Firm bringing HQ to Chicago









St. Louis-based construction firm Clayco Inc. is moving its headquarters to Chicago, attracted by ease of air travel, proximity to clients, access to young professionals and the potential to land city business as Mayor Rahm Emanuel pushes ahead with public-private partnerships for infrastructure improvements, its top executive said Thursday.

Clayco Chairman and CEO Robert Clark and Emanuel are expected to formally announce the move Friday.

Two-hundred and eighty of the company's 1,000 employees already work in the Chicago area, including 88 who work full time at the Jewelers Building, 35 E. Wacker Drive, which becomes company headquarters.

The company expects to double its Chicago workforce during the next couple of years, in part by increasing its architectural business and expanding its infrastructure business.

Clark said the company is seeking to acquire a municipal engineering company as part of an effort to develop its infrastructure business during the next few years. Now focused on industrial, office and institutional projects, the company would like to add a fourth specialty area that would go after water, sewer, road, bridge and airport work, Clark said.

"In the long run, public-private partnerships are something I'm very intrigued about and interested in pursuing," he said. "I don't think we'll do it overnight. … It may be three years from now, until we have significant traction in the (infrastructure) market."

"We're interested in national projects, not just local," he said. "But hopefully we'll have work in our own backyard."

Clayco donated $50,000 to Emanuel's mayoral campaign in late 2010, and Clark donated an additional $10,000 in September to The Chicago Committee, the mayor's campaign fund, according to the Illinois State Board of Elections. Clark said his contributions to a variety of politicians stem from personal convictions and have no relation to his business endeavors.

Tom Alexander, a spokesman for Emanuel, said: "Clayco is choosing Chicago because Chicago offers them unique access to world-class talent and a location from which they can easily and effectively do business around the world, period. Any type of private-public building project would undergo the city's very strict, competitive procurement process."

Last spring, Emanuel won City Council approval for the formation of the Chicago Infrastructure Trust, which will endeavor to secure private financing for public infrastructure projects.

Clayco's shift into downtown Chicago began in October 2010, when it opened offices in the Jewelers Building. Employees who had been based in Oakbrook Terrace have moved there, as have a handful of executives from St. Louis. Clark relocated to Chicago in September 2010.

The company did not seek or receive any financial incentives for its move, the city said. Clayco will keep its St. Louis office intact, and no layoffs are planned as part of the relocation.

Clark and Emanuel first met when Emanuel worked in the Clinton White House. Clark, who was active with the Young Presidents' Organization, worked with Emanuel on some events at the White House. Their paths have crossed a number of times since then, including during President Barack Obama's campaign in 2008.

A meeting with Emanuel played a role in the decision to relocate company headquarters, Clark said. It occupies the 13th and 27th floors of the Jewelers Building, or 30,000 square feet.

"He asked me to target our national clients and bring them here," Clark recalls. "Quite frankly, I was blown away by that. Most mayors are not that aggressive; they leave that up to their economic development folks."

Clayco has done work for a number of large institutions and corporations, including Dow Chemical, Amazon.com, Caterpillar, and locally, Kraft Foods, Anixter, the University of Illinois, the University of Chicago and Blue Cross Blue Shield.

Started 28 years ago by Clark, the privately held company has annual revenue of $820 million. Subsidiaries include architecture and design firm Forum Studios and Concrete Strategies Inc.

kbergen@tribune.com

Twitter @kathy_bergen



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Eleven dead in Damascus gas station blast


AZAZ, Syria (Reuters) - At least 11 people were killed and 40 wounded when a car bomb exploded at a crowded petrol station in the Syrian capital Damascus on Thursday, opposition activists said.


The station was packed with people queuing for fuel that has become increasingly scarce during the country's 21-month-long insurgency aimed at overthrowing President Bashar al-Assad.


The semi-official al-Ikhbariya television station showed footage of 10 burnt bodies and Red Crescent workers searching for victims at the site.


The opposition Revolution Leadership Council in Damascus said the explosion was caused by a booby-trapped car.


There was no immediate indication of who was responsible for the bombing in the Barzeh al-Balad district, whose residents include members of the Sunni Muslim majority and other religious and ethnic minorities.


"The station is usually packed even when it has no fuel," said an opposition activist who did not want to be named. "There are lots of people who sleep there overnight, waiting for early morning fuel consignments."


It was the second time that a petrol station has been hit in Damascus this week. Dozens of people were incinerated in an air strike as they waited for fuel on Wednesday, according to opposition sources.


In northern Syria, rebels were battling to seize an air base in their campaign against the air power that Assad has used to bomb rebel-held towns.


More than 60,000 people have been killed in the uprising and civil war, the United Nations said this week, a much higher death toll than previously thought.


DRAMATIC ADVANCES


After dramatic advances over the second half of 2012, the rebels now hold wide swathes of territory in the north and east, but they cannot protect towns and villages from Assad's helicopters and jets.


Hundreds of rebel fighters were attempting to storm the Taftanaz air base, near the highway that links Syria's two main cities, Aleppo and Damascus.


A rebel fighter speaking from near the Taftanaz base overnight said much of the base was still in loyalist hands but insurgents had managed to destroy a helicopter and a fighter jet on the ground.


The northern rebel Idlib Coordination Committee said the rebels had detonated a car bomb inside the base.


The government's SANA news agency said the base had not fallen and that the military had "strongly confronted an attempt by the terrorists to attack the airport from several axes, inflicting heavy losses among them and destroying their weapons and munitions".


Rami Abdulrahman, head of the opposition-aligned Syrian Observatory for Human Rights which monitors the conflict from Britain, said as many as 800 fighters were involved in the assault, including Islamists from Jabhat al-Nusra, a powerful group that Washington considers terrorists.


Taftanaz is mainly a helicopter base, used for missions to resupply army positions cut off by the rebels, as well as for dropping crude "barrel bombs" on rebel-controlled areas.


Near Minakh, another northern air base that rebels have surrounded, government forces have retaliated by shelling and bombing nearby towns.


NIGHTLY BOMBARDMENTS


In the town of Azaz, where the bombardment has become a near nightly occurrence, shells hit a family house overnight. Zeinab Hammadi said her two wounded daughters, aged 10 and 12, had been rushed across the border to Turkey, one with her brain exposed.


"We were sleeping and it just landed on us in the blink of an eye," she said, weeping as she surveyed the damage.


Family members tried to salvage possessions from the wreckage, men lifting out furniture and children carrying out their belongings in tubs.


"He (Assad) wants revenge against the people," said Abu Hassan, 33, working at a garage near the destroyed house. "What is the fault of the children? Are they the ones fighting?"


Opposition activists said warplanes struck a residential building in another rebel-held northern town, Hayyan, killing at least eight civilians.


Video footage showed men carrying dismembered bodies of children and dozens of people searching for victims in the rubble. The provenance of the video could not be independently confirmed.


In addition to their tenuous grip on the north, the rebels also hold a crescent of suburbs on the edge of Damascus, which have come under bombardment by government forces that control the center of the capital.


On Wednesday, according to opposition activists, dozens of people died in an inferno caused by an air strike on a petrol station in a Damascus suburb where residents were lining up for fuel.


The civil war in Syria has become the longest and bloodiest of the conflicts that rose out of uprisings across the Arab world in the past two years.


Assad's family has ruled for 42 years since his father seized power in a coup. The war pits rebels, mainly from the Sunni Muslim majority, against a government supported by members of Assad's Shi'ite-derived Alawite minority sect and some members of other minorities who fear revenge if he falls.


The West, most Sunni-ruled Arab states and Turkey have called for Assad to step down. He is supported by Russia and Shi'ite Iran.


(Additional reporting by Khaled Yacoub Oweis in Amman and Dominic Evans in Beirut; Writing by Peter Graff; Editing by Ruth Pitchford and Giles Elgood)



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Global shares stall, dollar up as more U.S. budget fights loom

LONDON (Reuters) - World share gains stalled and the dollar rose on Thursday as investors grew concerned about political battles looming in Washington over spending cuts, following this week's deal to avoid sharp U.S. tax hikes.


The MSCI world equity index <.miwd00000pus> dipped from an 18-month high to be down 0.15 percent at 346.7 points while the dollar hit a three-week peak against a basket of major currencies <.dxy> and oil prices fell.


Share index futures point to a weak start on Wall Street as well after stocks began the new year with their best day in over a year on Wednesday, when relief that lawmakers had reached a deal to prevent a fiscal crunch swept the markets. <.n/>


President Barack Obama and congressional Republicans now face two more months of tough talks on spending cuts and an increase in the nation's debt limit as the hard-fought deal to avert the "fiscal cliff" mainly covered taxes and delayed decisions on expenditure until March 1.


"Of the three key issues - tax increases, spending cuts and the debt ceiling - policymakers have tackled just one," said Mouhammed Choukeir, chief investment officer at Kleinwort Benson.


"The fiscal cliff issue is unresolved. This is likely to increase market volatility, supporting safe-haven assets such as gold and some commodities," he said. "Paradoxically, as the U.S. debt and deficit issues continue to make investors jittery, the dollar can be expected to remain a safe-haven asset."


The dollar was up 0.3 percent <.dxy> against a basket of major currencies at a three-week high of 80.12 on Thursday, although it slipped 0.4 percent against the yen to 87.14.


The euro, which had touched an 8-1/2 month high against the dollar on Wednesday, was down 0.2 percent at $1.3162,.


"The reality is that budget talks will continue for the next two months and could get sour," said Jane Foley, senior currency strategist at Rabobank. "We see the dollar index reclaiming some ground."


The prospect of more bitter U.S. political battles in the next few weeks over the spending cuts also halted a sell-off in U.S. Treasuries and safe-haven German government bonds.


U.S. benchmark 10-year T-note yields were unchanged at 1.837 percent, while 10-year German cash bond yields were flat at 1.44 percent


Across Europe the main share indexes in Germany <.gdaxi>, Britain <.ftse> and France <.fchi> were flat to 0.5 percent lower, having hit their own multi-month highs on Wednesday as part of the global rally in riskier asset markets.


OIL SLIPS


The dollar's strength and rising oil supplies pushed crude prices lower, with Brent slipping 0.5 percent to under $112 a barrel. U.S. crude futures were down 53 cents at $92.59.


Analysts expect oil prices to drop in 2013 as supply outweighs demand especially after U.S. crude production hit a 19-year high in 2012 and Russia pumped more oil to remain ahead of Saudi Arabia in production.


Gold followed equities lower to be down about 0.3 percent at $1,681 an ounce.


The precious metal hit its highest level in two weeks on Wednesday in the wake of the initial U.S. fiscal deal adding to gains of around 7 percent in 2012 - its 12th straight annual rise, marking one of the longest bull runs for a commodity.


"The deal to avoid a fiscal cliff has booted some problems into the long grass by a considerable distance, but there are still issues out there such as expanding the debt ceiling, which could prove to be difficult negotiations," said David Jollie, strategic analyst at Mitsui Precious Metals.


GROWTH OUTLOOK EYED


Thursday's retreat across riskier asset markets might have been sharper but for data showing activity in China's services sector and at U.S. factories had expanded in December, brightening the outlook for global growth.


China's official purchasing managers' index (PMI) for the non-manufacturing sector rose to a four-month high in December, adding to signs of a revival in the world's second-largest economy.


Investors will now turn their attention to the December U.S. employment report on Friday. This is expected to show modest job growth of around 150,000 compared with 146,000 in November.


(Additional reporting by Anooja Debnath and David Brough.; editing by David Stamp)



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Louisville upsets Florida 33-23 in Sugar Bowl


NEW ORLEANS (AP) — Terell Floyd and the Louisville Cardinals gave the embattled Big East Conference at least one more triumphant night in a major bowl — and at the expense of a top team from the mighty SEC.


Floyd returned an interception 38 yards for a touchdown on the first play, dual-threat quarterback Teddy Bridgewater directed a handful of scoring drives and No. 22 Louisville stunned the fourth-ranked Gators 33-23 in the Sugar Bowl on Wednesday night.


"I can't speak for the whole Big East, but I can speak for Louisville and I think this means a lot for us," Floyd said. "We showed the world we can play with the best."


The Big East is in a transitional phase and losing some of its top football programs in the process. Boise State has recently backed out of its Big East commitment and Louisville has plans to join the ACC.


Even this year, the Big East wasn't getting much respect. Louisville, the league champion, was a two-touchdown underdog in the Sugar Bowl.


But by the end, the chant, "Charlie, Charlie!" echoed from sections of the Superdome occupied by red-clad Cardinals fans. It was their way of serenading third-year Louisville coach Charlie Strong, the former defensive coordinator for the Gators, who has elevated Cardinals football to new heights and recently turned down a chance to leave for the top job at Tennessee.


"I look at this performance tonight, and I sometimes wonder, 'Why didn't we do this the whole season,'" Strong said. "We said this at the beginning: We just take care of our job and do what we're supposed to do, don't worry about who we're playing."


Shaking off an early hit that flattened him and knocked off his helmet, Bridgewater was 20 of 32 passing for 266 yards and two touchdowns. Among his throws was a pinpoint, 15-yard timing toss that DeVante Parker grabbed as he touched one foot down in the corner of the end zone.


"I looked at what did and didn't work for quarterbacks during the regular season," said Bridgewater, picked as the game's top player. "They faced guys forcing throws ... and coach tells me, 'No capes on your back or 'S' on your chest, take what the defense give you.' That's what I took. Film study was vital."


His other scoring strike went to Damian Copeland from 19 yards one play after a surprise onside kick by the Gators backfired. Jeremy Wright had a short touchdown run that gave Louisville (11-2) a 14-0 lead the Gators couldn't overcome.


Florida (11-2) never trailed by more than 10 points this season. The defeat dropped SEC teams to 3-3 this bowl season, with Alabama, Texas A&M and Mississippi still to play.


"We got outcoached and outplayed," Florida coach Will Muschamp said. "That's what I told the football team. That's the bottom line."


Gators quarterback Jeff Driskel, who had thrown only three interceptions all season, turned the ball over three times on two interceptions — both tipped passes — and a fumble. He finished 16 of 29 for 175 yards.


Down 33-10 midway through the fourth period, Florida tried to rally. Andre Debose scored on a 100-yard kickoff return and Driskel threw a TD pass to tight end Kent Taylor with 2:13 left. But when Louisville defenders piled on Driskel to thwart the 2-point try, the game was essentially over.


Florida didn't score until Caleb Sturgis's 33-yard field goal early in the second quarter.


The Gators finally got in the end zone with a trick play in the closing seconds of the half. They changed personnel as if to kick a field goal on fourth-and-goal from the 1, but lined up in a bizarre combination of swinging-gate and shotgun formations and handed off to Matt Jones.


The Gators tried to keep the momentum with a surprise onside kick to open the third quarter, but not only did Louisville recover, Florida's Chris Johnson was called for a personal foul and ejected for jabbing at Louisville's Zed Evans. That gave Louisville the ball on the Florida 19, from where Bridgewater needed one play to find Copeland for his score.


"We game-planned it and felt good about it," Muschamp said of the onside kick attempt. "We wanted to steal a possession at the start of the second half."


On the following kickoff, Evans cut down kick returner Loucheiz Purifoy with a vicious low, high-speed hit that shook Purifoy up. Soon after, Driskel was sacked hard from behind and stripped by safety Calvin Pryor, ending another Florida drive with a turnover.


"We had the right attitude, had the right mindset that we would go out and beat this team," Pryor said.


After Louisville native Muhammad Ali was on the field for the coin toss, the Cardinals quickly stung the Gators. Floyd, one of nearly three dozen Louisville players from Florida, made the play.


Driskel was looking for seldom-targeted Debose, who'd had only two catches all season.


"I threw it behind him, (he) tried to make a play on it, tipped it right to the guy," Driskel said. "Unfortunate to start the game like that."


When Louisville's offense got the ball later in the quarter, the Florida defense, ranked among the best in the nation this season, sought to intimidate the Cardinals with one heavy hit after another.


One blow by Jon Bostic knocked Bridgewater's helmet off moments after he'd floated an incomplete pass down the right sideline. Bostic was called for a personal foul, however, which seemed to get the Cardinals opening drive rolling. Later, Wright lost his helmet during a 3-yard gain and took another heavy hit before he went down.


Louisville kept coming.


B.J. Butler turned a short catch into a 23-yard gain down to the Florida 1. Then Wright punched it in to give the Cardinals an early two-TD lead over a team that finished third in the BCS standings, one spot too low to play for a national title in Miami.


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APNewsBreak: Feds say delay worsened oil spill






BILLINGS, Mont. (AP) — Delays in Exxon Mobil Corp.‘s response to a major pipeline break beneath Montana’s Yellowstone River made the spill far worse than it otherwise would have been, federal regulators said.


Department of Transportation investigators examining the spill said pipeline controllers in Houston could have reduced the volume of the 1,500-barrel spill by about two-thirds if they isolated the rupture as soon as problems emerged.






Instead, crude drained from the severed, 12-inch pipeline for another 46 minutes before a remote control valve near the river was finally closed.


The July 1, 2011, spill fouled 70 miles of the riverbank along the scenic Yellowstone.


A copy of the investigators’ report was provided to The Associated Press by the office of Montana U.S. Sen. Max Baucus.


The investigators’ report chalks up the immediate cause of the spill to floodwaters that undermined the pipeline and left it exposed. As debris washing downriver piled up on the line, the pressure on the increased and it broke.


Investigators said that if Exxon‘s emergency procedures had called for the immediate closure of upstream valves, “the crude oil release volume would have been much less and the location of the release would have been identified far more quickly.”


The report also faulted Exxon for not having contingency plans in place to notify pipeline controllers that the Yellowstone was flooding.


Investigators, however, found little fault in the steps the company took in the lead-up to the spill.


Despite warnings from city officials in Laurel that the riverbank was eroding, Exxon continued to run crude beneath the Yellowstone after a survey found a section of pipeline leading away from the river was still buried more than 6 feet deep.


Exxon’s “field observations and their … depth of cover survey took reasonable precautions to address the flooding of the Yellowstone River it the spring and early summer of 2011,” the investigators wrote.


The investigation into the spill remains open. Whether any violations occurred remains under review, said spokesman Damon Hill with the Department of Transportation‘s Pipeline and Hazardous Materials Safety Administration.


Exxon Mobil spent $ 135 million on its response to the spill, including cleanup and repair work.


An Exxon spokeswoman said Wednesday the company still was analyzing the report.


“We will continue to work cooperatively with the (Pipeline and Hazardous Materials Safety Administration) on any follow up actions,” spokeswoman Rachael Moore said. She added that Exxon “is committed to learning from these events.”


Landowners along the river have sued the company saying it did not do enough to prevent the spill and should have shut down the line during flooding.


Energy News Headlines – Yahoo! News





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How Donald Trump hijacks U.S. media






STORY HIGHLIGHTS


  • Howard Kurtz: Donald Trump said the GOP can go nuclear in budget showdown

  • Kurtz: It's remarkable that Trump draw attention no what what he says

  • He says it's so easy to hijack the media in the age of Twitter

  • Kurtz: Journalists like sexy stories but shouldn't lose focus of what's important




Editor's note: Howard Kurtz is the host of CNN's "Reliable Sources" and is Newsweek's Washington bureau chief. He is also a contributor to the website Daily Download.


(CNN) -- After a year of national gridlock that ended on the precipice of a cliff, Donald Trump went nuclear.


The man who called Barack Obama's re-election a travesty said Republicans could gain control of the budget showdown because they "are sitting there with a nuclear weapon": the specter of voting against a rise in the debt ceiling in the coming weeks. In other words, the GOP could get its way by again threatening to push the country into default.


The remarkable thing here is not Trump's apocalyptic advice but that the man who still doesn't concede that the president was born in Hawaii draws attention no matter what he says. The colorful businessman has a knack for hijacking the media -- and he's hardly alone.


Watch: Hey Fox, Hillary Clinton was sick after all



Howard Kurtz

Howard Kurtz



In fact, one of the most striking developments in recent years is how easy it is to carry out the hijacking. You don't need a weapon, nuclear or otherwise. You don't have to be a famous zillionaire to pull it off. In the Twitter age, almost anyone can capture the spotlight for 15 seconds.



We're so easy. If it's new, novel or naughty, we are there.


A critical mass of tweeters hijacked the presidential debates by turning Big Bird and "binders full of women" into trending topics. What, you thought what was most important was what the candidates said during those 90-minute face-offs? Nope, it's just as much about winning the post-game chatter. A single "oops" by Rick Perry enables the press to wipe out everything else that was said.


Watch: Are critics being too harsh on Chelsea Clinton?


Clint Eastwood, telling Obama (in the guise of an empty chair) to perform an anatomically impossible act? That hijacked Mitt Romney's convention.


Eric Fehrnstrom inadvertently hijacked his boss' campaign when he compared Romney's election strategy to an Etch A Sketch. Nothing like a kid's toy to seize the attention of grown-up journalists.


Any invocation of a celebrity has great hijacking potential, even if the story is a sprinkling of fairy dust.


The political press recently surrendered to the notion that Ben Affleck might run for John Kerry's Senate seat in Massachusetts. This was based on nothing more than local chatter, amplified by Politico. Affleck shrewdly kept the door ajar -- such speculation helps in the gravitas department --but on Christmas Eve, he gave the press a lump of coal by admitting he wasn't running.


Watch: Were the media swept away by fiscal cliff madness?


Next the media got excited by the idea that Ted Kennedy Jr. would run for office -- until he quickly popped that trial balloon.


Sometimes the hijacker wants no part of the limelight but is swept along for the ride.


Paula Broadwell was embedded in the nation's consciousness for weeks after her affair with David Petraeus prompted his resignation as CIA director. And her romantic rival, Jill Kelley, became a captive as well.


Racial tension can grab the media's attention like few other issues.


There are more than 15,000 murders annually in the United States, but only a few move beyond local headlines. The killing of Trayvon Martin, initially overlooked even in Florida, became a national sensation once activists persuaded the media that race played a role in the teenager's shooting (a perception deepened by NBC's misleading editing of George Zimmerman's 911 call). Week after week of routine murders in cities such as Chicago barely register on the radar.


Most journalists gravitate toward sensational and sexy stories (and I haven't been immune to the temptation) because we want the clicks and the ratings. And perhaps to alleviate our own boredom with the daily grunt work of reporting. The on-and-off negotiations over the fiscal cliff have been tedious and incremental. Along comes Trump and boom, you've got an easy headline.


The problem with all this media hijacking goes beyond the strange twists and turns along the way. It's that we cede control of what's important.


Follow us on Twitter @CNNOpinion


Join us on Facebook/CNNOpinion


The opinions expressed in this commentary are solely those of Howard Kurtz.






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Sandy Hook kids return to class in neighboring town









MONROE, Conn. — The Newtown schools superintendent says preparations have been made for a "normal" day, yet it will likely be anything but that when classes resume for Sandy Hook Elementary School students for the first time since a gunman killed 20 of their classmates.


With their original school still being treated as a crime scene, the students will begin attending classes at a refurbished school in the neighboring town of Monroe on Thursday. Law enforcement officers have been guarding the new school, and by the reckoning of police, it is "the safest school in America."


Still, Newtown Superintendent Janet Robinson said officials will do their best to make the students feel at ease.











"We will go to our regular schedule," she said. "We will be doing a normal day."


On Wednesday, the students and their families were welcomed at an open house at their new school, which was formerly the Chalk Hill Middle School in Monroe but renamed as the Sandy Hook Elementary School. Students received gift boxes with toys inside and shared joyful reunions with teachers.


One father, Vinny Alvarez, took a moment to thank his third-grade daughter's teacher, Courtney Martin, who protected the class from a rampaging gunman by locking her classroom door and keeping the children in a corner.


"Everybody there thanked her in their own way," he said.


Parents wishing to remain with their kids, ages 5 to 10 in kindergarten through grade 4, will be allowed to accompany them to their classrooms and afterwards may stay in the school's "lecture room" for as long as they like, according to a memo to parents on the school's website. Counseling will be available for students and parents at the new school, about 7 miles south of the scene of the shooting.


The gunman, Adam Lanza, also killed his mother at the home they shared in Newtown before driving to the school, where he slaughtered 20 children and six educators, including the school's principal. Lanza fatally shot himself as police arrived. Police haven't released any details about a motive.


Numerous police officers on Wednesday guarded the outside of the Monroe school, which is about 7 miles from the old school, and told reporters to stay away.


"I think right now it has to be the safest school in America," Monroe police Lt. Keith White said.


Teachers attended staff meetings at the new school on Wednesday morning and were visited by Gov. Dannel P. Malloy before the open house, White said.


Robinson said Chalk Hill School has been transformed into a "cheerful" place for the surviving students to resume normal school routines. She said mental health counselors continue to be available for anyone who needs them.


During the open house, Alvarez said his 8-year-old daughter also got to pick out a stuffed animal to take home from the school library.


"I'm not worried about her going back," he said of his daughter Cynthia. "The fear kind of kicks back in a little bit, but we're very excited for her and we got to see many, many kids today. The atmosphere was very cheerful."


Several signs welcoming the Sandy Hook students to their new school were posted along the road leading to the school in a rural, mostly residential neighborhood. One said "Welcome Sandy Hook Elementary Kids," while a similar sign added "You are in our prayers."


Teams of workers, many of them volunteers, prepared the Chalk Hill school with fresh paint and new furniture and even raised bathroom floors so the smaller elementary school students can reach the toilets. The students' desks, backpacks and other belongings that were left behind following the shooting were taken to the new school to make them feel at home.


No new details released


In the meantime, no new details have emerged to explain why the 20-year-old Lanza, armed with a semi-automatic assault rifle, two other firearms and hundreds of rounds of ammunition, targeted the school.


Described by family friends as having Asperger's syndrome, a form of autism, Lanza shot and killed his mother, Nancy Lanza, at their home about 5 miles from the school before driving to Sandy Hook and embarking on the massacre, police said. He then took his own life as police were arriving at the school, which had an enrollment of 456.

Police have offered no firm motive for the attack, and state police investigators have said it could be months before they finish their report.

The massacre in Newtown, a rural New England town of 27,000 residents about 70 miles northeast of New York City, stunned the nation, prompting President Barack Obama to call it the worst day of his presidency and reigniting an extensive debate on gun control. Obama has tasked Vice President Joe Biden with assembling a package of gun-control proposals to submit to Congress in the next several weeks.

The National Rifle Association, the most powerful gun-rights lobby in the United States, has rebuffed calls for more stringent firearms restrictions and instead called for armed guards to patrol every public school in the country.


Associated Press and Reuters contributed





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Myanmar says jets used against Kachin rebels


YANGON (Reuters) - Myanmar's military has used jets to attacks rebel fighters in northern Kachin state, the government said on Thursday, its first admission of an intensification of a conflict that has raised doubts about its reformist credentials.


Rebel sources have reported aerial bombings, shelling and even the use of chemical weapons since December 28 after the Kachin Independence Army (KIA) ignored an ultimatum to stop blocking an army supply route in the hilly, resource-rich state where more than 50,000 people have been displaced.


Official newspapers said that air support was used on December 30 to thwart KIA fighters who had occupied a hill and were attacking logistics units of the Tatmadaw, as Myanmar's military is known.


"The Tatmadaw troops cleared Point-771 hill and its surrounding areas where the KIA troops were attacking the Tatmadaw logistic troops," the New Light of Myanmar, a government mouthpiece, said. "The air cover was used in the attack."


U.N. Secretary-General Ban Ki-moon voiced concern on Wednesday over reports of helicopters and fighter jets being used in the state bordering China. The KIA said the attacks were intended to clear the path for an assault on its headquarters in Laisa.


Ban called on Myanmar's government to "desist from any action that could endanger the lives of civilians" and reiterated demands for humanitarian aid groups to be granted access, U.N. spokesman Martin Nesirky said in a statement.


President Thein Sein's quasi-civilian administration insists it wants a ceasefire and political dialogue. It says troops have acted only in self-defense and on Thursday denied having plans to seize the KIA's stronghold.


DOMINANT MILITARY


The escalation of fighting has raised doubts about the sincerity of the reformist ex-generals running the government and the extent of their power in a country the size of Britain and France plagued by decades of internal conflict.


Some analysts and diplomats say central government is either not fully committed to peace with the KIA or unable to assert control over the military, which still dominates politics and the economy despite formally ceding power in March 2011.


Colonel James Lum Dau, a Thai-based spokesman for the KIA's political wing, said Kachin officials on the ground had reported up to 300 people killed in air strikes.


"We are in a defensive position. Right now more people are suffering not only bombings, but shelling and spraying of chemical weapons with helicopter gunships and jets," he said. "Only god knows what to do. We are praying."


It is difficult for journalists to independently verify accounts from the two sides.


Fighting erupted in Kachin in June 2010, ending a 17-year truce, and has continued even as government negotiators have agreed ceasefires elsewhere with ethnic Shan, Chin, Mon and Karen militias after decades of fighting in border areas.


Mistrust runs deep between the military and the KIA, which was once backed by China, and multiple rounds of talks aimed at reaching a ceasefire have gone nowhere. Analysts say a history of bad blood and a battle for control of resources, including highly lucrative jade, could be stoking the unrest.


Zaw Htay, a senior official in Thein Sein's office, told Reuters no air strikes had taken place but K-8 trainer jets had provided cover fire to protect ground troops from rebel attacks. The military, he said, had no intention of seizing the KIA's headquarters.


"The president has said this and at the same time he has invited KIA leaders to come and talk with him in Naypyitaw, but they still haven't responded," Zaw Htay said.


(Additional reporting by Paul Carsten in Bangkok; Writing by Martin Petty; Editing by Alan Raybould)



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Stock futures surge, Wall Street set for rally on fiscal deal

NEW YORK (Reuters) - Stock futures surged on Wednesday, setting up Wall Street to rally in the first trading session of the new year, after U.S. lawmakers passed a bill preventing huge tax hikes and spending cuts that threatened to jeopardize economic growth.


* The House of Representatives voted for a bill, which the Senate passed on Monday, that will raise taxes on wealthy individuals and families and preserve certain benefits. Together, these measures will soften some of the blow to the U.S. economy that would have resulted without a deal to avoid a fiscal crunch.


* The vote averted immediate pain like tax hikes for almost all U.S. households, although it did nothing to resolve other political showdowns on the budget that loom in coming months. Spending cuts of $109 billion in military and domestic programs were only delayed for two months.


* S&P 500 futures rose 22 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 171 points, and Nasdaq 100 futures added 42.50 points.


* European shares rallied across the board at the start of the new year. Asian shares also rallied, with the MSCI Asia Pacific ex-Japan index of stocks <.miapj0000pus> gaining 2.1 percent. Japanese markets were closed on Wednesday for a holiday.


* On the macroeconomic front, the Institute for Supply Management's manufacturing sector survey will be released at 10 a.m. ET (1500 GMT). A Reuters survey forecasts the main index at 50.3 compared with 49.5 in November.


* Also at 10 a.m., November construction spending data will be released. A Reuters survey forecasts a 0.6 percent rise in construction spending, versus 1.4 percent in the prior month.


* U.S. stocks ended 2012 with their strongest day in more than a month, putting the S&P 500 up 13.4 percent for the year, compared with a flat performance in 2011.


* The Dow Jones industrial average <.dji> gained 166.03 points, or 1.28 percent, to end at 13,104.14. The Standard & Poor's 500 Index <.spx> gained 23.76 points, or 1.69 percent, to finish at 1,426.19. The Nasdaq Composite Index <.ixic> gained 59.20 points, or 2.00 percent, to close at 3,019.51.


* The Dow rose 7.3 percent in 2012 and the Nasdaq climbed 15.9 percent.


(Reporting By Angela Moon; Editing by Chizu Nomiyama)



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Stanford holds off Wisconsin 20-14 in Rose Bowl


PASADENA, Calif. (AP) — Andrew Luck, Toby Gerhart and coach Jim Harbaugh started Stanford's improbable football renaissance, yet they never stood in the center of the Rose Bowl with the West Coast's most coveted trophy raised above their heads.


In fact, the last Stanford team to do what the Cardinal did Tuesday night had a defense known as the Thunderchickens.


Forty years after Stanford's last Rose Bowl victory, the favored Cardinal lived up to the legacy created by Luck, Harbaugh and every Thunderchicken that came before them by winning the bowl game that matters most to any Pac-12 team.


Stepfan Taylor rushed for an early touchdown, Kevin Hogan passed for 123 yards and No. 8 Stanford's defense shut out the Badgers in the second half of a 20-14 victory in the 99th Rose Bowl.


"I had heard that 1972 was our last win," said Hogan, the freshman quarterback who won Stanford's last five games. "It's been too long since we've had one at The Farm. It's a great feeling."


Instead of slipping back off the college football map when their biggest names graduate to NFL glory, the Cardinal (12-2) have just kept getting better under coach David Shaw. After winning the Orange Bowl two years ago and losing the Fiesta Bowl in overtime last season, Stanford followed up with its first conference title and its first trip to the Granddaddy of Them All in 13 years.


Stanford's unique combination of brains and brawn was too much for its opponents during eight straight wins to close the season.


"We've been in BCS games the past two years, but neither of those mean as much as this one did," said Zach Ertz, the tight end who had three catches for 61 yards. "This is the one we play for every year. It shows Stanford is here to stay."


Usua Amanam capped the defensive performance with an interception that stopped Wisconsin's final drive at midfield with 2:30 to play in a grind-it-out game. Stanford allowed the Badgers just 82 yards and four first downs after halftime.


"There's a sense of accomplishment, because we got somewhere we hadn't been yet," said linebacker Shayne Skov, who made eight tackles while leading Stanford's second-half shutout. "If you looked at our goals at the beginning of the season, this was on top of the list, and we got it done. We're extremely satisfied."


The Cardinal finished with 12 victories for just the second time in school history — and the second time in the last three years.


Stanford clamped down on the Big Ten champion Badgers (8-6), who lost the Rose Bowl in heartbreaking fashion for the third consecutive season. Montee Ball rushed for 100 yards and his FBS-record 83rd touchdown, but Wisconsin couldn't score after the final seconds of the first half.


With an impressive defense of its own, Wisconsin stayed in position for an upset in the one-game return of Hall of Fame coach Barry Alvarez, who was back on the Badgers' sideline in his red sweater-vest seven years after hanging up his whistle.


"This group of kids has been through a lot, and they competed extremely hard against a very high-quality team," said Alvarez, who nearly pulled off a stunner while bridging the gap between coaches Bret Bielema and Gary Andersen. "We've played three very good football games (at the Rose Bowl). These guys played hard. In fact, most people would like to get here once. But we just didn't get it done."


Kelsey Young took his only carry 16 yards for a score on Stanford's opening possession, and Taylor scored on the second drive after a big catch by Ertz. Wisconsin kept the Cardinal out of the end zone for the final 51 minutes, holding them to three points in the second half, but Stanford's defense didn't need any more help.


When Bielema abruptly left Wisconsin for Arkansas after winning the Big Ten title game, Alvarez agreed to coach his fourth Rose Bowl before handing off his program to Andersen, who met with Alvarez on the field before the game. But the Badgers' third consecutive January in Pasadena ended in much the same way as the last two: With the offense failing to get the late score the Badgers desperately needed.


"This stings just as much, because we fell extremely short when we had the opportunity to win," Ball said. "We had numerous opportunities to capitalize on big plays, and we fell short. ... This is not the way we want to be remembered. Speaking for the entire senior group, this is not the way we wanted to go out."


Curt Phillips went 10 for 16 for 83 yards passing and that crucial interception for Wisconsin, doing more with 64 yards on the ground. Jordan Fredrick caught his first career TD pass right before halftime, but no Badgers receiver had more than Jared Abbrederis' three catches.


And though Ball became the first player to score touchdowns in three Rose Bowls, the powerful back fell short of Ron Dayne's career Rose Bowl rushing record, swarmed under by waves of tacklers from one of the toughest defenses in the nation — a defense that shut down the top-ranked Ducks in mid-November to pave Stanford's path to Pasadena.


Wisconsin became the first five-loss team to make the Rose Bowl by steamrolling Nebraska in the conference title game, becoming the first Big Ten team in three straight Rose Bowls since Michigan in the late 1970s.


With the Rose Bowl filled with fans wearing the schools' near-identical cardinal-and-white gear, Stanford went up 14-0 on Taylor's 3-yard TD run just 8½ minutes in. Wisconsin briefly got rolling behind Ball, who rushed for 296 yards in his first two Rose Bowls.


Stanford stopped James White inside the 1 on fourth down early in the second quarter, but Ball scored on the next drive. The Badgers then mounted an 85-yard drive in the waning minutes of the first half ending with Fredrick's short TD catch.


After a scoreless third quarter, Wisconsin's personal foul on a fair-catch punt return finally sparked the Cardinal early in the fourth. Stanford got inside the Wisconsin 5 before stalling, and Jordan Williamson's short field goal put the Cardinal up by six points with 4:23 to go.


The Badgers got to midfield, but Phillips threw behind Jacob Pedersen, and Amanam easily made the pick.


"I just happened to be at the right place at the right time," Amanam said. "We were able to kind of seal the game on that one."


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