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Older News Archivescom0116
NEWS     FRIDAY, SEPTEMBER 3 2010     NEWS

EARLY EDTION

Oil Rig Explodes Off Louisiana Coast
A mile-long oil sheen spread Thursday from an offshore petroleum platform burning in the Gulf of Mexico off Lousiana, west of the site of BP's massive spill. Coast Guard Petty Officer Bill Coklough said the sheen, about 100 feet wide, was spotted near the platform owned by Houston-based Mariner Energy Inc. He said Mariner had deployed three firefighting vessels to the site and one already was in place fighting the blaze. The Coast Guard says no one was killed in the explosion and fire, which was reported by a commercial helicopter flying over the site around 9 a.m. CDT. All 13 people aboard the rig were rescued as they floated in the nearby water in survival outfits called gumby suits. Fox News

U.S. Delays Web Traffic Rules By Seeking More Comment
U.S. communications regulators on Wednesday put off a controversial decision on Internet traffic rules, giving industry and consumer groups a chance to forge a compromise while avoiding a politically sensitive issue ahead of the November elections. The Federal Communications Commission has been prodding phone, cable and Internet companies for months to find consensus on the thorny issue of net neutrality -- a debate over whether high-speed Internet providers should be allowed to give preferential treatment to content providers who pay for faster transmission. Broadband and Internet companies have held a series of face-to-face and phone meetings this summer to craft a framework on how to treat the Internet data flowing through both home connections and wireless devices. Reuters

Earl Weakening As It Approaches East Coast
Even as Hurricane Earl weakened Thursday afternoon, East Coast residents scrambled to ready themselves ahead of its arrival. Earl is now barely a Category 3 hurricane, with sustained winds of 115 mph, the National Hurricane Center said in its 5 p.m. ET advisory. Hurricane warnings and watches stretched from North Carolina to Delaware and into Massachusetts, where a hurricane warning was issued for Cape Cod, Martha's Vineyard, Nantucket and the surrounding area. A hurricane watch was also issued for the coast of Nova Scotia, Canada. CNN

Departing White House Economic Adviser Urges More Spending
Christina Romer, the departing chair of the White House Council of Economic Advisors, said the “only surefire ways” to boost the economy are for the "government to spend more and tax less.” She also said that concern about the federal deficit cannot be an "excuse for leaving unemployed Americans to suffer.”  “While we would all love to find the inexpensive magic bullet to our economic troubles, the truth is, it almost surely doesn’t exist. The only surefire ways for policymakers to substantially increase aggregate demand in the short run are for the government to spend more and tax less. CNS News
VOA VIEW: Deficit spending should not be in any economic recovery equation.

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Stocks Close Higher After Jobs, Housing Reports
Stocks rose Thursday, extending their gains from the day before, after reports on housing, manufacturing and jobs all indicated that the economy continues to grow. The Dow Jones industrial average extended its string of gains for a third session, rising 50 points after a jump of 254 on Wednesday. The much-watched index of 30 industrials has risen 310 points, or 3.1 percent, over the last three days.  The latest trading session was muted ahead of the government's closely watched monthly report on employment due out Friday. "We're treading water," said Dan Genter, CEO of RNC Genter Capital. Traders are waiting to see if the August jobs report "provides more of a rescue or a shark attack." MSNBC
VOA VIEW: The economy is not growing.

Mike Castle Goes Negative Against Tea Party-Backed Christine O'Donnell In Delaware
Alaska Sen. Lisa Murkowski suffered a stunning defeat in the Republican primary last week after she refused to go negative against her Tea Party-backed opponent Joe Miller. Republican Rep. Mike Castle, running for the open Senate seat in Delaware, doesn't plan on following Murkowski's lead. Castle's campaign is planning to air negative ads against his primary opponent Christine O'Donnell, National Journal's Hotline reports. Castle, who has represented Delaware's only congressional district for 18 years, has for months been the presumptive Republican nominee for Joe Biden's old Senate seat. Meanwhile, O'Donnell is a perennial candidate in the state. CBS

Low Interest Rates Squeezing Pension Funds
Thanks to stock market gyrations and the lowest interest rates in 60 years, millions of Americans are struggling to keep their retirement savings intact and secure their future. And it's not any easier for managers of their pension funds. Both groups share a mounting problem. The plunge in interest rates engineered to save the U.S. economy and banking system has left them with a giant money hole to fill. Much like a retiree trying to live off the income from Treasury bonds, when interest rates fall, you need a lot more bonds to generate the same level of income. The same principle has left the nation’s public and private pension funds badly underfunded.  MSNBC

Victims Not Told Of Some Inmate Furloughs
Federal prisons are failing to notify crime victims and witnesses when inmates are allowed to travel by themselves for medical treatment, the Justice Department inspector general said Thursday. The federal Bureau of Prisons expects it will take until 2017 to require the notifications because it will take that long to negotiate the matter with the union that represents federal corrections officers, Inspector General Glenn Fine said in a report. The timeframe is "excessive and unacceptable," Fine said. The Bureau of Prisons proposed a revised furlough policy in 2003, but it has yet to be negotiated with the American Federation of Government Employees (AFGE) National Council of Prison Locals, Fine's report said. The agreement between the union and the agency specifies how policy proposals are negotiated, including that they generally are handled in the order received, the report said. It noted that 50 policies are awaiting negotiation. Las Vegas Sun

U.S. Won't Turn Back On Afghanistan
U.S. Defense Secretary Robert Gates said Thursday the United States is committed to a long-term partnership with Afghanistan. "We learned our lesson in turning our back on Afghanistan in 1989 and we have no intention of doing so again," Gates said Thursday during a news conference with Afghan President Hamid Karzai in Kabul. He said the United States has tripled the number of U.S. civilians in the country and that he was pleased to see that "the size and capabilities of the Afghan security forces continue to grow in number and in quality." UPI

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Israel, Palestinians Agree To Second Round Of Talks On Framework Of Peace Deal
Israeli and Palestinian leaders agreed Thursday to produce a framework for a permanent peace deal and to hold a second round of direct talks this month, a modest achievement reached amid deep skepticism about success at their first such session in two years. Israeli Prime Minister Benjamin Netanyahu and Palestinian Authority President Mahmoud Abbas will meet again on Sept. 14 and 15 in the Middle East, likely at the Egyptian Red Sea resort of Sharm el Sheik, with an eye toward forging the outline of a pact that could lead to a final agreement in a year's time. Washington Times

Eyes On Hillary Clinton As She Leads Mideast Peace Talks
Secretary of State Hillary Clinton today stepped into the international spotlight, assuming the day-to-day responsibility of trying to broker a Mideast peace that has eluded her predecessors for decades. Seated between Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas at the State Department, Clinton heralded the first direct negotiations between the parties in nearly two years. Whether both sides can overcome a history of failed negotiations and dashed hopes will depend in large part on the individual leaders making difficult concessions, Clinton said. ABC

U.S. Pending Home Sales Rise In Sign Market Steadying
Pending sales of existing houses unexpectedly climbed in July from a record low, indicating the real-estate market is steadying following the end of a government tax credit. The index of purchase contracts rose 5.2 percent after a revised 2.8 percent drop the prior month, figures from the National Association of Realtors showed today in Washington. Combined with data showing claims for unemployment benefits dropped and orders to factories increased, the reports allayed concern the economy was tipping back into a recession.  Bloomberg

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More Democrats Pushing To Keep Tax Cuts
Congress seems increasingly reluctant to let taxes go up, even on wealthier Americans. Worried about the fragile economy and their own upcoming elections, a growing number of Democrats are joining the rock-solid Republican opposition to President Barack Obama's plans to let some of the Bush administration's tax cuts expire. Democratic leaders in Congress still back Obama, but the willingness to raise taxes is waning among the rank and file as the stagnant economy threatens the party's majority in the House and Senate. The most sweeping tax cuts in a generation are due to expire in January, and that's setting up a showdown when lawmakers return from their summer vacations this month. By waiting to act on the tax cuts until just before congressional elections in November, Democratic leaders have raised the stakes, politically and for taxpayers. CBS

Bernanke: Shut Down Banks If They Threaten System
Federal Reserve Chairman Ben Bernanke told a panel investigating the financial crisis that regulators must be ready to shutter the largest institutions if they threaten to bring down the financial system. "If the crisis has a single lesson, it is that the too-big-to-fail problem must be solved," Mr. Bernanke said Thursday while testifying before the Financial Crisis Inquiry Commission. Mr. Bernanke also said it was impossible for the Fed to rescue Lehman Brothers from bankruptcy in 2008 because the Wall Street firm lacked sufficient collateral to secure a loan. Lehman's former chief executive told the panel a day earlier that the firm could have been saved, but regulators refused to provide help. Washington Times

Bernanke Says He Wasn't `Straightforward' On Lehman
Federal Reserve Chairman Ben S. Bernanke said he regretted not saying in congressional testimony shortly after the failure of Lehman Brothers Holdings Inc. in 2008 that the central bank had no authority to save the firm. The testimony at the time “has supported this myth that we did have a way of saving Lehman,” Bernanke said today in response to questions during a Financial Crisis Inquiry Commission hearing in Washington. “I regret not being more straightforward there because clearly it has supported the mistaken impression that in fact we could have done something.” Bernanke made the remarks to explain the disparity between his September 2008 testimony that the Fed and U.S. Treasury “declined to commit public funds to support the institution” and later statements that the government had no option to save Lehman because of inadequate collateral. The Fed decided at the time against saying Lehman was unsalvageable because it may have risked further panic in financial markets, Bernanke said today. Bloomberg

White House Defends Obama’s ‘Mainstream’ Religion
White House spokesman Robert Gibbs says President Barack Obama is a "committed, mainstream Christian" _ contrary to the claims of Fox News Channel host Glenn Beck. Beck recently claimed that Obama practices a version of Christianity that is not recognized by most people. Beck says this "liberation theology" is all about "oppressors" and "victims." Gibbs was asked about Beck's assertions Thursday at the White House press briefing. Gibbs says, "I can only imagine where Mr. Beck conjured that from." Las Vegas Sun

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AMA Urges Treasury To Reject Proposed Tax Change For Trial Lawyers
As the Treasury Department considers a tax policy change that would allow trial lawyers to deduct their litigation expenses in contingency-fee cases, the American Medical Association and 90 medical organizations are urging Treasury Secretary Timothy Geithner to drop the proposal like a bad habit. "Changing the tax policy to allow trial attorneys to deduct court costs and other expenses would cost taxpayers $1.5 billion and increase the cost of health care in our nation," J. James Rohack, the immediate past president of the group, said in a written statement. "This change would encourage trial attorneys to file more lawsuits." Fox News
VOA VIEW:  Lawyers deduct most expenses already.

Back-To-School Checklist: Whiter Teeth & Tattoos
Shopping for back-to-school "basics" used to mean T-shirts, jeans, socks and some notebooks. This year, parents added a few other things with one item that really stands out: tattoos. About 45% of parents polled say that hair highlights, teeth whitening, even tattoos are among the items they will buy their kids to go back to school, according to a new American Express Spending & Saving Tracker survey. The survey tracks parents' school-related spending intentions. Haircuts led the list of services that mom and dad are treating junior to before the first day of school. But they are also willing to indulge their kids with a few extras. According to the report, 18% of parents intended to buy teeth whitening services. And 9% of parents were willing to pay for tattoos for their kids.  CNN

DIA Report Had Confirmed 18 Released Gitmo Detainees Returned To Terror
On Jan. 7, 2009, less than two weeks before Barack Obama was sworn in as president, a Defense Intelligence Agency (DIA) report indicated that up until that date there had been 18 confirmed and 43 suspected cases of detainees who had been released from the Guantanamo Bay prison and who had returned to terrorism. The DIA released the report to CNSNews.com in response to a Freedom of Information Act (FOIA) request. An earlier DIA report (dated July 10, 2006), also released to CNSNews.com, had specifically predicted that some Guantanamo detainees from Afghanistan and Pakistan, if released, would return to fight U.S. forces in that region. CNS News

Workers See Higher Health Costs, Less Care
Companies are cutting healthcare costs further amid a continuing sour economy, scaling back benefits and shifting a greater share of the expense to employees. The findings, published on Thursday, come as the congressional campaign heats up over the nation's stagnant economic growth and whether recently passed healthcare reforms should be repealed. Such steps may be keeping the cost of insurance plans down "but it also means employer coverage is less comprehensive," said Drew Altman, president and CEO of the Kaiser Family Foundation, which conducts the annual survey. Reuters

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Mills: Taliban Financially Squeezed
The Afghan insurgency is down to the "last card in the deck," the commander of NATO's regional command southwest said Thursday. Increased security and government initiatives to encourage farmers to turn away from poppy crops are drying up the Taliban's cash flow, U.S. Marine Corps Maj. Gen. Richard P. Mills said Thursday from his headquarters in Afghanistan during a video news conference in Washington. The disruption of the Taliban's drug and money networks has left them with "less than one-half of what they had last year in operating funds," Mills said. The Taliban's "last card in the deck is not playing very well, which is simply murder and intimidation," Mills said. "It has not convinced the people. … They are looking at a better way of life." UPI News

Barak: 'Galant Document' Is A 'Warning Sign'
Defense minister expresses concern that generals "have an illegitimate influence" on government decisions. Defense Minister Ehud Barak expressed his concern over the "Galant Document" incident at a meeting of the IDF General Staff Forum on Thursday."I commend the police for its quick investigation and conclusions. However, I am concerned about the attempt by officers to stop and postpone the process of appointing the next chief of general staff, and have an illegitimate influence on the outcome," Barak said, at the gathering in honor of the Jewish New Year." The attempt almost succeeded. This was a move that fascinated the whole state for a few weeks, and damaged the public's faith in the IDF," the defense minister added. Jerusalem Post

PA: Car Used In Kiryat Arba Attack Seized
A Palestinian Authority security source claimed on Thursday that the PA security forces have seized the car that was used in the shooting attack that killed four Israelis from Bet Hagai on Tuesday night. The source said that the car was found in Hebron and that the PA security forces were now investigating several suspects linked to the vehicle. The source would neither confirm nor deny a report according to which the car had been handed over to the IDF. The source also refused to comment on reports that the PA security forces have managed to arrest two men suspected of involvement in the terror attack.  Jerusalem Post

Russia Extends Its Grain Export Ban
Russia will consider lifting its grain export ban only after the next year's harvest has been reaped, Russian Prime Minister Vladimir Putin has said. Mr Putin did not say when exactly the ban, originally introduced from 15 August to 31 December, would be lifted. Global wheat prices have risen by 1.4% on Thursday, after gaining more than 3% during the previous session. Russia, one of the world's biggest producers of wheat, barley and rye, was hit hard by a drought this summer.  The heatwave destroyed crops in many parts of the country, pushing food prices up. Mr Putin said that the ban was extended to "provide stability and predictable conditions for all market participants". BBC

Europe Agrees New Agencies To Supervise Financial Firms
The European Union has reached agreement on reforms to financial supervision, officials have said. EU states and the European Commission agreed to create agencies that from next year are to oversee banks, insurers, and financial markets. The deal must still be approved by European finance ministers and the European Parliament. Europe's move follows the sweeping Wall Street reforms that President Barack Obama signed into law in July. It is hoped the agreements in Europe and the US will help stop a repeat of the financial crisis in which loose supervision of companies was blamed for contributing to problems. BBC

Burger King Sold For £2.6Bn
Burger King has been sold for the second time in its 55-year history. Burger King has been sold to 3G Capital, a private equity firm backed by three of Brazil's best-known businessmen, in a deal worth $4bn (£2.6bn). The $24-a-share agreement is 46% more than Burger King shares closed at on 31 August, the day before rumours of a deal surfaced and sent the shares soaring by 15%. Guardian

Thousands Left Penniless After Collapse Of Ponzi Scheme
Women sell produce at a market in Benin, where most people live on $2 (£1.30) a day. More than a quarter of the population has been directly affected by the Ponzi scam. The savings of more than 100,000 people in Benin have been lost in a pyramid scheme, prompting calls for the President of the tiny West African country to be impeached after he appeared to endorse the investment scam. Thousands of families put money into Investment Consultancy and Computering Services (ICC) as word spread of its ability to offer returns of between 50 per and 200 per cent to investors while it used its apparently bottomless funds to finance health clinics, feed orphans and make large donations to Christian groups. Independent

Now Meat Price Surge Raises Fear Of Food Inflation
Freakish weather conditions and soaring demand from China, Brazil and other fast-emerging economies have pushed meat prices around the world to a 20-year high. International food prices have risen to their highest in two years, shooting up five per cent between July and August. Wheat is up by more than 50 per cent since May. Meat prices are at their highest since 1990 on the United Nations Food and Agriculture Organisation's index, up 16 per cent on last year and almost a third higher than at the beginning of last year. Lamb is at a 37-year high, beef is the most expensive in two years and pork stands at record levels. Independent

Osteoporosis Drug 'Doubles Cancer Risk'
A drug taken by more than a million people with osteoporosis could double their risk of developing cancer of the oesophagus, according to a study published today.
Those who have taken oral bisphosphonates for five years or more are twice as likely to develop the cancer than those who have not, the analysis of medical records found. Every year almost 8,000 people in Britain are diagnosed with cancer of the oesophagus, or gullet cancer, and about 7,500 people die from it. Survival rates are low compared to other cancers, with only three in 10 surviving more than a year after diagnosis. Among the general population of people aged 60 to 79, the incidence of oesophageal cancer is about one in 1,000. But researchers found that among those who had taken oral bisphosphonates for five years or more the rate doubled to two in 1,000. Telegraph

Iran Casts A Giant Shadow Over The Washington Peace Talks
Israel will keep the chances of a deal alive, while the US tackles the nuclear threat, says Stephen Pollard. There are any number of myths surrounding the Middle East talks currently talking place in Washington. But the issue overshadowing the entire process seems to have been missed by most observers: Iran. The fact that proper talks have now begun is not a triumph of hope over experience; it is far more prosaic than that. It is the result of bargaining between the US, the Israelis and the Palestinian Authority (PA). There has been an implicit deal. America will take care of the Iranian nuclear threat, either through its own actions or by allowing Israel to act, and in return the Israelis will do whatever they can to keep the peace process on the road. Telegraph

World Cannot Afford Worsening Disasters, Warns UN Climate Change Chief
The world cannot afford escalating disasters of the kind recently witnessed in Pakistan and Russia, the top United Nations climate change official said today, underscoring the need for governments to take swift action to lead the world towards a low-carbon future. Flooding in Pakistan and wildfires in Russia were “so dramatic” that many other major weather disasters in other parts of the world “were relegated as secondary news,” Christina Figueres, Executive Secretary of the UN Framework Convention on Climate Change (UNFCCC), told reporters today in Geneva. UN News

Afghanistan: UN Moves Quickly To Immunize 1.5 Million Children From Polio
The United Nations is moving swiftly to vaccinate 1.5 million children after a polio case was detected in an area of north-eastern Afghanistan which had been free of the disease for more than a decade. The polio case was identified in the Imam Sahib district of Kunduz province. It had been assumed that the source of the virus was in neighbouring Tajikistan, which is currently in the midst of a large outbreak, but now it appears that it may have been the result of cross-border population movement from Pakistan. The UN World Health Organization (WHO), the UN Children’s Fund (UNICEF) and the Ministry of Public Health have launched a rapid response plan to prevent the spread of the disease. UN News

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