Senate Approves 'Fiscal Cliff' Deal, Sends to House

Two hours after a midnight deadline for action, the Senate passed legislation early New Year's Day to avert the so-called fiscal cliff with an overwhelming vote of 89-8.

Senate passage set the stage for a final showdown in the House, where a vote could come as early as today.

"While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay," President Obama said in a statement shortly after the vote.

"There's more work to do to reduce our deficits, and I'm willing to do it. But tonight's agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans."

The bill extends Bush-era tax cuts permanently for individuals making less than $400,000 per year and couples making less than $450,000 but allows the top marginal tax rate on incomes above those levels to rise to 39.6 percent.

Capital gains taxes would rise to 20 percent from 15 percent.

The measure would raise the estate tax from 35 to 40 percent for estates larger than $5 million, prevent the alternative minimum tax from hammering millions of middle-class workers and extend unemployment benefits for one year.

'Fiscal Cliff': Lawmakers Scramble for Last-Minute Deal Watch Video

Lawmakers also decided at the last minute to use the measure to prevent a $900 pay raise for each member of Congress due to take effect this spring.

The steep "sequester" budget cuts scheduled to go into effect with the New Year -- a $1.2 trillion hit to defense and domestic programs -- would be postponed for two months.

"I've said all along our most important priority is protecting middle-class Americans, this legislation does that," Senate Majority Leader Harry Reid, D-Nev., said early this morning prior to the vote.

The deal at hand does little to address the nation's long-term debt woes, however, and does not entirely solve the problem of the "fiscal cliff."

Indeed, the last-minute compromise -- far short from a so-called grand bargain on deficit reduction -- could set up a new showdown on the same spending cuts in two months amplified by a brewing fight on how to raise the debt ceiling beyond $16.4 trillion. That new fiscal battle has the potential to eclipse the "fiscal cliff" in short order.

Reid said he is "disappointed" they were unable to achieve a broader deal but that the compromise was necessary.

"We tried," he said. "If we did nothing, the threat of a recession is very real."

Speaking after Reid, Senate Minority Leader Mitch McConnell, R-Ky., called the deal an "imperfect solution" and noted this should not be the model on how things get done in the Senate.

McConnell also thanked Vice President Joe Biden, who visited Capitol Hill late Monday night and brokered the deal with Senate Republicans.

The measure must now move to the Republican-led House.

Five Senate Republicans and three Democrats voted against the plan, but the large margin of passage was seen as boosting the bill's prospects in the House, even though fiscal conservatives were poised to vehemently oppose the deal when it comes to the floor for a vote.

House Speaker John Boehner of Ohio said the House would not vote on any Senate-passed measure "until House members, and the American people, have been able to review" it.

Read More..

Senate report faults State Department, intelligence on Benghazi

WASHINGTON (Reuters) - The State Department's decision to keep the U.S. mission in Benghazi open despite inadequate security and increasingly dangerous threat assessments before it was attacked in September was a "grievous mistake," a Senate report said on Monday.

The Senate Homeland Security Committee's report about the September 11 attacks on the U.S. mission and a nearby annex, which killed four Americans, including the U.S. ambassador to Libya, faulted intelligence agencies for not having enough focus on Libyan extremists. It also faulted the State Department for waiting for specific warnings instead of acting on security.

The assessment follows a scathing report by an independent State Department accountability review board that resulted in a top security official and three others at the department stepping down.

The attack, in which U.S. Ambassador Christopher Stevens died, has put diplomatic security practices at posts in insecure areas under scrutiny and raised questions about whether intelligence on terrorism in the region was adequate.

The Senate report said the lack of specific intelligence of an imminent threat in Benghazi "may reflect a failure" in the intelligence community's focus on terrorist groups that have weak or no operational ties to al Qaeda and its affiliates.

"With Osama bin Laden dead and core al Qaeda weakened, a new collection of violent Islamist extremist organizations and cells have emerged in the last two to three years," the report said. That trend has been seen in the "Arab Spring" countries undergoing political transition or military conflict, it said.

The report recommended that U.S. intelligence agencies "broaden and deepen their focus in Libya and beyond, on nascent violent Islamist extremist groups in the region that lack strong operational ties to core al Qaeda or its main affiliate groups."

Neither the Senate report nor the unclassified accountability review board report pinned blame for the Benghazi attack on a specific group. The FBI is investigating who was behind the assaults.

President Barack Obama, in an interview on NBC's "Meet the Press" on Sunday, said the United States had some "very good leads" about who carried out the attacks. He did not provide any details.

The Senate committee report said the State Department should not have waited for specific warnings before acting on improving security in Benghazi.

It also said that it was widely known that the post-revolution Libyan government was "incapable of performing its duty to protect U.S. diplomatic facilities and personnel," but the State Department failed to take adequate steps to fill the security gap.

"Despite the inability of the Libyan government to fulfill its duties to secure the facility, the increasingly dangerous threat assessments, and a particularly vulnerable facility, the Department of State officials did not conclude the facility in Benghazi should be closed or temporarily shut down," the report said. "That was a grievous mistake."

(Editing by Warren Strobel and David Brunnstrom)

Read More..

HTC hopes to get ahead of competition in 2013

TAIPEI: Taiwan's economy has been one of the worst performing economies in Asia this year.

A decline in exports has slowed its full year economic growth to one per cent.

2012 was a tough year for Taiwan's technology industry, especially for smartphone maker HTC, which lost much of its global market to rivals Apple and Samsung.

Its falling sales had not only hurt HTC's bottom-line, but also dragged Taiwan's exports into negative growth.

HTC is stepping up efforts to woo consumers. It hopes to turn its fortune around with new gadgets.

"Our storage capacity for HTC One X has increased to 64GB from the previous 32GB. Plus, its battery life is longer by up to 37 per cent," said Eric Chen, HTC Taiwan's marketing director on its HTC One X handset.

As Asia's second largest handset maker, HTC saw its sales falling some 40 per cent this year.

Competition from Apple and Samsung halved its global market share to 4 per cent.

This took a toll on Taiwan's export growth, of which a quarter came from HTC.

Sam Shen, Market Intelligence and Consulting Institute director said: "HTC's shipments last year exceeded 53 million units. This year could shrink to some 40 million units. So the decline stood out in the overall export figures."

The island's exports in 2012 are likely to contract by more than 2 per cent, to their lowest level in three years.

But Taiwan's market intelligence agency believes the worst is over for HTC.

Mr Shen said: "With the continuing advancement of smartphones and their key components, there's going to be greater demand from the emerging economies. Overall, the market will remain competitive, but demand will be high."

Global shipments for smartphones are expected to grow by more than 20 per cent in 2013.

HTC is fighting back by expanding its presence in China, the fastest growing market in the world. Still, it could be a rough road ahead for the company.

"On the high-end smartphones, HTC is competing against Samsung and Apple. And on the low-end handsets, HTC is up against China's Huawei Technologies and ZTE. So it's going to be tough," said Masson Li, Taishin Securities Investment Advisory's co-vice president.

Mr Li added: "Actually the lines between smartphones and tablets are blurring. So more tablet makers may want to get a piece of the smartphone market."

While it may take a while for HTC to get back on its feet, Taiwan can still count on tablets for support.

Currently, more than 80 per cent of tablets in the world are made by Taiwanese firms.

According to IDC, global shipments for tablets are estimated to soar 40 per cent in the coming year.

If the global market regains momentum as expected, Taiwan's economic growth could exceed 3 per cent in 2013.

- CNA/xq

Read More..

Microsoft offers free month for Xbox Live users hit by outage

Xbox Live members affected by a recent outage of the Cloud Saved Games feature will be treated to an additional month of membership on the house.

Xbox Live's Cloud Saved Games lets members store their saved games online so they can play a game on a different console and pick up where they left off. An outage that hit
Xbox Live on Friday also took the Saved Game feature offline, according to gaming blog site Joystiq.

Microsoft apparently spent most of the weekend trying to resolve the problem. And as of early Monday, all issues had been fixed, Microsoft's Major Nelson noted today.

To assuage all affected Xbox Live users, Microsoft will credit them a free month of membership, without having to ask for it, Major Nelson added.

We want to thank all of our Xbox Live members impacted by the Cloud Saved Games service issue for your patience and understanding. It took longer than we expected to get back to full performance as we needed to ensure the integrity of everyone's game saves. Whether you couldn't access your game saves for a couple of hours or a couple of days, we sincerely apologize for the delay and inconvenience. We will be automatically applying a one-month extension to the Xbox Live Gold memberships of everyone who was impacted. We can assure you we'll also be doing a thorough post mortem to help prevent this from happening again.

Read More..

Pregnant U.S. woman missing in Afghanistan

KABUL The father of a pregnant American woman missing in Afghanistan has broken his silence over her disappearance to make a desperate plea for her safe return.

James Coleman, father of 27-year-old Caitlan Coleman, told The Associated Press his daughter was traveling with her Canadian husband when she vanished in early October. The last communication came from Caitlan's husband, Josh, who said he was in an Internet cafe on Oct. 8, in what he described as an "unsafe" part of Afghanistan. Caitlin was due to give birth in January.

An Afghan official has claimed the couple was kidnapped in Wardak province, west of the capital Kabul. So far, however, there has been no clear evidence they were abducted. Many insurgent groups operate in the area, but none have claimed responsibility for their disappearance, or demanded a ransom.

"I'm not sure whether they have been kidnapped by the Taliban or not," Taliban spokesman Zabihullah Mujahid told CBS News on Monday. "We are still investigating."

The U.S. Embassy in Kabul would only confirm that it was in contact with Coleman's family and was "coordinating closely with the Canadian authorities."

"Due to privacy considerations we cannot provide additional information about the case," embassy spokesman David Snepp told CBS News in a written statement.

A spokesperson for the governor of Wardak province, Shahidulla Shahid, was also unable to shed much light on the couple's fate.

"We are aware that an American woman and her husband have disappeared," he told CBS News, "but our investigation has found no lead in the case."

James Coleman was at pains to even explain why his daughter was in the war-torn country to begin with. He described her to the AP as "naive" and "adventuresome," and suggested she and Josh might have been looking for an opportunity to start working for an aid agency.

Since Caitlan's disappearance, the family has become increasingly concerned about her health, as she needs regular medical attention for a liver condition.

"Our goal is to get them back safely and healthily," he said. "I don't know what kind of care they're getting or not getting. We're just an average family and we don't have good connections with anybody and we don't have a lot of money."

The couple started traveling last July, passing through Russia, Kazakhstan and Tajikistan before entering Afghanistan.

The country is generally deemed unsafe for tourists and the area where they vanished is particularly dangerous for foreigners. Last year a German tourist was killed while traveling through central Afghanistan and a Canadian tourist was kidnapped not far from where Caitlan and her husband were last heard from.

Caitlan's father said the couple liked to travel primarily in small villages, getting to know locals along the way, and had said they were "heading into the mountains" before they disappeared.

Had they done so, they would have faced danger not only from Taliban groups and criminal gangs, but also from the elements. Temperatures in Afghanistan have consistently dropped below freezing in recent weeks, and conditions in the mountains are particularly harsh at this time of year.

Caitlan's father is holding out hope for his daughter's safe return.

"We appeal to whoever is caring for her to show compassion and allow Caity, Josh and our unborn grandbaby to come home," he told the AP.

Read More..

Time's Up: Sides Closing In on 'Fiscal Cliff' Deal

Congressional and White House negotiators are closing in on a deal to avert across-the-board tax hikes and spending cuts that take effect at midnight, as the nation teeters on the edge of the so-called fiscal cliff.

An emerging tentative agreement would extend current tax rates for households making $450,000 or less; extend the estate tax at its current level of 35 percent for estates larger than $5 million; and prevent the Alternative Minimum Tax from hammering millions of middle-class workers, sources said.

The deal would also extend unemployment benefits set to expire Tuesday and avert a steep cut to Medicare payments for doctors.

Both sides also seem willing to delay by three months automatic spending cuts to defense and domestic programs, the sources said, setting the stage for continued fiscal debate in the next few months tied to the debt ceiling.

Vice President Joe Biden and Senate Minority Leader Mitch McConnell, R-Ky., are leading the negotiations, sources said, holding several "good" conversations late into Sunday night and continuing a dialogue early this morning.

They are trying to broker an elusive compromise on taxes and spending that can win the support of bipartisan majorities in the Senate and House.

Even if a deal is reached between Biden and McConnell, members in both chambers would still need to review it and vote on it later today.

Failure of Congress to act on a tax measure by Tuesday morning would trigger income tax hikes on all Americans. The average family would pay an extra $3,446 in 2013 under the higher rates, according to the Tax Policy Center.

Regardless of the "cliff," virtually all workers are due to see less in their paychecks starting in January when the temporary 2 percent payroll tax cut will expire.

More than $1 trillion in automatic spending cuts to defense and domestic programs will also begin to take effect later this week unless Congress delays or replaces them.

"It is absolutely inexcusable that all of us find ourselves in this place at this time," Sen. Joe Manchin, D-W.Va., said Sunday night on the Senate floor.

"Something has gone terribly wrong when the biggest threat to our American economy is our American Congress," he said, echoing a frustration shared by many Americans.

Republican and Democratic Senate leaders wrangled all weekend over the outlines of a deal, but those talks eventually hit a brick wall on GOP insistence that Social Security savings be included in a deal.

"I want everyone to know I'm willing to get this done, but I need a dance partner," McConnell said Sunday, noting that he had directly reached out to Biden to break the impasse.

As part of any deficit reduction deal, the White House wants to raise income tax rates on people making more than $250,000 a year, a threshold on which President Obama campaigned for re-election.

Republicans, caving on outright opposition to any tax increases, want a higher income threshold for the tax hike of around $450,000, sources said. They also want to prevent the estate tax from rising above its current 35 percent rate on estates of $5.1 million or more.

"There is still significant distance between the two sides, but negotiations continue," Senate Majority Leader Harry Reid of Nevada said Sunday evening. "There is still time to reach an agreement, and we intend to continue negotiations."

Both sides say the cost of failure is high.

"If we are not able to reach an agreement, it will be dire," Sen. Jon Kyl, R-Ariz., said Sunday on ABC's "This Week." "Probably at least another million jobs lost, an unemployment rate over 9 percent, and putting us back into recession."

Read More..

Body of India rape victim cremated in New Delhi

NEW DELHI (Reuters) - The body of a woman, whose gang rape provoked protests and rare national debate about violence against women in India, arrived back in New Delhi on Sunday and was cremated at a private ceremony.

Scuffles broke out in central Delhi between police and protesters who say the government is doing too little to protect women. But the 2,000-strong rally was confined to a single area, unlike last week when protests raged up throughout the capital.

Riot police manned barricades along streets leading to India Gate war memorial - a focal point for demonstrators - and, at another gathering point - the centuries-old Jantar Mantar - protesters held banners reading "We want justice!" and "Capital punishment".

Most sex crimes in India go unreported, many offenders go unpunished, and the wheels of justice turn slowly, according to social activists, who say that successive governments have done little to ensure the safety of women.

The unidentified 23-year-old victim of the December 16 gang rape died of her injuries on Saturday, prompting promises of action from a government that has struggled to respond to public outrage.

The medical student had suffered brain injuries and massive internal injuries in the attack and died in hospital in Singapore where she had been taken for treatment.

She and a male friend had been returning home from the cinema, media reports say, when six men on a bus beat them with metal rods and repeatedly raped the woman. The friend survived.

New Delhi has the highest number of sex crimes among India's major cities, with a rape reported on average every 18 hours, police figures show. Reported rape cases rose by nearly 17 percent between 2007 and 2011, according to government data.

Six suspects were charged with murder after her death and face the death penalty if convicted.

In Kolkata, one of India's four biggest cities, police said a man reported that his mother had been gang-raped and killed by a group of six men in a small town near the city on Saturday.

She was killed on her way home with her husband, a senior official said, and the attackers had thrown acid at the husband, raped and killed her, and dumped her body in a roadside pond.

Police declined to give any further details. One officer told Reuters no criminal investigation had yet been launched.

"MISOGYNY"

The leader of India's ruling Congress party, Sonia Gandhi, was seen arriving at the airport when the plane carrying the woman's body from Singapore landed and Prime Minister Mannmohan Singh's convoy was also there.

A Reuters correspondent saw family members who had been with her in Singapore take her body from the airport to their Delhi home in an ambulance with a police escort.

Her body was then taken to a crematorium and cremated. Media were kept away but a Reuters witness saw the woman's family, New Delhi's chief minister, Sheila Dikshit, and the junior home minister, R P N Singh, coming out of the crematorium.

The outcry over the attack caught the government off guard. It took a week for the prime minister to make a statement, infuriating many protesters. Last weekend they fought pitched battles with police.

Issues such as rape, dowry-related deaths and female infanticide rarely enter mainstream political discourse.

Analysts say the death of the woman dubbed "Amanat", an Urdu word meaning "treasure", by some Indian media could change that, though it is too early to say whether the protesters can sustain their momentum through to national elections due in 2014.

U.N. Secretary General Ban Ki-Moon added his voice to those demanding change, calling for "further steps and reforms to deter such crimes and bring perpetrators to justice".

Commentators and sociologists say the incident earlier this month has tapped into a deep well of frustration many Indians feel over what they see as weak governance and poor leadership on social issues.

Newspapers raised doubts about the commitment of both male politicians and the police to protecting women.

"Would the Indian political system and class have been so indifferent to the problem of sexual violence if half or even one-third of all legislators were women?" the Hindu newspaper asked.

The Indian Express said it was more complicated than realizing that the police force was understaffed and underpaid.

"It is geared towards dominating citizens rather than working for them, not to mention being open to influential interests," the newspaper said. "It reflects the misogyny around us, rather than actively fighting for the rights of citizens who happen to be female."

(Additional reporting by Ross Colvin and Diksha Madhokin New Delhi and Sujoy Dhar in Kolkata; Editing by Louise Ireland)

Read More..

Chris Brown arrives with Rihanna for Africa's Kora Awards

ABIDJAN: US rapper Chris Brown arrived with singer Rihanna in the Ivory Coast city Abidjan on Sunday, when he was due to perform at an African music awards show.

Brown was billed as the star attraction at the glitzy Kora Awards, dubbed the "African Grammys", that recognise musical achievements from around the continent.

The event was initially set to take place on Saturday, but was delayed at the last minute. Organiser Ernest Adjovi initially blamed the delay on Brown missing his flight, but later said heavy rains and other logistical hiccups were behind the postponement.

R&B star Brown landed overnight in Abidjan, the Ivorian economic capital. Rihanna, who hails from Barbados, was by his side, wearing dark glasses.

The pair have a tumultuous history, and celebrity watchers obsessed about whether they are an item again after Brown admitted assaulting Rihanna in a case dating back to the 2009 Grammy Awards in Los Angeles.

Past Kora ceremonies have been attended by South African anti-apartheid hero Nelson Mandela and the late "King of Pop" Michael Jackson.

Brown, whom fans call Breezy, was also slotted to perform at a "Peace for Africa" concert at a stadium in Abidjan on Sunday afternoon.

Artists including the Nigerian duo P-Square, winner of the last top Kora prize in Burkina Faso capital Ouagadougou in 2010, will also take part in that event.

The Kora Awards were due to start at 8:30 pm (2030 GMT) at a luxury hotel.

For Ivory Coast, which is still recovering from four months of post-election violence that ended in April 2011 after claiming some 3,000 lives, the event signals a return to normalcy.

But the awards have drawn fire over the price of admission, with tickets costing one million CFA francs (US$2,000) for a seat in the luxury hotel for the ceremony.

Such a sum is far from the reach of this poor west African country, the world's top cocoa producer.

Brown was sentenced to five years probation, a year-long domestic violence programme and 180 days of community labour after pleading guilty to assaulting Rihanna on the eve of the Grammy Awards in Los Angeles in 2009.

- AFP/xq

Read More..

Windows 8 wrestles with PC's legacy

I spend precious little time in Metro when using a traditional laptop.

(Credit:
Microsoft)

I'm by no means the first one to say this but
Windows 8 and older PCs make an odd couple.

But let me back up for a second. Before the release of Windows 8 on October 26, I tested Windows 8 on
tablets only, such as the Intel-based Samsung slate that Microsoft sold in its stores. And I was impressed with Metro.

That was then. Windows 8 Pro 64-bit is now installed on my Dell Adamo laptop. And I rarely venture into the Metro UI unless if I'm forced to.

Of course if you're one of the relative few who have a tablet like the Samsung slate or Microsoft's Surface or a touch-screen laptop like Acer's Aspire S7, yeah, then Metro is front and center, as it should be.

But on a traditional laptop it's problematic. That's why Apple, probably the biggest single force behind the rise of the touch interface, hasn't done something similar with its OSes.

Making iOS the launch point and default interface on Macs would not go over well, Steve Job's edict nixing the idea of touch on laptops notwithstanding.

So, Microsoft is going where Apple won't. Intel -- still Microsoft's single most important hardware partner -- is going there too, by the way. The chipmaker said recently that it has chosen Windows 8 "as the standard operating system for Ultrabooks and tablets in our enterprise environment."

But I don't think -- despite Microsoft's upbeat announcement about Windows 8 licenses -- the hundreds of millions of users out there with plain old PCs will warm to the concept of a touch-based launch UI.

Acer's president, Jim Wong, stated this concern rather bluntly to Digitimes this week. The Windows 8 interface could "dramatically delay adoption by consumers," he said.

I'll expand on that by saying that until touch-based laptops and hybrids are both plentiful and cheap, Windows 8 may not gain much traction. And that may take a while.

Let me close on a positive note, though. I like Windows 8. It's faster than
Windows 7 on my Dell and more stable. That's good enough for me.

And Microsoft should spend more time pitching these straightforward Windows 8 merits until touch becomes mainstream.

64-bit Windows 8 Pro on my Dell Adamo.

(Credit:
Brooke Crothers)

Read More..

Fifth victim of Russia plane crash dies

Russian police investigators and emergency services teams work at the Tu-204 jet crash site near the Vnukovo airport outside Moscow on December 29, 2012. Four people were killed and four were injured when a Russian-made airliner overshot a runway on landing at a Moscow airport and crashed onto a nearby highway, officials said. / KIRILL KUDRYAVTSEV/AFP/Getty Images

MOSCOW Investigators on Sunday examined flight recorders and other evidence to try to determine the cause of the airliner crash in Moscow that killed five people, an official said.

14 Photos

Plane crash in Moscow kills 4

The Tu-204 belonging to Russian airline Red Wings was carrying eight people, all of them crew members, when it careered off the runway Saturday while landing at Moscow's Vnukovo Airport.

It went partly into an adjacent highway, broke into pieces and caught fire.

Four people were pronounced dead soon after the crash and the airline said on its Twitter account that a fifth, a flight attendant, died Sunday. Those who died Saturday were the pilot, co-pilot, flight engineer and another attendant, Red Wings said.

The survivors were reported in critical or serious condition in Moscow hospitals.

Vladimir Markin, a spokesman for Russia's main investigative agency, was quoted by Russian news agencies saying the data recorders were being examined, along with fuel samples.

In addition, he said flight documents for the plane have been taken from the airline for examination.

Read More..