Obama orders 'full review' of 2016 election cyberattacks

WASHINGTON - President Barack Obama has ordered a review of all cyberattacks that took place during the 2016 election cycle, the White House said Friday as concerns over Russian interference mount.

White House Deputy Press Secretary Eric Schultz said Obama called for the review earlier this week, amid growing calls from Congress for more information on the extent of Russian interference in the campaign.

"We are committed to ensuring the integrity of our elections and this report will dig into this pattern of malicious cyberactivity timed to our elections, take stock of our defensive capabilities and capture lessons learned to make sure that we brief members of Congress and stakeholders as appropriate," said Schultz.

Obama wants the report completed before his term ends on January 20, Schultz said.

"We are going to make public as much as we can," he added. "This is a major priority for the president."

Trump denies Russian role 


The move comes after Democrats in Congress pressed the White House to reveal details, to Congress or to the public, of Russian hacking and disinformation in the election.

It also comes after President-elect Donald Trump rejected the intelligence community finding of official Russian involvement. 

Confidential emails from the Democratic National Committee and John Podesta, a top advisor to Democratic nominee Hillary Clinton, were steadily leaked out via WikiLeaks in the months before the election, damaging Clinton's White House effort.

On October 7, one month before the election, the Department of Homeland Security and the Director of National Intelligence announced that "the Russian Government directed the recent compromises of emails from US persons and institutions, including from US political organizations."

"These thefts and disclosures are intended to interfere with the US election process," they said.

But in an interview published Wednesday with Time magazine for its "Person of the Year" award, Trump dismissed those findings. Asked whether the intelligence was politicized, Trump answered: "I think so."

"I don't believe they interfered," he said. "It could be Russia. And it could be China. And it could be some guy in his home in New Jersey."

Worried that Trump will sweep the issue under a rug after his inauguration, seven Democrats on the Senate Intelligence Committee called on November 29 for the White House to declassify what it knows about Russian interference.

The seven have already been briefed on the classified details, suggesting they believed there is more information that the public should know.

Then on Tuesday of this week, leading House Democrats called on Obama to give members of the entire Congress a classified briefing on Russian interference, from hacking to the spreading of fake news stories to mislead US voters.

Republicans in Congress have also promised hearings into Russian activities once the new administration comes in.

But some have suggested the Democrats are raising the issue out of bitterness over their sweeping electoral defeat.

Schultz denied politics was behind Obama's order.

"I want to be clear here that this is not an effort to challenge the result of the election," he said.

Russian interference in Germany

Obama's homeland security advisor Lisa Monaco said the cyber interference goes back to the 2008 presidential race, with both the Obama and John McCain campaigns hit by malicious computer intrusions.

"We have seen in 2008 and in this last election system malicious cyber activity. We maybe [have] crossed into a new threshold and it is incumbent upon us to take stock of that," said Monaco.

Russian hacking and election interference have also become a big issue in Germany.

On Thursday Germany's domestic intelligence agency BfV issued a stark warning over a rising Moscow-directed campaign of hacking and misinformation directed at "destabilizing" the country and influencing political discourse.

Last week WikiLeaks published stolen documents on intelligence activities that embarrassed Chancellor Angela Merkel just as she began campaigning for the elections slated for late 2017.

"In the political realm, we detect an increasingly aggressive cyber espionage, warned BfV chief Hans-Georg Maassen.

"The indications of attempts to influence the German parliamentary elections next year are intensifying."

source: interaksyon.com

Social media explodes as Prince tributes mark death of music icon

The sudden death of music legend Prince sent shockwaves through social media on Thursday, as masses of Twitter users flooded the site to express their heartfelt emotions.

Actors, musicians and celebrities quickly jumped on social media, sending messages of sadness and tributes as news of the singer’s death hit media outlets.

“‘A strong spirit transcends rules,’ Prince once said—and nobody’s spirit was stronger, bolder, or more creative,” tweeted President Barack Obama (@BarackObama) on Thursday.

“Prince” became the top-trending term on Twitter worldwide shortly after his death was reported. As of Thursday afternoon, his name had been tweeted more than 4 million times.

“He Changed The World!! A True Visionary,” tweeted Madonna (@Madonna) “What a loss. I’m Devastated.”

Celebrities around the globe used social media to highlight the singer and his influential, genre-defying music combining jazz, funk, R&B and disco. Prince won seven Grammy awards and an Oscar.

Actor-singer Will Smith said in a Facebook post that he was “stunned and heartbroken,” and had just spoken to Prince the night before his death.

“Today, Jada & I mourn with all of you the loss of a beautiful poet, a true inspiration, and one of the most magnificent artists to ever grace this earth,” he said.

Veteran R&B artist Lionel Richie said on Twitter, “I can’t believe it, I’m in total shock. So many wonderful memories, I will miss him.”

Prince first found fame in the late 1970s, and over the next three decades became known as one of the most inventive and eccentric forces in American pop music.

“Numb. Stunned. This can’t be real,” added pop star Justin Timberlake (@jtimberlake).

“This is what it sounds like when doves cry.. Prince R.I.P.

Condolences to his family & 2 us all,” tweeted Whoopi Goldberg actress and television personality (@WhoopiGoldberg).

“Prince the doves really are crying now. Listening to your music. Remembering you. #RIPPrince,” tweeted Oprah Winfrey (@Oprah).

Rapper Lupe Fiasco, who is scheduled to perform in Minneapolis Thursday night, encouraged concert-goers to wear purple in honor of the artist’s iconic song “Purple Rain.”

“We gone put on for Prince tonight!” tweeted Fiasco (@LupeFiasco).

Prince, born Prince Rogers Nelson, was a beloved icon in his home state of Minnesota. Following the news of his death, the Minnesota Vikings National Football League team tweeted “We’ve lost a legend way too soon.”

Prince recorded a song about the Minnesota Vikings, “Purple and Gold,” in 2010.

Minnesota politicians also leapt on social media to mourn the state’s beloved native.

Former Minnesota Governor and professional wrestler Jesse Ventura (@GovJVentura) tweeted, “What a day. Prince’s legendary music will live on, but today is a huge loss for Minnesota. He was one of a kind.”

Minnesota Congressman Erik Paulsen (@RepErikPaulsen) tweeted about the impact the artist had on his home state.

“Prince was the first concert I ever went to,” Paulsen tweeted from his verified Twitter account. “As talented as they come and a Minnesota treasure. He’ll be missed.”

source: interaksyon.com

Obama declares emergency over foul water in Michigan

WASHINGTON DC - US President Barack Obama declared a state of emergency in Michigan on Saturday, freeing up federal aid to help an area affected by contaminated water, the White House said.

Authorities in the state have been dealing with a major health crisis over lead-contaminated water that arose from cost-cutting measures implemented in the city of Flint, home to some 100,000 people.

Problems arose after state officials ignored months of health warnings about the foul-smelling water as residents complained that it was making them sick.

On Thursday, Michigan Governor Rick Snyder submitted a request to the president to call a state of emergency.

However it was just four years ago that the governor named a state-appointed manager to take control of Flint's troubled finances.

As part of cost-cutting, the city began drawing water from the Flint River in April 2014 rather than continuing to buy it from Detroit. That's when problems began.

Obama declared that "an emergency exists in the state of Michigan and ordered federal aid to supplement state and local response efforts," a White House statement read.

The move was "due to the emergency conditions in the area affected by contaminated water," it added.

Efforts to be implemented by the Department of Homeland Security and the Federal Emergency Management Agency (FEMA) include providing water, water filters, water filter cartridges, and water test kits, among other supplies, for up to three months.

The state's environment department had allowed water to be taken from the Flint River, even though the city's treatment plant was not able to produce water that met state and federal standards, according to a lawsuit filed by the American Civil Liberties Union and the Natural Resources Defense Council.

Residents soon began complaining that the foul, cloudy water was making them vomit, break out in rashes, and lose their hair.

DHS and FEMA will coordinate efforts to ameliorate "the hardship and suffering caused by the emergency on the local population," the White House said.

The move is meant "to save lives and to protect property and public health and safety, and to lessen or avert the threat of a catastrophe," it added.

source: interaksyon.com

Oregon gunman in massacre had cache of 13 weapons, US agent says

ROSEBURG, OREGON - The Oregon gunman who carried out an execution-style massacre at a college classroom had a cache of 13 weapons, body armor and ammunition, authorities said on Friday as they sought a motive for the bloodiest US mass shooting this year.

Celinez Nunez, assistant special agent of the US Bureau of Alcohol, Tobacco, Firearms and Explosives, disclosed the cache as details emerged about the suspect in Thursday's rampage at Umpqua Community College in Roseburg, about 180 miles (290 km) south of Portland.

Six of the guns, plus body armor and five magazines of ammunition were recovered from the campus where the gunman stormed into a classroom, killing nine people before he was shot dead by police, Nunez told a news conference.

Douglas County Sheriff John Hanlin declined to name the gunman, saying, “Again, you will not hear anyone from this law enforcement operation use his name. I continue to believe that those media and community members who publicize his name will only glorify his horrific actions. And eventually, this will only serve to inspire a future shooter."

Law enforcement sources confirmed reports identifying the suspect as Chris Harper-Mercer, 26.

The gunman shot a professor and then ordered cowering students to stand up and state their religion before he shot them one by one, according to survivors' accounts.

Another seven guns and a significant stockpile of ammunition were found at the apartment he shared with his mother in nearby Winchester, about 170 miles (273 km) south of Portland, Nunez said.

Although authorities have disclosed scant information about the gunman, they appeared to be learning more about him and why he might have opened fire.

The shooter left behind a "multipage, hate-filled" statement in the classroom, according to a tweet from an NBC reporter, citing multiple law enforcement sources who were not identified. Citing unspecified sources, CNN said the statement showed animosity toward blacks.

Hanlin declined to comment when asked about the writings at a news conference.

Harper-Mercer, who identified himself on a blog post as "mixed race," enlisted in the US Army and served for about a month in 2008 before being discharged for failing to meet administrative standards, military records showed.

A man identifying himself as the gunman's father Ian Mercer told reporters outside his home in Los Angeles on Thursday night, "It's been a devastating day, devastating for me and my family."

At some point of his life, Harper-Mercer appears to have been sympathetic to the Irish Republican Army, a militant group that waged a violent campaign to drive the British from Northern Ireland. On an undated Myspace page, he posted photos of masked IRA gunmen carrying assault rifles.

Harper-Mercer was born in the United Kingdom and arrived in the United States as a young boy, his stepsister Carmen Nesnick told CBS Los Angeles.

After the shooting, Mercy Medical Center in Roseburg received 10 patients, including one who died in the emergency room, hospital officials told reporters on Friday. Three were transported to other facilities because they needed a higher level of care, four required surgery, and two were treated and released. All were treated for gunshot wounds.

Gun control debate
The violence, the latest in a series of high-profile mass killings across the country, has fueled demands for stricter gun control in the United States.

Not counting Thursday's incident, 293 US mass shootings have been reported this year, according to the Mass Shooting Tracker website, a crowd-sourced database kept by anti-gun activists that logs events in which four or more people are shot.

Hours after Thursday's shooting, a visibly frustrated President Barack Obama urged Americans to press their elected leaders to enact tougher firearms safety laws.

"Somehow this has become routine. The reporting is routine. My response here, at this podium, ends up being routine," he said. "We’ve become numb to this."

Gun control advocates say easy access to firearms is a major factor in the shooting epidemic, while the National Rifle Association and other pro-gun advocates say the Second Amendment of the US Constitution guarantees Americans the right to bear arms.

Oregon Governor Kate Brown declined in television interviews on Friday morning to discuss gun control, as did the sheriff, and both said it was a time for healing the community.

A month after the December 2012 mass shooting at Sandy Hook Elementary School in Connecticut, Hanlin wrote a sharply worded letter to Vice President Joe Biden saying he would never enforce a federal law that violates the Constitution.

"Gun control is NOT the answer to preventing heinous crimes like school shootings," Hanlin wrote in the letter, dated Jan. 15, 2013. (Additional reporting by Doina Chiacu in Washington; Suzannah Gonzales in Chicago; Jane Ross in Roseburg; Shelby Sebens in Portland, and Katie Reilly and Angela Moon in New York)

source: interaksyon.com

Oregon gunman kills 10 before being slain in latest US school shooting

LOS ANGELES -- A 20-year-old gunman went on a shooting rampage at a community college in the US state of Oregon on Thursday, killing 10 people and wounding seven before he died in a shootout with police.

A visibly angry President Barack Obama made an impassioned plea for gun control in the wake of the shooting, blasting Congress for its failure to act in the face of "routine" mass killings.

The gunman opened fire in a classroom at Umpqua Community College in rural Roseburg, and moved to other rooms methodically gunning down his victims, witnesses said.

Douglas County Sheriff John Hanlin said 10 people were killed and seven were injured, several critically. He said the identity of the victims would not be released for 24 to 48 hours.

But US officials have identified the gunman behind the deadly shooting at a community college in Oregon as Chris Harper Mercer, 26, media reported Thursday.

Several media outlets including CNN, CBS and NBC, released Mercer's name.

Media reports said investigators had interviewed Mercer's family and friends and were closely looking at his social media postings for clues.

Reports also said he was not a student at Umpqua Community College, located in rural Roseburg.

Student Cassandra Welding was in an adjacent room when the shooting broke out.

"I probably heard a good 35 to 40 shots," Welding told US media.

She saw a fellow student be shot after opening the classroom door to see what was happening, she said.

"Then we locked the doors, turned off the lights and ... we were all pretty much in panic mode and called 911 (emergency services) and our parents and (said) 'I love yous' because we didn't know what would happen, if those were our last words."

Voicing his anger and sadness at the latest loss of life, Obama threw down the gauntlet to lawmakers -- and the people who vote for them -- on the thorny issue of gun control.

"Somehow this has become routine," said the president. "We become numb to this."

"We can actually do something about it, but we're going to have to change our laws," said a stony-faced Obama. "This is not something I can do myself. I have to have a Congress and state legislatures and governors who are willing to work with me on this."

"It cannot be this easy for somebody who wants to inflict harm on other people to get his or her hands on a gun," Obama said.

"Prayers are not enough," he added. "This is a political choice we make."

'Waiting for last bus' 

Police were alerted to the shooting shortly after 10:30 am and rushed to the site as it was still unfolding.

"Upon arriving there, they located the shooter in one of the buildings," Hanlin said, adding that police exchanged fire with the gunman who was later confirmed dead.

It was not yet known if the shooter, identified only as a male aged 20, was a student at the college.

Authorities said investigators were examining social media postings thought to belong to him. Several reports said he may have shared his intentions online beforehand.

Other reports said police recovered a cell phone at the scene, presumably the shooter's, that contained messages linked to the massacre.

Authorities said four weapons were recovered from the scene, according to local news reports.

Police searched the entire campus after the shooting aided by sniffer dogs and patted down students and staff as they left and boarded buses that transported them to local fairgrounds.

College interim president Rita Cavin said the priority was to reunite students and staff with their loved ones.

"We have families waiting for the last bus of students to arrive and have grief counselors for those who have no children coming off the bus," she said.

"It's sad to watch the families wait for the last bus."

We all froze 

Roseburg is described as a close-knit, logging community with many locals attending the college, which caters to some 3,300 students.

"Most of us have relatives taking classes here," said Douglas County fire Marshall Ray Shoufler. "Pretty much everybody knows everybody type scenario.

"So something like this affects many, many, many people."

Brady Winder, a student at Umpqua, said he was in class when suddenly he heard a loud pop coming from an adjoining classroom.

He said his teacher called out through the door to see if everything was OK and then further shots rang out.

"We all kind of froze and bolted out the door," Winder said. "I didn't really have any time to think. It was fight or flight."

School shootings are a disturbing reality of American life and many facilities have reinforced security in recent years, especially in the wake of the Sandy Hook massacre in 2012.

Twenty students and six adults were killed at the Sandy Hook Elementary School in Connecticut by 20-year-old Adam Lanza.

On Wednesday, a student who got into an argument with the principal at a high school in South Dakota pulled a gun and shot the school official in the arm before he was tackled and subdued by staff.

source: interaksyon.com

Pope wows Washington but takes on controversial church sex abuse, immigration, climate change

WASHINGTON DC - Pope Francis received a rapturous welcome to Washington on Wednesday but did not shy away from controversy, addressing church sex abuse and urging action on immigration and climate change.

President Barack Obama was clearly delighted to welcome to the White House a pontiff who can lend moral and spiritual force to his own priorities, but others may be left uncomfortable by the pope's stances.

Meeting Catholic bishops in Washington, he praised their handling of the child sex abuse scandal that rocked the US church.

"I realize how much the pain of recent years has weighed upon you," he said.

"And I have supported your generous commitment to bring healing to victims…and to work to ensure such crimes will never be repeated."

The Argentine pontiff waded into another bitter US political debate when he urged the church to embrace new immigrants, speaking "not only as the Bishop of Rome, but also as a pastor from the South."

"Perhaps it will not be easy for you to look into their soul. Perhaps you will be challenged by their diversity. But know that they also possess resources meant to be shared," he said.

He later moved on to conduct his first mass in North America, a ceremony to canonize a Franciscan friar who brought Christianity to California, Junipero Serra -- a figure also shrouded in controversy.

Native Americans hold Serra responsible for the suppression of their centuries-old culture and the death of many thousands of their ancestors.

Consternation over his elevation to sainthood did not overshadow the visit, however, and Francis was cheered by euphoric crowds with breathless wall-to-wall televised coverage as he toured Washington's stately boulevards.

'Welcoming the stranger'

Obama, America's first black president, gave the first Latin American pope an effusive welcome to the White House, praising his moral leadership.

"I believe the excitement around your visit must be attributed not only to your role as pope, but to your unique qualities as a person," Obama said, praising Francis' humility, simplicity, and generosity of spirit.

Though Francis has inveighed against the materialism that the United States seems to embody like no other country, he is also a potential political ally for Obama, sharing many of his progressive goals and bringing along many of America's 70 million Catholics.

Speaking in fluent, if accented, English, the 78-year-old returned the warm blessings of his host.

"As the son of an immigrant family, I am happy to be a guest in this country, which was largely built by such families," he said.

Francis said he would address Congress "to offer words of encouragement to those called to guide the nation's political future in fidelity to its founding principles."

Obama lauded Francis for reminding the world that "the Lord's most powerful message is mercy."

"That means welcoming the stranger with empathy and a truly open heart, from the refugee who flees war-torn lands to the immigrant who leaves home in search of a better life," Obama said.

Their message may also resonate strongly in a Europe convulsed by a refugee crisis.

And, as many US conservatives question the very existence of man-made climate change, Francis and Obama made a de facto joint appeal for action.

"Holy Father, you remind us that we have a sacred obligation to protect our planet, God's magnificent gift to us," Obama said.

Francis took up the call.

"Accepting the urgency, it seems clear to me also that climate change is a problem which can no longer be left to a future generation," Francis said.

Pomp and circumstance

The pope was afforded a full ceremonial welcome and a 40-minute one-on-one meeting with Obama in the Oval Office.

But the White House held off a planned 21-gun salute that would not have chimed with the pope's stature as a man of peace.

That was the only expense spared during a historic first visit to Washington -- a political city that shrugs when presidents, queens, and sheikhs roll through.

The visit was a political mirror of Pope Benedict's 2008 visit to George W. Bush's White House. Those two leaders were as conservative as their successors are progressive.

Still, the White House insisted it is not co-opting a holy man in order to batter Republican foes in Congress.

"The goal of the pope's visit, and certainly the goal of the meeting was not to advance anyone's political agenda," said White House spokesman Josh Earnest.

The Vatican played a crucial role in brokering talks between Cold War foes Havana and Washington that led to the recent restoration of diplomatic ties.

But the pope told reporters that he would not specifically bring up Washington's embargo of Cuba in his speech Thursday before American lawmakers, who largely favor a tough line with Havana.

Republicans are already crying foul.

Congressman Paul Gosar, who is Catholic, declared he would boycott the pontiff's address to protest his "leftist" views.

'The people's pope'

Nevertheless, there is no mistaking the political value of enlisting a popular pope's moral authority.

Seven out of ten Americans have a favorable impression of Francis, according to a Washington Post-ABC poll.

The pontiff will make two speeches during his visit, the address to Congress and another to the United Nations on Friday.

He will wrap up his historic six-day US trip on Saturday and Sunday in Philadelphia at an international festival of Catholic families.

source: interaksyon.com

Landmark rulings see US Supreme Court move to the left

WASHINGTON DC - With four justices appointed by Democratic presidents and five by Republican leaders, the US Supreme Court is generally perceived as being weighted in favor of conservatives.

But after two historic rulings in a week supporting progressive causes -- legalizing gay marriage across America and upholding President Barack Obama's health care overhaul -- the conservatives are lashing out.

They are slamming what they see as a blatant disregard of the law in favor of a win in the court of public opinion.

Ultra-conservative justice Antonin Scalia called the 5-4 ruling in favor of legalizing gay marriage nationwide a "judicial putsch" that was "lacking even a thin veneer of law."

"Just who do we think we are?" asked Chief Justice John Roberts, who also opposed the gay marriage ruling.

He said the ruling had "nothing to do with" the Constitution and blasted the decision as "an act of will, not legal judgment."

Scalia also lambasted his colleagues for voting 6-3 to uphold "Obamacare," which has extended health insurance to millions of Americans.

Conservatives say Obamacare represents unconstitutional government intrusion into the lives of private citizens.

"Today's opinion changes the usual rules of statutory interpretation for the sake of the Affordable Care Act," Scalia wrote.

"We should start calling this law SCOTUScare," he added, using the acronym for the Supreme Court.

 'Judicial activism'

Aside from the health care and gay marriage rulings, the court also voted in the past week to uphold a key tool used to fight housing discrimination -- another big win for the Obama administration.

In the past, other landmark Supreme Court rulings have ushered in the legalization of abortion, the end of racial segregation in schools, and the authorization of mixed-race marriages.

But this week's decisions left some accusing the court of siding with public opinion -- and not the Constitution.

Ryan Anderson, a research fellow at the conservative Heritage Foundation, called the gay marriage ruling "perhaps as clear of an example of judicial activism as any we have seen in recent years –- or are likely (hopefully) to see in the future."

"The majority of the Court simply replaced the people’s opinion about what marriage is with its own," he said.

In each of this week's three main big rulings, Justice Anthony Kennedy, who was appointed in the 1980s under the conservative Ronald Reagan but is considered moderate, sided with his progressive counterparts.

Roberts, the chief justice, also added his vote to the health care ruling, perhaps to protect the court from accusations it voted along political lines.

Constitution 'pliable, long-lasting guide'

"This is not about a 'conservative' or 'liberal' court," said Lisa Linsky, a partner at the McDermott Will & Emery law firm.

"This is about the highest court in the land being cognizant of the world around it and the fundamental principles and protections that are embedded in our constitution," Linsky said.

"The founding fathers of this country created the constitution to be a pliable, long-lasting guide for living life in a civilized society," she added.

These cases "impacted real people in profound and far-reaching ways," she told AFP, noting that "any other result would have caused chaos."

If the Obamacare ruling had gone the other way, millions of people could have been left without health insurance.

"Their attention in that case to the economic realities of the health insurance market was part of their statutory interpretation, not some free-floating analysis of what would be good policy," said David Cruz, an expert from the University of Southern California Gould School of Law.

In the gay marriage ruling, Kennedy wrote that same-sex couples should not be denied the "constellation of benefits" afforded married partners, such as tax and inheritance rights.

Mary Margaret Penrose, a law professor at Texas A&M University, noted that "the receipt of these benefits traditionally are matters of policy and legislation, not constitutional mandate."

Steve Sanders, who teaches constitutional litigation at the Indiana University Maurer School of Law, said the court should be expected to show some flexibility.

"The point is not that we should make law by opinion poll," he said.

"The point is that, under our Constitution, we expect courts to step in and act when a minority group is being denied a fundamental right based on the transient passions and discredited motives of a political majority."

Statistics show that during the current Supreme Court session, which is set to end Monday, the justices have taken more left-leaning decisions.

According to a New York Times analysis, about 56 percent of rulings by the court were considered progressive.

source: interaksyon.com

Obama heralds first US Memorial Day without ground war in 14 years

ARLINGTON, Virginia - President Barack Obama heralded the first US Memorial Day in 14 years without a major ground war in an annual ceremony of remembrance on Monday for fallen American forces.

In remarks at Arlington National Cemetery near Washington, Obama paid tribute to US military personnel who served in conflicts such as World War II as well as the more recent wars in Iraq and Afghanistan, which he wound down as commander in chief.

"For many of us, this Memorial Day is especially meaningful. It is the first since our war in Afghanistan came to an end," Obama said. "Today is the first Memorial Day in 14 years that the United States is not engaged in a major ground war."

As a Democratic presidential candidate in 2008, Obama sharply criticized the war in Iraq launched by his Republican predecessor, former President George W. Bush.

US forces are now involved in air campaigns against Islamic State militants in Iraq and Syria as well as training missions in Iraq and Afghanistan. The president has been reluctant to relaunch ground operations in Iraq.

"Today, fewer than 10,000 troops remain on a mission to train and assist Afghan forces. We’ll continue to bring them home and reduce our forces further, down to an embassy presence by the end of next year," Obama said.

"But Afghanistan remains a very dangerous place. And as so many families know, our troops continue to risk their lives for us."

(Reporting by Jeff Mason; Editing by Peter Cooney)

source: interaksyon.com

US Defense Secretary Hagel resigns

WASHINGTON DC - United States President Barack Obama on Monday announced the resignation of Chuck Hagel as the country's defense secretary, making the first change to his cabinet after the Democrats' heavy losses in both chambers of Congress in the midterm elections early this month.

During a statement delivered at the White House, Obama said Hagel concluded that now was an "appropriate time for him to complete his service."

The president also praised Hagel as an "exemplary defense secretary," commending Hagel for his "steady hand" through a period of transition for the US military.

Hagel, a 68-year-old Republican who took office in February 2013, said in a statement following Obama's announcement that he would stay on the job until his successor is nominated and confirmed by the Senate.

Analysts reckon that Obama's decision on Hagel's removal appears to be an effort by the White House to show that it is sensitive to critics who have pointed to stumbles in the government's response to several national security issues, including the Ebola crisis and the threat posed by the Islamic State.

source: interaksyon.com

Ferguson police come under gunfire, arrest 31 in racial unrest

FERGUSON - U.S. police said early on Tuesday they came under heavy gunfire and arrested 31 people during another night of racially charged protests in Ferguson, Missouri, sparked by the fatal shooting of an unarmed black teenager by a white policeman 10 days ago.

Demonstrations, mostly peaceful but with spasms of violence by smaller groups, have flared since Michael Brown, 18, was shot dead while walking down a residential street on August 9.

State Highway Patrol Captain Ron Johnson, briefing reporters on Monday's night's violence, said "our officers came under heavy gunfire" in one area.

"Not a single bullet was fired by officers despite coming under heavy attack," he told a news conference. Riot police had confiscated two guns from protesters and what looked like a petrol bomb. Four officers had been injured.

Johnson separately told CNN that two people were shot within the crowd, but not by police, and were taken to hospital. There was no immediate word on their condition.

The violence has captured headlines around the world, raising questions about the state of U.S. race relations nearly six years after Americans elected their first black president.

"This has to stop. I don't want anybody to get hurt. We have to find a way to stop this," said Johnson, an African-American who grew up in the area and who took over security efforts after the mostly white local force was accused of using excessive force against blacks.

An overnight curfew has been imposed and the National Guard, the U.S. state militia, has been deployed in the St. Louis suburb of 21,000 people to stop looting and burning that have punctuated the protests.

President Barack Obama and civil rights leaders have appealed for calm while a federal investigation into the shooting proceeds.

"While I understand the passions and the anger that arise over the death of Michael Brown, giving in to that anger by looting or carrying guns, and even attacking the police, only serves to raise tensions and stir chaos," Obama told a news conference on Monday (Tuesday in the Philippines).

source: interaksyon.com

Cellphone unlocking bill clears US House, heads to Obama

WASHINGTON — The U.S. House of Representatives approved legislation on Friday to give mobile-phone users the right to ‘unlock’ their devices and use them on competitors’ wireless networks, something that is now technically illegal.

The legislation cleared the Senate last week. President Barack Obama said in a statement that he looked forward to signing the bill into law.

“The bill congress passed today is another step toward giving ordinary Americans more flexibility and choice, so that they can find a cell phone carrier that meets their needs and their budget,” Obama said.

The lawmaking follows a 2012 ruling by the Library of Congress, the minder of U.S. copyright law, that effectively made phone unlocking illegal, even after the consumer completed the contract with its wireless carrier.

U.S. wireless carriers often tether, or “lock,” smartphones to their networks to encourage consumers to renew mobile contracts. Consumers, for their part, can often buy new devices at a heavily subsidized price in return for committing to long-term contracts with a single carrier.

In December, major wireless carriers – including Verizon Wireless, AT&T Inc, Sprint Corp and T-Mobile US Inc – struck a voluntary agreement with the Federal Communications Commission to make it easier for consumers to unlock their phones after contracts expire.

Under current law, someone who unlocks their phone without permission could face legal ramifications, including jail.

New legislation, welcomed by consumer advocates, reinstates the exemption given to mobile phones in the copyright law before the controversial 2012 ruling by the Library of Congress and calls on the officials there to reconsider the issue during its next round of reviews in 2015, potentially expanding the exemption to tablets and other devices.

“Today’s action by the House moves us closer to alleviating any confusion stemming from the Copyright Office’s 2012 decision,” Jot Carpenter, vice president of government affairs at the wireless association CTIA, said in a statement.

source: interaksyon.com

White House unveils plan to end NSA's bulk collection of phone data

WASHINGTON - The Obama administration on Thursday announced details of its plan to end the government's vast bulk collection of data about phone calls made in the United States, including new procedures to get judicial approval before asking companies for such records.

Under the plan, phone companies would have to provide data from their records quickly and in a usable format when requested by the government, a senior administration official told reporters on condition of anonymity.

It would also allow the government to seek the data without a court order in a national security emergency.

"I am confident that this approach can provide our intelligence and law enforcement professionals the information they need to keep us safe while addressing the legitimate privacy concerns that have been raised," President Barack Obama said in a statement about the plan, which needs approval by Congress.

The US government began collecting so-called metadata shortly after the September 11, 2001, attacks on the United States, under part of the Patriot Act known as Section 215.

The program's defenders say it helps the government find connections between people plotting attacks overseas and co-conspirators inside the United States, while critics view it as an infringement of privacy rights.

Obama has been under pressure to rein in surveillance since former National Security Agency contractor Edward Snowden last year disclosed classified details about the breadth of the government's intelligence gathering, sparking an international uproar.

Next step: Congress

Obama announced his initial response to the debate in January, including a ban on eavesdropping on the leaders of allied nations.

On Thursday, the administration provided additional details about its plans for telephone records known as metadata. Such records document which telephone number called which other number, when the calls were made and how long they lasted. Metadata does not include the content of the calls.

Under the proposal, once the Foreign Intelligence Surveillance Court approves gathering records associated with a phone number, phone companies could be required to turn over data associated with that number on an "ongoing and prospective" basis, a senior administration official said on a conference call.

Companies would be compelled to provide technical assistance to the government to query the records, and may be compensated in a way that is consistent with current procedures, the official said.

The administration will ask the court to allow it to operate its existing program for at least another 90 days, as Congress weighs legislation.

"We would hope that the Congress would take something up very expeditiously," the official said.

At least two proposals for ending bulk collection of phone data have already been unveiled by lawmakers.

In October, Patrick Leahy, the Democratic chairman of the Senate Judiciary Committee, and Jim Sensenbrenner, a House Republican, introduced a bill that would require the government to show a request for data was relevant to an ongoing investigation.

Their bill, called the USA Freedom Act, has been endorsed by privacy advocates including the American Civil Liberties Union.

Earlier this week, Republican Mike Rogers and Democrat Dutch Ruppersberger, the top lawmakers on the House of Representatives' intelligence panel, released a plan that would not require the government to first get court approval of a request for data.

Instead, the court could order the data expunged if it was later found not to be linked to suspicious activity.

House Speaker John Boehner, a Republican, has said he supports the bill.

But Obama has been clear that "one of the main attributes" he wanted to see in the overhaul was requiring court approval before data requests are made, the senior administration official said, noting the government has been following that practice since January. (Additional reporting by Mark Felsenthal)

source: interaksyon.com

New York Times urges clemency for Snowden

WASHINGTON -- The influential New York Times hailed fugitive intelligence leaker Edward Snowden as a "whistleblower" on Thursday and threw its weight behind calls for him to be shown clemency.

The editorial was quickly seized upon by activists campaigning to persuade President Barack Obama's administration to drop its bid to prosecute the former National Security Agency contractor.

And it touched a nerve with Times readers.

More than 1,200 left comments on the daily's website within hours of the item going online, and it soared to the top of its "most viewed" items of the day.

The Times, one of several newspapers around the world to report on US surveillance tactics based on secret files leaked by Snowden, has previously voiced support for the 30-year-old.

But editorial page editor Andrew Rosenthal said the explicit call for the administration to cut a deal with Snowden had come about just as US public and expert opinion begins to swing behind him.

"It felt like there was a real critical mass," Rosenthal told the Times' public editor Margaret Sullivan, one of many journalists who wrote follow-up columns on the mounting furor.

The Times' case, mirrored in a similar op-ed in campaigning British daily The Guardian, was that Snowden had done the United States a service by exposing the vast scope of secret digital surveillance.

Reports based on Snowden's leaked files have revealed a global dragnet run by Washington and its allies in the English-speaking world, scooping up Internet traffic and telephone call logs.

This outraged many, including some US telecoms users and foreign governments targeted in the indiscriminate sweeps, and it has touched off a political and legal debate in the United States.

While Snowden remains in Moscow, protected by temporary political asylum, US courts have begun examining the legality of the snooping and the White House has carried out an internal review.

One federal judge has already dubbed NSA snooping "almost Orwellian" and probably illegal, and Obama has promised that his review will lead to some new limits on spy agency activity.

Legally speaking, however, Snowden still faces arrest and prosecution, and could see decades in jail for treason or espionage.

The Times opposes this, arguing that he launched a national debate.

"He may have committed a crime to do so, but he has done his country a great service," the paper wrote.

The Times urged the administration to allow Snowden to return home and "face at least substantially reduced punishment."

The National Security Council declined to comment, referring AFP to previous White House statements.

Obama has said he welcomes debate about the NSA's role, but has refused to discuss the possibility of amnesty or a presidential pardon for Snowden.

In mid-December, the White House renewed its demand for the fugitive leaker to return to face trial.

US federal prosecutors have filed a criminal complaint against Snowden, charging him with espionage and theft of government property. Some lawmakers have dubbed him a traitor.

Major rights watchdogs supported the Times' call.

Human Rights Watch's executive director Kenneth Roth tweeted: "Snowden exposed major misconduct. Others filing official complaints were ignored/persecuted. He should be pardoned."

The American Civil Liberties Union said it "couldn't agree more" with the editorial.

The editorial also echoed remarks made by Rick Ledgett, an NSA official who led a task force investigating damage from the leaks.

Last month, Ledgett became the first serving national security official to suggest publicly that Snowden could cut a deal to avoid prosecution if he stops exposing US secrets.

It is not clear how many more documents taken by Snowden have still to be revealed. Journalist Glenn Greenwald, who has worked closely with him, says there are thousands more pages to come.

Some have said a plea deal for Snowden like the one suggested by the Times could allow US investigators to at least discover the size of the breach and identify compromised programs.

source: interaksyon.com

Violent tornadoes kill 5 in US Midwest, dozens injured

CHICAGO - At least five people were killed and dozens more hurt as severe storms and violent tornadoes battered the US Midwest Sunday, and officials warned the toll would rise.

Flights were grounded and tens of thousands of homes lost power as intense winds overturned cars, uprooted large trees, and snapped power lines. Large swaths of the city of Washington, Illinois, were flattened.

President Barack Obama was briefed about the storms and will receive regular updates, the White House said.

Illinois Emergency Management Agency chief Jonathon Monken told CNN at leave five people had been killed -- including two in the far southern tip of the state and one in Washington -- as he warned that the number of injuries would likely increase "significantly."

At least two of the victims were killed in the small town of New Minden, Washington County Coroner Mark Styninger told AFP.

Joseph Hoy, 80, was found dead on his farm while his 78-year-old sister Frances was pronounced dead in hospital.

"It just happened so fast," said Styninger, who lives just two miles (around three kilometers) from the Hoy farm.

Local television reported at least 37 people were being treated by a medical center in Illinois, seven of them with "severe" injuries.

'Please pray' says storm-hit town's mayor

Monken said at least 70 homes were completely destroyed in two different areas, and hundreds were damaged less severely. Four Red Cross shelters have been opened in the affected zone.

The dangerous weather caused the National Football League to suspend a game in Chicago, asking fans and players to take cover in the stadium. The game resumed almost two hours later.

In Indiana, local media reported damage to commercial buildings, including a destroyed bank branch.

More than 64,600 homes lost power, according to Duke Energy. In the metropolitan area of the state capital Indianapolis, Indianapolis Power & Light reported nearly 16,000 without power.

"Absolute destruction," WMBD31 news reporter Alexandra Sutter wrote on Twitter in describing the scene.

Sutter later tweeted, after speaking with the mayor of the storm-hit town of Washington: "I asked what we can report to help. He said only 'please pray.'"

The CBS television affiliate for Central Illinois where she works said that its studio, which also hosts the local Fox affiliate, lost signal after a power hit to its transmitter.

A photo posted on the station's Facebook page showed someone holding a tennis ball-sized piece of hail.

"Pay attention to all weather alerts and stay home and inside if possible," Illinois Governor Pat Quinn warned residents, adding that the severe weather was "very serious."

In Washington, Michelle Cumrine came back from a trip to find that her house was completely gone.

"Our house was just beyond the deck," Cumrine said in disbelief as she stared at the rubble.

"A lot of people have a pile of rubble still. I don't have anything. It's gone. I don't know where it went."

The National Weather Service warned of a "potentially very dangerous situation," with tornadoes, damaging winds and large hail forecast over parts of the Ohio and middle Mississippi Valley region as well as the southern Great Lakes region into the night.

Flights at Chicago's international airport were delayed by an average of 2.5 hours and grounded at the Detroit Metropolitan Wayne County Airport.

source: interaksyon.com

Obama signs bill ending US govt shutdown

President Barack Obama early on Thursday signed legislation that ends a US government shutdown and raises the debt ceiling, the White House said.

Congress late Wednesday approved an 11th-hour deal to end a partial government shutdown and pull the world's biggest economy back from the brink of a historic debt default that could have threatened financial calamity.

Capping weeks of political brinkmanship that had unnerved global markets, the Senate and House of Representatives each passed the spending measure after Republicans dropped efforts to link the legislation to changes in President Barack Obama's signature healthcare law.

The deal, however, offers only a temporary fix and does not resolve the fundamental issues of spending and deficits that divide Republicans and Democrats. It funds the government until January 15 and raises the debt ceiling until February 7, so Americans face the possibility of another government shutdown early next year.

With the deadlock broken just a day before the US Treasury said it would exhaust its ability to borrow new funds, US stocks surged on Wednesday, nearing an all-time high. Share markets in Asia also cheered in early Thursday trade.

Taking the podium in the White House briefing room after the Senate vote and just before the House took up the measure Obama said that with final congressional passage, "We can begin to lift this cloud of uncertainty and unease from our businesses and from the American people."

"Hopefully next time it won't be in the 11th hour," Obama said. "We've got to get out of the habit of governing by crisis."

The standoff between Republicans and the White House over funding the government forced the temporary lay-off of hundreds of thousands of federal workers from October 1 and created concern that crisis-driven politics was the "new normal" in Washington.

Senator John McCain, whose fellow Republicans triggered the crisis with demands that the Democratic president's "Obamacare" healthcare reform law be defunded, said earlier on Wednesday the deal marked the "end of an agonizing odyssey" for Americans.

"It is one of the most shameful chapters I have seen in the years I've spent in the Senate," said McCain, who had warned Republicans not to link their demands for Obamacare changes to the debt limit or government spending bill. Polls showed Republicans took a hit in public opinion over the standoff.

The Democratic-led Senate overwhelmingly passed the measure on a 81-18 vote, and the Republican-controlled House followed suit 285 to 144, clearing the way for Obama to sign it into law no later than Thursday, when the Treasury says it will hit the $16.7 trillion debt ceiling.

Fully reopening the government was expected to take several days. While essential functions like defense and air traffic control have continued, national parks and agencies like the Environmental Protection Agency have been largely closed.

source: interaksyon.com

Wall Street Week Ahead: Debt-ceiling battle may overshadow earnings

NEW YORK - U.S. stock investors, hoping to leave politics aside to focus on fundamentals, aren't going to get their wish yet as lawmakers battle over raising the debt ceiling.



Proof that political uncertainty was holding down markets was seen on Thursday and Friday as the S&P 500 generated two days of strong gains in advance of the weekend.







Legislators will be busy negotiating raising the $16.7 trillion federal borrowing limit and reopening the federal government. If the borrowing cap is not increased by October 17, it could lead to a U.S. debt default.



The government has been partially shuttered since October 1. The shutdown has lasted longer than many expected, and while proposals from both President Barack Obama and congressional Republicans have been viewed as signs of progress, a final agreement remains elusive.



When not worrying about the government shutdown, investors will dive into the first busy week of third-quarter results, led by bellwethers General Electric Co, Goldman Sachs Group Inc, and Google Inc.



"If we see a deal over the weekend, the market will trade back to where it was before all this concern settled in, near all-time highs," said David Joy, chief market strategist at Ameriprise Financial in Boston. "Otherwise we'll probably fall back to 1,650, possibly further, depending on how rancorous the disagreement is."



Increase in volatility



The S&P 500 is above its major moving averages, which could serve as support in the case of a market decline. The benchmark index is 0.9 percent above its 50-day moving average of 1,678.22, and 1.8 percent above its 100-day average of 1,662.53.



Many analysts have forecast increased volatility the longer the market goes without a deal. The CBOE Volatility index spiked this week above 20 for the first time since June. Trading in VIX futures suggested more concern about the near-term market trend as well.



Data showed investors were willing to pay more for protection against a slide in the S&P 500 now than three months down the road. On Wednesday, the spread between the VIX and 3-month VIX futures briefly hit its lowest since late 2011 at around negative 2.



That condition reversed on Thursday when the market rallied sharply, but traders remain on guard against another jolt of volatility if Washington politicians emerge from the weekend without any progress.



The indexes' weekly performance was mixed. Late in the session on Friday, the Dow Jones industrial average rose 0.5 percent, the S&P added 0.2 percent and the Nasdaq fell 1.1 percent, pressured by selling in some of its best performers this year, including Netflix and Tesla Motors Inc.



While most analysts said a default on U.S. debt would be catastrophic for the economy, they also said it was highly unlikely that a deal would not be reached.



Ken Fisher, who oversees $49 billion at the Woodside, California-based Fisher Investments Inc, said there was a "maybe 0.0001 percent chance" the debt ceiling would be breached.



"People have been saying that things are different this time, but Washington is just a distraction for markets, simple as that," Fisher said. "If a default was possible, you would see bond prices fall through the floor. Eventually you have to stop listening to the people crying wolf."



Notably, investors in the short-term Treasury bill market are preparing in case of a missed or delayed payment. Yields on bonds maturing from late October through the end of 2013 are at elevated levels as investors shun those issues as a result of the default threat.



Earnings heat up



Next week is a busy one for corporate earnings. Results and outlooks from banks may be the most important, as investors look for companies' comments on how the shutdown may affect growth and the impact of higher interest rates. Among the early indications, Wells Fargo said revenue from home refinancings fell to its lowest level since the second quarter of 2011.



"The shutdown will impact earnings growth some, but I expect the negative effect will likely be small," said Fisher. "We're clearly still in the middle phases of a bull market."



S&P 500 companies are expected to post earnings growth of 4.2 percent in the quarter, down from the 8.5 percent rate that had been forecast on July 1, according to Thomson Reuters data. Of the 31 S&P components that have reported thus far, about 55 percent have topped expectations, below the historical average of 63 percent.



While some government-prepared economic data will be delayed next week because of the shutdown, including consumer prices and housing starts, those still scheduled include the New York Fed manufacturing survey and Philadelphia Fed survey, both for October.



Monday is Columbus Day and a federal holiday. Stock markets will be open but the U.S. government, of course, will remain shut.

source: interaksyon.com

Republicans unveil plan to avert US debt default, probably end standoff

WASHINGTON - Republicans in the House of Representatives on Thursday unveiled a plan that would avert a looming US default, in a sign that lawmakers may end a standoff that has rattled financial markets and thrown America's future creditworthiness into question.

Ahead of a meeting with President Barack Obama, it was unclear whether Republicans would be willing to end a government shutdown that took effect on October 1 without concessions that would undermine Obama's signature healthcare law, a stance that precipitated the crisis.

Still, the offer to raise the debt ceiling is a significant shift for Republicans, who had hoped to extract concessions on spending and health care. By extending the government's borrowing authority until possibly the middle or end of November, it would eliminate the near-term threat of a default that would hit everyone from retirees to bondholders.

"It's time for these negotiations and this conversation to begin," House Speaker John Boehner told reporters after presenting the plan to his fellow Republicans.

Obama has already said he is willing to consider a short-term debt ceiling increase as long as it is not tied to other concessions. Obama will take a look at the proposal, a White House official said. But the White House insisted that Republicans also must agree to end a government shutdown that took effect on October 1.

Many rank-and-file Republicans also appeared to be skeptical of the deal when Boehner presented it at a closed-door meeting on Thursday morning, aides said. Boehner's grip over his troops has been tenuous this year and many of the chamber's most conservative lawmakers have defied him repeatedly on other crucial votes.

Still, investors seemed to be heartened by the development. US stocks rallied strongly with major indexes climbing more than 1 percent.

The Treasury Department says it will be unable to pay all of its bills if Congress does not raise the $16.7 trillion debt ceiling by October 17. Republicans say the Obama administration would be able to keep up with its bond payments at the expense of other obligations if that deadline was missed. Treasury Secretary Jack Lew said that's not possible.

"It would be chaos," he told the Senate Finance Committee.

The Republican plan would postpone that day of reckoning by six weeks, which would give them more time to seek spending cuts, a repeal of a medical-device tax, or other measures they say are needed to keep the national debt at a manageable level.

Democrats have called for a debt-ceiling hike that would extend government borrowing authority for more than a year.

The House could vote on the measures as early as Thursday afternoon, though timing remained unclear. House leaders canceled a planned recess and said they would remain in Washington next week to keep working on the problem.

With the October 17 deadline a week away, Obama is scheduled to meet with House Republican leaders on Thursday afternoon. He is also due to meet separately with Senate Democrats and Senate Republicans.

The plan would do nothing to resolve Republican objections to Obama's healthcare reform bill, known as the Affordable Care Act, which prompted the October 1 shutdown.

Hundreds of thousands of federal employees have been out of work since then and individual businesses, from arms makers to motels, have begun to lay off workers as well.

The Labor Department said on Thursday that 15,000 private-sector workers have filed for unemployment benefits due to the shutdown.

House Republicans have passed bills that would reopen portions of the government and otherwise ease the pain of the shutdown, but they still hope to tie a full restoration of government funding to conditions that would undercut "Obamacare," as it is popularly known. (Additional reporting by Jason Lange, Thomas Ferraro, Steve Holland and Roberta Rampton)

source: interaksyon.com

Dow, S&P 500 end modestly higher on hopeful signs in fiscal impasse

NEW YORK - The Dow and S&P 500 rose on Wednesday as Republicans and Democrats in Congress showed early signs of a possible break in the impasse, and U.S. President Barack Obama invited both sides for talks about ending the government shutdown, now in its ninth day.



Wall Street rebounded in the afternoon after the Nasdaq fell as much as 1 percent, with defensive sectors such as telecommunications and utilities rising on the day.



The Nasdaq, however, closed lower for a third day, pressured as investors sold this year's winning tech stocks including Netflix Inc and Fastenal Co.



"With the uncertainty over the government shutdown and the shaving away of the GDP each day, unfortunately, some investors will start selling these things that were good for the year rather than pulling off the laggards. And tech has been performing very highly," said Michael Matousek, head trader at U.S. Global Investors in San Antonio, Texas.



In the latest Washington developments, Republicans and Democrats floated the possibility of a short-term increase in the debt limit to allow time for broader negotiations on the budget.



At the same time, Obama began inviting lawmakers from both parties to the White House for meetings to discuss the government shutdown and raising the debt limit.



The slight shift in tone was aided by a column by House Budget Committee Chairman Paul Ryan of Wisconsin, who urged a negotiated end to the stalemate but did not mention Republican demands for linking changes in the federal healthcare law with government funding.



The market was also relieved that Obama nominated Federal Reserve Vice Chairwoman Janet Yellen to run the world's most influential central bank, providing some relief to markets that would expect her to tread carefully in winding down economic stimulus.



Yellen, an advocate for aggressive action to stimulate U.S. economic growth through low interest rates and large-scale bond purchases, would succeed Fed chairman Ben Bernanke, whose second term ends on January 31.



The Dow Jones industrial average ended up 26.45 points, or 0.18 percent, at 14,802.98. The Standard & Poor's 500 Index rose 0.95 point, or 0.06 percent, at 1,656.40. The Nasdaq Composite Index was down 17.06 points, or 0.46 percent, at 3,677.78.



The CBOE Volatility Index, a measure of investor anxiety, continued to rise, hitting 21.34, before retreating to 19.60. A level above 20 is generally associated with increasing concern about the near-term direction of the market.



A poll by Reuters showed Wall Street strategists expect the market to rebound toward the end of the year.



The S&P 500 dropped 1.2 percent on Tuesday, its worst decline since August 27, sending the benchmark index to its lowest level since September 6 as traders cashed in gains in some of the year's highest performing tech stocks.



The Federal Reserve's shock decision last month not to reduce its support for the U.S. economy was a "relatively close call" for policymakers, according to minutes of the meeting that also suggested there was still broad support to trim bond-buying this year. Since last month's meeting, the outlook for scaling back bond purchases has grown cloudier.



"Between slow growth and the shutdown, it's clear we're in troubled times. I wouldn't expect any tapering for quarters from now," said Todd Schoenberger, managing partner at LandColt Capital in New York.



In company news, Darden Restaurants Inc shares jumped 7.1 percent to $49.57 after the Wall Street Journal, reported hedge fund Barington Capital LP had taken a 2.8 percent stake in the owner of the Olive Garden and Red Lobster restaurants.



Shares of Hewlett-Packard Co rallied nearly 9 percent to $22.60 after Chief Executive Meg Whitman said she expects revenue to stabilize in 2014 with "pockets of growth" before the business accelerates again in 2015.



Yum! Brands Inc fell 6.8 percent to $66.48 after the KFC parent warned it will take longer than expected for restaurant sales to rebound in China, which accounts for more than half the company's overall operating profit.



Volume was light, with about 5.9 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average so far this year of about 6.1 billion shares.

source: interaksyon.com

Obama admits cancelled Asian trip hurt US credibility, boosted China

WASHINGTON -- President Barack Obama said on Tuesday that China had probably taken advantage of his absence from a summit in Asia this week and he warned that the government shutdown and fiscal debate were hurting US credibility abroad.

Obama last week canceled a trip to Indonesia and Brunei, opting to stay home and manage the US government shutdown instead of joining other world leaders at international summits being held there.




A week after the shutdown started, Republicans and Democrats are still at an impasse over how to reopen the government and raise the US debt ceiling before an October 17 deadline.

At a news conference on Tuesday, Obama said he should have been able to make the trip to help advance a trade agreement and present a counterweight to China.

"I'm sure the Chinese don't mind that I'm not there right now," he said. "There are areas where we have differences and they can present their point of view and not get as much push back as if I were there."

Obama's cancellation of the trip, which was also to include stops in Malaysia and the Philippines, has raised doubts about his administration's vaunted pivot to Asia, which was aimed at reinvigoration US military and economic influence in the region while balancing a rising Beijing.

Secretary of State John Kerry attended in Obama's place.

Chinese President Xi Jin ping was in Indonesia announcing a raft of trade deals worth $30 billion when US officials announced Obama would be a no-show.

Obama had hoped to advance talks for a trade pact known as the Trans-Pacific Partnership, or TOP, during the Asia trip. Talks over the pact involve 12 nations and aim to establish a free-trade bloc that would stretch from Vietnam to Chile to Japan.

The United States expressed hope on Tuesday it could seal the pact by the end of the year despite resistance from some countries and Obama's absence from the regional summit.

"It didn't help that I wasn't there to make sure that we went ahead and closed a trade deal that would open up markets and create jobs for the United States, and make sure that countries were trading fairly with us in the most dynamic, fastest-growing market in the world," Obama said at the White House. "I should have been there."

'Not showing up to my own party'

Obama attends summits around the world every year, and US officials prepare for them for weeks. The president's emphasis on attending regional summits in Asia was designed to put muscle behind his promise the United States would remain a Pacific power.

"The irony is our teams probably do more to organize a lot of these multilateral forums and set the agenda than anybody. I mean, we end up being engaged much more than China, for example, in setting the agenda and moving this stuff forward," Obama said.

"It's almost like me ... not showing up to my own party. I think it creates a sense of concern on the part of other leaders."

Since 2011, China has consolidated its position as the largest trade partner with most Asian countries.

It is also the top holder of US debt, adding further pressure to the United States to avoid a default.

Obama sought to assure international partners that the United States would pay its bills and service its debt, but he cautioned that the ability to raise the US borrowing limit lay in the hands of the Republican-controlled House of Representatives and its leader, John Boehner.

Obama lamented the fact that repeated budget crises in the United States were hurting its reputation abroad.

"Whenever we do these things, it hurts our credibility around the world. It makes it look like we don't have our act together. And that's not something we should welcome," he said.

"If we deal with this the way we should, then folks around the world will attribute this to the usual messy process of American democracy, but it doesn't do lasting damage."

source: interaksyon.com

Obama, congressional leaders still deadlocked on shutdown

WASHINGTON -- President Barack Obama met with Republican and Democratic leaders in Congress on Wednesday to try to break a deadlock that has shut down wide swaths of the federal government, but there was no breakthrough.

After more than an hour of talks, House of Representatives Speaker John Boehner said Obama refused to negotiate, while House Democratic Leader Nancy Pelosi and Senate Democratic Leader Harry Reid accused Republicans of trying to hold the president hostage over Obamacare.

Reid said Obama told Republicans "he will not stand" for their tactics.

As hundreds of thousands of federal employees faced a second day without pay, leaders of the Republican-controlled House of Representatives and the Democratic-led Senate offered token concessions that were quickly dismissed by the other side. Obama, meanwhile, scaled back a long-planned trip to Asia.

Republicans have tried to tie continued government funding to measures that would undercut Obama's signature healthcare law. Obama and his Democrats say that is a non-starter.

"The president reiterated one more time that he will not negotiate," Boehner told reporters after the White House meeting. "All we're asking for here is a discussion and fairness for the American people under Obamacare."

Reid said Democrats were willing to discuss any ways to tackle the budget after a temporary funding bill is passed. "We're through playing these little games," he said.

The shutdown, which took effect Monday at midnight (0400 GMT Tuesday), has raised questions about Washington's ability to carry out its most essential duties.

Though it would do relatively little damage to the world's largest economy in the short term, global markets could be roiled if Congress also fails to raise the debt limit before borrowing authority runs out in coming weeks.

The shutdown has closed landmarks like the Grand Canyon and prevented some cancer patients from receiving cutting-edge treatment.

United Technologies Corp, which makes Sikorsky helicopters and other items for the military, said it would be forced to furlough as many as 4,000 employees, if the US government shutdown continues through next week, due to the absence of government quality inspectors.

Exasperated

"Am I exasperated? Absolutely I'm exasperated. Because this is entirely unnecessary," Obama told CNBC television in an interview before meeting the congressional leaders. "I am exasperated with the idea that unless I say to 20 million people, 'You can't have health insurance,' these folks will not reopen the government. That is irresponsible."

The US Army's top general said the shutdown was significantly harming day-to-day operations, and intelligence leaders say it is undermining their ability to monitor threats. A Federal Reserve official said it could delay the central bank's ability to assess whether its monetary stimulus efforts are still needed.

The uncertainty in Washington has forced the White House to scale back an Asia trip that was designed to reinforce US commitment to the region.

Obama scuttled two stops on a planned four-country tour and left visits to two other countries up in the air. He was due to leave on Saturday and return a week later.

Secretary of State John Kerry will visit Malaysia and the Philippines in his place. Obama is weighing whether to attend diplomatic summits in Indonesia and Brunei, a White House official said.

Despite the disruption, Boehner's Republicans have failed to derail Obama's controversial healthcare law, which passed a milestone on Tuesday when it began signing up uninsured Americans for subsidized health coverage.

Though some moderate Republicans have begun to question their party's strategy, Boehner so far has kept them united behind a plan to offer a series of small bills that would re-open select parts of the government most visibly affected by the shutdown.

The Republican-controlled House passed and sent to the Senate a funding bill that would re-open the National Institutes of Health, which conducts medical research, and another bill to reopen shuttered federal parks and museums, such as the Smithsonian museums, the National Gallery of Art and the Holocaust Memorial Museum in Washington.

Both bills passed with the support of about two-dozen Democrats, who joined Republicans. The House was expected to vote Thursday on measures to fund veterans' care, the District of Colombia and the Army Reserve.

The measures are likely to be defeated in the Democratic-controlled Senate, and Obama said he would veto them if they reached his desk.

Still, they allowed Republicans to charge that their adversaries are standing in the way of help for elderly veterans and young cancer patients. "Will they now say 'no' to funding for veterans, our National Parks and the National Institutes of Health?" asked Boehner spokesman Michael Steel.

Reid told Republicans he would engage in talks about tax reform, farm policy and other pressing issues that Congress has failed to address once Republicans agreed to re-open the government without conditions. Republicans dismissed that idea.

A Reuters/Ipsos poll indicated that 24 percent of Americans blamed Republicans for the shutdown, while 19 percent blamed Obama or Democrats. Another 46 percent said everyone was to blame.

Bigger fight ahead

The shutdown fight is rapidly merging with a higher-stakes battle over the government's borrowing power that is expected to come to a head soon.

Treasury Secretary Jack Lew has said the United States will exhaust its borrowing authority no later than October 17.

The government could have difficulty paying pension checks, interest charges and other bills after that point.

Many Republicans see the debt limit vote as another opportunity to undercut Obama's healthcare law or extract other concessions -- an approach that business groups say could lead to disaster.

"You can re-litigate these policy issues in a political forum, but they shouldn't use the threat of causing the US to fail on its ... obligations to repay on its debt as a cudgel," Goldman Sachs chief executive Lloyd Blankfein told reporters after he and other financial-industry executives met with Obama.

Some Democrats have begun to consider asking Obama to unilaterally raise the debt ceiling on his own -- a move that could lead to years of court battles. The White House has said that approach is not feasible.

Asked whether there is a push underway among Democrats to convince Obama that he should use this power, a senior House Democrat who asked not to be identified said: "No, not at this point."

Stock investors on Wednesday appeared to show growing anxiety over the standoff after taking the news in their stride on Tuesday. The S&P 500 and the Nasdaq both closed down 0.1 percent.

Obama said Wall Street should be worried about the debt ceiling. "I think this time's different. I think they should be concerned," Obama told CNBC. "When you have a situation in which a faction is willing potentially to default on US government obligations, then we are in trouble."

A short-term shutdown would slow US economic growth by about 0.2 percentage points, Goldman Sachs said on Wednesday, but a weeks-long disruption could weigh more heavily -- 0.4 percentage points -- as furloughed workers scale back personal spending.

The last shutdown in 1995 and 1996 cost taxpayers $1.4 billion, according to congressional researchers.

source: interaksyon.com