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ISIS now has a foothold in an oil-rich Mediterranean port city

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Libya Oil Fire

The reach of ISIS is becoming increasingly international in scope.

The jihadist organization has accepted pledges of allegiance from organizations in Afghanistan, Algeria, and Egypt's Sinai Peninsula, with Nigeria's Boko Haram being the latest organization to apply for membership in the Islamic State.

A March 10 New York Times report delves into maybe the most alarming of ISIS's outposts: ISIS (aka ISIL, Islamic State, and Daesh) has established a foothold in Sirte, a Libyan port city west of Benghazi on the Mediterranean coast.

A few hundred firmly entrenched and battle-hardened fighters control major choke points, have commandeered the city's radio stations, and have launched attacks in the surrounding area — including the beheading of 21 Coptic Christians on a beach outside the city February and assaults on nearby oil facilities.

Moreover, Sirte's ISIS fighters seem to be taking direct cues from the Islamic State's headquarters in Mesopotamia. "The contingent here in Sirte has not only taken over a major Libyan city but also demonstrated clear coordination with the parent organization" the Times reports, citing the sophistication and even synchronicity of the groups' propaganda and messaging.

libyaAn ISIS takeover of Sirte is a huge problem for Libya. According to the US Department of Energy, around 80% of Libya's recoverable oil reserves are located in the Sirte basin, an area "which also accounts for most of the country's oil output."

Libya's oil industry is operating at a bare minimum, with exports limited to a few still-operational offshore rigs. Exports have plunged nearly from 1.5 million barrels per day in August of 2014 to 150,000 barrels per day in February.

Libya has the 9th-largest proven oil reserves on earth, one cause for optimism that the country will at least have the resources to rebuild after its current civil war, which pits two rival governments against one another and is being fought between comparably brutal Islamist and nationalist militant blocs.

Oil-funded reconstruction becomes a taller order if ISIS is camped out near 4/5s of the reserves. The group's entrenchment could raise longstanding security fears that scare off risk-averse foreign investors, particularly in a time when oil is cheaper and more plentiful than it's been in decades.

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The Sirte takeover has some broader implications as well. As Washington Institute for Near East Policy terrorism scholar Aaron Zelin explained to Business Insider in the context of Boko Haram's pledge to ISIS, an alliance with Africa's deadliest jihadist group shows that ISIS's message holds appeal even in spite of recent battlefield defeats. 

"It shows that ISIS still has momentum even while they're losing territory in Iraq and to a lesser extent in Syria, and it's possibly another area where they can gain revenue and resources for the organization," Zelin said of the Boko Haram pledge.

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Control over a Mediterranean base of operations conveys the same message, only in a location hundreds of miles closer to the major economies of continental Europe. And it gives ISIS many of the same advantages, like possible control over trade and criminal networks.

The Sirte outpost shows that ISIS still has plenty of strategic initiative, along with appeal that stretches far beyond Mesopotamia — and that this hasn't been weakened by the Islamic State's recent string of battlefield setbacks.

SEE ALSO: Africa's deadliest terrorist group wants to team up with ISIS

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NOW WATCH: This 26-year-old from Baltimore took a 35,000-mile road trip and ended up fighting in the Libyan revolution


Shareholders are looking at a $109 billion payout if big banks pass the stress test

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Throwing Money Off Roof

The second round stress test results will be released Wednesday, which means shareholders are about to find out who is getting a payout, and who isn't.

According to Bloomberg, banks that pass the Federal Reserve's annual test will be able to increase quarterly dividends by an average of 53 percent. This would result in a total distribution of $109 billion over 15 months, the article said.

Last year Citigroup was the only major bank to fail the stress test, which meant it was unable to pay dividends or buyback stock. If Citi passes this year, it would mean a 60-fold increase in distributions, according to Bloomberg data.

Other Wall Street banks looking at big payouts include Wells Fargo and JPMorgan.

All 31 banks passed the first part of the test, which meant all had sufficient capital to absorb shocks and losses in event of a crisis. The second round is a measure of the Fed's approval on a bank's internal crisis management. 

Despite getting through the first round, several banks are facing analyst concerns over whether or not they will pass, including Citi, Goldman Sachs, and Bank of America. 

The Fed will release stress test results at 4:30 pm ET.

Read more at Bloomberg >>

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When this YouTube star held a book-signing 8,000 teens turned up and police shut the area down: David Beckham did the same thing a week earlier and only 670 people showed up

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tanya burr

If there was ever any doubt about the level and fame surrounding YouTube stars, here are two recent UK examples that are reminiscent of 1960s Beatlemania.

Speaking at advertiser trade body ISBA's annual conference in London on Wednesday, Dominic Smales, the managing director of social media talent agency Gleam Futures, described the logistics that go into planning meet-and-greets between YouTube talent and their fans.

He admitted that initially they were extremely underprepared.

In 2013, Tanya Burr, a fashion and beauty blogger whose videos and tutorials back then attracted more than 2 million views this month, announced a "meet-up" with her fans in London's Covent Garden, thinking 50 to 100 people might turn up.

But hundreds upon hundreds of fans showed to catch a glimpse of their hero. "They had to shut down the [nearby] Apple Store. Tanya had a panic attack. People got hurt. It was all a bit awkward," Smales told the conference.

Here's some fan footage of the scenes.

He said it marked a "key moment in YouTube culture and social talent culture"— that any subsequent events would require proper organization, barriers, police, security, and so on.

But even with the most careful preparation, the scenes can still be chaotic.

alfie deyesAlfie Deyes is another English vlogger and blogger, who runs the YouTube channels PointlessBlog, PointlessBlogTV, and AlfieGames. The main channel, PointlessBlog, currently has 3.8 million subscribers.

Last year he arranged a signing for his debut book, "The Pointless Book" (which went straight to the top of the book charts), at the big Waterstones book store in Piccadilly.

Smales described what happened: "There were 8,000 teenagers. Piccadilly shut down. Waterstones had to shut its flagship store, which you can imagine they weren't happy about. There were police helicopters flying above. Policemen on horses ushering teenage girls about."

Check out the queue:

And, to put this all into shattering perspective, Smales delivered this killer line: "David Beckham had a signing at the same store the week previously and 670 people turned up."

Earlier on at the conference, Google UK/Ireland managing director Eileen Naughton shared some stats on YouTube viewing in the region.

In the UK alone, YouTube attracts 40 million viewers (around two-thirds of the entire population) each month, who watch an average of 191 million videos. The average viewing time per user has increased 50% year on year and is higher per capita than in the US, Naughton said.

SEE ALSO: The UK is cracking down on advertisers that give free gifts to YouTube stars in exchange for air time

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Texas lawmaker identifies himself as a 'former fetus' on a sign outside his office

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Texas State Representative Jonathan Stickland (R) came up with a unique way to great abortion activists when they visited the State Capitol.

On a sign outside of his office door, Stickland now identifies himself as a "FORMER FETUS"— right next to "District 92."

Stickland wrote on Facebook that he posted the new sign "in honor" of Planned Parenthood's visit to the Legislature.

"Today Planned Parenthood is visiting and lobbying the Capitol. In honor of their visit, I put this sign up on my office door," he wrote. "Organizations that murder children are not welcome in my office."

Stickland is passionately pro-life and his campaign website touts his work on behalf of the issue. 

"Jonathan is adamantly pro-life and believes it is part of the government’s role to protect the unborn lives of children," his campaign biography states. "He was honored to help author House Bill 2, which restricted abortions after 20 weeks, and made abortion clinics adhere to stricter rules that protect Texas women. This was a huge victory for the pro-life movement and Jonathan was proud to be a part of it."

His office did not immediately return a request for comment.

(via Laura Bassett)

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Snapchat wants to put live sports on your phone, starting with the Final Four

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Soon, you may be able to watch live sports on your phone on Snapchat.

The mobile social network is currently trying to make deals with both broadcast networks and sports leagues to put live sports on its "Our Story" feature, Digiday reports.

Citing "multiple media executives familiar with the plan," Digiday says Snapchat's first dive into live sports will start with the Final Four, though "there are plans to expand it to other NCAA sporting events in the future."

"Our Story" consists of localized, aggregated stories users in certain geographic areas can submit. Snapchat curates these Snaps — both videos and photos — and posts them for 24 hours.

In the past, Snapchat's "Our Stories," which the startup launched in July 2014, have focused on everything from music festivals to the Westminster Dog Show to sporting events like the World Cup finals and college football tailgates.

Working with sports leagues will bring a sense of legitimacy to Snapchat's "Our Story" feature. However, the sports content will still be produced and submitted by users as it has been in the past. Moving forward, however, Snapchat will have the thumbs-up from sports leagues and broadcast partners for these 24-hour broadcasts.

From Digiday:

Snapchat is looking to sell brand sponsorships for these stories and plans to split ad revenue among the sports leagues, the broadcasters and itself, according to one executive involved in negotiations. Turner is said to be close to finalizing sponsorship deals for the Final Four Stories, according to the executives.

While the Final Four deal involves both the NCAA and Turner, it’s an exception. In almost all other instances, Snapchat is looking to create media-rights deals with just the sports leagues.

Digiday reports that this new live sports partnership is separate from Snapchat Discover, which the company unveiled in January. Discover allows Snapchat users to view pieces of news in the form of Snapchat Stories. After 24 hours, the stories self-destruct and new content replaces them. Snapchat's partners for Discovery include CNN, Vice, Comedy Central, National Geographic, and ESPN.

You can read Digiday's full story here.

SEE ALSO: 2 dozen millennials explain why they're obsessed with Snapchat and how they use it

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The most powerful people in the world under 30

Amazing photos capture the secret abandoned parts of New York City

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Abandoned NYC book cover

New York City is a historic place, and like any historic place it has its secrets. Photographer Will Ellis know this better than most.

Ellis is an urban explorer, one of many who seek out and investigate abandoned and usually off-limits buildings and structures.

Often these places exist right in our everyday environments without us even knowing they're there.

He's been photographing abandoned spaces in and around New York City for years, documenting these hidden artifacts of bygone times.

His work has been compiled into a book, which is available for purchase here.

Ellis shared some exclusive images with us and talked about his experiences exploring New York's most intriguing hidden ruins.

Ellis says he first discovered the thrill of urban exploration when he entered an abandoned building in the Brooklyn neighborhood of Red Hook on a whim. "What stuck with me was that sense of discovery and adventure," he tells Business Insider.



"For the next few weeks and months I was heading out to new locations every chance I got," he says.



At first, Ellis says, he was interested about the visual aspect of the buildings and explored in order to get great photographs. Soon, though, he starting wondering about the history and stories behind the structures he was shooting, so he began to do research.



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This man is Central Asia's Vladmir Putin

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rakhmonRussia is not the only former Soviet republic where opposition leaders are being gunned down in the street.

Last week, Umarali Kuvatov, leader of a Tajik movement called Group 24, who fled the country in 2012 reportedly after a business deal with President Emomali Rahmon's son-in-law went wrong, fell ill while having dinner in Istanbul.

That (speculate the Turkish media) was a result of poisoning. Whether true or not, when he went outside for medical help, he was shot in the back of the head. His assassin vanished.

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The murder came days after a parliamentary election in Tajikistan on March 1st. Monitors from the Organisation for Security and Co-operation in Europe, an inter-governmental body, said half the votes they saw being counted should have been thrown out. They also reported ballot-box stuffing and intimidation.

Tajikistan has never had an election that was judged fair by independent observers. But in the past the opposition has been allowed to take a few seats--not enough to make a legislative difference, but a way of dealing with conflicts which, in the 1990s, erupted into a civil war that pitted a jumble of opposition parties against former Communist bosses led by Emomali Rahmon, now president.

A peace agreement in 1997 guaranteed the opposition, led by the Islamic Renaissance Party (IRPT), 30% of government positions.

Over the years Mr Rahmon has steadily reneged on the deal; this month, the IRPT was shut out of the national legislature for the first time.

The president seems to have turned his back on the country's fragile post-civil-war order. The fear is that some opponents--angry at being denied even the vestiges of influence--may now respond violently.

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This article was from The Economist and was legally licensed through the NewsCred publisher network.

SEE ALSO: Central Asian migrants feel the pain of Russia's economic downturn

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Siemens reaches Egypt power deal worth 'several billion euros'

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Siemens will build a

Berlin (AFP) - German conglomerate Siemens has reached "firm agreements" for power sector projects with Egypt worth several billion euros, the German government and the company said on Saturday.

Under a number of accords agreed between the parties, Siemens will build a "4.4 gigawatt combined cycle power plant and install wind power capacity of 2 gigawatt", the company said in a statement. Other projects would include building a factory in Egypt "to manufacture rotor blades for wind turbines".

Although the company did not give an exact figure, the German economics ministry referred to contracts worth "billions of euros".

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The absolutely incredible life of Kirsty Bertarelli, the richest woman in Britain

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Kirsty Bertarelli/Instagram

Kirsty Bertarelli is Britain's richest woman. And as a multi-billionaire she lives an enviably incredible life.

Her fortune is so vast that it eclipses Harry Potter author J.K. Rowling and the Queen combined, at £9.75 billion ($14.5 billion), according to the Sunday Times Rich List 2014.

She became Miss UK as a teenager, an accomplished music writer in her 20s, and then in her 30s became the wife and the mother of three children with Switzerland's richest man, Ernesto Bertarelli, who sold his family's pharmaceuticals firm Serono for £9 billion to Merck in 2007.

Now in her 40s, she is trying to take the world by storm with her singing. She has already supported Simply Red's Mick Hucknall in concert and performed for the Prince and Princess of Monaco.

Through interviews from The Telegraph, the Mirror and from her website, as well as pictures from her Instagram, we've put together the fairytale that is Kirsty Bertarelli's life.

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8 super-successful people share their best advice on how to quit a job

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richard bransonQuitting a job isn't easy, no matter what the circumstances.

But there are smart — and reckless — ways to go about it.

LinkedIn recently asked the top minds in business to share their best advice for quitting a job.

Here's what Richard Branson, Suze Orman, and six other super-successful people had to say.

Richard Branson says you should use the opportunity to build bridges, not burn them.

Richard Branson has never had an actual boss to whom he could say, "I quit!" — which is one of the perks of being a lifelong entrepreneur. But he has had talented employees leave Virgin to pursue their own entrepreneurial endeavors.

The ones who have left and have gone on to succeed are the ones that quit gracefully, he explains.

"All of them left with the best wishes of their previous companies, we've all stayed friends, and I'm sure there will be opportunities for us to collaborate further in the future," writes the Virgin Group founder. 

His advice for you: Explain your reasoning; share your vision for the future; and make an effort to keep in touch. "Who knows what the future will hold?"

Maintaining the relationships you have worked hard to create is important. "Think twice before you burn your bridges — build some instead!" he advises.

Read his full post here.



Suze Orman says to trust your instincts.

"Listen when your gut tells you to move on," writes Suze Orman. 

It was the personal finance guru's own gut feeling that prompted her to end her show with CNBC after 13 years and 638 episodes.  

"About a year ago, something started to change. I woke up one morning, and I knew that it was time to end the Suze Orman Show," she explains of her decision. "My heart knew it was time for me to go." 

This decision also put her in the driver's seat: "Lets face it: If you stay on for the wrong reasons, your eventual exit will likely not be on your own terms. By taking the initiative to recognize I needed to move on, I have had the great experience of leaving without regret or acrimony."

Read her full post here.



Robert Herjavec says it's important to remember that quitting doesn't mean you're failing.

"The way I see it, quitting isn't losing," writes the "Shark Tank" investor. "It's simply changing direction."

Herjavec likes to use the term "pivoting," rather than "quitting," because people automatically equate quitting with failure.

"Call it what you will but quitting a strategy, or a job, should not be seen as failure. We can't win at everything we do," he says.

The trick is finding what you're good at, and this opportunity often arises from quitting, which is why Herjavec calls it "a blessing in disguise — an opportunity to pivot to something greater."

Read his full post here.



See the rest of the story at Business Insider

Poels at the double in Tirreno-Adriatico fourth stage

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File photo shows Dutch cyclist Wouter Poels (C) after winning the fourth stage of the Tour of the Basque Country, a 151 km ride from Vitoria to Eibar, on the Arrate mount in Eibar, Spain on April 10, 2014

Rome (AFP) - Team Sky rider Wouter Poels capped a thrilling solo attack with victory and the overall leader's jersey after the fourth stage of the Tirreno-Adriatico on Saturday.

Poels, claiming his first win of the season, countered Italian Giampaolo Caruso after the Katusha rider tried to distance a small leading peloton on the final metres of the Crispiero climb whose summit is 5km from the finish line.

The tall Dutchman went on to hold off a small group of chasers to cross the finish line solo and take the leader's blue jersey from Belgian Greg Van Avermaet (BMC).

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It only took one genuinely original idea for Andy Warhol to become a famous artist

WINNING 'BACHELOR' COUPLES: Where are they now?

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the bachelor chris soulesIt's hard to believe, but "The Bachelor" has now been on the air for more than a decade. 

ABC's hit reality series just wrapped up its 19th season earlier this week when Iowa farmer Chris Soules asked fertility nurse Whitney Bischoff to be his wife.

When "The Bachelor" launched in 2002 it was a hot watercooler discussion, critiqued for putting personal relationships so openly into the public eye and for allowing one man to date multiple women at once to find his "one true love."

Despite that, the show has become one of ABC's best-performing shows producing multiple spinoffs like "The Bachelorette" and "Bachelor Pad," and serving as fodder for other network series.

After 19 seasons, what has become of the many bachelors? 

Shocker: The majority aren't with the winner they fell in love with over the course of a short few months. 

While Soules and Bischoff are still together, the series' track record for successful relationships is six for 28 across every season of the two "Bachelor" shows.

Season 1: Management consultant Alex Michel picked Amanda Marsh, but didn't propose. Instead, the two dated for a nearly a year before Marsh broke up with him after reportedly learning he was keeping in touch with runner-up Trista Rehn.

(Source: EW)

 



Michel later became a spokesperson for Match.com and produced and starred in YouTube video, "Our Very First Sex Tape."

(Source: PRnewswire) Watch the NSFW video here.



Trista was then featured on the first season of spinoff "The Bachelorette" and married firefighter Ryan Sutter.



See the rest of the story at Business Insider

This air base in Qatar carries out American airstrikes in Iraq and Syria

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The Al-Udeid Air Base acts as the headquarters for US Central Command in its efforts for "Operation Inherent Resolve" in Iraq and Syria. The base, located around 30 miles from Qatari capital Doha, is a large desert facility where plans are carried out for the airstrike campaign. 

Produced by Jason Gaines. Narrated by Graham Flanagan. Video courtesy of Associated Press.

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Wales beat Ireland 23-16 in Six Nations

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Wales's Aaron Jarvis is closed down by Ireland's centre Robbie Henshaw (L) and Ireland's lock Devin Toner (R) during their Six Nations international rugby union match in Cardiff, Wales, on March 14, 2015

Cardiff (United Kingdom) (AFP) - Wales ended Ireland's Grand Slam hopes with a hard-fought 23-16 victory in the Six Nations at Cardiff's Millennium Stadium on Saturday.

Wales, after a massive defensive effort, had led 15-9 at the interval, four Leigh Halfpenny penalties and a Dan Biggar drop-goal cancelling out three Jonathan Sexton penalties.

Scott Williams scored a try for the home side in the second half, but Ireland bounced back with a penalty try converted by Sexton, before Halfpenny nailed a fifth penalty and Wales held on for their third victory of the tournament against one loss.

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Meet Felicity Jones: The indie actress just cast in the 'Star Wars' spinoff

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felicity jones

One of the most talented young actresses in Hollywood is officially a part of the "Star Wars" franchise.

Thursday, it was announced Felicity Jones would be joining the cast of the first "Star Wars" spinoff, "Rogue One."

You may recognize the 31-year-old actress. 

Jones received an Oscar nomination for her performance playing Stephen Hawking’s wife, Jane, in "The Theory of Everything."

The Theory of Everything Felicity Jones Stephen Hawking Eddie RedmayneThough Jones has been working professionally since age 12 and previously found recognition for her work on indie films, "Star Wars" will help give the actress global recognition.

Even though "Rogue One" won't be in theaters until December 16, 2016, it's worth getting to know Jones before then.

Jones grew up in Birmingham, England, where she was encouraged to get into acting by her uncle, actor Michael Hadley (“Pirate Radio”). Her first role was at age 12 in the 1996 UK TV movie “The Treasure Seekers,” co-starring Keira Knightley.

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From 1998 to 2001 she starred in the popular U.K. shows "The Worst Witch" and its follow-up, "Weirdsister College."

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She then pulled back on her workload to focus on school until she graduated from Wadham College in 2006.

Jones soon went back to work on TV. She made an appearance on an episode of "Doctor Who" in 2008, and popped up in movies like 2009’s "Cheri" with Michelle Pfeiffer, as well as 2010’s "The Tempest," alongside Helen Mirren.

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Her career took off in the beginning of 2011 when she starred in that year’s Sundance Film Festival Grand Prize winner "Like Crazy."

Like Crazy UK Poster

In the relationship drama, she stars opposite Anton Yelchin. The two improvised almost all of their dialogue playing a couple in and out of love.

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While adding to her indie film roster, Jones showed up in a season 3 episode of HBO’s "Girls" in 2014, having a shouting match with character "Jessa."

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That same year she also starred in "The Amazing Spider-Man 2," playing Harry Osborn’s (aka Green Goblin) assistant.

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Later that year, she played Stephen Hawking’s wife, Jane, in the critically acclaimed bio pic, "The Theory of Everything."

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The film garnered her Oscar, Golden Globe, and BAFTA nominations for Best Actress.

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She didn't take home the Oscar, but she did get a great consolation prize — a LEGO statuette.

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Jones was one of a few actresses rumored to star in the first "Star Wars" spinoff.

Nothing is known about who Jones will play in next year's "Star Wars"; however, from the film's title, "Rogue One," she could likely be a Rogue Squadron pilot.

"Rogue One" will open in theaters December 16, 2016.

SEE ALSO: Two theories on what the "Star Wars" spinoff could be about

AND: "Star Wars: Episode VIII" will be released May 26, 2017

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The best Irish pubs in 19 big cities around the US

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Horse Brass Pub, Portland Oregon

You don't need to go to Dublin for a true Irish pub experience; it's likely there's already an authentic pub right in your neighborhood. You just need to know where to look.

With St. Patrick's Day coming up, we found the best Irish pubs in 19 big cities around the US, according to Yelp, with the best drinks, the best food, and the best craic (that's Gaelic for "good times").

ATLANTA: Brick Store Pub

125 East Court Sq., Decatur

When three friends searched for a neighborhood pub that poured a great pint and couldn't find one, they decided to open their own. The Brick Store Pub rotates 22 draft beers, and offers another 75 in bottles. The upstairs is devoted exclusively to Belgian beers.

On Saint Patrick's Day the pub will have live music, special beers, and "food features" available for customers.



AUSTIN: Draught House Pub & Brewery

4112 Medical Pkwy.

The Austin, Texas, beer scene is buzzing, and a lot of the action happens at Draught House. With more than 70 beers on draft, many from Texan breweries, Draught House also offers a few home brews of its own.

The food is solid, too — not made in house, but from pub-curated food trucks that park outside ready to serve the regulars.



BALTIMORE: Mick O'Shea's

328 North Charles St.

Mick O'Shea's happily mixes its Irish heritage with a liberal sprinkling of Baltimore pride. Regulars rave about the happy hour deals, as well as the local Maryland crab soup.

On St. Paddy's Day grab yourself a traditional Irish breakfast, starting at 9 a.m., and then come back at 5 p.m. for live music.



See the rest of the story at Business Insider

America's fastest growing metropolis isn't pretty — but it's thriving

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Houston_Ship_ChannelFor a view of Houston's economy, get in a car.

At the intersection of the Loop and Freeway 225, two motorways in the south-east of the city, you drive over a high, tangled overpass.

To the east, where the port of Houston sits on Buffalo Bayou, the skyline is an endless mass of refineries, warehouses and factories: Houston is an oil town.

To the west, glistening skyscrapers and cranes puncture greenery. In between, the landscape is a sprawl of signs advertising motels and car dealerships.

Houston is not pretty, but it thrives. In the decade to 2010, the population of its metro area grew more than that of any other American city. Between 2009 and 2013 its real GDP increased by 22%, more than twice as fast as the American economy as a whole. Its growth infuriates new urbanists who insist that dense, walkable places such as Manhattan or San Francisco are the future. The question is, can Houston continue to thrive in an oil bust?

Over two-thirds of the growth in crude oil production in the United States between 2009 and 2014 took place in Texas. As well as refineries and drillers, oil brings office jobs: ConocoPhillips and Halliburton both have their headquarters in Houston, as does BP's America division. Exxon Mobil is building a huge new campus near The Woodlands, a wealthy suburb north of the city. In the past, oil-price gains and job gains have kept in close step (see chart).

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The slump is hitting some businesses already. In Houston, when prices fell, "it was almost like the lights just went out," says Peter Wyatt, the boss of Micron Eagle, which makes hydraulics for drillers. Last year the drillers' main concern was simply to get their rigs running as quickly as possible, for which they paid hefty prices.

Now, instead of demanding speed, they want discounts. Across America the number of drilling rigs pumping oil has fallen by 38% since December, according to Baker Hughes, an oil-services firm.

With reduced demand, many small manufacturers and suppliers are sure to go bust, says Patrick Jankowski, an economist with the Greater Houston Partnership, a local business lobby. But the real question is whether a more general slump follows.

Multinational oil-related firms based in Houston--including Halliburton and ConocoPhillips--have announced job losses in the past few months. If high-paying corporate posts go, the effect on the rest of the Houston economy could be dramatic.

Yet there are signs that, this time, Houston's spectacular growth will be slowed rather than stopped by the oil slump.

ExxonMobileMuch investment, such as in Mobil Exxon's new campus, is committed, and will not stop now. Mr Jankowski estimates that Houston could still add as many as 50,000 new jobs this year.

That is far less than the annual average of 100,000 or so in recent years, but still enough to hold down unemployment.

The city's economy has diversified since the 1980s. At the Texas Medical Centre, a collection of hospitals, medical colleges and research institutions about a 15-minute drive from downtown Houston, new office blocks glisten in the spring sun. Over 100,000 people work there.

Day trippers flock to the museums and students to the universities nearby. More foreign goods now flow through Houston's port than any other in America; some 51m people a year now fly through its two airports, one of which, Hobby, is being expanded by Southwest Airlines. And some people and industries will benefit from falling oil prices: commuters, as well as plastics and chemicals firms.

Houston Fuel Oil TerminalParadoxically, perhaps the city's biggest strength is its sprawl. Unlike most other big cities in America, Houston has no zoning code, so it is quick to respond to demand for housing and office space. Last year authorities in the Houston metropolitan area, with a population of 6.2m, issued permits to build 64,000 homes. The entire state of California, with a population of 39m, issued just 83,000. Houston's reliance on the car and air-conditioning is environmentally destructive and unattractive to well-off singletons. But for families on moderate incomes, it is a place to live well cheaply.

Some wonder if a bubble is inflating. "We have overbuilt the apartment market already and we are well on the way to overbuilding the office market," says Jim Noteware, a property developer. In recent years the ratio of house prices to incomes in the city, long lower than in the rest of America, has crept close to it. A property slump could hit Houston's core city--which relies heavily on property taxes--hard. It is already running a hefty deficit and carrying a heavy pension burden.

If disaster is avoided, it will be because Houston has reached a critical mass where employers keep moving in because others are already there. Joel Kotkin of Chapman University in California argues that thanks to cars, even over its vast size, Houston creates the same possibilities for people to meet and share ideas that generate wealth in denser cities such as New York. Sprawl may not be pretty--but it seems to work.

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