2013 in Review: Tragedy, Transition, Triumph

Dec. 30, 2013 8:45 p.m. ETThe economy mended in the U.S. and Japan, stock markets set records and America avoided intervention in another war.
But 2013 also brought a typhoon that killed thousands, an attack on a shopping mall in Africa that killed dozens and a bombing at the Boston Marathon that left three dead.
Here are our summaries of significant news events of the year that just ended.
—Compiled by Paul Geitner and Bart Ziegler
Health Law Hits More Roadblocks

Health Secretary Kathleen Sebelius before Congress on the health exchange. J. Scott Applewhite/Associated Press

After years of controversy over the Affordable Care Act, the Obama administration launched an online exchange Oct. 1 to allow people to sign up for insurance under the law—and stepped into more controversy.
The exchange, which serves residents in 36 states that didn’t set up their own sites, proved to be poorly designed, underpowered and filled with glitches. Many consumers couldn’t get past the opening screen because the site froze, while others who got as far as filling out applications often found they couldn’t shop for policies.
As Republican critics of the law howled, the administration promised fixes. It called in computer experts and put a new official in charge of the repair effort. Slowly, the site’s response time improved and more people could sign up.

Still, insurers said they discovered errors in many of the applications they received, including inaccurate eligibility determinations. In some cases, children meant to be enrolled in their parents’ plan aren’t listed, said one big insurer.
The number of Americans who have gained coverage through the exchange is far lower than the administration’s projections, but the signup rate rose in recent weeks.
The administration urged insurers to loosen their rules, including covering people retroactively who miss the Jan. 1 deadline to pay premiums for next year.
Marathon Bombing Incites New Fears

Police respond to explosions at the Boston Marathon in April. The blasts left three dead, more than 260 wounded and a country fearing what initially appeared to be another international terrorist attack in the U.S. Associated Press/The Boston Globe/John Tlumacki

On April 15, two bombs built from explosive-packed pressure cookers went off near the Boston Marathon finish line. The blasts left three people dead, more than 260 wounded and a nation terrified about what some at first thought was another international terrorist attack on U.S. soil.
One of the men allegedly behind the blasts, 26-year-old Tamerlan Tsarnaev, died four days later amid a firefight with police. His brother, Dzhokhar Tsarnaev, 19, faces charges that include using a weapon of mass destruction and the fatal shooting of a Massachusetts Institute of Technology police officer while they fled. He has pleaded not guilty and could face the death penalty.
Friends described Dzhokhar Tsarnaev, an ethnic Chechen and naturalized American citizen who grew up in Cambridge, Mass., as a typical college student with no apparent interest in jihad.
His indictment cites extremist writings he allegedly downloaded and messages he allegedly scrawled in a boat where police found him hiding, which say he was avenging Muslim deaths.
His older brother had spent six months in Russia’s restive Dagestan region in 2012. Officials there said the Russian security service suspected he was trying to join local Islamist fighters.
U.S. investigators have said they believe the brothers were acting on their own.
Snowden’s Disclosures About NSA Kept Coming, Sparking an Uproar
What was known in spy circles as the Summer of Snowden became the Winter of Snowden as disclosures by former National Security Agency contractor Edward Snowden kept coming.
Mr. Snowden’s June 5 release of a top-secret court order forcing Verizon Communications Inc. to hand over phone records to the agency of all its customers triggered what became, in the words of one top NSA official, “the hardest problem we’ve had to face in 62 years of existence.”
The NSA admitted it has been collecting nearly all Americans’ phone records and holding them for at least five years. Mr. Snowden—who received asylum in Russia and whose lawyer has promised additional appearances by him—also disclosed an NSA program that collects account information from companies such as Google Inc. and Yahoo Inc.
A report in The Wall Street Journal, not based on Mr. Snowden’s documents, revealed the NSA taps the U.S. Internet backbone using relationships with phone companies that handle 75% of U.S. Internet traffic. Documents later released by the government showed that the NSA mismanaged the program and violated a court order for years by accidentally collecting tens of thousands of purely domestic communications.
The Snowden documents incited an international uproar in showing the NSA spied on targets such as the Chinese government and allies including German Chancellor Angela Merkel.
The monitoring of Ms. Merkel, which administration officials say President Barack Obama learned of only when the administration begin reviewing NSA programs this summer, prompted outrage from some of the NSA’s strongest supporters.
Other reports showed how the NSA sought to break commercial encryption capabilities and other Internet security mechanisms, further angering U.S. technology companies and advocates of Internet freedom.
The U.S. was left looking hypocritical when documents revealed NSA spying on Chinese telecom infrastructure after U.S. officials had accused China’s main phone-equipment maker of using its American presence to try to spy on the U.S.
In recent weeks, a federal judge ruled that the NSA’s collection of phone data was legal—while a second judge ruled it “almost certainly” violated the Constitution—setting the stage for appeals that may reach the Supreme Court.
New Pope Brings Shift in Style, and Tone, to the Catholic Church

Pope Francis, left, meets bishops at the end of his weekly general audience at St. Peter’s Square at the Vatican in December. Reuters

The Roman Catholic Church’s leaders elected a new pope in March in a day that was rich in ritual but broke with tradition—placing the world’s 1.2 billion Catholics under the direction of a Jesuit from the New World, both firsts in Christianity’s 2,000-year history.
Cardinal Jorge Mario Bergoglio, the 76-year-old archbishop of Buenos Aires, became Pope Francis. His selection was the second groundbreaking event for the church in a month. His predecessor, Benedict XVI, stepped down two weeks earlier, citing declining health—the first pontiff in more than six centuries to resign from a position traditionally held until death.
Pope Francis’ election placed the church under the leadership of a man who had shunned the lofty trappings of a cardinal—and spent relatively little time at the Vatican. His ascension was likely to have broad resonance at a time when Catholicism has been losing credibility and followers in many parts of the world.
Few, however, could have guessed how much of an impact he would make, or how quickly.
Pope Francis started by turning down the grand papal apartments in favor of a modest Vatican guesthouse. He has been photographed carrying his own luggage on trips. He even has taken to personally calling people who have written to him with problems.
The pope has signaled plans to shake up the Vatican’s hidebound and fractious bureaucracy, which has given rise to a series of financial and personal scandals in recent years.
But the biggest stir came when Pope Francis waded into some of the most-divisive social issues.
In July, weeks after being quoted discussing the existence of a “gay lobby” within the Vatican, he opened the door to a new era of reconciliation with homosexuals, saying: “Who am I to judge a gay person of goodwill who seeks the Lord?”
While there was no shift in doctrine, the shift in tone was noticeable. It was amplified two months later with the release of a lengthy interview in a Jesuit magazine. In it, Pope Francis warned that the church had become so focused on issues related to abortion, gay marriage and contraception that it risked losing sight of its core mission: ministering to the world’s poor and helpless.
In early December came word that the Vatican would set up a special commission to advise on how best to protect children from sexual abuse by priests and to support past victims.
Iranian Nuclear Pact Offers Rays of Hope

U.N. experts at the scene of an alleged chemical-weapons attack in Syria. Associated Press

The U.S. and five other world powers struck a historic accord with Iran on Nov. 24, agreeing to ease sanctions on the country for six months in exchange for steps to cap its nuclear program and ensure the Islamist government in Tehran doesn’t rush to develop atomic weapons.
The interim agreement calls for Iran to stop its production of near-weapons-grade nuclear fuel—uranium enriched to 20% purity—and for the removal of Tehran’s stockpile of the fissile material, which is estimated to be nearly enough to produce one nuclear bomb.
Iran, in return, will gain relief from a Western economic stranglehold that U.S. officials believe will provide between $6 billion and $7 billion in badly needed foreign exchange for Tehran over the next half-year. Negotiators aim for it to go into effect early next year as a way to build confidence while they work on a long-term accord.
The prospect of an international rapprochement with Iran followed the landslide election in June of a relative moderate, Hasan Rouhani, to succeed the fiery Mahmoud Ahmadinejad as president of Iran. Mr. Rouhani had campaigned on a platform of reviving Iran’s economy and ending its isolation.
Days after declining to meet President Barack Obama at the United Nations in September, the two talked by telephone—the first direct contact between leaders of the two countries since 1979. Top National Security Council officials had been planting the seeds for such an exchange with months of behind-the-scenes talks, using Arab monarchs, Iranian exiles and former U.S. diplomats to clandestinely ferry messages.
Israeli Prime Minister Benjamin Netanyahu has publicly cast doubt on Iran’s recent charm offensive, arguing that Tehran is hoodwinking Washington as it pushes ahead with its nuclear program.
Government Shutdown Taints Congress

A U.S. Park Police officer and park service workers close off the Martin Luther King Jr. Memorial in Washington as the government shuts down. Getty Images

Congressional brinkmanship led to a 16-day shutdown of the federal government on Oct. 1, a move that closed national parks, disrupted agencies that serve businesses and consumers, and lowered the public’s already-dim view of Washington.
The closure came after Congress failed to appropriate funds for the 2014 federal fiscal year. The dispute centered over funding bills passed by the House that would have stripped money for the new federal health-care law.
In the Senate, Sen. Ted Cruz (R., Texas) spoke for 21 hours to express his opposition to the Affordable Care Act.
The government closure put about 800,000 federal employees on furlough.
After many stalled efforts and much partisan bickering, the House voted 285-144 on Oct. 16 to reopen the government through Jan. 15, averting a default on U.S. debt. The Senate earlier had approved the bill on an 81-18 vote.
The deal marked a victory for congressional Democrats and President Barack Obama, who blocked the GOP efforts to curtail the health-insurance law. “This has been a very bad two weeks for the Republican brand,” said Sen. Lindsey Graham (R., S.C.).
This month, Congress finally approved a two-year budget agreement that, while ensuring government funding, left both parties disappointed. Republicans wanted the legislation to do more to curb spending; Democrats sought to renew jobless benefits due to expire.
Obama Pulls Back on Syrian Invasion Plan
In harsh language, Secretary of State John Kerry in late August began laying out the U.S. case for possible military action against Syria, saying there was undeniable evidence that chemical weapons had been used against a rebel enclave. President Obama put the death toll at more than 1,400, blamed Syrian President Bashar al-Assad’s regime and said it must be held accountable.
But over the next few days came head-spinning events: Mr. Obama announced Aug. 31 he would seek congressional approval for an attack. The U.K. pulled out of a joint operation, infuriating other allies. Russia then provided a diplomatic way out, seizing on an ad-libbed comment by Mr. Kerry that Syria could avert a U.S. attack if it gave up its chemical weapons. Less than three weeks later, the U.N. Security Council unanimously adopted a plan for eliminating Syria’s arsenal by mid-2014.
Many opposition leaders in Syria—and some U.S. lawmakers—say the failure to strike Syria contributed to a significant shift on the ground in the nearly 3-year-old civil war: the ascension of Islamist rebels, which this month ran the Western-backed opposition fighters from their base, catching the Obama administration by surprise.
Supreme Court Hands Gays a Major Victory
The U.S. Supreme Court handed a major victory to gay Americans June 26, ruling that the federal government must provide equal treatment to same-sex spouses.
In a pair of 5-4 decisions, the justices struck down portions of the 1996 Defense of Marriage Act, which denied federal benefits to gay couples married under state law, and let stand a ruling that Proposition 8, a 2008 voter initiative that ended same-sex marriage in California, was unconstitutional.
Justice Anthony Kennedy wrote that Congress had no business undermining a state’s decision to extend “the recognition, dignity and protection” of marriage to same-sex couples.
The Supreme Court’s moves gave new ammunition to backers of gay marriage in their state-by-state effort to gain the right nationwide.
In subsequent months, gay marriage was approved in additional states, either through court rulings or acts of their legislatures, including New Jersey, Hawaii, New Mexico and Utah, though the latter is appealing a federal judge’s ruling. That brings to 18 the number of states that allow gays and lesbians to wed, plus the District of Columbia.
Still, same-sex marriage is banned by the constitutions of some 29 states. Overturning those measures generally would require a ballot vote and often the backing of the state legislature. The first attempt could come in 2014 in Oregon, where activists are pushing for a statewide vote to overturn the ban there.
Biggest Bank Agrees to Pay Record Fine
J.P. Morgan Chase JPM +0.91% JPMorgan Chase & Co. U.S.: NYSE $58.48 +0.53 +0.91% Dec. 31, 2013 4:00 pm Volume (Delayed 15m) : 10.77M AFTER HOURS $58.59 +0.11 +0.19% Dec. 31, 2013 7:54 pm Volume (Delayed 15m): 254,598 P/E Ratio 13.14 Market Cap $217.85 Billion Dividend Yield 2.60% Rev. per Employee $431,637 12/26/13 LightSquared Files Bankruptcy-… 12/23/13 J.P. Morgan Opens New Manhatta… 12/22/13 Traffic at Target Stores Down … More quote details and news » JPM in Your Value Your Change Short position & Co. moved this year to put its legal troubles behind it. The nation’s biggest bank agreed Nov. 19 to pay a record $13 billion penalty to settle civil claims from state and federal authorities that it sold mortgage-backed bonds based on loans that were weaker than advertised.
The settlement includes $4 billion in aid to distressed homeowners, such as reducing the size of mortgages that exceed the value of the property involved.
J.P. Morgan, under CEO Jamie Dimon, also agreed to pay more than $1 billion to end federal and overseas investigations into a series of bad bets made by a trader known as the “London whale.” Those trades, which resulted in losses of more than $6 billion for J.P. Morgan, raised questions about the bank’s governance.
The mortgage pact marks the toughest action taken after the financial crisis by the Obama administration, which has been criticized for not pursuing more aggressively criminal charges against bank executives for conduct leading up to the crisis.
A separate criminal probe of J.P. Morgan over mortgages continues.
Kenyan Mall Shootout Kills at Least 69

Customers take cover at a Nairobi, Kenya, shopping mall as it comes under attack by masked gunmen in September. At least 69 people died. Agence France-Presse/Getty Images

Security forces in Nairobi prevailed Sept. 24 against Islamic insurgents after a four-day gunbattle that devastated a popular shopping mall, shook a nation and pointed to a new front line in Africa’s fight against terrorism.
At least 69 people, including several militants, were killed in an operation that culminated with massive explosions that brought down three floors of the upscale Westgate mall.
A parliamentary committee later blamed lapses among government security agencies for fueling the attack. Corrupt Kenyan police and border guards may have abetted terrorists slipping into the country from neighboring Somalia, according to a report completed in December and seen by The Wall Street Journal. The report concluded that there were four assailants of Somali origin. The government had earlier put the number as high as 15.
Hedge Fund Settles Insider-Trading Case
SAC Capital Advisors LP reached a landmark insider-trading settlement with the federal government Nov. 4, the denouement of a 10-year investigation into the onetime financial powerhouse.
The hedge fund, which took the initials of its founder, Steven A. Cohen, pleaded guilty to insider trading. The firm this year agreed to pay $1.8 billion in civil and criminal penalties, and in the November settlement said it would return billions of dollars in outside clients’ money and submit to a five-year probationary period.
Meantime, veteran SAC portfolio manager Michael Steinberg was found guilty Dec. 18 of insider trading by a federal-court jury in Manhattan, in the first SAC case to go to trial. He was accused of making trades in 2008 and 2009 in shares of Dell Inc. and Nvidia Corp. NVDA +0.31% NVIDIA Corp. U.S.: Nasdaq $16.02 +0.05 +0.31% Dec. 31, 2013 4:00 pm Volume (Delayed 15m) : 5.84M AFTER HOURS $16.00 -0.02 -0.12% Dec. 31, 2013 7:40 pm Volume (Delayed 15m): 55,632 P/E Ratio 20.81 Market Cap $9.08 Billion Dividend Yield 2.12% Rev. per Employee $513,274 12/29/13 Google, Apple Forge Auto Ties 12/17/13 Jury Begins Deliberating Insid… 12/13/13 Dell CIO Booting ‘Shadow IT’ W… More quote details and news » NVDA in Your Value Your Change Short position based on illegal tips. Six other SAC colleagues have pleaded guilty to insider trading.
Mr. Cohen hasn’t been criminally charged but faces a civil suit against him personally by the Securities and Exchange Commission. The SEC is seeking to ban him from the securities industry for allegedly overlooking insider trading at his firm. SAC has said the suit has “no merit.”The company plans to transition into a “family office”—a leaner organization that primarily will manage its billionaire founder’s wealth.
Fed Decides to Dial Back Bond Buying
Federal Reserve officials spent much of 2013 pondering how and when to start winding down an $85 billion-a-month, bond-buying program meant to stimulate economic growth, as President Barack Obama pondered a successor for Fed Chairman Ben Bernanke.
The uncertainty on both questions dragged on for months and drove stock and bond markets through some volatile swings. But by year’s end, some important questions got answered.
After adding more than $1 trillion in mortgage and Treasury securities to its portfolio in 2013, the Fed said Dec. 18 it would gradually wind down the program in 2014, as long as the economy didn’t sink again.
Meantime, President Obama nominated Janet Yellen, the Fed’s current vice chairwoman, to succeed Mr. Bernanke.
The choice of Ms. Yellen, a loyal Bernanke deputy, ensures continuity at the Fed in 2014.
The big question: After rocketing higher in 2013, can financial markets thrive in 2014 in the absence of the easy-money Fed programs that so dominated attention in the year just passed?
American Leaps to Top of Air Industry

Doug Parker and Tom Horton of the merged American Airlines Group. Mike Fuentes/Bloomberg News

The game of leapfrog among the nation’s largest air carriers continued this past year with the new American Airlines Group Inc. AAL +1.90% American Airlines Group Inc. U.S.: Nasdaq $25.25 +0.47 +1.90% Dec. 31, 2013 4:00 pm Volume (Delayed 15m) : 7.03M AFTER HOURS $25.25 0.00 0.00% Dec. 31, 2013 7:40 pm Volume (Delayed 15m): 139,753 P/E Ratio N/A Market Cap N/A Dividend Yield N/A Rev. per Employee N/A 12/20/13 Attendants’ Unions to Cooperat… 12/20/13 Corrections & Amplifications 12/17/13 Airborne Democracy: American A… More quote details and news » AAL in Your Value Your Change Short position jumping to the top.
American became the largest U.S. airline by traffic after a bankruptcy judge on Nov. 27 approved its $18 billion stock-swap merger with US Airways Group Inc. The judge in November also approved an antitrust settlement between the Justice Department and the two airlines, ending a long and twisty road for American, which had filed for Chapter 11 two years earlier.
American—the only major carrier that never underwent a bankruptcy-court reorganization—finally gave in to a restructuring after posting nearly $12 billion in losses over the past decade.
The new American surpasses in size United Continental Holdings Inc., UAL +1.42% United Continental Holdings Inc. U.S.: NYSE $37.83 +0.53 +1.42% Dec. 31, 2013 4:00 pm Volume (Delayed 15m) : 2.11M AFTER HOURS $37.83 0.00 0.00% Dec. 31, 2013 4:28 pm Volume (Delayed 15m): 6,678 P/E Ratio N/A Market Cap $13.50 Billion Dividend Yield N/A Rev. per Employee $427,864 12/05/13 United Continental Names Greg … 12/04/13 Companies Say Goodbye to the ‘… 11/23/13 Boeing Issues Warning for GE-P… More quote details and news » UAL in Your Value Your Change Short position which became the biggest airline when United Airlines and Continental Airlines combined in 2010. Before that, Delta Air Lines Inc. DAL +1.03% Delta Air Lines Inc. U.S.: NYSE $27.47 +0.28 +1.03% Dec. 31, 2013 4:00 pm Volume (Delayed 15m) : 9.10M AFTER HOURS $27.54 +0.07 +0.25% Dec. 31, 2013 7:15 pm Volume (Delayed 15m): 54,182 P/E Ratio 11.26 Market Cap $23.26 Billion Dividend Yield 0.87% Rev. per Employee $505,975 12/29/13 Inexpensive Stocks Take Lead i… 12/26/13 Delta Sells Rock-Bottom Fares … 12/20/13 Corrections & Amplifications More quote details and news » DAL in Your Value Your Change Short position had been the largest thanks to its 2008 acquisition of Northwest Airlines. Discount king Southwest Airlines Co. LUV +0.05% Southwest Airlines Co. U.S.: NYSE $18.84 +0.01 +0.05% Dec. 31, 2013 4:01 pm Volume (Delayed 15m) : 2.82M AFTER HOURS $18.83 -0.01 -0.05% Dec. 31, 2013 4:59 pm Volume (Delayed 15m): 56,104 P/E Ratio 21.66 Market Cap $13.12 Billion Dividend Yield 0.85% Rev. per Employee $380,389 11/13/13 Airline Merger Sets Up Land Gr… 11/07/13 Southwest Air Sees November Hi… 10/29/13 Boeing: 737 Max Fuel Efficienc… More quote details and news » LUV in Your Value Your Change Short position remains No. 4.
Now, the top four U.S. carriers control more than 80% of the industry’s domestic capacity.
With its merger sealed, American returned to the challenge of melding two corporate cultures. Bolstered by new jets, the company hopes to squeeze more revenue and profit from its enlarged footprint.
Philippine Typhoon Kills Thousands

Typhoon Haiyan, one of the strongest ever recorded. plowed through the Philippines on Nov. 8. with the coastal city of Tacloban among the worst affected. More than 6,000 people were killed and over 3 million displaced. Reuters

It was the deadliest storm in modern Philippine history, and one of the strongest ever recorded. Typhoon Haiyan plowed through the country’s midsection on Nov. 8. with winds of more than 150 miles an hour. The storm killed more than 6,000 people and displaced more than three million. A month later, about 101,000 people were still living in government shelters.
President Benigno Aquino III estimated the cost of the damage—including 550,000 homes—at nearly $13 billion. The worst-hit area is mainly agricultural. Government economic managers have said the damage could lower growth, although reconstruction spending should temper the storm’s effects on the economy.
Twitter TWTR +5.19% Twitter Inc. U.S.: NYSE $63.65 +3.14 +5.19% Dec. 31, 2013 4:00 pm Volume (Delayed 15m) : 27.47M AFTER HOURS $64.00 +0.35 +0.55% Dec. 31, 2013 7:59 pm Volume (Delayed 15m): 389,910 P/E Ratio N/A Market Cap $35.34 Billion Dividend Yield N/A Rev. per Employee $267,231 12/31/13 Twitter Ends IPO Year on Up No… 12/31/13 Twitter Bulls Surge Into Optio… 12/30/13 Twitter’s Slide Continues: Sto… More quote details and news » TWTR in Your Value Your Change Short position Goes Public in Much-Watched IPO
This was the year Twitter Inc. took flight on Wall Street. And the popular messaging service’s shares soared ever since it made its debut Nov. 7 in one of the hottest initial public offerings of 2013, raising about $2.1 billion for its coffers.
Twitter’s stock is up about 133% from its IPO price of $26. That climb dispelled any concern that Twitter could end up seeing its shares take a beating like those of Facebook Inc. FB +1.75% Facebook Inc. Cl A U.S.: Nasdaq $54.65 +0.94 +1.75% Dec. 31, 2013 4:00 pm Volume (Delayed 15m) : 42.13M AFTER HOURS $54.80 +0.15 +0.28% Dec. 31, 2013 7:59 pm Volume (Delayed 15m): 1.02M P/E Ratio 127.09 Market Cap $135.26 Billion Dividend Yield N/A Rev. per Employee $1,487,770 12/29/13 Facebook Page Chronicles Accou… 12/27/13 Crystal Ball: Test Your Predic… 12/26/13 Morning MoneyBeat: Stocks in R… More quote details and news » FB in Your Value Your Change Short position after its much-criticized 2012 debut.
In seven years, Twitter has grown from a virtually unknown startup to a social tour de force. Its global audience of more than 230 million users has helped organize political protests, break news and create minor celebrities out of clever tweeters.
Twitter now has to make good on its pitch to investors that the messaging service that transformed public conversation can turn a profit.
The San Francisco-based company doubled its revenue over the last year, but has reported widening losses. Twitter, with one-fifth the number of active users as Facebook, faces challenges in attracting new ones.In the month and a half since its IPO, Twitter has released a rash of product upgrades in an attempt to lure a more mainstream audience and draw more advertising revenue, its primary source of making money.
Turmoil in Egypt After Morsi Ousted
The leader of Egypt’s military ousted President Mohammed Morsi from office on July 3 and replaced him with the head of the country’s constitutional court—a move the presidential palace quickly branded a “complete military coup.” The announcements capped days of political crisis that had brought millions of Egyptians to the streets, sparking deadly violence.
Deadly clashes between authorities and supporters of Mr. Morsi’s Muslim Brotherhood continued. Islamic militants started an insurgency against security forces in Sinai. President Barack Obama suspended part of the $1.3 billion in U.S. military aid to Egypt and delayed delivery of heavy military equipment following a harsh crackdown on pro-Morsi supporters.
Mr. Morsi is being tried on charges of inciting the murder of civilians during his presidency. In December, authorities charged him with treason, espionage and sponsoring terrorism. His predecessor, Hosni Mubarak, is under house arrest facing retrials on charges of corruption and failing to stop the killing of protesters who opposed him.
China’s New Leaders Consolidate Power
China in March completed the final personnel changes of a once-a-decade leadership transition and provided some clues about the new administration’s commitment to address social, economic and environmental problems that many Communist Party insiders fear are eroding its grip on power.
Xi Jinping, who succeeded Hu Jintao as Communist Party leader and military chief in late 2012, became president as well March 14. Li Keqiang, No. 2 in the new hierarchy, succeeded Wen Jiabao as premier a day later.
Mr. Xi moved to consolidate his support among the armed forces, taking direct charge of an escalation of military and civilian operations over disputed islands controlled by Japan in the East China Sea. China’s assertiveness in territorial disputes has stirred unease in Washington and elsewhere. He also assumed a leading role in overseeing economic reforms, traditionally the turf of the premier.
Faced with a slowing economy, the Chinese leadership has tried to tamp down domestic dissent and corruption. A court in September found Bo Xilai, a once-powerful Politburo member, guilty of bribery, embezzlement and abuse of power and sentenced him to life in prison, following China’s most politically charged trial in more than three decades.
Repairing rifts between Mr. Bo’s allies and opponents has been one of the main challenges for Mr. Xi.
2013′s Notable Deaths
Nelson Mandela, South African president
Margaret Thatcher, U.K. prime minister
Hugo Chavez, Venezuelan president
Van Cliburn Jr., pianist
Tom Foley, U.S. House speaker
Vo Nguyen Giap, Vietnamese general
Seamus Heaney, Irish poet
Ed Koch, New York mayor
Doris Lessing, novelist
George Mitchell, drilling magnate
Stan Musial, baseball player
Peter O’Toole, actor
Lou Reed, rock musician
Frederick Sanger, Nobel-winning genomics expert
Robert Edwards, pioneer of in vitro fertilization
Lawrence Klein, Nobel-winning economist
Ray Dolby, sound innovator
Mikhail Kalashnikov, assault rifle developer
Charlie Trotter, Chicago chef
Paul Reichmann, property developer
Jean Stapleton, actress
Tom Clancy Jr., author
James Gandolfini, actor
Edgar Bronfman Sr., philanthropist
David Frost, journalist
Joan Fontaine, actress

See original here: 2013 in Review: Tragedy, Transition, Triumph