House Speaker Boehner optimistic on averting fiscal crisis












(Reuters) – House Speaker John Boehner voiced optimism that Republicans could broker a deal with the White House to avoid year-end austerity measures, saying on Wednesday that Republicans were willing to put revenues on the table if Democrats agreed to spending cuts.


“I am optimistic that we can continue to work together to avert this crisis sooner rather than later,” the Ohio Republican told reporters. “We (Republicans) put revenue on the table as long as it is accompanied by serious spending cuts to avert this crisis.”












The $ 600 billion in tax increases and spending cuts will start going into effect early next year if the Obama administration and lawmakers cannot agree on how to change the law. Top policymakers say these austerity measures could topple the U.S. economy back into a recession.


(Reporting by Richard Cowan; Editing by Bill Trott)


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IMF says Spain’s financial reform on track, challenges ahead












MADRID (Reuters) – Spain’s financial sector reform is on track and all deadlines have been met so far but difficult steps still lie ahead while risks for the economy and the country’s lenders remain high, the International Monetary Fund said on Wednesday.


The report follows European Commission approval of the recapitalization plans of four nationalized Spanish banks, under a 100 billion euro European credit line agreed in June.












The financial sector program is on track so far, with all deadlines met. However, the most challenging steps lie ahead, especially those related to implementing bank restructuring plans and making the asset management company effective,” the IMF said in its first progress report on the financial reform.


It added that bank liquidity remains a risk that is only mitigated by extensive support from the European Central Bank, while non-viable lenders should be quickly wound down and mergers that do not generate value should be avoided.


Economic risks remain high, with further headwinds expected from private-sector deleveraging, tight credit, falling house prices, fiscal consolidation, weak confidence and high uncertainty, it said.


(Reporting by Julien Toyer; Editing by Fiona Ortiz)


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Mexican beauty queen killed in shootout












CULIACAN, Mexico (AP) — A 20-year-old state beauty queen died in a gun battle between soldiers and the alleged gang of drug traffickers she was traveling with in a scene befitting the hit movie “Miss Bala,” or “Miss Bullet,” about Mexico’s not uncommon ties between narcos and beautiful pageant contestants.


The body of Maria Susana Flores Gamez was found Saturday lying near an assault rifle on a rural road in a mountainous area of the drug-plagued state of Sinaloa, the chief state prosecutor said Monday. It was unclear if she had used the weapon.












“She was with the gang of criminals, but we cannot say whether she participated in the shootout,” state prosecutor Marco Antonio Higuera said. “That’s what we’re going to have to investigate.”


The slender, 5-foot-7-inch brunette was voted the 2012 Woman of Sinaloa in a beauty pageant in February. In June, the model competed with other seven contestants for the more prestigious state beauty contest, Our Beauty Sinaloa, but didn’t win. The Our Beauty state winners compete for the Miss Mexico title, whose holder represents the country in the international Miss Universe.


Higuera said Flores Gamez was traveling in one of the vehicles that engaged soldiers in an hours-long chase and running gun battle on Saturday near her native city of Guamuchil in the state of Sinaloa, home to Mexico’s most powerful drug cartel. Higuera said two other members of the drug gang were killed and four were detained.


The shootout began when the gunmen opened fire on a Mexican army patrol. Soldiers gave chase and cornered the gang at a safe house in the town of Mocorito. The other men escaped, and the gunbattle continued along a nearby roadway, where the gang’s vehicles were eventually stopped. Six vehicles, drugs and weapons were seized following the confrontation.


It was at least the third instance in which a beauty queen or pageant contestants have been linked to Mexico’s violent drug gangs, a theme so common it was the subject of a critically acclaimed 2011 movie.


In “Miss Bala,” Mexico’s official submission to the Best Foreign Language Film category of this year’s Academy Awards, a young woman competing for Miss Baja California becomes an unwilling participant in a drug-running ring, finally getting arrested for deeds she was forced into performing.


In real life, former Miss Sinaloa Laura Zuniga was stripped of her 2008 crown in the Hispanoamerican Queen pageant after she was detained on suspicion of drug and weapons violations. She was later released without charges.


Zuniga was detained in western Mexico in late 2010 along with seven men, some of them suspected drug traffickers. Authorities found a large stash of weapons, ammunition and $ 53,300 with them inside a vehicle.


In 2011, a Colombian former model and pageant contestant was detained along with Jose Jorge Balderas, an accused drug trafficker and suspect in the 2010 bar shooting of Salvador Cabanas, a former star for Paraguay‘s national football team and Mexico’s Club America. She was also later released.


Higuera said Flores Gamez’s body has been turned over to relatives for burial.


“This is a sad situation,” Higuera told a local radio station. She had been enrolled in media courses at a local university, and had been modeling and in pageants since at least 2009.


Javier Valdez, the author of a 2009 book about narco ties to beauty pageants entitled “Miss Narco,” said “this is a recurrent story.”


“There is a relationship, sometimes pleasant and sometimes tragic, between organized crime and the beauty queens, the pageants, the beauty industry itself,” Valdez said.


“It is a question of privilege, power, money, but also a question of need,” said Valdez. “For a lot of these young women, it is easy to get involved with organized crime, in a country that doesn’t offer many opportunities for young people.”


Sometimes drug traffickers seek out beauty queens, but sometimes the models themselves look for narco boyfriends, Valdez said.


“I once wrote about a girl I knew of who was desperate to get a narco boyfriend,” he said. “She practically took out a classified ad saying ‘Looking for a Narco’.”


The stories seldom end well. In the best of cases, a beautiful woman with a tear-stained face is marched before the press in handcuffs. In the worst of cases, they simply disappear.


“They are disposable objects, the lowest link in the chain of criminal organizations, the young men recruited as gunmen and the pretty young women who are tossed away in two or three years, or are turned into police or killed,” Valdez said.


___


Associated Press Writer E. Eduardo Castillo contributed to this report


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Nintendo says more than 400,000 Wii Us sold in US












NEW YORK (AP) — Nintendo has sold more than 400,000 of its new video game console, the Wii U, in its first week on sale in the U.S., the company said Monday.


The Wii U launched on Nov. 18 in the U.S. at a starting price of $ 300. Nintendo said the sales figure, based on internal estimates, is through Saturday, or seven days later.












The Wii U is the first major game console to launch in six years. It comes with a new touch-screen controller that promises to change how people play games by offering different people in the same room a different experience, depending on the controller used.


Six years ago, Nintendo Co. sold 475,000 of the original Wii in that console’s first seven days in stores, according to data from the NPD Group. The original Wii remains available, and Nintendo said it sold more than 300,000 of them last week, along with roughly 250,000 handheld Nintendo 3DS units and about 275,000 of the Nintendo DS.


At this early stage, demand isn’t the only factor dictating how many consoles are sold. Supply is, too. This means it’s likely that more people wanted to buy the Wii U in the first week than those who were able to. The original Wii was in short supply more than a year after it went on sale.


As of Monday afternoon, the website of Best Buy Co. was sold out of the Wii U. Video game retailer GameStop Corp. said there was at least a three day wait for a deluxe Wii U, which costs $ 350, has more memory and comes with a game called “Nintendo Land.” GameStop still had the basic, $ 300 version available.


Wedbush analyst Michael Pachter estimates that Nintendo will ship 1 million to 1.5 million Wii Us in the U.S. through the end of January.


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New Jersey’s Christie, more popular than ever, seeks re-election












NEW YORK (Reuters) – New Jersey Governor Chris Christie, a Republican star who has enjoying record-high popularity for his hands-on approach to Superstorm Sandy, on Monday filed papers announcing his intention to seek a second term next November.


Christie, a popular surrogate on Republican Mitt Romney‘s failed presidential campaign, delivered the keynote address at the Republican National Convention this summer and is considered a popular choice to run for president in 2016.












Despite his popularity on the national stage, Christie – known for his blunt, sometimes over-the-top style – has sometimes struggled to win over his constituents in liberal New Jersey, where Democrats control both houses of the legislature.


Since Sandy tore through the state on October 29, laying waste to large stretches of the Jersey Shore, Christie’s approval rating has jumped 19 percentage points.


Christie appeared to set politics aside, touring the damage with Democratic President Barack Obama days before November 6 Election Day, and showing a personal touch with residents who lost their homes or loved ones in the storm.


Christie has a 67 percent favorability rating among registered voters, up from 48 percent in October, according to the Rutgers-Eagleton poll.


Since taking office three years ago, Christie’s signature achievement has been a 2011 law that made sweeping changes to the state’s pensions and health benefits for state workers.


(Reporting by Edith Honan; Editing by Jackie Frank)


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Leading U.S. Democrat Durbin embraces future Medicare reforms












WASHINGTON (Reuters) – Assistant Senate Democratic Leader Dick Durbin, one of U.S. President Barack Obama‘s leading allies, urged fellow liberals on Tuesday to consider reforming the Medicare and Medicaid healthcare programs that they have long fought to shield from cuts.


“Progressives should be willing to talk about ways to ensure the long-term viability of Medicare and Medicaid” programs for the elderly and poor, Durbin said in excerpts of a speech he is to deliver later in the day.












Most Democrats have avoided talking about cutting these two “entitlement” programs, which have been adding to U.S. budget deficits because of the growing numbers of participants and escalating healthcare costs.


Instead, Obama and Democrats in Congress mostly have stressed the need to raise income taxes on the wealthy as part of renewed efforts to reduce budget deficits that have topped $ 1 trillion in each of the past four years.


Lately, Durbin has made high-profile remarks about eventually reducing Medicare and Medicaid costs, just as Republicans have begun talking about raising revenues as part of a tax overhaul effort next year.


On Sunday, Durbin raised the possibility of Democrats accepting Medicare reforms to make higher-income seniors pay more for their care. He made his remarks on ABC’s “This Week” program.


The Illinois senator said, however, that the debate over Medicare and Medicaid should not be part of the more immediate negotiations on averting the “fiscal cliff” of steep tax hikes and spending cuts.


“Meaningful reforms can protect the vulnerable and improve care and efficiency, leaving the programs stronger for future generations,” Durbin said in excerpts of the speech he is to deliver at the Center for American Progress, a liberal think tank.


Durbin’s remarks sought to foster productive talks aimed at averting on January 1 the fiscal cliff, the start of about $ 600 billion worth of tax hikes and automatic spending cuts that could shove the nation into a recession early next year if allowed to go forward.


The key battle pits Republican demands for deep spending cuts against Democrats’ insistence on tax hikes for the wealthiest Americans.


“We can and we should avoid ‘the fiscal cliff’ by acting now – before January 1st – to extend middle class tax cuts for 98 percent of the American people and allow the tax cuts to expire for those earning over $ 250,000 a year,” Durbin said.


Republicans could block any bill that does not extend all tax cuts. But after January 1, with all tax cuts expired, Democrats could draft a bill that cuts taxes only for those earning up to $ 250,000, cranking up pressure on Republicans to go along.


Durbin said decisions on Medicare and Medicaid should not be put off too long.


“Putting the discussions off indefinitely makes our choices harder, our success less likely and negative effects on current beneficiaries a near certainty,” he said.


(Reporting by Thomas Ferraro; Editing by Jackie Frank)


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OECD: Europe weighing on global economy












PARIS (AP) — The global economy could easily slide back into recession if its major problems are left to fester, a leading international economic body said Tuesday.


In its half-yearly update, the Organization for Economic Cooperation and Development warned that the recovery will be “hesitant and uneven” over the coming two years and that a new major contraction cannot be ruled out.












“The world economy is far from being out of the woods,” OECD Secretary-General Angel GurrĂ­a said. “Governments must act decisively, using all the tools at their disposal to turn confidence around and boost growth and jobs in the United States, Europe and elsewhere.”


Gurria’s downbeat assessment came as the OECD published a fairly glum set of predictions. Though the world economy is expected to grow by 3.4 percent next year, up from 2.9 percent this, the numbers mask big divergences around the world.


Though countries like China, Brazil and India are expected to see growth pick up, the more established economies that the Paris-based OECD traditionally monitors remain stuck in a rut.


In particular, the OECD was gloomier about Europe than in its last forecast six months ago, saying “the greatest threats to the world economy” lie in the 17-country eurozone, which continues to grapple with a debt crisis after three years. A deep global recession is also possible, it said, if the European crisis doesn’t stabilize.


The downbeat report came despite recent that the crisis in the eurozone is ebbing. Earlier Greece’s euro partners and the International Monetary agreed to hand over more bailout cash to the country, a move that’s eliminated fears of an imminent bankruptcy.


The OECD is now predicting a 0.4 percent contraction this year for the eurozone, worse than May’s 0.1 percent forecast. For next year, it’s forecasting a further 0.1 percent fall, in contrast to the previous prediction of 0.9 percent growth.


It also downgraded its forecasts for the U.S. economy and warned that it could be worse if the White House doesn’t clinch a deal with lawmakers on the budget. Assuming a deal is thrashed out, the OECD has penciled in growth of 2 percent for the U.S. next year, down from a forecast of 2.6 percent in May.


The OECD cautioned that growth outside the OECD — which comprises 34 developed economies mostly in North America and Europe – would be slightly faster but crimped by Europe’s troubles.


“A slowdown has surfaced in many emerging market economies, partly reflecting the impact of the recession in Europe,” said Pier Carlo Padoan, the OECD’s chief economist.


The OECD also warned the U.S. and Europe against cutting spending too sharply and too quickly, saying that could further hurt growth prospects. It suggested that countries with stronger economies such as Germany and China could provide temporary fiscal stimulus to boost growth.


“Global prospects remain fragile, with strong downside risks, and are heavily dependent on the speed and decisiveness of policy actions,” it said.


Padoan expressed concern about the so-called fiscal cliff in the U.S., automatic tax increases and steep spending cuts that take effect in January unless President Barack Obama and Congress reach a budget agreement.


“If the fiscal cliff is not avoided, a large negative shock could bring the U.S. and the global economy into recession,” Padoan said.


The report argues for “measured” spending cuts and tax increases.


“Reducing the large federal budget deficit is necessary to restore fiscal sustainability, but this should be done gradually and in the context of a well-identified medium-term consolidation plan,” Padoan said.


The report warned that unemployment would continue to rise in the eurozone from 11.1 percent this year to 12 percent in 2014, but that the rate in the U.S. would gradually decline to 7.5 percent in 2014.


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UN climate talks open in Qatar












DOHA, Qatar (AP) — U.N. talks on a new climate pact resumed Monday in oil and gas-rich Qatar, where negotiators from nearly 200 countries will discuss fighting global warming and helping poor nations adapt to it.


The two-decade-old talks have not fulfilled their main purpose: reducing the greenhouse gas emissions that scientists say are warming the planet.












Attempts to create a new climate treaty failed in Copenhagen three years ago but countries agreed last year to try again, giving themselves a deadline of 2015 to adopt a new treaty.


A host of issues need to be resolved by then, including how to spread the burden of emissions cuts between rich and poor countries. That’s unlikely to be decided in the Qatari capital of Doha, where negotiators will focus on extending the Kyoto Protocol, an emissions deal for industrialized countries, and trying to raise billions of dollars to help developing countries adapt to a shifting climate.


“We all realize why we are here, why we keep coming back year and after year,” said South Africa Foreign Minister Maite Nkoana-Mashabane, who led last year’s talks in Durban, South Africa. “We owe it to our people, the global citizenry. We owe it to our children to give them a safer future than what they are currently facing.”


The U.N. process is often criticized, even ridiculed, both by climate activists who say the talks are too slow, and by those who challenge the scientific near-consensus that the global temperature rise is at least partly caused by human activity, primarily the burning of fossil fuels like coal and oil.


The concentration of greenhouse gases such as carbon dioxide has jumped 20 percent since 2000, according to a U.N. report released last week.


A recent projection by the World Bank showed temperatures are on track to increase by up to 4 degrees C (7.2 F) this century, compared with pre-industrial times, overshooting the 2-degree target that has been the goal of the U.N. talks.


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Yes, the Government Can Still Spy on Your Digital Life (for Now)












Ahead of a controversial Senate debate on digital privacy this week, the battle over warrantless cell-phone and Internet searches is beginning to take shape — even as law-enforcement agencies continue to carry out the searches anyway. Judges across the country have thrown out cases that used tracked digital American lives without warrants, but others haven’t, reports The New York Times‘s Somini Sengupta. A DC court, for example, compared text messages to voicemail messages, which because they can be overheard are not protected by state privacy laws, argued one judge. A Louisiana court is deciding if cell-phone records are like business records. Another court ruled that GPS cell phone tracking without a warrant was fine, too. Others, however, argue that cell phones are more than just a paper trail. One judge called cell phones “raw, unvarnished and immediate, revealing the most intimate of thoughts and emotions,” as in something that is subject to higher privacy standards. Meanwhile, we see the same inconsistencies with Internet protections, reports The Wall Street Journal‘s Joe Pallazolo. A federal court recently ruled that people who use their neighbors’ WiFi without permission forfeit privacy, opening up government officials to warrantless searches. The same ruling other courts have made for IP addresses. However, the law isn’t that clear-cut, either, argues George Washington University professor Oren Kerr. 


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Without clear rules, government agencies have continued investigations with warrantless searches. As people have started using cell phones more often and for more than just calling, law enforcement agency requests for cell-phone information have increased, reported The New York Times‘s Eric Lichtblau earlier this year. AT&T gets more than 700 requests a day from various agencies, triple what it got in 2007, he notes. Last year, the total number of requests came in at at least 1.3 million. At the same time, the application for wiretapping warrants declined 14 percent last year to 2,732, according to the Administrative Office of the United States Courts. A curious pattern considering the requests for information have gone up. Though these wireless carriers say they require a search warrant, a court order or a formal subpoena to release information, “in cases that law enforcement officials deem an emergency, a less formal request is often enough,” writes Lichtblau. Or, it’s possible that law enforcement has opted for other forms of tracking that don’t require warrants, at least not according to some judges. 


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A Senate debate beginning Thursday to make changes on the Electronic Communications Privacy Act might bring some clarity to these issues. However, it’s unclear if the revised bill will give the government more or less power, and it doesn’t sound like the vote will apply to all cell phone or Internet data. An early draft of the bill reportedly allowed warrantless e-mail searches, reported CNET’s Declan McCullagh. Since, Senator Patrick Leahy, who is spearheading the bill, has denied that the updates to the regulation will do that, however. Instead, the revised bill will require search warrants to get into email no matter how old, says Sengupta. That should presumably apply to some of our smartphone and Internet data, too. But it doesn’t address text messages or location information, other concerns of consumers.


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Rolling Stones turn back clock with hit-filled comeback












LONDON (Reuters) – The Rolling Stones turned back the clock in style on Sunday with their first concert in five years, strutting and swaggering their way through hit after familiar hit to celebrate 50 years in business.


Before a packed crowd of 20,000 at London‘s O2 Arena, they banished doubts that age may have slowed down one of the world’s greatest rock and roll bands, as lead singer Mick Jagger launched into “I Wanna Be Your Man”.












More than two hours of high-octane, blues-infused rock later, and they were still going strong with an impressive encore comprising “You Can’t Always Get What You Want” and “Jumpin’ Jack Flash”.


In between there were guest appearances from American R&B singer-songwriter Mary J. Blige, who delivered a rousing duet with Jagger on “Gimme Shelter” and guitarist Jeff Beck who provided the power chords for “I’m Going Down”.


Former Rolling Stones Bill Wyman and Mick Taylor were also back in the fold, performing with the regular quartet of Jagger, Ronnie Wood and Keith Richards on guitar and Charlie Watts on drums for the first time in 20 years.


“It took us 50 years to get from Dartford to Greenwich!” said Jagger, referring to their roots just a few miles from the venue in southeast London. “But you know, we made it. What’s even more amazing is that you’re still coming to see us…we can’t thank you enough.”


The Sunday night gig was the first of two at the O2 Arena before the band crosses the Atlantic to play three dates in the United States.


The mini-tour is the culmination of a busy few months of events, rehearsals and recordings to mark 50 years since the rockers first took to the stage at the Marquee Club on London‘s Oxford Street in July, 1962.


There has been a photo album, two new songs, a music video, a documentary film, a blitz of media appearances and a handful of warm-up gigs in Paris.


“STYLE AND PANACHE”


The reunion nearly did not happen. One factor behind the long break since their record-breaking “A Bigger Bang” tour in 2007 has been Wood’s struggle with alcohol addiction, while Jagger and Richards also fell out over comments the guitarist made about the singer in a 2010 autobiography.


But they eventually buried the hatchet, and Richards joked in a recent interview: “We can’t get divorced – we’re doing it for the kids!”


Critics were fulsome in their praise of the first comeback gig.


Keith Richards has said that the beauty of rock and roll is that every night a different band might be the world’s greatest. Well, last night at the O2 Arena, it was the turn of the Rolling Stones themselves to lay claim to the title they invented,” wrote Neil McCormick of the Daily Telegraph.


“And they did it with some style and panache.”


The big question on every fan’s lips is whether the five concerts lead to a world tour and even new material. The Stones sang their two new tracks “Doom and Gloom” and “One More Shot”, which appeared on their latest greatest hits album “GRRR!”.


Richards has hinted that the five concerts ending at the Newark Prudential Center in the United States on December 15 would not be the last.


“Once the juggernaut starts rolling, it ain’t gonna stop,” he told Rolling Stone magazine. “So without sort of saying definitely yes – yeah. We ain’t doing all this for four gigs!”


The band has come in for criticism from fans about the high price of tickets to the shows – they ranged from around 95 pounds ($ 150) to up to 950 pounds for a VIP seat.


The flamboyant veterans, whose average age is 68, have defended the costs, saying the shows were expensive to put on, although specialist music publication Billboard reported the band would earn $ 25 million from the four shows initially announced. A fifth was added later.


“Everybody all right there in the cheap seats,” Jagger asked pointedly as he looked high to his left at the arena. “They’re not really cheap though are they? That’s the trouble.”


Among the biggest cheers on the night were for classics including “Wild Horses”, “It’s Only Rock and Roll” and “Start Me Up”.


There was even time for the odd reference to their advancing years.


“Good to see you all,” said Richards with a mischievous grin. “Good to see anybody.”


(Reporting by Mike Collett-White, editing by Paul Casciato)


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