Firm bringing HQ to Chicago

St. Louis-based construction firm Clayco Inc. is moving its headquarters to Chicago, attracted by ease of air travel, proximity to clients, access to young professionals and the potential to land city business as Mayor Rahm Emanuel pushes ahead with public-private partnerships for infrastructure improvements, its top executive said Thursday.

Clayco Chairman and CEO Robert Clark and Emanuel are expected to formally announce the move Friday.

Two-hundred and eighty of the company's 1,000 employees already work in the Chicago area, including 88 who work full time at the Jewelers Building, 35 E. Wacker Drive, which becomes company headquarters.

The company expects to double its Chicago workforce during the next couple of years, in part by increasing its architectural business and expanding its infrastructure business.

Clark said the company is seeking to acquire a municipal engineering company as part of an effort to develop its infrastructure business during the next few years. Now focused on industrial, office and institutional projects, the company would like to add a fourth specialty area that would go after water, sewer, road, bridge and airport work, Clark said.

"In the long run, public-private partnerships are something I'm very intrigued about and interested in pursuing," he said. "I don't think we'll do it overnight. … It may be three years from now, until we have significant traction in the (infrastructure) market."

"We're interested in national projects, not just local," he said. "But hopefully we'll have work in our own backyard."

Clayco donated $50,000 to Emanuel's mayoral campaign in late 2010, and Clark donated an additional $10,000 in September to The Chicago Committee, the mayor's campaign fund, according to the Illinois State Board of Elections. Clark said his contributions to a variety of politicians stem from personal convictions and have no relation to his business endeavors.

Tom Alexander, a spokesman for Emanuel, said: "Clayco is choosing Chicago because Chicago offers them unique access to world-class talent and a location from which they can easily and effectively do business around the world, period. Any type of private-public building project would undergo the city's very strict, competitive procurement process."

Last spring, Emanuel won City Council approval for the formation of the Chicago Infrastructure Trust, which will endeavor to secure private financing for public infrastructure projects.

Clayco's shift into downtown Chicago began in October 2010, when it opened offices in the Jewelers Building. Employees who had been based in Oakbrook Terrace have moved there, as have a handful of executives from St. Louis. Clark relocated to Chicago in September 2010.

The company did not seek or receive any financial incentives for its move, the city said. Clayco will keep its St. Louis office intact, and no layoffs are planned as part of the relocation.

Clark and Emanuel first met when Emanuel worked in the Clinton White House. Clark, who was active with the Young Presidents' Organization, worked with Emanuel on some events at the White House. Their paths have crossed a number of times since then, including during President Barack Obama's campaign in 2008.

A meeting with Emanuel played a role in the decision to relocate company headquarters, Clark said. It occupies the 13th and 27th floors of the Jewelers Building, or 30,000 square feet.

"He asked me to target our national clients and bring them here," Clark recalls. "Quite frankly, I was blown away by that. Most mayors are not that aggressive; they leave that up to their economic development folks."

Clayco has done work for a number of large institutions and corporations, including Dow Chemical, Amazon.com, Caterpillar, and locally, Kraft Foods, Anixter, the University of Illinois, the University of Chicago and Blue Cross Blue Shield.

Started 28 years ago by Clark, the privately held company has annual revenue of $820 million. Subsidiaries include architecture and design firm Forum Studios and Concrete Strategies Inc.

kbergen@tribune.com

Twitter @kathy_bergen

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Eleven dead in Damascus gas station blast

AZAZ, Syria (Reuters) - At least 11 people were killed and 40 wounded when a car bomb exploded at a crowded petrol station in the Syrian capital Damascus on Thursday, opposition activists said.

The station was packed with people queuing for fuel that has become increasingly scarce during the country's 21-month-long insurgency aimed at overthrowing President Bashar al-Assad.

The semi-official al-Ikhbariya television station showed footage of 10 burnt bodies and Red Crescent workers searching for victims at the site.

The opposition Revolution Leadership Council in Damascus said the explosion was caused by a booby-trapped car.

There was no immediate indication of who was responsible for the bombing in the Barzeh al-Balad district, whose residents include members of the Sunni Muslim majority and other religious and ethnic minorities.

"The station is usually packed even when it has no fuel," said an opposition activist who did not want to be named. "There are lots of people who sleep there overnight, waiting for early morning fuel consignments."

It was the second time that a petrol station has been hit in Damascus this week. Dozens of people were incinerated in an air strike as they waited for fuel on Wednesday, according to opposition sources.

In northern Syria, rebels were battling to seize an air base in their campaign against the air power that Assad has used to bomb rebel-held towns.

More than 60,000 people have been killed in the uprising and civil war, the United Nations said this week, a much higher death toll than previously thought.

DRAMATIC ADVANCES

After dramatic advances over the second half of 2012, the rebels now hold wide swathes of territory in the north and east, but they cannot protect towns and villages from Assad's helicopters and jets.

Hundreds of rebel fighters were attempting to storm the Taftanaz air base, near the highway that links Syria's two main cities, Aleppo and Damascus.

A rebel fighter speaking from near the Taftanaz base overnight said much of the base was still in loyalist hands but insurgents had managed to destroy a helicopter and a fighter jet on the ground.

The northern rebel Idlib Coordination Committee said the rebels had detonated a car bomb inside the base.

The government's SANA news agency said the base had not fallen and that the military had "strongly confronted an attempt by the terrorists to attack the airport from several axes, inflicting heavy losses among them and destroying their weapons and munitions".

Rami Abdulrahman, head of the opposition-aligned Syrian Observatory for Human Rights which monitors the conflict from Britain, said as many as 800 fighters were involved in the assault, including Islamists from Jabhat al-Nusra, a powerful group that Washington considers terrorists.

Taftanaz is mainly a helicopter base, used for missions to resupply army positions cut off by the rebels, as well as for dropping crude "barrel bombs" on rebel-controlled areas.

Near Minakh, another northern air base that rebels have surrounded, government forces have retaliated by shelling and bombing nearby towns.

NIGHTLY BOMBARDMENTS

In the town of Azaz, where the bombardment has become a near nightly occurrence, shells hit a family house overnight. Zeinab Hammadi said her two wounded daughters, aged 10 and 12, had been rushed across the border to Turkey, one with her brain exposed.

"We were sleeping and it just landed on us in the blink of an eye," she said, weeping as she surveyed the damage.

Family members tried to salvage possessions from the wreckage, men lifting out furniture and children carrying out their belongings in tubs.

"He (Assad) wants revenge against the people," said Abu Hassan, 33, working at a garage near the destroyed house. "What is the fault of the children? Are they the ones fighting?"

Opposition activists said warplanes struck a residential building in another rebel-held northern town, Hayyan, killing at least eight civilians.

Video footage showed men carrying dismembered bodies of children and dozens of people searching for victims in the rubble. The provenance of the video could not be independently confirmed.

In addition to their tenuous grip on the north, the rebels also hold a crescent of suburbs on the edge of Damascus, which have come under bombardment by government forces that control the center of the capital.

On Wednesday, according to opposition activists, dozens of people died in an inferno caused by an air strike on a petrol station in a Damascus suburb where residents were lining up for fuel.

The civil war in Syria has become the longest and bloodiest of the conflicts that rose out of uprisings across the Arab world in the past two years.

Assad's family has ruled for 42 years since his father seized power in a coup. The war pits rebels, mainly from the Sunni Muslim majority, against a government supported by members of Assad's Shi'ite-derived Alawite minority sect and some members of other minorities who fear revenge if he falls.

The West, most Sunni-ruled Arab states and Turkey have called for Assad to step down. He is supported by Russia and Shi'ite Iran.

(Additional reporting by Khaled Yacoub Oweis in Amman and Dominic Evans in Beirut; Writing by Peter Graff; Editing by Ruth Pitchford and Giles Elgood)

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Asia stocks eke out gains on China hopes, oil eases

HONG KONG (Reuters) - Most Asian stock markets edged higher on Thursday on hopes of a steady economic revival in China, although oil gave back part of the previous session's strong gains as investors took some money off the table and braced for more U.S. budget battles.

The MSCI Asia Pacific ex-Japan index of stocks <.miapj0000pus> rose 0.2 percent following Wednesday's 2 percent jump on relief that U.S. politicians had averted the "fiscal cliff".

Data from China showing the services sector expanded in December continued to underpin expectations of an economic recovery that has helped spur a strong rally in Hong Kong-listed Chinese shares <.hsce> over the past month.

The China Enterprises index <.hsce> which rallied more than 4 percent in the previous session eased 0.2 percent. Onshore Chinese markets will resume trading on Friday.

"China looks like it's improving at the margin and the market has momentum that could last for at least a few months," said Christian Keilland, head of trading at BTIG in Hong Kong.

"Investors seem to have accepted that reforms are underway but they're going to happen at a slower pace."

Australian stocks <.axjo> rose 0.7 percent to their highest in more than 19 months, with mining giants Rio Tinto up 2.4 percent and BHP Billiton up 0.8 percent, among the top gainers on the benchmark S&P ASX/200 index. <.axjo/>

South Korea's Kospi <.ks11> underperformed the region, falling 0.4 percent as automakers and other exporters slumped on a stronger Korean won, which hit a 16-month high against the dollar overnight.

In other currency markets, the Japanese yen bounced after hitting a 29-month low versus the dollar earlier in the day but analysts warned that any strength is likely to be short-lived.

"Technically dollar/yen looks somewhat overbought here. It's gone a long way in a very short time," said Callum Henderson, global head of FX research for Standard Chartered Bank in Singapore, adding that the dollar could see some consolidation in the near term before heading higher.

The euro which in overnight trading was close to a 8-1/2 month high against the dollar, slipped 0.1 percent.

The U.S. dollar rose 0.2 percent <.dxy> against a basket of major currencies.

President Barack Obama and congressional Republicans face even bigger budget battles in the next two months after a hard-fought deal averted the fiscal cliff of automatic tightening that threatened to push the U.S. into recession.

Strength in the dollar and profit-taking pushed oil prices lower with Brent crude slipping 0.3 percent and U.S. crude futures down 19 cents to $92.93.

"After the initial excitement, reality sets in," said Victor Shum, oil consultant at IHS Purvin & Gertz. "There will be other negotiations and the deal is a compromise."

(Reporting by Vikram Subhedar; Editing by Kim Coghill and Eric Meijer)

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Louisville upsets Florida 33-23 in Sugar Bowl

NEW ORLEANS (AP) — Terell Floyd and the Louisville Cardinals gave the embattled Big East Conference at least one more triumphant night in a major bowl — and at the expense of a top team from the mighty SEC.

Floyd returned an interception 38 yards for a touchdown on the first play, dual-threat quarterback Teddy Bridgewater directed a handful of scoring drives and No. 22 Louisville stunned the fourth-ranked Gators 33-23 in the Sugar Bowl on Wednesday night.

"I can't speak for the whole Big East, but I can speak for Louisville and I think this means a lot for us," Floyd said. "We showed the world we can play with the best."

The Big East is in a transitional phase and losing some of its top football programs in the process. Boise State has recently backed out of its Big East commitment and Louisville has plans to join the ACC.

Even this year, the Big East wasn't getting much respect. Louisville, the league champion, was a two-touchdown underdog in the Sugar Bowl.

But by the end, the chant, "Charlie, Charlie!" echoed from sections of the Superdome occupied by red-clad Cardinals fans. It was their way of serenading third-year Louisville coach Charlie Strong, the former defensive coordinator for the Gators, who has elevated Cardinals football to new heights and recently turned down a chance to leave for the top job at Tennessee.

"I look at this performance tonight, and I sometimes wonder, 'Why didn't we do this the whole season,'" Strong said. "We said this at the beginning: We just take care of our job and do what we're supposed to do, don't worry about who we're playing."

Shaking off an early hit that flattened him and knocked off his helmet, Bridgewater was 20 of 32 passing for 266 yards and two touchdowns. Among his throws was a pinpoint, 15-yard timing toss that DeVante Parker grabbed as he touched one foot down in the corner of the end zone.

"I looked at what did and didn't work for quarterbacks during the regular season," said Bridgewater, picked as the game's top player. "They faced guys forcing throws ... and coach tells me, 'No capes on your back or 'S' on your chest, take what the defense give you.' That's what I took. Film study was vital."

His other scoring strike went to Damian Copeland from 19 yards one play after a surprise onside kick by the Gators backfired. Jeremy Wright had a short touchdown run that gave Louisville (11-2) a 14-0 lead the Gators couldn't overcome.

Florida (11-2) never trailed by more than 10 points this season. The defeat dropped SEC teams to 3-3 this bowl season, with Alabama, Texas A&M and Mississippi still to play.

"We got outcoached and outplayed," Florida coach Will Muschamp said. "That's what I told the football team. That's the bottom line."

Gators quarterback Jeff Driskel, who had thrown only three interceptions all season, turned the ball over three times on two interceptions — both tipped passes — and a fumble. He finished 16 of 29 for 175 yards.

Down 33-10 midway through the fourth period, Florida tried to rally. Andre Debose scored on a 100-yard kickoff return and Driskel threw a TD pass to tight end Kent Taylor with 2:13 left. But when Louisville defenders piled on Driskel to thwart the 2-point try, the game was essentially over.

Florida didn't score until Caleb Sturgis's 33-yard field goal early in the second quarter.

The Gators finally got in the end zone with a trick play in the closing seconds of the half. They changed personnel as if to kick a field goal on fourth-and-goal from the 1, but lined up in a bizarre combination of swinging-gate and shotgun formations and handed off to Matt Jones.

The Gators tried to keep the momentum with a surprise onside kick to open the third quarter, but not only did Louisville recover, Florida's Chris Johnson was called for a personal foul and ejected for jabbing at Louisville's Zed Evans. That gave Louisville the ball on the Florida 19, from where Bridgewater needed one play to find Copeland for his score.

"We game-planned it and felt good about it," Muschamp said of the onside kick attempt. "We wanted to steal a possession at the start of the second half."

On the following kickoff, Evans cut down kick returner Loucheiz Purifoy with a vicious low, high-speed hit that shook Purifoy up. Soon after, Driskel was sacked hard from behind and stripped by safety Calvin Pryor, ending another Florida drive with a turnover.

"We had the right attitude, had the right mindset that we would go out and beat this team," Pryor said.

After Louisville native Muhammad Ali was on the field for the coin toss, the Cardinals quickly stung the Gators. Floyd, one of nearly three dozen Louisville players from Florida, made the play.

Driskel was looking for seldom-targeted Debose, who'd had only two catches all season.

"I threw it behind him, (he) tried to make a play on it, tipped it right to the guy," Driskel said. "Unfortunate to start the game like that."

When Louisville's offense got the ball later in the quarter, the Florida defense, ranked among the best in the nation this season, sought to intimidate the Cardinals with one heavy hit after another.

One blow by Jon Bostic knocked Bridgewater's helmet off moments after he'd floated an incomplete pass down the right sideline. Bostic was called for a personal foul, however, which seemed to get the Cardinals opening drive rolling. Later, Wright lost his helmet during a 3-yard gain and took another heavy hit before he went down.

Louisville kept coming.

B.J. Butler turned a short catch into a 23-yard gain down to the Florida 1. Then Wright punched it in to give the Cardinals an early two-TD lead over a team that finished third in the BCS standings, one spot too low to play for a national title in Miami.

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Neil Armstrong’s ‘One Small Step’: Controversy Erupts Over Moonwalk Quote

The famous first words uttered by the first person on the moon, Neil Armstrong, may not have been as spontaneous as commonly thought, according to Armstrong’s brother.

Armstrong, after becoming the first human to set foot on Earth’s nearest neighbor in July 1969 during NASA‘s historic Apollo 11 mission, said, “That’s one small step for [a] man, one giant leap for mankind.” (Although the “a” isn’t audible in his transmission, the moonwalker insisted that the official quote included the extra word.)

In numerous interviews, and even in his own autobiography, Armstrong said he thought of the words after arriving at the moon, while waiting to exit his lunar module Eagle. But in a new BBC documentary, the astronaut’s brother Dean Armstrong says the two discussed the statement months earlier, when Neil passed Dean a handwritten note during a late-night game of Risk, according to British newspaper the Telegraph.

“On that piece of paper there was ‘That’s one small step for man, one giant leap for mankind.’ He says ‘what do you think about that?’ I said ‘fabulous.’ He said ‘I thought you might like that, but I wanted you to read it,’” Dean Armstrong said, according to the Telegraph.

Neil Armstrong, who died Aug. 25 at the age of 82, had never mentioned the conversation publicly. If that scene took place just as Dean Armstrong says, it would contradict numerous statements by the first moonwalker. [Neil Armstrong Buried at Sea (NASA Photos)]

“Neil Armstrong said multiple times in multiple venues that he did not think about what to say until he got to the surface of the moon,” said space history and collectibles expert Robert Pearlman, editor of SPACE.com partner site collectSPACE.com. “There were several hours after he landed, during which time he had the opportunity to give thought to what his first words would be.”

That version of the story has been corroborated by other astronauts, as well, including the two other men who flew on the Apollo 11 mission with Armstrong.

“His crewmates Buzz Aldrin and Michael Collins have said he did not discuss what he would say with them either before the mission or as the mission was progressing,” Pearlman told SPACE.com.

This new information from Dean Armstrong has ruffled some space enthusiasts and historians, who wonder what Neil Armstrong himself would say if he were still alive.

“Whether intentional or not, Dean Armstrong’s account now suggests his brother has been lying for 40-plus years,” Pearlman said.

The new BBC documentary, “Neil Armstrong — First Man on the Moon,” is available to watch online here to those in the U.K.

Follow Clara Moskowitz on Twitter @ClaraMoskowitz or SPACE.com @Spacedotcom. We’re also on Facebook & Google+. 

Copyright 2013 SPACE.com, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Space and Astronomy News Headlines – Yahoo! News

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How Donald Trump hijacks U.S. media

STORY HIGHLIGHTS

• Howard Kurtz: Donald Trump said the GOP can go nuclear in budget showdown


• Kurtz: It's remarkable that Trump draw attention no what what he says


• He says it's so easy to hijack the media in the age of Twitter


• Kurtz: Journalists like sexy stories but shouldn't lose focus of what's important

Editor's note: Howard Kurtz is the host of CNN's "Reliable Sources" and is Newsweek's Washington bureau chief. He is also a contributor to the website Daily Download.

(CNN) -- After a year of national gridlock that ended on the precipice of a cliff, Donald Trump went nuclear.

The man who called Barack Obama's re-election a travesty said Republicans could gain control of the budget showdown because they "are sitting there with a nuclear weapon": the specter of voting against a rise in the debt ceiling in the coming weeks. In other words, the GOP could get its way by again threatening to push the country into default.

The remarkable thing here is not Trump's apocalyptic advice but that the man who still doesn't concede that the president was born in Hawaii draws attention no matter what he says. The colorful businessman has a knack for hijacking the media -- and he's hardly alone.

Watch: Hey Fox, Hillary Clinton was sick after all

Howard Kurtz

In fact, one of the most striking developments in recent years is how easy it is to carry out the hijacking. You don't need a weapon, nuclear or otherwise. You don't have to be a famous zillionaire to pull it off. In the Twitter age, almost anyone can capture the spotlight for 15 seconds.

We're so easy. If it's new, novel or naughty, we are there.

A critical mass of tweeters hijacked the presidential debates by turning Big Bird and "binders full of women" into trending topics. What, you thought what was most important was what the candidates said during those 90-minute face-offs? Nope, it's just as much about winning the post-game chatter. A single "oops" by Rick Perry enables the press to wipe out everything else that was said.

Watch: Are critics being too harsh on Chelsea Clinton?

Clint Eastwood, telling Obama (in the guise of an empty chair) to perform an anatomically impossible act? That hijacked Mitt Romney's convention.

Eric Fehrnstrom inadvertently hijacked his boss' campaign when he compared Romney's election strategy to an Etch A Sketch. Nothing like a kid's toy to seize the attention of grown-up journalists.

Any invocation of a celebrity has great hijacking potential, even if the story is a sprinkling of fairy dust.

The political press recently surrendered to the notion that Ben Affleck might run for John Kerry's Senate seat in Massachusetts. This was based on nothing more than local chatter, amplified by Politico. Affleck shrewdly kept the door ajar -- such speculation helps in the gravitas department --but on Christmas Eve, he gave the press a lump of coal by admitting he wasn't running.

Watch: Were the media swept away by fiscal cliff madness?

Next the media got excited by the idea that Ted Kennedy Jr. would run for office -- until he quickly popped that trial balloon.

Sometimes the hijacker wants no part of the limelight but is swept along for the ride.

Paula Broadwell was embedded in the nation's consciousness for weeks after her affair with David Petraeus prompted his resignation as CIA director. And her romantic rival, Jill Kelley, became a captive as well.

Racial tension can grab the media's attention like few other issues.

There are more than 15,000 murders annually in the United States, but only a few move beyond local headlines. The killing of Trayvon Martin, initially overlooked even in Florida, became a national sensation once activists persuaded the media that race played a role in the teenager's shooting (a perception deepened by NBC's misleading editing of George Zimmerman's 911 call). Week after week of routine murders in cities such as Chicago barely register on the radar.

Most journalists gravitate toward sensational and sexy stories (and I haven't been immune to the temptation) because we want the clicks and the ratings. And perhaps to alleviate our own boredom with the daily grunt work of reporting. The on-and-off negotiations over the fiscal cliff have been tedious and incremental. Along comes Trump and boom, you've got an easy headline.

The problem with all this media hijacking goes beyond the strange twists and turns along the way. It's that we cede control of what's important.

Follow us on Twitter @CNNOpinion

Join us on Facebook/CNNOpinion

The opinions expressed in this commentary are solely those of Howard Kurtz.

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Chicago man charged in estranged wife's slaying in Munster

A Chicago man with a history of domestic violence arrests has been charged with the murder of his estranged wife in Munster, Ind., early New Year’s Day, authorities said.

Margarito Valdivia, 44, of the 10800 block of South Troy Street, is being held without bail in the slaying of his estranged wife, Erica Valdivia, 33, early on Tuesday, Munster Police said in a news release this afternoon. The attack at a home in the 800 block of Boxwood Drive in Munster also injured Erica Valdivia’s boyfriend, police said.

Erica Valdivia, whom the Lake County coroner’s office said suffered blunt force trauma to the head in an apparent homicide, had been separated from her husband for about four months, according to police.

Margarito Valdivia is believed to have driven to the Boxwood Drive home early Tuesday, gone in and confronted his wife and her boyfriend, police said. He hit the boyfriend in the head “numerous times” as he drove the boyfriend from the home, police said in the release.

Once the boyfriend was outside, Margarito Valdivia went back into the home and began beating his wife, police said.

Police were called to the Boxwood Drive home about 5:45 a.m. Tuesday and found the boyfriend outside with a severe cut to the head. Officers tried to go into the house, but were at first unable to, as Margarito Valdivia had barricaded himself inside. After a SWAT team was called, police sent a remote-controlled robot into the home, and he surrendered.

Police entered the home and found Erica Valdivia lying in a bathroom, with “major trauma” to the head, including her face, police said. She was taken to Community Hospital in Munster, where she was declared dead at 10:04 a.m. Tuesday, according to the coroner’s office.

The Lake County, Ind., prosecutor’s office charged Margarito Valdivia with murder and felony battery today, police said. Court information was not immediately available, but he was being held without bail in Lake County Jail.

Court records show that Margarito Valdivia has Cook County arrests dating back to 1990, when he was arrested on a domestic violence charge and an order of protection was lodged against him. The charges were later dropped. In 1994, he was charged with domestic battery and resisting arrest and was sentenced to a year’s probation after being found guilty of the resisting arrest charge, according to court records.

In 1997, Margarito Valdivia was charged with criminal damage and having a firearm without a gun owner’s permit, and given two years court supervision following a guilty plea. A 2000 domestic battery charge was dropped, but in August 2012 he was found guilty of battery after an attack July 23 in the 9800 block of South Commercial Avenue and sentenced to a year’s conditional discharge, records show.

At the time of the battery arrest, he was still living at the same home in the 10600 block of South Avenue N that the coroner’s office listed as Erica Valdivia’s home address.

lford@tribune.com

Twitter: @ltaford

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Central African Republic rebels halt advance, agree to peace talks

DAMARA, Central African Republic (Reuters) - Rebels in Central African Republic said they had halted their advance on the capital on Wednesday and agreed to start peace talks, averting a clash with regionally backed troops.

The Seleka rebels had pushed to within striking distance of Bangui after a three-week onslaught and threatened to oust President Francois Bozize, accusing him of reneging on a previous peace deal and cracking down on dissidents.

Their announcement on Wednesday gave the leader only a limited reprieve as the fighters told Reuters they might insist on his removal in the negotiations.

"I have asked our forces not to move their positions starting today because we want to enter talks in (Gabon's capital) Libreville for a political solution," said Seleka spokesman Eric Massi, speaking by telephone from Paris.

"I am in discussion with our partners to come up with proposals to end the crisis, but one solution could be a political transition that excludes Bozize," he said.

Bozize on Wednesday sacked his Army Chief of Staff and took over the defense minister's role from his son, Jean Francis Bozize, according to a decree read on national radio, a day after publicly criticizing the military for failing to repel the rebels.

The advance by Seleka, an alliance of mostly northeastern rebel groups, was the latest in a series of revolts in a country at the heart of one of Africa's most turbulent regions - and the most serious since the Chad-backed insurgency that swept Bozize to power in 2003.

Diplomatic sources have said talks organized by central African regional bloc ECCAS could start on January 10. The United States, the European Union and France have called on both sides to negotiate and spare civilians.

Central African Republic is one of the least developed countries in the world despite its deposits of gold, diamonds and other minerals. French nuclear energy group Areva mines the country's Bakouma uranium deposit - France's biggest commercial interest in its former colony.

RELIEF IN BANGUI

News of the rebel halt eased tension in Bangui, where residents had been stockpiling food and water and staying indoors after dark.

"They say they are no longer going to attack Bangui, and that's great news for us," said Jaqueline Loza in the crumbling riverside city.

ECCAS members Chad, Congo Republic, Gabon and Cameroon have sent hundreds of soldiers to reinforce CAR's army after a string of rebel victories since early December.

Gabonese General Jean Felix Akaga, commander of the regional force, said his troops were defending the town of Damara, 75 km (45 miles) north of Bangui and close to the rebel front.

"Damara is a red line not to be crossed ... Damara is in our control and Bangui is secure," he told Reuters. "If the rebellion decides to approach Damara, they know they will encounter a force that will react."

Soldiers armed with Kalashnikovs, rocket propelled grenade launchers and truck-mounted machineguns had taken up positions across the town, which was otherwise nearly-abandoned.

Some of the fighters wore turbans that covered their faces and had charms strung around their necks and arms meant to protect them against enemy bullets.

Chad's President Idriss Deby, one of Bozize's closest allies, had warned the rebels the regional force would confront them if they approached the town.

Chad provided training and equipment to the rebellion that brought Bozize to power by ousting then-president Ange Felix Patasse, who Chad accused of supporting Chadian dissidents.

Chad is also keen to keep a lid on instability in the territory close to its main oil export pipeline and has stepped in to defend Bozize against insurgents in the past.

A CAR government minister told Reuters the foreign troop presence strengthened Bozize's bargaining position ahead of the Libreville peace talks.

"The rebels are now in a position of weakness," the minister said, asking not to be named. "They should therefore stop imposing conditions like the departure of the president."

Central African Republic is one of a number of countries in the region where U.S. Special Forces are helping local soldiers track down the Lord's Resistance Army, a rebel group which has killed thousands of civilians across four nations.

France has a 600-strong force in CAR to defend about 1,200 of its citizens who live there.

Paris used air strikes to defend Bozize against a rebellion in 2006. But French President Francois Hollande turned down a request for more help, saying the days of intervening in other countries' affairs were over.

(Additional reporting by Paul-Marin Ngoupana in Bangui and Jon Herskovitz in Johannesburg; Writing by Richard Valdmanis; Editing by Andrew Heavens and Janet Lawrence)

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United States avoids calamity in "fiscal cliff" drama

WASHINGTON (Reuters) - The United States averted economic calamity on Tuesday when lawmakers approved a deal to prevent huge tax hikes and spending cuts that would have pushed the world's largest economy off a "fiscal cliff" and into recession.

The agreement hands a clear victory to President Barack Obama, who won re-election on a promise to address budget woes in part by raising taxes on the wealthiest Americans. His Republican antagonists were forced to vote against a core tenet of their anti-tax conservative faith.

The deal also resolves, for now, the question of whether Washington can overcome deep ideological differences to avoid harming an economy that is only now beginning to pick up steam after the deepest recession in 80 years.

Consumers, businesses and financial markets have been rattled by the months of budget brinkmanship. The crisis ended when dozens of Republicans in the House of Representatives buckled and backed tax hikes approved by the Democratic-controlled Senate.

Asian stocks hit a five-month high and the dollar fell as markets welcomed the news. China's state news agency Xinhua took a more severe view, warning the United States must get to grips with a budget deficit that threatened not a "fiscal cliff" but a "fiscal abyss". Most of China's $3.3 trillion foreign exchange reserves are held in dollars.

The vote averted immediate pain like tax hikes for almost all U.S. households, but did nothing to resolve other political showdowns on the budget that loom in coming months. Spending cuts of $109 billion in military and domestic programs were only delayed for two months.

Obama urged "a little less drama" when the Congress and White House next address thorny fiscal issues like the government's rapidly mounting $16 trillion debt load.

There was plenty of drama on the first day of 2013 as lawmakers scrambled to avert the "fiscal cliff" of across-the-board tax hikes and spending cuts that would have punched a $600 billion hole in the economy this year.

As the rest of the country celebrated New Year's Day with parties and college football games, the Senate stayed up past 2 a.m. on Tuesday and passed the bill by an overwhelming margin of 89 to 8.

When they arrived at the Capitol at noon, House Republicans were forced to decide whether to accept a $620 billion tax hike over 10 years on the wealthiest or shoulder the blame for letting the country slip into budget chaos.

The Republicans mounted an effort to add hundreds of billions of dollars in spending cuts to the package and spark a confrontation with the Senate.

RELUCTANT REPUBLICANS

For a few hours, it looked like Washington would send the country over the fiscal cliff after all, until Republican leaders determined that they did not have the votes for spending cuts.

In the end, they reluctantly approved the Senate bill by a bipartisan vote of 257 to 167 and sent it on to Obama to sign into law.

"We are ensuring that taxes aren't increased on 99 percent of our fellow Americans," said Republican Representative David Dreier of California.

The vote underlined the precarious position of House Speaker John Boehner, who will ask his Republicans to re-elect him speaker on Thursday when a new Congress is sworn in. Boehner backed the bill but most House Republicans, including his top lieutenants, voted against it.

The speaker had sought to negotiate a "grand bargain" with Obama to overhaul the U.S. tax code and rein in health and retirement programs that are due to balloon in coming decades as the population ages. But Boehner could not unite his members behind an alternative to Obama's tax measures.

Income tax rates will now rise on families earning more than $450,000 per year and the amount of deductions they can take to lower their tax bill will be limited.

Low temporary rates that have been in place for the past decade will be made permanent for less-affluent taxpayers, along with a range of targeted tax breaks put in place to fight the 2009 economic downturn.

However, workers will see up to $2,000 more taken out of their paychecks annually with the expiration of a temporary payroll tax cut.

The non-partisan Congressional Budget Office said the bill will increase budget deficits by nearly $4 trillion over the coming 10 years, compared to the budget savings that would occur if the extreme measures of the cliff were to kick in.

But the measure will actually save $650 billion during that time period when measured against the tax and spending policies that were in effect on Monday, according to the Committee for a Responsible Federal Budget, an independent group that has pushed for more aggressive deficit savings.

(Additional reporting by Rachelle Younglai, Thomas Ferraro, Mark Felsenthal, David Lawder; Writing by Andy Sullivan; Editing by Alistair Bell and Eric Beech)

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Stanford holds off Wisconsin 20-14 in Rose Bowl

PASADENA, Calif. (AP) — Andrew Luck, Toby Gerhart and coach Jim Harbaugh started Stanford's improbable football renaissance, yet they never stood in the center of the Rose Bowl with the West Coast's most coveted trophy raised above their heads.

In fact, the last Stanford team to do what the Cardinal did Tuesday night had a defense known as the Thunderchickens.

Forty years after Stanford's last Rose Bowl victory, the favored Cardinal lived up to the legacy created by Luck, Harbaugh and every Thunderchicken that came before them by winning the bowl game that matters most to any Pac-12 team.

Stepfan Taylor rushed for an early touchdown, Kevin Hogan passed for 123 yards and No. 8 Stanford's defense shut out the Badgers in the second half of a 20-14 victory in the 99th Rose Bowl.

"I had heard that 1972 was our last win," said Hogan, the freshman quarterback who won Stanford's last five games. "It's been too long since we've had one at The Farm. It's a great feeling."

Instead of slipping back off the college football map when their biggest names graduate to NFL glory, the Cardinal (12-2) have just kept getting better under coach David Shaw. After winning the Orange Bowl two years ago and losing the Fiesta Bowl in overtime last season, Stanford followed up with its first conference title and its first trip to the Granddaddy of Them All in 13 years.

Stanford's unique combination of brains and brawn was too much for its opponents during eight straight wins to close the season.

"We've been in BCS games the past two years, but neither of those mean as much as this one did," said Zach Ertz, the tight end who had three catches for 61 yards. "This is the one we play for every year. It shows Stanford is here to stay."

Usua Amanam capped the defensive performance with an interception that stopped Wisconsin's final drive at midfield with 2:30 to play in a grind-it-out game. Stanford allowed the Badgers just 82 yards and four first downs after halftime.

"There's a sense of accomplishment, because we got somewhere we hadn't been yet," said linebacker Shayne Skov, who made eight tackles while leading Stanford's second-half shutout. "If you looked at our goals at the beginning of the season, this was on top of the list, and we got it done. We're extremely satisfied."

The Cardinal finished with 12 victories for just the second time in school history — and the second time in the last three years.

Stanford clamped down on the Big Ten champion Badgers (8-6), who lost the Rose Bowl in heartbreaking fashion for the third consecutive season. Montee Ball rushed for 100 yards and his FBS-record 83rd touchdown, but Wisconsin couldn't score after the final seconds of the first half.

With an impressive defense of its own, Wisconsin stayed in position for an upset in the one-game return of Hall of Fame coach Barry Alvarez, who was back on the Badgers' sideline in his red sweater-vest seven years after hanging up his whistle.

"This group of kids has been through a lot, and they competed extremely hard against a very high-quality team," said Alvarez, who nearly pulled off a stunner while bridging the gap between coaches Bret Bielema and Gary Andersen. "We've played three very good football games (at the Rose Bowl). These guys played hard. In fact, most people would like to get here once. But we just didn't get it done."

Kelsey Young took his only carry 16 yards for a score on Stanford's opening possession, and Taylor scored on the second drive after a big catch by Ertz. Wisconsin kept the Cardinal out of the end zone for the final 51 minutes, holding them to three points in the second half, but Stanford's defense didn't need any more help.

When Bielema abruptly left Wisconsin for Arkansas after winning the Big Ten title game, Alvarez agreed to coach his fourth Rose Bowl before handing off his program to Andersen, who met with Alvarez on the field before the game. But the Badgers' third consecutive January in Pasadena ended in much the same way as the last two: With the offense failing to get the late score the Badgers desperately needed.

"This stings just as much, because we fell extremely short when we had the opportunity to win," Ball said. "We had numerous opportunities to capitalize on big plays, and we fell short. ... This is not the way we want to be remembered. Speaking for the entire senior group, this is not the way we wanted to go out."

Curt Phillips went 10 for 16 for 83 yards passing and that crucial interception for Wisconsin, doing more with 64 yards on the ground. Jordan Fredrick caught his first career TD pass right before halftime, but no Badgers receiver had more than Jared Abbrederis' three catches.

And though Ball became the first player to score touchdowns in three Rose Bowls, the powerful back fell short of Ron Dayne's career Rose Bowl rushing record, swarmed under by waves of tacklers from one of the toughest defenses in the nation — a defense that shut down the top-ranked Ducks in mid-November to pave Stanford's path to Pasadena.

Wisconsin became the first five-loss team to make the Rose Bowl by steamrolling Nebraska in the conference title game, becoming the first Big Ten team in three straight Rose Bowls since Michigan in the late 1970s.

With the Rose Bowl filled with fans wearing the schools' near-identical cardinal-and-white gear, Stanford went up 14-0 on Taylor's 3-yard TD run just 8½ minutes in. Wisconsin briefly got rolling behind Ball, who rushed for 296 yards in his first two Rose Bowls.

Stanford stopped James White inside the 1 on fourth down early in the second quarter, but Ball scored on the next drive. The Badgers then mounted an 85-yard drive in the waning minutes of the first half ending with Fredrick's short TD catch.

After a scoreless third quarter, Wisconsin's personal foul on a fair-catch punt return finally sparked the Cardinal early in the fourth. Stanford got inside the Wisconsin 5 before stalling, and Jordan Williamson's short field goal put the Cardinal up by six points with 4:23 to go.

The Badgers got to midfield, but Phillips threw behind Jacob Pedersen, and Amanam easily made the pick.

"I just happened to be at the right place at the right time," Amanam said. "We were able to kind of seal the game on that one."

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