Sen. Marco Rubio Talks Immigration, Climate Change, and Tupac at BuzzFeed Brews






By BETSY KLEIN and MICHAEL CONTE


WASHINGTON – In a crowded Capitol Hill bar filled with well dressed twenty-somethings, Sen. Marco Rubio shared thoughts on immigration reform and climate change along with life lessons he learned from Tupac and The Notorious B.I.G. in a candid conversation at the inaugural BuzzFeed Brews event with host and BuzzFeed editor-in-chief Ben Smith.






The junior senator from Florida spoke passionately on immigration, an issue that has become an important issue for the Republican Party following the 2012 election.


“What I think will honor our legacy as a nation, is if we can do something that respects the rule of law, but also treats these people in a humane and respectful way,” Rubio said.


On the topic of global warming, Rubio voiced concern that tackling the issue would harm the economy.


“Anything that we would do on [climate change] would have a real impact on our economy, but probably, if it was only us [the United States] doing it, a very negligible impact on the environment,” he said.


Rubio voiced his support for reauthorizing the Violence Against Women Act.


“Who’s for violence against women?” Rubio quipped. He noted that he opposed the amendment that he said diverted spending for domestic violence prevention from state programs.


When asked about whether he planned a 2016 run for president, Rubio neither confirmed nor denied his intentions.


“Running for president is not a decision, it’s a process,” Rubio said. “You only get that big plane in the end, at the beginning, you have to rent a car in Iowa, New Hampshire, and South Carolina, you’re meeting the same 10 people over and over again who are still undecided.


“I really believe that if I do the best job that I can in the Senate, in a couple years I’ll be in a position to make a decision about whether I want to run for reelection, leave politics and give someone else a shot, or run for some other position,” he said.


Smith noted that Rubio coaches the football team of his son, Anthony, 7. When asked whether he thought Congress would take measures to make football safer, Rubio quipped, “The idea that Congress, who can’t even pass a budget, is somehow going to solve concussions in the NFL is, you know, doubtful at best.”


Rubio even discussed his musical leanings, and showed off his diverse knowledge of ’90s rap music.


“I think Tupac’s lyrics were more insightful, my opinion, with all apologies to the Biggie fans,” he said. “In some ways, rappers are like reporters. In particular at that time, from the West Coast, it was a lot of reporting about what life was like … so the ’90s was a time when this was really pronounced. You had gang wars, racial tension, and they were reporting on that.”


The young conservative wrapped up, his beer still untouched, talking broadly about his vision for the Republican Party.


“Ultimately,” he said, “The real answer is to convince people that what we stand for, that free enterprise and limited government is the best way to create the conditions for their dreams to be possible.”


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What follows N. Korea's nuclear test?






STORY HIGHLIGHTS


  • Lopez: Uranium-based blast would pose new challenge to U.N. Security Council

  • Indicates Pyongyang has advanced centrifuge technologies and related systems

  • North Korea's young leader appears to care little about what U.N. or China think

  • Product-based sanctions may stifle the North's ability to continue nuclear program




Editor's note: George A. Lopez holds the Hesburgh Chair in Peace Studies at the Kroc Institute, University of Notre Dame. He is a former member, U.N. Panel of Experts on North Korea, or the Democratic People's Republic of Korea (DPRK).


Indiana, U.S. (CNN) -- North Korea will soon test its third nuclear device. Earlier tests in 2006 and 2009 drew worldwide condemnation, Security Council sanctions and led Pyongyang to withdraw from the six-party talks.


In resolution 2087, passed on January 22, the Council imposed new sanctions on North Korea for its December 12 space missile launch and made clear that new violations would be dealt with harshly.


READ: N.Korea: Close to nuclear missile?


In response, North Korea rejected Council legitimacy, asserted their right to nuclear weapons and deterrence and proclaimed it would soon conduct a new nuclear test.


In addition the North engaged in some strong saber-rattling aimed at South Korea.


READ: For South Koreans, a familiar tone from Pyongyang










Because some analysts believe this will be a uranium explosion, it is a game-changer for the region and poses new and unfavorable challenges to the Security Council. A successful uranium test indicates that Pyongyang has advanced centrifuge technologies and related support systems. It means that North Korea, if left unchecked, can both produce and export such material, raising new concerns that Pyongyang and Iran cooperate in such developments.


Politically the test will reveal that the new regime of Kim Jong-Un exceeds the defiance to U.N. dictates of his predecessors in pursuing his nation's nuclear goals. Neither the prospect of stronger sanctions, nor the growing discontent of Russia and China with his behavior, appears to deter North Korea's young leader.


OPINION: Rescind North Korea's license to provoke


These dilemmas confront the permanent five members of the Council with a harsh reality check regarding their unity of action and what message to convey to the north via what particular sanctions. If the Council follows the logic of resolution 2087, it will impose more extensive and punishing sanctions than ever before. Such sanctions will blacklist companies, government agencies and individuals long known for their role in illicit technology procurement and sanctions evasion. They will expand financial sanctions into areas of banking that would require substantial transnational enforcement to bite, and they may call upon countries in the region to inspect almost all North Korean trade. The economic squeeze and further isolation of the DPRK will increase substantially.


READ: Why sticks don't work with North Korea


These sanctions would require China to play an enforcement role against North Korean economic actors it has hitherto resisted. Seizing prohibited goods that pass through Dalian harbor and other trans-shipment points, as well as shutting down various border activities, would also fall to China. These extensive sanctions as punishment operate from the assumption that at some point the north will forego its nuclear program in order to survive as an authoritarian state.


But there may be an alternative to the punishment approach that could bring Beijing on board with effective Council action. China might well accept specialized trade sanctions aimed to degrade the DPRK's ability to sustain the nuclear program for lack of material and due to prohibitive costs of sanctions busting, as a way of conveying to Pyongyang that it must return to the negotiating table.


The logic of extensive new product-focused sanctions is that DPRK can make -- or jerry-rig -- only a small fraction of the advanced technologies and specialty materials that sustain an ongoing uranium enrichment program. To choke off these materials -- and the illicit means of financing them -- provides the Council with a possibility to make it technically impossible for DPRK to have a functioning uranium-based bomb program.


Precise lists of dozens of the materials used in centrifuge operation that should be sanctioned are already recorded for the Council in the reports of their Panel of Experts for the DPRK. Lists of related materials have also been developed by the Nuclear Supplies Group. To date the permanent five have sanctioned only a very few of the materials on either list. The Council also needs member states to strengthen export, customs and financial controls on dual-use items that are "below grade" of those newly sanctioned items. This will stifle the North's ability to upgrade or jerry-rig these hitherto unsanctioned items as a way of maintaining their program.


READ: Five things to know about North Korea's planned nuclear test


Also critical to the success of this choking of supplies would be stricter controls of the illicit financing that supports such trade. Putting strong enforcement behind the 2087 resolution's concern about DPRK cash flows, especially through its embassies, is also in order.


Another, somewhat unprecedented, sanctions option would be a Council-issued travel ban on North Korea placed on all scientists, engineers and others with specialized expertise in centrifuge technologies and uranium enrichment.


Political agreement on these measures will not be easy to attain among the permanent five nations of the Security Council. But a product-focused sanctions approach -- especially leveraged to aim for more direct diplomatic engagement with the DPRK while denying them material to grow their illicit programs -- has the best chance of gaining Council consensus.


The opinions expressed in this commentary are solely those of George A. Lopez.






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3 dead in West Side crash













Western Avenue crash


Officials examine a Jeep Cherokee that crashed and left three critically injured near 31st Street and Western Avenue.
(Nuccio DiNuzzo, Chicago Tribune / February 5, 2013)



























































A man and two women died in a crash on the city's West Side, authorities said.


Firefighters were called to the accident near 31st Street and Western Avenue about 8:30 p.m., according to the department's media office.


Fire officials cut three people out of a red Jeep after the car lost control and somehow ended up on it's top just west of Western Avenue on 31st Street, police  said.





Three people had been riding in the SUV and all were taken to Mount Sinai Hospital and pronounced dead there, police said. They were the only occupants in the SUV.


Just before 10 p.m., the radio in the SUV -- which was flipped on its top -- could still be heard faintly from a distance.


The SUV was eastbound on 31st Street when it hit a curb, then a light pole, and ended up on its roof, Chicago Police News Affairs Officer Hector Alfaro said.


"Some of the damage is from the fire department," police said of the doors, which had been cut to free the car's occupants. "But they flipped the car themselves.


Investigators from the department's Major Accidents Investigations Unit arrived at the scene Thursday night to investigate what had happened.


Three people were taken to Mount Sinai Hospital, one in "extremely critical" condition, two in critical condtion, according to the fire department. A spokesman at the Cook County medical examiner's office confirmed the deaths.


Video from the scene showed a red Jeep flipped over, with its roof crushed, and a person wrapped in black on a stretcher being taken into an ambulance.


chicagobreaking@tribune.com


Twitter: @ChicagoBreaking






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Tsunami kills at least five in Solomons after big Pacific quake


(Reuters) - A powerful 8.0 magnitude earthquake set off a tsunami that killed at least five people in a remote part of the Solomon Islands on Wednesday and triggered evacuations across the South Pacific as island nations issued tsunami alerts.


The quake struck 340 km (211 miles) east of Kira Kira in the Solomons, the Pacific Tsunami Warning Center in Hawaii said as it issued warnings for the Solomons and other South Pacific nations including Australia and New Zealand. It later canceled the warnings for the outlying regions.


A tsunami measuring 0.9 metres (three feet) hit near the town of Lata on the remote Santa Cruz island, swamping some villages and the town's main airport as people fled to safety on higher ground.


More than three dozen aftershocks up to magnitude 6.6 rocked the region in the hours after the quake, the U.S. Geological Survey said.


Lata hospital's director of nursing, Augustine Pilve, told New Zealand television that five people had been killed, including a boy about 10 years old, adding that more casualties were possible as officials made their way to at least three villages that may have been hit.


"It's more likely that other villages along the coast of Santa Cruz may be affected," he said.


Disaster officials in the Solomon Islands capital Honiara told the Solomon Islands Broadcasting Corp. that they believed six people were dead and that five villages had suffered damage.


Solomon Islands Police Commissioner John Lansley said it was too early to fully assess the damage or casualty numbers, and said authorities hoped to send aircraft to the region on Thursday to help determine the extent of the damage.


Luke Taula, a fisheries officer in Lata, said he watched the tsunami as it came in small tidal surges rather than as one large wave.


"We have small waves come in, then go out again, then come back in. The waves have reached the airport terminal," he told Reuters by telephone.


The worst damage was to villages on the western side of a point that protects the main township, he said.


"There are reports that some communities have been badly hit, their houses have been damaged by the waves."


About 5,000 people lived in and around the town, but the area was deserted as people fled to higher ground, Taula said.


HOT SPOT


The Solomons, perched on the geologically active "Pacific Ring of Fire", were hit by a devastating tsunami following an 8.1 magnitude quake in 2007. At least 50 people were killed then and dozens left missing and more than 13 villages destroyed.


"It's an area that is very prone to earthquakes," said Jonathan Bathgate, seismologist at Geoscience Australia. "We've had seven 6-plus magnitude earthquakes in this region since January 31, so it has been very active in the past week."


Initial signs were that the tremor was a thrust quake, in which vertical movement in the continental plates generates higher risk of tsunami, Bathgate added.


Authorities in the Solomons, Fiji, Guam and elsewhere had urged residents to higher ground before the Pacific Tsunami Warning Center canceled its alerts.


"The earthquake would have to be quite a bit bigger to make a much more sizeable tsunami," said Brian Shiro, geophysicist for the center in Hawaii.


(Reporting by James Grubel in CANBERRA,; Additional reporting by Michael Perry and Lincoln Feast in SYDNEY and Alex Dobuzinskis in LOS ANGELES)



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U.S. stock index futures signal higher Wall Street open

LONDON (Reuters) - U.S. stock index futures pointed to a higher open on Wall Street on Tuesday, with futures for the S&P 500, the Dow Jones and the Nasdaq 100 rising 0.2 to 0.3 percent.


U.S. stocks slid on Monday, giving the S&P 500 its worst day since November, as renewed worries about the euro zone crisis caused the market to pull back from recent gains. Europe's main markets were marginally in the black after the latest batch of corporate results on Tuesday.


NYSE Euronext , the exchange being bought by rival IntercontinentalExchange , said slower trading drove fourth-quarter net revenue down 11 percent to $562 million.


ICSC/Goldman Sachs release chain store sales for the week ended February 2 at 7.45 a.m EST. Sales fell 1.0 percent in the previous week.


The U.S. government has launched a civil lawsuit against Standard & Poor's and parent The McGraw-Hill Companies over mortgage bond ratings, the first federal enforcement action against a credit rating agency over alleged illegal behavior tied to the recent financial crisis.


Redbook releases its Retail Sales Index of department and chain store sales for January at 1355 GMT. Sales fell 0.5 percent in the previous month.


Major companies announcing results on Tuesday included Walt Disney Company , Automatic Data Processing and Delphi Automotive .


The Institute for Supply Management releases its January non-manufacturing index at 1500 GMT. Economists forecast a reading of 55.2, versus 55.7 in December.


John Malone's cable group Liberty Global has approached Britain's No. 2 pay-TV operator Virgin Media about making a bid for the firm, the UK group said on Tuesday.


Technology services provider IBM on Tuesday said it is aiming to take on competitors such as Oracle and Hewlett Packard by offering a more affordable Power Systems server and storage product range later this month.


Japan's transport safety agency said it is still unclear whether battery chemistry or an electrical issue caused a main battery on a Boeing Co 787 Dreamliner operated by All Nippon Airways to overheat last month, forcing it to make an emergency landing.


European shares <.fteu3> rose 0.5 percent on Tuesday, stabilizing after the previous session's sharp sell-off, as investors digested a raft of earnings reports.


The Dow Jones industrial average <.dji> fell 129.71 points, or 0.93 percent, at 13,880.08 on Monday. The Standard & Poor's 500 Index <.spx> was down 17.46 points, or 1.15 percent, at 1,495.71. The Nasdaq Composite Index <.ixic> was down 47.93 points, or 1.51 percent, at 3,131.17.


(Reporting by Atul Prakash)



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Activists: Stray cats dying in Belarus basements






MINSK, Belarus (AP) — City authorities in the Belarusian capital of Minsk are carelessly trapping stray cats in locked basements, dooming them to starvation, animal activists say.


Elena Titova, leader of the animal rights group Protect Life, says the ex-Soviet nation has no long-term shelters to house stray animals. She estimated that about 9,000 strays have been killed in the Belarusian capital alone over the past three years.






“Killing the animals with impunity has become a government policy,” Titova said Monday. “This barbarian policy can be described as ‘No animal, no problem.’ They find it easier to kill them as they don’t have to build shelters.”


City authorities say they must isolate the basements of apartment buildings in line with Soviet-era health rules to prevent rodents from getting in.


“Cats and residents will scream for a while and then they will calm down,” said Alexander Yubkov, a city worker who has welded iron covers on basement windows.


He said if workers did not secure basements “sanitary officials will come and order us to pay a fine.”


Minsk resident Karolina Litvinova said authorities don’t bother to check whether there are no animals left in a basement before shutting it.


“My heart aches to hear how the animals, whom they have walled up, are screaming day and night,” said 72-year-old Antonina Gayenko, a retiree who was feeding some cats through small holes in the iron plates. “They have doomed them to death from thirst and hunger.”


Some residents have drilled bigger holes in the iron plates to allow the cats to escape.


“We have saved five cats that have been walled up,” said Litvinova, who has urged authorities to prosecute some city workers on charges of animal cruelty.


Under a practice that has been followed since Soviet times, stray animals in Belarus are placed in shelters for five days and then killed by injection owners don’t show up.


Animal and Pets News Headlines – Yahoo! News





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Richard III still the criminal king



















Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen





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STORY HIGHLIGHTS


  • Dan Jones: Richard III's remains found; some see chance to redeem his bad reputation

  • Jones says the bones reveal and confirm his appearance, how he died and his injuries

  • Nothing changes his rep as a usurper of the Crown who likely had nephews killed, Jones says

  • Jones: Richard good or bad? Truth likely somewhere in between




Editor's note: Dan Jones is a historian and newspaper columnist based in London. His new book, "The Plantagenets" (Viking) is published in the US this Spring. Follow him on Twitter.


(CNN) -- Richard III is the king we British just can't seem to make our minds up about.


The monarch who reigned from 1483 to 1485 became, a century later, the blackest villain of Shakespeare's history plays. The three most commonly known facts of his life are that he stole the Crown, murdered his nephews and died wailing for a horse at the Battle of Bosworth in 1485. His death ushered in the Tudor dynasty, so Richard often suffers the dual ignominy of being named the last "medieval" king of England -- in which medieval is not held to be a good thing.


Like any black legend, much of it is slander.


Richard did indeed usurp the Crown and lose at Bosworth. He probably had his nephews killed too -- it is unknowable but overwhelmingly likely. Yet as his many supporters have been busy telling us since it was announced Monday that Richard's lost skeleton was found in a car park in Leicester, he wasn't all bad. In fact, he was for most of his life loyal and conscientious.



Dan Jones

Dan Jones



To fill you in, a news conference held at the University of Leicester Monday confirmed what archaeologists working there have suspected for months: that a skeleton removed from under a parking lot in the city center last fall was indeed the long-lost remains of Richard III.


His official burial place -- under the floor of a church belonging to the monastic order of the Greyfriars -- had been lost during the dissolution of the monasteries that was carried out in the 1530s under Henry VIII. A legend grew up that the bones had been thrown in a river. Today, we know they were not.


What do the bones tell us?


Well, they show that Richard -- identified by mitochondrial DNA tests against a Canadian descendant of his sister, Anne of York -- was about 5-foot-8, suffered curvature of the spine and had delicate limbs. He had been buried roughly and unceremoniously in a shallow grave too small for him, beneath the choir of the church.


He had died from a slicing blow to the back of the head sustained during battle and had suffered many other "humiliation injuries" after his death, including having a knife or dagger plunged into his hind parts. His hands may have been tied at his burial. A TV show aired Monday night in the UK was expected to show a facial reconstruction from the skull.


Opinion: What will the finding of Richard III mean?



In other words, we have quite a lot of either new or confirmed biographical information about Richard.


He was not a hunchback, but he was spindly and warped. He died unhorsed. He was buried where it was said he was buried. He very likely was, as one source had said, carried roughly across a horse's back from the battlefield where he died to Leicester, stripped naked and abused all the way.


All this is known today thanks to a superb piece of historical teamwork.


The interdisciplinary team at Leicester that worked toward Monday's revelations deserves huge plaudits. From the desk-based research that pinpointed the spot to dig, to the digging itself, to the bone analysis, the DNA work and the genealogy that identified Richard's descendants, all of it is worthy of the highest praise. Hat-tips, too, to the Richard III Society, as well as Leicester's City Council, which pulled together to make the project happen and also to publicize the society and city so effectively.


However, should anyone today tell you that Richard's skeleton somehow vindicates his historical reputation, you may tell them they are talking horsefeathers.










Richard III got a rep for a reason. He usurped the Crown from a 12-year old boy, who later died.


This was his great crime, and there is no point denying it. It is true that before this crime, Richard was a conspicuously loyal lieutenant to the boy's father, his own brother, King Edward IV. It is also true that once he was king, Richard made a great effort to promote justice to the poor and needy, stabilize royal finances and contain public disorder.


But this does not mitigate that he stole the Crown, justifying it after the fact with the claim that his nephews were illegitimate. Likewise, it remains indisputably true that his usurpation threw English politics, painstakingly restored to some order in the 12 years before his crime, into a turmoil from which it did not fully recover for another two decades.


So the discovery of Richard's bones is exciting. But it does not tell us anything to justify changing the current historical view of Richard: that the Tudor historians and propagandists, culminating with Shakespeare, may have exaggerated his physical deformities and the horrors of Richard's character, but he remains a criminal king whose actions wrought havoc on his realm.


Unfortunately, we don't all want to hear that. Richard remains the only king with a society devoted to rehabilitating his name, and it is a trait of some "Ricardians" to refuse to acknowledge any criticism of their hero whatever. So despite today's discovery, we Brits are likely to remain split on Richard down the old lines: murdering, crook-backed, dissembling Shakespearean monster versus misunderstood, loyal, enlightened, slandered hero. Which is the truth?


Somewhere in between. That's a classic historian's answer, isn't it? But it's also the truth.


Follow us on Twitter @CNNOpinion.


Join us on Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Dan Jones.






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Chicago, your commute will likely take far longer than you think









You can predict with a high degree of confidence that the time it takes to drive from Point A to B on any given day is unpredictable.


And it's not just snowy or rainy days. It can be any day.


If there is a bright side, it's that Chicago was not the worst.





Residents of the Chicago area are accommodating that increasing uncertainty by setting aside more time each day — just in case — for the commute, new research shows.


For the most important trips, such as going to work, medical appointments, the airport or making a 5:30 p.m. pickup at the child care center to avoid late fees, drivers in northeastern Illinois and northwest Indiana should count on allotting four times as much time as it would take to travel in free-flowing traffic, according to the "Urban Mobility Report" to be released Tuesday by the Texas A&M Transportation Institute. The analysis is based on 2011 data, which are the most recent available.


It is the first time that travel reliability was measured in the 30-year history of the annual report. The researchers created a Planning Time Index geared toward helping commuters reach their destinations on time in more than 95 percent of the trips. A second index, requiring less padding of travel time, would get an employee to work on time four out of five days a week.


"If you plan only for average traffic conditions on your trip in the Chicago area, you are going to be late at least half the time," said Bill Eisele, a senior research engineer at the Transportation Institute who co-authored the study.


The constant unreliability that hovers over commuting is stealing precious time from other activities, crimping lifestyles, causing mounting frustration for drivers and slapping extra costs on businesses that rely on just-in-time shipments to manage inventory efficiently, researchers found.


The Chicago region ranked No. 7 among very large urban areas and 13th among 498 U.S. cities on a scale of the most unreliable highway travel times. The Washington area was the worst. A driver using the freeway system in the nation's capital and surrounding suburbs should budget almost three hours to complete a high-priority trip that would take only 30 minutes in light traffic, the study said.


The Washington area was followed on the list by the metropolitan areas of Los Angeles, New York-Newark, Boston, Dallas-Fort Worth, and Seattle.


Rounding out the top 10, the Chicago metro area was trailed by San Francisco-Oakland, Atlanta, and Houston.


Truck driver Frank Denk said he usually adds an hour or two to his trip through the Chicago area. Sometimes, it's not enough, other times traffic isn't a problem, he said. The one constant, Denk said Monday afternoon while taking a break at the O'Hare Oasis on the Tri-State Tollway, is that it is almost impossible to anticipate correctly.


"Job-wise, it can be very detrimental to truckers," said Denk, who is based in Green Bay, Wis. "All of a sudden, you're not able to make your delivery."


But quadrupling the time to travel back and forth each day? That's excessive, said Mike Hennigan, a 64-year-old accountant who regularly commutes from his Evanston home to his office near the junction of the Kennedy and Edens expressways. He recommends doubling the anticipated travel time.


"I can predict when it's going to be bad," Hennigan said, although he is less optimistic about his travel times when he heads toward downtown.


"Coming into the Loop can be deadly, especially later in the week," Hennigan said.


Overall, traffic congestion in the Chicago region is getting worse as the economy improves, although it's not as severe as the grip that gridlock has taken recently on some other very large metropolitan areas in the U.S., according to the report. The Washington area again topped the list, followed by Los Angeles, San Francisco-Oakland, New York-Newark, Boston, Houston, Atlanta, Chicago, Philadelphia, and Seattle.


No longer being ranked at the very top of the congestion heap provides little consolation for Chicago-area drivers.


What should be a 20-minute jaunt across town in Chicago or the suburbs if highway capacity were sufficient to permit vehicles to travel the speed limit now becomes about an 80-minute ordeal, according to the Texas A&M study. Scheduling 80 minutes for the trip would ensure an on-time arrival 19 out of 20 times, the study concluded.


But that would be similar to treating every day of the year as if it were like Monday, when a moderate snowfall blanketing the Chicago region smacked traffic into slow motion during the morning rush.





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Mexico says gas leak caused deadly Pemex blast


MEXICO CITY (Reuters) - The Mexican government said on Monday that a gas leak caused a blast that killed at least 37 people at the offices of state oil monopoly Pemex in Mexico City, raising fresh questions about the firm's safety record.


Attorney General Jesus Murillo said no trace of explosives was found at the site of the explosion, the latest in a string of disasters to hit the lumbering oil giant.


New President Enrique Pena Nieto is seeking to overhaul Pemex as part of raft of economic reforms aimed at boosting growth in Latin America's No. 2 economy.


"We have been able to determine that the explosion was caused by an accumulation of gas in the basement of the building," Murillo told a news conference in Mexico City. He said the gas was believed to be methane.


Murillo said the gas may have leaked from containers in a storage facility connected to where the explosion took place by a tunnel. Or it could have leaked from an aging pipeline that passed through the building.


Another possibility is that it emanated from sewage in the ground under the building, he said.


Mexico City is built on a dried-out lake bed, and the stench of sewage often hangs over parts of the city downtown.


Murillo said contractors working on supports under the building needed electricity and used an extension cord, which could have caused a spark that ignited the gas.


Thursday afternoon's blast at a building at the Pemex headquarters complex in downtown Mexico City prompted speculation the incident could have been an act of sabotage.


That raised fears that drug war violence that has killed an estimated 70,000 people in the past six years could have entered a new, more sinister phase, and rattled investors.


REFORM OUTLOOK


The explosion next to Pemex's flagship tower block prompted renewed criticism of the oil giant's safety record.


For years a source of national pride, Pemex has proven stubbornly resistant to change. The company has become a touchstone for Mexico's capacity for economic reform since oil output began to fall behind the performance of other major producers.


A symbol of Mexican self-sufficiency since president Lazaro Cardenas expropriated U.S. and British oil companies in 1938 and nationalized the oil industry, Pemex has also become a byword for inefficiency and graft.


Pena Nieto, who took office in December, has made passing an energy reform to boost crude production a priority this year.


Geoffrey Pazzanese, who co-manages Federated Investors' $523 million Federated InterContinental Fund, said an accident would help the government push its energy reform.


"It's probably going to be positive for the reform, it underlines the need for Pemex to invest in its own capital spending," he said before Murillo spoke. "You have a big explosion in a building that's right in the middle of the city.


"Conspiracy theories aside, people are probably outraged about the situation and that tends to spur action," he added.


Mexico is the world's No. 7 oil producer and a top exporter to the United States. But output has slumped from a peak of 3.4 million barrels per day in 2004 to less than 2.6 million bpd now.


While the company had said it improved safety prior to the blast, fires, explosions and other safety breaches are regular occurrences.


Mexico loses hundreds of millions of dollars a year to theft of oil carried out by drug gangs, petty criminals and corrupt workers. The Mexican government relies on oil revenues to fund nearly a third of the federal budget.


The heavy tax burden has limited Pemex's ability to fund new projects and lift crude output. The government has warned that Mexico could become a net oil importer as early as 2018 if major new oil finds cannot be developed.


The company had pinned its long-term hopes of boosting production on the deep waters of the Gulf of Mexico, where the government estimates there are significant oilfields.


The last conservative administration had helped Pemex by drawing more outside investment into mature oilfields via the auction of private contracts.


(With reporting by David Alire Garcia, Krista Hughes, Ana Isabel Martinez and Anahi Rama; Writing by Simon Gardner and Dave Graham; Editing by Xavier Briand)



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Spanish worries tarnish growth outlook

London (Reuters) - European shares edged up but the euro fell and German bonds trimmed their losses on Monday as a resurgence of worries about Europe undermined positive sentiment stemming from stronger U.S. and Chinese economic data.


However, the rising confidence in the global economic recovery underpinned oil and copper, although prices moved in narrow ranges at the start of a week which sees policy meeting by several major central banks and a summit of European leaders.


"We are now seeing a consistent story of moderate growth in the U.S. and China," said Ric Spooner, chief market analyst at CMC Markets in Sydney.


The economic outlook brightened considerably last week after data showed U.S. factory activity quickened in January and hiring increased, and after a survey of euro zone business activity suggested the worst of the region's downturn may be over.


On Sunday China's official purchasing managers' index (PMI) for the increasingly important services sector posted a fourth-straight monthly rise in January, although its slim gain added to evidence that the global recovery is a modest one.


But Spain dampened the mood in Europe by reporting that its unemployment problems are worsening as a corruption scandal threatens to engulf Prime Minister Mariano Rajoy, with the opposition calling for his resignation.


"If Rajoy were really forced to resign, if we were to have new elections in Spain, that would not help the improvement we've seen in financial markets," Tobias Blattner, European economist at Daiwa Capital Markets said.


Ten-year Spanish government bond yields rose 11 basis points to 5.32 percent in early Monday trade.


The equivalent Italian yields also rose on concerns that a scandal involving a major domestic bank could boost support for the centre-right party led by former prime minister Silvio Berlusconi as election day approaches.


The German Bund future which had opened 53 ticks lower at 141.48, trimmed its losses to be only down 13 ticks.


The pan-European FTSEurofirst 300 index <.fteu3> held near a 23-month high after a solid rally since the start of the year to be up 0.15 percent. London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> were flat to slightly lower.


Meanwhile the euro fell 0.3 percent to a day's low of $1.3602 after the Spanish jobs data was released, with bids cited at $1.3580 and $1.3600.


(Reporting by Richard Hubbard. Editing by David Stamp)



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