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.

Read more from John Defterios: Why Egypt's transition is so painful

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.

Quest: U.S. economy to dominate Davos 2013

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.

Davos 2013: New year, same old problems?

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.

Interactive: How's your economic mood?

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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At least 3 hurt in extra-alarm fire at South Side high-rise

A fire in a high-rise residential building on the South Side injured three people. (Source: CBS Chicago)

Staff report

9:56 a.m. CST, January 22, 2013

At least three people were seriously injured when an extra-alarm fire broke out in a high-rise on South Shore Drive this morning.

The fire broke out around 8:40 a.m. in the 6700 block of South Shore Drive and was quickly raised to a 3-11 alarm with a call for at least 10 ambulances, officials said. At least three people were taken in critical condition to hospitals, officials said.

Firefighters on a ladder battled the blaze on the seventh floor while firefighters on another ladder tried to reach residents on balconies on the other side of the building.

Two of the victims were taken to the University of Chicago Medical Center and another was transported to Jackson Park Hospital and Medical Center.

The fire was under control by 9:25 a.m.

chicagobreaking@tribune.com

Twitter: @ChicagoBreaking

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Israel goes to polls, set to re-elect Netanyahu

JERUSALEM (Reuters) - Israelis voted on Tuesday in an election that is expected to hand hawkish Prime Minister Benjamin Netanyahu a third term, opening the way for a showdown with Iran and bolstering opponents of Palestinian statehood.

However, Netanyahu's own Likud party, running alongside the ultra-nationalist Yisrael Beitenu group, looks set to win fewer seats than in the previous parliament, with opinion polls showing a surge in support for the far-right Jewish Home party.

By 4 p.m. (9.00 a.m. ET), six hours before polls close, the Israeli election committee said turnout was 46.6 percent, up from 41.9 percent at the same time in 2009 and the highest level since 1999, when Netanyahu, serving his first term as prime minister, was defeated by then-Labour Party leader Ehud Barak.

Ahead of Tuesday's ballot, analysts had speculated that high turnout would benefit center-left parties that have sometimes struggled to motivate their voter base.

In a sign of concern over a possible centrist surge, Netanyahu urged his supporters to go to the polls.

"Go vote, and then go back to the cafes. Go vote so we can lead Israel because ... we don't really know how all of this is going to end," he said in public remarks at Likud party headquarters in Tel Aviv.

Political sources said Netanyahu, worried by his apparent fall in popularity, might approach center-left parties after the ballot in an effort to broaden his coalition and present a more moderate face to Washington and other concerned allies.

British Foreign Secretary William Hague warned Israel it was losing international support, saying prospects for a two-state solution to the Israeli-Palestinian conflict were almost dead because of expanding Jewish settlement in occupied territory.

Some 5.66 million Israelis are eligible to cast a ballot, with polling stations closing at 10 p.m. (3.00 p.m. ET). Full results are due by Wednesday morning, opening the way for coalition talks that could take several weeks.

The lackluster election campaign failed to focus on any single issue and with a Netanyahu victory predicted by every opinion poll, the two main political blocs seemed to spend more time on internal feuding than confronting each other.

"There is a king sitting on the throne in Israel and I wanted to dethrone him, but it looks like that won't happen," said Yehudit Shimshi, a retired teacher voting in central Israel in balmy winter weather that drew out the electorate.

No Israeli party has ever secured an absolute majority, meaning that Netanyahu, who says that dealing with Iran's nuclear ambitions is his top priority, will have to bring various allies on board to control the 120-seat Knesset.

The former commando has traditionally looked to religious, conservative parties for backing and is widely expected to seek out the surprise star of the campaign, self-made millionaire Naftali Bennett, who heads the Jewish Home party.

Bennett has ruled out any peace pact with the Palestinians and calls for the annexation of much of the occupied West Bank.

His youthful dynamism has struck a chord amongst Israelis, disillusioned after years of failed peace initiatives, and has eroded Netanyahu's support base.

The Likud has also shifted further right in recent months, with hardline candidates who reject the so-called two-state solution dominating the top of the party list.

"TRENDY PARTIES"

Surveys suggest Bennett may take up to 14 seats, many at the expense of Likud-Beitenu, which was projected to win 32 in the last round of opinion polls published on Friday - 10 less than the two parties won in 2009 when they ran separate lists.

Acknowledging the threat, Netanyahu's son Yair urged young Israelis not to abandon the old, established Likud.

"Even if there are more trendy parties, there is one party that has a proven record," he said on Tuesday.

Amongst the new parties standing for the first time in an election were Yesh Atid (There is a Future), a centrist group led by former television host Yair Lapid, seen winning 13 seats.

"All our lives we voted Likud, but today we voted for Lapid because we want a different coalition," said Ahuva Heled, 55, a retired teacher voting with her husband north of Tel Aviv.

Lapid has not ruled out joining a Netanyahu cabinet, but is pushing hard for ultra-Orthodox Jews to do military service - a demand fiercely rejected by some allies of the prime minister.

Israel's main opposition party, Labour, which is seen capturing up to 17 seats, has already ruled out a repeat of 2009, when it initially hooked up with Netanyahu, promising to promote peace negotiations with the Palestinians.

U.S.-brokered talks collapsed just a month after they started in 2010 following a row over settlement building, and have lain in ruins ever since. Netanyahu blamed the Palestinians for the failure and says his door remains open to discussions.

Palestinian President Mahmoud Abbas says he won't return to the table unless there is a halt to settlement construction.

That looks unlikely, with Netanyahu approving some 11,000 settler homes in December alone, causing further strains to his already notoriously difficult relations with U.S. President Barack Obama, who was sworn in for a second term on Monday.

IRAN THREAT

Tuesday's vote is the first in Israel since Arab uprisings swept the region two years ago, reshaping the Middle East.

Netanyahu has said the turbulence - which has brought Islamist governments to power in several countries long ruled by secularist autocrats, including neighboring Egypt - shows the importance of strengthening national security.

If he wins on Tuesday, he will seek to put Iran back to the top of the global agenda. Netanyahu has said he will not let Tehran enrich enough uranium to make a single nuclear bomb - a threshold Israeli experts say could arrive as early as mid-2013.

Iran denies it is planning to build the bomb, and says Israel, widely believed to have the only nuclear arsenal in the Middle East, is the biggest threat to the region.

The issue has barely registered during the election campaign, with a poll in Haaretz newspaper on Friday saying 47 percent of Israelis thought social and economic issues were the most pressing concern, against just 10 percent who cited Iran.

One of the first problems to face the next government, which is unlikely to take power before the middle of next month at the earliest, is the stuttering economy.

Data last week showed the budget deficit rose to 4.2 percent of gross domestic product in 2012, double the original estimate, meaning spending cuts and tax hikes look certain.

(Additional reporting by Ori Lewis, Jeffrey Heller and Tova Cohen; Editing by Alistair Lyon)

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European shares test two-year highs, yen volatile before BOJ

LONDON (Reuters) - European shares inched towards two-year highs on Monday, as a political attempt to break a budget impasse in the United States and expectations of aggressive Japanese stimulus bolstered the appetite for shares.

U.S. House Republican leaders said on Friday they would seek to pass a three-month extension of federal borrowing authority in the coming days to buy time for the Democrat-controlled Senate to pass a plan to shrink budget deficits.

European shares <.fteu3> were supported by the news <.eu>, but with no clear response from the Democrats and a thin session expected due to a market holiday in the United States, the impact on assets such as bonds and commodities was limited.

By 1500 GMT London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> were up 0.4 to 0.6 percent, leaving the pan-European FTSEurofirst 300 within touching distance of a two-year high and MSCI's world index <.miwd00000pus> steady at a 20-month high. <.l><.eu/>

Expectations that the Bank of Japan will deliver a bold monetary easing plan at the end of its two-day meeting on Tuesday also supported shares and created choppy conditions in the currency market.

According to sources familiar with the BoJ's thinking, the government of new Prime Minister Shinzo Abe and the central bank have agreed to set 2 percent inflation as a new target, supplanting a softer 1 percent 'goal'.

The yen, which has fallen 13 percent against the dollar over the last two months as the shift in Japanese policy has taken shape, touched a new 2-1/2 year low in early trading but then firmed as traders cut short positions given the BOJ has often fallen short of market expectations.

"Investors are being mindful that the moves we have seen over the course of the last month or two are just worth locking in at least until we understand how the BOJ are really going to play in the future," said Jeremy Stretch, head of currency strategy at CIBC World Markets.

CURRENCY WARS

Japanese equities have surged in recent weeks in anticipation of a more aggressive monetary policy stance, but not everyone is happy.

The slump in the yen has prompted Russia's deputy central bank governor to warn of a new round of 'currency wars' and the medium-term risk of running ultra-loose monetary policies is likely to be a theme of the World Economic Forum in Davos, which opens on Wednesday.

With little in the way of economic data or debt issuance and U.S. markets shut for the Martin Luther King public holiday, the rest of the day was expected to be a fairly quiet for investors.

As the first European finance ministers' meeting of the year got under way, most euro zone government bonds were trading virtually flat and the euro was steady at $1.3316.

Market pressure on Europe is now less intense thanks to the European Central Bank's promise to prevent a collapse of the euro. Policymakers are set to discuss Cyprus's plight and plans for the euro zone's bailout fund to directly recapitalize banks.

French Finance Minister Pierre Moscovici said as he arrived at the Brussels meeting that a proper recapitalization strategy was very important.

"Negotiations will be complex, and a final decision is unlikely to emerge soon. Risks for sovereign spreads in the periphery should be limited, but we have some concerns that the long-term solution may fall short of what a real banking union needs," said UniCredit economist Marco Valli.

POLITICAL GAME

The efforts by Republican lawmakers to give the U.S. government leeway to pay its bills for another three months dented demand for safe haven assets and pushed German government bond yields near the top of this year's range.

The U.S. Treasury needs congressional authorization to raise the current $16.4 trillion limit on U.S. debt sometime between mid-February and early March. A failure to achieve that could lead to a debt default.

"This is part of the political game, it remains to be seen whether the Democrats will accept it," KBC strategist Piet Lammens said, adding that investors' working scenario was that a solution to raise the ceiling would be eventually found anyway.

One of the key factors that drove 2-year German yields higher last week was also the prospect of sizeable early repayments of the 1 trillion euros euro zone banks took from the ECB roughly a year ago.

The central bank will publish on Friday how much banks plan to return at the optional first repayment date on January 30. A Reuters poll on Monday showed around 100 billion euros are expected to be repaid although some predict it could be as high as 250 billion.

OIL OVERSUPPLY

German markets showed no reaction after the country's center-left opposition party edged Chancellor Angela Merkel's conservatives from power in a regional election on Sunday, reviving its flagging hopes for September's national election.

The Bundesbank's latest report delivered an upbeat message on the country's economy, saying a recent slump should be short-lived and may have already bottomed out.

Oil prices took their cues from a report in the United States at the end of last week that showed consumer sentiment at its weakest in a year as a result of the uncertainty surrounding the country's debt crisis.

Concerns about demand overshadowed supply disruption fears reinforced by the Islamist militant attack and hostage-taking at a gas plant in Algeria, a member of the Organization of Petroleum Exporting Countries.

Brent futures were down by 40 cents to $111.47 per barrel by mid-afternoon. U.S. crude shed 43 cents to $95.13 per barrel after touching a four-month high last week.

"The over-riding fundamental feeling in the market is that crude oil is over-supplied in 2013," said Tony Nunan, an oil risk manager at Mitsubishi.

Last week's data showing a pick-up in the Chinese economy helped keep growth-sensitive copper prices steady at roughly $8,056 an ounce. Gold, meanwhile, reversed Friday's losses to stand at $1,688 an ounce.

(Additional reporting by Sudip Kar-Gupta, Marious Zaharia and Anooja Debnath; Editing by Peter Graff)

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Harbaugh brothers take 49ers, Ravens to Super Bowl

This Super Bowl will be filled with firsts — and one significant last.

The Harbaughs, San Francisco's Jim and Baltimore's John, will be the first pair of brothers to coach against each other in the NFL title game.

Quarterbacks Colin Kaepernick of the 49ers and Joe Flacco of the Ravens each will be playing in his first Super Bowl — where success is the ultimate measure of elite QBs.

It'll be Baltimore's first crack at a championship in a dozen years, San Francisco's first in 18. They are a combined 6-0 in Super Bowls (the 49ers own five of those victories), so one club will lose the big game for the first time.

And middle linebacker Ray Lewis, Baltimore's emotional leader and top tackler, will be playing in the final game of his 17-year career before heading into retirement.

"This is our time," Lewis pronounced.

For all of those story lines, none is expected to command as much attention as Harbaugh vs. Harbaugh. The game in New Orleans on Feb. 3 was quickly given all manner of nicknames: The Brother Bowl. The Harbaugh Bowl. The Har-Bowl. The Super-Baugh.

The Harbaughs' sister, Joani Crean, wrote in a text to The Associated Press: "Overwhelmed with pride for John, Jim and their families! They deserve all that has come their way! Team Harbaugh!"

As John prepared to coach the Ravens in the AFC championship game Sunday night, he watched on the stadium's big video screen as Jim's 49ers wrapped up the NFC championship.

John looked into a nearby TV camera, smiled broadly and said: "Hey, Jim, congratulations. You did it. You're a great coach. Love you."

Less than four hours later, the Ravens won, too. Some siblings try to beat each other in backyard games. These guys will do it in the biggest game of all.

Who's a parent to cheer for?

During the 2011 regular season, the Harbaughs became the only brothers to coach against each other in any NFL game (the Ravens beat the 49ers 16-6 on Thanksgiving Day that year).

The NFC West champion 49ers (13-4-1) opened as 5-point favorites, seeking a record-tying sixth Super Bowl title to add to those won by Hall of Fame quarterbacks Joe Montana and Steve Young.

Lewis was the MVP when the AFC North champion Ravens (13-6) beat the New York Giants in 2001.

With Kaepernick's terrific passing — he was 16 of 21 for 233 yards and a touchdown in only his ninth career NFL start — and two TD runs by Frank Gore, San Francisco erased a 17-point deficit to beat the Atlanta Falcons 28-24 Sunday.

Baltimore then fashioned a comeback of its own, scoring the last 21 points to defeat the New England Patriots 28-13, thanks in large part to Flacco's three second-half touchdown tosses, two to Anquan Boldin. Lewis and the rest of Baltimore's defense limited the high-scoring Patriots to one touchdown.

In the often risk-averse NFL, each Harbaugh made a critical change late in the regular season in a bid to boost his team's postseason chances. Clearly, both moves worked.

After 49ers quarterback Alex Smith, the starter in last season's overtime NFC title game loss to the Giants, got a concussion, Jim switched to Kaepernick for Week 11 — and never switched back. Now San Francisco has its first three-game winning streak of the season, at precisely the right time.

Baltimore, meanwhile, was in the midst of a three-game losing streak when John fired offensive coordinator Cam Cameron and promoted quarterbacks coach Jim Caldwell to replace him.

The 50-year-old John is 15 months older than Jim and generally the less demonstrative of the pair, although John certainly did not lack intensity while making his case with officials a couple of times Sunday.

The ever-excitable Jim — who was treated for an irregular heartbeat in November — was up to his usual sideline antics in Atlanta.

He spun around and sent his headset flying when the original call stood after he threw his red challenge flag on a catch by the Falcons. He hopped and yelled at his defense to get off the field after their key fourth-down stop with less than 1½ minutes left. He made an emphatic-as-can-be timeout signal with 13 seconds remaining.

Expect CBS to fill plenty of time during its Super Bowl broadcast with shots of Jim, that trademark red pen dangling in front of his chest, and John, who usually wears a black Ravens hat. That is sure to be a focal point, right up until they meet for a postgame handshake in two weeks' time.

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AP Sports Writer Janie McCauley in San Francisco contributed to this report.

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Follow Howard Fendrich on Twitter at http://twitter.com/HowardFendrich

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Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

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Exxon Mobil boss meets Iraqi leader in Baghdad

BAGHDAD (AP) — Iraq’s prime minister met with the head of Exxon Mobil on Monday to discuss the firm’s plans in the country, raising the possibility that Baghdad could be mending its dispute with America’s largest oil company.

Exxon is helping to develop one of Iraq’s largest oil fields, but it has infuriated Baghdad by signing separate deals with the OPEC member’s largely autonomous Kurdish region to hunt for crude there too.

Baghdad and the Kurds have been at loggerheads for years over rights to develop Iraq’s vast oil wealth, but tensions have been on the rise in recent months. The Kurds, who have their own armed forces, have signed dozens of deals with foreign oil companies since the 2003 U.S.-led invasion.

Recently, the Kurds began trucking oil pumped from their self-rule region into neighboring Turkey, prompting allegations of smuggling and threats of lawsuits from Baghdad. Iraq’s central government does not recognize the Kurdish agreements, which offer more generous terms than its own. It believes it should manage the country’s oil policy and wants all exports to travel through state-run pipelines.

Iraq announced the meeting between Prime Minister Nouri al-Maliki and Exxon Chairman and CEO Rex Tillerson in a brief statement following the talks in Baghdad. It offered few specifics, saying that the men discussed the company’s activities and working conditions in Iraq.

Tillerson said Exxon was eager to continue and expand its work in Iraq and “will take important decisions in this regard,” according to the statement.

The Exxon chief also met with U.S. Ambassador Robert S. Beecroft during his visit to the Iraqi capital, said embassy spokesman Frank Finver. He would not provide further details.

Exxon spokesman Alan Jeffers declined to comment to The Associated Press. Ali al-Moussawi, a spokesman for the prime minister, would not elaborate on the government’s statement.

Exxon, based in Irving, Texas, reached a deal with the Kurds to hunt for oil in their largely autonomous region in late 2011. That deal is particularly contentious from Baghdad’s point of view because it includes the exploration of land claimed by both the Kurds and Arabs.

Dueling claims to disputed territories running along the Kurdish region are seen as one of the gravest threats to Iraq’s long-term stability. An exchange of fire in one disputed city in November prompted a military standoff, with both sides sending reinforcements and heavy weapons into the contested area.

Exxon and Royal Dutch Shell signed a deal to develop Iraq’s 8.6-billion-barrel West Qurna-1 oil field in 2009. But Exxon has been looking to get out of that contract so it could focus on the Kurdish deal instead.

A spokesman for the Kurdish regional government, Safeen Dizayee, downplayed the significance of Monday’s meeting.

“What is important is the results of this meeting, not the meeting itself,” he said. “We have not seen any change in Exxon Mobil’s policies regarding its work in Kurdistan.”

Iraq sits atop the world’s fourth largest proven reserves of conventional crude, with about 143.1 billion barrels. Oil revenues make up 95 percent of the country’s budget — a portion of which is earmarked for the Kurdish region.

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Associated Press writers Sameer N. Yacoub in Baghdad and Mohammed Jambaz in Irbil contributed to this report.

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Follow Adam Schreck on Twitter at http://twitter.com/adamschreck

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How Obama made opportunity real

STORY HIGHLIGHTS

• LZ Granderson: Specifics of Obama's first term may not be remembered


• He says his ability to win presidency twice is unforgettable


• Granderson: Obama, the first black president, makes opportunity real for many


• He says it makes presidency a possibility for people of all backgrounds

Editor's note: LZ Granderson, who writes a weekly column for CNN.com, was named journalist of the year by the National Lesbian and Gay Journalists Association and is a 2011 Online Journalism Award finalist for commentary. He is a senior writer and columnist for ESPN the Magazine and ESPN.com. Follow him on Twitter: @locs_n_laughs.

(CNN) -- In his first term, President Barack Obama signed 654 bills into law, the Dow Jones Industrial Average increased by about 70% and the national debt by $5.8 trillion.

And in 10 years -- maybe less -- few outside of the Beltway will remember any of that. That's not to suggest those details are not important. But even if all of his actions are forgotten, Obama's legacy as the first black president will endure.

And even though this is his second term and fewer people are expected to travel to Washington this time to witness the inauguration, know that this moment is not any less important.

For had Obama not been re-elected, his barrier-breaking election in 2008 could have easily been characterized as a charismatic politician capturing lightning in a bottle. But by becoming the first president since Dwight Eisenhower to win at least 51% of the vote twice, Obama proved his administration was successful.

And not by chance, but by change.

A change, to paraphrase Martin Luther King Jr., that was not inevitable but a result of our collective and continuous struggle to be that shining city on a hill of which President Ronald Reagan spoke so often.

Best of 2013 inauguration

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For much of this country's history, being a white male was a legal prerequisite to being president. Then it was accepted as a cultural norm. Because of that, we could not be the country we set out to be.

But today, somewhere in the Midwest, there is a little Asian-American girl with the crazy idea she could be president one day, and because of Obama, she knows that idea is not very crazy at all.

That's power -- the kind of power that can fade urgent numbers and debates of the day into the background of history.

Gergen: Obama 2.0 version is smarter, tougher

Few remember the number of steps Neil Armstrong took when he landed on the moon, but they remember he was the first human being who stepped on the moon. Few can tell you how many hits Jackie Robinson had in his first Major League Baseball game, but they know he broke baseball's color barrier. Paying homage to a person being first at something significant does not diminish his or her other accomplishments. It adds texture to the arc of their story.

I understand the desire not to talk about race as a way of looking progressive.

But progress isn't pretending to be color blind, it's not being blinded by the person's color.

Or gender.

Or religion.

Or sexual orientation.

Somewhere in the South, there is an openly gay high schooler who loves student government and wants to be president someday. And because of Obama, he knows if he does run, he won't have to hide.

That does not represent a shift in demographics, but a shift in thought inspired by a new reality. A reality in which the president who follows Obama could be a white woman from Arkansas by way of Illinois; a Cuban-American from Florida; or a tough white guy from Jersey. Or someone from an entirely different background. We don't know. Four years is a long time away, and no one knows how any of this will play out -- which I think is a good thing.

For a long time, we've conceived of America as the land of opportunity. Eight years ago, when it came to the presidency, that notion was rhetoric. Four years ago, it became a once in a lifetime moment. Today, it is simply a fact of life.

Ten years from now, we may not remember what the unemployment rate was when Obama was sworn in a second time, but we'll never forget how he forever changed the limits of possibility for generations to come.

Somewhere out West, there is an 80-year-old black woman who never thought she'd see the day when a black man would be elected president. Somehow I doubt Obama's second inauguration is less important to her.

Follow us on Twitter @CNNOpinion.

Join us on Facebook/CNNOpinion.

The opinions expressed in this commentary are solely those of LZ Granderson.

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President Obama begins 2nd term

Singers, musicians, vendors and a veteran parade planner tune up on Sunday, Jan. 20, 2013, for President Obama's Monday inauguration. (Chris Walker, Chicago Tribune)

WASHINGTON – Markedly smaller than four years ago, but still enthusiastic, a crowd of several hundred thousand flocked to the National Mall early today, preparing for the public celebration of President Obama’s second inauguration.

The Washington region’s mass transit agency had counted 189,000 riders on its rail system, somewhat less than half of the record-setting crowd that jammed trains four years ago, but more in line with previous second inaugurals.

Hazel Carter, 90, of Springfield, Ohio, attended the last inauguration and wasn't going to miss this one. "I prayed, God, just let me keep breathing until the inauguration," she said with a laugh.

"The crowd isn’t nearly the crowd of the first time. The anticipation isn't what it was,” she said.

"It's a little more subdued, but beautiful. Beautiful. I love it."

Seated next to her, Thelma Lawson, 61, a nurse from Chicago, said she had not attended the swearing in four years ago, "but now I am so excited because I'm in the midst of what is history of being made twice.”

As is typical with inaugural celebrations, the crowd was heavily dominated by the president’s supporters. And in keeping with the intense enthusiasm that Obama’s presidency has generated among African-Americans, it was disproportionately black. Several spectators commented on the special significance of the swearing-in taking place on the nation’s Martin Luther King Jr. day observance.

"It's particularly special that today is the MLK holiday," said David Anderson, 43, who traveled from Tampa. "It's kind of predestined. You can't get better than that."

Chicagoans in D.C., 'vested in his success'

Spencer Gould and his wife, Ardenia, of Chicago, arrived at the Capitol early enough to get seats on the front row of their section, directly center of where the president will take the oath of office.

For about a minute, Gould said, he considered staying at home in Chicago’s Roseland neighborhood, but quickly realized that he could be no place else but here.

"We have worked on all of his campaigns," said Gould, 38. "We go back to when people couldn’t pronounce his name. It has been such a great experience to watch him go from someone no one knew to a world leader."

Four years ago, he said, he wanted to be part of the historical moment. This time, he came to show his support.

His wife, Ardenia, 37, said this time seems more subdued, compared to the electrifying experience of 2008.

"I feel vested in his success," said Ardenia Gould, who started out working on his senate campaign.

In his next term, she said, she would like to see the president use his power to push his policies through.

"I want to see him flex his political muscle and move this country in the direction it needs to go, regardless of what happens on the other side of the aisle." she said. "Now is the time to play hard ball."

She said she supports the president’s push for gun control and she does not want him to back down from that.

"Our kids are under siege, so I hope he can do something about gun control," she said. "That and keeping us from falling off the fiscal cliff are my two biggest concerns."

Her husband said he would like to see the president address trade issues so that more America-made products are available to consumers.

"I want to support our economy but it’s very hard to find products made in America," he said. "I’d love to see more of those on the shelves."

First family's fashion for the day

First lady Michelle Obama chose a navy-colored coat and dress by designer Thom Browne on a day when she’ll be the most-watched woman on the planet.

The fabric for the ensemble was based on the style of a man’s silk tie, an aide said.
Known for mixing and matching haute couture and off-the-rack pieces, Obama chose a necklace from Cathy Waterman, a cardigan by Reed Krakoff and a belt and shoes from J.Crew.

Daughter Malia, 14, picked out her clothing from J.Crew. Sasha, 11, went more upscale with a Kate Spade coat and dress.

After the inauguration, the first lady, who is sporting new hairstyle featuring bangs, plans to give her outfit to the National Archives, the aide said.

Former Obama pastor in town

The Rev. Jeremiah Wright, the president's former Chicago pastor whose sermons touched off a firestorm in the 2008 political campaign, urged today that Barack Obama heed the words of the late Rev. Martin Luther King Jr. and transform the country into the world's "No. 1 purveyor of peace."

Wright, in the capital today but skipping the inauguration, recalled a speech by King during the Vietnam war, when the civil rights leader denounced the U.S. as "the greatest purveyor of violence in the world."

When Obama raises his right hand to be sworn in by Supreme Court Chief Justice John Roberts outside the U.S. Capitol at 10:55 a.m. Chicago time, it will be his second time taking the oath in 24 hours.

He had a private swearing-in on Sunday at the White House because of a constitutional requirement that the president be sworn in on Jan. 20. Rather than stage the full inauguration on a Sunday, the main public events were put off until Monday.

Obama began the day worshiping at St. John's Episcopal Church across from the White House. He will then take the oath again and deliver his inaugural address from the Capitol's west front overlooking the National Mall.

As Inauguration Day dawned and people streamed through the wintry cold toward the Capitol grounds, Washington was in security lockdown, with thousands of police and National Guard troops deployed, barricades up and Humvee military vehicles blocking major intersections.

Outside the White House on Pennsylvania Avenue, an elaborate presidential viewing stand, encased in bullet-proof glass, awaited Obama and other VIPs to watch the inaugural parade.

Inaugural address is centerpiece

The focal point of today's festivities will be Obama's inauguration address, which he will use to lay out in broad terms his vision for the next four years but will stay away from policy specifics.

David Plouffe, a senior adviser, said Obama would call on both parties to come together to resolve daunting second-term challenges like the budget, the need to raise the nation's borrowing limit and the Democrat's push for tighter gun laws and a legal path to citizenship for illegal immigrants.

The president views the inauguration speech and the State of the Union speech to Congress on February 12 as "a package," Plouffe told CNN on Sunday, and would save details of his second-term agenda for the later speech.

At a reception on Sunday night, Obama thanked supporters, telling them: "After we celebrate, let's make sure to work as hard as we can to pass on an America that is worthy not only of our past but also of our future."

After a bitter election fight against Republican Mitt Romney, the daunting challenges facing Obama and his political battles with congressional Republicans have split public opinion about the prospects for the next four years.

An NBC/Wall Street Journal poll last week found 43 percent of Americans were optimistic about the next four years and 35 percent pessimistic, with 22 percent having a mixed opinion.

Obama's main political opponent in Congress, Republican House of Representatives Speaker John Boehner, plans to attend a White House tea before the ceremony, as well as the inaugural speech and a post-event lunch at the Capitol with the president and lawmakers.

The inauguration ceremony will include music - singers James Taylor and Kelly Clarkson will perform patriotic songs and Beyonce will sing the national anthem - and also feature Vice President Joe Biden taking the oath of office again after doing so already on Sunday.

Obama and the first lady will join Biden and his wife, Jill, at the capital luncheon before the two couples take part in the inaugural parade down Pennsylvania Avenue from the Capitol to the White House.

Obama could get out of his limousine and walk part of the way to interact with the crowd, as have presidents in the last several inaugurals.

After watching the rest of the parade from a viewing stand in front of the White House, the Obamas will change and head to the two inaugural balls - an official ball and one for military personnel and their spouses. That is a dramatic reduction in activities from 2009, when there were 10 official inaugural balls.

Tribune reporters Dahleen Glanton, Katherine Skiba, Reuters and the Los Angeles Times contributed.

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Wall Street Week Ahead: Earnings, money flows to push stocks higher

NEW YORK (Reuters) - With earnings momentum on the rise, the S&P 500 seems to have few hurdles ahead as it continues to power higher, its all-time high a not-so-distant goal.

The U.S. equity benchmark closed the week at a fresh five-year high on strong housing and labor market data and a string of earnings that beat lowered expectations.

Sector indexes in transportation <.djt>, banks <.bkx> and housing <.hgx> this week hit historic or multiyear highs as well.

Michael Yoshikami, chief executive at Destination Wealth Management in Walnut Creek, California, said the key earnings to watch for next week will come from cyclical companies. United Technologies reports on Wednesday while Honeywell is due to report Friday.

"Those kind of numbers will tell you the trajectory the economy is taking," Yoshikami said.

Major technology companies also report next week, but the bar for the sector has been lowered even further.

Chipmakers like Advanced Micro Devices , which is due Tuesday, are expected to underperform as PC sales shrink. AMD shares fell more than 10 percent Friday after disappointing results from its larger competitor, Intel . Still, a chipmaker sector index <.sox> posted its highest weekly close since last April.

Following a recent underperformance, an upside surprise from Apple on Wednesday could trigger a return to the stock from many investors who had abandoned ship.

Other major companies reporting next week include Google , IBM , Johnson & Johnson and DuPont on Tuesday, Microsoft and 3M on Thursday and Procter & Gamble on Friday.

CASH POURING IN, HOUSING DATA COULD HELP

Perhaps the strongest support for equities will come from the flow of cash from fixed income funds to stocks.

The recent piling into stock funds -- $11.3 billion in the past two weeks, the most since 2000 -- indicates a riskier approach to investing from retail investors looking for yield.

"From a yield perspective, a lot of stocks still yield a great deal of money and so it is very easy to see why money is pouring into the stock market," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.

"You are just not going to see people put a lot of money to work in a 10-year Treasury that yields 1.8 percent."

Housing stocks <.hgx>, already at a 5-1/2 year high, could get a further bump next week as investors eye data expected to support the market's perception that housing is the sluggish U.S. economy's bright spot.

Home resales are expected to have risen 0.6 percent in December, data is expected to show on Tuesday. Pending home sales contracts, which lead actual sales by a month or two, hit a 2-1/2 year high in November.

The new home sales report on Friday is expected to show a 2.1 percent increase.

The federal debt ceiling negotiations, a nagging worry for investors, seemed to be stuck on the back burner after House Republicans signaled they might support a short-term extension.

Equity markets, which tumbled in 2011 after the last round of talks pushed the United States close to a default, seem not to care much this time around.

The CBOE volatility index <.vix>, a gauge of market anxiety, closed Friday at its lowest since April 2007.

"I think the market is getting somewhat desensitized from political drama given, this seems to be happening over and over," said Destination Wealth Management's Yoshikami.

"It's something to keep in mind, but I don't think it's what you want to base your investing decisions on."

(Reporting by Rodrigo Campos, additional reporting by Chuck Mikolajczak and Caroline Valetkevitch; Editing by Kenneth Barry)

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Djokovic holds off Wawrinka; Sharapova advances

MELBOURNE, Australia (AP) — Novak Djokovic held off a valiant Swiss player for a 5-hour, five-set victory Sunday night, extending his winning streak to 18 matches at the Australian Open and then ripping off his shirt to celebrate.

The big surprise: It was a fourth-round match against Stanislas Wawrinka of Switzerland, not a final against Roger Federer.

Djokovic edged the 15th-seeded Wawrinka 1-6, 7-5, 6-4, 6-7 (5), 12-10 in a momentum-swinging marathon, cashing in on his third match point to reach the quarterfinals for a 15th consecutive major tournament.

The style was reminiscent of his 5-hour, 53-minute final win here last year against Rafael Nadal.

"He deserved equally to be a winner of this match," said Djokovic, who is aiming to be the first man in the Open era to win three consecutive Australian titles. "I give him a lot of credit. He has all my respect. He was the aggressive player on the court. I was just hanging in there trying to fight."

Djokovic had beaten Wawrinka — the perennial No. 2 among Swiss tennis players to 17-time major winner Federer — in their 10 previous matches. He hadn't lost a head-to-head since 2006 and had won 11 straight sets between them.

The win "brings back the memories from 12 months ago with Rafa," he said. "We are midway through the tournament but it feels like a final to me."

Djokovic next faces Tomas Berdych, the 2010 Wimbledon finalist who advanced with a 6-3, 6-2, 7-6 (13) win over South Africa's Kevin Anderson.

Wawrinka was cramping and needed massages on both legs in the fifth set. He was so tired he decided not to challenge a decision on a call that went against him — wrongly, according to TV replays.

But he didn't think it made a difference in the end.

"In five sets, five hours, you always have some opportunity to win a set or to win the match," he said. "If you don't take it, he's going to take it.

"It's by far my best match I ever play, especially in five sets against the No. 1 player ... full house. At the end I was really, really close. For sure I'm really sad. ... But I think there is more positive than negative."

Fourth-seeded David Ferrer won 6-2, 6-1, 6-4 over No. 16 Kei Nishikori of Japan to set up an all-Spanish quarterfinal against Nicolas Almagro, who was leading 6-2, 5-1 when No. 8 Janko Tipsaveric retired from their fourth-round match.

Maria Sharapova has had almost no trouble on the women's side, beating Kirsten Flipkens of Belgium 6-1, 6-0 earlier Sunday to continue a dominant and unparalleled run in Melbourne.

The late-finishing men's match almost changed the complexion of the tournament.

Critics who questioned if anybody could challenge Djokovic, Federer and U.S. Open champion Andy Murray in the absence of Nadal at this tournament got an answer quickly.

Wawrinka stunned the top-ranked Djokovic with three service breaks in the first set and led 5-2 in the second before the 25-year-old Serb rallied by winning six consecutive games. But just as Djokovic seemed to be taking control of the match, Wawrinka launched his own comeback to win a long tiebreaker and force a fifth set.

Djokovic got to serve first in the fifth, giving him a psychological edge as long as he held his serve. In the end, Wawrinka didn't quite have the big-time experience.

Wawrinka had game point in the 22nd game but let Djokovic get on a roll. He saved his first match point with a service winner, then saved another.

At 1:40 a.m. local time, Wawrinka was whacking his head with the racket and biting the ball after giving Djokovic another match point. Moments later, he was slumped on the court.

Djokovic raised both arms, walked to the net and embraced his beaten rival, then pulled of his shirt and flexed — shades of the 2012 final.

The second-ranked Sharapova has lost only five games in four matches on the way to the quarterfinals, an Australian Open record that seems immaterial to the 25-year-old Russian.

"Well, I'm certainly happy to be playing this well but ... it only gets tougher from here," said Sharapova, who is playing her first tournament of 2013 after withdrawing from a warm-up event at Brisbane because of an injured right collarbone.

Steffi Graf conceded only eight games in her opening four matches here in 1989, when she won the second of her three straight Australian Open titles. Monica Seles matched that mark.

Sharapova has been even more dominant. She started with a pair of 6-0, 6-0 wins — the first time that has happened at a major tournament since 1985 — and then beat seven-time Grand Slam winner Venus Williams 6-1, 6-3 in the third round.

Sharapova next plays fellow Russian Ekaterina Makarova, who ousted fifth-seeded Angelique Kerber 7-5, 6-4. Sharapova beat Makarova in the quarterfinals here last year before losing the final to Victoria Azarenka.

Li Na, who reached the final here in 2011 and won the French Open later that year, saved a set point in the tiebreaker before beating Julia Goerges 7-6 (6), 6-1. She'll next play No. 4 Agnieszka Radwanska, who beat No. 13 Ana Ivanovic 6-2, 6-4 for her 13th consecutive win. Radwanska won the Auckland and Sydney titles before coming to Melbourne.

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