Bank of England holds record-low rates despite recession threat

LONDON - The Bank of England voted on Thursday to freeze its key interest rate at a record low 0.50 per cent and maintain the level of its quantitative easing cash stimulus, despite the threat of a triple-dip recession in Britain.

The central bank said in an unexpectedly long statement that its Monetary Policy Committee (MPC) had voted to maintain its emergency QE stimulus at £375 billion ($589 billion, 434 billion euros).

The BoE added that overall economic activity in Britain had been "broadly flat" over the past year, despite worries that the economy could be heading for the third recession in five years.

The stimulus has been used to try and help boost economic output, which unexpectedly shrank by 0.3 per cent in the final quarter of 2012. However, the economy flatlined over the entire year with zero growth.

Across in Frankfurt, the European Central Bank also opted to maintain its main interest rate at a record-low level of 0.75 per cent, amid ongoing debt strains in the crisis-hit eurozone.

"Over the past year, there has been considerable volatility in quarterly output growth," the Bank of England said in Thursday's statement.

"Looking through the influence of temporary factors, overall output appears to have been broadly flat. In large part that reflects sharp falls in particular sectors of the economy that are unlikely to be repeated in 2013.

"In contrast, the combined output of the manufacturing and services sectors has grown modestly. Business surveys suggest the pace of expansion is likely to remain muted in the near term," the BoE added.

The central bank said 12-month inflation would rise further in the near-term and could remain above its 2.0-per cent target for the next two years. However, it was then forecast to return to "around" the target as price pressures fade.

Policymakers also mulled withdrawing QE stimulus, in order to pull inflation lower, but decided that it would risk endangering any recovery. QE can risk stoking inflation as it is tantamount to printing money.

"The Committee discussed the appropriate policy response to the combination of the weakness in the economy and the prospect of a further prolonged period of above-target inflation," it said, adding it was necessary to look beyond the period of above-target inflation.

"Attempting to bring inflation back to target sooner by removing the current policy stimulus more quickly than currently anticipated by financial markets would risk derailing the recovery and undershooting the inflation target in the medium term."

Thursday's decisions were in line with expectations and came as incoming BoE governor Mark Carney called for the bank to ready plans for a smooth eventual withdrawal of QE stimulus to avoid major disruption on markets.

Canadian central bank chief Carney -- who takes the helm from current BoE boss Mervyn King in July -- set out his views on QE before a group of cross-party lawmakers on parliament's Treasury Select Committee.

"The bank will need to design, implement and ultimately (manage an) exit from unconventional monetary policy measure in a manner that reinforces public confidence," Carney said in written testimony to the committee.

"The exit needs to be achieved without disrupting the gilts (bonds) market," he added ahead of the latest decision.

Quantitative easing (QE) involves a central bank creating cash to buy assets like government and corporate bonds, with the aim of boosting lending by retail banks and stimulating economic activity.

The BoE's main lending rate has stood at the record-low 0.50 per cent since March 2009, when it also embarked upon its radical stimulus policy.

- AFP/ck

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Iran says it has footage from downed U.S. drone

By Lateef Mungin, CNN

updated 8:16 AM EST, Thu February 7, 2013

STORY HIGHLIGHTS

• The footage was released by Iranian state media and placed on YouTube


• Iran claims it downed the plane in 2011


• Obama in the past asked for the drone back

(CNN) -- Iran says it has decoded and released footage from a U.S. drone that it downed more than a year ago.

The black and white aerial footage, Iran claims was from a RQ-170 spy plane, was aired by Iranian news agencies and placed on YouTube.

A man, identified in Iranian media as Islamic Revolutionary Guards Corps Brigadier General Amir Ali Hajizadeh, narrates parts of the footage.

Read more: Key U.S. official defends use of drones

"This aircraft has carried out many operations in the countries around Iran," the narrator says. "In the operations taken place in Pakistan, this aircraft guided many of the clashes ..."

The narrator also says that some of the footage shows the drone near Kandahar Airfield in southern Afghanistan.

CNN can not independently verify the authenticity of the video. Also CNN could not immediately reach Pentagon officials for comment.

Iran had said it downed the drone on December 4, 2011 near Kashmar in the country's northeast, some 225 kilometers (140 miles) from the border with Afghanistan.

Read more: A dangerous new world of drones

At the time, U.S. officials acknowledged that the drone was missing and President Barack Obama asked Iran to return it.

"We've asked for it back. We'll see how the Iranians respond," Obama said later that month.

At the time Iranian military officials vowed not to return the plane.

This claim from Tehran comes at the same time that the U.S. drone program is being heavily debated in Washington.

John Brennan, Obama's pick to head the CIA, has been one of the architects of the drone campaign against al Qaeda and its allies for the last four years.

Senators will get to grill on him Thursday at his confirmation hearing.

Also Thursday, the Senate Intelligence Committee will receive a classified drone policy document that seeks to justify the administration's policy of targeting Americans overseas via drone attacks, a topic that has stirred controversies recently.

CNN's Samson Desta, John Raedler, Yousuf Basil and Neda Farshbaf contributed to this report.

Part of complete coverage on

updated 10:26 AM EST, Wed February 6, 2013

Advocates say the exam includes unnecessarily invasive and irrelevant procedures -- like a so-called "two finger" test.

updated 7:09 PM EST, Tue February 5, 2013

Supplies of food, clothing and fuel are running short in Damascus and people are going hungry as the civil war drags on.

updated 1:01 PM EST, Wed February 6, 2013

Supporters of Richard III want a reconstruction of his head to bring a human aspect to a leader portrayed as a murderous villain.

updated 10:48 AM EST, Tue February 5, 2013

Robert Fowler spent 130 days held hostage by the same al Qaeda group that was behind the Algeria massacre. He shares his experience.

updated 12:07 AM EST, Wed February 6, 2013

As "We are the World" plays, a video shows what looks like a nuclear attack on the U.S. Jim Clancy reports on a bizarre video from North Korea.

The relationship is, once again, cold enough to make Obama's much-trumpeted "reset" in Russian-U.S. relations seem thoroughly off the rails.

Ten years on, what do you think the Iraq war has changed in you, and in your country? Send us your thoughts and experiences.

updated 7:15 AM EST, Tue February 5, 2013

Musician Daniela Mercury has sold more than 12 million albums worldwide over a career span of nearly 30 years.

Photojournalist Alison Wright travelled the world to capture its many faces in her latest book, "Face to Face: Portraits of the Human Spirit."

updated 7:06 PM EST, Tue February 5, 2013

Europol claims 380 soccer matches, including top level ones, were fixed - as the scandal widens, CNN's Dan Rivers looks at how it's done.

updated 7:37 AM EST, Wed February 6, 2013

That galaxy far, far away is apparently bigger than first thought. The "Star Wars" franchise will get two spinoff movies, Disney announced.

updated 4:32 AM EST, Wed February 6, 2013

It's an essential part of any trip, an activity we all take part in. Yet almost none of us are any good at it. Souvenir buying is too often an obligatory slog.

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Winter nor'easter sweeping into Northeast

A major snowstorm is passing through the Great Lakes Thursday morning, and by Friday night could make travel nearly impossible in parts of the Northeast.

CBS News weather consultant David Bernard says there is a potential for historic snows and blizzard conditions across the Northeast, with as much as 2 feet of snow in some areas.

The National Weather Service says this nor'easter-type storm system will bring strong winds and heavy snow to the region, with eastern New England experiencing the greatest effects. A blizzard watch was issued for Boston and surrounding areas, including Rhode Island, and has now been extended to the eastern end of Long Island and most of Connecticut.

A coastal flooding watch also is in effect for some shore communities in Massachusetts, Connecticut and Long Island.

Beginning late Thursday most of the Northeast will be under a winter storm watch. The snow will start Friday morning, with the heaviest amounts dumped going into Saturday as the storm moves past New England and upstate New York, the weather service said.

Bernard says the storm system - an area of low pressure over the Carolinas - is going to rapidly move to the Northeast during the day Friday; by Friday evening it may start as rain along the coast, but inland areas will get snow.

Late Friday night into Saturday morning, Bernard said, it should be all snow across the Northeast and New England. He said up to 2 feet of snow is not out of the question.

"This has the potential for being a dangerous storm, especially for Massachusetts into northeast Connecticut and up into Maine," said Louis Uccellini, director of the weather agency's National Centers for Environmental Prediction.

The storm would hit just after the 35th anniversary of the historic blizzard of 1978, which paralyzed the region with more than 2 feet of snow and hurricane force winds.

In New York City Friday's rain will turn to snow, with the potential of 6, maybe 12 inches of snow, Bernard said.

Assuming the snow clears out by the weekend with no major problems, ski areas in Massachusetts were excited by the prospect of the first major snowstorm they've seen since October 2011.

Tom Meyers, marketing director for Wachusett Mountain Ski Area in Princeton, Mass., said that at an annual conference of the National Ski Areas Association in Vermont this week, many participants were "buzzing" about the storm. He said the snow will arrive at an especially opportune time — a week before many schools in Massachusetts have February vacation.

"It is perfect timing because it will just remind everybody that it is winter, it's real, and get out and enjoy it," Meyers said.

"We'll be here with bells on," said Christopher Kitchin, inside operations manager at Nashoba Valley Ski Area in Westford, Mass. "People are getting excited. They want to get out in the snow and go snow-tubing, skiing and snowboarding."

At Mount Snow in Vermont, spokesman Dave Meeker said the true value of the storm will be driving traffic from southern New England northward.

"It's great when we get snow, but it's a tremendous help when down-country gets snow," he said. "When they have snow in their backyards, they're inspired."

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Ex-LA Cop Sought in Shootings of 3 Cops, 2 Slayings

Police in Southern California say they suspect that a fired cop is connected to the shootings -- one fatal -- of three police officers this morning, as well as the weekend slayings of an assistant women's college basketball coach and her fiancé in what cops believe are acts of revenge against the LAPD as suggested in the suspect's online manifesto.

Former police officer Christopher Jordan Dorner, 33, who's a U.S. Navy reservist, has been publically named as a suspect in the killings of Monica Quan, 28, and her 27-year-old fiancé, Keith Lawrence, Irvine police Chief David L. Maggard said at a news conference Wednesday night.

Dorner is still on the loose and is considered armed and dangerous, police say.

Police said three police officers were shot early this morning: one in Corona, Calif., and two in Riverside, Calif. The Riverside Police Department said one of its officers was killed, KABC-TV reported. The conditions of the two other officers were not immediately released. Police reportedly suspect a connection to Dorner.

Lawrence was found slumped behind the wheel of his white Kia in the parking lot of their upscale apartment complex Sunday and Quan was in the passenger seat.

"A particular interest at this point in the investigation is a multi-page manifesto in which the suspect has implicated himself in the slayings," Maggard said.

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Police said Dorner's manifesto included threats against members of the LAPD. Police say they are taking extra measures to ensure the safety of officers and their families.

The document, allegedly posted on an Internet message board this week, apparently blames Quan's father, retired LAPD Capt. Randy Quan, for his firing from the department.

"Your lack of ethics and conspiring to wrong a just individual are over," he allegedly wrote.

One passage from the manifesto reads, "I will bring unconventional and asymmetrical warfare to those in LAPD uniform whether on or off duty."

"I never had the opportunity to have a family of my own," Dorner wrote. "I'm terminating yours."

Dorner was with the department from 2005 until 2008, when he was fired for making false statements.

Randy Quan, who became a lawyer in retirement, represented Dorner in front of the Board of Rights, a tribunal that ruled against Dorner at the time of his dismissal, LAPD Capt. William Hayes told The Associated Press Wednesday night.

According to documents from a court of appeals hearing in October 2011, Dorner was fired from the LAPD after he made a complaint against his field-training officer, Sgt. Teresa Evans, saying in the course of an arrest she had kicked a suspect who was a schizophrenic with severe dementia.

After an investigation, Dorner was fired for making false statements.

"We have strong cause to believe Dorner is armed and dangerous," Maggard said.

Police say Dorner is 6-feet tall, and weighs 270 pounds. He has black hair and brown eyes.

Meanwhile, Cal State-Fullerton is still mourning the loss of their beloved assistant coach.

"There are really no words to convey the sadness that our program feels, that the young women who have had the privilege of working with such a bright and passionate woman," head coach Marcia Foster said earlier this week. "I want to especially send out condolences to Randal and Sylvia Quan, and her brother Ryan."

After college, Quan coached at Lutheran University in Thousand Oaks and has spent the past two years as an assistant coach at Cal State-Fullerton. The university has posted a memorial page on its sports website dedicated to Quan.

Lawrence was a business graduate who recently started working as a public-safety officer at USC.

The Associated Press contributed to this report.

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Lifelogging captures a real picture of your health

Claire O'Connell, contributor

What difference does it make to your lifestyle if you've got a camera hanging around your neck that is recording every move? A clutch of papers in a special issue of the American Journal of Preventive Medicine aims to answer that question by looking at how so-called lifelogging can influence behaviour.

Much of the research involves Microsoft's SenseCam, which is worn on a lanyard around the neck so it can automatically take hundreds of first-person-view images each day.

One study asked 40 people to wear a SenseCam and an accelerometer to compare how the devices tracked their movements each minute. Perhaps unsurprisingly, the camera gave richer information about context, and it picked up on subtleties such as standing rather than sitting - accelerometers tended to classify both as sedentary behaviour.

Meanwhile, active volunteers - trainee jockeys, Gaelic football and university students - wore SenseCams and kept food diaries for one day. The camera picked up http://www.ajpmonline.org/webfiles/images/journals/amepre/AMEPRE_3672-stamped.pdfon factors such as portion size, forgotten foods, leftovers and brand names, and the pictorial evidence often revealed a higher estimated calorie intake than the wearers themselves reported. This suggests that combining a conventional food diary and a SenseCam could offer a more accurate picture of total energy intake for people who are closely monitoring their diets, such as athletes.

And if a SenseCam is out of reach, a smartphone slung onto a lanyard might do the trick instead. One of the studies asked 47 volunteers to wear a smartphone equipped with lifelogging software that collected data from built-in functions including the accelerometer, compass, camera and GPS. There were some issues with battery life - plus using the phone to track your behaviour means you can't easily use it as a phone. But the authors note that platforms such as smartphones could make camera-wearing more feasible in a wider range of populations.

Wearable cameras have "exciting potential" in health studies, but there are still hurdles to clear before the equipment becomes more widely adopted, says Aiden Doherty from the Centre for Sensor Web Technologies at Dublin City University in Ireland.

Not least is how to process the vast amount of image data produced. "We are working on the challenge of automatically identifying lifestyle behaviour from wearable camera data," he says.

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Silver tsunami & dwindling workforce can destabilise economies: Lee Yi Shyan

SINGAPORE: Senior Minister of State for National Development and Trade & Industry Lee Yi-Shyan has painted a sobering picture of an ageing population and shrinking workforce.

Speaking in Parliament on the Population White Paper and Land Use Plan on Wednesday, Mr Lee pointed to the experience of Asian neighbours like Japan and Taiwan as examples of how the silver tsunami and dwindling workforce can destabilise economies.

For example, a city outside Nagoya called Gifu has seen shops along the main street closed for good.

In Hokkaido, in a small town called Yubari, half of the population is above 65 years old.

Mr Lee said Yubari's small working population means a measly tax base.

Four years ago, the city government went bust after owing a debt of US$315 million. The city was later forced to embark on an 18-year austerity drive.

Mr Lee said: "It retrenched half of its civil servants. Public service in the City was badly affected. The public library was gone. Six primary schools merged into one. The General Hospital closed down two thirds of its facilities to save utilities. It also halved its number of ambulances and asked its elderly patients to walk to the hospital by themselves."

The effect of two decades of economic stagnation in Japan, said Mr Lee has led to what is described as "the Waniguchi (crocodile's mouth) effect" - Soaring public expenditure coupled with a drop in tax revenue.

Mr Lee said the huge silver tsunami is destabilising Japan.

He said the country did not manage to raise its working population because it could not build a consensus to allow immigration to boost the workforce.

Similarly in Taiwan, Mr Lee pointed to an article which described the economy as "a small tax revenue country but large welfare state."

Mr Lee said Singapore is not operating in silos.

The world, he said, will continue to move forward, regardless of Singapore's demographic and internal problems.

It is against this larger picture, he said, that Singapore has to define its path forward.

Mr Lee said: "It makes sense for the nation to maintain a sustainable and stable Singaporean population while we are still young, and while external conditions are favourable."

Mr Lee noted there are lessons to be learnt from the experiences of other countries.

The number of elderly citizens in Singapore aged 65 and above will increase considerably from around 340,000 in 2011 to 900,000 by 2030.

Mr Lee cited China's rapidly ageing population to highlight issues which Singapore may face in the future.

He said: "China is beginning to see the "4-2-1" phenomenon: one child having to look after two parents and four grandparents. This inverted pyramid means a heavy burden for the children. When both parents and grandparents are retired, there is also the "aged caring for the aged" phenomenon and this is becoming common in our communities."

Echoing the sentiment, former Cabinet Minister Mah Bow Tan said Singapore cannot afford to lose its edge and become less competitive.

He urged Singaporeans to keep their hearts and minds open.

Mr Mah said: "We have spent a lot of our time looking inwards, talking about our discomforts, our space. We have not asked ourselves how we are going to compete with outside world. How we are going to earn a living to live the good life. It is almost taken from granted that the good life will continue even if growth slows. We expect new infrastructure to be rolled out, even as growth slows. We want more subsidies for health care and housing and let's have less foreign workers and a slower pace of life. Where will the revenue from all this come from?"

Mr Mah, who is MP for Tampines GRC, said government revenue comes mostly from income taxes, consumption taxes and asset taxes, all of which are dependent on economic growth.

He added Singapore needs a bigger population with better educated and trained citizens as well as talented non-residents to supplement the home-grown talent.

- CNA/fa

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France: 'Hundreds' of Islamists killed

From Antonia Mortensen, CNN

updated 8:22 AM EST, Wed February 6, 2013

STORY HIGHLIGHTS

• France launched an offensive last month against militants in its former colony


• It says it has 4,000 French soldiers in Mali


• French troops are fighting alongside nearly 3,800 African soldiers

Read a version of this story in Arabic.

(CNN) -- A monthlong French offensive has killed "hundreds" of Islamist fighters in Mali, the French defense minister said, as his troops prepare to start withdrawing next month.

French Defense Minister Jean-Yves Le Drian gave the number of casualties to CNN affiliate BFM on Tuesday night. He did not offer additional details.

Read more: French leader makes jubilant trip to Mali

Hours earlier, France told the local Metro newspaper that it expects to begin withdrawing its troops out of Mali in March and leave African forces in control.

French Foreign Minister Laurent Fabius said despite the withdrawal, troops will continue operations to flush out militants in "some terrorist havens" in northern Mali.

Mali military battles Islamist insurgents

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At Mali's request, France launched the offensive against militants in its former colony last month. The ground-and-air campaign has sent Islamist fighters who had seized the northern region fleeing into the vast desert.

French President Francois Hollande visited Timbuktu last week, just days after French forces had freed the fabled city from Islamist militants.

Read more: Six reasons events in Mali matter

French-led troops now control Timbuktu and the city of Gao, along with a swath in between the two that was an Islamist stronghold for almost a year.

Troops are working to secure Kindal, the last major city under the grip of militants.

Over the past two days, sandstorms have hampered operations across the country.

Islamic extremists carved out a large portion of the north last year after a chaotic military coup.

They banned music, smoking, drinking and watching sports on television, and destroyed historic tombs and shrines in the region. World leaders feared that the al Qaeda-linked militants would turn the area into a terrorist haven.

France says it has 4,000 soldiers in Mali. Its troops are fighting alongside nearly 3,800 African soldiers, it said, a number expected to go up.

CNN's Pierre Meilhan contributed to this report.

Part of complete coverage on

Conflict in Mali

updated 10:38 AM EST, Wed January 16, 2013

The world is responding to an uprising of Islamist militants, hoping to inject stability in a country once hailed as a model for democracy in Africa.

updated 5:51 PM EST, Thu January 24, 2013

Nima Elbagir talks with victims of war and displaced people from Gao now living in Mali's capital.

updated 6:20 AM EST, Thu January 17, 2013

After intense airstrikes against rebel strongholds, French ground forces are moving north to try to dislodge the fighters.

updated 11:13 PM EST, Mon January 28, 2013

Residents of Gao, Mali, celebrate their town's liberation from rebel rule.

updated 10:40 AM EST, Mon January 28, 2013

The offensive against Islamist militants gained further ground as French and Malian forces reportedly took control of the airport in ancient Timbuktu.

updated 1:27 PM EST, Tue January 15, 2013

France intervenes according to doctrine and the pragmatic parameters of circumstance, says the president of the Institut des Ameriques.

updated 6:07 PM EST, Mon January 14, 2013

CNN's Nima Elbagir reports on the conflict in Mali, how the country got to this point and what the international reaction means.

updated 5:36 AM EDT, Fri July 27, 2012

Islamic radicals linked to al Qaeda have seized northern Mali, and there are widespread concerns that the region could soon become a terrorist haven.

updated 10:25 PM EST, Fri January 25, 2013

Erin Burnett discusses al Qaeda involvement in the Algeria attack and how the U.S. will deal them in northern Africa.

updated 8:10 AM EST, Mon January 28, 2013

The United States is intensifying its involvement in Mali, where local and French forces are battling Islamic militants.

updated 7:33 PM EST, Mon January 14, 2013

CNN's Erin Burnett reports on the situation in northern Mali and its consequences for U.S. homeland security. Watch to find out more.

updated 5:08 PM EST, Sat January 12, 2013

French troops face fierce combat against Islamist militants in Mali and in Somalia during a failed rescue attempt.

updated 5:58 PM EST, Tue February 5, 2013

As Mali military braces against Islamist insurgents and French military strikes targeted Islamist rebels, both sides are determined to win.

updated 6:13 AM EDT, Wed July 4, 2012

The Old Mostar Bridge, the Buddhas of Bamiyan, and now the Timbuktu. Once again, culture is under attack, UNESCO's Irina Bokova writes.

updated 2:03 PM EST, Sun November 11, 2012

African leaders hold an emergency summit to discuss plans to rid Mali of Islamic extremists accused of atrocities.

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USPS to announce Saturday service cuts in effort to slash costs

(CBS News) Get ready for some big changes in your mail service. After losing $16 billion last year, the postmaster general will make announce Wednesday that the Postal Service intends to halt Saturday delivery of first-class mail by this summer, Aug. 1, CBS News has learned. That means most mailers, letters and catalogs would not arrive on Saturdays, ending a 150-year tradition.

The plan to shrink delivery from six days a week to five would only affect first-class mail, while packages, mail-order medicines, priority and express mail would still get delivered on Saturdays.

.

Sen. Tom Coburn, R-Okla., says the move will save the struggling postal service $2 billion a year. "It's a proper business decision and (in the) long run, good for the Postal Service and good for Americans."

The Postal Service has lost $41 billion dollars over the past six years as more and more Americans turned to private shippers, email, and online banking.

To save money, the Postal Service slashed hours of service at about half the nation's 26,000 post offices and trimmed its workforce by 35 percent.

But it wasn't enough. David Walker, a former government watchdog, is part of a panel looking at possible postal reforms. Walker told CBS News the new measure "won't come close to solving the postal service's problem. It's got to look at more fundamental changes in its infrastructure, its compensation costs, its retirement obligations, and also what it does and who does its business."

But there's just so much the Postal Service can do without congressional approval. Despite years of begging by postmasters general, Congress never passed a reform bill that would have given the Postal Service more flexibility to modernize and streamline its service.

Asked whether the Postal Service is making this announcement because they're trying to force Congress to act, Coburn said, "No, I don't think so at all. Look, they're in survival mode. You're not going to have any post office. I mean, here's the alternative: They're losing $25 million dollars a day. A day. They have to do something."

Technically, the Postal Service is not allowed to its reduce service unless Congress changes the law, but lawyers for the Postal Service think that they have figured out a way around this. Even President Barack Obama has endorsed the plan to cut Saturday service. It was part of his deficit reduction plan last year.

For Nancy Cordes' full report, watch the video above.

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Hostage Taker Waged Firefight With SWAT agents

Jimmy Lee Dykes, the man who held a 5-year-old boy hostage for nearly a week in an underground bunker in Alabama, had two homemade explosive devices on his property and engaged in a firefight with SWAT agents before they stormed the bunker and killed him, according to the FBI.

One explosive device was found inside the bunker and another was located in the PVC pipe negotiators used to communicate with Dykes, the FBI said Tuesday night. Both devices were "disrupted," according to the FBI.
The search for hazards is expected to continue through today.

Preliminary investigation reports indicate that Dykes engaged in a firefight with the SWAT agents who made entry, according to the FBI.

Officials were able to insert a high-tech camera into the 6-by-8-foot bunker to monitor Dykes' movements, and they became increasingly concerned that he might act out, a law enforcement source with direct knowledge of the case told ABC News Monday.

FBI special agents were positioned near the entrance of the bunker and negotiators were able to convince Dykes to approach the bunker door. FBI agents used two explosions to gain entry into the bunker. It also appears that Dykes reinforced the bunker against any attempted entry by law enforcement, according to the FBI.

ABC News has learned that Dykes first opened fired on the agents during the bunker raid. Moments later, the agents returned fire, killing Dykes.

The shooting review team continues to gather facts regarding the incident, the FBI said.

Ala. Hostage Standoff Over: Kidnapper Dead, Child Safe Watch Video

The boy, only identified as Ethan, was rescued from the scene by a waiting ambulance. The bunker raid came six days after Dykes boarded a school bus, fatally shot the driver and abducted the boy, who suffered no physical injuries.

Click here for a look at what's next for Ethan.

"It's all about timing that is why you practice. You practice blowing the door in split seconds, flash bang, shoot before Mr. Dykes would even have an opportunity to react," Brad Garrett, former FBI agent and ABC News consultant, said.

Meanwhile, Ethan is set to celebrate his 6th birthday today, happily reunited with his family.

Ethan's thrilled relatives told "Good Morning America" Tuesday that he seemed "normal as a child could be" after what he went through and has been happily playing with his toy dinosaur.

"He's happy to be home," Ethan's great uncle Berlin Enfinger told "GMA." "He's very excited and he looks good."

"For the first time in almost a week, I woke up this morning to the most beautiful sight...my sweet boy. I can't describe how incredible it is to hold him again," Ethan's' mother wrote in a statement released by the FBI Tuesday.

Ethan is "running around the hospital room, putting sticky notes on everyone that was in there, eating a turkey sandwich and watching SpongeBob," Dale County Schools Superintendent Donny Bynum said at a news conference Tuesday.

When asked about a birthday party for Ethan, Bynum said, "We are still in the planning stages. Our time frame is that we are waiting for Ethan, waiting on that process, but we are going to have it at a school facility, most likely the football stadium at Dale County High School."

He said many "tears of celebration" were shed Monday night when Ethan was reunited with his family.

"If I could, I would do cartwheels all the way down the road," Ethan's aunt Debra Cook told "GMA." "I was ecstatic. Everything just seemed like it was so much clearer. You know, we had all been walking around in a fog and everyone was just excited. There's no words to put how we felt and how relieved we were."

Cook said that Ethan has not yet told them anything about what happened in the bunker and they know very little about Dykes.

What the family does know is that they are overjoyed to have their "little buddy" back.

"He's a special child, 90 miles per hour all the time," Cook said. "[He's] a very, very loving child. When he walks in the room, he just lights it up."

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Nobel-winning US energy secretary steps down

Four years after his appointment as part of President Barack Obama's scientific dream team, US energy secretary Steven Chu is about to step down. How well did he perform in office, and who should fill his shoes? With budget cuts and continued attacks by climate sceptics likely to dog Obama's second term, a politician might be a better choice than another scientist, some observers say.

As the first Nobel laureate appointed to a presidential cabinet, Chu ensured that science informed decisions about clean energy and the funding of new research programmes. He was "good at knowing science is about taking risks", says Marchant Wentworth of the Union of Concerned Scientists in Cambridge, Massachusetts, which aims to bring science to bear on solving the planet's problems.

In 2009, Chu and the Department of Energy (DoE) inherited a number clean-energy research and development initiatives that had been part of the previous administration's stimulus programmes. Among the most interesting programmes that Chu jumpstarted was ARPA-E, a $400 million fund for high-risk, experimental renewable energy research.

A politician might not have seen promise in the nascent programme, and ARPA-E has yet to deliver any game-changing technologies, but Wentworth hopes that Chu's successor will expand the programme. "It's the seed corn of our energy future," he says.

One debacle will cast a shadow over Chu's legacy: the bankruptcy of solar giant Solyndra, a company that had received $535 million in federal loan guarantees from DoE. The backlash, fuelled by a Republican-controlled Congress, quickly spiralled out of control and raised distrust in renewable energy schemes.

Could a more experienced politician have handled the situation better? Eileen Claussen of the Center for Climate and Energy Solutions, a non-profit based in Arlington, Virginia, doubts it. "Getting someone who really believes in the importance of doing this was more important than the political skills," she says, although she also says Chu could have done more to highlight the many successful companies that profited from DoE loans totalling $36 billion.

Different world

But in Obama's second term, vision won't necessarily be as important as management and communication skills, says Claussen. "It's going to be a different world," she says, not least because of serious budget constraints.

DoE's clean-energy budget is likely to be cut by 8 to 10 per cent this year, Wentworth says: a major hit for an already shrunken program. If the next secretary hopes to help Obama with his promises to address climate change, he adds, he or she cannot expect more money to do it with.

And with the animosity against clean-energy programmes unlikely to disappear, says Wentworth, the biggest challenges for Chu's successor will be to aggressively attack myths about the high cost of renewable energy, and to counter lobbying from the fossil-fuel industry.

Energy analyst Scott Sklar, president of the Stella Group, feels that Chu was weak in this area.

For the next secretary to build support for renewable energy programmes, "they need to articulate why what they're doing is important", he says. The next secretary will also need to tackle problems associated with energy generation, such as massive water use by power plants in the midst of a drought, and the air and water pollution they cause.

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