UK downgrade pressures reluctant Osborne to change course

LONDON (Reuters) - Britain's finance minister insisted on Saturday he would not change course after the loss of the country's 'AAA' credit rating but George Osborne is facing pressure to do just that as his bet on austerity falters ahead of the 2015 election.

Moody's dealt Britain its first sovereign rating downgrade on Friday, saying the $2.5 trillion economy faced years more sluggish growth and debt would continue to rise until 2016.

Economically the one-notch cut will have limited importance -- most of Europe, Japan and the United States have already suffered the same fate and Britain continues to borrow at historically low rates.

But politically it is toxic for Osborne who has repeatedly vowed to protect the top credit rating since the 2010 election campaign. The downgrade exposes him to opponents who say his failure to deliver economic growth is driving Prime Minister David Cameron towards electoral defeat.

Osborne said on Saturday the move by Moody's showed he was right to focus on restoring Britain to fiscal health, arguing that only by doing that will the conditions for growth be restored.

"I am absolutely determined to make sure we deal with our problems, to make sure that Britain stays the course, to make sure that it doesn't take from this credit rating the wrong message which is we should go and borrow a lot more," the 41-year-old Chancellor of the Exchequer said.

"I'm absolutely clear we're not going to do that."

For investors, the downgrade underscores Britain's predicament: a debt-ridden, stagnating economy which has kept bond yields low in large part thanks to the Bank of England becoming the world's biggest investor in UK government debt by buying it with newly printed money.

"Osborne no longer has any place to hide or anyone to blame," said David Blanchflower, who served on the Bank of England's interest rate setting committee from 2006 to 2009.

He said the minister should "stand up, be a man and accept responsibility for the worst recovery in 100 years" and, in a message on Twitter, suggested a swift cut to value-added tax, a labor tax holiday for workers under 25 and incentives for investment and hiring to kick start growth.

Osborne can take comfort from Moody's confidence that his austerity plan would eventually "reverse the UK's debt trajectory".

A Treasury official noted Moody's had given the UK's credit rating a stable outlook, meaning little chance of a further downgrade in the next 12-18 months. When the United States and France were downgraded, their outlooks remained negative.

But whether growth will return forcefully long enough before the 2015 election to allow voters to appreciate it is now highly uncertain.

Sterling fell by almost a cent to around $1.5160 after the downgrade, just off Thursday's fresh 2-1/2-year low. Analysts said they expected it to fall further on Monday.

Some of the Conservatives' Liberal Democrat coalition partners questioned the political judgment of attaching so much importance to Britain's AAA rating.

"This is a self-inflicted injury for George Osborne," said Matthew Oakeshott, a former Liberal Democrat Treasury spokesman. "To be fair, he was very green in 2009 ... He foolishly erected triple-A status as a virility symbol."

"BLEEDING THE PATIENT"

Cameron, who led his Conservative Party back to office as part of a coalition government after 13 years out of power, risks another year of stagnation and giving his opponents and open goal to aim at.

The Labor Party - which left the biggest peacetime deficit when it lost the 2010 election - called for Osborne's head.

"The medicine is not working so the Chancellor says increase the dose - that's crazy economics. It is like an 18th-century doctor bleeding a patient as they get sicker and sicker," said Ed Balls, the party's main spokesman on finance issues.

But people close to Britain's most powerful two politicians say they are completely aligned. Osborne led Cameron's bid for leadership of the Conservatives and ran the 2010 election campaign. There is little or no chance of him being sacrificed or being forced into a humiliating policy U-turn which would wreck his career.

"Osborne has lots of critics, both inside and outside the party, who are now going to be emboldened by this, but there is no coherent alternative," said Tim Montgomerie, editor of the influential ConservativeHome website.

Though Labor is about 10 percentage points ahead of Conservative Party in polls, surveys show voters trust Cameron and Osborne more than Labor's leader Ed Miliband.

TIME FOR A TWEAK?

Osborne originally gambled that by slashing spending, growth rates of between 2 and 3 percent would kick in from 2013.

But with Britain's banks still recovering from the financial crisis and many of its main trading partners in Europe stuck in recession, his debt targets will be missed. His room for more spending is limited as he tries to avoid pushing up yields on Britain's 1.29 trillion pounds ($1.97 trillion) of debt.

With government spending so restricted, many investors' hopes lie with the Bank of England. Its governor, Mervyn King, this month voted to restart government-bond buying. Although in the minority, his change of heart suggested the bank may be closer than expected to pursuing more stimulus.

If Osborne slows his debt reduction plans, he could upset bond investors and throw his deficit targets further off course.

"We should stick to the plan," said Kwasi Kwarteng, a Conservative lawmaker. "The prime minister would not want to be seen to be panicking, and he's committed to keeping George Osborne where he is."

"But we do also need to look at growth," said Kwarteng, who suggested cutting corporation tax and red tape.

Business lobby the Confederation of British Industry has called for more investment on infrastructure and housing to be funded by more cuts in day-to-day spending. It also expects the government to guarantee more private-sector projects.

Osborne has a chance in his annual budget next month to deliver such tweaks to policy. ($1 = 0.6551 British pounds)

(Additional reporting by Mohammed Abbas and William Schomberg. Editing by Mike Peacock)

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Football: Berbatov's magic moment sinks Stoke

LONDON: Fulham forward Dimitar Berbatov produced a moment of magic to end his side's poor run with a 1-0 win over Stoke at Craven Cottage on Saturday.

Berbatov marked his 200th Premier League appearance with his 85th goal in the English top-flight and it was one of the former Manchester United star's best as he netted a superb volley just before half-time.

Martin Jol's team still needed a second half penalty save from Mark Schwarzer, who kept out Jon Walters' effort, to clinch just their fourth win in 19 Premier League games.

Berbatov and Schwarzer's heroics lifted Fulham to 11th, nine points clear of the relegation zone, and continued the away-day misery for Stoke, who have won just one in their last 23 leagues games on their travels.

Fulham's first sight of goal fell to Berbatov after Sascha Riether's cross picked out the Bulgarian forward for a close-range volley that looped just over.

Bryan Ruiz had the ball in the net moments later but Fulham's celebrations were cut short as referee Lee Probert correctly ruled that the Costa Rican forward had used his hand to score.

Steven Nzonzi needed treatment after a collision with Berbatov left the Stoke midfielder with blood dripping from the bridge of his nose.

Nzonzi still seemed miffed following that incident and he was fortunate to escape with a booking after cuffing Ruiz around the head in an off-the-ball incident.

A ferocious free-kick from Fulham's Greek midfielder Giorgos Karagounis brought the best save of the half from Asmir Begovic.

Stoke sent on American midfielder Brek Shea for his debut when Matthew Etherington hobbled off with a back injury.

Jol's team pushed on and finally broke the deadlock in first half stoppage-time when a cross was only half cleared to Berbatov, who showed superb technique to lash a brilliant volley into the top corner of Begovic's goal.

Fulham defender Philippe Senderos almost gifted Stoke an equaliser immediately after the interval when his attempt to shepherd the ball back to Schwarzer allowed Peter Crouch to nip ahead of him and flick a shot that the Australian saved well.

Schwarzer came to Fulham's rescue again in the 54th minute after Dejagah conceded a penalty when he blocked Shea's cross with his raised arms.

Walters stepped up to take the spot-kick, but the Stoke striker has a poor record with penalties this season and his luck was out again as Schwarzer dived to his right to save.

- AFP/fa

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LulzSec double agent sentencing postponed

Hector Xavier Monsegur, aka "Sabu," will likely get a reduced sentence for signing a plea agreement and serving as an informant.

(Credit:
James Martin/CNET)

Hector Xavier Monsegur, better known by his nom de plume"Sabu," was slated to face sentencing in New York City today for his role hacking into public and private web sites as part of the hacktivists operating under the LulzSec label. All told, he faced a maximum time behind bars of 124 years associated with his guilty plea on ten counts of bank fraud and one count of identity theft.

But Monsegur, who subsequently worked as a double agent for the FBI, still awaits his fate. The authorities abruptly postponed his sentencing. No explanation was offered.

His cooperation with the authorities led to the March 2012 arrest. of several LulzSec members. Monsegur was later described in court documents as having "proactively" cooperated with the FBI as it built its case. Following his arrest, the Wall Street Journal reported that information supplied by Monsegur had helped the FBI stop over 300 planned hacks. It's widely believed that Monsegur will receive a reduced sentence for signing a plea agreement and serving as an informant.

The indictments against Monsegur pertain to hacks carried out against websites operated by the Tunisian, Algerian, Yemeni and Zimbabwe governments between December 2010 and May 2011. They also include the launching of distributed denial of service attacks on the United States Senate, PayPal, Visa, Mastercard, Bethesda Softworks,Fox News, the Chicago Tribune newspaper site, Sony Pictures Europe, Sony Music Entertainment, PBS, and Nintendo.

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Georgia executes man lawyers claimed was mentally ill

JACKSON, Ga. A 38-year-old inmate convicted of killing two college students in 1995 was executed in Georgia on Thursday, apologizing to the families of both victims before being injected at a state prison.

Andrew Allen Cook was pronounced dead at 11:22 p.m., about 14 minutes after he was injected with the sedative pentobarbital. He was the first inmate to be executed since the state changed its procedure in July from a three-drug combination to a single dose.

With his last words, he apologized to the families of Mercer University students Grant Patrick Hendrickson, 22, and Michele Lee Cartagena, 19, who were shot several times as they sat in a car at Lake Juliette, which is about 75 miles south of Atlanta. He said what he did was senseless.

"I'm sorry," Cook said as he was strapped to a gurney. "I'm not going to ask you to forgive me. I can't even do it myself."

He also thanked his family for "their support, for being with me and I'm sorry I took so much from you all."

The Georgia Appeals Court on Wednesday temporarily stayed Cook's execution to consider a challenge to the state's lethal injection procedure. But the Georgia Supreme Court lifted the stay Thursday and all other appeals were exhausted.

Cook's lawyers have argued at various stages in their appeals of his death sentence that he suffered from mental illness and was being treated for depression up to the time of his death.

Mary Hendrickson, the mother of one of the victims, recently told television station WMAZ-TV in Macon she's been waiting 18 years for justice.

"I think that's what it was: the devil's work," she said. "When all that is going on, I was just thinking to myself, 'Well, the devil is not going to win. He's not going to win over my heart. He is not going to win."'

The single-drug injection began at about 11:08 p.m. Cook blinked his eyes a few times, and his eyes soon got heavy. His chest was heaving for about two or three minutes as his eyes closed. Not too long after, two doctors examined him and nodded and Carl Humphrey, warden of the state prison in Jackson, pronounced him dead.

Corrections officials said Thursday evening that Cook had received visits from family earlier in the day and ate the last meal he had requested -- steak, a baked potato, potato wedges, fried shrimp, lemon meringue pie and soda.

A jury sentenced Cook to death after he was convicted in the January 2, 1995 slayings at Lake Juliette. Cook wasn't charged until more than two years later. He confessed to his father, a Macon FBI agent who ended up testifying at his son's trial.

The Georgia Bureau of Investigation reached out to John Cook in December 1995 because they were interested in speaking to his son. When he called his then-22-year-old son to tell him the GBI wanted to talk to him, he had no idea the younger man was considered a suspect.

"I said, 'Andy, the GBI is looking for you concerning the Lake Juliette homicide. Do you know anything about it?"' John Cook testified at his son's trial in March 1998. "He said, 'Daddy, I can't tell you. You're one of them. ... You're a cop."'

Eventually, Andrew Cook told his father that he knew about the slayings, that he was there and that he knew who shot the couple, John Cook recalled.

"I just felt like the world was crashing in on me. But I felt maybe he was there and just saw what happened," he said. "I then asked, 'Did you shoot them?'

"After a pause on the phone, he said, 'Yes."'

As a law enforcement officer, John Cook said he was forced to call his supervisor and contacted the Monroe County sheriff.

At the trial, as he walked away from the stand, the distraught father mouthed "I'm sorry" to the victims' families who were sitting on the front row of the courtroom. Several members of both families acknowledged his apology.

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Oscar Pistorius Granted Bail in Murder Case

Oscar Pistorius was granted bail today in a South African court, meaning he can be released from jail for the six to eight months before his trial for the allegedly premeditated killing of his girlfriend Reeva Steenkamp.

Magistrate Desmond Nair, in reading his lengthy decision, said, "The issue before me is whether this accused, being who is and the assets he has [here], would seek to duck and dive all over the world."
His conclusion:
"I cannot find that he is a flight risk."

Nair said, "The accused has made a case to be released on bail."

PHOTOS: Paralympics Champion Charged in Killing

The judge also said he had to weigh whether Pistorius would be a danger to others. He noted that Pistorius has been accused of using foul language against people in arguments and once threatened to break someone's legs, but he said that was different from someone with an arrest record of violence.

"I appreciate that a person is dead, but I don't think that is enough," he said.

Nair also said he could not be influenced by the public's "shock and outrage" if Pistorius is released.

A member of Pistorius' defense team told ABC News, "he is going to be released today."

Despite the ruling, prosecutors displayed confidence, with one of them emerging from the courthouse today to say, "We still believe we have the evidence to convict Oscar Pistorius."

The court set bail at about $113,000 (1 million rand) and June 4 as the date for Pistorius' next court appearance.

The other bail conditions are: Pistorius cannot leave the country; he must hand over his passports; he cannot return to his home as long as it's an active crime scene; he needs permission to leave the Pretoria area; he must visit a police station on a daily basis and be available to a probation officer at all times via cellphone; he is not allowed any communication with prosecution witnesses; he cannot drink alcohol; and he must relinquish his firearms.

"Do you understand?" the magistrate asked him.

"Yes, sir," Pistorius replied.

Alexander Joe/AFP/Getty Images

'Blade Runner' Shocker: Lead Detective Replaced Watch Video

Speaking for the family, Arnold Pistorius, the Olympian's uncle, said, "Although we are obviously relieved that Oscar has been granted bail, this is still a very sad time for the family of Reeva and for us.

"We are grateful that the Magistrate recognized the validity and strength of our application. As the family, we are convinced that Oscar's version of what happened on that terrible night will prove to be true."

The judge's ruling came on the fourth and final day of the bail hearing for Pistorius, the Olympian accused of murdering his girlfriend on Valentine's Day.

Pistorius, who gained global acclaim for racing at the 2012 London Olympics, shot his model-girlfriend through a closed bathroom. He says he killed Reeva Steenkamp accidentally, but prosecutors alleged that he took a moment to put on his prosthetic legs, indicating that he thought out and planned to kill Steenkamp when he shot her three times through the bathroom door.

Pistorius sobbed today in court. Barry Roux, his defense attorney, said the prosecution misinterpreted the assigning of intent, meaning that the runner's intent to shoot at a supposed intruder in his home cannot be transferred to someone else who was shot -- in this case, Steenkamp.

"He did not want to kill Reeva," Roux told the court.

FULL COVERAGE: Oscar Pistorius Case

When Magistrate Nair, who overheard the bail hearing, asked Roux what the charges should be if Pistorius intended to kill an intruder, the defense attorney responded that he should be charged with culpable homicide.

Culpable homicide is defined in South Africa as "the unlawful negligent killing of a human being."

Roux also made light of the prosecution's argument that Pistorius is a flight risk, saying that every time the double-amputee goes through airport security, it causes a commotion. He said that Pistorius' legs need constant maintenance and he needs medical attention for his stumps.

The prosecution argued today that the onus was on Pistorius to provide his version of events, and his version was improbable.

Prosecutor Gerrie Nel also spoke of Pistorius' fame and his disability, even relating him to Wikipedia founder Julian Assange, who is now confined to Ecuador's London Embassy, where he has been granted political asylum.
"[Assange's] facial features are as well known as Mr. Pistorius' prostheses," Nel said.

Nel argued that Pistorius' prostheses do not set him apart, stating that it's no different to any other feature, and the court cannot be seen to treat people with disabilities accused of a crime, or famous people accused of crime, any differently.

Pistorius has said that in the early hours of Feb. 14 he was closing his balcony doors when he heard a noise from the bathroom. Fearing an intruder, and without his prosthetic legs on, he grabbed a gun from under his bed and fired through the closed bathroom door, he told the court.

But prosecutors say that's implausible, that the gun's holster was found under the side of the bed where Steenkamp slept, and that Pistorius would have seen she wasn't there. Prosecutors also say the angle at which the shots were fired shows Pistorius was already wearing his prosthetics when he fired.

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South Africa's Pistorius goes free on $113,000 bail

PRETORIA (Reuters) - A South African court granted bail on Friday to Oscar Pistorius, charged with the murder of his girlfriend on Valentine's Day, after his lawyers successfully argued the "Blade Runner" was too famous to flee justice.

The decision by Magistrate Desmond Nair drew cheers from the Paralympics star's family and supporters. Pistorius himself was unmoved, in marked contrast to the week-long hearing, when he repeatedly broke down in tears.

Nair set bail at 1 million rand ($113,000) and postponed the case until June 4. Pistorius would be released only when the court received 100,000 rand in cash, he added.

Less than an hour later, a silver Land Rover left the court compound, Pistorius visible through the tinted windows sitting in the back seat in the dark suit and tie he wore in court.

The car then sped off through the streets of the capital, pursued by members of the media on motorcycles, before it entered his uncle Arnold's home in the plush Pretoria suburb of Waterkloof.

At least five private security guards stood outside the concrete walls, keeping reporters at bay.

Under the terms of his bail, Pistorius, 26, was also ordered to hand over firearms and his two South African passports, avoid his home and all witnesses, report to a police station twice a week and abstain from drinking alcohol.

The decision followed a week of dramatic testimony about how the athlete shot dead model and law graduate Reeva Steenkamp at his luxury home near Pretoria in the early hours of February 14.

Prosecutors said Pistorius committed premeditated murder when he fired four shots into a locked toilet door, hitting his girlfriend cowering on the other side. Steenkamp, 29, suffered gunshot wounds to her head, hip and arm.

Pistorius said the killing was a tragic mistake, saying he had mistaken Steenkamp for an intruder - a possibility in crime-ridden South Africa - and opened fire in a blind panic.

However, in delivering his nearly two-hour bail ruling, Nair said there were a number of "improbabilities" in Pistorius's version of events, read out to the court in an affidavit by his lawyer, Barry Roux.

"I have difficulty in appreciating why the accused would not seek to ascertain who exactly was in the toilet," Nair said. "I also have difficulty in appreciating why the deceased would not have screamed back from the toilet."

By local standards, the bail conditions are onerous but it remains to be seen if they appease opposition to the decision from groups campaigning against the violence against women that is endemic in South Africa.

"We are saddened because women are being killed in this country," said Jacqui Mofokeng, a spokeswoman for the ruling African National Congress' Women's League, whose members stood outside the court this week with banners saying "Rot in jail".

TOO FAMOUS TO RUN

However, Nair said he made his decision in the "interests of justice" and argued that the prosecution, who suffered a setback when the lead investigator withered under cross-examination by Roux, failed to show Pistorius was either a flight risk or a threat to the public.

Roux stressed the Olympic and Paralympics runner's global fame made it impossible for him to evade justice by skipping bail and leaving the country.

"He can never go anywhere unnoticed," Roux told the court.

Pistorius, whose lower legs were amputated in infancy forcing him to race on carbon fiber "blades", faces life in prison if convicted of premeditated murder.

Prosecutors had portrayed him as a cold-blooded killer and said they were confident that their case, which will have to rely heavily on forensics and witnesses who said they heard shouting before the shots, would stand up to scrutiny at trial.

"We are going to make sure that we get enough evidence to get through this case during trial time," a spokesman for the National Prosecuting Authority told reporters.

In court, lead prosecutor Gerrie Nel was scornful of Pistorius's inability to contain his emotions. "I shoot and I think my career is over and I cry. I come to court and I cry because I feel sorry for myself," Nel said.

"DEEPLY IN LOVE"

In his affidavit, Pistorius said he was "deeply in love" with Steenkamp, leading Roux to stress his client had no motive for the killing.

Pistorius contends he reached for a 9-mm pistol under his bed because he felt particularly vulnerable without his prosthetic limbs.

According to police, witnesses heard shouting, gunshots and screams from the athlete's home, which sits in the heart of a gated community surrounded by 3-m- (yard-) high stone walls topped with an electric fence.

In a magazine interview a week before her death, published on Friday, Steenkamp spoke about her three-month relationship with the runner, who won global fame last year when he reached the semi-final of the 400 meters in the London Olympics despite having no lower legs.

"I absolutely adore Oscar. I respect and admire him so much," she told celebrity gossip magazine Heat. "I don't want anything to come in the way of his career."

Police pulled their lead detective off the case on Thursday after it was revealed he himself faces attempted murder charges for shooting at a minibus. He has been replaced by South Africa's top detective.

Pistorius's arrest stunned the millions around the world who saw him as an inspiring example of triumph over adversity.

But the impact was greatest in South Africa, where he was seen as a rare hero for both blacks and whites, transcending the racial divides that persist 19 years after the end of apartheid.

(Writing by Ed Cropley; Editing by Michael Roddy)

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Jailed Tymoshenko fit to leave hospital: ministry

KIEV: Ukraine's jailed former prime minister Yulia Tymoshenko is now fit to leave the civilian hospital where she has spent the last nine months with back problems, the health ministry said Friday, paving the way for her return to prison.

A medical commission "has concluded that the patient Y. Tymoshenko no longer needs further treatment or rehabilitation in hospital," the ministry said in a statement.

Tymoshenko, 52, has been in prison since August 2011 but was moved in May last year from her Kharkiv prison to hospital because she was in acute pain from a herniated disc.

The charismatic figurehead of the 2004 Orange Revolution was convicted of abuse of power and jailed for seven years in 2011 after losing a 2010 presidential race to Viktor Yanukovych.

She is currently on trial on separate charges of fraud and tax evasion and was also charged in January with ordering the 1996 gangland-style shooting of a lawmaker.

Her imprisonment has provoked a serious rift between Ukraine and the European Union, which has called the charges against her politically motivated.

- AFP/jc

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Winter storm brings heavy snow to Midwest

Updated at 12:37 p.m. ET

ST. LOUIS Blinding snow, at times accompanied by thunder and lightning, bombarded much of the nation's midsection Thursday, causing whiteout conditions, making major roadways all but impassable and shutting down schools and state legislatures.

Kansas was the epicenter of the winter storm, with parts of Wichita buried under 13 inches of still-falling snow, but winter storm warnings stretched eastern Colorado through Illinois. Freezing rain and sleet were forecast for southern Missouri, southern Illinois and Arkansas. St. Louis was expected to get all of the above — a treacherous mix of snow, sleet and freezing rain.

CBS News weather consultant David Bernard reported on "CBS This Morning" Thursday that very heavy snow squalls were moving into Kansas City, Mo., where it looks like it's going to snow hard for about the entire day.

Forecast models show the snowstorm pivoting from the southwest part of Kansas to the northeast throughout the morning and afternoon hours, so Wichita would see improvement late Thursday, but northeastern Kansas and most of Missouri would be looking at heavy snowfall until at least Thursday night, Bernard reports.

Several accidents were blamed on icy and slushy roadways, including a wreck in Oklahoma that killed a teenager Wednesday. Most schools in Kansas and Missouri, and many in neighboring states, were closed. Legislatures shut down early in Kansas, Missouri, Arkansas, Nebraska and Iowa.

By midmorning Thursday, the snowfall was so heavy that Kansas City International Airport shut down. About 90 flights were also cancelled at Lambert Airport in St. Louis.

"Thundersnow" accompanied the winter storm in parts of Kansas and Missouri, which National Weather Service meteorologist Scott Truett said is the result of an unstable air mass, much like a thunderstorm.

"Instead of pouring rain, it's pouring snow," Truett said. And pouring was a sound description, with snow falling at a rate of 1 1/2 to 2 inches per hour in some spots.

While heavy in nature, the snow itself is powdery, said weather service meteorologist Suzanna Sortin. She said the Wichita area had received between 11 and 13 inches of snow by midmorning, and places like Salina, Russell and Great Bend were expected to get up to 18 inches of snow.

With that in mind, Kansas transportation officials — and even the governor — urged people to simply stay home. Drivers were particularly warned away from the Kansas Turnpike, as whiteout conditions meant low visibility for the length of the turnpike, from Oklahoma to Kansas City. Interstate 70, which runs the length of Kansas, was also snow-packed and icy.

Kansas Gov. Sam Brownback closed executive offices, except for essential personnel.

"Common sense is a good thing, and we'll make it through it," Brownback said.

Some travelers gave up, filling hotels rather than skating across dangerous roadways.

At the Econo Lodge in WaKeeney, Kan., assistant manager Michael Tidball said the 48-room hotel was full by 10 p.m. Wednesday and that most guests were opting to stay an extra day. He said travelers reported that snow was freezing on their windshields faster than wipers could keep them clean.

The blowing snow didn't stop everyone. Jesse Landin, feedlot manager at McClymont Feedyard in south-central Nebraska, was out early Thursday clearing a path with his tractor so trucks could put down feed for 11,000 head of cattle, which remained outside.

"They can handle it," Landin said of the cattle. "They got good winter hair coats."

Near the Nebraska-Kansas border, as much as 8 inches fell overnight, while western Nebraska saw about half of that amount, National Weather Service forecaster Shawn Jacobs said.

Some parts of Oklahoma also had up to 8 inches of snow by Thursday morning, and the weather caused a fatal wreck Wednesday. The Oklahoma Highway Patrol said 18-year-old Cody Alexander of Alex, Okla., died when his pickup truck skidded on a slushy state highway into oncoming traffic and struck a truck.

In northern Arkansas, a school bus crashed Wednesday on a steep, snowy country road, leaving three students and the driver with minor injuries.

The weather service warned that freezing rain could lead to a half-inch or more of ice accumulating Thursday in central and northern Arkansas. The Storm Prediction Center in Norman, Okla., said "significant ice accumulations" are expected in far northern Arkansas.

Missouri Gov. Jay Nixon declared a state of emergency Thursday morning and activated the State Emergency Operations Center. The declaration allows state agencies to coordinate directly with cities and counties to provide emergency services. The Missouri Department of Transportation said Interstate 44 near Springfield was completely covered with ice Thursday morning, and traffic was moving very slow.

In Jefferson City, Mo., off-duty police sergeant Randy Werner had been perched atop a hotel for more than 24 hours as a publicity stunt for a charitable fundraiser.

As large blowing snowflakes pelted him in the face Thursday morning, Werner defiantly declared: "The weather's not bothering me, I can assure you." He then acknowledged that was a lie.

"It's blustery," he said. Werner planned to cut his camp out short, having raised less than a third of his goal.

The St. Louis region prepared with some uncertainty. Depending on the temperature and the trajectory of the storm, St. Louis could get snow, freezing rain, ice, sleet or all or some of the above. Crews were hoping to spread enough salt to keep at least the major roadways moving.

National Weather Service meteorologist Jayson Gosselin said precipitation is generally expected to drop off as the storm pushes east. Chicago and parts of Indiana, he said, could get about 2 inches of snow and some sleet.

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3 Dead in Rolling Gun Battle on Vegas Strip

A drive-by shooting on the Las Vegas strip early this morning by the occupants of a Range Rover SUV, who shot at the occupants of a Maserati, caused a multi-car accident and car explosion that left three dead.

Police said that they believe a group of men riding in a black Range Rover Sport SUV pulled up alongside a Maserati around 4:20 a.m. today and fired shots into the car, striking the driver and passenger, according to Officer Jose Hernandez of the Las Vegas Metropolitan police department.

The Maserati then swerved through an intersection, hitting at least four other cars. One car that was struck, a taxi with a driver and passenger in it, caught on fire and burst into flames, trapping both occupants, Hernandez said.

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The SUV then fled the scene, according to cops.

The driver of the Maserati died from his gunshot wounds at University Medical Center shortly after the shooting, according to Sgt. John Sheahan.

The driver and passenger of the taxi both died in the car fire.

At least three individuals, including the passenger of the Maserati, were injured during the shooting and car crashes and are being treated at UMC hospital.

Police are scouring surveillance video from the area, including from the strip's major casinos, to try and identify the Range Rover and its occupants, according to police.

They do not yet know why the Range Rovers' occupants fired shots at the Maserati or whether the cars had local plates or were from out of state.

No bystanders were hit by gunfire, Hernandez said.

"We're currently looking for a black Range Rover Sport, with large black rims and some sort of dealership advertising or advertisement plates," Hernandez said. "This is an armed and dangerous vehicle."

The Las Vegas Convention and Visitors Authority had no immediate comment about the safety of tourists in the wake of the shooting today.

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Falling energy prices curb US inflation

WASHINGTON: US consumer prices were flat for a second month in a row in January, held down by a sharp drop in gasoline and fuel oil prices, government data released Thursday showed.

The Labour Department said its consumer price index was unchanged, while core CPI, excluding food and energy, rose 0.3 per cent.

The energy sub-index fell 1.7 per cent, its third consecutive decline, led by 3.0 per cent drops in prices for gasoline and fuel oil that offset a 1.1 per cent rise in electricity costs.

Food prices were unchanged after inching up 0.2 per cent in the prior three months.

In the overall CPI, clothing was the strongest price gainer, up 0.8 per cent.

The data underscored continued weak inflationary pressures in the sluggish economy, which contracted 0.1 per cent in the fourth quarter of 2012 despite massive stimulus from the Federal Reserve.

Year-over-year, CPI slowed for a third straight month, rising 1.6 per cent in January, its lowest rise in six months. In January 2012, CPI was up 2.9 per cent from the year-ago month.

Core CPI was up 1.9 per cent from a year ago, driven by a 3.8 per cent jump in airline fares and a 3.1 per cent rise in medical care costs.

"The year/year gain has been hovering around the two per cent mark for the past seven months, and shouldn't worry Fed officials too much," said Jennifer Lee of BMO Capital Markets.

- AFP/fa

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