Keppel Corp's net profit falls 22% on-year in Q4






SINGAPORE: Falling margins from building oil rigs has hit the bottomline of Keppel Corp.

Net profit for the world's leading rig builder fell 22 per cent on-year to S$305 million in the fourth quarter last year.

Still, full year profit for the conglomerate came in 15 per cent to S$2.24 billion.

Despite lower net profit in the three months ended Dec 31, Keppel Corp still declared a final dividend of 27 cents per share.

As part of its 45th anniversary, Keppel Corp is handing out more goodies to its shareholders.

The company has proposed to distribute one Keppel REIT unit for every five Keppel Corp shares.

That is about 27.4 cents per share based on Keppel REIT's closing price of S$1.37 on Thursday.

Together with the interim dividend of 18 cents, total distribution for 2012 will be 72.4 cents per share.

Keppel Corp said the lower net profit was partly due to lower contributions from its offshore and marine unit.

Offshore and Marine's contribution was 12 per cent lower from a higher base in 2011 when margins were at record highs. It contributes to half of Keppel Corp's net profits.

"Keen rivalry from Chinese and Korean yards have suppressed prices and squeezed margins on newbuilds," said Choo Chiau Beng, chief executive officer at Keppel Corp. "In 2013, we will be completing a record of 22 newbuild units."

Analysts remained upbeat of Keppel's prospects going forward.

They say their financial results still outperformed market expectations.

Keppel Corp expects crude oil prices to stay above US$100 per barrel, supporting the need for more global exploration and production.

But global challenges like the slower US economy and the eurozone crisis from last year will continue to pose uncertainties for Keppel Corp's business.

Keppel Corp's property arm, led by the listed Keppel Land, boosted the group's earnings.

Net profit for the property division was 2.5 times higher than in 2011, offsetting the lower earnings from business in the offshore and marine, and infrastructure.

But Keppel Corp does not expect its property arm to perform better this year.

This is because recognition from sales of completed units at its development Reflections at Keppel Bay is expected to be lower this financial year.

- CNA/xq



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North Korea makes new threats against U.S.


























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STORY HIGHLIGHTS


  • NEW: North Korea is upset by a recent U.N. security council resolution, an analyst says

  • Pyongyang says it plans a new nuclear test and further long-range rocket launches

  • These are part of an "all-out action" targeting the U.S., it says

  • North Korea has conducted two previous nuclear tests, in 2006 and 2009




Seoul, South Korea (CNN) -- North Korea said Thursday that it plans to carry out a new nuclear test and more long-range rocket launches, all of which it said are a part of a new phase of confrontation with the United States.


The North's National Defense Commission said the moves would feed into an "upcoming all-out action" that would target the United States, "the sworn enemy of the Korean people."


Read more: U.N. Security Council slams North Korea, expands sanctions


Carried by the state media, the comments are the latest defiant flourish from the reclusive North Korean regime, whose young leader Kim Jong Un has upheld his father's policy of pursuing a military deterrent and shrugging off international pressure.


The defense commission statement follows a United Nations Security Council resolution on Tuesday that the United States pushed for, condemning a recent recent rocket launch by North Korea and expanded existing sanctions.










Read more: North Korea silences doubters, raises fears with rocket launch


The North's angry statement "should have been the expected outcome" from the U.N. decision, said Daniel Pinkston, senior analyst for the International Crisis Group covering Northeast Asia.


"I think they are completely outraged and insulted by it," he said.


Read more: N. Korea's launch causes worries about nukes, Iran and the Pacific


North Korea, which often issues bellicose statements in its state media, said Thursday that it rejected all Security Council resolutions concerning it.


It described this week's resolution as "the most dangerous phase of the hostile policy toward the DPRK," using the abbreviated version of its official name, the Democratic People's Republic of Korea.


Read more: U.S. official: North Korea likely deceived U.S., allies before launching rocket


Analyst: Threat meant as a deterrence


The threats toward the United States, a constant theme in the North's propaganda, have more to do with deterrence than a desire for full conflict, Pinkston said.


"I don't believe they have the capability, the intention or the will to invade or destroy the United States," he said. "They wish to deter interference from the U.S. or any outside powers."


Read more: North Korea's rocket launches cost $1.3 billion


North Korea's successful rocket launch last month nonetheless changed the strategic calculations for the United States, showing that the North's missile program is advancing despite an array of heavy sanctions imposed on it.


Analysts say it still has a lot of work to do to master the technology necessary to mount a nuclear warhead on missile or accurately target it.


Read more: South Korean officials: North Korean rocket could hit U.S. mainland


At the same time, Pyongyang has been hinting for a while that a new nuclear test could be in the cards.


Just before the North sent out its latest hostile statement Thursday, a U.S. State Department official was telling reporters in Seoul that Washington hoped that Pyongyang wouldn't go ahead.


Read more: Huge crowds gather in North Korean capital to celebrate rocket launch


"We think that that would be a mistake, obviously," said Glyn Davies, the U.S. special envoy on North Korea. "We call on North Korea, as does the entire international community, not to engage in any further provocations."


North Korea has carried out two previous nuclear tests, in 2006 and 2009, both of which were condemned by the U.N.


Pyongyang didn't say Thursday when exactly it would carry out a third test, but it could happen "at any time," according to Pinkston.


He said that it was hard for anybody outside the North Korean nuclear sector to know if the country is technically ready to carry out the test, but that politically, "it seems an appropriate time."


Demands unlikely to sway North


South Korean defense officials said last year that they believed the North had been in a position to carry out a new test whenever leaders in Pyongyang gave the green light.


North Korea's nuclear program is "an element of threat to peace not only for Northeast Asia but also for the world," Park Soo-jin, deputy spokeswoman for the South Korean Unification Ministry said Thursday.


"North Korea should immediately stop its nuclear test and other provocation and should choose a different path by cooperating with the international community," Park said.


That appears unlikely at this stage, though.


After a failed long-range rocket launch in April, North Korea ignored international condemnation and carried out a second attempt last month. That one succeeded in putting a satellite in orbit, Pyongyang's stated objective.


But the launch was widely considered to be a test of ballistic missile technology. And it remains unclear if the satellite, which the North insists is for peaceful purposes, is functional.


Both North Korea's previous nuclear tests took place weeks or months after long-range rocket launches.


Those tests were carried out under the rule Kim Jong Il, the father of the current leader, and the man who channeled huge amounts of money into North Korea's nuclear and missile development programs.


Kim Jong Il died in December 2011 after 17 years in power, during which the North Korean people became increasingly impoverished and malnourished.


Economically, the country relies heavily on trade with its major ally, China.


CNN's K.J. Kwon reported from Seoul, and Jethro Mullen from Hong Kong. CNN's David Hawley in Seoul contributed to this report.






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Polar air mass keeps icy grip on Northeast

PORTLAND, Maine Polar air settled in earnest over the Northeast after trekking through the Midwest, grinding trains to a halt, bursting pipes and bringing further misery to folks still trying to recover from superstorm Sandy.

The coldest temperatures were expected to continue Thursday, after which conditions should slowly moderate before returning to normal, said John Koch, a meteorologist with the National Weather Service regional headquarters in Bohemia, N.Y. For the most part, temperatures have been around 10 to 15 degrees below normal, with windy conditions making it feel colder, he said.

The Canadian air mass that arrived in the Upper Midwest over the weekend prompted the National Weather Service to issue wind chill warnings across upstate New York and northern New England.

In a storm-damaged neighborhood near the beach on New York City's Staten Island, people who haven't had heat in their homes since the late October storm took refuge in tents set up by aid workers. The tents were equipped with propane heaters, which were barely keeping up with the cold, and workers were providing sleeping bags and blankets for warmth.

The temperature was expected to dip to around 11 degrees before dawn Thursday.




Play Video


Sandy victims left in the cold



Anthony Gambino has been sleeping in one of the tents off and on since Sandy severely damaged his home, CBS News correspondent Elaine Quijano reports. The former mechanic lives on disability.

"Next week they're talking about getting warmer, but let's face it, we're going into February," said Gambino. "February is unpredictable. March is unpredictable. We may get worse. We may get better. Who knows? Right now, we gotta deal with the moment, and the moment is bad."

The University of South Dakota in Vermillion offered a third consecutive night of free hotel rooms to 500 students who had to leave when a water pipe froze over an electrical room and damaged components. The cold also caused circuit problems on the Metro-North railroad serving areas north of New York City, creating rush-hour delays that were resolved by late Wednesday morning.

In northern New Hampshire, a man who crashed his snowmobile while going over a hill on Tuesday and spent a "bitterly cold night" injured and alone on a trail died on Wednesday, the state's Fish and Game Department said. Friends who went looking for John Arsenault, of Shelburne, when he didn't show up for work found him unconscious Wednesday morning, and he died later at a hospital, authorities said.

In Pennsylvania, officials at a park on Lake Erie warned visitors to stay off hollow "ice dunes" forming along the shore because of the danger of frigid water underneath. A ski resort in New Hampshire shut down Wednesday because of unsafe ski conditions: a predicted wind chill of 48 degrees below zero.

In northern Maine, the temperature dipped to as low as 36 below zero Wednesday morning. The weather service was calling for wind chills as low as minus 45.

Keith Pelletier, the owner of Dolly's Restaurant in Frenchville, said his customers were dressed in multiple layers of clothing and keeping their cars running in the parking lot while eating lunch. It was so cold that even the snowmobilers were staying home, he said.

"You take the wind chill at 39 below and take a snowmobile going 50 mph, and you're about double that," he said. "That's pretty cold."

For Anthony Cavallo, the cold was just another in a litany of big and small aggravations that began when superstorm Sandy swept through his Union Beach, N.J., neighborhood and flooded his one-story house with 4 1/2 feet of water.

Still waiting for the go-ahead to rebuild, Cavallo and his family have been living in a trailer they purchased once it became clear they couldn't afford to rent.

Wednesday's frigid temperatures temporarily froze the trailer's pipes, which Cavallo's 14-year-old daughter discovered when she tried to take a shower at 4:30 a.m. Cavallo spent the morning thawing out the pipes and stuffing hay under the trailer to help insulate them.

"Every day it's something, whether it's frozen pipes or getting jerked around for two months by insurance companies," the 48-year-old security system installer said. "I just kind of want to wake up one day and have no surprises."

In New York City, food vendor Bashir Babury contended with bone-numbing cold when he set up his cart selling coffee, bagels and pastries at 3 a.m. Wednesday. On the coldest of days, he wears layers of clothing and cranks up a small propane heater inside his cart.

"I put on two, three socks, I have good boots and two, three jackets," he said. "A hat, gloves, but when I'm working I can't wear gloves."

A little cold air couldn't keep Jo Goodwin, of Bridgewater, N.H., off the slopes at Sugarloaf ski resort in Carrabassett Valley, Maine, where she was skiing Wednesday with her husband and her sister. The snow conditions were great, and there were no lift lines.

To keep warm, she uses a toe warmer, a hand warmer, a face mask, extra underwear and an extra wool sweater. She was told the wind chill was minus 30 midway up the mountain and 50 below zero near the top.

"Sometimes," she said, "it's better not to know."

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Exterminator Charged in Pa. Doctor's Murder













An exterminator named Joseph Smith was arrested and charged today in the strangling and burning death of Philadelphia pediatrician Melissa Ketunuti.


Smith, 36, had been sent to Ketunuti's home on a service call where the two got into "some kind of argument" in Ketunuti's basement on Monday, Capt. James Clark of the Philadelphia police department said this morning.


"At her home they got into an argument. It went terribly wrong. He struck her, and knocked her to the ground," Clark said. "Immediately he jumped on top of her, started strangling her. She passed out, and then he set her body on fire."


Clark said Smith burned the woman's body "to hide evidence like DNA." He said "at some point, he bound her up." The doctor was found with her hands and feet tied behind her back.


The captain said that before today's arrest Smith's record consisted of only "minor traffic offenses."








Pa. Doctor Killing: Person of Interest in Custody Watch Video











Philadelphia Doctor's Murder Leaves Police Baffled Watch Video





Police received a call from Ketunuti's dog-walker about the house fire around 12:30 p.m. Monday, and once inside found Ketunuti with her hands and feet bound. They believe Smith hit her and strangled her with a rope, causing her to pass out, and then bound her body and set fire to it in order to destroy evidence, including DNA evidence.


Ketunuti, 35, was fully clothed and police do not believe she was sexually assaulted.


She was a doctor at Children's Hospital of Philadelphia and had lived alone in the Graduate Hospital neighborhood of the city for about three years.


Clark said that homicide detectives scoured the neighborhood for surveillance videos from nearby stores and businesses, and through the video identified the suspect.


Smith was spotted on video getting out of the vehicle and following Ketunuti to her home. The man left her home after an hour and was seen on video circling her home.


Detectives drove to Clark's home in Levittown, Pa., outside of Philadelphia where he lives with a girlfriend and her child, on Wednesday night and brought him back to the Philadelphia police station.


A silver Ford truck was towed from Smith's home, which was the same truck spotted on surveillance video Monday in Ketunuti's neighborhood, sources told ABC News affiliate WPVI.


There, he gave statements that led police to charge him with the murders, Clark said.


Smith will face charges of murder, arson, and abuse of a corpse.


Ketunuti's hospital issued a statement Tuesday that she was "a warm, caring, earnest, bright young woman with her whole future ahead of her," adding that she will be deeply missed.


"[She was] super pleasant, really nice," one neighbor said. "Just super friendly."



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2013 could be 'climate game-changer'




An ice sculpture entitled 'Minimum Monument' by Brazilian artist Nele Azevedo outside Berlin's Concert Hall, September 2, 2009.




STORY HIGHLIGHTS


  • The "neglected" risk of climate change seems to be rising to the top of leaders' agendas

  • Extreme weather events are costing the global economy billions of dollars each year

  • Gas can be an important bridge to a lower carbon future but it's not the answer

  • More investment in renewable energy is needed, with fewer risks




Editor's note: Andrew Steer is President and CEO of the World Resources Institute, a think tank that works with governments, businesses and civil society to find sustainable solutions to environmental and development challenges.


(CNN) -- As leaders gather for the World Economic Forum in Davos, signs of economic hope are upon us. The global economy is on the mend. Worldwide, the middle class is expanding by an estimated 100 million per year. And the quality of life for millions in Asia and Africa is growing at an unprecedented pace.


Threats abound, of course. One neglected risk -- climate change -- appears to at last be rising to the top of agendas in business and political circles. When the World Economic Forum recently asked 1,000 leaders from industry, government, academia, and civil society to rank risks over the coming decade for the Global Risks 2013 report, climate change was in the top three. And in his second inaugural address, President Obama identified climate change as a major priority for his Administration.



Andrew Steer

Andrew Steer



For good reason: last year was the hottest year on record for the continental United States, and records for extreme weather events were broken around the world. We are seeing more droughts, wildfires, and rising seas. The current U.S. drought will wipe out approximately 1% of the U.S. GDP and is on course to be the costliest natural disaster in U.S. history. Damage from Hurricane Sandy will cost another 0.5% of GDP. And a recent study found that the cost of climate change is about $1.2 trillion per year globally, or 1.6% of global GDP.


Shifting to low-carbon energy sources is critical to mitigating climate change's impacts. Today's global energy mix is changing rapidly, but is it heading in the right direction?


Coal is the greatest driver of carbon dioxide emissions from energy, accounting for more than 40% of the total worldwide. Although coal demand is falling in the United States -- with 55 coal-powered plants closed in the past year -- it's growing globally. The World Resources Institute (WRI) recently identified 1,200 proposed new coal plants around the world. And last year, the United States hit a record-high level of coal exports—arguably transferring U.S. emissions abroad.










Meanwhile, shale gas is booming. Production in the United States has increased nearly tenfold since 2005, and China, India, Argentina, and many others have huge potential reserves. This development can be an economic blessing in many regions, and, because carbon emissions of shale gas are roughly half those of coal, it can help us get onto a lower carbon growth path.


However, while gas is an important bridge to a low carbon future—and can be a component of such a future—it can't get us fully to where we need to be. Greenhouse gas emissions in industrial countries need to fall by 80-90% by 2050 to prevent climate change's most disastrous impacts. And there is evidence that gas is crowding out renewables.


Renewable energy -- especially solar and wind power -- are clear winners when it comes to reducing emissions. Unfortunately, despite falling prices, the financial markets remain largely risk-averse. Many investors are less willing to finance renewable power. As a result of this mindset, along with policy uncertainty and the proliferation of low-cost gas, renewable energy investment dropped 11%, to $268 billion, last year.


What do we need to get on track?



Incentivizing renewable energy investment


Currently, more than 100 countries have renewable energy targets, more than 40 developing nations have introduced feed-in tariffs, and countries from Saudi Arabia to South Africa are making big bets on renewables as a growth market. Many countries are also exploring carbon-trading markets, including the EU, South Korea, and Australia. This year, China launched pilot trading projects in five cities and two provinces, with a goal of a national program by 2015.


Removing market barriers


Despite growing demand for renewable energy from many companies, this demand often remains unmet due to numerous regulatory, financial, and psychological barriers in the marketplace.


In an effort to address these, WRI just launched the Green Power Market Development Group in India, bringing together industry, government, and NGOs to build critical support for renewable energy markets. A dozen major companies from a variety of sectors—like Infosys, ACC, Cognizant, IBM, WIPRO, and others— have joined the initiative. This type of government-industry-utility partnership, built upon highly successful models elsewhere, can spur expanded clean energy development. It will be highlighted in Davos this week at meetings of the Green Growth Action Alliance (G2A2).


De-risking investments


For technical, policy, and financial reasons, risks are often higher for renewables than fossil-based energy. Addressing these risks is the big remaining task to bring about the needed energy transformation. Some new funding mechanisms are emerging that can help reduce risk and thus leverage large sums of financing. For example, the Green Climate Fund could, if well-designed, be an important venue to raise funds and drive additional investments from capital markets. Likewise, multi-lateral development banks' recent $175 billion commitment to sustainable transport could help leverage more funds from the private and public sectors.


Some forward-looking companies are seeking to create internal incentives for green investments. For example, companies like Unilever, Johnson & Johnson, and UPS have been taking actions to reduce internal hurdle rates and shift strategic thinking to the longer-term horizons that many green strategies need.


Davos is exactly the type of venue for finding solutions to such issues, which requires leadership and coalition-building from the private and public sectors. For example, the the G2A2, an alliance of CEOs committed to addressing climate and environmental risks, will launch the Green Investment Report with precisely the goal of "unlocking finance for green growth".


Depending on what happens at Davos—and other forums and meetings like it throughout the year—2013 could just be a game-changer.


Follow us on Twitter@CNNOpinion.


Join us on Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Andrew Steer.






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Japan presses Algeria for answers as toll hits nine






ALGIERS: A senior Japanese official met Algeria's prime minister on Wednesday to press for an explanation of the gas plant siege, as Tokyo confirmed the deaths of two more nationals, taking its toll to nine.

Senior Vice Foreign Minister Shunichi Suzuki arrived aboard a government jet that is to repatriate the bodies of those known to have been killed in the hostage crisis, along with the seven Japanese who survived.

Tokyo announced late Wednesday that it knew for sure that nine Japanese were killed after Islamist gunmen overran the desert facility. One Japanese citizen remains unaccounted for.

"Unfortunately, we have been able to confirm two more deaths," said Chief Cabinet Secretary Yoshihide Suga. "The Japanese government expresses sincere condolences to the families and people concerned."

"The use of violence cannot be tolerated for any reason. We firmly condemn acts of terror," he said adding the government would do its utmost to confirm the fate of the final missing person.

Seventeen Japanese were at the facility in In Amenas when jihadists struck last Wednesday at the start of a four-day siege that left dozens of foreigners dead. Seven of them made it to safety.

Suzuki carried a letter to Algerian President Abdelaziz Bouteflika from Japan's Prime Minister Shinzo Abe, Suga told reporters in Tokyo earlier.

As well as Prime Minister Abdelmalek Saleki, Suzuki also met Foreign Minister Mourad Medelci, Japan's Kyodo News reported, citing Tokyo's foreign ministry.

Japan has asked Algeria to fully investigate events at the gas plant and exactly how individuals died, Suga said in Tokyo.

"Algeria has promised to cooperate as much as possible," he said.

Algeria has said 37 foreigners of eight different nationalities and an Algerian were killed in the siege, which ended on Saturday.

Several people are still missing and the bodies of others are so badly charred that they have not been identified.

Wednesday's visit came as it emerged that Britain, Japan, the United States and other countries whose nationals were caught up in the events at the In Amenas plant issued a joint demarche to Algeria last Friday.

A demarche is a formal diplomatic move in which a country's stance is conveyed in person -- rather than by note -- to another government.

In a conference telephone call, vice foreign minister Minoru Kiuchi told foreign minister Medelci that Tokyo wanted Algiers to do all it could to protect captives.

"Japan is strongly concerned about acts that put the lives of the hostages at risk, and it is regrettable that the Algerian government pressed military rescue operations," he said, according to the foreign ministry.

Japan was among the more forthright of nations as the hostage crisis unfolded, summoning Algiers' ambassador to demand answers and to push for military restraint as armed forces surrounded the plant.

The Japanese plane's arrival in Algiers came as Tokyo announced it was shutting its embassy in neighbouring Mali, evacuating staff and urging its nationals there to leave because of the deteriorating security situation.

The kidnappers claimed they launched their attack in protest at Algeria's complicity in a French military campaign against Islamists in Mali.

The Japanese death toll in Algeria -- the highest in a terror attack since Al-Qaeda crashed airliners into New York's Twin Towers when 24 Japanese died -- has shaken a country not accustomed to its citizens being made targets abroad.

There has been blanket media coverage of events half a world away and anguished demands for more to be done to protect Japanese working in trouble spots, including beefing up spy networks.

Kyodo on Wednesday said Suga indicated Tokyo's willingness to consider increasing the number of defence attaches at Japanese embassies to strengthen the country's ability to gather information.

"I am aware of the need. We need to think about the most effective (crisis-response) measures," Suga said.

-AFP/ac



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Fiery Clinton





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Deep freeze grips Midwest, slides toward Northeast

MADISON, Wis. The Upper Midwest remained locked in a deep freeze Wednesday as the bitter temperatures crept eastward where at least one mountain resort warned it was too cold even to ski.

Overnight, ice-covered Chicago firefighters spent hours fighting a massive fire at a warehouse on the city's South Side, hindered by the single digit chill.

The cold snap arrived Saturday night as waves of Arctic air swept south from Canada, pushing temperatures to dangerous lows and leaving a section of the country well-versed in winter's pains reeling. The National Weather Service said states from Ohio through to the far northeast of Maine could expect to be slammed by that Arctic blast on Wednesday.

The numbers so far are chilling in themselves: 35 below at Crane Lake, Minn., on Tuesday; Embarrass, Minn., at 36 below on Monday; and Babbitt, Minn., at 29 below on Sunday, according to the National Weather Service.





Play Video


Frigid weather could precede Northeast snowstorm




Meteorologist Mike Augustyniak, of CBS station WCCO, says the overall weather pattern won't change Wednesday and Thursday "with really cold stuff settled in across the Northeast and now back again to the Upper Midwest."

But he added that the Northeast could get a nasty surprise at the end of this cold snap.

"By the weekend, a (warmup) will be happening. But as that happens, late Friday into Saturday, there could actually be several inches of snow moving through the mid-Atlantic," Augustyniak reports.

The weather service issued a wind chill warning for Wednesday in the far north of Maine. In Presque Isle and Caribou, temperatures are not expected to rise above 7 below. And the wind chill could make it feel more like 40 below. Vermont was similarly afflicted, with wind chill advisories and highs peaking in the single digits. Forecasters said Boston and New York City could expect temperatures in the double digits, but that the wind chill would make it feel 5 below. And in mid-Massachusetts, high winds up to 30 mph in Worcester will add to the weather misery.

At least one ski resort in New Hampshire was planning to close Wednesday and Thursday because of the extraordinary cold. Wildcat Mountain in the White Mountains region said it was expecting temperatures in the negative double digits and a wind chill of 48 degrees below zero — conditions that would not be safe for guests or employees on the slopes.





Play Video


Deadly freeze grips Midwest



Late Tuesday, some 170 Chicago firefighters — approximately one third of the city's fire department — turned out in frigid temperatures to battle a blaze at a warehouse on the South Side. Officials said the fire prompted the department's biggest response in recent years, according to The Chicago Sun-Times. Despite the scale of the fire, firefighters' soaked jackets and hats froze, and icicles formed and dangled from hoses and hydrants.

Authorities said exposure has played a role in at least four deaths.

On Sunday, a 70-year-old man was found frozen in his unheated home in Des Plaines, Ill. And in Green Bay, Wis., a 38-year-old man was found dead outside his home Monday morning. Authorities in both cases said the victims died of hypothermia and cold exposure, with alcohol a possible contributing factor.

A 77-year-old Illinois woman also was found dead near her car in southwestern Wisconsin on Saturday night, and a 61-year-old Minnesota man was pronounced dead at a hospital after he was found in a storage building Saturday morning.

The bitter conditions were expected to persist into the weekend in the Midwest through the eastern half of the U.S., said Shawn DeVinny, a National Weather Service meteorologist in suburban Minneapolis.

Ariana Laffey, a 30-year-old homeless woman, kept warm with a blanket, three pairs of pants and six shirts as she sat on a milk crate begging near Chicago's Willis Tower on Tuesday morning. She said she and her husband spent the night under a bridge, bundled up under a half-dozen blankets.

"We're just trying to make enough to get a warm room to sleep in tonight," Laffey said.

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Clinton Says Budget Cuts Undermine Security













An energized Secretary of State Hillary Clinton stood her ground today, telling the Senate Foreign Relations Committee that she has overseen plans to secure diplomatic outposts around the world while cuts in State Department funding undermine those efforts.


Citing a report by the department's Accountability Review Board on the security failures that led to the deaths of four Americans in Benghazi, Libya, during an attack last year, Clinton said the board is pushing for an increase in funding to facilities of more than $2 billion per year.


"Consistent shortfalls have required the department to prioritize available funding out of security accounts," Clinton told the Senate this morning, while again taking responsibility for the Benghazi attack. "And I will be the first to say that the prioritization process was at times imperfect, but as the ARB said, the funds provided were inadequate. So we need to work together to overcome that."


Clinton, showing little effect from her recent illnesses, choked up earlier in discussing the Benghazi attack.


"I stood next to President Obama as the Marines carried those flag-draped caskets off the plane at Andrews," Clinton said this morning, her voice growing hoarse with emotion. "I put my arms around the mothers and fathers, sisters and brothers, sons and daughters."


The outgoing secretary of state was the only witness to giving long-awaited testimony before the Foreign Relations Committee this morning, and will appear before the House Foreign Affairs Committee at 2 p.m.






Pablo Martinez Monsivais/AP Photo











Hillary Clinton's Fiery Moment at Benghazi Hearing Watch Video









Hillary Clinton to Testify on Benghazi Consulate Attack Watch Video









Hillary Clinton Suffers Concussion After Fainting Watch Video





The secretary, who postponed her testimony in December, started today by giving context to the terrorist attack.


"Any clear-eyed examination of this matter must begin with this sobering fact," Clinton began. "Since 1988, there have been 19 Accountability Review Boards investigating attacks on American diplomats and their facilities."


But the secretary did not deny her role in the failures, saying that as secretary of state, she has "no higher priority and no greater responsibility" than protecting American diplomats abroad like those killed in Benghazi.


"As I have said many times, I take responsibility, and nobody is more committed to getting this right," Clinton said. "I am determined to leave the State Department and our country safer, stronger and more secure."


Among the steps Clinton has taken, she said, is to "elevate the discussion and the decision-making to make sure there's not any" suggestions that get missed, as there were in this case.


Clinton testified that the United States needs to be able to "chew gum and walk at the same time," working to shore up its fiscal situation while also strengthening security, and she refuted the idea that across-the-board cuts slated to take place in March, commonly referred to as sequestration, were the way to do that.


"Now sequestration will be very damaging to the State Department and USAID if it does come to pass, because it throws the baby out with the bath," Clinton said, referring to the United States Agency for International Development, which administers civilian foreign aid.


While the State Department does need to make cuts in certain areas, "there are also a lot of very essential programs … that we can't afford to cut more of," she added.


More than four months have passed since the attack killed U.S. Ambassador Christopher Stevens and three other Americans in Libya. These meetings, during which Clinton discussed the report on State Department security failures by the Accountability Review Board, were postponed because of her recent illness.


Clinton told the Senate that the State Department is on track to have 85 percent of action items based on the recommendations in the Accountability Review Board report accomplished by March, with some already implemented.






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Defterios: What keeps Davos relevant






STORY HIGHLIGHTS


  • Since the late 20th Century, the ski resort of Davos has been synonymous with the World Economic Forum

  • Defterios: I first came to Davos as a relatively junior correspondent, two months after the Berlin Wall fell

  • Fall of Communism, China's opening, removal of apartheid in South Africa unfolded in the 90s


  • It's the inter-play between geo-politics and business is what keeps the forum relevant




Davos (CNN) -- Veterans of Davos often refer to nature's awe-inspiring work as the Magic Mountain.


The name comes from an early 20th century novel by Thomas Mann -- reflecting on life in an alpine health retreat, and the mystery of time in this breath-taking setting.


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Since the late 20th century, this ski resort has been synonymous with the World Economic Forum, which represents networking on its grandest scale.


This year nearly 40 world leaders -- a record for this annual meeting -- 2000 plus executives and it seems an equal number of people in the media, like yours truly, are in pursuit of them all. The setting is certainly more chaotic then a decade ago. The agendas of the Fortune 500 chief executives are to filled with bi-lateral meetings and back door briefings to allow for the spontaneity that made this venue unique.











Davos gets ready for leaders' gathering











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I first came to Davos as a relatively junior correspondent in 1990, two months after the fall of the Berlin Wall. It was arguably then, after nearly two decades in the conference business, when the forum became a fixture on the global calendar.


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I can remember, quite vividly, working out of a bunker (like we do today) in the Davos Congress Centre. West German Chancellor Helmut Kohl sat side-by-side with his East German counterpart Hans Modrow. That meeting before the global community helped set the stage for monetary union, a huge unification fund for what became Eastern Germany and shortly thereafter German elections.


The early 90s at Davos were dominated by European reconstruction after the fall of communism. Former party bosses came to the forum to convince business leaders that a transition to market economics could be delivered. Boris Yeltsin made his Davos appearance during that chaotic transition from the USSR to today's Russia.


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In 1992, Chinese Premier Li Peng used the setting here in the Alps to articulate plans for the country's economic opening up to the world. Not by chance, the architect of Washington's engagement with Beijing, the former U.S. Secretary of State Henry Kissinger also took a high profile that year.



Again only two years later in 1994, Yasser Arafat and Shimon Peres walked hand in hand on stage, holding a public dialogue leading up to the creation and recognition of the Palestinian Authority.


The World Economic Forum, as the saying goes, was positioned to be in the right place at the right time. While the author of the Magic Mountain talked about the complexity of time around World War I, in the 1990s time was compressed here.


The fall of communism, the lowering of global trade barriers, the opening up of China, the removal of apartheid in South Africa and the proliferation of the internet all unfolded in that decade.


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As those events came together, so too did the major players as they made the journey to Davos. Michael Bloomberg, evolving as a global name in financial data and now the Mayor of New York City, sat alongside Microsoft CEO Bill Gates. U.S. President Bill Clinton outlined his party's historic move to the political center before a packed audience of global business executives.


To spice things up, rock stars and actors, as they became activists, chose the Davos platform: Bono, Richard Gere, Sharon Stone, Brad and Angelina would have the wealthiest and most powerful corporate titans freeze in their tracks.


Earlier this week, I walked into the main plenary hall as workers put the final touches on the stage and lighting. It is a venue which has welcomed countless political leaders and business executives, during internet booms and banking busts, in the midst of a Middle East crisis and even during the lead up to two Gulf Wars.


But that inter-play between geo-politics and business -- during the best and worst of times -- is what keeps the forum relevant. It allows this setting at the base of the Magic Mountain to endure and recreate something unique during what Mann rightly described as the ongoing complexity of our times.







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