift them out of energy poverty. The question lurking behind the fight in North America over Keystone, the tar sands and climate change generally is: How much of the planet’s remaining fossil fuels can we burn?


The trillion-tonne question
To begin to estimate how much fossil fuels can be burned, one has to begin with a guess about how sensitive the global climate really is to additional carbon dioxide. If you think the climate is vulnerable to even small changes in concentrations of greenhouse gases—as Hansen and others do—then we have already gone too far. Global concentrations of greenhouse gases in the atmosphere have reached 394 parts per million, up from 280 ppm before the Industrial Revolution and the highest levels seen in at least 800,000 years. Hansen’s math suggests 350 ppm would be a safer level, given that with less than a degree Celsius of warming from present greenhouse gas concentrations, the world is already losing ice at an alarming rate, among other faster-than-expected climate changes.


International governments have determined that 450 ppm is a number more to their liking, which, it is argued, will keep the globe’s average temperatures from warming more than 2 degrees C. Regardless, the world is presently on track to achieve concentrations well above that number. Scientists since chemist Svante Arrhenius of Sweden in 1896 have noted that reaching concentrations of roughly 560 ppm would likely result in a world with average temperatures roughly 3 degrees C warmer—and subsequent estimates continue to bear his laborious, hand-written calculations out. Of course, rolling back greenhouse gas concentrations to Hansen’s preferred 350 ppm—or any other number for that matter—is a profoundly unnatural idea. Stasis is not often found in the natural world.


Concentrations of greenhouse gases in the atmosphere may not be the best metric for combating climate change anyway. “What matters is our total emission rate,” notes climate modeler Ken Caldeira of the Carnegie Institution for Science Department of Global Ecology at Stanford University, another signee of the anti-Keystone letter. “From the perspective of the climate system, a CO2 molecule is a CO2 molecule and it doesn’t matter if it came from coal versus natural gas.”


Physicist Myles Allen of the University of Oxford in England and colleagues estimated that the world could afford to put one trillion metric tons of carbon into the atmosphere by 2050 to have any chance of restraining global warming below 2 degrees C. To date, fossil fuel burning, deforestation and other actions have put nearly 570 billion metric tons of carbon in the atmosphere—and Allen estimates the trillionth metric ton of carbon will be emitted around the summer of 2041 at present rates. “Tons of carbon is fundamental,” adds Hansen, who has argued that burning all available fossil fuels would result in global warming of more than 10 degrees C. “It does not matter much how fast you burn it.”


Alberta’s oil sands represent a significant tonnage of carbon. With today’s technology there are roughly 170 billion barrels of oil to be recovered in the tar sands, and an additional 1.63 trillion barrels worth underground if every last bit of bitumen could be separated from sand. “The amount of CO2 locked up in Alberta tar sands is enormous,” notes mechanical engineer John Abraham of the University of Saint Thomas in Minnesota, another signer of the Keystone protest letter from scientists. “If we burn all the tar sand oil, the temperature rise, just from burning that tar sand, will be half of what we’ve already seen”—an estimated additional nearly 0.4 degree C from Alberta alone.


As it stands, the oil sands industry has greenhouse gas emissions greater than New Zealand and Kenya—combined. If all the bitumen in those sands could be burned, another 240 billion metric tons of carbon would be added to the atmosphere and, even if just the oil sands recoverable with today’s technology get burned, 22 billion metric tons of carbon would reach the sky. And reserves usually expand over time as technology develops, otherwise the world would have run out of recoverable oil long ago.


The greenhouse gas emissions of mining and upgrading tar sands is roughly 79 kilograms per barrel of oil presently, whereas melting out the bitumen in place requires burning a lot of natural gas—boosting emissions to more than 116 kilograms per barrel, according to oil industry consultants IHS Cambridge Energy Research Associates. All told, producing and processing tar sands oil results in roughly 14 percent more greenhouse gas emissions than the average oil used in the U.S. And greenhouse gas emissions per barrel have stopped improving and started increasing slightly, thanks to increasing development of greenhouse gas–intensive melting-in-place projects. “Emissions have doubled since 1990 and will double again by 2020,” says Jennifer Grant, director of oil sands research at environmental group Pembina Institute in Canada.


Just one mine expansion, Shell’s Jackpine mine, currently under consideration for the Albian mega-mine site, would increase greenhouse gas emissions by 1.18 million metric tons per year. “If Keystone is approved then we’re locking in a several more decades of dependence on fossil fuels,” says climate modeler Daniel Harvey of the University of Toronto. “That means higher CO2 emissions, higher concentrations [in the atmosphere] and greater warming that our children and grandchildren have to deal with.”


And then there’s all the carbon that has to come out of the bitumen to turn it into a usable crude oil.


Hidden carbon
In the U.S. State Department’s review of the potential environmental impacts of the Keystone project, consultants EnSys Energy suggested that building the pipeline would not have “any significant impact” on greenhouse gas emissions, largely because Canada’s tar sands would likely be developed anyway. But the Keystone pipeline represents the ability to carry away an additional 830,000 barrels per day—and the Albertan tar sands are already bumping up against constraints in the ability to move their product. That has led some to begin shipping the oil by train, truck and barge—further increasing the greenhouse gas emissions—and there is a proposal to build a new rail line, capable of carrying five million barrels of oil per year from Fort McMurray to Alaska’s Valdez oil terminal.


Then there’s the carbon hidden in the bitumen itself. Either near oil sands mines in the mini-refineries known as upgraders or farther south after the bitumen has reached Midwestern or Gulf Coast refineries, its long, tarry hydrocarbon chains are cracked into the shorter, lighter hydrocarbons used as gasoline, diesel and jet fuel. The residue of this process is a nearly pure black carbon known as petroleum (pet) coke that, if it builds up, has to be blasted loose, as if mining for coal in industrial equipment. The coke is, in fact, a kind of coal and is often burned in the dirtiest fossil fuel’s stead. Canadian tar sands upgraders produce roughly 10 million metric tons of the stuff annually, whereas U.S. refineries pump out more than 61 million metric tons per year.


Pet coke is possibly the dirtiest fossil fuel available, emitting at least 30 percent more CO2 per ton than an equivalent amount of the lowest quality mined coals. According to multiple reports from independent analysts, the production (and eventual burning) of such petroleum coke is not included in industry estimates of tar sands greenhouse gas emissions because it is a co-product. Even without it, the Congressional Research Service estimates that tar sands oil results in at least 14 percent more greenhouse gas emissions than do more conventional crude oils.


Although tar sands may be among the least climate-friendly oil produced at present—edging out alternatives such as fracking for oil trapped in shale deposits in North Dakota and flaring the gas—the industry has made attempts to reduce greenhouse gas pollution, unlike in other oil-producing regions. For example, there are alternatives to cracking bitumen and making pet coke, albeit more expensive ones, such as adding hydrogen to the cracked bitumen, a process that leaves little carbon behind that is employed by Shell, among others.


More recently, Shell has begun adding carbon-capture-and-storage (CCS) technology to capture the emissions from a few of its own upgraders, a project known as Quest. The program, when completed in 2015, will aim to capture and store one million metric tons of CO2 per year, or a little more than a third of the CO2 emissions of Shell’s operation at that site. And tar sands producers do face a price on carbon—$ 15 per metric ton by Alberta provincial regulation—for any emissions above a goal of reducing by 12 percent the total amount of greenhouse gas emitted per total number of barrels produced.


The funds collected—some $ 312 million to date—are then used to invest in clean technology, but more than 75 percent of the projects are focused on reducing emissions from oil sands, unconventional oils and other fossil fuels. And to drive more companies to implement CCS in the oil sands would require a carbon price of $ 100 per metric ton or more. “We don’t have a price on carbon in the province that is compelling companies to pursue CCS,” Pembina’s Grant argues.


In fact, Alberta’s carbon price may be little more than political cover. “It gives us some ammunition when people attack us for our carbon footprint, if nothing else,” former Alberta Energy Minister Ron Liepert told Scientific American in September 2011. Adds Beverly Yee, assistant deputy minister at Alberta’s Environment and Sustainable Resource Development agency, more recently, “Greenhouse gases? We don’t see that as a regional issue.” From the individual driver in the U.S. to oil sands workers and on up to the highest echelons of government in North America, everyone dodges responsibility.


Price of carbon
A true price on carbon, one that incorporates all the damages that could be inflicted by catastrophic climate change, is exactly what Hansen believes is needed to ensure that more fossil fuels, like the tar sands, stay buried. In his preferred scheme, a price on carbon that slowly ratcheted up would be collected either where the fossil fuel comes out of the ground or enters a given country, such as at a port. But instead of that tax filling government coffers, the collected revenue should be rebated in full to all legal residents in equal amounts—an approach he calls fee and dividend. “Not one penny to reducing the national debt or off-setting some other tax,” the government scientist argues. “Those are euphemisms for giving the money to government, allowing them to spend more.”


Such a carbon tax would make fossil fuels more expensive than alternatives, whether renewable resources such as wind and sun or low-carbon nuclear power. As a result, these latter technologies might begin to displace things like coal-burning power plants or halt major investments in oil infrastructure like the Keystone XL pipeline.


As it stands, producing 1.8 million barrels per day of tar sands oil resulted in the emissions of some 47.1 million metric tons of CO2-equivalent in 2011, up nearly 2 percent from the year before and still growing, according to the Canadian Association of Petroleum Producers. In the same year coal-fired power plants in the U.S. emitted more than two billion metric tons of CO2-equivalent. “If you think that using other petroleum sources is much better [than tar sands], then you’re delusional,” says chemical engineer Murray Gray, scientific director of the Center for Oil Sands Innovation at the University of Alberta.


In other words, tar sands are just a part of the fossil-fuel addiction—but still an important part. Projects either approved or under construction would expand tar sands production to over five million barrels per day by 2030. “Any expansion of an energy system that relies on the atmosphere to be its waste dump is bad news, whereas expansion of safe, affordable and environmentally acceptable energy technologies is good news,” Carnegie’s Caldeira says.


There’s a lot of bad news these days then, from fracking shale for gas and oil in the U.S. to new coal mines in China. Oxford’s Allen calculates that the world needs to begin reducing emissions by roughly 2.5 percent per year, starting now, in order to hit the trillion metric ton target by 2050. Instead emissions hit a new record this past year, increasing 3 percent to 34.7 billion metric tons of CO2 and other greenhouse gases.


Stopping even more bad news is why Hansen expects to be arrested again, whether at a protest against mountaintop removal mining for coal in West Virginia or a sit-in outside the White House to convince the Obama administration to say no to Keystone XL and any expansion of the tar sands industry. The Obama administration has already approved the southern half of the pipeline proposal—and if the northern link is approved, a decision expected after March of this year, environmental group Oil Change International estimates that tar sands refined on the Gulf Coast would produce 16.6 million metric tons of CO2 annually, along with enough petroleum coke to fuel five coal-fired power plants for a year. All told, the increased tar sands production as a result of opening Keystone would be equal to opening six new coal-fired power plants, according to Pembina Institute calculations.


Even as increased oil production in the U.S. diminishes the demand for tar sands-derived fuel domestically, if Keystone reaches the Gulf Coast, that oil will still be refined and exported. At the same time, Obama pledged to respond to climate change and argued for U.S. leadership in the transition to “sustainable energy sources” during his second inaugural address; approving Keystone might lead in the opposite direction.


For the tar sands “the climate forcing per unit energy is higher than most fossil fuels,” argues Hansen, who believes he is fighting for the global climate his five grandchildren will endure—or enjoy. After all, none of his grandchildren have lived through a month with colder than average daily temperatures. There has not been one in the U.S. since February 1985, before even Hansen started testifying on global warming. As he says: “Going after tar sands—incredibly dirty, destroying the local environment for a very carbon-intensive fuel—is the sign of a terribly crazed addict.”Follow Scientific American on Twitter @SciAm and @SciamBlogs.Visit ScientificAmerican.com for the latest in science, health and technology news.
© 2013 ScientificAmerican.com. All rights reserved.


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2013 could be 'climate game-changer'




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




STORY HIGHLIGHTS


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

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

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

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




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


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


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



Andrew Steer

Andrew Steer



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


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


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










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


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


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


What do we need to get on track?



Incentivizing renewable energy investment


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


Removing market barriers


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


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


De-risking investments


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


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


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


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


Follow us on Twitter@CNNOpinion.


Join us on Facebook/CNNOpinion.


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






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2 men died in high-rise fire after rescuing elderly woman: officials

A high-rise fire on Chicago's south side killed two men and seriously injured a woman.









The two men who died in a South Shore high-rise fire had rescued an elderly woman on the seventh floor and had returned to the burning apartment with fire extinguishers when they apparently were overcome by smoke, officials said today.

Jameel Johnson, 36, and his co-worker, John Fasula, 50, were doing contract work for a cable company when the fire broke out on the seventh floor of the 16-story building in the 6700 block of South Shore Drive Tuesday morning. The two heard an 81-year-old woman screaming for help and placed her inside an elevator and pressed a button to take her to the first floor, according to police and David A. Fields Jr., Johnson’s cousin.

Fasula and Johnson returned to her apartment with fire extinguishers, police said. They were later found by firefighters, collapsed on the floor and were in full cardiac arrest, according to police and fire officials.

The woman collapsed on the floor of the lobby after the elevator doors opened, but was revived by paramedics and taken to the University of Chicago Hospitals, where she was listed in critical condition from smoke inhalation, according to police.

“He died a hero,” Fields said in a telephone interview. “They died saving a woman’s life.”

Johnson, the father of two girls, was working as a private contractor for a cable company, his family said. He did not like being inside high-rise buildings, but the company could not find a replacement, relatives said.

“He went with the understanding that maybe it was just a service call and he could be in and out,” Fields said. “He didn’t want to be in the high-rise building, that was his whole thing. He didn’t want to be there.”

Relatives described Johnson, an Englewood native, as a fun-loving man who did whatever he could to take care of his fiance and two children, ages 14 and 3. Johnson had ventured into different careers over the years, but returned to the cable business about a year ago.

“He was a good father who was just trying to make sure his kids had the best,” Fields said.

He had been with his fiance for 15 years and the family lives in Gary, Ind., Fields said. His youngest daughter still doesn’t understand what happened, relatives said.

“She’s still looking for her father to come home,” said Johnson’s aunt, Rosemary Cohns. “That’s the hardest part.”


Relatives of Fasula said they were not surprised to hear he risked his life for someone else.

“That’s how my brother-in-law was,” said Michelle Kozicki, 65, Fasula’s sister-in-law. “There’s never going to be another one like my brother-in-law Johnny. There’s not a bad bone in his body.”


Fasula was a maintenance manager for the CTA, spokeswoman Lambrini Lukidis said. He started working for the transit agency in 1983.








Fasula’s family knew he was at the apartment building for a “side job,” though she wasn’t sure what the work entailed. Kozicki said it was common for Fasula, who had been married for nearly 40 years, to work jobs outside his day job at the CTA.
 
“He didn’t like to sit still,” she said.

He went out of his way to help his father before he died in 2009. He was with him “every step of the way,” Kozicki said. For example, Fasula took time off of work to drive his father to doctor’s appointments.


Fire officials have said the fire apparently started in a bedroom on the seventh floor. Fire Department spokesman Larry Langford said the cause is undetermined pending further analysis of electrical information.  It does not appear suspicious, he added.

“In short, it generally means we have to have some items looked at,” Langford said of the analysis.


chicagobreaking@tribune.com


Twitter:@ChicagoBreaking





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Cameron promises Britons contentious vote on EU future


LONDON (Reuters) - Prime Minister David Cameron on Wednesday promised Britons a vote on whether the country should stay in the European Union or leave, rattling London's biggest allies and some investors by raising the prospect of uncertainty and upheaval.


Cameron announced the referendum would be held by the end of 2017, provided he wins the next election, and said that while Britain did not want to retreat from the world, public disillusionment with the EU was at "an all-time high".


"It is time for the British people to have their say. It is time for us to settle this question about Britain and Europe," Cameron said in a speech, adding that his Conservative party would campaign for the 2015 election on a promise to renegotiate the terms of Britain's EU membership.


"When we have negotiated that new settlement, we will give the British people a referendum with a very simple in or out choice to stay in the European Union on these new terms; or come out altogether. It will be an in-out referendum."


A referendum would mark the second time Britons have voted on the issue. In 1975, they decided by a wide margin to stay in the EU's predecessor, two years after the country had joined.


Domestically, Cameron stands on relatively firm ground. Most recent opinion polls have shown a slim majority would vote to leave the EU amid often bitter disenchantment about its influence on the British way of life. However, a poll this week showed a majority wanted to stay.


Cameron's position is fraught with uncertainty. He must come from behind to win the next election, secure support from the EU's 26 other states for a new British role, and hope those countries can persuade their voters to back the changes.


Critics say that in the long run-up to a vote, Britain would slip into a dangerous and damaging limbo that could leave the country adrift or pushed out of the EU.


The United States, a close ally, is also uneasy about the plan, believing it will dilute Britain's international clout. President Barack Obama told Cameron by phone last week that Washington valued "a strong UK in a strong European Union".


Some of Britain's European partners were also anxious and told Cameron on Wednesday his strategy reflected a selfish and ignorant attitude. However, Angela Merkel, the leader of EU paymaster Germany, was quick to say she was ready to discuss Cameron's ideas.


French Foreign Minister Laurent Fabius was less diplomatic, quipping: "If Britain wants to leave Europe we will roll out the red carpet for you," echoing Cameron, who once used the same words to invite rich Frenchmen alienated by high taxes to move to Britain.


Billed by commentators as the most important speech of Cameron's career, his referendum promise ties him firmly to an issue that has bedeviled a generation of Conservative leaders.


In the past, he has been careful to avoid bruising partisan fights over Europe, an issue that undid the last two Conservative prime ministers, John Major and Margaret Thatcher.


His speech appeared to pacify a powerful Eurosceptic wing inside his own party, but deepen rifts with the Liberal Democrats, the junior partners in his coalition. Their leader, Deputy Prime Minister Nick Clegg, said the plan would undermine a fragile economic recovery.


Sterling fell to its lowest in nearly five months against the dollar on Wednesday as Cameron was speaking.


"BREXIT"?


Cameron said he would seek to claw back powers from Brussels, saying later in parliament that when it came to employment, social and environmental legislation "Europe has gone far too far".


But such a claw back - the subject of an internal audit to identify which powers he should target for repatriation - is likely to be easier said than done.


If Cameron wins the election but then fails to renegotiate Britain's membership of the EU, a 'Brexit' could loom.


Business leaders have warned that years of doubt over Britain's EU membership would damage the $2.5 trillion economy and cool the investment climate.


"Having a referendum creates more uncertainty and we don't need that," Martin Sorrell, chief executive of advertising giant WPP, told the World Economic Forum in Davos. "This is a political decision. This is not an economic decision. This isn't good news. You added another reason why people will postpone investment decisions."


Cameron has been pushed into taking such a strong position partly by the rise of the UK Independence Party, which favors complete withdrawal from the EU and has climbed to third in the opinion polls, mainly at the expense of the Conservatives.


"All he's trying to do is to kick the can down the road and to try and get UKIP off his back," said UKIP leader Nigel Farage.


Eurosceptics in Cameron's party, who have threatened to stir up trouble for the premier, were thrilled by the speech.


Conservative lawmaker Peter Bone called it "a terrific victory" that would unify 98 percent of the party. "He's the first prime minister to say he wants to bring back powers from Brussels," Bone told Reuters. "It's pretty powerful stuff".


Whether Cameron holds the referendum remains as uncertain as the Conservatives' chances of winning the election. They trail the opposition Labour party in opinion polls, and the coalition is grappling with a stagnating economy as it pushes through unpopular public spending cuts to reduce a large budget deficit.


Labour leader Ed Miliband said on Wednesday his party did not want an in/out referendum.


EU REFORM


Cameron said he would campaign for Britain to stay in the EU "with all my heart and soul", provided he secured the reforms he wants. He made clear the EU must become less bureaucratic and focus more on trade deals. It was riskier to maintain the status quo than to change, he said.


"The biggest danger to the European Union comes not from those who advocate change, but from those who denounce new thinking as heresy," he said.


Cameron said the euro zone debt crisis was forcing the bloc to change and that Britain would fight to make sure new rules were fair to the 10 countries that don't use the common currency, of which Britain is the largest.


Democratic consent for the EU in Britain was now "wafer thin", he said. "Some people say that to point this out is irresponsible, creates uncertainty for business and puts a question mark over Britain's place in the European Union," said Cameron. "But the question mark is already there: ignoring it won't make it go away."


A YouGov opinion poll on Monday showed that more people wanted to stay in the EU than leave it, the first such result in many months. But it was unclear whether that result was a blip.


Paul Chipperfield, a 53-year-old management consultant, said he liked the strategy. "Cameron's making the right move because I don't think we've had enough debate in this country," he told Reuters. "We should be part of the EU but the EU needs to recognize that not everybody's going to jump on the same bandwagon."


Asked after the speech whether other EU countries would agree to renegotiate Britain's membership, Cameron said he was an optimist and that there was "every chance of success".


"I don't want Britain to leave the EU," he told parliament later. "I want Britain to reform the EU."


In the 1975 referendum, just over 67 percent voted to stay inside with nearly 33 percent against.


(Additional reporting by Paul Taylor in Davos, Alexandra Hudson in Berlin and Brenda Goh in London; Editing by Guy Faulconbridge and David Stamp)



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Dow, S&P 500 edge higher as earnings eyed


NEW YORK (Reuters) - Stocks mostly edged up on Tuesday after ending last week at five-year highs, but gains were limited with investors showing caution as the earnings season picks up speed.


Both the Dow and the Standard & Poor's 500 closed at five-year highs on Friday, boosted by better-than-expected results in the early part of the earnings season. Although major companies have issued bullish statements, many investors remain wary that economic uncertainty in the fourth quarter dented earnings and revenues.


"The market is playing wait-and-see to see the way the earnings come in this week because you've got some biggies," said Fred Dickson, chief market strategist at D.A. Davidson & Co., in Lake Oswego, Oregon.


Recent concerns about waning demand for Apple Inc products and a weak outlook from Intel Corp have diminished optimism about the tech sector's prospects. The S&P technology sector index, down 0.4 percent, was the worst performing of the 10 major S&P 500 sectors on Tuesday.


Major tech companies scheduled to report results after the market's close on Tuesday include Google Inc, International Business Machines and Texas Instruments. Tech bellwethers Apple and Microsoft Corp are also set to report earnings this week.


"Any one of those, if there is a big surprise up or down, could shift the balance in the markets. So investors are being far more cautious than normal, especially with the market averages having broken out to five-year highs," Dickson said.


The Dow Jones industrial average gained 31.32 points, or 0.23 percent, to 13,681.02. The Standard & Poor's 500 Index added 1.48 points, or 0.10 percent, to 1,487.46. The Nasdaq Composite Index slipped 4.42 points, or 0.14 percent, to 3,130.29.


Four Dow components reported early on Tuesday, and three rose on the results. Insurer Travelers Cos was the standout, climbing 2.6 percent to $78.33 and giving the biggest boost to the Dow after the company forecast higher premiums across its business.


DuPont, the largest U.S. chemical company by market capitalization, reported revenue that exceeded Wall Street's expectations, while Verizon Communications Inc also posted revenue that beat forecasts.


Shares of DuPont shot up 1.6 percent to $47.75 while Verizon's stock rose 0.9 percent to $42.94.


On the downside, shares of Johnson & Johnson, the diversified health company, slipped 0.6 percent to $72.79 after the Dow component forecast 2013 earnings below expectations.


According to Thomson Reuters data through Tuesday morning, of the 74 companies in the S&P 500 that have reported earnings so far, 62.2 percent have topped expectations, roughly even with the 62 percent average since 1994, but below the 65 percent average over the past four quarters.


Overall, S&P 500 fourth-quarter earnings are forecast to have risen 2.6 percent. That estimate is above the 1.9 percent forecast from the start of earnings season, but well below the 9.9 percent fourth-quarter earnings forecast from October 1, the data showed.


Economic data from the National Association of Realtors showed existing-home sales unexpectedly fell 1 percent in December, which was below expectations, but not a big enough dip to suggest the housing market's recovery may be in jeopardy.


Republican leaders in the U.S. House of Representatives said they aim on Wednesday to pass a nearly four-month extension of the U.S. debt limit, allowing the government to borrow enough to meet its obligations during that period.


Markets have recently been pressured by uncertainty stemming from Washington about the federal debt limit and spending cuts that could hamper U.S. growth.


U.S.-listed shares of Research in Motion jumped 9.6 percent to $17.36 a day after its chief executive said the Canadian company may consider strategic alliances with other companies after the launch of devices powered by RIM's new BlackBerry 10 operating system.


(Editing by Jan Paschal)



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Woman in Te'o fake girlfriend photo speaks out


NEW YORK (AP) — The woman whose photo was used as the "face" of the Twitter account of Manti Te'o's supposed girlfriend says the man allegedly behind the hoax confessed and apologized to her.


Diane O'Meara told NBC's "Today" show Tuesday that Ronaiah Tuiasosopo used pictures of her without her knowledge in creating a fake woman called Lennay Kekua. Te'o asserts he was tricked into an online romance with Kekua and, until last week, believed she died of leukemia in September.


O'Meara went to high school in California with Tuiasosopo, but she says they're not close. He called to apologize Jan. 16, the day Deadspin.com broke the hoax story, she said.


"I don't think there's anything he could say to me that would fix this," said O'Meara, a 23-year-old marketing executive in Los Angeles.


O'Meara said she had never had any contact with Te'o, and that for five years, Tuiasosopo "has literally been stalking my Facebook and stealing my photos."


Tuiasosopo has not spoken publicly since the news broke. His family has said they may speak out this week.


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Andes Glaciers Vanishing Rapidly, Study Finds






The glaciers of the Andes Mountains have retreated at an unprecedented rate in the past three decades, with more ice lost than at any other time in the last 400 years.


That’s according to a new review of research that combines on-the-ground observations with aerial and satellite photos, historical records and dates from cores of ice extracted from the glaciers. The retreat is worse in the Andes than the average glacier loss around the world, the researchers report today (Jan. 22) in the journal The Cryosphere.






“Tropical Andes glaciers have lost on average between 30 to 50 percent (depending on the mountain ranges) of their surface since the late 70s,” study researcher Antoine Rabatel, a scientist at the Laboratory for Glaciology and Environmental Geophysics in Grenoble, France, wrote in an email to LiveScience.  


Sensitive glaciers


The Andes Mountains of South America are home to 99 percent of tropical glaciers ­— permanent rivers of ice at high enough elevations not to be affected by the types of balmy temperatures usually associated with the tropics. But these glaciers are particularly sensitive to climate change, because there is little seasonality in temperatures in the tropics, Rabatel said.


“Glaciers of the tropical Andes react strongly and more rapidly than other glaciers on Earth to any changes in climate conditions,” he said. [Ice World: Gallery of Awe-Inspiring Glaciers]


To piece together the story of the glaciers over the past centuries, Rabatel and his colleagues drew on disparate strands of data. Historical records from early settlements reveal glacier boundaries, as does ice core data taken by drilling down into the annual layers of ice that make up glaciers. Even the lichens (symbiotic organsism made of fungus and an algae or bacteria) that survive on the rocky debris, or moraine, that forms around a glacier have a story to tell. Researchers can date these lichens to determine how long ago the rocks were exposed and free of ice.


Aerial photographs dating back to the 1950s and satellite imagery from as far back as the 1970s also tracks the glaciers’ movements. Finally, direct, ground-based observations have been in place at many glaciers since the 1990s.


Retreat of the glaciers


All together, the data tell a story of ice loss. The Andean glaciers reached their maximum extents in the Little Ice Age, a cool period that lasted from about the 16th to 19th centuries. In the outer tropics of Peru and Bolivia, the glaciers hit their maximums in the 1600s, the researchers found. The highest Andean glaciers maxed out in the 1730s or so, while lower-elevation glaciers reached their peaks around the 1830s.


Since then, the glaciers have gradually withdrawn, with one period of accelerated melt in the late 1800s and a second, much larger, accelerated melt period in the past three decades. Since the 1970s, the glaciers have followed a pattern of periods of accelerated melt with two to three years in between of slower retreat and occasional advance (or growth). But while there have been scattered good years for the glaciers in which more new ice formed than was lost, the overall average has been permanently negative over the past 50 years, the researchers wrote.


The average loss of 30 percent to 50 percent varies widely from glacier to glacier, Rabatel said. Some small glaciers have completely disappeared, such as the Chacaltaya glacier of Bolivia, which was once the world’s highest ski resort, but which vanished in 2009.


Lower-altitude glaciers below about 17,700 feet (5400 meters) above sea level are melting twice as fast as those at higher elevations. These low glaciers, which make up the majority of Andes glaciers, are expected to vanish within years or decades, Rabatel said.


Precipitation in the region has not changed, the researchers found, but temperatures have risen nearly 0.2 degrees Fahrenheit (0.1 degrees Celsius) per decade over the last 70 years. That means it’s likely atmospheric heat rather than lack of snow is driving the glacier retreat.


The looming loss of the glaciers is a major problem for the people living in arid regions west of the Andes, Rabatel said.


“The supply of water from high-altitude glacierized mountain chains is important for agricultural and domestic consumption, as well as for hydropower,” he wrote.


Follow Stephanie Pappas on Twitter @sipappas or LiveScience @livescience. We’re also on Facebook & Google+.


Copyright 2013 LiveScience, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Defterios: What keeps Davos relevant






STORY HIGHLIGHTS


  • Since the late 20th Century, the ski resort of Davos has been synonymous with the World Economic Forum

  • Defterios: I first came to Davos as a relatively junior correspondent, two months after the Berlin Wall fell

  • Fall of Communism, China's opening, removal of apartheid in South Africa unfolded in the 90s


  • It's the inter-play between geo-politics and business is what keeps the forum relevant




Davos (CNN) -- Veterans of Davos often refer to nature's awe-inspiring work as the Magic Mountain.


The name comes from an early 20th century novel by Thomas Mann -- reflecting on life in an alpine health retreat, and the mystery of time in this breath-taking setting.


Read more from John Defterios: Why Egypt's transition is so painful


Since the late 20th century, this ski resort has been synonymous with the World Economic Forum, which represents networking on its grandest scale.


This year nearly 40 world leaders -- a record for this annual meeting -- 2000 plus executives and it seems an equal number of people in the media, like yours truly, are in pursuit of them all. The setting is certainly more chaotic then a decade ago. The agendas of the Fortune 500 chief executives are to filled with bi-lateral meetings and back door briefings to allow for the spontaneity that made this venue unique.











Davos gets ready for leaders' gathering











HIDE CAPTION









I first came to Davos as a relatively junior correspondent in 1990, two months after the fall of the Berlin Wall. It was arguably then, after nearly two decades in the conference business, when the forum became a fixture on the global calendar.


Quest: U.S. economy to dominate Davos 2013


I can remember, quite vividly, working out of a bunker (like we do today) in the Davos Congress Centre. West German Chancellor Helmut Kohl sat side-by-side with his East German counterpart Hans Modrow. That meeting before the global community helped set the stage for monetary union, a huge unification fund for what became Eastern Germany and shortly thereafter German elections.


The early 90s at Davos were dominated by European reconstruction after the fall of communism. Former party bosses came to the forum to convince business leaders that a transition to market economics could be delivered. Boris Yeltsin made his Davos appearance during that chaotic transition from the USSR to today's Russia.


Davos 2013: New year, same old problems?


In 1992, Chinese Premier Li Peng used the setting here in the Alps to articulate plans for the country's economic opening up to the world. Not by chance, the architect of Washington's engagement with Beijing, the former U.S. Secretary of State Henry Kissinger also took a high profile that year.



Again only two years later in 1994, Yasser Arafat and Shimon Peres walked hand in hand on stage, holding a public dialogue leading up to the creation and recognition of the Palestinian Authority.


The World Economic Forum, as the saying goes, was positioned to be in the right place at the right time. While the author of the Magic Mountain talked about the complexity of time around World War I, in the 1990s time was compressed here.


The fall of communism, the lowering of global trade barriers, the opening up of China, the removal of apartheid in South Africa and the proliferation of the internet all unfolded in that decade.


Interactive: How's your economic mood?


As those events came together, so too did the major players as they made the journey to Davos. Michael Bloomberg, evolving as a global name in financial data and now the Mayor of New York City, sat alongside Microsoft CEO Bill Gates. U.S. President Bill Clinton outlined his party's historic move to the political center before a packed audience of global business executives.


To spice things up, rock stars and actors, as they became activists, chose the Davos platform: Bono, Richard Gere, Sharon Stone, Brad and Angelina would have the wealthiest and most powerful corporate titans freeze in their tracks.


Earlier this week, I walked into the main plenary hall as workers put the final touches on the stage and lighting. It is a venue which has welcomed countless political leaders and business executives, during internet booms and banking busts, in the midst of a Middle East crisis and even during the lead up to two Gulf Wars.


But that inter-play between geo-politics and business -- during the best and worst of times -- is what keeps the forum relevant. It allows this setting at the base of the Magic Mountain to endure and recreate something unique during what Mann rightly described as the ongoing complexity of our times.







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