Stricken cruise ship reported awash in raw sewage nears port









MOBILE, Alabama—





More than 4,200 people trapped aboard the crippled cruise ship Carnival Triumph, having endured days of overflowing toilets, should return to land when tugboats haul the vessel into Mobile, Alabama late on Thursday.

The 893-foot vessel has been without propulsion and running on emergency generator power since Sunday, when an engine room fire left it adrift in the Gulf of Mexico.






Operated by Carnival Cruise Lines, the flagship brand of global cruise ship giant Carnival Corp, the ship left Galveston, Texas a week ago carrying 3,143 passengers and 1,086 crew. It was supposed to return there on Monday.

Carnival Corp spokesman Vance Gulliksen in Miami said the Triumph was expected to arrive in Mobile at between 8 p.m. and 11 p.m. CST on Thursday night.

"This is going to be a long day," Terry Thornton, a senior Carnival Cruise Lines vice president, told reporters at the port in Mobile.

He said the ship, which he described as "in excellent shape" after additional provisions were laid in on Wednesday, was near the sea buoy at the entrance to Mobile Bay late on Thursday morning. Getting from the buoy into port normally takes about three hours, Thornton said.

"There is no way we could actually speed up the process to get the ship alongside sooner," he said. "We're making every effort we can to get the ship alongside here in Mobile as quickly as possible."

A Coast Guard cutter has been escorting the Triumph on its long voyage into port since Monday, and a Coast Guard helicopter ferried about 3,000 pounds of equipment including a generator to the stricken ship late on Wednesday.

Earlier in the week, some passengers reported on the poor conditions on the Triumph when they contacted relatives and media before their cellphone batteries died.

They said people were getting sick and passengers had been told to use plastic "biohazard" bags as makeshift toilets.

MORE COMPENSATION

Carnival Cruise Lines President and Chief Executive Gerry Cahill said in a statement late on Wednesday that the company had decided to add further payment of $500 per person to help compensate passengers for "very challenging circumstances" aboard the ship.

"We are very sorry for what our guests have had to endure," Cahill said.

Mary Poret, who spoke to her 12-year-old daughter aboard the Triumph on Monday, rejected Cahill's apology out of hand in comments to CNN on Thursday, as she waited anxiously in Mobile with a friend for the Triumph's arrival.

"Seeing urine and feces sloshing in the halls, sleeping on the floor, nothing to eat, people fighting over food, $500? What's the emotional cost? You can't put money on that," Poret said.

The troubles on the Carnival Triumph occurred a little more than a year after 32 people were killed when the Costa Concordia, a luxury cruise ship operated by Carnival Corp's Costa Cruises brand, was grounded on rocks off the Tuscan island of Giglio in Italy.

Carnival Corp Chairman and CEO Micky Arison faced criticism in January last year for failing to travel to Italy and take personal charge of the Costa Concordia crisis, which unleashed numerous lawsuits against his company.

The cruise ship mogul has taken a low-key approach to the Triumph situation as well, even as it grabbed a growing share of the U.S. media spotlight. His only known public appearance since Sunday was courtside on Tuesday at a game played by his championship Miami Heat basketball team.

Carnival Corp shares were down $0.12 at $37.34 in early afternoon trading on Thursday on the New York Stock Exchange. The shares closed down 4 percent at $37.46 on Wednesday after the company said voyage disruptions and repair costs related to Carnival Triumph could shave up to 10 cents per share off its second-half earnings.

Carnival said it had initially planned to tow the Triumph into Progreso in Mexico, the closest port to its location early on Sunday when the engine room fire occurred. But the ship drifted about 90 nautical miles north, due to strong currents, before the towing got under way, and that left it stranded roughly midway between Progreso and Mobile.

(Writing and additional reporting by Tom Brown; Editing by Leslie Gevirtz)



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"Blade Runner" Pistorius charged with murdering girlfriend


JOHANNESBURG (Reuters) - South African "Blade Runner" Oscar Pistorius, a double amputee who became one of the biggest names in world athletics, was charged on Thursday with shooting dead his girlfriend at his upscale home in Pretoria.


Police said they opened a murder case after a 30-year-old woman was found dead at the Paralympic and Olympic star's house in the Silverlakes gated complex on the capital's outskirts.


Pistorius, 26, and his girlfriend, model Reeva Steenkamp, had been the only people in the house at the time of the shooting, police brigadier Denise Beukes told reporters, adding witnesses had been interviewed about the early morning incident.


"We are talking about neighbors and people that heard things earlier in the evening and when the shooting took place," Beukes said outside the heavily guarded residential complex.


Police said a 9mm pistol had been found at the scene.


Beukes said police were aware of previous incidents at the Pistorius house. "I can confirm that there has previously been incidents at the home of Mr Oscar Pistorious, of allegations of a domestic nature," she said.


Pistorius, who uses carbon fiber prosthetic blades to run, is due to appear in a Pretoria court on Friday.


"He is doing well but very emotional," his lawyer Kenny Oldwage told SABC TV, but gave no further comment.


A sports icon for triumphing over disability to compete with able-bodied athletes at the Olympics, his sponsorship deals, including one with sports apparel group Nike, are thought to be worth $2 million a year.


South Africa's M-Net cable TV channel said it was pulling adverts featuring Pistorius off air immediately after blanket coverage of the arrest in a country more used to honoring Pistorius as a national hero.


"WE ARE ALL DEVASTATED"


Steenkamp's colleagues in the modeling world were distraught. "We are all devastated. Her family is in shock," her agent, Sarita Tomlinson, tearfully told Reuters. "They did have a good relationship. Nobody actually knows what happened."


Pistorius, who was born without a fibula in both legs, was the first double amputee to run in the Olympics and reached the 400-metre semi-finals in London 2012.


In last year's Paralympics he suffered his first loss over 200 meters in nine years. After the race he questioned the legitimacy of Brazilian winner Alan Oliveira's prosthetic blades, though he was quick to express regret for the comments.


South Africa has some of the world's highest rates of violent crime, and many home owners have weapons to defend themselves against intruders, although Pistorius's complex is surrounded by a three-meter high wall and electric fence.


In 2004, Springbok rugby player Rudi Visagie shot dead his 19-year-old daughter after he mistakenly thought she was a robber trying to steal his car in the middle of the night.


Before the murder charge was announced, Johannesburg's Talk Radio 702 said the athlete may have mistaken Steenkamp for a burglar.


Pistorius was arrested in 2009 for assault after slamming a door on a woman and spent a night in police custody. Family and friends said it was just an accident and charges were dropped.


OLYMPIAN UNDERGOES POLICE TESTS


Steenkamp, a regular on the South African social scene, was reported to have been dating Pistorius for several months.


In the social pages of last weekend's Sunday Independent she described him as having "impeccable" taste. "His gifts are always thoughtful," she was quoted as saying.


Some of her last Twitter postings indicated she was looking forward to Valentine's Day on Thursday. "What do you have up your sleeve for your love tomorrow???" she posted.


Pistorius was on Thursday being processed through the police system. "At this stage he is on his way to a district surgeon for medical examination," the police brigadier said.


"When a person has been accused of a crime like murder they look at things like testing under the finger nails, taking a blood alcohol sample and all kinds of other test that are done. They are standard medical tests," Beukes said.


Pistorius is also sponsored by British telecoms firm BT, sunglasses maker Oakley and French designer Thierry Mugler.


"We are shocked by this terrible, tragic news. We await the outcome of the South African police investigation," a BT spokeswoman said before Pistorius was charged.


A Nike spokesman in London said before hearing of the murder charge that the company was "saddened by the news, but we have no further comment to make at this stage".


Pistorius also has a sponsorship deal with Icelandic prosthetics manufacturer Ossur.


"I can only say that our thoughts and prayers are with Oscar and the families involved in the tragedy," Ossur CEO Jon Sigurdsson told Reuters. "It is completely premature to discuss or speculate on our business relationship with him."


Neighbors expressed shock at the arrest of a "good guy".


"It is difficult to imagine an intruder entering this community, but we live in a country where intruders can get in wherever they want to," said one Silverlakes resident, who did not want to be named.


"Oscar is a good guy, an upstanding neighbor, and if he is innocent I feel for this guy deeply," he said.


(Additional reporting by Sherilee Lakmidas, David Dolan, Ed Cropley, Jon Herskovitz, Keith Weir and Kate Holton; Writing by Ed Cropley; Editing by Will Waterman)



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Wall Street pauses after rally to five-year high

NEW YORK (Reuters) - Stocks drifted in light volume on Wednesday, ending little changed, as investors remained cautious after the S&P 500 index briefly hit its highest intraday level since November 2007.


The S&P 500 was buoyed by General Electric after cable company Comcast Corp said it will buy from GE the the part of NBCUniversal it didn't already own for $16.7 billion.


Comcast's stock hit the highest since 1999 before closing up 3 percent at $40.13 and GE gained 3.6 percent to $23.39.


The S&P 500 is up 6.6 percent so far this year, partly due to stronger-than-expected corporate earnings and a better economic outlook. The Dow industrials is about 1 percent away from an all-time intraday high, reached in October 2007.


Volume has been weak in recent days with the S&P moving sideways around 1,520. The index is about 3 percent away from closing at a record high.


A scarcity of sellers after a consistent string of gains is a positive sign and shows the uptrend is intact, King Lip, chief investment officer at Baker Avenue Asset Management in San Francisco, said.


"Last year we had double-digit returns in the first quarter. It's fairly possible we can move higher from here," he said.


The Dow Jones industrial average <.dji> fell 35.79 points or 0.26 percent, to 13,982.91, the S&P 500 <.spx> gained 0.9 point or 0.06 percent, to 1,520.33 and the Nasdaq Composite <.ixic> added 10.38 points or 0.33 percent, to 3,196.88.


The S&P gained 12 percent in the first three months of 2012.


Deere & Co , the world's largest farm equipment maker, forecast a modest increase in sales this year despite the prospect of the biggest corn crop in U.S. history. The forecast fell short of analysts' expectations, sending shares of Deere down 3.5 percent to $90.68.


In extended trading, shares of technology bellwether Cisco Systems fell 2 percent after it posted results.


Dr Pepper Snapple fell 5.8 percent to $42.69 after it forecast profit for the current year below analysts' estimates.


Cliffs Natural Resources lost a fifth of its market value a day after the miner reported a quarterly loss and slashed its dividend by 76 percent. Its shares fell 20 percent to 429.29.


According to the latest Thomson Reuters data, of the 364 companies in the S&P 500 that have reported results, 70.3 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters.


About 5.9 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average in February last year of 6.94 billion.


On the NYSE, roughly seven issues rose for every five that fell and on Nasdaq more than six rose for every five decliners.


(Editing by Kenneth Barry and Bernadette Baum)



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Jacques Rogge to meet with wrestling leader


LAUSANNE, Switzerland (AP) — Facing a wave of criticism from around the world, IOC President Jacques Rogge will meet with the head of wrestling's governing body to discuss ways the sport can fight to save its place in the Olympics.


The IOC executive board dropped wrestling from the program of the 2020 Games on Tuesday, a decision which brought a sharp backlash from wrestling organizations and national Olympic bodies around the world — including the United States, Russia and Iran.


The move must still be ratified by the full International Olympic Committee in September, giving wrestling time to try to overturn a decision against a sport which dates back to the ancient Olympics and has been featured since the inaugural modern games in 1896.


Rogge said Wednesday he has been contacted by Raphael Martinetti, the Swiss president of international wrestling federation FILA, and was encouraged by the sport's resolve to make changes and fight for its place.


"We agreed we would meet at the first opportunity to have discussions," Rogge said at a news conference at the close of a two-day board meeting. "I should say FILA reacted well to this disheartening news for them.


"They vowed to adapt the sport and vowed to fight to be eventually included in the 2020 slot."


Wrestling, which remains on the program for the 2016 Olympics in Rio de Janeiro, still has a chance to stay on the list for 2020 — if it manages to respond decisively to the wakeup call and convince the IOC to reverse course.


"This is not the end of the day. The door is not closed," IOC Vice President Thomas Bach of Germany said. "It's good to see the reaction of FILA to say, 'OK we have understood, we have to do something and we will present a plan for the future of wrestling.' That is the right attitude."


Wrestling now joins seven other sports vying for one opening on the 2020 program: a combined bid from baseball and softball, karate, squash, roller sports, sport climbing, wakeboarding and the martial art of wushu.


The IOC executive board will meet in May in St. Petersburg, Russia, to decide which sport or sports to propose for 2020 inclusion. The final vote will be made at the IOC general assembly in September in Buenos Aires, Argentina.


"The vote of yesterday is not an elimination of wrestling from the Olympic Games," Rogge said. "Wrestling will participate in the games in Rio de Janeiro. To the athletes who train now, I say, 'Continue training for your participation in Rio. Your federation is working for the inclusion in the 2020 Games.'"


Rogge was asked whether Tuesday's decision marked an end to wrestling's Olympic hopes.


"I cannot look into a crystal ball into the future," he said. "We have established a fair process by which the sport that would not be included in the core has a chance to compete with the seven other sports for the slot on the 2020 Games."


Rogge said he was fully aware of the strength of criticism leveled at the IOC for the move.


"We knew even before the decision was taken whatever sport would not be included in the core program would lead to criticism from the supporters of that sport," he said.


Still, complaints continued to pour in Wednesday from different parts of the world, uniting the U.S. and Iran on an issue in ways never imagined in diplomatic circles. The U.S. and Russia were also unlikely allies in the save-wrestling campaign.


Alexander Zhukov, head of the Russian Olympic Committee, said he would write to Rogge and "use all of our strength to persuade the IOC not to exclude wrestling from the Olympic program."


Wrestling has been one of Russia's strongest sports: Soviet and Russian wrestlers have won 77 gold medals.


In Tehran, Iranian wrestler Ali Reza Dabir, a gold medalist in 2000 Sydney Games, called wrestling "the identity" of the Olympics.


"Do we destroy our historical sites which are symbols of humanity?" he told The Associated Press. "No. Then, why should we destroy wrestling?"


The Wrestling Federation of India said it would do all that it can to reverse the decision, and the Olympic committee in Greece — the birthplace of the ancient and modern games — condemned "a decision that is clearly in total opposition to the history of the Olympic Games and of sports in general."


On Tuesday, U.S. Olympic Committee CEO Scott Blackmun questioned the IOC decision "given the history and tradition of wrestling, and its popularity and universality."


There are potential scenarios that would work in wrestling's favor.


IOC officials said it's possible the executive board could decide in May to put three sports forward for consideration, including wrestling. Then it would be up to the assembly to approve wrestling or not.


If the board decides to keep wrestling off the list, the IOC assembly — which has resisted past attempts by the board to impose changes to the sports program — could reject the proposed list of 25 sports altogether. That would mean the current 26 sports, including wrestling, would stay and the whole process would go back to square one.


Modern pentathlon — a five-sport discipline dating back to the 1912 Games — had been widely expected to face removal from the program but lobbied successfully to save its status.


IOC member Richard Carrion of Puerto Rico, who served on the executive board for eight years, said such decisions are inevitably swayed by politics.


"Some people are better at lobbying than others," he told the AP. "There is a political dimension to this. There are people who have connections, who have this and that. We may like it or not, but in a multi-national organization like this decisions get made in ways that are not completely logical."


___ Associated Press writers Ali Akbar Dareini in Tehran, Jim Heintz in Moscow and Elena Becatoros in Athens contributed to this report.


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Obama speech 'relied on amnesia'






STORY HIGHLIGHTS


  • Matt Welch: State of the Union featured content-free calls to action for action's sake

  • He says governed might want to know what they've gotten in return for ballooning debt

  • Didn't we try repairing infrastructure with the stimulus package? he asks

  • Welch: Rand Paul spoke to those who think government should get out of way




Editor's note: Matt Welch is editor in chief of Reason and co-author of "The Declaration of Independents: How Libertarian Politics Can Fix What's Wrong With America" (Public Affairs).


(CNN) -- The two most memorable lines of President Barack Obama's fourth State of the Union address were the ad-libbed: "Get it done" (which doesn't appear in the remarks as prepared), and the emotional "They deserve a vote," concerning victims of gun violence.


As exasperated appeals for an obstructionist Congress to get off its duff, the exhortations provided emotional catnip for Democrats. For the rest of us, however, they were sobering reminders of what governing liberalism has deteriorated into: content-free calls to take action for action's sake.


Consumers of national governance are within their rights to ask just what we've gotten in return for ballooning the cost of the stuff since 2000. The answer may lie in not just what the president said, but what he has assumed we've already forgotten.



Matt Welch

Matt Welch



"Let's cut in half the energy wasted by our homes and businesses over the next 20 years," said the president, who promised a "Recovery Through Retrofit" three years ago. "The American people deserve a tax code that ... lowers tax rates for businesses and manufacturers that create jobs right here in America," said the man who before he took office vowed to, uh, give "tax breaks to companies that are investing here in the United States."


That "aging infrastructure badly in need of repair"? Well, what happened to the $50 billion from the stimulus package dedicated to precisely that task, or the $50 billion plan 18 months later? Making college "more affordable"? That has been the motivation for continuous ratcheting of government involvement in higher education, which has -- surprise! -- coincided with a several-decade increase in tuition costs and student loan debt.


Greene: In 2013, democracy talks back



Do-something politics works when Americans have amnesia, or are reacting to headline-making tragedies, or when they just want free stuff. But this irresistible force is butting up against the immovable object of a have-nothing U.S. Treasury. Debt service costs will soon overtake defense spending, and baby boomer entitlements are about to transform the federal government into a check-writing program for senior citizens.


Americans know by now that Obama can't possibly believe his own promises that his policies won't "increase our deficit by a single dime," not only because of his poor track record with that particular vow, but because he spends the rest of his time talking about all the various things the government needs to "invest" to create "broad-based growth." It's a conflict at the basic level of vision with those of us who think prosperity is mostly a private-sector affair that is on balance imperiled, not improved, by the exertions of a deficit-spending government.


Opinion: Obama dares Congress to get the job done








Thankfully, and quite unlike during the 2012 presidential campaign, the competing vision was voiced Tuesday night. Not necessarily by a dehydrated but game Sen. Marco Rubio, R-Florida, who delivered the Republican response to the State of the Union address, but by Sen. Rand Paul, R-Kentucky, who did the honors online for the tea party.


"The path we are on is not sustainable," Paul said, directly. "All that we are, all that we wish to be, is now threatened by the notion that you can have something for nothing, that you can have your cake and eat it, too, that you can spend a trillion dollars every year that you don't have."


Paul dinged Republicans as well as Democrats, targeted military spending as well as entitlements, and spent a good 30 seconds giving a more full-throated defense of wartime civil liberties than the allegedly anti-war candidate Obama ever did.


Most importantly, he laid out a truly alternative vision that speaks directly to the growing number of Americans who feel like the federal government has failed as the engine of economic growth, and needs urgently to take a back seat before it does more harm.


Rothkopf: This time, a president in full


"What America needs," Paul said, "is not Robin Hood, but Adam Smith." As Obamanomics continues underperforming through a second term, it will be fascinating to see whether Ron Paul's kid can get more people to agree.


Follow us on Twitter: @CNNOpinion.


Join us at Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Matt Welch.






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Cubs' plan for more night games in 2013 could be in trouble









The Chicago Cubs' push for more night games in the upcoming season could be in jeopardy, as Ald. Tom Tunney said he would not introduce legislation at today's City Council meeting.


The team has asked Tunney, whose 44th ward encompasses Wrigley Field, to ease limits on night games, late Friday afternoon games, concerts and other non-game events that are part of a neighborhood protection ordinance. The Cubs want more flexibility in scheduling games and events to increase revenues as the owners of the team seek to embark on a $300 million renovation of Wrigley Field.


The Cubs currently schedule 27 night games and can add up to three more for national television purposes. The exact number of new night games the club seeks is unclear, but the team is eager to have more night games as soon as the upcoming season. The timetable depends on getting city approval as soon as possible so that Major League Baseball can adjust the 2013 schedule, which already has been unveiled.








The team had asked Tunney to introduce a measure amending the neighborhood protection ordinance at Wednesday’s meeting. But the alderman wants the Cubs to address parking, traffic and security issues in the Wrigleyville neighborhood.


The lack of a proposal today suggests Tunney is in no rush to give the Cubs what they want. Additional night games are just one of the changes the Cubs seek that are tied to Wrigley renovations. The team also wants the city to lift landmark restrictions on the stadium to allow for more advertising and change zoning around Wrigley to allow for pre-game street festivals.


Both Mayor Rahm Emanuel and Tunney said they wanted one comprehensive deal to rehab Wrigley and would not proceed first with just an ordinance to add more night games.


“It’s all of one piece,” the mayor said. “We’re going to do this comprehensively.”


He also suggested that a Major League Baseball deadline for scheduling night games provides pressure to seal a deal.


“The individual parties know there’s a deadline, because there is an actual one for them,” Emanuel said.


“But I will say one word to the parties,” he added. “There’s an agreement to be had. It’s right there. All you need is a little leadership and a little will. It’s right there at the table.”


A spokesman for the Ricketts family, the Cubs’ owners, said negotiations on several issues continue.


“Everybody has a sense of urgency,” said spokesman Dennis Culloton. “The team is still hoping to get things resolved by Opening Day at the latest.”





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Ovation for Pope Benedict at final public mass


VATICAN CITY (Reuters) - A capacity crowd in St Peter's Basilica gave Pope Benedict a thunderous standing ovation on Wednesday at an emotional last public Mass before he resigns at the end of the month.


"Thank you. Now, let's return to prayer," the 85-year-old pontiff said, bringing an end to several minutes of applause that clearly moved him. In an unusual gesture, bishops took off their mitres in a sign of respect and a few of them wept.


One of the priests at the altar, which according to tradition rests above the tomb of St Peter, took out a handkerchief to dry his tears.


The Mass was moved to St Peter's from a venue in Rome so more people could attend. Hundreds of others waited outside.


Hours earlier in the Vatican's modern audience hall, a visibly moved Benedict tried to assure his worldwide flock, saying he was confident his decision to step down would not hurt the Church.


The Vatican, meanwhile, announced that a conclave to elect his successor would start sometime between March 15 and March 20, in keeping with Church rules about the timing of such gatherings after the papal see becomes vacant.


"Continue to pray for me, for the Church and for the future pope," he said in unscripted remarks at the start of his weekly general audience, his first public appearance since his shock decision on Monday that he will step down on February 28.


It was the first time Benedict, 85, who will retire to a convent inside the Vatican, exchanging the splendor of his 16th century Apostolic Palace for a sober modern residence, had uttered the words "future pope" in public.


Church officials are still so stunned by the move that the Vatican experts have yet to decide what his title will be and whether he will continue to wear the white of a pope, the red of a cardinal or the black of an ordinary priest.


His voice sounded strong at the audience but he was clearly moved and his eyes appeared to be watering as he reacted to the thunderous applause in the Vatican's vast audience hall, packed with more than 8,000 people.


In brief remarks in Italian that mirrored those he read in Latin to stunned cardinals on Monday he appeared to try to calm Catholics' fears of the unknown.


He message was that God would continue to guide the Church.


EXAMINATION OF CONSCIENCE


"I took this decision in full freedom for the good of the Church after praying for a long time and examining my conscience before God," he said.


He said he was "well aware of the gravity of such an act," but also aware that he no longer had the strength required to run the 1.2 billion member Roman Catholic Church, which has been beset by a string of scandals both in Rome and round the world.


Benedict said he was sustained by the "certainty that the Church belongs to Christ, who will never stop guiding it and caring for it" and suggested that the faithful should also feel comforted by this.


He said that he had "felt almost physically" the affection and kindness he had received since he announced the decision.


When Benedict resigned on Monday, the Vatican spokesman said the pontiff did not fear schism in the Church after his resignation.


Some 115 cardinals under the age of 80 will be eligible to enter a secret conclave to elect his successor.


Cardinals around the world have already begun informal consultations by phone and email to construct a profile of the man they think would be best suited to lead the Church in a period of continuing crisis.


The conservative Benedict has appointed more than half of the cardinals who will elect his successor so it is unlikely the new man will tamper with any teachings such as the ban on artificial birth control or women priests.


But many in the Church have been calling for the election of someone who they say will be a better listener to other opinions in the Church.


The likelihood that the next pope would be a younger man and perhaps a non-Italian, was increasing, particularly because of the many mishaps caused by Benedict's mostly Italian top aides.


Benedict has been faulted for putting too much power in the hands of his friend, Secretary of State Cardinal Tarcisio Bertone. Critics of Bertone, effectively the Vatican's chief administrator, said he should have prevented some papal mishaps and bureaucratic blunders.


ILL-SERVED POPE


"These scandals, these miscommunications, in many cases were caused by Pope Benedict's own top aides and I think a lot of Catholics around the world think that he was perhaps ill-served by some of the cardinals here," said John Thavis, author of a new book, The Vatican Diaries.


Benedict's papacy was rocked by crises over sex abuse of children by priests in Europe and the United States, most of which preceded his time in office but came to light during it.


His reign also saw Muslim anger after he compared Islam with violence. Jews were upset over rehabilitation of a Holocaust denier. During a scandal over the Church's business dealings, his butler was accused of leaking his private papers.


"When cardinals arrive here for the conclave ... they are going to have this on their mind, they're going to take a good hard look at how Pope Benedict was served, and I think many of them feel that the burden of the papacy that finally weighed so heavy on Benedict was caused in part by some of this in-fighting (among his administration)," Thavis told Reuters.


Vatican spokesman Father Federico Lombardi urged the faithful to remain confident in the Church and its future.


"Those who may feel a bit disorientated or stunned by this, or have a hard time understanding the Holy Father's decision should look at it in the context of faith and the certainty that Christ will support his Church," Lombardi said.


Lombardi said that on his last day in office, Benedict would receive cardinals in a farewell meeting and after February 28 his ring of office, used to seal official documents, would be destroyed just as if he had died.


(Reporting by Philip Pullella; Editing by Giles Elgood)



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Wall Street ends slightly higher, Dow near a record

NEW YORK (Reuters) - Stocks closed modestly higher on Tuesday, putting the Dow within striking distance of an all-time high, as investors looked ahead to President Barack Obama's State of the Union address.


Investors will be listening to Obama's speech for any clues on a deal with Republicans to avert automatic spending cuts due to take effect March 1. The tone of the speech will also be scrutinized, with any sign of compromise likely to be warmly received.


The S&P 500 has risen for the past six weeks, putting it up 6.5 percent so far this year, while the Dow is about 1 percent away from its all-time closing record of 14,164.53, reached in October 2007.


But gains have been harder to come by since the S&P hit a five-year high on February 1. Daily moves have been small and trading volume light as investors search for new reasons to drive stocks higher.


About 5.73 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT on Tuesday, below the daily average so far this year of about 6.48 billion shares.


"We're likely to settle in for a period and digest the gains we've had, though there's still a bias towards positive momentum," said Eric Teal, chief investment officer at First Citizens Bancshares in Raleigh, North Carolina.


"Questions over government spending are the big overhang, and we're looking for Obama to inspire some confidence over that tonight."


The White House has signaled Obama will urge investment in infrastructure and clean energy, suggesting companies in those sectors may be volatile in Wednesday's session.


"Gun makers could also see a reaction if Obama talks about anything with respect to gun control," said Teal, who helps oversee $5 billion. Shares of Smith & Wesson fell 2 cents to $9.11 while Sturm Ruger was up 0.4 percent at $53.91.


The Dow Jones industrial average <.dji> was up 47.46 points, or 0.34 percent, at 14,018.70. The Standard & Poor's 500 Index <.spx> was up 2.42 points, or 0.16 percent, at 1,519.43. The Nasdaq Composite Index <.ixic> was down 5.51 points, or 0.17 percent, at 3,186.49.


Housing shares were among the strongest of the day, led by a 12.5 percent jump in Masco Corp to $20.02 after the home improvement product maker said it expects new home construction to show strong growth in 2013. The PHLX housing sector index <.hgx> rose 3.7 percent.


Avon Products Inc surged 20 percent to $20.79 as the S&P 500's top percentage gainer after the cosmetics company reversed sales declines and cut costs.


On the downside, Coca-Cola Co fell 2.7 percent to $37.56 and was the biggest drag on the Dow after reporting revenue below estimates, hurt by a weaker-than-expected performance in Europe.


Michael Kors Holdings shares jumped 8.8 percent to $62.04 after the fashion company handily beat Wall Street's estimates and raised its full-year outlook.


With earnings season starting to wind down, Thomson Reuters data through Tuesday morning shows of the 353 companies in the S&P 500 that have reported results, 70.3 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters.


Fourth-quarter earnings for S&P 500 companies are estimated to have risen 5.3 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


About 62 percent of stocks traded on the New York Stock Exchange closed higher while 59 percent of Nasdaq-listed shares closed in positive territory.


(Editing by Nick Zieminski)



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Gonzalez maintains he hasn't used PEDs


VIERA, Fla. (AP) — Gio Gonzalez arrived at spring training with the Washington Nationals on Tuesday and maintained he has not used performance-enhancing drugs.


The Miami New Times reported last month that Gonzalez was among a half-dozen major league players listed as receiving PEDs in purported records of Biogenesis of America LLC, a now-closed anti-aging clinic in Coral Gables, Fla. Gonzalez hopes to be exonerated.


"I feel very confident," the 27-year-old left hander said. "I think that at the end of the day I've never taken performance-enhancing drugs, and I never will."


Gonzalez, a 21-game winner last year, denied the allegations on Twitter on the day they were reported.


"You're stunned. You're shocked," he said Tuesday. "Your name has been brought up out of nowhere. You can't do nothing about it. You just have to wait it out and listen to what's going on. You can't jump the gun. You can't jump to conclusions. At the end of the day you just have to listen in and wait patiently."


Gonzalez said he had been contacted by Major League Baseball officials and has cooperated with their investigation. Gonzalez said he has "done everything that they want, and I feel strong with their program and what they're doing, and at the end of the day I'm waiting on them."


Gonzalez's father, Max, also was listed in the purported Biogenesis records.


"There's no connection for the fact that I say my father admitted that he was a patient there. A legitimate patient," the pitcher said. "And then after that, you know how my father is. ... All of south Florida, all of baseball knows that my father is the most proud father in baseball. He tells everyone about his son. And that's the best I can say. Other than that, I have no clue why my name was on that list, or on a notebook or anything."


Gonzalez doesn't want the allegations to be a distraction for his teammates.


"I'm going to do my best to keep it away from the locker room," he said. "I don't want any of this to be about me. Again, it's about the organization and it's about the team together."


Teammate Drew Storen said he isn't worried.


"Gio's a big part of this team, obviously. He's always been a big character guy for us," Storen said. "I think he'll continue to do that. He'll come in and be able to separate that stuff out. I think that's one of the things our clubhouse has been special for, we're able to cut out the outside factors. . I think we're going to be in good shape. Gio's a stand-up, character guy for us in this clubhouse. It's not going to change a thing."


Gonzalez said he plans to pitch for the United States in next month's World Baseball Classic following an invitation from manager Joe Torre. He figures to bolster a rotation missing David Price, Justin Verlander, Jered Weaver, Clayton Kershaw and Matt Cain.


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Follow Kyle Hightower on Twitter at http://www.twitter.com/khightower


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Was euro ever 'about to collapse'?








By Ramy Inocencio, for CNN


February 12, 2013 -- Updated 0948 GMT (1748 HKT)









STORY HIGHLIGHTS


  • Former European Central Bank chief says euro was never going to collapse

  • In 2012, critics predicted at least partial breakup of 17-member eurozone

  • Euro plunged to 25-month low against U.S. dollar in July 2012

  • Currency war fears prevail in run-up to G20 finance ministers meeting this week




Hong Kong (CNN) -- Less than six months ago, eurozone watchers had been predicting the breakup of the 17-member bloc of nations as the euro plunged to a 25-month low against the U.S. dollar last July.


Even as recently as November, Warren Buffett, the famed CEO of Berkshire Hathaway, said of the eurozone's future that "it's hard to tell exactly how it comes out."


But since then, the euro has appreciated nearly 11% as its member countries battled to contain sovereign debt crises, rising unemployment and social unrest. The euro now stands at a 13-month high against the greenback.


And flying in the face of last year's critics, former European Central Bank chief Jean-Claude Trichet told CNN's Nina dos Santos that the euro "was never about to collapse" and that its viability as a currency is solid.








"The euro as a currency has never been put in question," asserted Trichet, while at the same time admitting the euro area's financial stability and credit worthiness had been tested.


As for the euro, he said it "is certainly reliable and credible."


Yet, the euro's gains over the past seven months is a mixed blessing. Arguments have long-existed for and against a stronger currency. Appreciation means investors are more confident in the euro but eurozone exports become more expensive when sold overseas; devaluation makes the bloc's exports more competitive globally, which many eurozone officials would prefer.


But if the world's major economies devalued their currencies to make exports more competitive and to spur their economies to growth again, it would be chaos, says Trichet.


"If the reasoning is the same in all constituencies you have nothing but...a 'beggar-thy-neighbor' policy which is a recipe for catastrophe."


That catastrophe could take the form of an all-out currency war. And this week, the world's leading banks called on the G20 group of richest nations to avoid such an outcome.


"We believe major central banks should focus on enhancing their cooperation...to guide market expectations and thus help avoid a disorderly interest rate adjustment process and undue exchange rate volatility," the Institute of International Finance wrote in a letter to Russian Finance Minister Anton Siluanov, who is chairing the G20 finance minister's meeting later this week.


But with the eurozone in recession for the second time in four years, the desire to devalue the euro may be strong. The European Central Bank in December cut its 2013 growth forecast, with a best-case growth rate scenario of only 0.3%.


"It is no time for complacency," warned Trichet who added that the central banks of the United States, Japan and Europe as well as their private sectors should get their "house(s) in order."












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