Economy adds 157K jobs, unemployment hits 7.9%

WASHINGTON U.S. employers added 157,000 jobs in January and hiring was stronger over the past two years than previously thought, providing reassurance that the job market held steady while economic growth sputtered.

The mostly upbeat Labor Department report Friday included one negative sign: The unemployment rate rose to 7.9 percent from 7.8 percent in December. The unemployment rate is calculated from a survey of households, while job gains come from a survey of employers.

The hiring picture over the past two years looked better after the department's annual revisions. Those showed employers added an average of roughly 180,000 jobs per month in 2012 and 2011, up from previous estimates of about 150,000. And hiring was stronger at the end of last year, averaging 200,000 new jobs in the final three months.

Stock futures rose after the report was released.

One notable change in the job market is the stronger contribution from construction firms. They added 28,000 jobs in January and nearly 100,000 in the past four months. The gains are consistent with a rebound in home construction and a broader recovery in housing.

Last month's hiring should cushion the impact of the higher Social Security taxes that most consumers are paying this year. And it would help the economy resume growing after it shrank at an annual rate of 0.1 percent in the October-December quarter.

Higher Social Security taxes are reducing take-home pay for most Americans. A person earning $50,000 a year will have about $1,000 less to spend in 2013. A household with two high-paid workers will have up to $4,500 less. Taxes rose after a 2 percent cut, in place for two years, expired Jan. 1.

Analysts expect the Social Security tax increase to shave about a half-point off economic growth in 2013, since consumers drive about 70 percent of economic activity.

The hit to consumers is coming at a precarious moment for the economy. It contracted in the fourth quarter for the first time in 3 1/2 years. The decline was driven largely by a steep cut in defense spending and a drop in exports. Analysts generally think those factors will prove temporary and that the economy will resume growing.

Still, the contraction last quarter points to what are likely to be key challenges for the economy this year: the prospect of sharp government spending cuts and uncertainty over whether Congress will agree to raise the federal borrowing cap.

Most analysts predict that the economy will grow again in the January-March quarter, though likely at a lackluster annual rate of around 1 percent. They expect the economy to expand about 2 percent for the full year.

Two key drivers of growth improved last quarter: Consumer spending increased at a faster pace. And businesses invested more in equipment and software.

In addition, homebuilders are stepping up construction to meet rising demand. That could generate even more construction jobs.

And home prices are rising steadily. That tends to make Americans feel wealthier and more likely to spend. Housing could add as much as 1 percentage point to economic growth this year, some economists estimate.

Auto sales reached their highest level in five years in 2012 and are expected to keep growing this year. That's boosting production and hiring at U.S. automakers and their suppliers.

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Police: Suicide Bombing Strikes US Embassy

A suspected suicide bomber detonated an explosive Friday in front of the U.S. Embassy in Ankara, killing himself and a guard at the entrance gate, officials said.

U.S. Ambassador Francis Ricciardione told reporters that a Turkish citizen was also wounded in the 1:15 p.m. blast in the Turkish capital.

There was no immediate claim of responsibility, but both Kurdish rebels and Islamic militants are active in Turkey.

The bomb appeared to have exploded inside the security checkpoint at the side entrance to the embassy, but did not damage the inside of the embassy itself.

TV footage showed the embassy door blown off its hinges. The windows of nearby businesses were also shattered by the power of the blast, and debris littered the ground and across the road.

Police swarmed the area and immediately cordoned it off and several ambulances were dispatched.

An AP journalist saw one woman who appeared to be seriously injured being carried into an ambulance but a hospital official said she was "not in critical condition." On its website, the Hurriyet newspaper identified the woman as Didem Tuncay, a television journalist who it said was at the embassy to get a U.S. visa.

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The embassy building is heavily protected and located near several other embassies, including that of Germany and France. Hurriyet newspaper said staff at the embassy took shelter in "safe room" inside the compound soon after the explosion.

Phones were not being answered at the embassy later Friday.

Police examined security cameras around the embassy and identified two people who could have been the suicide bomber, a police official said, speaking on condition of anonymity in line with government rules.

In a statement, the U.S. Embassy thanked Turkey for "its solidarity and outrage over the incident."

Kurdish rebels who are fighting for autonomy in the Kurdish-dominated southeast have dramatically stepped up attacks in Turkey over the last year. The United States considers the Kurdistan Workers Party, or PKK, a terrorist organization and has helped Turkey in its battle against the group. But the group has not attacked U.S. targets in its nearly 30-year insurgency.

Homegrown Islamic militants tied to al-Qaida have carried out suicide bombings in Istanbul, Turkey's bustling commercial center. In a 2003 attack on the British consulate, a suspected Islamic militant rammed an explosive-laden pickup truck into the main gate, killing 58 people, including the British consul-general.

In 2008, an attack blamed on al-Qaida-affiliated militants outside the U.S. Consulate in Istanbul left three assailants and three policemen dead.

Turkey is also being deeply affected by the brutal civil war in neighboring Syria, and has become a harsh critic of President Bashar Assad's regime there. The war has left at least 60,000 people dead so far, according to the U.N., and Turkey is sheltering tens of thousands of Syrian refugees.

The first of six Patriot missile batteries being deployed to Turkey to protect the country against attack from Syria was just declared operational and placed under NATO command. Others are expected to become operational in the coming days.

——

Associated Press writer Ezgi Akin contributed to the report.

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Drone school: Not a cushy number

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Malaysia Airlines joins oneworld global airline alliance

KUALA LUMPUR: The oneworld global airline alliance on Thursday welcomed Malaysia flag carrier Malaysia Airlines (MAS) as its newest member.

Oneworld's CEO Bruce Ashby said MAS will enhance the alliance's presence in Southeast Asia and turn Kuala Lumpur into its gateway to the region.

Mr Ashby said: "We didn't have a member in Southeast Asia. We had Hong Kong, we had Sydney, but we were lacking a presence in this area. We now have Malaysia, and Sri Lanka will be coming in probably later this year."

Malaysia Airlines is oneworld's 12th member.

The alliance operates over 9,000 daily flights, carrying nearly a million passengers a day.

It currently flies to more than 850 destinations in almost 160 countries.

MAS said joining the alliance is part of its key strategy in its turnaround plan.

- CNA/fa

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Standoff drags into 3rd day as man holds child in bunker

STORY HIGHLIGHTS

• NEW: Law enforcement and volunteers at hostage standoff holding up well, sheriff says


• A gunman is holding the boy hostage in an underground bunker


• The sheriff says investigators have no reason to believe boy has been harmed


• Authorities get coloring books, crayons and medicine to the captive boy

Midland City, Alabama (CNN) -- Somewhere underneath this red Alabama dirt is a little boy.

A kindergartner, snatched from the safety of his school bus by a gunman and stashed in an underground bunker;

A boy who needs daily medication;

A child that this Bible Belt community of 2,300 is praying for.

Many details have been released about the boy's abductor:

How he was supposed to have been in court to face charges that he'd shot at his neighbors over a minor property dispute;

How he boarded a stopped school bus Tuesday and shot dead the bus driver;

Charles Poland was fatally shot in Alabama on Tuesday.

How he worked on the bunker in the middle of the night for more than a year.

But as the sun rose again on Midland City on Thursday, many more questions remain:

How deep is the bunker?

What's in it beside the man and the boy?

How are they keeping warm when temperatures have dipped into the 30s in the area?

Is the boy safe?

And most importantly, why him?

The driver

The gunman stormed into the school bus Tuesday afternoon and demanded that the driver hand him a child.

The driver, 66-year-old Charles Poland Jr., was a gentle Bible-reading man who could not stand to discipline the children on his bus because it hurt his heart, the Dothan Eagle newspaper reported.

When he refused the demand, police said, the gunman shot him several times as 22 horrified children scrambled for cover.

But the man was able to grab the boy and drag him to his underground bunker.

And the standoff began.

The suspect

Authorities have not released the name of the suspected gunman. But neighbors and news outlets around Midland City identified him as 65-year-old Jimmy Lee Dykes, a Vietnam veteran and a retired truck driver.

Neighbor Jimmy Davis told CNN that Dykes began digging a hole on his property soon after he moved in down the road from him.

Davis, who works a night shift, said Dykes worked on his bunker in the middle of the night -- every other night, between 2 and 3 a.m., for a year and a half.

He was friendly and welcoming and told Davis the hole would be a storm shelter.

But Tim Byrd, chief investigator with the Dale County Sheriff's Office, told the Southern Poverty Law Center's Hatewatch that Dykes had "anti-America" views.

"His friends and his neighbors stated that he did not trust the government, that he was a Vietnam vet, and that he had PTSD," Byrd told the civil rights group. "He was standoffish, didn't socialize or have any contact with anybody. He was a survivalist type."

The court date

On Wednesday, the day before the standoff began, Dykes was supposed to appear in court to answer to charges that he'd shot at Davis during a December argument over the dirt road that separated their homes.

Davis was moving out when his truck -- hauling a trailer -- dug ruts into the dirt speed bump that Dykes had built up across the road.

Dykes "got mad about what he saw" and stood by the side of the road, yelling and cursing, said Davis' mother, Claudia.

He then ran to his van, got a pistol and fired two shots at the truck, the Davises said.

Fortunately, no one was hurt, including Claudia Davis' 6-month-old daughter, who was inside.

The Wednesday court date in nearby Ozark was for menacing, a misdemeanor that carries penalties of up to six months in jail.

Another neighbor, Ronda Wilbur, said Dykes beat her dog to death with a lead pipe and then bragged to her husband about it.

"He made it very clear that any animals or people that came onto his property would be killed," she said.

Wilbur said she complained to animal control authorities and thought that this would stop the behavior.

"He just got increasingly more bizarre," Wilbur said.

The boy

Very little information has been released about the boy.

Police and school officials have said the child is 6, but a state representative in close contact with the family says he is 5 and will turn 6 in two weeks.

One thing is for certain: the kindergartner didn't know Dykes, State Rep. Steve Clouse said.

Through a PVC pipe that extends into the bunker, authorities have pleaded with the suspect to let the boy go -- to no avail.

The man agreed to let police send down coloring books, crayons and the prescription medicine the little boy desperately needs for Asperger's syndrome and attention deficit hyperactivity disorder.

But nothing else has changed.

As the standoff dragged into Thursday morning, the boy's parents were doing their best to hold it together.

They were "holding on by a thread," Clouse said.

The scene

Early Thursday morning, dozens of law enforcement vehicles clogged the dead-end dirt road that leads to Dykes' house. They were from local police, the FBI, even Homeland Security.

Authorities evacuated neighbors. Officials closed schools in three nearby districts for the week.

With little movement, police have been loath to share much with the media.

Authorities called off a planned news conference late Wednesday night, saying there was nothing new to report. Early Thursday morning, Dale County Sheriff Wally Olson gave reporters a similar message, but said officers and volunteers trying to resolve the situation were holding up well.

At an earlier news conference Wednesday, Olson said he had "no reason to believe that the child has been harmed."

A reporter asked what the community could do to help.

"Pray," the sheriff said.

"Pray."

CNN's George Howell reported from Midland City and Lateef Mungin wrote from Atlanta. CNN's Tristan Smith, Marlena Baldacci and In Session's Jessica Thill contributed to this report.

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Standoff with Ala. school bus shooting suspect in third day

Updated at 8:02 a.m. ET

MIDLAND CITY, Ala. A standoff that started when a man boarded a school bus full of children near his home in a rural Alabama neighborhood, killed the driver and took one 5-year-old boy hostage entered its third day Thursday.

The suspect and the child hostage have not been identified by police.

People who live along the rutted red clay road said the suspect is a retired truck driver with a reputation, CBS News correspondent Manuel Bojorquez reports. They said he allegedly beat a dog to death and threatened to shoot kids who trespass on his property. He was reportedly due in court this week on a weapons charge.

Neighbor Ronda Wilbur described the suspect to CBS News as "very anti-social, very anti-government" and that he "hates everybody."

"My granddaughter who just turned 7, when I have her visiting me this next weekend, I won't have to worry about 'mean man,'" Wilbur told CBS News. "One way or another he's not gonna be there. He will either be locked up, or he'll be dead."

Wilbur told The Associated Press that the suspect beat her 120-pound dog with a lead pipe for coming onto his side of the dirt road. The dog died a week later.

"He said his only regret was he didn't beat him to death all the way," Wilbur told the AP. "If a man can kill a dog, and beat it with a lead pipe and brag about it, it's nothing until it's going to be people."

The neighborhood near Midland City, population 2,300, remained under siege after the Tuesday shooting, with the suspect and child holed up in a bunker-type shelter on the man's property that was equipped with electricity, food and TV.

On Thursday, dozens of police cars and rental cars that had brought FBI agents to the site were parked about the state highway at the clay road's entrance. A large law enforcement truck also pulled up before dawn to a staging area for law enforcement agents that was lit by bright lights overnight.

At least one ambulance was parked nearby and numerous television news satellite trucks also lined up across the rural highway.

Homes on the road had been evacuated earlier after authorities found what they believed to be a bomb on the property. SWAT teams earlier had taken up positions around the gunman's property and police negotiators tried to win the kindergartener's safe release.

The situation remained unchanged for hours as negotiators continued talking to the suspect, Alabama State Trooper Charles Dysart told a news conference late Wednesday. Earlier in the day, Sheriff Wally Olson said that authorities had "no reason to believe that the child has been harmed."

Local TV station WDHN obtained a police dispatch recording of the moment officers first arrived at the site. On it, the officers are heard saying that they were trying to communicate with the suspect through a PVC pipe leading into the shelter.

Authorities gave no details of the standoff, and it was unclear if the suspect made any demands from the bunker, which resembled a tornado shelter.

State Rep. Steve Clouse, who met with authorities and visited the boy's family, said the bunker had food and electricity, and the youngster was watching TV.

At one point, authorities lowered medicine into the bunker for the boy after his captor agreed to it, Clouse said.

The standoff began after school Tuesday afternoon. Olson said the man shot the bus driver several times when he refused to hand over the child. The gunman then took the boy away.

"As far as we know there is no relation at all. He just wanted a child for a hostage situation," said Michael Senn, a pastor who helped comfort other traumatized children after the attack.

The bus driver, Charles Albert Poland Jr., 66, was hailed by locals as a hero who gave his life to protect the 21 students aboard the bus. Authorities say most of the students scrambled to the back of the bus when the gunman boarded and said he wanted two boys 6 to 8 years old.

But when the gunman went down the aisle, authorities said, Poland put his arm out to grab a pole near the front steps of the vehicle, trying to block the suspect. That's when authorities say the driver was shot four times before the gunman grabbed the child at random and fled.

Mike and Patricia Smith, who live across the street from the suspect and whose two children were on the bus, said their youngsters had a run-in with him about 10 months ago.

"My bulldogs got loose and went over there," Patricia Smith said. "The children went to get them. He threatened to shoot them if they came back."

"He's very paranoid," her husband said. "He goes around in his yard at night with a flashlight and shotgun."

The suspect had been scheduled to appear in court Wednesday to face a charge of menacing some neighbors as they drove by his house weeks ago. Claudia Davis said he yelled and fired shots at her, her son and her baby grandson over damage the suspect claimed their pickup truck did to a makeshift speed bump in the dirt road. No one was hurt.

"Before this happened, I would see him at several places and he would just stare a hole through me," Davis said. "On Monday I saw him at a laundromat and he seen me when I was getting in my truck, and he just stared and stared and stared at me."

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Obama Prods GOP on Immigration Negotiations

Jan 31, 2013 6:00am

                                                                        (Image Credit: John Gurzinski/Getty Images)

President Obama has apparently had enough of leading from behind.

During the health-care push, Obama left Congress to its own devices. On immigration, he’s doing just the opposite, attempting to prod Republican legislators to the middle by demanding a vote on his own plan.

Obama Confident Immigration Overhaul Passes This Year

The president insisted Tuesday that Congress vote on his plan as soon as possible, barring agreement on something else.

“It’s important for us to recognize that the foundation for bipartisan action is already in place,” Obama said, referring to a bipartisan Senate bill offered up by the so-called Gang of Eight senators, which looks much more palatable to Republicans than Obama’s own plan. “And if Congress is unable to move forward in a timely fashion, I will send up a bill based on my proposal and insist that they vote on it right away.”

In doing so, Obama dared Congress to say “no” to something specific.

A Glossary for Immigration Overhaul

It’s the same strategy Obama used in the “fiscal-cliff” talks. With a year-end deadline approaching, he pushed Congress to vote on his own plan: to let higher income tax hikes go into effect if lawmakers couldn’t cut a deal themselves. Obama asked Senate Majority Leader Harry Reid of Nevada to call “an up-or-down vote” on that plan, the president announced in a Dec. 28 appearance before cameras at the White House.

“If members of the House or the Senate want to vote ‘no,’ they can, but we should let everybody vote,” Obama said then.

Republicans hate such a negotiation tactic. Throughout Obama’s White House tenure, GOP aides have griped that the president and congressional Democrats have sought political gain while refusing to negotiate in good faith. On immigration, it’s the same.

The Obama plan includes a faster path to citizenship and nothing to trigger border-security enforcement. It would also clear an easier path for same-sex couples.

Before Obama rolled out his immigration plan in Nevada Tuesday, Sen. Marco Rubio of  Florida raised concerns that the president would launch a “bidding war.”

In a radio interview with Rush Limbaugh, Rubio dismissed the notion of an up-or-down vote: “It’s going to have to go through committees and people are going to have their input. There’s going to be public hearings.  I don’t want to be part of a process that comes up with some bill in secret and brings it to the floor and gives people a take it or leave it.

“I want this place to work the way it’s supposed to work, with every senator having input and the public having input,” Rubio said.

A Senate Republican aide jabbed, “The president’s been gone from the Senate a long time and perhaps he has forgotten that it’s a lot easier to pass legislation if he works with Congress.”

Obama has presented Republicans with a plan they will like much less than what’s been crafted by the bipartisan Senate group. The group plan includes triggers to enforce border-security measures, more unmanned drones and no provisions making it easier for same-sex couples seeking to immigrate or naturalize.

Unless other Republicans come up with a plan of their own, the president has given Republicans a choice between the left and the middle. It’s not hard to tell which they’d prefer.

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Infrared laptop trackpad ignores accidental touches

Hal Hodson, technology reporter

The success of the tablet means that some touch gestures have trickled down to the old-fashioned laptop user and their lowly trackpads. But with a surface the size of a beer mat, the trackpad's options are limited. Why not extend the pad across the whole bottom of the laptop, giving more room for gestures and making the touchpad more useful?

The obvious problem with this idea is that it would leave nowhere for your hands to rest as you type. I still brush my trackpad accidentally during particularly furious typing, even with it hidden between my wrists. Now a group of researchers from the Korea Advanced Institute of Science and Technology in Daejeon, South Korea, have redesigned the touchpad to work using infrared light reflectance, doing away with accidental touches almost entirely, and spreading the touchpad across the whole bottom half of the laptop in the process.

The infrared Longpad is built out of a thin array of infrared LEDs, distributed in a grid of light receptors. The receptors detect light that is reflected back to them by objects like fingers or styluses. Traditional touch-sensitive trackpads and screens rely on current that flows through skin into the device at the point of contact. This means they register mistaken touches from forearms, wrists and thumbs, unable to discriminate between different patches of skin.

Lead researcher Jiseong Gu and colleagues have got around this by profiling what the infrared reflectance of different parts of the forearm and wrist look like, in a similar way to Leap Motion's hand-tracking system or Microsoft Digits. It can distinguish fingertips from wrists or shirt cuffs, and only responds when being touched purposefully by fingers or thumbs. It can also figure out what angle the whole hand is at relative to the Longpad, ignoring touches that come from angles that indicate typing.

In trials with 11 people performing thousands of keyboard and touchpad actions, unwanted interactions accounted for just 0.42 per cent of all Longpad touches.

With the width of the whole laptop to play with, Longpad can be used to switch applications easily by mapping the position of open applications in the Windows taskbar to spots on the pad. Sliding a finger along the pad allows a user to skip through online video intuitively, too.

Gu and colleagues will present their work at the Conference on Human Factors in Computing Systems in Paris, France, at the end of April.

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New towns should take local characteristics into account: experts

SINGAPORE: Singapore will soon see a number of new towns in areas like Bidadari, Tengah and Tampines North.

Experts said the development of these places should also take local characteristics and history into account, as this will not only retain the town's history and uniqueness, it will help create a more varied environment in Singapore.

Punggol New Town has come a long way. Its transformation began in 1996, with the government's Punggol 21 vision to create a waterfront town.

Mdm Koh Geok Kee, a sales assistant, said: "When I first moved here, I had to wait... Wait for the shopping areas to be built, more buses and the beach area. At first it was very dirty, but now it's very clean, so I like it more and more."

Ong Jun Long, a student, said: "It's very quiet and it has all the facilities we need, especially with the new waterway that allows people to enjoy the natural side of life."

Observers said the development of Punggol could provide a glimpse into the future of Singapore as the government looks for new plots of land to build new towns. The Population White Paper released on Tuesday listed Bidadari, Tengah and Tampines North as possible sites, especially now that 700,000 housing units are expected to come on stream until 2030.

For these areas, experts said Punggol offers several lessons.

William Lau, president of the Singapore Institute of Planners, said: "Punggol 21 is experimental, a test bed for a higher density plot ratio and in a fairly remote part of Singapore to turn around, to make something attractive. So the canal, river, as well as the ease of connection into the city are added points that are already on the ground.

"HDB also has a different theme in Jurong East. Jurong East is on an 'eco' theme and is based on Jurong lake district because it's a wetland with a lot of lakes, to capitalise on them (and turn it) into an 'eco' new town.

"So we must look at the attributes of the various land available, and we must bring them in, embrace them and (make it) part of our design element. By doing so, not only do we have a slice of historical background that we can capitalise on to make them unique, but at the same time, there is a branding retention of the past and adds a uniqueness to the place."

But observers said the challenge of building new towns is in calibrating the balance between residential space and amenities.

Mr Lau added: "We do note that in many developing countries, new towns are not complete, a lot of apartments and residentials stand alone in the middle of nowhere. With the Singapore government, we plan to have a complete, integrated township -- where ideally, you're able to find employment, you're able to find a house over your head and the various array of activities that's necessary to complete your lifestyle.

"So from going to the bank, hawker centre, to the wet market, to the malls and to exercise, fields, education for children -- all these are brought under the neighbourhood as a complete stop. And therefore, the complete experience of quality living can be self-contained."

Associate Professor Paulin Straughan, a sociologist with the National University of Singapore, said: "To make these towns attractive for new families, infrastructure should be ready. So to have the rail system or bus services set up, to have service providers, amenities, restaurants, supermarkets to be there.

"And before the number of residents grows, as long as your transportation infrastructure is in place, people from outside the neighbourhood would be able to come by. And once you have all that in place, then once you set up the homes, I think there will be lots of takers."

The right mix will not only attract residents, it will also enable businesses to survive in the new neighbourhood, said experts.

-CNA/ac

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