World Nation Briefs January 17, 2013

Boeing 787s grounded by battery fires

The federal government grounded Boeing's newest and most technologically advanced jetliner Wednesday, declaring that U.S. airlines cannot fly the 787 again until the risk of battery fires is addressed.

The Federal Aviation Administration's emergency order affects only United Airlines, the lone U.S. carrier to operate 787s. United said it would put passengers on other aircraft and work closely with the FAA and Boeing to review its fleet of six Dreamliners.

The FAA action came on the same day that Japan's two biggest airlines - which fly almost half of the world's 50 787s - voluntarily grounded them pending full safety checks.

Boeing said it was working around the clock with investigators.

"We are confident the 787 is safe, and we stand behind its overall integrity," Jim McNerney, company chairman, president and CEO said late Wednesday in a statement.

Militants seize foreign hostages in Algeria

ALGIERS, Algeria - In a desert standoff deep in the Sahara, the Algerian army ringed a natural gas complex where Islamist militants hunkered down with dozens of hostages Wednesday night after a rare attack that appeared to be the first violent shock wave from the French intervention in Mali.

A militant group that claimed responsibility said 41 foreigners, including seven Americans, were being held after the assault on one of oil-rich Algeria's energy facilities, 800 miles from the capital of Algiers and 1,000 miles from the coast. Two foreigners were killed.

The group claiming responsibility said the attack was in revenge for Algeria's support of France's military operation against al-Qaida-linked rebels in neighboring Mali. The U.S. defense secretary called it a "terrorist act."

The militants appeared to have no escape, with troops surrounding the complex and army helicopters clattering overhead.

The group - called Katibat Moulathamine or the Masked Brigade - phoned a Mauritanian news outlet to say one of its affiliates had carried out the operation at the Ain Amenas gas field, and that France should end its intervention in Mali to ensure the safety of the hostages.

CEOs call for raising retirement age to 70

WASHINGTON - An influential group of business CEOs is pushing a plan to gradually increase the full retirement age to 70 for both Social Security and Medicare and to partially privatize the health insurance program for older Americans.

The Business Roundtable's plan would protect those 55 and older from cuts but younger workers would face significant changes. The plan unveiled Wednesday would result in smaller annual benefit increases for all Social Security recipients. Initial benefits for wealthy retirees would also be smaller.

Medicare recipients would be able to enroll in the traditional program or in private plans that could adjust premiums based on age and health status.

"America can preserve the health and retirement safety net and rein in long-term spending growth by modernizing Medicare and Social Security in a way that addresses America's new fiscal and demographic realities," said Gary Loveman, chairman, president and chief executive of casino giant Caesars Entertainment Corp.

Loveman, who chairs the Business Roundtable's health and retirement committee, said the business leaders will be meeting with members of Congress and the administration to press them to enact their plan.

Seaside Heights to rebuild boardwalk

SEASIDE HEIGHTS, N.J. - The boardwalk where generations of families and teens got their first taste of the Jersey Shore and where the MTV reality show of the same name was filmed is about to be rebuilt following its destruction in Superstorm Sandy.

Seaside Heights on Wednesday night was awarded a $3.6 million contract to have the boardwalk rebuilt in time for Memorial Day weekend.

The walkway, one of the most popular and heavily used at the Jersey Shore, was destroyed in the late October storm, the state's worst natural disaster. Officials say it is the centerpiece of the borough's tourism industry, which funds 75 percent of its budget.

"A lot of people love Seaside and want to see what's happening this year," Mayor William Akers said. "If they don't come back, we don't eat."

Florence Birban, a 47-year resident, said the boardwalk means a lot to homeowners.

Study strengthens call for flu vaccinations

NEW YORK - A large study offers reassuring news for pregnant women: It's safe to get a flu shot.

The research found no evidence that the vaccine increases the risk of losing a fetus, and may prevent some deaths. Getting the flu while pregnant makes fetal death more likely, the Norwegian research showed.

The flu vaccine has long been considered safe for pregnant women and their fetus. U.S. health officials began recommending flu shots for them more than five decades ago, following a higher death rate in pregnant women during a flu pandemic in the late 1950s.

But the study is perhaps the largest look at the safety and value of flu vaccination during pregnancy, experts say.

"This is the kind of information we need to provide our patients when discussing that flu vaccine is important for everyone, particularly for pregnant women," said Dr. Geeta Swamy, a researcher who studies vaccines and pregnant women at Duke University Medical Center.

JPMorgan to dock CEO's pay after trading loss

NEW YORK - America's best-known banker is getting a big pay cut.

JPMorgan Chase said Wednesday that it will dock the pay of CEO Jamie Dimon by more than half, to $11.5 million from $23 million.

It's the latest fallout from an embarrassing trading loss at the bank last year, one that eventually ballooned to $6 billion. Its ripple effects have already been numerous, forcing Dimon to appear contritely before Congress and putting the bank squarely in the cross hairs of regulators and lawmakers.

- The Associated Press