Iran faces oil revenue problem

By John Defterios, CNN

January 8, 2013 -- Updated 1535 GMT (2335 HKT)

With elections in June, it remains unclear how energy policy will evolve after President Mahmoud Ahmadinejad's era

STORY HIGHLIGHTS

• The IEA has suggested Iraq surpassed Iran in output for the first time in over 20 years


• The Iranian people are faced with spiralling inflation and job layoffs within the state sector


• Iranian oil revenues in the country plummeted 40 percent, while gas export revenues fell by 45%

Editor's note: John Defterios is CNN's Emerging Markets Editor and anchor of Global Exchange, CNN's prime time business show focused on the emerging and BRIC markets. You can watch it on CNN International at 1600 GMT, Sunday to Thursday.

Abu Dhabi (CNN) -- All indications are that sanctions against Iran are really starting to bite and this time it is coming from the oil ministry in Tehran, which for months has denied that oil production was suffering due to international pressure.

In an interview with the Iranian Student News Agency (ISNA), Gholam Reza Kateb a member of the national planning and budget committee in Parliament referenced a report from Iran's oil minister Rostam Qasemi. In that report, the minister suggested that oil revenues in the country plummeted 40 percent, while gas and gas products' export revenues fell by 45% compared to the same period last year.

Read more: Official: Iran, nuclear watchdog group deal close

This is a hot button issue in Iran, where the currency due to sanctions has dropped 80 percent from its peak in 2011. The Iranian people are faced with spiralling inflation and job layoffs within the state sector.

I spoke with a source in Iran's representative office to OPEC who declined to comment and referred all matters to the Oil Ministry. A spokesman at the state oil company Iran Petroleum would only say "in this political climate it is difficult to confirm these statements."

Read more: Iran steps up uranium enrichment, U.N. report says

Hours later, a spokesman from the Ministry told another Iranian news agency, Mehr, that the numbers quoted about revenue and production drops are not true, although he offered no specific numbers.

Until this report to the Iranian Parliament, Minister Qasemi has maintained that Iran's production was hovering around four million barrels a day, where it was two years ago.

Read more: Opinion: Time to defuse Iranian nuclear issue

Back at the OPEC Seminar in June 2012, the minister told me that sanctions would not have any influence on plans to expand production and investment, shrugging off questions that suggested otherwise. This despite analysis to the contrary from the Paris based International Energy Agency and Vienna based OPEC of which Iran is a member.

The IEA back in July suggested that Iraq surpassed Iran in production for the first time in over two decades and production in Iran dipped to 2.9 million barrels a day. OPEC in its October 2012 survey said it slipped to 2.72 million at the time Minister Qasemi said output remained at 4 million barrels.

Minister Qasemi was recently quoted at a conference in Tehran that Iran needs to invest $400 billion over the next five years to maintain production targets and to play catch up after years of under investment.

Iran is a land full of potential. According to the annual BP Statistical Review, Iran sits on nearly 10 percent of the world's proven reserves at 137 billion barrels. The South Pars field which it shares with Qatar is one of the largest natural gas fields in the world -- but Iran, due to sanctions, cannot expand development.

This is a highly charged period. With elections in mid-June, it remains unclear how energy policy will evolve after the era of President Mahmoud Ahmadinejad passes. It has been eight years of his tough line against Washington, Brussels and other governments that put forth sanctions against Iran. It is not clear if a new President will usher in a new nuclear development policy to ease the pressure on Iran's energy sector and the country's people.

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Euro unemployment hits 'unacceptable' high

BRUSSELS: European unemployment has hit an unacceptable high, as one national leader put it on Tuesday, with dire figures in Spain highlighting a growing north-south divide that experts warn will only get worse.

The unemployment rate across the troubled 17-nation eurozone hit 11.8 per cent in November, up from 11.7 per cent in October, with the number of people out of work in the single currency area now nudging 19 million.

The 19th rise in a row for the eurozone, home to some 330 million people, represented an increase of more than two million on the dole compared with a year ago, according to data published by the EU statistics service Eurostat.

London-based IHS Global Insight analyst Howard Archer calculated the cumulative increase since April 2011 as 3.278 million after another 113,000 people lost their jobs.

"The only crumb of comfort was that this was the smallest rise since August, although it did follow a particularly sharp rise of 220,000 in October," Archer noted, before adding that he expected the jobless rate to "move clearly above 12 per cent during 2013."

The jobless numbers exceeded 26 million for the first time across the full 27-member European Union, which includes Britain and Poland, but the EU as a whole posted an unchanged unemployment rate of 10.7 per cent.

Such levels are "completely unacceptable," said Irish Prime Minister Enda Kenny, who currently holds the EU's rotating presidency, during a visit to Germany.

Eurostat figures showed that more jobs were lost over the past year in the eurozone, at 2.015 million, than in the 27-member EU, where the number was slightly lower at 2.012 million.

Hit by a property market bust and riddled with bad debt in its banks, Spain recorded the highest unemployment rate of all European countries -- at 26.6 per cent, worse even than bailed-out Greece.

Among under-25s, both those countries reported unemployment rates that hovered around 57 per cent.

According to figures that were seasonally-adjusted for comparative purposes, the November unemployment rate in key rival economies was 7.8 per cent for the United States and 4.1 per cent for Japan.

"2012 has been another very bad year for Europe in terms of unemployment and the deteriorating social situation," said European Commissioner for Employment, Social Affairs and Inclusion Laszlo Andor.

"The risk of poverty or exclusion is constantly growing," he said, warning that "most national welfare systems have lost much of their ability to protect household incomes."

He added in reference to Germany and other northern economies faring far better than Europe's southern Mediterranean rim: "The divergence is especially striking between the north and the south of the eurozone."

Giving his annual report on employment trends, Andor said it was "unlikely that Europe will see much socio-economic improvement in 2013" and called for "appropriate labour market reforms and improvements in the design of welfare systems."

The Commission concluded there was a divergence between "countries that seem trapped in a downward spiral of falling output, fast-rising unemployment and eroding disposable incomes, and those that have so far shown good or at least some resilience."

Southern and peripheral countries whose governments and companies face higher interest rates or lack access to market financing will continue to struggle, the EU executive warned.

- AFP/jc

Read More..

30 shots in 27 seconds

STORY HIGHLIGHTS

• NEW: ATF agent: Holmes bought 6,295 rounds of ammunition, four guns beginning in May


• Bomb technician testifies about materials designed to set fire inside suspect's apartment


• Police also play 911 calls from the July 20 shooting rampage


• The details come on the second day of suspect James Holmes' preliminary hearing

Centennial, Colorado (CNN) -- The recording is loud, chaotic and difficult to understand. There's too much sound to make out what the caller is saying.

Just one thing is unmistakable: the sound of gunshots.

At least 30 of them. In 27 seconds.

Prosecutors on Tuesday played the first 911 calls from the July 20 Aurora, Colorado, movie theater shooting as they continued building their case at a preliminary hearing for James Holmes, the 25-year-old former neuroscience graduate student accused of killing 12 people at a midnight showing of "The Dark Knight Rises."

Detective Randy Hansen testified that the first call to authorities came 18 minutes after the film started. More trickled in until the torrent was complete: 41 calls in all, he said.

Because the movie was still playing and, in at least one, the gunman was still stalking the theater, the calls are difficult to make out. In one, a 13-year-old girl called to say her cousins had been shot. A 911 operator tried to lead the sobbing girl through performing CPR on one who was still breathing.

Family members of victims attending the hearing held each other and choked back tears as the calls were played.

After detailing the calls, prosecutors turned to the intricate explosive web authorities say Holmes left in his apartment, including jars of homemade napalm with bullets suspended inside and topped with thermite, a material that burns so hot, it's nearly impossible to put out.

In photos displayed in court, the mixture looked like amber-colored gelatin.

Elsewhere in the sparsely decorated apartment, a container of glycerin hung connected to a tripwire, ready to tip into a frying pan that held a homemade substance that would have sent sparks flying onto carpets soaked in oil and gas -- setting them aflame, FBI bomb technician Garrett Gumbinner testified. A robot sent inside discovered the tripwire.

He said Holmes also told him that he had left a boombox by a trash container outside his apartment rigged to start playing loud music 40 minutes after he turned it on.

Next to it, Holmes said he left a remote-control toy car and a control device set to control the explosives inside his apartment, Gumbinner testified.

It was not immediately clear whether authorities found such a device. Gumbinner said he did not clear the outside of the building.

Also, Steve Beggs, a supervisory agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives, testified that Holmes had purchased 6,295 rounds of ammunition and four firearms beginning in May. Ten weeks before the attack, on May 10, he bought two canisters of tear gas over the Internet, Beggs said.

He was still buying materials into July, Beggs said, testifying that authorities have video of Holmes buying an accessory at a Colorado gun store on July 1. In the video, he said, Holmes' hair is bright orange.

The details came on the second day of Holmes' preliminary hearing, which could last all week. It is meant to prove to Arapahoe County District Judge William Sylvester that prosecutors have enough evidence to proceed to trial.

Colorado massacre: Mourning the victims

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The public gets its first glimpse of James Holmes, 24, the suspect in the Colorado theater shooting during his initial court appearance Monday, July 23. With his hair dyed reddish-orange, Holmes, here with public defender Tamara Brady, showed little emotion. He is accused of opening fire in a movie theater Friday, July 20, in Aurora, Colorado, killing 12 people and wounding 58 others. More photos: Mourning the victims of the Colorado theater massacre

Colorado movie theater shooting

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Holmes' attorneys are expected to seek a "diminished capacity" defense that could prevent the case from getting that far.

In Monday's first day of testimony, police officers recounted arriving at the movie theater to find a detached, sweaty Holmes outside and a horrific scene inside the theater, where the floor had become slippery with blood and cell phones rang unanswered.

While none of the law enforcement witnesses who testified Monday offered insight into a possible motive for the shooting, some new details emerged.

Prosecutors aired surveillance camera video taken inside the theater complex that shows a man they say is Holmes dressed in dark trousers, a light-colored shirt with a T-shirt underneath and a ski cap. In the video, the man is shown using a cell phone at a ticket kiosk.

Aurora survivors: How they're doing

Holmes printed out a ticket that had been purchased on July 8, they said.

After going into the theater, Holmes apparently popped a small plastic piece commonly used to secure tablecloths onto an outside door, preventing it from closing, Police Sgt. Gerald Jonsgaard testified. Authorities believe Holmes then went outside, armed himself and returned to the theater to begin killing.

While no cameras captured the shooting inside the theater, cameras outside captured the aftermath as waves of people ran out. One employee leaped over a counter to escape.

Police Officer Jason Oviatt, the first officer to encounter Holmes after the rampage ended, testified Monday that Holmes seemed "very, very relaxed."

Holmes, sweating and smelly, his pupils dilated, didn't struggle or even tense his muscles as he was dragged away to be searched.

"He seemed very detached from it all," Oviatt testified, describing Holmes as unnaturally calm amid the chaos and carnage.

Aurora police Officer Justin Grizzle, a 13-year veteran, wiped away tears Monday while describing his efforts to rush badly wounded victims to a hospital in his police cruiser, including shooting victim Ashley Moser and her husband, who wanted Grizzle to turn around and head back to the theater.

"He was shot in the head somewhere. He kept asking where his ... daughter was," Grizzle said. "He opened the door and tried to jump out."

Grizzle said he had to drive and hold the man by his shoulder to keep him in the car.

The girl the man was seeking, 6-year-old Veronica Moser-Sullivan, was shot four times and was among those killed. Veronica's mother, Ashley, faces a long recovery after being paralyzed in her lower body and miscarrying after the shooting.

The scene was still gruesome when Detective Matthew Ingui arrived 12 hours later with other investigators.

"We saw the first victim laying on the ground," he said "There's shoes, blood, body tissue and popcorn on the floor."

Blood was everywhere, he said.

Holmes had no visible reaction during the testimony.

Investigators found 209 live rounds of .223-caliber ammunition and 15 cartridges of .40-caliber rounds inside the auditorium, Ingui said.

Holmes was a doctoral student in Aurora, in the neuroscience program at the Anschutz Medical Campus of the University of Colorado, Denver, until he withdrew a month before being arrested outside the bullet-riddled movie theater. He had been a patient of a University of Colorado psychiatrist, according to a court document filed by his lawyers.

His attorneys are expected to argue that their client has "diminished capacity," a term that, according to the Colorado Bar Association, relates to a person's ability or inability "to make adequately considered decisions" regarding his or her legal representation because of "mental impairment or for some other reason."

Several times, on cross-examination, the attorneys have asked witnesses about Holmes' demeanor and what he looked like when police found him.

Holmes did not speak during Monday's hearing. His bushy hair and long beard contrasted with the bright red hair and close-cropped facial hair he sported during previous appearances.

During portions of the hearing, family members of victims held one another, sobbing.

Security was tight. Spectators had to pass through a metal detector and then were searched again before entering the courtroom. At least nine armed officers stood guard inside, some of them scanning the audience packed with reporters and victims' family members.

University releases e-mails related to Holmes

CNN's Casey Wian and Jim Spellman reported from Colorado; Michael Pearson wrote from Atlanta. CNN's Michael Cary and Greg Botelho also contributed to this report.

Read More..

FBI: Booby trap at Holmes' Aurora home had napalm

Updated at 2:36 p.m. ET

CENTENNIAL, Colo. An elaborate booby trap system allegedly set up to pull police away from the Colorado theater shooting included improvised napalm and thermite, which burns so hot that water can't put out the blaze.

FBI bomb technician Garrett Gumbinner described the system Tuesday at a hearing in which prosecutors laid out their case against suspected gunman James Holmes.

He said three different ignition systems were found in Holmes' apartment. There was a thermos full of glycerin leaning over a skillet full of another chemical. Flames and sparks are created when they mix, and a trip wire linked the thermos to the door.

Police said Holmes hoped a boom box on a timer would lure someone to the apartment.

23 Photos

The Aurora shooting victims

Play Video

Witnesses testify in Colo. movie theater shooting hearing

Prosecutors are trying to show in what is expected to be a weeklong hearing that the attack that killed 12 and wounded dozens July 20 was a premeditated act and that Holmes should stand trial.

Defense attorneys say he is mentally ill.

Daniel King, one of Holmes' lawyers, on Monday pointedly asked a pathologist who had just detailed each of the fatalities: "You're aware that people can be found not guilty on the grounds of insanity?"

When officers arrived at the theater, they found Holmes standing next to his car. At first, Officer Jason Oviatt said, he thought Holmes was a policeman because of how he was dressed but then realized he was just standing there and not rushing toward the theater.

Oviatt said Holmes seemed "very, very relaxed" and didn't seem to have "normal emotional reactions" to things. "He seemed very detached," he said.

At one point, after arresting Holmes, Grizzle asked him if anyone had been helping him or working with him. "He just looked at me and smiled ... like a smirk," Grizzle recalled.

So far, the hearing has focused on the horror Aurora police officers discovered at the theater. The magnitude of the attack could be heard in the first 911 call to police, played Tuesday in court. It lasted 27 seconds and police say at least 30 shots could be heard.

The call came in 18 minutes into the showing of "The Dark Knight Rises."

Police also played a 911 call from a teenage cousin of 6-year-old Veronica Moser-Sullivan, the youngest person killed. A dispatcher tried to talk her through CPR but she sounded panicked and said she couldn't hear.

Play Video

Prosecutors: Holmes threatened university prof.

A bearded and disheveled Holmes stared straight ahead as the calls were played and didn't show any emotion.

Holmes also showed little emotion on Monday as police officers struggled to hold back tears during their testimony, reciting a litany of heartbreak: discovering Moser-Sullivan without a pulse, trying to keep a wounded man from jumping out of a moving police car to go back for his 7-year-old daughter, screaming at a gunshot victim not to die.

"After I saw what I saw in the theater — horrific — I didn't want anyone else to die," Grizzle said.

Holmes watched intently as one detective showed a surveillance video of him calmly entering the theater lobby, holding the door open for a couple behind him, and printing out tickets to the midnight showing of "The Dark Knight Rises" that he purchased electronically nearly two weeks earlier. Authorities did not show a video of the attack but say Holmes, wearing body armor, tossed two gas canisters into the packed theater, then opened fire.

Play Video

Psychiatrist who treated Holmes testifies

The hearing will be the best opportunity yet for survivors to find out about Holmes' mental state and the sequence of events that led up to the attack. It comes weeks after a shooting at a Newtown, Conn., school killed 20 children and six adults and increased scrutiny on the combustible mix of firearms and mental illness.

Holmes is charged with more than 160 counts, including murder and attempted murder. The hearing will allow the judge to determine whether the prosecution's case is strong enough to warrant a trial, but it's rare for a judge not to order a trial if a case gets this far.

Legal analysts say that evidence appears to be so strong that Holmes may well accept a plea agreement before trial.

While prosecutors have yet to decide on whether they will seek the death penalty, such a plea could get Holmes a lesser sentence, such as life in prison; help the state avoid a costly trial; and spare survivors and families of those who died from the trauma of going through a lengthy trial.

Read More..

James Holmes' Elaborate Booby Trap Plan Revealed

A gasoline-soaked carpet, loud music and a remote control car were part of an elaborate plan by accused Aurora gunman James Holmes' to trick someone into triggering a blast that would destroy his apartment and lure police to the explosion while he shot up a movie theater in Aurora, Colo., according to court testimony today.

FBI agent Garrett Gumbinner told a Colorado court about Holmes' complex plans to booby trap his apartment. Gumbinner said he interviewed Holmes on July 20, hours after he killed 12 and wounded 58 during the midnight showing of "The Dark Knight Rises."

"He said he rigged the apartment to explode to get law enforcement to send resources to his apartment instead of the theater," Gumbinner said.

Click here for full coverage of the Aurora movie theater shooting.

His plan failed to prompt someone into triggering the bombs.

Gumbinner said Holmes had created two traps that would have set off the blast.

The apartment was rigged with a tripwire at the front door connected to a mixture of chemicals that would create heat, sparks and flame. Holmes had soaked the carpet with a gasoline mixture that was designed to be ignited by the tripwire, Gumbinner said.

"It would have caused fire and sparks," the agent said, and "would have made the entire apartment explode or catch fire."

Holmes had set his computer to play 25 minutes of silence followed by loud music that he hoped would cause a disturbance loud enough that someone would call police, who would then respond and set off the explosion by entering the apartment.

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Gumbinner said Holmes also told him he rigged a fuse between three glass jars that would explode. He filled the jars with a deadly homemade chemical mixture that would burn so hot it could not be extinguished with water.

Holmes set a second detonation system outside the building, the agent said.

Holmes, Gumbinner said, rigged one of the triggering devices, called a "pyro trip box" with a remote control. He then took the remote control outside and placed it on top of a white trash bag near the apartment building.

Next to the remote, Holmes placed a remote control car. Inside the trash bag, he put a portable stereo set to play 40 minutes of silence, followed by loud music, the agent said.

The plan, Gumbinner explained, was for someone to hear the music and be drawn to the remote control car with what appeared to be the remote control lying next to it. When that person picked up the remote to activate the car, he or she would have unknowingly triggered the explosion in the apartment.

Holmes also left rows of white powder on the floor, which Gumbinner said was ammonium chloride. The powder, Gumbinner believes, was meant "to scare us" and would have created a large amount of smoke if it had ignited.

Prosecutors showed several photographs of the devices in court.

Earlier in the day, prosecutors played two 911 calls in court, including the very first call from movie goer Kevin Quinonez as the shooting was still underway.

At least 30 rapid-fire gunshots could be heard in the background of the 27-second call, along with screaming.

"Gunshots?" Quinonez can be heard saying.

The dispatcher pleads with Quinonez to give the theater address, but the sound of gunshots and chaos drowns him out.

"Say it loud," the dispatcher pleads before the call goes dead.

In a second call, Kaylan Bailey calls to say her two cousins, Ashley Moser and Veronica Moser Sullivan, have been shot. One is breathing and the other is not, she says.

"Are there officers near you?" the dispatcher asks.

Amid the noise and confusion, the dispatcher pleads with the Bailey to start CPR on 6-year-old Veronica Moser Sullivan, who has stopped breathing. Veronica later died.

Victims and families listening to the calls in the courtroom were weeping openly and holding hands. One woman buried her face in her hands. Holmes showed no emotion.

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Many French aghast at Depardieu exit

STORY HIGHLIGHTS

• Russian President Vladimir Putin has bestowed Russian citizenship on actor Gérard Depardieu


• For Depardieu, a public war of words erupted, with many in France disgusted by his move


• Depardieu more than anyone, represents the Gallic spirit, says Agnes Poirier


• Majority of French people disapprove of his action but can't help loving him, she adds

Agnes Poirier is a French journalist and political analyst who contributes regularly to newspapers, magazines and TV in the UK, U.S., France, Italy. Follow her on Twitter.

Paris (CNN) -- Since the revelation on the front page of daily newspaper Libération, on December 11, with a particularly vicious editorial talking about France's national treasure as a "former genius actor," Gérard Depardieu's departure to Belgium, where he bought a property just a mile from the French border, has deeply divided and saddened France. Even more so since, as we have learnt this week, Russian President Vladimir Putin has bestowed the actor Russian citizenship.

Read more: Depardieu's puzzling love for Russia

Back in mid-December, the French media operated along political lines: the left-wing press such as Libération couldn't find strong enough words to describe Depardieu's "desertion" while right-wing publications such as Le Figaro, slightly uneasy at the news, preferred to focus on President François Hollande's punishing taxes which allegedly drove throngs of millionaires to seek tax asylum in more fiscally lenient countries such as Belgium or Britain. Le Figaro stopped short of passing moral judgement though. Others like satirical weekly Charlie hebdo, preferred irony. Its cover featured a cartoon of the rather rotund-looking Depardieu in front of a Belgian flag with the headline: "Can Belgium take the world's entire load of cholesterol?" Ouch.

Quickly though, it became quite clear that Depardieu was not treated in the same way as other famous French tax exiles. French actor Alain Delon is a Swiss resident as is crooner-rocker Johnny Halliday, and many other French stars and sportsmen ensure they reside for under six months in France in order to escape being taxed here on their income and capital. Their move has hardly ever been commented on. And they certainly never had to suffer the same infamy.

Read more: Actor Depardieu makes Russia trip after accepting citizenship

Agnes Poirier

For Depardieu, a public war of words erupted. It started with the French Prime Minister Jean-Marc Ayrault, and many members of his government, showing their disdain, and talking of Depardieu's "pathetic move." In response the outraged actor penned an open letter to the French PM in which he threatened to give back his French passport.

The backlash was not over. Fellow thespian Phillipe Torreton fired the first salvo against Depardieu in an open letter published in Libération, insulting both Depardieu's protruding physique and lack of patriotism: "So you're leaving the ship France in the middle of a storm? What did you expect, Gérard? You thought we would approve? You expected a medal, an academy award from the economy ministry? (...)We'll get by without you." French actress Catherine Deneuve felt she had to step in to defend Depardieu. In another open letter published by Libération, she evoked the darkest hours of the French revolution. Before flying to Rome to celebrate the New Year, Depardieu gave an interview to Le Monde in which he seemed to be joking about having asked Putin for Russian citizenship. Except, it wasn't a joke.

Read more: French star Depardieu ditches France for Putin's Russia

In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit. He has been Cyrano, he has been Danton; he, better than most, on screen and off, stands for what it means to be French: passionate, sensitive, theatrical, and grandiose. Ambiguous too, and weak in front of temptations and pleasures.

In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit
Hugh Miles

For more than two weeks now, #Depardieu has been trending on French Twitter. Surveys have showed France's dilemma: half the French people understand him but there are as many who think that paying one's taxes is a national duty. In other words, a majority of French people disapprove of his action but can't help loving the man.

Read more: Paris promises flurry of economic reforms

Putin's move in granting the actor Russian citizenship has exacerbated things. And first of all, it is a blow to Hollande who, it was revealed, had a phone conversation with Depardieu on New Year's Day. The Elysées Palace refused to communicate on the men's exchange. A friend of the actor declared that Depardieu complained about being so reviled by the press and that he was leaving, no matter what.

If, in their hearts, the French don't quite believe Depardieu might one day settle in Moscow and abandon them, they feel deeply saddened by the whole saga. However, with France's former sex symbol Brigitte Bardot declaring that she too might ask Putin for Russian citizenship to protest against the fate of zoo elephants in Lyon, it looks as if the French may prefer to laugh the whole thing off. Proof of this: the last trend on French Twitter is #IWantRussianCitizenship.

Read more: Brigitte Bardot threatens to spurn France, embrace Russia if 2 elephants killed

The opinions expressed in this commentary are solely those of Agnes Poirier.

Read More..

Colorado gunman 'relaxed' after theatre massacre

CENTENNIAL: The alleged gunman behind the Colorado theatre shooting was relaxed and cooperative when arrested after the massacre which killed 12 people, an officer told a court hearing Monday.

James Holmes, who was wearing body armour and a mask, told police his name and volunteered that there were improvised explosive devices rigged up in his apartment, when detained after the shooting last July in Aurora, Colorado.

Holmes, sporting dark brown hair and a full beard, was led into court in handcuffs at the start of a week-long hearing expected to hear more details about the shooting, which revived America's perennial debate over gun control.

Clad in dark red prison scrubs, Holmes -- who had bright orange hair when he first appeared in court last July -- stared straight ahead and talked to no one in the courtroom, as relatives of the victims looked on.

Aurora policeman Jason Oviatt told the court how he at first thought Holmes was another officer when he arrived with dozens of other police, in response to 911 calls about the midnight shooting at a screening of the new Batman film.

Holmes had his hands on the top of a white car at the back of the building, and as Oviatt approached, he saw he was not a fellow officer.

"As I got closer the man was just standing there, not moving. The overall picture didn't match a police officer as I got closer," said Oviatt, one of two officers who testified at the opening court session.

The 25-year-old offered no resistance when ordered him to put his hands up, he said.

"He was completely compliant ... He was very relaxed, there weren't normal reactions to anything ... He was very detached," he said, adding: "He seemed to be out of it, and disoriented."

Fellow policeman Aaron Blue said Holmes told officers his name, home address, and that he had four weapons. "He volunteered there were no bombs here, but he had improvised explosive devices at his home," he said.

The alleged attack took place on July 20 in an opening midnight screening of the blockbuster Batman movie, "The Dark Knight Rises," at the Century 16 theatre in Aurora.

Witnesses said Holmes threw smoke bomb-type devices before opening fire randomly with weapons including an AR-15 rifle, a 12-gauge shotgun and a .40-caliber pistol.

His one-bedroom apartment was later found to be booby-trapped with an array of home-made explosive devices, which police had to disarm before entering the dwelling.

In the last five months some details have leaked out, including that Holmes was being treated by a psychiatrist at the University of Colorado, where he was a doctoral student in neuroscience until shortly before the shootings.

But much has been kept confidential as part of the pre-trial judicial process, and this week's hearing is expected to reveal a good deal of previously-undisclosed evidence.

Prosecutors will build up their case that the shootings were a premeditated act of mass murder, while Holmes' lawyers may try to pick holes in evidence. It is unclear if they will argue that he is mentally unfit to stand trial.

The Aurora massacre, which also wounded at least 70, revived the perennial US debate over gun control -- an issue re-ignited even more intensely by last month's shooting of 20 young children at a Connecticut elementary school.

Only two days before Monday's hearing a gunman killed three people in Aurora itself, before police shot him dead. He had barricaded himself inside a house with his victims' bodies Saturday, but a woman escaped and raised the alarm.

- AFP/jc

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Obama: Hagel is the leader our troops deserve

Chuck Hagel's military, government career

Chuck Hagel's military, government career

Chuck Hagel's military, government career

Chuck Hagel's military, government career

Chuck Hagel's military and government career

Chuck Hagel's military, government career

Chuck Hagel's military and government career

Chuck Hagel's military, government career

Chuck Hagel's military, government career

Chuck Hagel's military and government career

Chuck Hagel's military, government career

Chuck Hagel's military, government career

Chuck Hagel's military, government career

Chuck Hagel's military, government career

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STORY HIGHLIGHTS

• NEW: Hagel vows to work to advance "freedom, decency, and humanity"


• Obama says Hagel is "the leader that our troops deserve"


• Several GOP lawmakers voicing staunch opposition to his nomination


• Hagel has taken controversial positions on several issues that could be on his plate

(CNN) -- He forged his views of war and the military as a young man in mine-plagued fields of Vietnam. Now Chuck Hagel may become the first Vietnam veteran and first enlisted soldier to serve as U.S. defense secretary.

He would also be one of the few Pentagon chiefs ever to have been wounded in war, President Barack Obama said in announcing his selection on Monday to take over for outgoing Defense Secretary Leon Panetta.

Obama said Senate confirmation of Hagel would be "historic."

But for Hagel, the road from nomination to confirmation is packed with obstacles -- political landmines that could derail the effort.

"Chuck Hagel is the leader that our troops deserve," the president said, calling him a "patriot" who fought alongside his brother in Vietnam -- and each saved the other. Hagel still "bears the scars" from the battles "he fought in our name," Obama said.

"He understands that sending young Americans to fight and bleed in the dirt and mud is something that we only do when it's absolutely necessary."

Hagel said in return that he was "honored by your trust and confidence in me and not unmindful of the immense responsibilities that go with it."

Praising troops who serve with "such dignity and selflessness," Hagel expressed support for military families as well, specifically "who have sacrificed so much over more than a decade of war" in Afghanistan.

He vowed to work to "strengthen our country's alliances and advance global freedom, decency and humanity" in the effort to "build a better world for all mankind."

Obama also announced his selection of counterterrorism adviser John Brennan to lead the CIA.

Noting that Hagel is a Republican, Obama said the selection "represents the bipartisan tradition that we need more of in Washington."

But much of the Republican establishment begs to differ.

"He has long severed his ties with the Republican Party," Sen. Lindsey Graham, R-South Carolina, said Sunday. Graham called the selection "an in-your-face nomination by the president to all of us who are supportive of Israel."

Questions over Hagel's support of Israel are just one of the controversies swirling around him. Numerous concerns could lay the groundwork for sparks at Senate confirmation hearings.

Read more: Choice in Hagel sparks mixed reactions

"Let's just say if Chuck Hagel is nominated," CNN Chief Political Correspondent Candy Crowley said Sunday, "set your TiVo for the hearings."

Some of flashpoints that his critics point to are the same ones that his vocal supporters like.

Hagel has said he favored U.S. negotiations with Iran and opposed increased sanctions. He has supported Israel entering negotiations with Hamas, though also insisted Hamas end terrorism and accept Israel's right to exist.

And the former U.S. senator from Nebraska has criticized U.S. policy on Afghanistan, including a 2009 "surge" that sent in 30,000 additional troops. If he becomes defense secretary, Hagel will face the challenge of ending that U.S.-led war and overseeing a smaller training force in the country.

But the controversies surrounding Hagel aren't just about his policy positions. They're also about his views.

Some are bothered by a comment he made in 1998 about an ambassadorial candidate being "aggressively gay" -- which he recently apologized for. And in a 2007 interview, he said a "Jewish lobby intimidated lawmakers" -- sparking heated criticism. A rabbi in Hagel's home state insists he is "a friend of Israel."

Read more: White House officials reach out to Jewish community to answer Hagel concerns

Graham told CNN he believes that if confirmed, Hagel "would be the most antagonistic secretary of defense towards the state of Israel in our nation's history."

Sen. Chris Murphy, a freshman Democrat from Connecticut, said that he believes "Republicans are spoiling for a fight."

The rhetoric over Hagel on both sides is ratcheting up.

Past controversies have led presidents to pull some nominations. But the bumpy road ahead is unlikely to faze the 66-year-old at the center of it all.

"Chuck Hagel is not afraid of challenge -- or risk," his biographer, Charlyne Berens, wrote in 2006.

'All I can to prevent war'

If he becomes defense secretary, Hagel will be tasked with carrying out the orders of a president who vowed to end two wars -- Iraq and Afghanistan.

Ending and avoiding war are part of what he committed his life to while in his 20s in Vietnam, Berens writes.

"After a year of Vietnam's miserable heat, nearly constant danger, and violent campaigns like the Tet Offensive, Chuck Hagel came back to the United States ready to get on with things -- and with both a loyalty to the U.S. military and a belief he should do all he could to prevent his nation's being involved in another war."

Read more: Chuck Hagel's views on war forged by Vietnam experience

His fierce opposition to the Iraq War, launched by President George W. Bush, went far toward creating the schism that now exists between him and the Republican establishment.

"The damage this war has done to our country will play out for years to come," he wrote in his 2008 book, "America: Our Next Chapter."

"While it is easy for nations to blunder into war, they never blunder into peace," he added.

"If I ever get out, if I ever can influence anything, I will do all I can to prevent war," he told Berens.

His opposition to the 2009 surge in Afghanistan put him at odds with the president who is now nominating him. The surge showed a rare moment of support for Obama among many Republicans, with Hagel as a standout exception.

But his willingness to be an independent voice has won him cheers as well.

"He's a guy with really serious foreign policy chops and someone, frankly, who hasn't been afraid to depart from his party when he thought they were wrong," Murphy said in an interview with CNN.

Apology for 'insensitive' remark

As defense secretary, Hagel would oversee a military that recently dropped its "Don't Ask, Don't Tell" policy for gay and lesbian personnel -- a policy he supported. Battles continue over whether same-sex marriages can take place at some U.S. bases.

So his perspective on gays and lesbians carries particular weight.

In 1998, he opposed James Hormel, an openly gay man, for an ambassadorship. Hagel questioned whether Hormel was suitable, describing him as "openly, aggressively gay."

In December, 14 years later, he apologized, calling those comments "insensitive."

"They do not reflect my views. I apologize to Ambassador Hormel and any LGBT (Lesbian, Gay, Bisexual, and Transgender) Americans who may question my commitment to their civil rights."

The Log Cabin Republicans, a group that supports gay rights, argues the apology was "too little, too late."

But gay rights activist Rick Jacob, head of the Courage Campaign, said he supports the president making his choice for defense chief, and noted that "no one trying to derail (Hagel's) nomination attacks his qualifications."

Hagel's support for Israel questioned

Concerns about Hagel's support for Israel could prove to play a big role in confirmation hearings.

In addition to calling for talks with Iran, which openly antagonizes Israel, Hagel has spoken out against some additional sanctions -- a cornerstone of Obama's foreign policy aimed at pressuring Tehran amid questions about the country's nuclear program.

Graham noted that Hagel has wanted Israel to talk with Hamas, a "terrorist group that lobs thousands of rockets into Israel. He also was one of 12 senators who refused to sign a letter to the European Union trying to designate Hezbollah as a terrorist organization."

That and questions about his remark on a "Jewish lobby" have drawn criticism from across the political spectrum and from some Jewish organizations.

"Senator Hagel would not have been my first choice, but I respect the president's prerogative," Abraham Foxman, head of the Anti-Defamation League, said in a statement.

"I trust that the confirmation process will provide an opportunity for Sen. Hagel to address concerns about his positions. ... I particularly hope Senator Hagel will clarify and explain his comments about the "Jewish Lobby" that were hurtful to many in the Jewish community."

Hagel joined two other senators in introducing a resolution in June, 2007, pushing for a two-state solution to the Israeli-Palestinian conflict. The resolution called on Hamas "to recognize the State of Israel's right to exist, to renounce and end all terror and incitement, and to accept past agreements and obligations with the State of Israel."

Rabbi Aryeh Azriel of Temple Israel in Omaha, Nebraska, a longtime friend of Hagel's, told CNN that Hagel is "definitely a friend of Israel. He is independent, has wonderful, fresh ideas to try to reengage the discussion about the Middle East."

Azriel grew up in Israel, and said he personally supports the idea of doors being "opened for negotiation even with Hamas and Hezbollah."

'Thorough vetting' ahead

Sen. Mitch McConnell, the Republican leader in the Democratic-controlled Senate, vowed Hagel would receive a "thorough vetting" just like any other presidential nominee.

"Whoever is nominated for secretary of defense is going to have to have a full understanding of our close relationship with our Israeli allies, the Iranian threat, and the importance of having a robust military," McConnell said on ABC's "This Week." "And if Sen. Hagel is nominated, he'll be subjected to the same kinds of review of his credentials as anyone else."

Hagel, in his remarks Monday, emphasized his willingness to speak his mind. "Mr. president, I will always give you my honest and most informed council," he vowed.

While he did not discuss his views on any of the flashpoint issues during his brief comments, a line from Hagel's 2006 biography offers insight into how he would lead at the Pentagon.

"I'm a hard-edged realist. I understand the world as it is," he said. "But war is a terrible thing. There's no glory, only suffering."

CNN's Mike Mount, Kevin Liptak, Jill Dougherty, and Catherine Shoichet contributed to this report.

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Vitter: Harry Reid "an idiot" for Katrina comments

Sen. David Vitter, R-La, took to Twitter to slam Senate Majority Leader Harry Reid, D-Nev., for comments he made comparing Hurricane Katrina victims to superstorm Sandy victims.

"Sadly, Harry Reid has again revealed himself to be an idiot, this time gravely insulting Gulf Coast residents," Vitter wrote today.

He's referring to comments Reid made on the floor of the Senate Friday where expressed disbelief for how long it took for Congress to approve federal disaster relief for New York and New Jersey. He said the people affected by Katrina in 2005 were impacted, "but nothing in comparison" to those impacted by Sandy. Katrina killed over 1,800 people and caused $145 billion in damage; 120 died after Sandy hit and the storm caused an estimated $80 billion in damage.

"The people of New Orleans and that part, they were hurt, but nothing in comparison to what's happened to the people in [New York and New Jersey]. Almost a million people lost their homes. That's homes, not people in their homes," Reid said.

Affected states have been pleading for federal assistance for more than two months, but the federal government has been slow to act because of opposition in the House over the high price tag. Reid noted that the federal government responded "within days" with federal aid for Katrina-disaster areas.

Congress did pass $9.7 billion in Sandy aid Friday as its last action before leaving town for more than a week, and one of the first actions of the new 113th Congress. House Speaker John Boehner, R-Ohio, promised an additional $50 billion in aid once the House returns next week.

On his Facebook page, Vitter reiterated his sentiment, but added, "And by most any measure, Katrina was our worst natural disaster in history."

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Accused Shooter Was 'Relaxed' After Massacre

Accused movie theater gunman James Holmes was "relaxed" and "detached" when police confronted him just moments after he had allegedly killed 12 people and wounded dozens more in the Aurora, Colo., massacre, a police officer testified today.

A preliminary hearing for Holmes began today in Colorado, with victims and families present. One family member likened attending the hearing to having to "face the devil."

The first two witnesses to take the stand were Aurora police officers who responded to the theater and spotted Holmes standing by his car at the rear of the theater.

Officer Jason Oviatt said he first thought Holmes was a cop because he was wearing a gas mask and helmet, but as he got closer realized he was not an officer and held Holmes at gunpoint.

Holmes allegedly opened fire at the crowded movie theater during a midnight showing of "The Dark Knight Rises" on July 20, 2012. In addition to wearing the body armor and gas mask, Holmes had dyed his hair red.

Click here for full coverage of the Aurora movie theater shooting.

Throughout the search and arrest, Holes was extremely compliant, the officer said.

"He was very, very relaxed," Oviatt said. "These were not normal reactions to anything. He seemed very detached from it all."

Oviatt said Holmes had extremely dilated pupils and smelled badly when he was arrested.

Arapahoe County Sheriff/AP Photo

Aurora, Colorado Gunman: Neuroscience PhD Student Watch Video

Officer Aaron Blue testified that Holmes volunteered that he had four guns and that there were "improvised explosive devices" in his apartment and that they would go off if the police triggered them.

Holmes was dressed for the court hearing in a red jumpsuit and has brown hair and a full beard. He did not show any reaction when the officers pointed him out in the courtroom.

This is the most important court hearing in the case so far, essentially a mini-trial as prosecutors present witness testimony and evidence—some never before heard—to outline their case against the former neuroscience student.

The hearing at the Arapahoe County District Court in Centennial, Colo., could last all week. At the end, Judge William Sylvester will decide whether the case will go to trial.

Prosecutors say they will present potentially gruesome photos and videos in addition to 911 calls from the night of the shooting that left 12 people dead and 58 wounded. They will aim to convince the judge that there is enough evidence against Holmes to proceed to a trial.

It is expected that the prosecution's witnesses will include the Aurora police lead detective, first responders, the coroner and a computer forensic specialist.

In an unusual move, defense attorneys may call two witnesses. Last week, the judge ruled that Holmes can call the witnesses to testify on his "mental state," but it is not clear who the witnesses are.

A court-imposed gag order days after the shooting has kept many of the details under wraps, so much of the information could be new to the public.

Hundreds of family members and victims are expected to attend the hearing.

Holmes has been charged with 166 counts of murder, attempted murder, possession of explosives and crime of violence. The district attorney has not decided whether to seek the death penalty, and Holmes' defense team believes Holmes is mentally ill. He has not entered a plea.

One of the attendees will be MaryEllen Hanson, whose great-niece Veronica Moser Sullivan, 6, was killed in the shooting. Veronica's mother Ashley was shot and is now a quadriplegic and suffered a miscarriage.

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