Source: American, US Airways merger approved

Updated 8:13 PM ET

(MoneyWatch) CBS News has learned that the boards of American Airlines and US Airways (LCC) have approved a merger that would create the world's biggest carrier.

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

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

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

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

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American close to merger with U.S. Airways

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

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

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

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Ship Stranded: Love Boat to Horror Honeymoon

A Texas couple's fantasy wedding quickly turned into a nightmare honeymoon when the fire-damaged Carnival Cruise ship carrying them became stranded in the Gulf of Mexico.

Rob Mowlam, 37, and Stephanie Stevenson, 27, of Nederland, Texas, got married on the Carnival Triumph on Saturday. The four-day cruise was meant to be back to shore on Monday, but was left disabled by an engine fire on Sunday.

The ship is being slowly towed to shore and is expected to dock in Mobile, Ala., on Thursday if weather permits. The vessel is without air conditioning, many working toilets and some restaurant service. Passengers, many who are sleeping in tents on deck, have told ABC News the smell on the ship is foul.

That is the honeymoon setting for Mowlam and Stevenson.

"[Rob Mowlam] had been with his girlfriend, or fiance, for a long period of time and they just took the next step," Mowlam's brother James Mowlam III told ABCNews.com. "The captain is the king of the world when they're on the boat and he hitched them up."

James Mowlam said he was shocked when he heard about the stranded boat and the increasingly dire conditions on the ship.

"It is an atrocious scene to be subjected to," he said.

Mowlam said he has not been able to communicate with his brother, but that his father has had sporadic communication with him.

"It would be my guess that this would probably not be on anyone's great list of memorable wedding experiences," Mowlam said with a laugh. "Although, my mom told him that she was hoping they had a memorable wedding and I think this would classify as a memorable wedding experience."

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

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The bride's brother, Justin Davis, told ABCNews.com that his sister works for a doctor's office and the cruise was a gift from the doctor to the staff.

Davis has not been able to speak to Stevenson but said that her two young sons are being cared for by her mother. He said his sister is tough and he guesses she's probably not scared.

"She might be a little aggravated at the situation, but I'd say she's [probably] handling it really well," he said.

Others on the ship do not seem to be handling the situation so well.

Elderly and disabled passengers aboard the ship are struggling to cope with the worsening conditions, according to at least one passenger.

"Elderly and handicap are struggling, the smell is gross," passenger Ann Barlow text-messaged ABC News overnight. "Our room is leaking sewage."

The head of Carnival Cruise Lines said the British-U.S.-owned company was working hard to ensure the thousands of passengers stranded on the disabled ship were as comfortable as possible while the vessel was being towed to a port in Alabama.

"I need to apologize to our guests and to our families that have been affected by a very difficult situation," Carnival Cruise Lines president and CEO Gerry Cahill said at a news conference Tuesday evening.

It was the first time since a fire erupted in Triumph's engine room Sunday, knocking out its four engines, that a company representative had spoken publicly. The Triumph, with roughly 4,200 people on board, was left bobbing like a 100,000-ton cork for more than 24 hours. Giant sea-faring tugboats then hooked up to the ship and began towing the nearly 900-foot-long ship to land.

Carnival spokeswoman Joyce Oliva told The Associated Press Tuesday that a passenger with a pre-existing medical condition was taken off the ship as a precaution. Everyone else will likely have to weather conditions such as scarce running water, no air conditioning and long lines for food.

Back on land, passenger Barlow's 11-year-old twins told ABC News Tuesday they are worried as more passengers continue to talk about living with limited power and sanitation.

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Obama keeps faith in science and warns of cyber threats

Peter Aldhous, San Francisco bureau chief

"IT IS our unfinished task to restore the basic bargain that built this country - the idea that if you work hard and meet your responsibilities, you can get ahead."

In adopting the phrase "unfinished task" as a signature motif for his 2013 State of the Union address, President Barack Obama signalled a return to familiar themes. For those who care about investment in science, that was a reassuring message. 

The fight against global warming and the importance of technology to protect national security also got high billing. On the latter, Obama signaled that hacking skills, rather than kilotons, are increasingly a crucial currency, promising a new focus on combating cyberattacks - paralleled by negotiated cuts to the US nuclear arsenal. 

In a combative speech designed to counter Republican opponents who want to cut the budget deficit by curbing spending on Obama's priorities - including education and research - the President made the case for continued investment in innovation.

"Every dollar we invested to map the human genome returned $140 to our economy. Today, our scientists are mapping the human brain to unlock the answers to Alzheimer's; developing drugs to regenerate damaged organs; devising new material to make batteries ten times more powerful. Now is not the time to gut these job-creating investments in science and innovation. Now is the time to reach a level of research and development not seen since the height of the Space Race."

The estimate of a 140:1 return on investment in genomics comes from a 2011 study by the Battelle Memorial Institute in Columbus, Ohio. While the precise numbers from that analysis have been questioned, the importance of continued innovation to America's future economic competitiveness has been stressed in multiple reports, notably from the US National Academies. 

"Now our enemies are also seeking the ability to sabotage our power grid, our financial institutions, and our air traffic control systems. We cannot look back years from now and wonder why we did nothing in the face of real threats to our security and our economy."

Obama called on Congress to pass new legislation to counter threats from hackers backed by hostile governments. That won't be easy: last year, a bill that would have demanded that companies meet minimum standards for cybersecurity, and report if they are attacked, foundered amid complaints that it would impose large costs on US businesses. 

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Train services between Marina Bay & Toa Payoh resume

SINGAPORE: SMRT said full train services between Marina Bay and Toa Payoh stations resumed at 11:20am.

In a tweet by SMRT at 11:30am, it said free buses to continue until further notice.

This comes after a cable caught fire in the tunnel at Newton station, causing train services on the North South Line to be disrupted on Wednesday morning.

In an earlier statement, SMRT said the fire has been put out.

The Singapore Civil Defence Force (SCDF) said they were informed of the incident at 9:04am and despatched two red rhinos, two fire engines, two fire bikes, two support vehicles and an ambulance.

SCDF also added that the fire involved electrical wiring about five metres away from the platform of the station.

The fire was extinguished using fire extinguishers and a small quantity of foam.

It added that no injuries have been reported so far.

Investigations into the cause of the fire are ongoing.

SMRT said passengers who could not continue with their journey because of the disruption, or had to exit an SMRT train station without taking a trip but had their fares deducted can get a refund at the Passenger Service Centre in any of SMRT's 83 stations within the next 14 days.

- CNA/ck

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Hear suspect's gunfight with cops

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State of the Union: "Act two" of Obama's 2nd term

When the curtain rises on President Obama's State of the Union speech tonight, the White House wants it viewed as "Act Two" - a follow-up to the national goals and policy objectives of which he spoke 22 days earlier on the West Front of the Capitol.

"The president has always viewed the two speeches, the inaugural address and the State of The Union, as two acts in the same play," said press secretary Jay Carney yesterday.

Though Mr. Obama has given more speeches this year on his proposals to stem gun violence and overhaul immigration policy, the "core emphasis" of his speech tonight is the economy.

"You'll hear from the president a very clear call for the need to take action to help our economy grow and help it create jobs," said Carney.

That includes the showdown with Congress over the mandatory spending cuts due to take effect starting March 1.

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Valerie Jarrett on SOTU: "An optimistic vision"

The president will urge Congress "not to shoot the economy in the foot," said Carney, by agreeing to his plan to avert the across-the-board spending cuts which the White House portrays as mindless and severe.

The president will again make it clear he wants a "balanced" plan that calls for additional tax revenue from America's top earners.

"My message to Congress is this: let's keep working together to solve this problem," the president said Saturday in his weekly address.

But Republican leaders say Mr. Obama already got his tax hikes as part of the "fiscal cliff" package, and now needs to focus exclusively on reductions in spending.

It'll be Mr. Obama's seventh appearance before a Joint Session of Congress and he'll be taking the rostrum aware that the national unemployment rate still hovers just under 8 percent and economic growth fell into negative territory at the end of 2012.

"The economy is not in a worse place than it was before," said Carney, pointing to the progress made since Mr. Obama's first State of the Union Address. "We were in economic freefall."

He said the president will make the case that "we are at a moment when the economy is poised to continue to grow...to build on the job creation that we've achieved -- over 6.1 million jobs created by our businesses over the past 35 or 36 months."

Carney added the president will propose further steps to grow the economy in a way that makes the middle class more secure and helps those trying to climb the ladder into the middle class.

"That is absolutely going to be his focus in the second term as it was in the first term," said Carney.

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Wanted Ex-Cop Believed in Armed Cabin Standoff

Fugitive former cop Christopher Dorner has barricaded himself inside a mountain cabin near Big Bear, Calif., and exchanged gunfire with police who had pursued him after he broke into a home in the area, authorities said.

Two San Bernadino County Sheriff's deputies injured in the firefight and subsequently airlifted to a nearby hospital. The extent of their injuries is unknown.

Dozens of local, state and federal authorities are at the scene in the San Bernadino Mountains, surrounding the cabin and engaged in an intense standoff with Dorner, a former Navy marksman who swore to kill police and their family members in a manifesto discovered online last week.

Dorner is believed to have broken into another home nearby and taken two women hostage before stealing a car, police said. Officials say Dorner crashed the vehicle and fled on foot, where sheriff's deputies and state Fish and Game officers exchanged fire with him, before he barricaded himself in the cabin.

The two hostages, who were tied up by Dorner but later escaped, were evaluated by paramedics and were determined to be uninjured.

Police have sealed all roads going into the area and imposed a no-fly zone above the cabin, which is in a wooded area that has received several inches of snow in recent days.

Four Big Bear area schools were briefly placed on lockdown.

The San Bernardino County Sheriff's Department stopped all traffic leaving the area and thoroughly searched vehicles, as SWAT team and tactical units could be seen driving toward the cabin, their sirens blaring.

Los Angeles Police Department/AP Photo

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Authorities believer Dorner may be watching reports of the standoff and have asked media not to broadcast images of police surrounding the cabin.

"If he's watching this, the message... is: Enough is enough. It's time to turn yourself in. It's time to stop the bloodshed. It's time to let this event and let this incident be over," said Los Angeles Police spokesman Andy Smith, told reporters at a press conference.

Dorner faces capital murder charges that involve the killing of Riverside police officer Michael Crain, who was gunned down in an ambush last Thursday.

Since then a massive manhunt has been underway, focused primarily in the San Bernardino Mountains, but extending to neighboring states and as far away as Mexico.

A capital murder charge could result in the death penalty if Dorner is captured alive and convicted. Crain was married with two children, aged 10 and 4.

The charges do not involve the slayings of Monica Quan and her fiance, who were found shot to death Feb. 3. Quan was the daughter of former LAPD Capt. Randal Quan, who was mentioned as a target of Dorner's fury in his so-called "manifesto," which he posted on his Facebook page.

PHOTOS: Former LAPD Officer Suspected in Shootings

In the 6,000 word "manifesto," Dorner outlined his anger at the Los Angeles Police Department for firing him, and made threats against individuals he believed were responsible for ending his career with the police force five years ago.

Dorner's grievance with police goes back five years when he was fired after filing a false report accusing other cops of brutality.

The LAPD has assigned 50 protection details to guard officers and their families who were deemed possible targets.

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Arctic sunshine cranks up threat from greenhouse gases

IT'S a solar double whammy. Not only does sunlight melt Arctic ice, but it also speeds up the conversion of frozen organic matter into carbon dioxide.

The amount of carbon in dead vegetation preserved in the far northern permafrost is estimated to be twice what the atmosphere holds as CO₂. Global warming could allow this plant matter to decompose, releasing either CO₂ or methane – both greenhouse gases. The extent of the risk remains uncertain because the release mechanisms are not clear.

Rose Cory at the University of North Carolina at Chapel Hill and her colleagues analysed water from ponds forming on melting permafrost at 27 sites across the Arctic. They found that the amount of CO₂ released was 40 per cent higher when the water was exposed to ultraviolet light than when kept dark. This is because UV light, a component of sunlight, raises the respiration rate of soil bacteria and fungi, amplifying the amount of organic matter they break down and the amount of CO₂ released.

The thawing Arctic is emerging as a potentially major source of positive feedback that could accelerate global warming beyond existing projections. "Our task now is to quantify how fast this previously frozen carbon may be converted to CO₂, so that models can include the process," Cory says.

Journal reference: PNAS, DOI: 10.1073/pnas.1214104110.

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Australia central bank sells scandal-hit note firm stake

SYDNEY: Australia's central bank on Tuesday announced the sale of its stake in scandal-hit note printing firm Securency and said an independent governance review had cleared it of "inappropriate" insight.

The Reserve Bank of Australia sold its 50 per cent holding in Securency, accused of taking bribes to win contracts in Asia, to British venture partner Innovia Films for A$65 million (US$66.7 million).

"The sale of the bank's interest in Securency is in accordance with the bank's long-standing intention to exit from the joint venture once Securency had established itself as a viable long-term supplier in the international market," the RBA said in a statement.

Note Printing Australia, a second RBA firm implicated in the Asia bribery scandal which the media broke in 2009, would remain a "wholly-owned subsidiary of the bank", it added.

The RBA also released a review into the governance of Securency and NPA by independent consultancy Cameron Ralph which cleared it of serious oversight issues.

Cameron Ralph said the RBA "gave reasonable consideration as to the governance arrangements for the two companies, and put in place processes for their oversight and reporting which were broadly consistent with usual practice at the time".

It appointed people to the firms' boards that it was "entitled to believe could direct the affairs of the companies with due care, diligence and skill", received regular reports and responded in a "considered and deliberate way".

The bank took "appropriate action where the entities appeared not to be performing in line with expectations and/or standards", Cameron Ralph added.

"Clearly, with the benefit of hindsight, there could have been more oversight applied to the activities of the companies, which may have detected earlier the alleged illegal payments" it said.

"But that does not mean that the Bank's oversight at the time was inappropriate."

Eight executives from Securency and NPA are facing claims they conspired to bribe officials at foreign banks to secure contracts to make plastic banknotes.

Both companies have also been charged over the alleged racket, which involved contracts in Indonesia, Malaysia, Vietnam and Nepal.

- AFP/ck

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Two charged in death of girl who performed at inaugural

By Steve Almasy and Ted Rowlands, CNN

updated 9:31 PM EST, Mon February 11, 2013

Michael Ward, 18, and Kenneth Williams, 20, were charged in the killing of Chicago honor student Hadiya Pendleton.

STORY HIGHLIGHTS

• NEW: Killer was on probation for gun crime, police say


• NEW: Shootings were a case of mistaken identity in street gang feud


• Hadiya Pendleton was shot to death a week after she performed in Washington


• First lady Michelle Obama attended her funeral

Chicago (CNN) -- The teenager who police say shot and killed Chicago honor student Hadiya Pendleton was on probation for unlawful use of a firearm, Police Superintendent Garry McCarthy said Monday night.

Michael Ward, 18, and Kenneth Williams, 20, were each charged with one count of murder and two counts of attempted murder, McCarthy told reporters.

Ward confessed to shooting Hadiya and two others in late January in a case of mistaken identity, McCarthy said.

Police said Ward and Williams were gang members seeking revenge against the people who had shot Williams in July.

"Ward crept on foot, spraying gun fire," McCarthy said.

McCarthy said Ward was sentenced to two years' probation in January 2012 for unlawful use of a firearm.

The charges come 12 days after Hadiya was shot to death at a park in what her godfather, Damon Stuart, described as an "ideal community" on Chicago's South Side.

Her death occurred a week after she performed at one of the events surrounding Obama's second inauguration.

The killing -- which occurred in the city's Hyde Park neighborhood near the Obamas' Chicago home -- drew the first couple's attention.

First lady Michelle Obama attended Hadiya's funeral Saturday, and her husband wrote a note to Hadiya's family that was printed on the funeral program: "We know that no words from us can soothe the pain, but rest assured that we are praying for you, and that we will continue to work as hard as we can to end this senseless violence."

Hadiya, who often urged friends to stay away from gangs, was an honor student and band majorette at King College Prep School.

Her slaying -- the 42nd in the city this year -- also highlighted the problem of gun violence in Chicago. More than 500 people were fatally shot in 2012.

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