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Thursday, August 2, 2012 10:42 PM PDT

Today's Politics - Bloomberg News Headlines - Yahoo! News: Cash-strapped California cities back off asking voters to hike taxes Senate approves new ambassador to Afghanistan North Korea's Kim tells China, economy a priority Aerial bombardment kills 16 rebels in southern Syria China expresses regret over Annan's resignation Taxes again dog Romney on his return to U.S. campaign SEC closely reviewing Knight Capital trading glitch Burned by MF Global, futures watchdogs eye Knight Democratic group retracts prostitution claim against Sands CEO House to vote on Russia trade bill if Democrats support it: Cantor Justice Department: California should not let illegal immigrant practice law Congress halts posting of civilian, military officials' assets Second Air Force trainer guilty in sex scandal Frustrated Annan quits as Syria peace envoy RBS braced for questions on Libor involvement U.S. nuclear bomb facility shut after security breach Buenos Aires province devises its own Falklands ship ban Exclusive: Verizon Wireless spectrum deal in for tough remedy Chile rejigs criticized tax reform bill in Congress push Founder of modern Turkey Ataturk's daughter dies Syrian forces kill 50 in Hama clashes: residents Government bungled Solyndra decisions: Republican report Close call for three jets over Washington airport NYC cut pensions for police in military: lawsuit Iowa governor moves out of mansion because of black mold Obama: Penn State punishment "appropriate" in Sandusky scandal Yemen tribesmen release Italian officer: official Plug likely to be pulled on U.N. observers in Syria: France Mexican ex-governor tells U.S. judge he laundered drug money Brazil Supreme Court trial could tarnish Lula's legacy UAE emirate's ruler seeks to calm anger over arrests Senate panel passes tax bill in rare bipartisan show Will U.S. Olympic medalists get a tax break? Turkish soldier killed in clash with Kurdish rebels U.N. demands end of foreign support for Congo rebels Mortar shells kill 20 in Damascus Palestinian camp Back on U.S. soil, Romney looks to regain his footing Water Polo: Montenegrin PM cheers team in medal quest Timeline: Sudan and South Sudan could face sanctions Senator breaks with no tax pledge in hunt for budget deal Cash-strapped California cities back off asking voters to hike taxes Thu,2 Aug 2012 07:26 PM PDT Reuters - LOS ANGELES (Reuters) - Californian cities hobbled by crippling deficits are rushing to declare fiscal emergencies to help solve their money problems, yet they are backing away from the tax increases that such declarations make possible. Over the past six months, city councils in at least seven municipalities invoked a state law which allows them to put tax hikes on the ballot much more quickly in the event of a "fiscal emergency. ... Full Story Top Senate approves new ambassador to Afghanistan Thu,2 Aug 2012 07:14 PM PDT Reuters - WASHINGTON (Reuters) - The Senate on Thursday confirmed career diplomat James Cunningham as ambassador to Afghanistan, replacing Ryan Crocker, who stepped down because of ill health. Cunningham has been serving as deputy ambassador at the U.S. embassy in Kabul since June 2011. Earlier, he was the U.S. ambassador to Israel; he also held senior U.S. posts in Hong Kong, NATO and the United Nations. He was confirmed on a voice vote. Crocker said in May that he was leaving the demanding Kabul post for health reasons after a long career in Iraq, Afghanistan, Pakistan, Syria, Kuwait and Lebanon. ... Full Story Top North Korea's Kim tells China, economy a priority Thu,2 Aug 2012 06:44 PM PDT Reuters - BEIJING (Reuters) - North Korea's new young leader, Kim Jong-un, told a Chinese official that his government is focused on "developing the economy and improving people's livelihoods," China's official news agency reported late on Thursday. Kim's comments to the visiting Chinese official, Wang Jiarui, were the latest sign that the new young leader aims to tackle North Korea's decaying economy, which has been poorly managed under the military-first government system. ... Full Story Top Aerial bombardment kills 16 rebels in southern Syria Thu,2 Aug 2012 06:35 PM PDT Reuters - AMMAN (Reuters) - Syrian army helicopter bombardment killed 16 rebels from the same family in the southern Hauran Plain, a strategic region that links Damascus with Jordan, where fighting has intensified in the past several days, opposition sources said on Friday. The loss on the rebel side came after fighters attacked an army roadblock on Thursday near the town of Busra al-Harir and were pursued from the air, the sources said, adding that army artillery also started shelling the town. ... Full Story Top China expresses regret over Annan's resignation Thu,2 Aug 2012 06:25 PM PDT Reuters - BEIJING (Reuters) - China has expressed regret over former U.N. Secretary-General Kofi Annan's resignation as international peace envoy for Syria and stressed support for the United Nations playing an important role in resolving the Syrian crisis. Annan said he was quitting at the end of the month, frustrated by "finger-pointing" at the United Nations while the armed rebellion against President Bashar al-Assad becomes increasingly bloody. ... Full Story Top Taxes again dog Romney on his return to U.S. campaign Thu,2 Aug 2012 05:58 PM PDT Reuters - GOLDEN, Colo. (Reuters) - Questions about his personal taxes again dogged Republican presidential candidate Mitt Romney on Thursday, his first day back on the U.S. campaign trail after a rocky trip abroad. Romney promised to create 12 million jobs and ease the economic plight of middle-class Americans on a visit to swing-state Colorado, but he had to fend off an accusation by Senate Majority Leader Harry Reid that he may not have paid taxes for a decade-long period. "The word's out that he hasn't paid any taxes for 10 years," Reid said on the floor of the Senate. ... Full Story Top SEC closely reviewing Knight Capital trading glitch Thu,2 Aug 2012 05:57 PM PDT Reuters - WASHINGTON (Reuters) - U.S. securities regulators are looking into the events surrounding Knight Capital Group's trading glitch this week, which roiled markets and wiped out $440 million of the firm's capital. "We continue to closely review the events surrounding yesterday's trading and discuss those events with other regulators as well as Knight Capital Group," Securities and Exchange Commission spokesman John Nester said. "We also are considering what, if any, additional steps may be necessary, beyond the post-Flash Crash measures that limited the impact of yesterday's trading. ... Full Story Top Burned by MF Global, futures watchdogs eye Knight Thu,2 Aug 2012 05:57 PM PDT Reuters - CHICAGO/WASHINGTON (Reuters) - Knight Capital Group Inc's newly acquired futures brokerage came under stepped up regulatory scrutiny on Thursday after a $440 million trading loss wiped out much of the firm's capital, raising concern over the safety of its customer funds. Confidence in the futures industry's ability to safeguard customer funds has been shaken after two financially pressed futures brokers in less than a year have been accused of improperly raiding customer accounts for as much as a combined$1.8 billion, despite regulatory oversight. ... Full Story Top Democratic group retracts prostitution claim against Sands CEO Thu,2 Aug 2012 05:49 PM PDT Reuters - (Reuters) - The Democratic Congressional Campaign Committee retracted statements it made linking Las Vegas Sands Chief Executive Sheldon Adelson with funds it said came from "Chinese prostitution money" and that it said had been contributed to Republican congressional candidates. "In press statements issued on June 29 and July 2, 2012, the DCCC made unsubstantiated allegations that attacked Sheldon Adelson, a supporter of the opposing party," the Democratic committee said in a statement. "This was wrong. The statements were untrue and unfair, and we retract them. ... Full Story Top House to vote on Russia trade bill if Democrats support it: Cantor Thu,2 Aug 2012 05:31 PM PDT Reuters - WASHINGTON (Reuters) - House Majority Leader Eric Cantor said on Thursday that the House of Representatives will take up a bill to normalize trade relations with Russia this fall, if the Democratic-majority Senate and President Barack Obama "commit to support" passage before the end of September. The White House has called normalizing trade relations with Russia its top legislative trade priority this year. Republicans have complained that Obama has not done enough to whip up Democratic support for the effort. ... Full Story Top Justice Department: California should not let illegal immigrant practice law Thu,2 Aug 2012 04:38 PM PDT Reuters - LOS ANGELES (Reuters) - The Department of Justice told California's high court on Thursday that it should not allow an illegal immigrant to practice law in the state even though he passed the bar exam and has the backing of state officials. The amicus brief, filed after the California Supreme Court sought the Justice Department's guidance in the closely watched test case, was a blow against the efforts by Sergio Garcia, 35, to win his law license despite his immigration status. ... Full Story Top Congress halts posting of civilian, military officials' assets Thu,2 Aug 2012 04:36 PM PDT Reuters - WASHINGTON (Reuters) - In a last-minute act before skipping out on a five-week vacation, the Congress on Thursday temporarily spared thousands of top military officers and civilian government officials from having their financial assets publicly posted -- and exposed to hackers and spies. Had both the House and Senate not acted before leaving town, the financial disclosures for the military and executive branch officials from the Pentagon to the State and Treasury departments would have been posted to agency websites by August 31, thanks to Congress' own inadvertent handiwork. ... Full Story Top Second Air Force trainer guilty in sex scandal Thu,2 Aug 2012 04:35 PM PDT Reuters - SAN ANTONIO (Reuters) - A second Air Force trainer has been convicted in connection with the widening sexual misconduct scandal at Lackland Air Force Base in Texas. Technical Sergeant Christopher Smith, 33, was found guilty late Wednesday on charges of having unprofessional relationships with two female basic trainees and faces up to a year in prison. Seven Lackland training instructors have been charged with sexual misconduct at the Army's Ordnance Center and School in Aberdeen, Maryland, in the largest sex scandal to hit the U.S. military since the 1990s. ... Full Story Top Frustrated Annan quits as Syria peace envoy Thu,2 Aug 2012 04:20 PM PDT Reuters - UNITED NATIONS/ALEPPO, Syria (Reuters) - Former U.N. Secretary-General Kofi Annan is quitting as international peace envoy for Syria, frustrated by "finger-pointing" at the United Nations while the armed rebellion against President Bashar al-Assad becomes increasingly bloody. As battles raged on Thursday in Syria's second city, Aleppo, between rebel fighters and government forces using war planes and artillery, U.N. Secretary-General Ban Ki-moon announced in New York that Annan had said he would go at the end of the month. ... Full Story Top RBS braced for questions on Libor involvement Thu,2 Aug 2012 04:19 PM PDT Reuters - LONDON (Reuters) - British bank RBS faces questions over the extent of its involvement in a global interest rate rigging scandal when it publishes first half results on Friday that will detail the cost of a disastrous IT glitch and compensation for mis-selling. New details from court documents and sources suggest that groups of traders working at three major European banks, including RBS, were heavily involved in rigging global benchmark interest rates. ... Full Story Top U.S. nuclear bomb facility shut after security breach Thu,2 Aug 2012 03:50 PM PDT Reuters - WASHINGTON (Reuters) - The U.S. government's only facility for handling, processing and storing weapons-grade uranium has been temporarily shut after anti-nuclear activists, including an 82-year-old nun, breached security fences, government officials said on Thursday. WSI Oak Ridge, the contractor responsible for protecting the facility at Oak Ridge, Tennessee, is owned by the international security firm G4S, which was at the center of a dispute over security at the London Olympic Games. ... Full Story Top Buenos Aires province devises its own Falklands ship ban Thu,2 Aug 2012 03:48 PM PDT Reuters - BUENOS AIRES (Reuters) - Lawmakers in Buenos Aires province passed a bill on Thursday to prohibit ships involved in business activities off the disputed Falkland Islands from mooring at its ports, part of Argentina's drive to discourage oil exploration in the area. Argentina had already banned ships flying the Falklands flag from stopping at the country's ports. The regional Mercosur trade group backed the move. President Cristina Fernandez has launched a wide-ranging diplomatic offensive to assert Argentina's claims to the British-ruled islands 30 years after the Falklands war. ... Full Story Top Exclusive: Verizon Wireless spectrum deal in for tough remedy Thu,2 Aug 2012 03:45 PM PDT Reuters - WASHINGTON (Reuters) - Verizon Wireless may need to agree to tough conditions to win approval for its deals to buy spectrum from cable companies and market each others' products, according to three sources knowledgeable about the negotiations. The Justice Department and Federal Communications Commission are reviewing plans by Verizon Wireless, the biggest U.S. mobile provider, to buy spectrum from a consortium of cable providers, including Comcast and Time Warner Cable , for about $3.9 billion. The transactions were proposed in December. ... Full Story Top Chile rejigs criticized tax reform bill in Congress push Thu,2 Aug 2012 03:24 PM PDT Reuters - SANTIAGO (Reuters) - Chile's government on Thursday rejigged a sweeping tax reform bill aimed at helping fund an education overhaul, removing criticized benefits for higher earners as it seeks to help its passage through Congress ahead of key local elections. Conservative President Sebastian Pinera said the revamped bill would raise the tax take by around $1.2 billion in its first year, up from a previously anticipated annual $700 million to $1 billion in extra revenue. The changes also included a smaller than originally planned reduction in stamp duty on credit. ... Full Story Top Founder of modern Turkey Ataturk's daughter dies Thu,2 Aug 2012 03:21 PM PDT Reuters - ISTANBUL (Reuters) - The adopted daughter of Mustafa Kemal Ataturk, the founder of modern Turkey, was killed in a traffic accident, her son said on Turkish television on Thursday. Ulku Adatepe was 79. Adatepe died on Wednesday when she was thrown from a vehicle after the driver lost control of the car while driving on a motorway from Istanbul to the capital Ankara, the daily newspaper Milliyet reported. Adatepe's husband and the driver were hurt but survived the crash, which occurred in the northwest province of Sakarya. Her son Ahmet Dogancay confirmed the news on NTV television. ... Full Story Top Syrian forces kill 50 in Hama clashes: residents Thu,2 Aug 2012 03:20 PM PDT Reuters - BEIRUT (Reuters) - Syrian forces killed at least 50 people, among them 21 members of three families, during clashes with rebels in the central city of Hama, activists and residents said on Thursday. "During the clashes the army entered the neighborhood of Arbaeen and conducted raids, during which they killed members of three families," resident Abu Ammar told Reuters from the city. He said among the dead were 10 members of the Kanan family, eight from a family named Okda and three from the Saffaf family. ... Full Story Top Government bungled Solyndra decisions: Republican report Thu,2 Aug 2012 03:18 PM PDT Reuters - WASHINGTON (Reuters) - The Obama administration ignored internal warnings to cut its losses on Solyndra and instead opted for a restructuring that led to a bigger loss for taxpayers when the solar panel maker went bankrupt, Republican investigators said on Thursday. In its final report on its 18-month probe into the failed $535 million loan, the Republican-led House Energy and Commerce Committee said the Energy Department rushed into the deal, then helped keep the company going despite a series of red flags. ... Full Story Top Close call for three jets over Washington airport Thu,2 Aug 2012 03:12 PM PDT Reuters - WASHINGTON (Reuters) - Three U.S. Airways flights came too close to one another this week over Washington's Reagan National Airport because of "miscommunication" between the control tower and a regional hub, U.S. transportation officials said Thursday. Two of the regional commuter jets took off in the direction of an incoming flight with inadequate separation in the incident on Tuesday afternoon, federal officials said. ... Full Story Top NYC cut pensions for police in military: lawsuit Thu,2 Aug 2012 03:06 PM PDT Reuters - NEW YORK (Reuters) - New York City was sued by the U.S. government on Thursday over allegations it unlawfully reduced pension benefits for police officers who have served in the military since the September 11, 2001, attacks. The class action accused the city of using only police officers' base pay to calculate benefits. Under the law, an employer must take into account the compensation that the service member would likely have earned had he or she not been performing military service, the lawsuit said. ... Full Story Top Iowa governor moves out of mansion because of black mold Thu,2 Aug 2012 02:59 PM PDT Reuters - DES MOINES (Reuters) - Governor Terry Branstad and his wife Chris have moved out of the Iowa governor's mansion in Des Moines after black mold was found in their third-floor residence, a spokeswoman said. Chris Branstad had not been feeling well for a few weeks and suggested her sickness might be caused by something at Terrace Hill, the state-owned mansion that has been home to Iowa governors since 1976. Tests were done on the mansion and confirmed black mold on the third floor, which was converted into living quarters for the state's governor and family. ... Full Story Top Obama: Penn State punishment "appropriate" in Sandusky scandal Thu,2 Aug 2012 02:54 PM PDT Reuters - WASHINGTON (Reuters) - President Barack Obama said the NCAA penalties imposed on Penn State University for the school's failure to stop football coach Jerry Sandusky's sexual abuse of children were "appropriate" punishment. The NCAA, the governing body of U.S. college sports, fined Penn State $60 million and voided its football victories for the past 14 seasons in an unprecedented rebuke last month over the Sandusky scandal. ... Full Story Top Yemen tribesmen release Italian officer: official Thu,2 Aug 2012 02:52 PM PDT Reuters - SANAA (Reuters) - An Italian embassy security officer kidnapped by Yemeni tribesmen has been released unharmed, a government official said on Thursday, the same day the country's information minister survived an assassination attempt. The incidents highlight continuing instability in Yemen five months after former leader Ali Abdullah Saleh was formally replaced by his deputy under a plan designed to forestall a slide into lawlessness. ... Full Story Top Plug likely to be pulled on U.N. observers in Syria: France Thu,2 Aug 2012 02:51 PM PDT Reuters - UNITED NATIONS (Reuters) - The Security Council will most likely not renew the mandate of the U.N. observer mission in Syria later this month, which would require it to pull out of the conflict-torn country, France's envoy to the United Nations said on Thursday. "I think the mission will disappear on the 19th of August," French Ambassador Gerard Araud, president of the Security Council this month, told reporters. The mandate of the U.N. mission in Syria, known as UNSMIS, expires on that date. ... Full Story Top Mexican ex-governor tells U.S. judge he laundered drug money Thu,2 Aug 2012 02:49 PM PDT Reuters - NEW YORK (Reuters) - A former Mexican state governor pleaded guilty in a New York federal court on Thursday to conspiring to launder millions of dollars of cocaine trafficking proceeds. Mario Villanueva,64, governor of Quintana Roo state from 1993 to 1999, was extradited to the United States in May 2010 after serving a six-year sentence in Mexico for money laundering. The state is home to the famous seaside resort city of Cancun. The money transfers were administered by Consuelo Marquez, a Lehman Brothers investment representative who pleaded guilty to money laundering charges in 2005. ... Full Story Top Brazil Supreme Court trial could tarnish Lula's legacy Thu,2 Aug 2012 02:41 PM PDT Reuters - RIO DE JANEIRO (Reuters) - Seven years after a corruption scandal rattled the government of former President Luiz Inacio Lula da Silva, Brazil's Supreme Court on Thursday began a landmark trial that could mar the wildly popular leader's legacy. Brazilians still don't know the extent of the infamous "mensalão" scandal, an alleged scheme to pay legislators a monthly retainer in exchange for their support in Congress. ... Full Story Top UAE emirate's ruler seeks to calm anger over arrests Thu,2 Aug 2012 02:25 PM PDT Reuters - DUBAI (Reuters) - The ruler of an emirate in the United Arab Emirates sought to soothe anger over a crackdown on dissidents in the Gulf Arab country on Thursday, saying the recent detentions were necessary to protect them and the state. Some 35 dissidents, most of them are Islamists, have been detained by authorities since July 15 when the UAE said it was investigating a foreign-linked group planning "crimes against the security of the state". ... Full Story Top Senate panel passes tax bill in rare bipartisan show Thu,2 Aug 2012 02:11 PM PDT Reuters - WASHINGTON (Reuters) - Senate tax writers approved a $205 billion package of tax breaks in a rare show of bipartisan unity on Thursday, but across Capitol Hill in the House of Representatives, sniping over taxes between Democrats and Republicans was in full force. Hours before leaving for a five-week break, the Senate Finance Committee passed legislation including a $15 billion business research tax break. It also contained a popular $132 billion provision to prevent the alternative minimum tax, targeted at the rich, from hitting the middle class. ... Full Story Top Will U.S. Olympic medalists get a tax break? Thu,2 Aug 2012 02:09 PM PDT Reuters - (Reuters) - When U.S. athletes at the London Olympic Games bow their heads to receive a medal, one would hope they are not thinking about their taxes. But as with much in life, Olympic glory has a price -- a tax price, that is. Legislation to exempt U.S. Olympic athletes from having to pay tax on prize money won at the games was proposed on Wednesday in the U.S. Congress by Senator Marco Rubio. Podium athletes get checks - $25,000 for gold, $15,000 for silver and $10,000 for bronze - and the winnings are taxable for Americans. ... Full Story Top Turkish soldier killed in clash with Kurdish rebels Thu,2 Aug 2012 01:48 PM PDT Reuters - DIYARBAKIR, Turkey (Reuters) - At least one Turkish soldier was killed and seven wounded after Kurdish militants opened fire on their outpost in a remote area of southeastern Turkey on Thursday, the provincial governor's office said. Members of the Kurdistan Workers Party (PKK) attacked the sentry in the Eruh region of Siirt province using assault weapons, and the soldiers returned fire, they said. The attack occurred at about 7:30 p.m. (1330 EDT) while the soldiers were preparing to break their fasting during the Islamic holy month of Ramadan, the sources added. ... Full Story Top U.N. demands end of foreign support for Congo rebels Thu,2 Aug 2012 01:44 PM PDT Reuters - UNITED NATIONS (Reuters) - The U.N. Security Council on Thursday demanded an end to foreign support for the M23 rebels fighting against the Kinshasa government in eastern Democratic Republic of Congo, a rebuke diplomats said was aimed at Rwanda and Uganda. The 15-nation council issued a statement voicing its "strong condemnation of any and all outside support to the M23 and demand that all support to the M23, including from outside countries, cease immediately. ... Full Story Top Mortar shells kill 20 in Damascus Palestinian camp Thu,2 Aug 2012 01:38 PM PDT Reuters - BEIRUT (Reuters) - At least 20 people were killed on Thursday when Syrian security forces fired three mortar rounds at a Palestinian camp in Damascus, medical sources said. Witnesses in the camp told Reuters by telephone that the mortars hit a busy street as people were preparing a Ramadan meal to break their fasting. "I saw it all, I was going to my house when the first round hit the street, people ran to check the damage when the second one hit the same area," a resident said. "Many people were killed immediately," she said. ... Full Story Top Back on U.S. soil, Romney looks to regain his footing Thu,2 Aug 2012 01:32 PM PDT Reuters - GOLDEN, Colo. (Reuters) - Republican presidential candidate Mitt Romney plunged back into the U.S. campaign on Thursday after a rocky trip abroad, promising to create 12 million jobs and fending off criticism over taxes. Coming after perhaps the worst week of his candidacy on a foreign trip highlighted by gaffes, Romney targeted the economic plight of middle-class American voters. He unveiled a "Presidential Accountability Scorecard," which highlighted President Barack Obama's failure to solve high unemployment and cut the budget deficit. ... Full Story Top Water Polo: Montenegrin PM cheers team in medal quest Thu,2 Aug 2012 01:25 PM PDT Reuters - LONDON (Reuters) - Montenegro Prime Minister Igor Luksic is hoping his support at the water polo arena will help the tiny Adriatic country win their first Olympic medal in London to cap a historic year for the ex-Yugoslav republic. "We hope to win some medals, it would be the first ever ... which would be really great and would make this year altogether a success, after the opening of the accession talks with the EU," Luksic said in an interview with Reuters in the stands of the water polo tournament. ... Full Story Top Timeline: Sudan and South Sudan could face sanctions Thu,2 Aug 2012 01:07 PM PDT Reuters - (Reuters) - Here is a look at events in Sudan and South Sudan since the 2005 peace accord which ended more than two decades of civil war between rebels in the south of Sudan and the government in Khartoum in the mostly Muslim, Arabic-speaking north. January 9, 2005 - Southern rebel leader John Garang and chief government negotiator Vice President Ali Osman Mohamed Taha sign a comprehensive peace agreement ending the civil war. The agreement shares oil revenues between the north and south, sets up a coalition government and promises elections. ... Full Story Top Senator breaks with no tax pledge in hunt for budget deal Thu,2 Aug 2012 01:02 PM PDT Reuters - WASHINGTON (Reuters) - Republican Senator Lindsey Graham said on Thursday his party's anti-tax orthodoxy needed to be revisited, sparking interest from a senior Democrat who pledged to work with him to try to avoid deep automatic budget cuts set for early next year. Graham, a conservative Republican, said he did not agree with fellow Republicans who thought any money saved by closing tax loopholes and eliminating tax deductions must go toward lowering tax rates, as opposed to using the savings for deficit reduction. ... Full Story Top

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