Isnin, 23 September 2013

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NST Online Business Times : latest


US stocks end firmly in the red

Posted: 23 Sep 2013 04:18 PM PDT

NEW YORK: US stocks closed firmly in the red on Monday, extending Friday's losses, amid uncertainty about the Federal Reserve's stimulus taper plans.

A big bounce by heavyweight Apple on news of record sales of its new iPhone models was not enough to push the Nasdaq higher.

The Dow Jones Industrial Average dropped 49.71 points (0.32 percent) to finish at 15,401.38. The broad-market S&P 500 index fell 8.07 points (0.47 percent) to 1,701.84, while the Nasdaq Composite lost 9.44 points (0.25 percent) at 3,765.29.

Comments by New York Fed President William Dudley and two other top Fed officials on Monday created a bit more uncertainty about the future direction of US monetary policy, damping Wall Street sentiment, said Alan Skrainka of Cornerstone Wealth Management.

Apple jumped nearly 5.0 percent to US$490.64 after saying it sold more than nine million new versions of its iPhones over the three-day launch weekend, a record. Apple predicted its fourth-quarter profit and revenue would be at the high end of its prior forecast.

Microsoft edged down 0.2 percent after unveiling two new models of its Surface tablet on Monday.

Ailing BlackBerry meanwhile added 1.10 percent at US$8.82, after diving 17 percent Friday.

The Canadian smartphone maker announced it had agreed to a US$4.7 billion buyout by a consortium led by Canadian firm Fairfax Financial Holdings Limited.

It was the first day of trading of the newly configured Dow index of 30 blue-chip stocks, with Goldman Sachs, Nike and Visa replacing Alcoa, Bank of America and Hewlett-Packard.

Dow member General Electric gained 1.1 percent after winning a US$2.2 billion contract to provide turbines for six power plants in Algeria.

Boeing, another Dow component, rose 0.8 percent. Budget airline Norwegian Air Shuttle called a meeting this week with Boeing to discuss a raft of technical problems with its two 787 Dreamliners.

General Motors rose 0.8 percent after Moody's upgraded the automaker to investment quality. GM said it would buy back US$3.2 billion in shares owned by the UAW union's trust. -- AFP

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Kenyan Forces Move to Free Hostages From Mall Siege - Wall Street Journal

Posted: 23 Sep 2013 09:13 AM PDT

Associated Press

A plume of black smoke billows over the Westgate Mall, following large explosions and heavy gunfire, in Nairobi on Monday.

NAIROBI—Government security forces on Monday pushed into a Nairobi shopping mall as it spewed black smoke, in an operation to free the remaining hostages from a siege that has stretched into its third day.

Gunfire and large explosions punctuated the rescue mission, sending hundreds of bystanders scurrying away from the Westgate Mall and turning a bustling suburb of East Africa's commercial capital into a conflict zone. The smoke came from a fire set by the militants in a supermarket in an attempt to prevent the security forces from advancing, said Interior Cabinet Secretary Joseph Ole Lenku. He said it didn't foil the assault and that there were now only a few civilians left in the mall, although he declined to give a number.

"Almost all of them have been evacuated," Mr. Ole Lenku told reporters outside the mall. "There will be very, very minimal [numbers of civilians], if any, in the building." He added that Kenyan forces now were in control of all floors of the four-story building, but militants could be seen "running and hiding."

He said he could confirm 62 people had been killed since attackers armed with assault rifles and grenades stormed the shopping center at lunchtime Saturday in an attack claimed by the Somali al-Shabaab militant Islamist group. The Red Cross had previously said at least 69 were dead. Mr. Ole Lenku said the Red Cross figure might be inflated.

Before Monday's government operation, at least 47 people were believed to be still trapped inside, based on Red Cross missing persons reports.

Kenyan police have been promising an assault on the shopping center for days, but also said they were moving forward slowly in order to protect the civilians hiding inside and possibly being held at gunpoint by the attackers. Earlier Monday, police widened the security cordon around the mall, closing off additional streets to cars. Security forces could also be seen in the late morning massing near the main entrance of the mall. Helicopters circled overhead.

Kenyan police seek to clear terrorists from an upscale mall after an attack that killed more than 60 people, with as many as 40 more still missing and perhaps held hostage. The WSJ's Heidi Vogt has the details.

Photos

European Pressphoto Agency

Occasional gunshots sounded throughout the morning and then, at about 1:30 p.m., a volley of gunfire went off and two large explosions were heard. Smoke then started streaming from one side of the building. More gunshots could be heard two hours later, followed by what appeared to be return fire.

A sense of siege has permeated the city—other major malls have been closed and the government has increased security at the airport and seaport.

Mr. Ole Lenku declined to give details on the operation, but did say two of the approximately 10-15 attackers inside were killed in Monday's maneuver. He also said reports of women being among the assailants were incorrect. He said some of the militants had disguised themselves as women, but all were men. The Kenyan government has had access to the mall's closed-circuit television feed since Sunday, so has been able to monitor some of their movements. He also said 10 Kenyan security forces had been wounded and were receiving treatment.

Maj. Gen. Julius Karanja, the chief of general staff for the Kenyan military, said the attackers came from a number of countries, although he declined to provide details.

"We have an idea who these people are, and they are clearly a multinational collection from all over the world," Gen. Karanja said.

The attack began Saturday, with the assailants storming at least three entrances to the mall simultaneously. Gunfire ripped through open-air cafes at the main entrance, while a grenade exploded in the rooftop parking lot and another group of shooters opened fire in the basement garage. Kenyan officials said more than 1,000 people initially trapped inside the mall managed to escape. More than 175 people were injured in the assault.

"Their mission was to kill, not to steal," said Edwin Omoding, a 26-year-old stocker for the Nakumatt supermarket inside the mall. He said he saw about 20 attackers, including three women.

"They were questioning people, and they said, 'If you are Muslim you are on the safer side, but if you are Hindu or Christian you will be killed'," Mr. Omoding said.

He said he and four others hid next to a large walk-in refrigerator, while other people hid in the refrigerator itself. At one point the attackers shot everyone inside the refrigerator, without noticing his group. Mr. Omoding said a bullet grazed his chest but he kept quiet and remained unseen, and was rescued at 9 p.m. Saturday.

Among the dead were four Britons, two Canadians including a diplomat, two French women and a prominent Ghanaian poet, their governments said. The U.K. government, which said the Britons' next of kin had been informed, added that the number of British fatalities could rise. Local media reported that a Kenyan radio presenter was killed on the roof, and Kenyan President Uhuru Kenyatta said his nephew and nephew's fiancée died in the attack.

When the shooting started, some in the mall ran in one direction only to find themselves facing another flank of shooters. "We tried to escape through the main gate, but the attackers were also coming through that gate. So we turned and tried to go back to the basement," said Peter Ouma, a 25-year-old construction worker.

Mr. Ouma, who was in the basement when attackers entered, said they were dressed in black with their faces masked "like ninjas." He said there was one woman in that group.

"They were at all the exits; even if you wanted to escape you couldn't," Mr. Ouma said. He first hid with about 10 others under a stairwell, then managed to slide underneath a car in the parking garage and stayed there until he was rescued by soldiers Sunday morning.

The deadliest attack to hit Kenya since the 1998 U.S. embassy bombing started around 12:30 p.m. local time Saturday.

Kenyan President Uhuru Kenyatta offered condolences to those affected by the attack at Nairobi's Westgate Mall. Elsewhere, Kenyans held prayer vigils and queued up to donate blood. Photo: AP

Most of the mall's shops are on three main levels, with a few more in the basement and a movie theater that extends up onto a higher level. When news of an attack there first filtered out to the city through phone calls and text messages, initial assumptions were that it was a robbery, a common occurrence in a crime-ridden city where going into shopping centers requires handbag searches and a once-over with a metal detector.

But inside the mall, the scene was bloody. A waitress at the popular ArtCaffe restaurant said men entered the dining area and just started shooting the patrons.

Over the course of the day, Kenyan police and soldiers slowly pushed in, ushering out people who were hiding in restrooms, banks' safe rooms or the depths of restaurant kitchens.

Security forces sought to surround the attackers without knowing how many there were, where they were holed up or whether they had hostages.

President Kenyatta called the assault an "evil and cowardly act of terrorism" and vowed to continue to fight against the Somali militants. "I want to be very clear and categorical: We shall not relent on the war on terror. We will continue that fight, and we urge all people of goodwill throughout the world to join us and to ensure that we uproot this evil," he said.

—Idil Abshir, Peter Wonacott, Nicholas Bariyo and Cassell Bryan-Low contributed to this article.

Write to Heidi Vogt at heidi.vogt@wsj.com

What's the end-game? Lawmakers seek way out of ObamaCare showdown - Fox News

Posted: 23 Sep 2013 09:25 AM PDT

Concerned their party is painting itself into a corner, some Republicans are trying to find a way out of the congressional showdown over a House-passed bill that would keep the government open past Sept. 30 only if lawmakers agree to defund ObamaCare.   

Senate Democratic Leader Harry Reid on Monday is expected to start the process of setting up a test vote on the House bill.   

Reid and his fellow Democrats, naturally, want to strip out the provision defunding the health law. Republicans don't want that. So Tea Party-aligned senators like Ted Cruz have rallied around an only-in-Washington kind of approach -- in order to defend the House bill which they supported, they will try to block Reid from calling it up. 

But this raises a perplexing question: Even if Republicans can muster the votes to block the bill, what then? 

The approach threatens to end in a stalemate, with the Senate holding on to a bill and neither chamber, then, voting on anything that would keep the government open past Sept. 30. Congress hasn't passed a bona fide budget since 2009, forcing the government to operate on a series of short-term spending bills -- this practice sets up periodic deadlines, and opens the door each time to the risk of a shutdown. 

Some Republicans and Democrats are now looking for a resolution, worried about the political blowback from a shutdown. 

Sen. Pat Toomey, R-Pa., suggested Monday that his fellow Republicans set the bar a bit lower, aiming instead to repeal "some of the really egregious things" in the law. 

Speaking with Fox News, Toomey said the widely unpopular medical device tax -- which medical device companies warn could put them out of business -- is a prime candidate for repeal. Plus, he said lawmakers should continue to push for a delay in the individual mandate, which is expected to require individuals to purchase health insurance starting in 2014. 

"I don't think we're gonna be able to completely defund ObamaCare as long as President Obama's in the White House," Toomey said. 

Toomey's comments speak to the divide in the Republican Party. Many GOP lawmakers want to repeal ObamaCare entirely, warning that it is driving Americans off their current health care plans and, because of quirks in the law, forcing others into part-time work. But many also say that, with Democrats controlling the Senate and White House, defunding it is simply not possible. 

On CBS' "Face the Nation," Sen. Joe Manchin, D-W.Va., made a suggestion similar to Toomey's. 

"Let's fix it. Let's repair it," he said of the law. 

Sen. Tom Coburn, R-Okla., on the same show, was skeptical about the GOP push to defund the law. "We don't have the ability ... to put a total stop and defund ObamaCare. It would be nice if we did. I'd be in the fight," he said. 

He predicted that Reid would ultimately marshal the votes to strip out the ObamaCare language and send the budget bill back to the House. He predicted the government would not shut down over this "exercise." 

With time running out to reach an agreement, there appear to be a few possible outcomes. 

Cruz and his allies could successfully stall the bill in the Senate, forcing concessions or forcing a shutdown come Oct. 1. 

Or, Reid could succeed in calling up the bill, stripping out the ObamaCare language and sending it back to the House. Then House Speaker John Boehner would be forced to decide whether to stick by his party's demands to defund ObamaCare, or call up the clean budget bill, relying on perhaps a majority of Democrats to pass it. 

Cruz, in an interview with "Fox News Sunday," also floated an alternative route. He said the House should "hold its ground," and start passing miniature spending bills, "one department at a time." 

"Fund the military, send it over, and let's see if Harry Reid is willing to shut down the military because he wants to force ObamaCare on the American people," he said. 

While Republicans debate internally over strategy, Democratic leaders have a largely united message. 

Reid said last week that any bill that strips funding from ObamaCare is "dead." 

President Obama says any push to nix the health care law is "not going to happen."

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