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Saturday, January 31, 2015
Paris terrorist took 7-minute video
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Japan: We are 'outraged' by this atrocious act
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Obama and Dalai Lama to meet
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Who was Kenji Goto?
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Madrid square fills for austerity rally
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Newborn saved from hospital rubble
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Pastor jailed in Iran thanks Obama
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Bodies 'charred beyond recognition'
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Arrest in suitcase killing
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Soccer: Huge shock in Africa Cup
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Venezuela uses detained reporter in ad
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Video: ISIS purportedly beheads Japanese hostage
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Star's daughter found in tub
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Ukraine talks start amid fighting
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Pacific balloonists set records
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Who is Suge Knight? Story of arrested hip-hop legend
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Meet dachshund-pit bull cross
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ISIS fighters: Airstrikes drove us out of Kobani
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Why ISIS wants to free female bomber
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American shot in Saudi Arabia
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Williams beats Sharapova
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Blogger's wounds delay flogging
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Bodies litter streets as shelling rocks Donetsk
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Hip-hop mogul 'kills rap father figure'
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Mega-rocket could reach Mars
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Spectacular space images mark 'Year of Light'
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Romney won't run in 2016
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Why Mitt Romney bowed out
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Mosque attack kills dozens
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Plague outbreak 'disturbing'
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Death on Scorsese movie set
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Transgender man: I met Pope
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Friday, January 30, 2015
Residents of Donetsk struggle to live
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Zimmerman assault case dropped
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Surprise ingredient for a booming economy
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Hear Obama's 'Deflategate' joke
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These are the world's most visited cities
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American shot in Saudi Arabia
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In a hurry? Let a robot valet park your car
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Terror group's assault 'no surprise'
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No flogging for Saudi blogger
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Bodies litter streets of Donetsk
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Rap mogul in fatal hit-and-run
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Disney unveils its first Latina princess
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What's the legacy of Tiger Woods?
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Mitt Romney to reveal his 2016 plans
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Gitmo inmate 'returns to militancy'
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When childbirth turned from joy to terror in Ireland
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Mortars, bombs hit Egypt security HQ
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Pakistan: 15 die in mosque attack
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Djokovic makes fifth Aussie Open final
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Witness: 'Nut rage' boss shoved me
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This 'eco stove' does more than cook your dinner
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Do Celtic and Rangers need one another?
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Argentine lawyer 'afraid before death'
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More lashes for Saudi blogger
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Bestselling Australian novelist dies
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UK jets intercept Russia bombers
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ISIS launches attack on Kirkuk
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Gunman storms Dutch TV station
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Jews locked in at Auschwitz memorial
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Tough times for ISIS as it seeks to regroup
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Kenji Goto sought 'story of ISIS'
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U.S. sitcom draws backlash after tweet
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Israel: Iran trying to turn up heat
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WHO: Ebola cases dropping
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Adventurer climbs Niagara Falls
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Mexican policeman becomes hero
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Pics 'show Islamist child soldiers'
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Moaz al-Kassasbeh captured by ISIS
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MH370 : All 'presumed dead'
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'Treasure hunter' held for gold scam
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Legal lifeline for Australians on death row
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Hope fading fast as another deadline passes
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Taliban claims Kabul attack
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Key data on Afghan funding classified
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Report: Kim may restart nuke reactor
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Thursday, January 29, 2015
Flavour science: The tastemakers
FIRST umami. Then kokumi. For many Japanese the classical gustatory quartet of sour, sweet, salty and bitter seems insufficient. They suggest there are other basic tastes, and are prepared to back that suggestion with scientific research.Umami, imparted by glutamic acid, a type of amino acid, and most commonly associated with a derivative of that chemical called monosodium glutamate (MSG), was identified in 1908 by Kikunae Ikeda, a chemist at what was then Tokyo Imperial University (now called the University of Tokyo). Ikeda wanted to pin down an ineffable taste he identified in dashi, a soup stock made from tuna and seaweed. When he found glutamates were the cause, he gave their effect a name compounded from the characters for “delicious” and “taste”.Kokumi, similarly compounded from “rich” and “taste”, has been the subject of scientific inquiry in Japan since the 1980s, but is less familiar in the West. It is as much a feeling as a taste, and is described variously as “mouthfulness”, “thickness” and “heartiness”. Garlic, onions and scallops are all said to possess it. But, though the source of kokumi is...
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Astronomy: Old planets
THE picture shows Ceres, the largest object in the asteroid belt, as seen a few days ago from Dawn, an American spacecraft that is en route there. Ceres’s gravity is strong enough to make it round, like a planet. And it probably has a core and a mantle, like Earth (though the core is thought to be rocky, and the mantle icy). It may even have a thin atmosphere.But Ceres is not a planet. It was classified as such in 1801, when it was discovered, but soon after it was spotted astronomers started finding other objects in the junkyard of rock and ice that is now called the asteroid belt. The idea of calling all of them planets began to look silly, and so Ceres was quietly demoted. These days it is classed as a “dwarf planet”, one of at least five in the solar system.The most famous of them is Pluto, which was, in 2006, demoted from full planethood by the International Astronomical Union, amid much wailing and gnashing of teeth. Pluto now is merely the biggest object in the Kuiper Belt, a second group of asteroids, which extends far beyond the orbit of Neptune, the most distant of the true...
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Particle physics: A new awakening?
FOR more than 80 years particle physicists have had to think big, even though the things they are paid to think about are the smallest objects that exist. Creating exotic particles means crashing quotidian ones (electrons and protons) into each other. The more exotic the output desired, the faster these collisions must be. That extra speed requires extra energy, and therefore larger machines. The first cyclotron, built in 1931 in Berkeley, California, by Ernest Lawrence, had a circumference of 30cm. Its latest successor, the Large Hadron Collider (LHC) at CERN’s laboratory near Geneva—which reopens for business in March after a two-year upgrade—has a circumference of 27km.The bill for this big thinking, though, is enormous. The LHC, which started work in 2008, cost $5 billion. An even more ambitious American machine, the Superconducting Super Collider, would have had a circumference of 87km but was cancelled in 1993 after $2 billion had been spent building less than a third of the tunnel it would have occupied. Most particle physicists thus understand that the LHC may be the end of the road for their subject unless they can radically scale down the size...
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Weight loss: A burden shared
SHEDDING kilos is harder than putting them on, which is why the weight-loss industry is so big. Its latest manifestation is online weight-management sites: social networks for the plump in which participants can set a target weight and monitor their progress towards it.As with other social networks, they can also get help from friends—either real-life ones who sign up to the same site, or else digital ones whom they have befriended on the internet. Those friendships are likely to be important. Other studies of weight-loss programmes have suggested that having the support (or chivvying) of friends helps people stick to their diets and exercise regimes.Those studies, however, have all been done with groups of people who knew each other in the real world. A team of researchers led by Julia Poncela-Casanovas of Northwestern University, in Illinois, decided to check if the same was true of groups in cyberspace. Their results, just published in the Journal of the Royal Society Interface, suggest that it is.Dr Poncela-Casanovas and her colleagues studied records from 47,026 visitors to an unnamed weight-management website. Such sites, it seems, are much like gyms in the real world, in that 40% of these people—around 19,000—visited once and never came back. Only 22,419 lasted long enough to weigh themselves at least twice. Of these, a mere 5,409 stayed the...
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Lexington: The end zone
BY THE time it is over, more than half a billion chickens will have given their lives so that their wings might be dipped in barbecue sauce. Enough avocados will be eaten, mashed into guacamole, to lay a trail from Seattle to Boston and back, four times. Even those who think sport is silly must pause to acknowledge the Super Bowl. The ten most watched television broadcasts in American history have all been Super Bowls, as have the next ten. By a conservative estimate, 112m Americans watched it last year. The number who will see the game between the Seattle Seahawks and the New England Patriots on February 1st is slightly more than the number who say they attend church once a week. Many churches have given up competing and instead throw Super Bowl parties as a way of expanding the flock.This year’s contest has many subplots that have required the intervention of politicians. Joe Biden, the vice-president, was asked to comment about the underinflated balls used in the semi-final by the Patriots (“Deflategate”). He revealed that he too prefers a softer ball. Serious people questioned whether it was good politics for Chris Christie, the governor of New Jersey and...
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Suicide in America: An awful hole
BEING depressed is like having a terrible headache, says one Atlanta businessman. Except that a few days of rest do not stop the pain: “You’re just expected to keep going.” Trying to “man up”, he sought little help for his condition, choosing to hide it instead. “It all gets so debilitating that you don’t want to go on,” he explains.He tried to kill himself more than once; fortunately, his attempts came to nothing. But the same cannot be said for a growing share of Americans. The suicide rate has risen from 11 per 100,000 people in 2005 to 13 seven years later. In the time it takes you to read this article, six Americans will try to kill themselves; in another ten minutes one will succeed.
Over 40,000 Americans took their own lives in 2012—more than died in car crashes—says the American Association of Suicidology. Mondays in May see the most incidents. The rates are highest in Wyoming and Montana, perhaps because guns—which...
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Labour relations: Watching fruit rot
ON JANUARY 22nd KFC announced that its Japanese stores faced a shortage of potatoes. McDonald’s, too, rationed fries in Japan in December, despite an “emergency” airlift of nearly 1,000 tonnes of spuds. The cause in both cases: massive delays at America’s West Coast ports.Cargo is piling up inside the terminals. Exporters and importers are bleeding cash. The North American Meat Institute says delays are costing meat and poultry producers $30m a week. Chelan Fresh Marketing, a Washington fruit supplier, has laid off a fifth of its workforce. It is “a huge mess,” says Jon Wyss, Chelan’s head of government affairs.The Pacific Maritime Association (PMA), which represents port operators, is battling the International Longshoremen and Warehouse Union (ILWU). The two groups have worked without a contract since July. The PMA says the union is co-ordinating a slowdown. By limiting the availability of skilled workers such as crane operators, the union has quietly created a bottleneck. “It’s like putting a football team of 11 guys out on the field, but not one of them is a quarterback,” says a spokesman for the PMA. The union denies it, arguing that the bottleneck is caused by larger ships and a near-record volume of goods.If workers formally go on strike, they lose their wages. An informal go-slow imposes no such hardship. Hence its appeal, especially at a time when unions are losing...
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The job market: Incentives matter
AMERICA’S labour market boomed in 2014. By December there were 3m more people in work than a year earlier (see chart). Unemployment was 1.1 percentage points lower. The ratio of jobseekers to openings fell from a peak of seven to one in 2009 to two to one in November 2014. What was behind this? The answer in a new study will not please Democrats.*The job market is hot largely because of a cold-hearted Republican reform, it concludes. Before the financial crisis, jobless workers in most states qualified only for 26 weeks of unemployment benefits. In June 2008 that was extended, thanks to a new federal Emergency Unemployment Compensation (EUC) programme. By the end of 2013 the average unemployed American could expect benefits to last 53 weeks; in three states they could get 73 weeks’ worth.The study looks at what happened after Congress refused to reauthorise EUC in December 2013. The average limit on benefits plunged to 25 weeks, cutting off roughly 1.3m Americans immediately. Republicans argued that this would push people back into work. Several economists disagreed. Michael Feroli of J.P. Morgan predicted that many jobless Americans, no longer...
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War on film: Bleeding red and blue
WHEN the troops return, the myth-making begins. It took four years after the Vietnam war ended for “The Deer Hunter” and “Apocalypse Now” to paint it as futile and degrading. Since then the cycle has sped up. The Iraq war already has one Oscar-winning film, “The Hurt Locker”. The success of another Iraq film, “American Sniper”, which was released on January 16th, suggests that views of that war are yet to settle. Many critics panned the film, which is more John Wayne than Wilfred Owen. Despite or, rather, because of this, it has been a hit: if early ticket sales are any guide, it will be one of the most successful war films ever made (see chart).
Because of the attention it has received, “American Sniper” has been fed into the partisan threshing machine. It is not enough to have a view on the movie itself; everyone is debating the politics behind it. Writing in...
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New York politics: Tarnished Silver
“CORRUPTION’S such an old song that we can sing along in harmony/ And nowhere is it stronger than in Albany.” These lines from “Hamilton”, a musical about Alexander Hamilton now playing in New York, got an especially loud laugh on January 22nd. That morning Sheldon Silver, the long-serving and powerful Speaker of the New York state Assembly, was arrested by the FBI and indicted in a federal court on five corruption charges. Each charge could carry a sentence of 20 years.According to the complaint, Mr Silver, a Democrat who has served in the Assembly for 38 years and has been Speaker for 21, received more than $6m from two law firms. This included $700,000 in “bribes and kickbacks” for inducing “real-estate developers with business before the state” to use a particular property-law firm; and $5.3m from Weitz and Luxenberg, a law firm that handles personal-injury cases.Among other things, he allegedly directed state grants to a doctor who then referred clients to an unsuspecting Weitz for asbestos lawsuits. Preet Bharara, the prosecutor, said that Mr Silver had amassed “a tremendous personal fortune—through the...
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Measles returns: Of vaccines and vacuous starlets
AS THOMAS PEEBLES jabbed a needle into the arm of a sick student in 1954, he told him, “Young man, you are standing on the frontiers of science.” Indeed he was. Using blood collected at the boy’s school, Peebles was able to isolate the measles virus, which John Enders then used to craft a vaccine in 1963. That year there were around 400,000 cases of measles in America. In the decade to 2013 the average number of annual cases dropped below 100. The disease is no longer endemic in America (though it still kills thousands abroad).
The measles vaccine, now combined with those for mumps and rubella, is safe and effective. Yet some parents believe the opposite and refuse to vaccinate their kids. Some adults go unprotected, too. They reflect a rise in anti-vaccine sentiment fuelled by misinformation and pseudoscience. This has coincided with an increase in the number of measles...
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Russian spies: Unearthing Moscow’s moles
HOW American sanctions might bite on Russian banks is a matter of great interest to the Kremlin. So Russia’s Foreign Intelligence Service, the SVR, asked one of its undercover agents in New York to find out, prosecutors claim. Evgeny Buryakov was outwardly an executive at Vnesheconombank, a Russian state-owned financial agency. But in real life he was allegedly “Zhenya”—working with two Russian intelligence officers who doubled as diplomats, also in New York. Mr Buryakov’s mission involved collecting economic intelligence and spotting potential sources. It has ended in disaster. On January 26th news broke of his arrest by the FBI. He faces trial and, if found guilty, up to 15 years in prison. His alleged colleagues have left America. What gave the FBI its first clue? Was it good surveillance, a cryptographic breakthrough, success in penetrating the Russian spy service or sloppy tradecraft by Vladimir Putin’s spooks? The FBI’s evidence suggests a lengthy period of observation. The three men communicated with brief phone messages, consisting of unremarkable exchanges about “tickets” and other everyday items, and handed over secret material with “brush contacts”—spy jargon for exchanging bags, folded newspapers and the like during fleeting encounters.It is not clear whether Mr Buryakov’s alleged colleagues were told to go by the authorities, or fled when they realised that...
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Where medics make the most
Being a doctor in America is lucrative, but not evenly so. The map, based on pay data from more than 18,000 internists, shows striking geographical disparities. Rural medics make more, because few doctors want to live in the boondocks. Pay is lower in fashionable neighbourhoods: a doctor of general medicine in New York typically earns 64% less than his peer in Alabama. The lowest pay is in Massachusetts, which has four medical schools and a surplus of stethoscope-slingers. Greater use of telemedicine would help even things out, as would removing unnecessary restrictions on nurses. Many of the states where doctors earn most are those which most limit what nurses can do.
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Canada’s economy: Beyond petroleum
“THE oil industry isn’t remotely the entire Canadian economy,” declared the prime minister, Stephen Harper, on January 22nd. That is not a startling statement. Production of crude oil represents just 3% of Canada’s GDP. The surprise is that Mr Harper felt he has to state the obvious. In an economy dominated by services, Mr Harper and his Conservative Party have cast themselves as champions of the oil industry, which is centred in Alberta, his adopted home province.He pulled Canada out of the Kyoto protocol on climate change and promoted the Keystone XL pipeline that would carry Alberta bitumen to refineries in the southern United States. He has likened the development of Alberta’s tar sands to building the Great Wall of China. Canada, the fifth-largest producer of crude oil (which makes up 14% of exports), is an “emerging energy superpower”, Mr Harper has proclaimed.But the drop in oil prices—by more than half since last June—has checked that boastfulness. It has shifted the engines of economic growth from western Canada to the central provinces of Ontario and Quebec, which concentrate on services and manufacturing. The weakness in the energy sector prompted a...
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Crime in El Salvador: The broken-truce theory
“THE best answer to terrorist groups and gangs is to confront them,” believes Rudolph Giuliani, a former mayor of New York city. The man who brought the broken-window theory—that tolerance of small crimes would encourage bigger ones—to the United States’ biggest city unsurprisingly rejects the idea of negotiating with gangsters. Now a group of right-wing businessmen in El Salvador have hired Mr Giuliani to propose tough-guy solutions to crime in one of the world’s most gang-ridden countries. He dispatched a fact-finding mission in January.
The facts, however, may prove him wrong. El Salvador’s murder rate dropped sharply during a truce between the country’s two main gangs in 2012-14, which was brokered by the government. It soared after the agreement broke down early last year. The number of murders rose 57% in 2014 compared with a year earlier, to almost 11 a day, according to the police. A rash of killings in early January 2015 took the number to a staggering 15 a day.The armistice has now been restored, perhaps fleetingly. Raúl Mijango, a former guerrilla who helped broker the 2012 truce, says that on...
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Argentina: It’s not about you, Cristina
FEW Argentines doubt that the country’s intelligence services needed a shakeup. But the way it happened satisfied almost nobody. On January 26th the president, Cristina Fernández de Kirchner, wheelchair-bound from an ankle injury, appeared on television to announce that she would propose a law to scrap the main intelligence agency, the Intelligence Secretariat (SI), and replace it with a new body whose directors would be named by her and approved by the Senate.This happened while the SI is at the centre of a furore set off by the death from a gunshot of Alberto Nisman, a prosecutor who had accused Ms Fernández and other senior officials of trying to thwart his investigation into the 1994 bombing of a Jewish centre in Buenos Aires, Argentina’s worst terrorist attack. The president, who denies the allegations, quickly pronounced his death a suicide, then hinted that he was murdered by rogue intelligence agents. She suggested the 300-page document detailing Mr Nisman’s allegations had been the product of false information fed to him by the SI. Hence the need for a reform.But Argentines, some of whom took to the streets after Mr Nisman’s death, do not see her as a credible reformer. They are as confused as ever about what really happened. Their suspicions that the government was somehow involved have not been allayed. Some Jewish groups boycotted the official commemoration of...
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Bello: The last lap in Colombia
IT HAS been an auspicious start to the year in Colombia. Fewer people have died in the country’s armed conflict than in any other month in the past 30 years. That is a result of the declaration of an indefinite ceasefire by the FARC guerrillas. After more than two years of talks in Havana between the government and the FARC, officials are optimistic about reaching an agreement in the coming months. “I hope this is the year of peace,” said Juan Manuel Santos, Colombia’s president.Maybe. The peace process emerged stronger from a crisis in November, when the government suspended talks after the FARC kidnapped an army general, securing his swift release. But if the talks are indeed on the last lap, this could yet be a long and difficult one. The negotiators have reached agreements on the first three items of a six-point agenda, concerning rural development, the guerrillas’ participation in politics and steps to curb drug-trafficking. Since July they have been locked in discussions on the most delicate point of all: “transitional justice”—in other words, striking a balance between truth, justice and reconciliation.A generation ago, as the cold war waned, leftist...
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Buttonwood: A peg in a poke
THE year is only a few weeks old but already there has been turmoil in the foreign-exchange markets. On January 28th Singapore eased monetary policy, allowing its currency to fall to its lowest level against the dollar since 2010. The Swiss have abandoned their policy of capping the franc against the euro and the European Central Bank (ECB) has unveiled a big programme of quantitative easing (QE), sending the euro to an 11-year low against the dollar (see chart). Meanwhile, a rate cut from the Bank of Canada has pushed the loonie down to around 80 American cents, from 94 cents a year ago.The main reason for this sudden surge of volatility seems to be a divergence in monetary policy: no longer are central banks moving in the same direction. “There are two huge forces at work,” says David Bloom, a currency strategist at HSBC. “The ECB and Bank of Japan are printing money and devaluing their currencies while the US economy is growing strongly. Anyone who stands in the middle risks getting crushed.”The Swiss were caught in the middle. Their cap involved creating Swiss francs and using them to buy euro-denominated assets, but they clearly balked at...
from The Economist: Finance and economics http://ift.tt/1txrWgx
Financial-transaction taxes: Still kicking
EUROPE has a chequered history when it comes to taxing financial transactions. Britain has a centuries-old stamp duty on share purchases but wants to protect the City from further fiscal burdens. Sweden tried a tax in the 1980s and dropped it when share-trading emigrated. France and Italy have recently imposed different sorts of financial-transaction taxes (FTTs). But at the year’s first meeting of European finance ministers, France, along with ten other like-minded members of the European Union, dusted off a moribund plan to introduce a harmonised FTT.Countries like Britain and Luxembourg, which lives off its asset-management industry, have long thwarted attempts to introduce an EU-wide FTT. In response, in 2014, a coalition of more enthusiastic EU members announced its intention to start taxing something financial in 2016. Since then the 11—Austria, Belgium, Estonia, France, Germany, Greece, Italy, Portugal, Slovakia, Slovenia and Spain—have squabbled over what and how.Should a wide range of financial instruments including derivatives be taxed, as Austria and Germany favoured? France, though as keen as the next country to humble the moneymen, wanted to exclude most derivatives: its banks have at least a quarter of the European market in equity-based ones. Should the location of the company issuing the security determine whether a transaction was taxable and what country...
from The Economist: Finance and economics http://ift.tt/1A1QqRv
China’s financial diplomacy: Rich but rash
XI JINPING, China’s president, was chummy in public when he metNicolás Maduro in Beijing in early January (pictured), praising his Venezuelan counterpart as a “good friend of the Chinese people”. Behind closed doors, negotiations must have been far more tense. Chinese banks have lent $50 billion to Venezuela since 2007. With its economy in a deep recession, Venezuela’s ability to repay these debts is in grave doubt. Investors trading Venezuelan bonds would see default as a virtual inevitability but for China’s involvement. Having already lent so much to Venezuela, will it give Mr Maduro yet more to prevent his country from going over the edge?
And Venezuela presents just the first such dilemma for China. The second-biggest recipient of Chinese loans in South America is Argentina, which is also suffering as commodity prices swoon. It has started drawing on Chinese credit to stop its currency reserves from shrinking further. Then there is...
from The Economist: Finance and economics http://ift.tt/1zgwxTQ
Reforming the IMF: Getting around Uncle Sam
AMERICA, the International Monetary Fund’s largest and most influential shareholder, has lately been its most troublesome too. In 2010 the world agreed to expand the IMF’s lending power and rejig its voting rights. But because Congress has not approved America’s contribution to the proposed increase in capital, the reforms have yet to take effect. In December Congress once again passed a budget without paying up.The rest of the world is growing impatient. The IMF’s capital has been steadily shrinking relative to the world economy: its clout is half what it was in 2000. Moreover, the giants of the emerging markets—Brazil, China and India—have only 8% of the voting rights, even though they account for 19% of global output. On January 15th Christine Lagarde, the IMF’s boss, expressed her “profound disappointment” with America and resolved to explore “interim solutions”.The abeyant reforms would double the IMF’s capital (“quota” in the fund’s jargon) to $677 billion. Its additional line of credit with its members (dubbed the “New Arrangements to Borrow”, or NAB) would shrink. Total lending capacity would...
from The Economist: Finance and economics http://ift.tt/1zgwyXU
Public debt in Africa: Not contagious
TIMES are tough in Africa. Ebola, in addition to claiming many lives, has also damaged economies. Tourism is suffering as frightened foreigners stay away. Falling commodity prices are also taking a toll. Investors are pulling money out of riskier spots, prompted by the prospect of rising interest rates in America. The IMF is cutting its growth forecasts. So is the unfolding public-debt crisis in the Gambia, which has suffered from all these trends, a harbinger of things to come?In mid-January the IMF announced that it is considering a bail-out for the Gambia. In part, the problems of the tiny west African country of 2m stem from a 60% fall in tourism, the source of 30% of its export earnings. (Although it has not suffered a single case of Ebola, it is close to Guinea, one of the most affected countries.) Falling commodity prices mean that exports of wood and nuts will also bring in less. No wonder the local currency, the dalasi, fell by 12% against the dollar last year.A weak currency is a worry, since Gambians rely heavily on imported food. Two-thirds of the public debt is denominated in foreign currency. To prop up the dalasi the central bank has raised interest rates from 12% to 22% over the past two years.But it is mismanagement of the government’s finances that has pushed the Gambia over the edge. From 2009 to 2014 its debt-to-GDP ratio increased by 18 percentage...
from The Economist: Finance and economics http://ift.tt/1zgwwPA
European banks: Easing means squeezing
EUROPEAN bankers depressed by the miasma in Athens might cheer up a bit if they focused on news from Frankfurt instead. The recent unveiling by the European Central Bank (ECB) of a €1.1 trillion ($1.25 trillion) package of “quantitative easing” (QE)—the printing of money to purchase vast quantities of bonds—should be as heartwarming for them as a resurgence of the euro crisis is chilling.Cynics might be forgiven for thinking QE is a policy designed purely to aid financiers. Banks, after all, borrow vast sums of money (from bond markets, depositors and other creditors) to acquire financial assets (corporate bonds, say, or the promise to repay a loan with interest). Even looser monetary policy helps the banks on both counts. On the one hand, it is cheaper for them to borrow money as interest rates are pushed lower. On the other, to drive bond yields down the ECB will have to drive bond prices up. Banks, which own lots of them, will be the biggest sellers.Without QE, bankers would now have been fretting about the prospect of deflation. A fall in prices would inflate the real value of borrowers’ debts, nudging some of them into default. More broadly, if consumers...
from The Economist: Finance and economics http://ift.tt/1zgwuHw
Banking in India: Downwardly mobile
IT IS midmorning in Kurla East, a suburb of Mumbai, and Jeejabai is opening her first bank account. She stands at the counter of a busy kiosk run by Geosansar, one of the so-called “business correspondents” that act as local agents for India’s big banks. Jeejabai works as a housemaid earning 2,500 rupees ($40) a month. She wants to save for her children now that her husband has found work as a watchman. The Geosansar clerk scans her biometric identity card, takes her fingerprints on a device linked to his laptop and types in her details. He issues a stamped-and-dated slip with Jeejabai’s new account number on it. It all takes just ten minutes.The bustle at the kiosk in Kurla East is in response to the government’s drive to provide banking to the poor. It is looking for a direct and reliable means to support their incomes, which would allow it to do away with costly and distorting subsidies. The prime minister, Narendra Modi, launched the initiative at the end of August, setting a target of 75m new accounts by Republic Day, January 26th.The scheme’s initial goal has been surpassed: 120m accounts have been...
from The Economist: Finance and economics http://ift.tt/1A1QfW7
Free exchange: As safe as houses
BANKS may be frail and dangerous things, but most economists see them as essential to growth. According to the centuries-old circular-flow model, which tries to explain how money moves between firms and households, it is their job to recycle private savings into business loans. That helps firms invest and grow. Places where spare cash is routinely stuffed under mattresses, in contrast, will tend to grow less fast.In practice, not all savings make their way into investment. For instance, as John Maynard Keynes pointed out in the 1930s, it is possible to have “savings gluts”—periods when households are more willing to save than firms are to borrow and invest. Ben Bernanke, a former chairman of the Federal Reserve, has shown that scarred banks curtail their lending to companies after financial crises even if they have sufficient funds, inhibiting economic growth.* But it is not enough for banks to be handing out cash: just as important, a growing body of research suggests, is where the money goes.According to a new paper by Oscar Jorda, Moritz Schularick and Alan Taylor, the traditional view that banks primarily lend to businesses is out of...
from The Economist: Finance and economics http://ift.tt/1A1QctA
Obituary: John Bayley: Of literature and love
WHEN he had tucked his wife, Dame Iris Murdoch, the great novelist, into bed, registering from her expression of sweet content that Dr Alzheimer had been temporarily banished by sleep, John Bayley would go downstairs. There, at the kitchen table, he would pour himself a drink and find a book to read. Among the piles of unwashed plates, papers and pill packets—and, somewhere, a large pork pie which they had put down and never seen again—would be a Jane Austen or a Barbara Pym, well-worn and ever welcome.As he read, though, his thoughts would start to wander, first ambling and then running, like a horse let out in a field. He had held them back all day, of necessity, as Iris had rattled the front door crying to escape, or fought against putting on her shoes. Now he did not resist them. Like the devil Belial in “Paradise Lost”, he surrendered to open-ended daydreaming.For who would loseThough full of pain, this intellectual being,These thoughts that wander through eternity?He was, he supposed, that “intellectual being”, though he made no great play of it. The Warton Professorship of English at Oxford sat on him as lightly as his tattered Oxfam jumpers and caps...
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WHO: New Ebola cases drop to lowest level in 7 months
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Battles remain in West Africa's fight against Ebola
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Fisherman finds prehistoric jaw
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Photographs 'show Islamist child soldiers'
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'Treasure hunter' arrested for gold scam
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Africa's biggest wind farm approved
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MH370 passengers, crew officially 'presumed dead'
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Who is Moaz al-Kassasbeh, captured by ISIS?
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ISIS Libya branch claims hotel attack
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'Planet-like' body has rings 20 times as big
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Fearing apocalypse, parents kill kids
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ISIS wants prisoner swap 'by sunset'
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Sydney siege inquest begins
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Murder trial for NFL's Aaron Hernandez
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Fossil may reveal new type of ancient human
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Police bullets killed Sydney victim
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Tennis: Williams, Sharapova face off
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Obama: Vote too close for Netanyahu visit
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Co-pilot was flying AirAsia jet
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Wednesday, January 28, 2015
What not to bring to U.S. Super Bowl
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Police: Mom cut kids' throats
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Grim wait for death-row Aussies
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Prisoner swaps -- bad but could be worse
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Quake hits off California
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Air pollution choking Asia
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Christmas tree role in fatal fire
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Report: Glitch focus of AirAsia probe
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Lucky draw to decide African Cup fates
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Ebola dad: Thought it was witchcraft
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Luis Figo: The man who could be King of Football
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Learn the A-Z of architecture
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Jordan rallies around pilot Moaz al-Kassasbeh
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Actor charged with voyeurism
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Inside minds of world's most powerful
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Why alleged Russian spy ring matters
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For ISIS, tough times as it seeks to regroup
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Boko Haram attacks again
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Website launched to counter jihadists
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Figo: I'll challenge Blatter
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ISIS Libya branch claims attack
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'Super Saturn' discovered
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Man charged in Craigslist killings
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Figo: I want to be FIFA chief
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Apocalypse-fear parents kill kids
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Violence grips Golan Heights
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'I'll take lashes for Saudi blogger'
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New York escapes worst of storm
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New Saudi King shakes court
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Fashion brand has lowly beginnings
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Obama: Netanyahu can't visit
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Girl, 8, saves rhinos with chocolates
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Now astronauts can sip espresso in space
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Mother cut kids' throats 'to quiet them'
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Georgia executes disabled man
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Opinion: Cumberbatch misspoke -- now let's get over it
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Hostages' families plead as ISIS deadline nears
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Who is Sajida al-Rishawi? And why does ISIS care?
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Convicted drug smuggler paints, waits for firing squad
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Your frequent flier miles are set to cost you more
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Snow storm buries New England
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Williams coasts into Aussie semi-finals
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New world's busiest airport is...
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43 students killed in mistaken identity case
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Tuesday, January 27, 2015
Obama defends 'balance' with Saudi
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French police arrest 5 in terror raid
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Inquiry opens in Russian spy's death
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Israel: Rockets hit Golan Heights
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'ISIS post' threatens hostages
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Execution set for U.S. disabled man
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Real Madrid defends under-age deals
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Bodies found in Craigslist case
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Japan mulls ISIS hostage strategy
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Execution set for U.S. disabled man
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Hebdo attacks shine spotlight on suburbs
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Drone video shows scale of Auschwitz camp
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5 held after French terror raid
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President defends relationship
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Israel: Rockets hit Golan Heights
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Inquiry opens into Russian spy's death
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Map: Death camps stretched from Netherlands to Poland
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Jokowi on Islam, democracy
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Obama visiting Saudi Arabia
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Blatter faces new rival for FIFA job
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Actor sorry for 'colored' remark
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Kurds 'take Kobani' from ISIS
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Greek F-16 crash kills 10
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Gruesome football banner shocks
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U.S. hits Yemen with drone
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Asteroid's moon seen in Earth flyby
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NYC blizzard in slow motion
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What you need to know about blizzard
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Gunmen attack Libya hotel
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Indonesia military ends QZ8501 hunt
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Ukraine wants war crimes probe
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Unseen photos of distant galaxies
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Obama calls for India reform
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Survivors of Auschwitz return
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Gift UK minister shouldn't have given
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Being well-dressed helped save him
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'Spies' puzzling activity in NYC
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Obama: Can be India's best partner
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PM: Greece is leaving austerity
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Facebook down; Twitter freaks
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Cozy visit marks 'defining partnership'
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White House drone pilot quizzed
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Forecasters: Worse is yet to come
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Castro supports talks with U.S.
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Nadal stunned at Aussie Open
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Snow flurry in pictures
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Monday, January 26, 2015
Bringing Broadway to China
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Rivers' lawsuit reveals 'incompetency'
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Philippines clashes kill dozens
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Newborn for sale for $7,000
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Raw grief at Ukraine graves
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Emma Watson's 'Beauty' role
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Pluto to get its first close-up
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Indonesia's president: Drugs and AirAsia
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Why was AirAsia jet the only one in trouble?
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Blatter faces new rival for FIFA job
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UK prime minister takes hoax call
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Kurds 'take Kobani' from ISIS
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Greek F16 crashes in Spain
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Footballer taunted with gruesome banner
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Spacey mentors Middle East talent
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How to catch a glimpse of asteroid flyby
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U.S. hits Yemen with drone strike
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Couple missing after Craigslist ad
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Millions in path of severe storm
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Ukraine: Russia steps up war of words
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Unseen photos of distant galaxies
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Argentina's Jewish community in despair
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Obama to Russia: Big countries don't bully
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Opinion: Syriza shows failure of 'cartel politics'
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Alexis Tsipras' grand promises for Greece
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Williams sisters set for showdown
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4-year old calls 911, saves pregnant mom
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Greece forms anti-austerity coalition government
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Algae lights up Hong Kong harbor
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Left-wing leader declares victory in Greek election
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ISIS: Swap terrorist for hostage
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What the hostage crisis means for Japan
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'Device' lands at White House
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Why Iran sanctions fight is a big deal
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Meet Nigeria's beauty queen
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