US Republicans Hold Final Debate before Iowa Caucus
U.S. Republican presidential hopefuls debated Thursday in the politically influential midwestern state of Iowa, where the national nominating process begins in less than three weeks.
Republican contenders used much of the two-hour debate to criticize Newt Gingrich, who has emerged as the front-runner heading into the final stretch of the primary campaign.
The former speaker of the House of Representatives defended his recent involvement with disgraced mortgage giant Freddie Mac. Gingrich has admitted to receiving $1.6 million from the government-backed company, but insists he did no political lobbying for them.
Former Massachusetts Governor Mitt Romney, an early favorite in the race, focused much of his attention on President Barack Obama. Romney accused Mr. Obama of having a foreign policy of appeasement, and criticized him for a weak response in trying to retrieve a drone that recently crashed in Iran.
Meanwhile, Texas Congressman Ron Paul, who has done well in recent Iowa opinion polls, used the debate to defend his controversial views on foreign policy. Paul, who has been deeply critical of U.S. military efforts, referred to the recently ended war in Iraq as “useless.”
Also participating in the debate were Texas Governor Rick Perry, Minnesota Congresswoman Michele Bachmann, former Pennsylvania Senator Rick Santorum and former Utah Governor Jon Huntsman, once Mr. Obama's ambassador to China.
It was the final debate before the nominating process begins with the Iowa caucuses on January 3.
This week, a Wall Street Journal/NBC News survey of likely Republican voters put Gingrich 17 points ahead of Romney.
Separately, a poll released Wednesday showed that negative views of Mr. Obama have hit an all-time high. But the ABC News/Washington Post poll also found that Mr. Obama is viewed more positively than Gingrich.
Gingrich's unfavorable rating was 48 percent, but his favorable rating was 13 points lower than Mr. Obama's at 35 percent.
ICC: Gadhafi’s Death May Be War Crime
The International Criminal Court's chief prosecutor says there are “serious suspicions” that the death of Libyan leader Moammar Gadhafi was a war crime.
Luis Moreno-Ocampo made the comments Thursday at a press briefing at the United Nations. Moreno-Ocampo said the ICC is asking Libya's interim government how it plans to investigate alleged war crimes, including those of revolutionary forces.
“I think the way in which Mr. Gadhafi was killed creates suspicions of war crimes and I think that a very important issue.”
Gadhafi was captured and killed in October in unclear circumstances. Videos and witness accounts indicate he was alive after the capture, but he was later seen bloody and beaten shortly before he died.
Libya's National Transitional Council leaders have been under intense pressure from Western allies to investigate the circumstances of Gadhafi's death.
Moreno-Ocampo says the ICC is also working with the NTC on the case of Mr. Gadhafi's son Seif al-Islam Gadhafi, as well as Libya's former intelligence chief, Abdullah al-Senoussi, who were both captured and face charges for their role in the uprisings.
Seif Gadhafi is the custody of Libyan authorities, and the NTC says it will try him at home.
The ICC wants to ensure the interim government is capable of giving Seif Gadhafi a fair trial. ICC judges have asked the NTC to inform them of their plans before January 10. The judges will decide where Seif Gadhafi will be tried if the Libyan government tries to challenge the ICC's jurisdiction.
The death of Gadhafi and the Seif Gadhafi's trial are part of a broader ICC probe into alleged war crimes committed by pro-Gadhafi forces, revolutionary fighters and NATO.
Lawmakers Agree on $1 Trillion Deal to Avert Shutdown
U.S. lawmakers say they have reached deal to fund the federal government through the end of the fiscal year, just a day before parts of the government would have been forced to stop operating.
Lawmakers announced the $1 trillion deal late Thursday to fund government operations for the rest of the 2012 fiscal year. But negotiators are still working on a deal to extend a payroll tax cut that President Barack Obama said will keep 160 million working Americans from seeing a tax increase on January 1.
At issue is how to make up for the shortfall created by that tax cut. Democrats have argued for an increase to a tax on people who earn $1 million or more, but Republicans refused to allow any tax increases. Sources Thursday said the new deal will not include the so-called “millionaire's tax.”
The top Democrat in the Senate, Harry Reid, said negotiators were working on a two-month extension as a back up plan, in case lawmakers were unable to agree on a year-long plan.
Both the Senate and the House of Representatives must still vote on the budget bill Friday, before the current stopgap funding for the federal government runs out at midnight.
U.S. President Barack Obama Thursday had pressed lawmakers to extend the payroll tax cut, saying the federal government should not shut down because Congress cannot agree on a tax issue.
In August, wrangling over budget cuts and taxes led the U.S. government to come within hours of being unable to pay its debts and the country's credit rating was downgraded for the first time in history.
The government also came within hours of shutting down because of stalled budget negotiations in April.
Lagarde: No country's economy immune from rising risks
IMF head Christine Lagarde has said the world economic outlook is "gloomy" and no country is immune from rising risks.
She said all nations, starting with Europe, needed to head off a crisis with risks of a global depression.
"There is no economy in the world immune from the crisis that we not only see unfolding but escalating," she said.
"It is going to be hopefully resolved by all countries, all regions actually taking action."
Meanwhile, ratings agency Standard and Poor's downgraded 10 Spanish banks by applying new ratings criteria.
And France's official statistics agency, INSEE, said that it expects the Europe's second-largest economy to fall into recession in the final three months of this year and the first quarter of 2012.
France, Spain and Italy have been facing rising borrowing costs. Many investors fear one will be the next eurozone member to need a bailout.
'Require efforts'
Speaking at the US State Department in Washington, she said global economic leaders now needed to take a rounded approach towards addressing monetary weaknesses, such as those underscored by the current eurozone debt crisis.
"It is going to require efforts, it is going to require adjustment, and clearly it is going to have to start from the core of the crisis at the moment, which is obviously the European countries and in particular the countries of the eurozone."
Ms Lagarde mentioned economic bright spots in Asia and Latin America, which she said had taken, with IMF help, steps during crises in the 1980s and 1990s to address weaknesses in their banking systems and their financial frameworks.
"All those challenges that they faced in the days of the Asian crisis, of the Latin American crisis, have now served them well," Ms Lagarde said.
On Thursday, a closely-watched survey suggested the downturn in the 17 economies that share the euro had eased slightly in December.
The composite survey of thousands of firms by Markit showed a continued contraction - but at a slower rate than in November.
ECB chief Draghi: Governments must save themselves
European Central Bank president Mario Draghi says there’s “no external savior” for heavily indebted governments in the 17-nation eurozone and gave no indication the bank is ready to step in and support their finances. Investors had hoped the ECB would increase its support for financially weak countries like Italy with bigger purchases of their government bonds once European leaders had agreed to tighten controls of national budgets.
So far, the ECB has made some purchases but kept them limited, stressing that governments must not rely on such help. Draghi said governments had reached a “breakthrough for clear fiscal rules” at last week’s summit, where 26 of 27 EU leaders agreed to seek a treaty toughening the enforcement of rules against excessive national debt and deficits.
But he offered no support for the notion that the ECB might now increase its bond purchases. Instead, governments need to take the tough steps to balance budgets and reform economies to promote growth. “I will never be tired of saying that the first response ought to emanate from the country,” Draghi said Thursday at a speech in Berlin. “There is no external savior for a country that doesn’t want to save itself.”
As a “firewall” to calm markets in the meantime, Draghi said, the EU has its newly strengthened bailout fund. Draghi stressed that the purchases were “neither eternal nor infinite.” The purchases of the government bonds of Italy or Spain drive up their prices and push down their yields, or interest rates, which move in the opposite direction. The lower yields mean better terms when Italy or Spain sells bonds directly to investors at auctions.
“The crisis has not ended yet. It is now important not to lose momentum and to swiftly implement all those decisions that have been taken to put the euro area economy back on course,” he said. Investors were clearly disappointed with the EU summit’s deal, with many economists noting it doesn’t address short-term fears about whether governments will be able to borrow at affordable interest rates and pay off maturing debt in the next few months. The euro has tumbled below US$1.30 for the first time in 11 months, stocks have dropped, and the bond yields of Italy — considered the next weakest link in Europe’s debt crisis — have edged up. On Thursday, markets were steady after Draghi’s comments, suggesting they had prepared for the ECB to shy away from more aggressive action.
Draghi defended the EU summit’s deal, saying it had drawn “comments that were more negative than it deserved.” He rejected any idea that the ECB should engage in so-called quantitative easing to support growth, as the US Federal Reserve or Bank of England have done, although Draghi mentioned neither country by name. Quantitative easing involves creating new money through purchases of securities from banks. More money in the economy can spur growth when an economy is slumping, but can cause inflation when and if growth picks up.
Draghi said the economies of countries that have done quantitative easing show no “stellar performances at all” when it comes to “unemployment, growth and especially inflation.” Jens Weidmann, Germany’s top central banker, has vociferously opposed more aggressive action from the ECB, saying a bigger bond-buying program would violate the ECB’s mandate to fight inflation and could compromise its legal independence. While the Bundesbank has only one vote at the ECB, analysts say vocal public opposition from Weidmann would be a serious obstacle for any U-turn by the ECB on bond purchases, since it would undermine its communication on the topic.
His position also has considerable support among economists and politicians in Germany, the eurozone’s largest member. Meanwhile, the volatility in financial markets and the tighter credit conditions are hurting the real economy. Draghi acknowledged that planned austerity measures in the eurozone will lead to a brief contraction in economic growth. He added, however, that the return of investors’ trust and much-delayed economic reforms will mitigate the downturn.
Draghi stressed that the European Financial Stability Facility, the current EU bailout fund, would serve as the “firewall” against the crisis. Governments have agreed on ways to increase the fund’s lending power and are seeking outside investors such as countries in emerging markets to contribute to its lending power, so far without much progress. Economists say the EFSF remains too small to counter the crisis that has seen Greece, Ireland and Portugal seek bailouts from other eurozone governments and the International Monetary Fund.
The ECB has served as lender of last resort for the banking system when financial institutes cannot borrow elsewhere, even as it refuses to play that role for governments. Draghi noted the ECB is fighting to avoid a credit crunch by helping private-sector banks get more access to loans — from as short as overnight to as long as three years. It has also cut the requirement for reserves that must be kept on deposit with the ECB, freeing up capital for banks. He said the use of those facilities should not create a “stigma” for those banks. (AP)
Europe anxiety pushes oil prices lower
Oil prices continued to drop after Wednesday’s 5 per cent plunge, as Europe’s weakest economies failed to get more help from their central bank. Benchmark crude on yesterday fell 58 cents to US$94.37 per barrel in afternoon trading in New York. Similar concerns weighed on oil markets Wednesday, pushing the benchmark price to the lowest level since November 7.
Brent crude, which is used to price foreign oil that’s imported by many US refineries, lost 22 cents at US$104.03 a barrel in London. Investors had hoped that the European Central Bank would take a bigger role in aiding heavily indebted countries like Greece, Italy and Spain. But the ECB has given no indication that it will do so. Without more support those countries won’t be able to pay their bills without even greater spending cuts, analysts said. That will further reduce energy demand and slow imports of manufactured goods from the US, China and elsewhere.
Many traders thought the European financial crisis would be resolved by now. With the situation still in flux, they have decided to close out their positions and lock in whatever profits they’ve made before the end of the fiscal year, PFGBest analyst Phil Flynn said. “The market has come to the reality that the European situation won’t be tidied up before the end of the year,” Flynn said.
Oil prices fell despite a brighter outlook for the US economy and rising stock prices. The government said that applications for unemployment benefits fell last week to the lowest level since May 2008. While manufacturing output fell last month after six straight months of steady gains, a regional report yesterday showed manufacturing activity is rising this month in the Philadelphia area. The Energy Department said natural gas supplies dropped by 102 billion cubic feet last week. That was more than analysts expected. The country is still loaded with a surplus of gas, however, and storage levels are more than 10 per cent above the five-year average.
In other energy trading, heating oil rose 1 cent to US$2.8397 per gallon, and gasoline futures rose by less than a penny to US$2.5079 a gallon. Natural gas was flat at US$3.142 per 1,000 cubic feet. (AP)
Bears' Hurd arrested on federal drug charges following sting
Chicago Bears wide receiver Sam Hurd was locked up in federal custody Thursday as his stunned teammates learned he had been charged with trying to set up a drug-dealing network following his arrest with more than a pound of cocaine.
U.S. Magistrate Young Kim ordered Hurd held until at least Friday while prosecutors and defense attorneys work out bond details before he is sent to Texas to face charges.
The handcuffed Hurd declined to comment on the charges. Asked before the hearing if he was still a member of the Bears, he said: "As far as I know." He shook his head when asked if he had talked to anyone on the team.
"Sam intends to fight these charges, and we intend to defend him fully," said high-profile defense attorney David Kenner, one of Hurd's lawyers. "We have complete confidence in him."
Kenner told The Associated Press that he and partner Brett Greenfield had not evaluated all of the information in the case. But Kenner -- who successfully defended rapper Snoop Dogg against murder charges -- said he had other cases where the evidence appeared to be stacked against his client.
"They start off looking terrible, and then we end up with 'not guiltys,"' Kenner said.
Kenner and Greenfield said they expected Hurd to be released from custody Friday.
Hurd, 26, was arrested Wednesday night after meeting with an undercover agent at a Chicago restaurant, according to a criminal complaint that says the player was first identified as a potential drug dealer over the summer as the NFL lockout was coming to an end.
Hurd told the agent that he was interested in buying five to 10 kilograms of cocaine and 1,000 pounds of marijuana per week to distribute in the Chicago area, the complaint said. He allegedly said he and a co-conspirator already distribute about four kilos of cocaine every week, but their supplier couldn't keep up with his demands. A kilogram is about 2.2 pounds.
Hurd told the agent "his co-conspirator is in charge of doing the majority of the deals" while he focused on "higher-end deals," the complaint said.
He agreed to pay $25,000 for each kilogram of cocaine and $450 a pound for the marijuana, according to the charges, and then said he could pay for a kilo of cocaine after "he gets out of practice." He walked out of the restaurant with the package and was arrested.
The criminal complaint was filed in Texas, where the U.S. attorney said Hurd faces up to 40 years in prison and a $2 million fine if convicted of conspiracy to possess with the intent to distribute more than 500 grams of cocaine, or half a kilogram.
Hurd's agent, Ian Greengross, did not return messages seeking comment. The NFL said it was looking into the incident while the NFL Players Association declined to comment.
Coach Lovie Smith said the arrest was a disappointment and a "total surprise," adding that Hurd was still a member of the Bears for now.
"Sam wasn't in meetings this morning and that's how from there of course we started searching trying to find out why a player wouldn't be here," Smith said. "There was no tipoff, didn't know it was coming."
Smith said there was no reason to believe Hurd had problems when the Bears signed him before the season.
"No issues, no reason. I'm in shock over it. I never saw it coming," Smith said. "But just like I think I know most of you, you don't really know what people do once you're not with them. But I know that anyone we bring through here, we've had an extensive search to find out everything, if there is something out there, and that wasn't the case. There was nothing we knew about Sam."
Hurd, a San Antonio native who played college ball at Northern Illinois, spent five seasons with the Dallas Cowboys and is in his first stint with the Bears. He has contributed mostly on special teams, playing in 77 games overall with six starts and two career touchdowns. He has played in 12 games this year, catching eight passes for 109 yards.
The complaint says an informant tipped off authorities in Texas in July, leading to an investigation in which an unidentified acquaintance of Hurd's "negotiated" for approximately five kilograms of cocaine on the player's behalf. The acquaintance wanted to buy the drugs quickly to take it to a "northern destination that same day," the complaint said.
The Bears reached a three-year deal with Hurd this summer that was reportedly worth up to $5.15 million, including a $1.35 million signing bonus and base pay this season of $685,000.
Magic's Howard says trade request has not been withdrawn
Magic center Dwight Howard has made it a point to avoid social networking sites like Twitter and Facebook as talk continued to swirl this week about his request to be traded to another team.
But on Saturday fans will get their first opportunity in person to express how they feel about the All-Star's desires when the team holds an open scrimmage at the Amway Center.
It could be the first awkward reception the fan-favorite Howard has ever received in the year-old arena.
Howard said Thursday that his trade request hasn't been withdrawn; a day after Magic general manager Otis Smith shook off questions about what offers he'd received and said that trade discussions involving him "could go to the end of the season."
The team is off Friday, it's first break since training camp opened last week.
"There's no back and forth," Howard said. "It still stands and we know what's going on. I talked to Otis today. What we talked about is gonna stay between me and him."
Howard also brushed off a question about whether there needs to be any mending to their relationship going forward.
"Right now me and Otis are gonna continue to try to make this team better," he said. "And I'm gonna do my part on the court. That's the reason I'm here. To get our team better and to make myself a better leader for this team.
"And we're doing great. Practices are going great, guys are coming in and they're focused - nobody's playing around. We're having fun, but at the same time we're getting the job done...There's no need to talk about trades or what's on ESPN or in the newspaper. There's no need to bring it on the court."
The All-Star center is eligible to opt out of his current contract in July 2012. Smith has previously given Howard's agent, Dan Fegan, permission to discuss trades with Dallas, New Jersey and the Los Angeles Lakers.
Magic guard Chris Duhon said that for the veterans in the locker room, there hasn't been a lot of worry about whether they could wind up being traded as part of a deal for Howard.
"Everybody knows what what's going on and it's a part of our business," Duhon said. "You gotta be a professional. We're professional athletes. We know this thing's a business and there's gonna be changes in lineups every now and then. So you gotta do what you do as a pro and be prepared to play, prepared to practice every day and give your best effort. Whatever happens, you adjust to it and make the best out of it."
While Howard Watch is becoming a daily reality show, the Magic are slowly cobbling together their roster for their Christmas night season-opener at Oklahoma City.
Late Thursday afternoon the Magic announced the re-signing of free agent forward Earl Clark, who played 33 games with Orlando last season after coming over with Hedo Turkoglu and Jason Richardson in a trade with Phoenix.
The move came three days after a trade of Brandon Bass to Boston for Glen Davis was officially completed and Richardson, also a free agent, was re-signed.
Clark averaged just 11.9 minutes and 4.1 points per game after his arrival last December, but Van Gundy thinks he can add depth to the Magic's front court.
SI
Sir Viv critical of WICB’s treatment of Gayle
CHRIS Gayle can, for at least a few more days, rest easy – he still has at least one high-profile fan in the Caribbean.
Former West Indies captain, Sir Vivian Richards, has come forward in defence of the embattled Jamaican opener and has criticised the West Indies Cricket Board (WICB) for its handling of the protracted and still ongoing saga involving the two parties.
According to some sections of the Antiguan press, Richards was quoted as saying the WICB was “making Chris Gayle out to be a villain”.
Following a highly-publicised dispute with the WICB over comments he made to a Jamaican radio station earlier this year, Gayle has not played for the West Indies since the 2011 World Cup on the Asian subcontinent.
To date, efforts to resolve the matter have proven futile, with the WICB demanding an apology from the enigmatic opener and the former captain openly refusing to change his stance.
According to the “Master Blaster”, the WICB itself has not been living up to its responsibilities.
“I would like to believe that at present, the West Indies Cricket Board is basically making Chris Gayle out to be this villain ... about apologising and what he has to do and the criteria that is required for him to be part of the unit again. I just think it’s a little farfetched in my opinion,” said Richards, a former captain who played 121 Tests and compiled 8 540 runs for the West Indies between 1974 and 1991.
“Let me also take this opportunity to say that I am not in Chris Gayle’s corner (with) most of the decisions he makes. But I think with this issue, it is potent enough that I feel he needs some support where these matters are concerned”.
Richards went on to say that he found it laughable that the WICB was demanding an apology from Gayle. He also said it was time that someone took the WICB to task on the issue.
“At some point, somebody has got to take these guys on. They have been totally dictatorial in my opinion; having people in their corner who are just corn-fed, the best so-called fed chickens that you can find,” he said.
“So it is ludicrous for them now wanting Chris Gayle to come with some sort of an apology. He may or may not apologise. That’s his particular call. What I am saying is that how dare them (WICB), at this point, wanting so much from Chris when they have given so little”.
Richards, who also appeared in 187 ODIs amassing 6 721 runs, said the WICB had in the past set up a commission to look into the ways in which West Indies cricket could be improved, but to date, no findings had been released to the public.
He was speaking about what is commonly referred to as the, “Patterson Report”.
“One also has to remember that this very same board that is asking all these various things of Chris Gayle had set up a commission where they would have employed some of the best scholars in the region. It was a waste of time in my opinion because up to this day we have not heard anything about this commission. I guess it is a serious insult to the individuals who would have taken part,” said Richards.
Pressed if he could see an end to the stalemate between the WICB and Gayle, Richards was unable to answer.
He did say, however, that is was clearly evident that the left-handed batsman wanted to play for the regional squad. He also said his presence would bolster a rather weak West Indies team.
“Judging from what I would have seen, he clearly wants to be in the West Indies team. But sometimes you need to go through these periods of time where there are tribulations. I guess he realises this, and as he is getting older, he would like to make a contribution”.
St Kitts-Nevis projects positive economic growth in 2012
Minister of Finance, the Prime Minister Dr Denzil Douglas said that while growth will be flat for 2011, the economy could return to a positive growth path in 2012 when output is projected to expand by 1.5 percent.
He said the pattern is consistent with the trends observed in the OECS group.
“In 2010 the domestic economy contracted by 2.7 percent -- a 3 percent improvement over the 5.6 percent decline recorded in 2009. During this year, steady recovery was experienced by both the manufacturing and tourism sectors, which are projected to grow by 6 percent and 5.9 percent respectively. However, this will be insufficient to offset the effects of the slow recovery being experienced by the construction sector and distributive trades,” said Douglas, as he delivered the 2012 budget address in the National Assembly on Tuesday.
Summarizing the balance of payments account, which records all receipts and payments between the Federation and the rest of the world, Douglas noted that, in 2010, the current account deficit increased by 0.6 percent to $464.3 million or 25.5 percent of GDP at market prices.
“This marginal increase is mainly attributed to an increase in the net importation of goods and services by 9.3 percent to $486.9 million or 26.7 percent of GDP. The rise in net goods and services can be attributed to an increase in outflows for merchandise for the construction and manufacturing sectors and an upturn in activity in tourism. The services account surplus decreased by 31.6 percent to $59.3 million or 3.3 percent of GDP as a result of a decline of 4.4 percent in travel receipts and an expansion of the deficit for transportation of 24.8 percent due to an increase in global oil prices,” Douglas said.
He disclosed that the surplus on the capital and financial account declined by 5.6 percent to $471.0 million or 25.9 percent of GDP in 2010. Net foreign direct investment expanded significantly by 35.5 percent to $380.8 million or 20.9 percent of GDP when compared to 2009, which is attributed mainly to a 70.2 percent increase in land sales. However, this significant increase in direct investment inflows was insufficient to offset the current account deficit resulting in an overall deficit of $2.8 million or 0.2 percent of GDP,” said Douglas.