Exclusive: North Korea tells China of preparations for fresh nuclear test - source


BEIJING (Reuters) - North Korea has told its key ally, China, that it is prepared to stage one or even two more nuclear tests this year in an effort to force the United States into diplomatic talks, said a source with direct knowledge of the message.


Further tests could also be accompanied this year by another rocket launch, said the source, who has direct access to the top levels of government in both Beijing and Pyongyang.


North Korea conducted its third nuclear test on Tuesday, drawing global condemnation and a stern warning from the United States that it was a threat and a provocation.


"It's all ready. A fourth and fifth nuclear test and a rocket launch could be conducted soon, possibly this year," the source said, adding that the fourth nuclear test would be much larger than the third, at an equivalent of 10 kilotons of TNT.


The tests will be undertaken, the source said, unless Washington holds talks with North Korea and abandons its policy of what Pyongyang sees as attempts at regime change.


North Korea also reiterated its long-standing desire for the United States to sign a final peace agreement with it and establish diplomatic relations, he said. North Korea remains technically at war with both the United States and South Korea after the Korean war ended in 1953 with a truce.


In Washington, U.S. State Department spokeswoman Victoria Nuland urged North Korea to "refrain from additional provocative actions that would violate its international obligations" under three different sets of U.N. Security Council resolutions that prohibit nuclear and missile tests.


North Korea "is not going to achieve anything in terms of the health, welfare, safety, future of its own people by these kinds of continued provocative actions. It's just going to lead to more isolation," Nuland told reporters.


The Pentagon also weighed in, calling North Korea's missile and nuclear programs "a threat to U.S. national security and to international peace and security."


"The United States remains vigilant in the face of North Korean provocations and steadfast in our defense commitments to allies in the region," said Pentagon spokeswoman Major Catherine Wilkinson.


Initial estimates of this week's test from South Korea's military put its yield at the equivalent of 6-7 kilotons, although a final assessment of yield and what material was used in the explosion may be weeks away.


North Korea's latest test, its third since 2006, prompted warnings from Washington and others that more sanctions would be imposed on the isolated state. The U.N. Security Council has only just tightened sanctions on Pyongyang after it launched a long-range rocket in December.


Pyongyang is banned under U.N. sanctions from developing missile or nuclear technology after its 2006 and 2009 nuclear tests.


North Korea worked to ready its nuclear test site, about 100 km (60 miles) from its border with China, throughout last year, according to commercially available satellite imagery. The images show that it may have already prepared for at least one more test, beyond Tuesday's subterranean explosion.


"Based on satellite imagery that showed there were the same activities in two tunnels, they have one tunnel left after the latest test," said Kune Y. Suh, a nuclear engineering professor at Seoul National University in South Korea.


Analysis of satellite imagery released on Friday by specialist North Korea website 38North showed activity at a rocket site that appeared to indicate it was being prepared for a launch (http://38north.org/2013/02/tonghae021413/).


NORTH 'NOT AFRAID' OF SANCTIONS


President Barack Obama pledged after this week's nuclear test "to lead the world in taking firm action in response to these threats" and diplomats at the U.N. Security Council have already started discussing potential new sanctions.


North Korea has said the test was a reaction to "U.S. hostility" following its December rocket launch. Critics say the rocket launch was aimed at developing technology for an intercontinental ballistic missile.


"(North) Korea is not afraid of (further) sanctions," the source said. "It is confident agricultural and economic reforms will boost grain harvests this year, reducing its food reliance on China."


North Korea's isolated and small economy has few links with the outside world apart from China, its major trading partner and sole influential diplomatic ally.


China signed up for international sanctions against North Korea after the 2006 and 2009 nuclear tests and for a U.N. Security Council resolution passed in January to condemn the latest rocket launch. However, Beijing has stopped short of abandoning all support for Pyongyang.


Sanctions have so far not discouraged North Korea from pursuing its nuclear ambitions.


"It is like watching the same movie over and over again," said Lee Woo-young, a professor at Seoul's University of North Korean Studies. "The idea that stronger sanctions make North Korea stop developing nuclear programs isn't effective in my view."


The source with ties to Beijing and Pyongyang said China would again support U.N. sanctions. He declined to comment on what level of sanctions Beijing would be willing to endorse.


"When China supported U.N. sanctions ... (North) Korea angrily called China a puppet of the United States," he said. "There will be new sanctions which will be harsh. China is likely to agree to it," he said, without elaborating.


He said however that Beijing would not cut food and fuel supplies to North Korea, a measure it reportedly took after a previous nuclear test.


He said North Korea's actions were a distraction for China's leadership, which was concerned that the escalations could inflame public opinion in China and hasten military build-ups in the region.


The source said he saw little room for compromise under North Korea's youthful new leader, Kim Jong-un. The third Kim to rule North Korea is just 30 years old and took over from his father in December 2011.


He appears to have followed his father, Kim Jong-il, in the "military first" strategy that has pushed North Korea ever closer to a workable nuclear missile at the expense of economic development.


"He is much tougher than his father," the source said.


(Additional reporting by Arshad Mohammed and Phillip Stewart in WASHINGTON; Writing by David Chance; Editing by Raju Gopalakrishnan, David Brunnstrom and Jackie Frank)



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Tennis: Benneteau stuns Federer in Rotterdam






ROTTERDAM, Netherlands: Frenchman Julien Benneteau sent defending champion Roger Federer crashing out of the Rotterdam World Tennis tournament on Friday with a stunning 6-3, 7-5 quarter-final upset.

Federer, who lifted the trophy in his last two appearances in 2005 and 2012, last suffered defeat in the event against Tim Henman in 2004.

"I'm very disappointed, I have some regrets about this match," said Federer, who came back from two sets to love down to beat Benneteau in the third round of Wimbledon last year.

"He played great and created more chances than I did. He deserved to win. It was a tough loss, but they do happen. Being broken so many times (five) indoors won't get the job done. My game was up and down overall.

"He made it difficult and generated pressure. That made you try to serve harder. When I had some chances I didn't take them. I was maybe a point or two away from taking it into a third set and then the clock resets."

Benneteau, the world 39, will play a Saturday a semi-final against either fifth-seeded compatriot Gilles Simon or Slovak Martin Klizan.

"This was a dream match, and I played like a dream," said Benneteau after
his second career win over the world number two.

"This is for sure my biggest win. He was the favourite, but maybe he played a bit tight. I've been playing well all week, improving with each match.

"I've had a great week here so far and I hope it's not finished."

Federer was clearly off the boil from the start, beginning with an ace but losing the first game.

He was broken three times in the first set in a shocking display from the top seed and heavy crowd favourite at the Ahoy stadium.

The French challenger wrapped up the opening set and went up a break at 3-1 in the second as Federer's game continued to suffer.

But the Swiss stirred to life as he broke back to love for 3-4.

Federer then levelled at four games apiece before Benneteau saved three break points to hold for 6-5.

A game later, it was done, with Federer donating a double-fault for a match point and then missing the far corner with a backhand which was confirmed by electronic linecalling.

Second seed Juan Martin del Potro cruised into the semi-finals with a victory in straight sets against Finland's Jarkko Nieminen.

The Argentine won 6-3, 6-4, and will now face unseeded Bulgarian Grigor Dimitrov who came from a set down to beat Marcos Baghdatis.

Del Potro took just under 90 minutes to go through, racking up 10 aces along the way before sealing victory on his second match point as the Finn returned long.

"It was a difficult win, he's a lefty and hit his shots differently. He was fighting all the time and I had to play my best game to go through," said the 2009 US Open champion.

"It feels good to be in the semi-finals, I'm trying to repeat what I did last year (final) and go even farther.

"Dimitrov has a very good future. He's playing fantastic tennis, the match will be close for both sides."

Dimitrov beat Baghdatis 6-7 (4/7), 7-6 (7/0), 6-3 in a performance that showed he is returning to the kind of form he produced at the start of the year, when he reached the final in Brisbane before losing to Andy Murray.

The Bulgarian had also beaten Baghdatis in three sets in that tournament, and he repeated the feat on Friday.

- AFP/fa



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Ex-San Diego mayor gambled away charity funds

Updated at 4:04 p.m. ET

SAN DIEGO Former San Diego Mayor Maureen O'Connor acknowledged Thursday in federal court that she misappropriated $2 million from her late husband's charitable foundation due to a gambling addiction in which she won more than $1 billion but lost even more over nearly a decade.

O'Connor made the acknowledgement in an agreement with the government to defer prosecution for two years while she attempts to repay the debt.

Before entering federal court Thursday, O'Connor defense attorney Gene Iredale said O'Connor suffered a brain tumor, during which time she gambled away nearly a billion dollars of her inheritance, CBS San Diego affiliate KFMB-TV reports.

(Watch a report from KFMB-TV below)

"She's not pleading guilty. She's not going to be convicted of a crime," Iredale told reporters. "It's a case in which we've agreed that charges will be filed, but they will be dismissed without a conviction, assuming that Maureen has appropriate treatment and conforms to the law for a period of two years."

Iredale said O'Connor's poor health contributed to the gambling problem and that she took the money to repay her debts, KFMB-TV reports.

O'Connor was the Democratic leader of California's second-largest city from 1986 to 1992. The two-term mayor was elected San Diego's first female leader after eight years on the City Council. She was married to Robert O. Peterson, founder of the Jack-In-The-Box restaurant chain.

Prosecutors said her gambling winnings amounted to more than $1 billion from 2000 to 2009 but she lost more than that.

Her defense attorney estimated the debt at $13 million.

O'Connor gambled in Las Vegas, Atlantic City, N.J., and San Diego.

San Diego, California News Station - KFMB Channel 8 - cbs8.com

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Cruise Passengers 'Upbeat' as They Near Land












The 4,000 passengers and crew aboard the stricken Carnival Triumph cruise ship will disembark after dark tonight from the fetid cruiser dubbed "the poop deck" on social media, according to officials.


"It will come in. It will not stop," Alabama State Port Authority Director Jimmy Lyons said at a news conference today. "We're going to do everything we can from our standpoint to ensure that this is as smooth as possible."


He estimated the ship would arrive between 7 p.m. and 10 p.m. tonight.


Delighted passengers waved at media helicopters that flew out to film the ship and passenger Rob Mowlam told ABCNews.com by phone today that most of the passengers on board were "really upbeat and positive."


Nevertheless, when he gets off Mowlam said, "I will probably flush the toilet 10 times just because I can."


Mowlam, 37, got married on board the Triumph Friday and said he and his wife, Stephanie Stevenson, 27, haven't yet thought of redoing the honeymoon other than to say, "It won't be a cruise."


Lyons said that with powerless "dead ships" like the Triumph, it is usually safer to bring them in during daylight hours, but, "Once they make the initial effort to come into the channel, there's no turning back."


Click here for photos of the stranded ship at sea.






Lt. Cmdr. Paul McConnell/U.S. Coast Guard/AP Photo











Stranded Carnival Cruise Ship On Its Way to Port Watch Video









Carnival Cancels All Scheduled Voyages Aboard the Triumph Watch Video









Carnival Cruise Ship Making Its Way to Port Watch Video





"There are issues regarding coming into the ship channel and docking at night because the ship has no power and there's safety issues there," Richard Tillman of the Mobile Bay Convention and Visitors Bureau told ABCNews.com.


When asked if the ship could be disembarked in the dark of night, Tillman said, "It is not advised. It would be very unusual."


Carnival Cruise Senior Vice President of Marketing Terri Thornton, however, insisted during a news conference at the port of Mobile today, "Our understanding is it will be alongside this evening."


Thornton denied the rumors that there was a fatality on the ship. He said that there was one illness early on, a dialysis patient, but that passenger was removed from the vessel and transferred to a medical facility.


The U.S. Coast Guard is assisting now and there are multiple generators on board. And customs officials will board the ship while it is being piloted to port to accelerate the embarkation, officials said.


After eight miserable days at sea, the ship's owners have increased the compensation for what some on board are calling the vacation from hell.


All 3,143 passengers aboard the 900 foot colossus, which stalled in the Gulf of Mexico after an engine room fire early Sunday, were already being given a full refund for the cruise, transportation expenses and vouchers for a another cruise. Carnival Cruise Lines is now boosting that offer to include another $500 per person. Gerry Cahill, president and CEO of Carnival Cruise Lines, announced the additional compensation Wednesday.


"We know it has been a longer journey back than we anticipated at the beginning of the week under very challenging circumstances," he said in a statement. "We are very sorry for what our guests have had to endure. Therefore, in addition to the full refund and future cruise credit already offered, we have decided to provide this additional compensation."


Carnival also said that it has canceled a dozen planned voyages for the Triumph and acknowledged that the crippled ship had been plagued by other mechanical problems in the weeks before an engine-room fire left it powerless in the Gulf of Mexico.






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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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Athletics: 'Blade Runner' Pistorius charged in girlfriend's murder






PRETORIA: South African police held Olympic amputee sprint star Oscar Pistorius in custody Thursday after charging him with the Valentine's Day murder of his model girlfriend, who was shot four times with a gun registered in his name.

Blonde cover girl Reeva Steenkamp died after suffering wounds to the head and hand in the shooting in the early hours of Thursday.

Police played down reports that the 29-year-old was mistaken for a burglar. They had earlier said she was aged 30.

Twenty-six-year-old Pistorius -- known globally as "Blade Runner" because of his carbon fibre prostheses -- was to appear in court early Friday to answer formal murder charges.

The sprinter became an international celebrity during last year's London Olympics, when he became the first double-amputee to line up on the starting blocks beside able bodied competitors.

He was publicly adored in his native South Africa, though questions had been raised about his colourful private life that was replete with glamorous girlfriends, guns and fast cars.

Police were called to Pistorius's upscale Pretoria home at around 4:00 am by neighbours who heard gunshots inside the gated community.

Police spokeswoman Denise Beukes said the 9mm pistol used in the shooting was registered to Pistorius, who authorities have said is the only suspect in the case.

The police said they would oppose any request for bail.

His arrest has rocked South Africa, where he had been considered a hero.

"Obviously we are shocked," his father Henke Pistorius told AFP. "He is with the police and the matter is in the hands of the authorities."

Steenkamp, once a FHM cover girl, was described as "the kindest, sweetest human being; an angel on earth," by Sarit Tomlins of her management agency.

Born in Cape Town, she grew up in Port Elizabeth where she graduated with a degree in law from Nelson Mandela Metropolitan University.

Authorities poured cold water on media reports that she had snuck up on her lover, suggestions that were fuelled by her tweet the day before.

"What do you have up your sleeve for your love tomorrow??? #getexcited #ValentinesDay", she wrote.

"We were surprised by allegations that the deceased had been perceived to be a burglar," police spokeswoman Beukes said.

Police said they were talking to neighbours who heard disturbances on Wednesday evening and around the time of the shooting.

There had been previous allegations of domestic disputes at Pistorius's home.

"There were always rumours attracted to Oscar Pistorius, but most of them I just put down to him being a celebrity," said Kyle Wood, a 25-year-old fellow resident of the Silverlakes community.

In 2009 Pistorius spent a night in jail after allegedly assaulting a 19-year-old woman at a party.

He has often spoken publicly about his fondness for guns.

Last year he told a newspaper he sleeps with a pistol, machine gun, cricket bat and baseball bat for fear of burglars.

He once took a reporter to a nearby shooting range with his 9mm handgun after learning that the journalist had never fired a shot.

There are an estimated 1.5 million gun owners in South Africa, where crime remains a major problem.

Many residents keep weapons at home and equip their houses with electric fences and panic buttons that summon heavily armed guards within minutes.

In November, Pistorius tweeted about arriving home and hearing the washing machine on "and thinking it's an intruder to go into full combat recon mode into the pantry! waa."

His right to have a gun was called into question by South Africa's anti-firearms lobby.

To be licensed as a gun owner, Pistorius would have had to seek a competency certificate that requires knowledge of gun laws and interviews with his neighbours to rule out issues around addiction, mental illness or violence.

"With Oscar's case it is quite interesting because it does appear that there was a history of abuse and possible alcohol misuse," said Claire Taylor of Gun Free South Africa.

Pistorius was also known as an adrenaline junkie, with a love of speed reflected in a passion for motorbikes. Four years ago he crashed his boat in a river south of Johannesburg, breaking two ribs, an eye socket and his jaw.

Empty alcohol bottles were found in the boat, but his blood alcohol content was not tested.

Until now his problems off the track had been eclipsed by his success on it.

The Johannesburg-born athlete won gold in the 4x100m relay and the 400m individual at the Paralympic Games in London. He was triple gold medallist in the Beijing games in 2008.

He was named by Time Magazine last year as one of the world's 100 most influential people.

He had both legs amputated below the knee when he was 11-months-old after being born without lower leg bones. But he played sports unhindered while growing up, switching to running after fracturing a knee playing rugby.

At high school, he was so good that his personal fitness coach said she was unaware for six months that he ran on prosthetic legs.

Already a South African pay television channel has canned a campaign featuring the runner.

There was no immediate comment from global sports giant Nike on its sponsorship of Pistorius, who it featured in an advert showing the runner setting off from the starting blocks with the line "I am the bullet in the chamber".

- AFP/jc



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Where to find hearts in OS X



With it being Valentine's Day, you might wish to send your significant other an amorous message or two, and while a card, flowers, or a box of chocolates may be the traditional ways to do so, sending a quick e-mail or chat message is not out of the question, either. Of course, you may wish to enhance said message with a heart or two. Sure, the first way that comes to mind would probably be to search the Web for an image you would like, but there are actually a couple of nice heart images buried in OS X that may be just what you are looking for.




Amorous emoticons in OS X

Searching for amorous words in the character viewer will reveal some relevant emoticons you can use in your message.



(Credit:
Screenshot by Topher Kessler/CNET)


The first set of hearts is located in the OS X character viewer, which in most programs can be invoked by pressing Option-Command-T. In here, you can locate a heart symbol by searching for the word "heart"; you should then be given a number of emoticons and other characters that can be used in-line with your text.


While the characters are intended to be used in your text, you can use them for other purposes as well by extracting them and using them as an image. To do this, open an empty TextEdit document (or that of another text editor). Then open the character viewer and insert your character of choice. Once this is completed, follow these steps:


  1. Select the character and increase its font size to a relatively large point, such as 288

  2. Click away from the character to deselect it, and then use spaces and new lines to position the character in the middle of the document so it has ample white space around it.



  3. Emoticon extraction in OS X

    Enter your emoticon into a blank text document and increase its font size.



    (Credit:
    Screenshot by Topher Kessler/CNET)


  4. Press Shift-Control-Command-4 to bring up the selection screenshot mode

  5. Click and drag the selection box around the desired character

  6. Open the Preview application and press Command-V to "paste" the previous screenshot as a new image



  7. New image from clipboard in Preview

    The image can then be pasted in Preview, which should create a new image file from it.



    (Credit:
    Screenshot by Topher Kessler/CNET)


  8. Click the Edit toolbar button and select the "Instant Alpha" tool.

  9. Click and drag the tool in the white area around the image so only the white area is pink.

  10. Release the tool and press delete to remove that area from the image.



Extracted emoticon image

After you save the image, you can use it as you would any other image file.



(Credit:
Screenshot by Topher Kessler/CNET)


At this point you have an isolated image of the character that you can then crop down and insert into a message or two.


In addition to using emoticons, OS X does have a couple of other hearts in the system, which can be found by going to the /System/Library/CoreServices/ folder, right-clicking the "CoreTypes.bundle" item and selecting "Show Package Contents" and then opening the /Contents/Resources folder. To get here quicker, triple-click or otherwise select the following file path in its entirety and then right-click the selection and choose "Open" from the Services contextual submenu:


/System/Library/CoreServices/CoreTypes.bundle/Contents/Resources




Heart Icon in OS X

In this folder you can open an image containing a heart and copy out a specific sized image.



(Credit:
Screenshot by Topher Kessler/CNET)


In this folder, locate the two images called "FavoriteItemsIcon.icns" and "ToolbarFavoritesIcon.icns," which are two different styles of hearts. You can open them in the Preview application and copy them into a document or message of choice (note that ICNS files are bundles of several different sizes of an icon image, which you will see listed to the left in the Preview window).




Questions? Comments? Have a fix? Post them below or !
Be sure to check us out on Twitter and the CNET Mac forums.


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American, US Airways set to clinch merger

(MoneyWatch) American Airlines and US Airways (LCC) are set to announce a merger that would create the world's biggest carrier.

Under the deal, which is expected to be unveiled Thursday if the timeline isn't moved up sooner and there are no last-minute snags, the combined airline would keep the "American" name. It would still require federal approval, although that is virtually ensured. US Air CEO Doug Parker is expected to lead the combined company.

A merger of US Air and American would surpass a 2010 tie-up between United Airlines (UAL) and Continental and a 2008 deal joining Delta (DAL) and Northwest. The merged American would be the largest carrier and sport a market valuation of roughly $10 billion.

Although airlines tout such consolidation as a way to cut costs and expand service amid intense competition, whether industry mergers raise fares is an open question. Many analysts say yes because reduced competition in any business often results in higher prices. One study found that ticket prices went up more than 20 percent between Detroit and Atlanta after Delta bought Northwest. Fares went up more than 30 percent on routes between Chicago and Houston, as well as Newark to San Francisco, after the United-Continental deal.

In seeking to run more efficiently, merging airlines also often cut capacity and eliminate routes. 



Play Video


American close to merger with U.S. Airways



Other analysts are more optimistic about the potential benefits to travelers. They say the three largest U.S. airlines still must compete with discount carriers such as Southwest (LUV), which has flourished for years by offering low-cost flights and no-frills service.

The consolidation trend is largely blamed on the price of fuel. Oil now costs so much more per barrel than it did 10 years ago that one analyst says the margin of profit on many flights has shrunk to the value of a single seat. That means an airline can lose money if it flies with one single empty middle seat. The days of elbow room are over.

American Airlines has been operating under court supervision since declaring bankruptcy in November 2011.

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Dorner Hid Just Steps From Command Center













Christopher Dorner, the fugitive ex-cop who authorities believe died in a fiery standoff with police Tuesday night, was apparently holed up in a snow-covered cabin in the California mountains just steps from where police had set up a command post and held press conferences during a five-day manhunt.


The charred remains of a body believed to be Dorner was removed from another cabin, high in the San Bernadino Mountains near Big Bear, Calif., the site of Dorner's last stand. Cornered inside the mountain cabin, the suspect shot at cops, killing one deputy and wounding another, before the building was consumed by flames.


Police are working to officially identify the body, but "have reason to believe that it is him," said San Bernardino County sheriff's spokeswoman Cynthia Bachman.


The manhunt for Dorner, 33, one of the biggest in recent memory, led police to follow clues across the West and into Mexico, but it ended just miles from where Dorner's trail went cold last week.


Residents of the area were relieved today that after a week of heightened police presence and fear that Dorner was likely dead.


"I'm glad no one else can get hurt and they caught him. I'm happy they caught the bad guy," said Ashley King, a waitress in the nearby town of Angelus Oaks, Calif.


Hundreds of cops scoured the mountains near Big Bear, a resort area in Southern California, since last Thursday using bloodhounds and thermal-imaging technology mounted to helicopters, in the search for Dorner. The former police officer and Navy marksman was being hunted as the suspect who had killed a cop and cop's daughter and had issued a "manifesto" declaring he was bent on revenge and pledged to kill dozens of LAPD cops and their family members.








Carjacking Victim Says Christopher Dorner Was Dressed for Damage Watch Video









Christopher Dorner Manhunt: Inside the Shootout Watch Video









Chris Dorner Manhunt: Fugitive Ex-Cop in Shootout With Police Watch Video





But it now appears that Dorner never left the area, and may have hid out in an unoccupied cabin just steps from where cops had set up a command center.


It was at the cabin Tuesday morning where two women arrived to find a man matching Dorner's description inside. He took the women hostage, tying them up and stealing their car. At 12:20 p.m. PT, one of the woman broke free and called police.


Dorner crashed that car and hijacked a pickup truck as officials from the state Fish and Game Department pursued him.


"I saw some movement in the trees and it was Christopher Dorner and he came out onto the road, out of the snow, and he was dressed in all camouflage and had a big assault, sniper-type rifle and he had a vest on, like a ballistics vest," Rick Heltebrake, the pickup's driver, told ABC News.


"He was dressed up to do some damage it looked like. He said, 'I don't want to hurt you. Just get out and start walking up the road and take your dog with you,'" Heltebrake said.


Dorner then took off into the woods on foot, where sheriff's deputies pursued him to a rental cabin in which he barricaded himself and began firing.


Two deputies were wounded in the firefight and airlifted to a nearby hospital, where one died, police said. The second deputy received non-life threatening injuries, police said.


Some local television stations broadcast police scanner traffic of the firefight, punctuated by the sound of automatic gunfire.


"It was horrifying to listen to that firefight and to hear those words. 'Officer down' is the most gut-wrenching experience that you can have as a police officer," said LAPD spokesman Lt. Andrew Neiman.


Over the course of the next five hours, heavily armed SWAT teams with tank-like vehicles surrounded the cabin, even firing tear gas inside, but never entered the building.


Cops said they heard a single gunshot go off from inside the cabin just as they began to see smoke and fire. Later they heard the sound of more gunshots, the sound of ammunition being ignited by the heat of the blaze, law enforcement officials said.


Dorner is accused of killing four people, including the deputy shot on Tuesday. Last Thursday he allegedly gunned down Riverside police officer Michael Crain, who was laid to rest today.


Crain's shooting and the discovery of an online manifesto pledging to kill dozens of cops launched the dragnet.






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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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