Crucial day for US budget talks









US President Barack Obama: “Agreement is being discussed as we speak”



US politicians are facing a crucial day of talks aimed at preventing the economy falling over a “fiscal cliff”.


Congress must reach a deal by the end of the year to avert steep spending cuts and tax rises due to take effect.


President Barack Obama has said he is “modestly optimistic” that Senate leaders can craft a bill that could win approval in both chambers of Congress.


If they fail, taxes will significantly rise for most Americans, raising fears of a US economic slowdown.


Republicans and Democrats tried to resolve the looming crisis in 2011 but failed, instead signing temporary agreements which postponed the deadlock until the end of 2012.


Democrat Senate leader Harry Reid and his Republican counterpart Mitch McConnell have been locked in negotiations over the weekend, in an otherwise closed-down Capitol.


According to the Washington Post, they have set themselves a deadline of 15:00 local time (20:00 GMT) to reach a compromise agreement, after which they will convene caucus meetings of their members and decide whether the measure has enough support to be put to a vote.


The Senate could then vote on the measure and allow the House of Representatives enough time on Monday to consider it, said the paper.


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America’s reckless politicians may still take the country over the cliff into an uncertain land where recession looms”



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But Republican and Democratic leaders remain divided over core ideological issues about tax and government funding.


There is also debate over where to set the threshold for tax rises. Democrats say tax cuts introduced by former President George W Bush and now due to expire should be extended for all Americans except the richest, those with annual earnings of more than $ 250,000 (£155,000), who should pay more.


Republicans want the tax threshold set higher, at around $ 400,000, and for revenue to be raised by economic growth and cuts in social security and mandatory spending programmes.


President Obama is scheduled to make a rare appearance on NBC’s Meet the Press on Sunday.


He has urged negotiators to reach a deal, even if the resulting legislation is an unhappy compromise for both sides which defers resolution of some elements under discussion.


The country “just can’t afford a politically self-inflicted wound to our economy,” he said, warning that if they fail, “every American’s paycheck will get a lot smaller”.


“Congress can prevent it from happening, if they act now,” he said.


Some Republicans have pledged never to vote for increased taxes. There are some indications they could oppose any deal which included higher taxes.


If Mr Reid and Mr McConnell cannot reach a deal by the end of the year, Mr Obama has said he will seek a vote to prevent tax rises on incomes up to $ 250,000 and ensure unemployment insurance is continued.


That, he says, is the “bare minimum” Congress should get done before 1 January.


End to benefits


The term fiscal cliff refers to the combination of almost $ 600bn (£370bn) of tax rises and spending cuts due to come into force on 1 January if Congress fails to pass new legislation.


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What is the fiscal cliff?


  • On 1 January 2013, tax increases and huge spending cuts are due to come into force – the so-called fiscal cliff

  • Deadline was put in place in 2011 to force president and Congress to agree ways to save money over the next 10 years

  • Fear is that raising taxes while massively cutting spending will have a huge impact on households and businesses

  • Experts believe it could push the US into recession, and have a global impact on growth


Sweeping Bush-era tax cuts will expire, eventually affecting people of all income levels, and many businesses.


While some of the impact would be felt almost immediately, other effects would take longer to filter through. This could damage America’s recent fragile economic recovery and alarm global markets.


In addition, the US Treasury will hit its legal borrowing limit on 31 December of $ 16.4tn.


Last week, Treasury Secretary Timothy Geithner won a reprieve of about two months of time, but the debate on the borrowing ceiling will also need to be properly addressed in the new year.


The tax cuts and benefits set to expire include:


• A 2010 payroll tax cut, the expiration of which would prompt immediate wage-packet cuts


• Benefits for the long-term unemployed, which could mean more than two million Americans immediately stopped receiving payments


• Compensation for doctors treating patients on federal healthcare programmes


• Inheritance taxes are also likely to be affected if no deal is reached.


In addition, spending cuts mandated by a law passed to break a previous fiscal impasse in Congress will come into force, affecting both military and domestic budgets.


The cuts are expected to affect federal government departments and the defence sector, as well as hitting unemployment insurance and veterans’ support.


BBC News – Business





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Suspected US drone kills 3 al-Qaida men in Yemen






SANAA, Yemen (AP) — Three al-Qaida militants were killed in a suspected U.S. drone strike in southern Yemen, Yemeni security officials said, the fourth such attack this week and a sign attacks from unmanned aircraft are on the upswing in the country.


The officials said the three men were hit as they were riding in a Land Cruiser in el-Manaseh village on the outskirts of Radda in Bayda province. Dozens of local al-Qaida-linked fighters protested the drone strikes after traditional Islamic Friday prayers.






Earlier this week another suspected U.S. drone strike killed two militants in Radda itself, Yemeni security officials say, and seven were killed in two other strikes in the southeastern province of Hadramawt. Four suspected drone strikes a week is uncommon in Yemen.


According to statistics gathered by the Long War Journal before Saturday’s attacks, the United States “is known to have carried out 41 airstrikes” this year against al-Qaida in the Arabian Peninsula (AQAP), as the group’s branch in Yemen is known. That makes for an average of around three to four strikes per month.


The Journal, a product of the Foundation for Defense of Democracies that was founded by former U.S. officials, says that since December 2009, the CIA and the US military’s Joint Special Operations Command are known to have conducted at least 54 air and missile strikes inside Yemen, excluding Saturday’s suspected attack.


AQAP overran entire towns and villages — including Radda — last year by taking advantage of a security lapse during nationwide protests that eventually ousted the country’s longtime ruler. Backed by the U.S. military, Yemen’s army was able to regain control of the southern region but al-Qaida militants continue to launch deadly attacks on security forces that have killed hundreds.


Also on Saturday, two gunmen on a motorbike shot and killed an intelligence officer in the southeast, security officials said. They said that the officer, Mutea Baqutian, was on his way to work in Mukalla, capital of Hadramawt province, when the men stopped his car, gunned him down, and fled.


The government has blamed al-Qaida militants for similar assassinations of several senior military and intelligence officials this year. The bullet-riddled body of Major al-Numeiry Abdo al-Oudi, deputy director of the security department of al-Qitten in Hadramawt, was found in the town’s suburbs last week. He had been kidnapped earlier in the month.


All officials spoke on condition of anonymity according to regulations.


Meanwhile, Maj. Gen. Ahmed Seif, who is commander of Yemen’s central military region, said the Defense Ministry has deployed an infantry brigade in the northeastern province of Marib to stop armed tribesmen who maintain cordial ties with al-Qaida from attacking oil pipelines and power generating stations, as well as to counter al-Qaida militants.


State TV meanwhile aired a meeting between President Abed Rabbo Mansour Hadi and eight Yemeni sailors who were rescued last week by forces of Somalia’s semiautonomous Puntland region after being held for nearly three years by Somali pirates.


The Puntland government says that its forces captured the hijacked Panama-flagged MV Iceberg 1 on Sunday after a siege that lasted two weeks. They freed the eight Yemeni sailors together with five Indians, two Pakistanis, four Ghanaians, two Sudanese and a Filipino. The ship was hijacked March 29, 2010.


Hadi congratulated the eight sailors for their safety and ordered the government to compensate them for their suffering.


Eqbal Yassin, a relative of one of the freed sailors, told The Associated Press that the hijackers had allowed some sailors to phone their relatives and convey the pirates’ demand for $ 5 million ransom. He said he was told by his relative that the hijackers killed a Yemeni sailor who tried to escape. He gave no further details.


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Nintendo’s Wii U wobbles as sales sink






According to Famitsu, Nintendo’s (NTDOY) portable 3DS console continued to see huge success during the week ahead of Christmas. It racked up sales of 433,000 units in Japan, up from 333,000 units in the prior week. But weirdly enough, the brand new and heavily promoted Wii U home console wobbled badly as its weekly sales slipped to 122,000 units from 130,000 units in the previous week. This may have been the biggest week in Japanese console market in 2012, so the stakes were high.


[More from BGR: Google names 12 best Android apps of 2012]






To put Wii U performance in context, the old PSP portable console sold 58,000 units in Japan during the same week. It is not an encouraging sign that the more than half-decade old PSP (which was displaced by the PlayStation Vita a year ago) managed to sell nearly half as many units as the brand new Wii U during the holidays. Of course, PS Vita continues to miss sales expectations dramatically — it sold only 19,000 units last week, barely more than a quarter of what its predecessor managed.


[More from BGR: Smartphones will replace keys on upcoming Hyundai cars]


Wii U performance may improve dramatically once compelling titles arrive. But during December, it did have “New Super Mario Brothers” and “Nintendo Land” to boost it in Japan. This clearly wasn’t enough. The aging PlayStation 3 sold only 30,000 units and Microsoft’s (MSFT) Xbox 360 barely cleared a thousand units, so the Wii U should have had a clear shot at strong sales performance in the Japanese home console market.


Overall, Japanese game console sales were down sharply from the week ahead of Christmas in 2011. The 3DS is a big hit in 2012 but instead of buoying the entire console market, it seems to be sapping energy from the Wii U and PS Vita.


It’s still early days for the Wii U, but Nintendo has probably started sweating a bit.


This article was originally published by BGR


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McCartney, ‘God particle’ scientist get honors






LONDON (AP) — Stella McCartney, who designed the uniforms worn by Britain’s record-smashing Olympic team, and Scottish physicist Peter Higgs, who gave his name to the so-called “God particle,” are among the hundreds being honored by Queen Elizabeth II this New Year.


The list is particularly heavy with Britain’s Olympic heroes, but it also includes “Star Wars” actor Ewan McGregor, eccentric English singer Kate Bush, Roald Dahl illustrator Quentin Blake, and Jamie Lowther-Pinkerton, the royal aide who helped organize the watched-around-the-world wedding of Prince William to Kate Middleton.






McCartney was honored with the title of Officer of the Order of the British Empire, or OBE, in part for her work creating the skintight, red-white-and-blue uniforms worn by British athletes as they grabbed 65 medals during the 2012 games hosted by London. McCartney is the designer daughter of ex-Beatle Paul McCartney and his first wife Linda, and she has moved to make the family name almost as synonymous with fashion as it is with music, setting up a successful business and a critically-acclaimed label.


Higgs’ achievements, which made him a Companion of Honor, touch on the nature and the origins of the universe. The 83-year-old researcher’s work in theoretical physics sought to explain what gives things weight. He said it was while walking through the Scottish mountains that he hit upon the concept of what would later become known as the Higgs boson, an elusive subatomic particle that gives objects mass and combines with gravity to give them weight.


For decades, the existence of such a particle remained just a theory, but earlier this year scientists working at the European Organization for Nuclear Research, or CERN, said they’d found compelling evidence that the Higgs boson was out there. Or in there. Or whatever.


All of Britain’s gold medalists from this year’s games were on the list, with cyclist Bradley Wiggins and sailor Ben Ainslie honored with knighthoods. Sebastian Coe, who masterminded the games as chairman of the London organizing committee, was made a Companion of Honor — a prestigious title also awarded to Higgs.


Honors lists typically include a sprinkling of star power, and this year was no different. Ewan McGregor, who came to public attention through his role as the heroin-addled anti-hero of British drug drama “Trainspotting,” was awarded an OBE. The 41-year-old actor is also known for his turn as a young Obi-Wan Kenobi in the “Star Wars” prequels.


“Babooshka” singer Kate Bush said she was delighted to be made a Commander of the Order of the British Empire, or CBE, for a musical career which has resulted in a string of quirky hits including “Wuthering Heights,” ”Cloudbusting,” and “Man With The Child In His Eyes.”


Other art world honorees included artist Tracey Emin and Quentin Blake, whose spiky, exuberant illustrations are best known through the work of his collaborator Roald Dahl.


Politicians, policemen, and spies got honors too. Scotland Yard chief Bernard Hogan-Howe was awarded a knighthood; former British foreign minister Margaret Beckett was made a Dame Commander of the Order of the British Empire. Former Prime Minister Tony Blair’s wife Cherie was made a CBE for her charity work. MI5 chief Jonathan Evans was made a Knight Commander of the Order of Bath.


Also honored was the man credited with helping pull off the wedding of the decade: Jamie Lowther-Pinkerton, principal private secretary to the Duke and Duchess of Cambridge (as Prince William and his wife are formally known) was made a Lieutenant of the Royal Victorian Order.


Britain’s honors are bestowed twice a year by the monarch, at New Year’s and on her official birthday in June. Although the queen does pick out some lesser honors herself, the vast majority of recipients are selected by government committees from nominations made by officials and members of the public.


In descending order, the honors are knighthoods, CBE, OBE, and MBE — Member of the Order of the British Empire. Knights are addressed as “sir” or “dame.” Recipients of the other honors, such as the Order of the Companions of Honor given to Higgs and Coe or the Royal Victorian Order personally picked out by the queen, receive no title but can put the letters after their names.


The New Year’s honors carried the usual batch of courtiers — even the royal household’s switchboard operator got a medal — as well as senior civil servants, soldiers, charity executives, successful entrepreneurs, established academics, volunteers, and community workers. Some of the more eclectic honors included the OBE handed to card game columnist Andrew Michael Robson “for services to the game of Bridge,” and OBE given to river conservationist Andrew Douglas-Home “for services to Fishing.”


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Humidity Levels Explain U.S. Flu Winter Peak









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Former City regulator knighted







A former head of the Financial Services Authority and a founding member of the Bank of England’s Monetary Policy Committee have been recognised in the New Year Honours.






Hector Sants, who was in charge of regulation at the start of the credit crisis, has been knighted.


It is in recognition for services to financial regulation.


Alan Budd, who was on the first Monetary Policy Committee in 1997, becomes a Knight of the Grand Cross.


Sir Hector said his award was a “testament to the hard work of everyone at the FSA during the crisis, their willingness to learn lessons and to bring about the changes that were necessary”.


Sir Hector began his City career as a stockbroker at Phillips and Drew, later taking senior positions at the investment banks UBS and Credit Suisse.


He took the job as head of the FSA two months before the collapse of Northern Rock in 2007, which was followed by huge government bailouts for two leading banks, Royal Bank of Scotland and Lloyds TSB.


MPs criticised the FSA for its handling of regulation during the credit crunch and accused it of being “asleep at the wheel”, but he has also been praised for his work at the regulator and for pressing banks to boost their reserves.


Sir Hector is joining Barclays bank in January to improve the bank’s reputation with governments and regulators internationally.


He will be directly responsible for making sure all its 140,000 staff obey the law in the more than 50 countries where it operates and that it is held in higher esteem by governments and regulators.


While at the FSA, Sir Hector personally warned the then chairman of Barclays, Marcus Agius, that Bob Diamond might not be a suitable choice to become the bank’s chief executive in 2010.


He also conveyed the FSA’s worries about the bank’s culture, including the attitudes of its most senior staff to risk-taking, tax laws and banking regulations.


Earlier this year, the FSA fined Barclays £59.5m for its part in the Libor rate-rigging scandal, after which Mr Diamond left the left the bank.


Entrepreneurship recognised


Sir Alan, a professor of economics, was also the first chairman of the government’s independent forecasting body, the Office for Budget Responsibility (OBR), but left after just three months in the job.


He was an adviser to Chancellor Norman Lamont during the Exchange Rate Mechanism crisis of the early 1990s and headed the inquiry into whether former Home Secretary David Blunkett misused his position.


He also headed the inquiry into the UK’s gambling laws which led to their liberalisation.


Sir Alan Budd’s career has also linked him with Barclays and Credit Suisse.


He was senior economic adviser to Barclays in 1989-1991, and is currently a senior adviser to Credit Suisse First Boston.


He was knighted in 1997.


Industry and the economy make up 12% of the New Year Honours list, with Priscilla Newell, Chair of the Royal Mail Pension Trustees, becoming a dame and Sherry Coutu, a long-time supporter of UK start-ups, a CBE for services to entrepreneurship.


Harriet Vine and Rosie Wolfenden, co-founders of cult jewellery brand Tatty Devine are made MBEs.


BBC News – Business





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C. African Republic neighbors to send help






BANGUI, Central African Republic (AP) — Central African Republic’s neighbors agreed on Friday to dispatch a contingent of soldiers to intervene in the troubled country, where a coalition of rebel groups is seeking to overthrow the president of nearly a decade.


Representatives from the 10-nation Economic Community of Central African States meeting in Gabon, though, did not specify how many troops they could contribute nor did they outline how quickly the military assistance would arrive.






President Francois Bozize had pleaded for international help Thursday as fears grew that the rebels would attack the capital of 600,000 next. Former colonial power France already has said that its forces in the country are there to protect French interests and not Bozize’s government.


“We are now thinking about the arrangements to make so that this mission can be deployed as quickly as possible, said Gabon’s Foreign Affairs Minister Emmanuel Issoze-Ngondet.


The announcement came as military officials in Central African Republic reported renewed fighting in the third largest city of Bambari, which fell under rebel control five days ago.


The military said it had taken country of the town, located about 385 kilometers (240 miles) from the capital, a claim that could not be immediately corroborated.


The ongoing instability prompted the United States to evacuate about 40 people, including the U.S. ambassador, on an U.S. Air Force plane bound for Kenya, said U.S. officials who insisted on anonymity because they weren’t authorized to discuss the operation.


The United States has special forces troops in the country who are assisting in the hunt for Joseph Kony, the fugitive rebel leader of another rebel group known as the Lord’s Resistance Army. The U.S. special forces remain in the country, the U.S. military’s Africa Command said from its headquarters in Stuttgart, Germany.


The evacuation of the U.S. diplomats came in the wake of criticism of how the U.S. handled diplomatic security before and during the attack on its consulate in Benghazi, Libya, on Sept. 11. The ambassador and three other Americans were killed in that attack.


French diplomats are staying despite a violent demonstration outside its embassy earlier this week. Dozens of protesters, angry about a lack of help against rebel forces, threw rocks at the French Embassy in Bangui and stole a French flag. French Foreign Minister Laurent Fabius spoke via phone with Bozize, asking him to take responsibility for the safety of French nationals and diplomatic missions in Central African Republic.


Bozize on Thursday urgently called on former colonial ruler France and other foreign powers to help his government fend off rebels who are quickly seizing territory and approaching the capital. But French President Francois Hollande said France wants to protect its interests in Central African Republic and not Bozize’s government.


This landlocked nation of some 4.4 million people has suffered decades of army revolts, coups and rebellions since gaining independence in 1960 and remains one of the poorest countries in the world. The current president himself came to power nearly a decade ago in the wake of a rebellion in this resource-rich yet deeply poor country.


Speaking to crowds in Bangui, a city of some 600,000, Bozize pleaded with foreign powers to do what they could. He pointed in particular to France. About 200 French soldiers are already in the country, providing technical support and helping to train the local army, according to the French defense ministry.


“France has the means to stop (the rebels) but unfortunately they have done nothing for us until now,” Bozize said.


Bozize’s government earlier reached out to longtime ally Chad, which pledged to send 2,000 troops to bolster Central African Republic’s own forces.


The rebels behind the most recent instability signed a 2007 peace accord allowing them to join the regular army, but insurgent leaders say the deal wasn’t fully implemented. The rebel forces have seized at least 10 towns across the sparsely populated north of the country, and residents in the capital now fear the insurgents could attack at any time, despite assurances by rebel leaders that they are willing to engage in dialogue instead of attacking Bangui.


The rebels have claimed that their actions are justified in light of the “thirst for justice, for peace, for security and for economic development of the people of Central African Republic.”


Despite Central African Republic’s wealth of gold, diamonds, timber and uranium, the government remains perpetually cash-strapped.


The rebels also are demanding that the government make payments to ex-combatants, suggesting that their motives may also be for personal financial gain.


Paris is encouraging peace talks between the government and the rebels, with the French Foreign Ministry noting in a statement that negotiations are due to “begin shortly in Libreville (Gabon).” But it was not immediately clear if any dates have been set for those talks.


The U.N.’s most powerful body condemned the recent violence and expressed concern about the developments.


“The members of the Security Council reiterate their demand that the armed groups immediately cease hostilities, withdraw from captured cities and cease any further advance towards the city of Bangui,” the statement said.


___


Goma reported from Libreville, Gabon. Associated Press writers Krista Larson in Dakar, Senegal; and Jason Straziuso in Nairobi, Kenya contributed to this report.


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Windows Phone Store doubled in size this year









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FBI removes many redactions in Marilyn Monroe file






LOS ANGELES (AP) — The FBI has re-issued files it kept on Marilyn Monroe, removing dozens of redactions from entries related to surveillance of the actress for communist ties.


A large section of the files obtained by The Associated Press focuses on Monroe’s 1962 trip to Mexico and her emerging friendship with Frederick Vanderbilt Field, who was disinherited from his wealthy family for leftist views. Field was Monroe’s guide on a trip in which she furniture-shopped for her new home.






The AP appealed the redactions in the file as part of a series of stories on the 50th anniversary of Monroe’s death in 1962, but the bureau previously said it no longer had access to the files. The bureau issued a new version after a request for details on the records’ locations.


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Program helps veterans reintegrate through music






MONTCLAIR, N.J. (AP) — During stressful times as a combat medic in Afghanistan, Mason Sullivan found solace in Vivaldi. New Jersey native Nairobi Cruz was comforted by country music, a genre she had never heard before joining the Army. For Jose Mercedes, it was an eclectic iPod mix that helped him cope with losing an arm during a tour of duty in Iraq.


These three young veterans all say music played a crucial role in alleviating the stresses of active duty. Now, all three are enrolled in a program that hopes to use music to ease their reintegration into civilian life.






“It’s a therapy session without the ‘sit down, lay down, and write notes,’” Mercedes, 26, of Union City, said of the music program. “It’s different — it’s an alternative that’s way better.”


The pilot program, called Voices of Valor, has veterans work as a group to synthesize their experiences into musical lyrics. Guided by musicians and a psychology mentor, they write and record a song, and then hold a CD release party. The program is currently under way at Montclair State University, where students participate through the school’s veteran affairs program.


Developed by husband and wife team Rena Fruchter and Brian Dallow, it is open to veterans of any age and background. No musical experience is required.


Both accomplished musicians, Fruchter and Dallow created the program as part of Music for All Seasons, an organization they founded which runs musical programs for audiences at places ranging from nursing homes to prisons.


Based on their experiences working with children at shelters for victims of domestic violence, Fruchter and Dallow realized that young people too traumatized to talk about what they had been through were nevertheless willing to bang on an instrument or sing — often leading to communication breakthroughs. They felt the same might be true for veterans, or other populations traditionally averse to more overt forms of ‘talk therapy.’


“We’ve had situations in which veterans have been carrying their burdens deep inside for such a long time, and they come into this group and they begin to talk about things that they’ve never talked about before,” Fruchter said. “They really open up, and it translates into some music that is really amazing and incredible and powerful.”


During a recent session of the eight-week program in Montclair, music facilitators Jennifer Lampert, a former Miss USO, and Julio Fernandez, a musician and member of the band Spyro Gyra, lead a small group of young veterans in brainstorming about their experiences.


“Tired of being angry,” ”Easier not to move on,” ”The war at home,” were phrases Lampert extracted from a discussion among the participants and she wrote each phrase in marker on large notepads fastened to a classroom blackboard. As they spoke, Fernandez strummed an acoustic guitar while Lampert sang some of the phrases the students had come up with, adjusting the beat and tempo at their suggestion. Suddenly, a musical lyric emerged: “Sometimes, I wish the past is where I stayed.”


A few weeks later, the group gathered at a sound studio in Union City, where they donned headphones and clearly relished the opportunity to record their collectively written tune, “Freedom,” in a professional studio.


“To see music heal people in that way, it’s beautiful, and the real incredible part is you don’t have to do anything but give in to the music,” Lampert said. She recounted how, time and again, the facilitators of the program had watched some participants start the class with shoulders slumped, hesitant to make eye contact, and afraid to speak up. Through the process of writing music they changed, she said, into group-focused, smiling, active participants unafraid to stand up and belt out a tune.


7/87/8_____


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