4 SKoreans freed after being kidnapped in Nigeria

SEOUL, South Korea (AP) — Four South Korean construction workers and a Nigerian colleague who were kidnapped in southern Nigeria have been freed. The five employees of Hyundai Heavy Industries Co. were preparing for the construction of factories when they were abducted by unidentified gunmen Monday in Bayelsa state. Bayelsa State police chief Kingsley Omire said Saturday that the kidnappers "freely released" their hostages at about 9.30 p.m. Friday. He said no ransom was paid. Seoul's Foreign Ministry said in a statement Saturday that the release was the result of "persistent persuasion." Omire said no one was hurt and that the Bayelsa State government had a strict no-ransom police. Kidnappings for ransom are frequent in Nigeria's oil-rich delta.

Read More..

Burger King's Whopper returns to France

PARIS (AP) — For the first time in 15 years, Burger King served its flame-grilled Whoppers in France, a country better known for its gastronomy than fast food. Burger King Worldwide opened a restaurant at Marseille airport on Saturday, returning to France thanks to an agreement with Autogrill, which operates restaurants at highway service stations. The burger chain, the world's second biggest behind McDonald's, closed its 39 French restaurants in 1997, because they were not profitable. Burger King says their next restaurant is planned at a highway service station in Champagne in the first half of 2013.

Read More..

Obama tries to rescue fiscal talks for post-Christmas deal

WASHINGTON (Reuters) - The White House on Friday tried to rescue stalled talks on a fiscal crisis after a Republican plan imploded in Congress, but there was little headway as lawmakers and President Barack Obama abandoned Washington for Christmas. In remarks before flying to Hawaii for a break, Obama suggested reaching a short-term deal on taxes and extending unemployment insurance to avoid the worst effects of the "fiscal cliff" on ordinary Americans at the start of the New Year. "We've only got 10 days to do it. So I hope that every member of Congress is thinking about that. Nobody can get 100 percent of what they want," said Obama. Obama said he wanted to sign legislation extending Bush-era tax cuts for 98 percent of Americans in the coming days. The Democrat appeared to be offering bickering lawmakers a way to fix the most pressing challenge - tax cuts that expire soon - while leaving thorny topics such as automatic spending cuts or extending the debt ceiling for later. Obama called on lawmakers to use the holiday break to cool off frayed nerves, "drink some eggnog, have some Christmas cookies, sing some Christmas carols," and come back next week ready to make a deal. Negotiations were thrown into disarray on Thursday when House of Representatives Speaker John Boehner failed to convince his fellow Republicans to accept tax cuts for even the wealthiest of Americans as part of a possible agreement with Obama. "How we get there, God only knows," Boehner told reporters on Friday when asked about a possible comprehensive fiscal cliff solution. If there is no agreement, taxes would go up on all Americans and hundreds of billions of dollars in automatic government spending cuts would kick in next month - actions that could plunge the U.S. economy back into recession. Obama spoke to Boehner on Friday and held a face-to-face White House meeting with the top Democrat in Congress, Senate Majority Leader Harry Reid. Before his defeat in Congress, Boehner had extracted a compromise from Obama to raise taxes on Americans making more than $400,000 a year, instead of the president's preference of those with income of $250,000 a year. But with talks stalled on the level of spending cuts to which Obama would agree, Boehner attempted a backup plan to raise taxes only on those making more than $1 million a year - amounting to just 0.18 percent of Americans. BAD DEFEAT FOR BOEHNER Boehner's reverse in the House was worse than first thought. A key Republican lawmaker said Boehner scrapped the vote when he realized that between 40 and 50 of the 241 Republicans in the House would not back him. Obama and his fellow Democrats in Congress are insisting that the wealthiest Americans pay more in taxes in order to help reduce federal budget deficits and avoid deep spending cuts. Republicans control the House and Democrats control the Senate. Stocks dropped sharply early Friday on fears that the United States could go fall back into recession if politicians do not prevent it. But major indexes lost less than 1 percent, suggesting investors still held out hope that an agreement will be brokered in Washington. "I think if you get into mid-January and (the talks) keep going like this, you get worried, but I don't think we're going to get there," said Mark Lehmann, president of JMP Securities, in San Francisco. Boehner, joined by his No. 2, Eric Cantor, at a Capitol Hill news conference, said the ultimate fault rests with Obama for refusing to agree to more spending reductions that would bring down America's $1 trillion annual deficit and rising $16 trillion debt. "What the president has proposed so far simply won't do anything to solve our spending problem. He wants more spending and more tax hikes that will hurt our economy," Boehner said. Democrats responded with incredulity. House members, heading to their home states for the holidays, were instructed to be available on 48 hours notice if necessary. "They went from 'Plan B' to 'plan see-you-later,'" Obama adviser David Axelrod said on MSNBC on Friday morning. The crumbling of Boehner's plan highlights his struggle to lead some House Republicans who flatly reject any deal that would increase taxes on anyone. Republican Representative Tim Huelskamp criticized Boehner's handling of the negotiations, saying the speaker had "caved" to Obama opening the door to tax hikes. Huelskamp, a dissident first-term congressman from Kansas, said he was not willing to compromise on taxes even if they are coupled with cuts to government spending sought by conservatives. Fiscal conservatives "are so frustrated that the leader in the House right now, the speaker, has been talking about tax increases. That's all he's been talking about," Huelskamp said on MSNBC on Friday morning.

Read More..

EU to give Spain, France more time to cut deficit: press

MADRID (Reuters) - The European Commission will propose giving Spain, France and several other euro zone states more time to cut their public deficits below the target limit of 3 percent of GDP, newspaper El Pais said on Saturday. Citing senior Spanish and European Union sources, the Madrid-based daily said France could get an extra year, allowing it to narrow its fiscal gap by 2014, while Spain would be given one or two more years beyond that date. France said on Saturday that it would maintain its deficit-reduction goal for 2013 regardless of any softer line from Brussels. A Commission spokeswoman declined to comment on the report. Spain's fiscal targets are to be reassessed in February, EU Economic and Monetary Affairs Commissioner Olli Rehn said last month. No additional austerity efforts are needed until 2014, he added, when more structural reforms are likely to be required. France does not appear to need additional belt-tightening and may have room for a "softer adjustment", the commissioner also said in an interview with France's Le Monde newspaper on Friday. But France said on Saturday it planned to stick to its 3 percent goal for next year. "Our public finance path remains unchanged as it was fixed in the autumn," an aide to Prime Minister Jean-Marc Ayrault said. The French government's 2013 budget is based on a 0.8 percent growth forecast for the year - more optimistic than the flat economic output predicted by Brussels and the International Monetary Fund. European and Spanish sources had said earlier this month that Spain's fiscal path was likely be loosened to offset the country's second recession in three years. Such decisions need a formal discussion between the 27 European commissioners as well as a political green light from euro zone finance ministers. Spain sought support from its European partners this year for its ailing banks, hit by a burst property bubble. Recession is also undermining government efforts to keep the public debt burden in check, and financial markets expect Madrid to seek sovereign aid sometime next year. Madrid is to unveil new curbs on index-linked pension payouts and accelerate increases to the retirement age. Both EU demands must be met for Spain to tap international aid, lower its debt costs and fix its stricken economy. According to El Pais, the Commission has agreed on a new Spanish deficit path of 7 percent of economic output in 2012 and 6 percent in 2013. That compares to current targets of 6.3 percent for 2012 and 4.5 percent for 2013. Senior Spanish officials told Reuters this month the deficit would probably come in at around 7 percent at year end. Spain's 17 highly devolved autonomous regions are broadly on course to meet their deficit target of 1.5 percent of GDP, while the central government is heading for a deficit close to 5.5 percent, including social security spending.

Read More..

Will he or won't he? Italy awaits Monti's decision

ROME (AP) — Italy's president dissolved parliament Saturday, setting the stage for general elections in February and leaving only one lingering question from Premier Mario Monti's 13-month term trying to fix Italy's troubled finances: whether he will run. Monti will announce his decision Sunday, ending weeks of speculation and jockeying that have dominated Italy's political discourse and preoccupied much of Europe, which is eager to see Monti's financial reforms continue in the continent's third-largest economy. With polls showing a Monti-led list would only garner about 15 percent of the vote, all signs indicated he would refrain from campaigning or even allowing his name to be used on a political ticket grouping a handful of small centrist parties. "Monti leaning towards a 'no'," the Turin daily La Stampa headlined Sunday. "Monti pulls back on running," Corriere della Sera said on its front page. Whether he might endorse a centrist movement is another matter. "It's clear that Monti's candidacy would give authority to our political platform, but we'll respect his choices, whatever they may be," said Pier Ferdinando Casini, one of the centrist leaders who have been actively courting Monti in recent weeks. Monti resigned Friday after ex-Premier Silvio Berlusconi's party withdrew its support from his technical government, forcing a crisis that brought a premature and chaotic end to the legislature's five-year term. Monti was tapped by Italy's president to lead the country in late November 2011 after Berlusconi was forced to resign, having lost the confidence of international markets in his ability to save the country from a Greek-style debt crisis. The respected economist and former European Union commissioner won back a degree of international credibility for the country through a series of tax hikes and fiscal reforms that were deeply unpopular at home. Italy's borrowing rates have come down significantly, thanks also to the European Central Bank's bond-buying program. Monti's resignation set in motion a series of procedures that culminated with President Giorgio Napolitano signing a decree Saturday to dissolve parliament. Polls indicate the center-left Democratic Party will win the vote, with the upstart populist movement of comic Bepe Grillo coming in second and Berlusconi's People of Freedom party coming in third. Berlusconi's party has been in disarray ever since he resigned, with defections of top party leaders and chaos over whether the billionaire media mogul will run himself. He has flip-flopped several times about his intentions, with his latest that he would run but would step aside if Monti runs. Berlusconi's party has also been discredited by a series of party funding scandals that have seen dozens of local politicians placed under investigation for allegedly misusing public funds for personal use. He also was convicted of tax fraud in October and is on trial on charges he paid for sex with an underage woman. He has denied the charges and is appealing the conviction. He also recently announced he was dating a woman nearly 50 years his junior.

Read More..

World Series Goes to Game 7 After an Epic Win by St. Louis

After being one strike away from elimination in back-to-back innings, the St. Louis Cardinals twice rallied from two runs down towin an 11-inning classic and force Game 7 of the World Series. RELATED: The Texas Rangers' Campaign Against 'The Wave' The Cards trailed Texas by two runs in both the ninth and tenth innings, but got multiple clutch hits from the likes of Albert Pujolsand Lance Berkman to the tie the game both times. Then David Freese — who tied the game with a triple in the ninth — led off the bottom of the 11th inning with a monster home run to center field,leaving baseball fans giddy at the prospect of a seventh game, the first in the World Series since 2002. RELATED: Red Sox-Yankees Games Are Unbearably Long The epic, four-hour-plus contest was a sloppy affair (the teams combined for five errors), but is already being compared to some of the best games in Series history. Particularly other great Game Sixes, like the ones in 1975, 1986, 1991, and 1993. RELATED: Tebow Booed in New York; Yachtsmen Mourned in San Francisco The game featured 15 pitchers (not counting one who had to pinch hit in the 10th), 5 home runs and 5 errors. One of the home runs came from St. Louis' Allen Craig, who was only in the game because outfielder Matt Holiday hurt his finger getting picked off first by Texas catcher Mike Napoli. RELATED: An Embarrassing Ending: Manny Ramirez Retires Game 7 will be tomorrow night at 8 p.m., in St. Louis. The starting pitchers are expected to be Matt Harrison, who lost Game 4 for Texas and Chris Carpenter, who (thanks to yesterday's rain delay) will start his third game of the series on just three days rest.

Read More..

Baseball Had A Really Good Night on Friday

So much for the risk of major media-market teams missing the World Series. Twenty-five million people watched Game Seven between the St. Louis Cardinals and the Texas Rangers.
RELATED: A Wet World Series Forecast; NBA Players Plot World Tour
It's a truism of sports journalism — at least of the shouty AM radio call-in show variety — that no one's really going to care about the World Series if a marquee team doesn't make it to October. Think of the New York Yankees, the Boston Red Sox, the Los Angeles Dodgers, or (somehow?) the Chicago Cubs.
RELATED: The Genius of Tony La Russa; NFL Concussion Lawsuits Move Ahead
That myth was demolished Friday night by Game 7 of the Series between the St. Louis Cardinals and Texas Rangers, which was watched by 25 million people, the largest audience for a baseball game since 2004, the year of the historic Red Sox comeback against the Yankees and their first Series win since Russia had a tsar.
RELATED: Ratings for World Series Beats the NFL; NCAA Players May Get a Raise
The ratings were big, Sports Illustrated reports, and the game was the best-watched Friday TV event since the 2010 Olympics.
RELATED: World Series Gets Rained Out; NFL's Smartest Quarterback Has a Good Arm
Some caveats: St. Louis has long thought of itself as a preeminent baseball town, and the Rangers' local fan base, in the Dallas-Fort Worth metropolitan sprawl-plex, isn't exactly a small market. But the results would seem to suggest that the best way to get a lot of people watching a World Series is to make it a really great series. And to go a full seven games.

Read More..

The Los Angeles Dodgers Are for Sale

After a months-long battle over the fate of one of baseball's iconic franchises, beleaguered owner Frank McCourt has finally agreed to sell the Los Angeles Dodgers. Major League Baseball announced the deal late last night, ending a bitter dispute that sent the team into bankruptcy and caused loyal fans to revolt.
RELATED: L.A. Dodgers Set Record with $2 Billion Sale
According to the Los Angeles Times, the sale will supervised by the bankruptcy court and will include the team, Dodger Stadium, the surrounding parking lots, and all the other assets owned by McCourt. The league had seized control of the team's operations earlier this season, accusing McCourt of siphoning millions of dollars away from the Dodgers for his own personal use, including paying for his ongoing legal battle with ex-wife, Jamie.
RELATED: NBA Players Reject Latest Owners' Latest Offer
The sale will likely set a record for the highest price ever paid for an MLB franchise. Forbes estimates the team to be worth about $800 million, but McCourt was offered $1.2 billion for them earlier this year and if a bidding war develops (there are several suitors that have expressed interest) the price could go even higher. Before MLB attempted to take over the team, McCourt had negotiated a local TV rights deal with Fox worth $3 billion over 20 years, proving that the Dodgers are still one of the hottest commodities in sports.
RELATED: Debt-Ridden Dodgers Now Major League Baseball's Problem
McCourt and his wife paid $421 million for the franchise in 2004, but is unlikely to realize much profit due to his massive  legal bills and tax debts. He and his wife recently agreed to a divorce settlement that requires him to pay her $130 million for her share of the team (among other things.)
RELATED: ESPN Stands by Its Creepy Picture of White Michael Vick
None of that matters any more to Dodger fans, however, who are simply glad to be rid of their hated owner. Attendance plummeted this year as fans protested McCourt's decimation of the team by staying away in droves.

Read More..

Major League Baseball Catcher Is Kidnapped in Venezuela

Washington Nationals catcher Wilson Ramos has reportedly been kidnapped in his home country of Venezuela. Four gunman took him from his house on Wednesday, but no demands have been made yet.
RELATED: Pakistani Cricket Players Receive Jail Time for Fixing Matches
This is the not the first time that a Major League Baseball player has been targeted for kidnapping, although usually it is family members of stars who are the victims. The brother of Arizona catcher Henry Blanco was killed in 2008, and the infant son of Yorvit Torreabla (another Venezuelan catcher) was ransomed and returned unhurt in 2009. Venezuela reportedly has the highest kidnapping rate in the world, and athletes are obviously among the country's wealthiest and most high-profile citizens, even (or especially) if they stay in the United States while leaving family behind.
RELATED: Alleged Thief Dies After Fight with Walmart Workers in Parking Lot
Ramos played 113 games for the Nationals this year and had just returned south to play winter ball in his home town. Details of the kidnapping are still sketchy at this point, but obviously the hope is that the kidnappers simply want money and will return him unharmed.

Read More..

Warriors beat Hornets at home to stay hot

(Reuters) - The Golden State Warriors staved off a late fourth-quarter challenge to beat New Orleans Hornets 103-96 for a successful home return on Tuesday.
David Lee had 26 points and nine rebounds while Klay Thompson added 19 points as the Warriors triumphed in their first game at Oracle Arena since a recent seven-game road trip that saw them finish 6-1.
Despite the Golden State controlling the Hornets for most of the night, New Orleans made a furious run in the fourth to tie the game 92-92 with about four minutes remaining.
Jarrett Jack responded with six free throws during a game-deciding 9-2 stretch to help Golden State (17-8) continue their sparkling start to the season.
"We had a lot of confidence tonight, a lot more confidence than in the past," Lee told reporters after The Warriors were off to their best start since the 1991-1992 season when they started 21-8.
"It's no fun when a team's catching up on you like that, but I think we had confidence we could make plays down the stretch."
One of the younger teams in the league, few expected the Warriors to open the campaign this successfully and they are now just 1 1/2 games behind the Pacific Division lead.
The Hornets (5-19) have lost eight straight, despite getting 28 points off the bench from Ryan Anderson in their latest defeat.
Also a youthful group, New Orleans have endured a tough start and have now dropped 18 of their last 20 games.
Number one overall draft pick Anthony Davis recorded 15 points and 16 rebounds in his fifth game back since missing extensive time with a ankle injury. Greivis Vasquez added 20 and 11 assists.
Golden State grabbed a 10-point lead after the first quarter and were up 90-78 midway through the fourth before the visitors fought back by outscoring the Warriors 14-2 over a three-minute stint.

"It's just a tough loss for us, especially when you tie it up, you have a chance to win," said Hornets coach Monty Williams. "We just haven't found that closing mentality."

Read More..

TC to delay Google anti-trust probe decision: source

WASHINGTON (Reuters) - The Federal Trade Commission (FTC), which had been expected to wrap up an anti-trust probe into Google within days, will now delay its decision for weeks, a source said on Tuesday. Google has been accused of giving competitors in lucrative areas like travel a lower ranking in search results, thus making it harder for their customers to find them. Google has repeatedly denied any wrongdoing. FTC Chairman Jon Leibowitz had hoped to wrap up the long-running investigation this month. Talk of a potential settlement in recent days had suggested Google would emerge from the more than two-year probe with little more than a slap on the wrist from the commission. The delay, first reported by The Wall Street Journal, came after the European Union took a hard line with the search engine giant on Tuesday in a parallel investigation. The EU's antitrust chief, Joaquin Almunia, gave Google a month to come up with detailed proposals to resolve a two-year investigation into complaints that it used its power to block rivals, including Microsoft. The European Commission has been examining informal settlement proposals from Google since July but has not sought feedback from the complainants, suggesting it is not convinced by what Google has put on the table so far. Google's critics have accused it of a long list of wrongdoing - everything from putting its own products high up in search results to bring them business to "scraping" reviews of hotels and restaurants from other sites for its own products. Google had reportedly been prepared to make some changes to its business practices to secure an end to the FTC investigation but had balked at allowing regulators to interfere with its search algorithm. The company was also apparently prepared to make concessions on certain patent infringement lawsuits.

Read More..

Exclusive: SPX closes in on $4.2 billion Gardner Denver deal - source

NEW YORK (Reuters) - Industrial machinery maker SPX Corp is closing in on a roughly $4.2 billion deal to buy rival Gardner Denver Inc, as it makes progress in securing financing, a source familiar with the matter said on Tuesday. A deal could value Wayne, Pennsylvania-based Gardner Denver at about $85 per share, the source said. Gardner Denver's shares closed at $73.68 on Tuesday. SPX has a market value of $3.23 billion, compared to $3.62 billion for Gardner Denver. SPX's financial advisor Credit Suisse Group AG has been joined by Bank of America Corp and JPMorgan Chase & Co in efforts to raise debt for the deal, the source said on condition of anonymity because the talks are confidential. A deal could value Wayne, Pennsylvania-based Gardner Denver at about nine times estimated 2012 earnings before earnings, tax, depreciation and amortization (EBITDA), the source said, cautioning details had yet to be finalized. A deal announcement could come as early as this week though no final agreement has yet been reached and negotiations could still fall apart, the source added. Depending on the availability of financing, SPX shareholders may be called on to vote on a capital increase to finance the share portion of the bid, the source said. A Gardner Denver spokesman declined to comment while SPX did not immediately respond to a request for comment. Credit Suisse, JPMorgan and Bank of America declined to comment. A deal with Charlotte, North Carolina-based SPX would represent a huge premium to the $55 per share level that Gardner Denver's shares traded at before Reuters reported news of a potential sale on October 25. Gardner Denver passed on private equity firms Advent International, KKR & Co LP, and a consortium of TPG Capital LP and Onex Corp, which made all-cash offers in the mid-to-high $70s per share range, people familiar with the matter told Reuters last week. The SPX offer was substantially higher, the people said. Some analysts looking at the financial fundamentals of a potential deal have suggested that an offer of up to $90 per share would not be unreasonable. "Comparing this to a sample of 47 large deals since 2009, we come to the conclusion that implied (valuation) multiples do not look egregious -- the average multiples paid since 2009 has been 2.1 times trailing sales and 12.9 times trailing EBITDA," Morgan Stanley analysts wrote in a note on December 16. SPX Chief Executive Chris Kearney has worked over the past few years to focus the company on its flow control business, making equipment used in processing liquids ranging from petroleum to dairy products. Gardner Denver makes compressors, pumps and vacuum products for industrial uses. Its decision to explore a sale followed months of pressure from activist investor ValueAct Capital LLC, which acquired a roughly 5 percent stake. The shareholder campaign followed the sudden resignation of Chief Executive Barry Pennypacker in July and his interim replacement by Chief Financial Officer Michael Larsen, who last month was appointed as permanent CEO. Gardner Denver has grappled with lower demand for petroleum and industrial pumps, which pressured its engineered products group. That group reported a 20 percent drop in revenue in the third quarter.

Read More..

Shares, euro rise on hopes of U.S. "cliff" deal, BOJ easing

SINGAPORE (Reuters) - Asian shares rose and the euro hit multi-month highs on Wednesday as signs of progress in resolving the U.S. "fiscal cliff" budget crisis and expectations of more aggressive monetary stimulus from the Bank of Japan lifted riskier assets. The gains in Asia came after Wall Street's S&P 500 <.spx> rose more than 1 percent, completing its best two-day run in a month, on growing confidence a deal can be reached in Washington to avoid a raft of painful spending cuts and tax rises due to take effect from January if there is no budget agreement. <.n> "What is important, and what is driving the market higher, is that the two parties are now in constructive discussions over specific tax levels and spending programs, and working towards a common middle ground," said Cameron Peacock, a strategist at IG Markets in Melbourne. Industrial commodities such as oil and copper consolidated earlier gains, while gold recovered some lost ground but remained not far above its lowest in nearly four months as progress in the U.S. budget talks limited its safe-haven appeal. JAPAN SHARES KEEP RISING Tokyo's Nikkei share average <.n225> rose 1.3 percent, topping 10,000 points for the first time since April, as the Bank of Japan (BOJ) was starting a two-day policy meeting. <.t> The BOJ will ease monetary policy and consider adopting a 2 percent inflation target in January, double its current price goal, sources say, after pressure from the incoming prime minister, Shinzo Abe, for stronger efforts to beat deflation. "The market is already in overbought territory, but investors are increasingly being alarmed that there is a risk of not having Japanese stocks in their portfolios," said Hiroichi Nishi, general manager at SMBC Nikko Securities. Australian shares <.axjo> rose to a 17-month high, led by miners and banks. MSCI's broadest index of Asia Pacific shares outside Japan <.miapj0000pus> gained 0.3 percent, while S&P 500 futures were flat. The euro rose as far as $1.3250 on electronic trading platform EBS, its highest since the beginning of May, and against the yen it fetched 111.58, having risen as far as 111.69, its highest since late August 2011. "Unless U.S. fiscal cliff talks take an unexpected turn for the worse, we believe that EUR/USD will meet our 1.3300 year-end target," analysts at BNP Paribas wrote in a note. Oil held steady, with Brent crude rising a few cents to around $108.88 a barrel and U.S. crude barely changed just below $88. "There is more upside potential for Brent because of a revival in the overall economic outlook," said Yusuke Seta, a commodities sales manager at Newedge Japan. Copper was also flat just above $8,020 a metric ton (1.1023 tons). Copper rallied almost 8 percent from mid-November to hit a two-month high a week ago, but has since lost some ground. Gold rose 0.3 percent to around $1,675 an ounce, after falling to $1,661.01 on Tuesday, its lowest since August.

Read More..

Republicans put squeeze on Obama in "fiscal cliff" talks

WASHINGTON (Reuters) - Frustrated by their inability to wring more "fiscal cliff" concessions out of President Barack Obama, Republicans in the U.S. House of Representatives announced Tuesday night that they expect to pass their own tax bill as a backup plan to avert the tax hikes and automatic budget cuts set to occur in January. No one expects the bill, which would extend low tax rates except on income of $1 million and above, to pass the Democratic-controlled Senate. President Barack Obama's latest position puts the threshold for income tax hikes at $400,000. While the move, called "Plan B" by Republicans, may not prompt Obama to give further ground in his negotiations with House Speaker John Boehner, it could allow Republicans to argue they did what they could to stop tax hikes and the full impact of the "fiscal cliff," which the Congressional Budget Office and economists have said could trigger another recession. "Why not put on the floor something that's what most Americans think the president is talking about, which is protecting from tax increases everybody but truly millionaires and billionaires?," said Republican Representative Pat Tiberi of Ohio. When it dies in the Senate, he said, "that's not our problem. We can't be held responsible for what the Senate does." Polls have consistently suggested that the public is likely to blame Republicans for failure to reach a deal ahead of the December 31 deadline for action. After important concessions in recent days from both Obama and Boehner, Republicans expressed frustration that the president had not moved further. The White House seemed unconcerned by the Republican tactic, and stressed Obama's willingness to compromise further. "The president has demonstrated an obvious willingness to compromise and move more than halfway toward the Republicans," White House spokesman Jay Carney told reporters, adding that Obama is making a "good faith" effort to reach a compromise. Still, the mood on Capitol Hill was guardedly optimistic. Global stocks advanced to their highest levels since September. Investors shifted funds to stocks and the euro and pulled away from safe-harbor assets such as bonds, gold and the U.S. dollar. "They've still got a long way to go, but you can't help but say that the odds are better today than they were on Friday that we'll get some sort of agreement," said Oklahoma Republican Representative Tom Cole. Hopes of an accord rose Monday night after Obama made a concession with his offer to limit tax increases to incomes exceeding $400,000 per household. That is a higher threshold than the $250,000 that the president had sought earlier. Boehner, the top Republican in Congress, had earlier conceded on Obama's insistence that tax rates rise on the wealthiest Americans, but the two have been unable to agree on what income levels should be included in that category. Analysts said Obama and Boehner may strike a compromise at $500,000 or close to that, though time was running short. One House Republican aide, asked about prospects for "Plan B" on the House floor, said: "It wouldn't be surprising ... if a lot of conservatives balk at something like that." The House's second ranking Republican, Eric Cantor, said he was confident his party members in the House would back the bill. 'WE CAN DO BETTER' Even as he presented the measure, Boehner said he would continue to negotiate with Obama on a broader agreement. "Plan B is Plan B for a reason. It's a less-than-ideal outcome. I've always believed we can do better," Boehner said. The expiration of low tax rates enacted under former President George W. Bush is a key component of the "fiscal cliff" that lawmakers are trying to prevent from taking hold next month, along with deep automatic government spending cuts. Often challenged by the conservative wing of his caucus, Boehner held Republican lawmakers together in support of his efforts to forge a deal with Obama. The speaker emerged largely unscathed from a potentially tough meeting with his fellow House Republicans on Tuesday morning. Representative Darrell Issa, a key committee chairman, said his fellow House Republicans "were supportive of the speaker. ... I saw no one there get up and say, 'I can't support the speaker.'" With opinion polls showing broad support in the United States for raising taxes on the wealthiest Americans and Obama still buoyed by his re-election last month, the Republicans' traditional opposition to tax hikes has waned somewhat. The Obama-Boehner talks have largely overcome stark ideological differences and are focused increasingly on narrower disagreements over numbers. COST-OF-LIVING INCREASES Obama also may face unrest from within his party. Liberal Democrats were likely to oppose a key compromise he has offered to permit shrinking cost-of-living increases for all but the most vulnerable beneficiaries of the Social Security retirement program. His proposal calls for using a different formula, known as "chained Consumer Price Index," to determine the regular cost-of-living increases, essentially reducing benefits. "I am committed to standing against any benefit cuts to programs Americans rely on, and tying Social Security benefits to chained CPI is a benefit cut," Democratic Representative Keith Ellison said in a statement. Obama also moved closer to Boehner on the proportion of a 10-year deficit reduction package that should come from increased revenue, as opposed to cuts in government spending. Obama is now willing to accept a revenue figure of $1.2 trillion, down from his previous $1.4 trillion proposal. Boehner's latest proposal calls for $1 trillion in new tax revenue from higher tax rates and the curbing of some tax deductions taken by high-income Americans. Missing from Obama's latest offer was any extension of the so-called "payroll tax holiday" that ends on January 1, bringing an immediate tax increase on wage earners. Possible plans to produce cuts in spending for Medicare and Medicaid, the government health insurance programs for seniors and low-income Americans respectively, remained to be discussed. Boehner and Obama have made headway on the politically explosive question of the president's ability to avoid constant battles over raising the nation's debt ceiling, which controls the level of borrowing by the government. Boehner is ready to give Obama a year of relative immunity from conservative strife over the debt ceiling, while Obama is pushing for two years.

Read More..

Ford says recalls have not hurt auto sales

DETROIT (Reuters) - Ford Motor Co is not experiencing a hit to its auto sales as a result of a recent spate of safety recalls, Chief Operating Officer Mark Fields said. "I think overall our sales are doing well," Fields told reporters on Tuesday, adding that consumers have a good perception of the quality of Ford products. "But we also understand that's a very precious thing and we're working very hard every day to deliver that quality commitment to our costumers," said Fields. Last week, Ford issued the fourth recall on its 2013 Escape crossover since July. The most recent recall was for increased risk of an engine fire due to a software glitch in the cooling system of the Escape as well as the midsize Fusion sedan. On December 10, the same day as the Escape and Fusion recall, the U.S. Environmental Protection Agency said it would investigate claims by Consumer Reports magazine that Ford's hybrid models of the Fusion and C-Max crossover fell well short of the official fuel economy rating of 47 miles per gallon. Fields spoke with reporters after an event in Detroit where Fields and Detroit Mayor Dave Bing announced a $10 million program Ford is to fund to create a community center, youth recreation and summer camp and support for education and summer job programs. Ford's 2103 Escape launched in July. Fields defended Ford's response to the safety recalls. "I think on the Escape launch, we've had a few issues," said Fields. "Our approach to any of our issues were very proactive - we go out and fix it for our customers." Fields said December sales were going well, but he declined to offer an estimate of this month's sales. Ford sales in November rose 6.4 percent from the previous November. Ford's 2012 sales through November were up 5 percent at 2.03 million new vehicles, for a 15.5 percent share of the U.S. auto market, down from 16.8 percent market share at the same time in 2011, when sales for Japanese rivals Toyota Motor Corp and Honda Motor Co were limited due to the earthquake and tsunami in March 2011.

Read More..