Jumaat, 12 Oktober 2012

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US stocks retreat amid pensive mood

Posted: 12 Oct 2012 06:53 PM PDT

WASHINGTON: US stocks gave up early gains on firm bank earnings and a rise in consumer confidence Friday to end the day broadly lower, with worries about the new earnings season clouding optimism.

Better-than-expected third quarter gains by JPMorgan Chase and Wells Fargo gave stocks an early boost but profit-taking moved in quickly and only the blue-chip Dow stayed in the black -- just barely.

At the closing bell, the Dow Jones Industrial Average was up 2.46 points, or 0.02 percent, at 13,328.85.

The broad-based S&P 500 lost 4.25 points (0.30 percent) to 1,428.59, while the tech-rich Nasdaq fell 5.30 points (0.17 percent) to 3,044.11.

The University of Michigan's consumer confidence survey rose unexpectedly sharply over September to its best level in five years, helping early buying.

"However, the exuberance was short-lived as the key indices promptly fell through the unchanged line, to their session lows," said Briefing.com.

With some 230 companies reporting third quarter earnings next week, the mood was pensive, analysts said.

JPMorgan shares finished 1.1 percent lower, at $41.62, despite handily beating forecasts with a $5.7 billion profit, up 34 percent from a year earlier.

Wells Fargo fell 2.6 percent after slightly surpassing expectations with a 22 percent earnings rise to a US$4.9 billion net for the quarter. Investors were disappointed in part by the bank's missing revenue expectations.

Overall, the finance sector pared 0.8 percent, with Bank of America losing 2.4 percent and Citigroup dropping 2.2 percent.

Advanced Micro Devices crashed 14.4 percent after cutting its outlook, but other chipmakers were fairly steady, with Intel shedding 0.9 percent for the day.

The bid by Japan's Softbank to take over Sprint Nextel kept a focus on the US wireless sector. Sprint slipped 0.5 percent as details were sketchy about the deal under discussion.

Market leader Verizon lost 1.3 percent, AT&T fell 1.7 percent and MetroPCS, in talks to be taken over by Deutsche Telekom's T-Mobile, gained 2.1 percent. -- AFP

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VP Candidate Ryan Looks “Overseas” to Canada for Tax Lessons - Wall Street Journal (blog)

Posted: 12 Oct 2012 07:44 AM PDT

By Paul Vieira

Canada snatched a minor role in Thursday night's U.S. vice-presidential debate,

when Republican Paul Ryan cited the country's efforts to cut business taxes as evidence that Mitt Romney's tax-cutting economic plan can work.

(He also gave Americans a nice geography lesson—reminding voters that in his home state of Wisconsin, bordering giant Lake Superior, Canada counts as "overseas.")

See Canada's cameo appearance in the WSJ's transcript of the debate.

Indeed, Canadian Prime Minister Stephen Harper's federal Conservative government, back in October 2007, announced a multi-year plan to cut the corporate tax rate from 18.5% to 15%. The Conservatives won two elections with business-tax reductions as a central plank in their platform.

The governing Conservatives shouldn't get all the credit, however. Corporate tax reform started in earnest under the former Liberal government of Jean Chretien in 2000, after the country balanced its books. That fiscal discipline, many economists say, helped Canada weather the global financial and economic crisis better than most of the developed world.

More recently, the Conservatives, under Finance Minister Jim Flaherty, have cut further in an effort to revive business investment. But, you guessed it, the corporate tax story up North is more complicated than Mr. Ryan suggests.

Canadian provinces have their own business-tax rate on corporate earnings. Based on research by the University of Calgary's Jack Mintz, a tax expert, the combined federal/provincial tax rate in Canada–or the "statutory rate"– stands at roughly 26.1%.

But as Mr. Ryan points out, that's still lower than in the U.S. and a chunk of the developed world. According to Mr. Mintz's closely watched annual tax study, published last month, the statutory U.S. corporate tax rate in 2012 was 39.2%; Japan, 36.8%; Germany, 30.2%; In the U.K., it's 24%–or the lowest among Group of Seven countries, based on Mr. Mintz's research. The average statutory rate among members of the Organization for Economic Co-operation and Development is 25.5%.

Despite Debt Crisis, EU Wins Nobel Peace Prize - ABC News

Posted: 12 Oct 2012 08:48 AM PDT

For fostering peace on a continent ravaged by war, the European Union won the Nobel Peace Prize on Friday. The Norwegian prize jury urged all Europeans to remember those efforts as they tackle the debt crisis tearing at the 27-nation bloc.

The award was hailed at EU headquarters in Brussels and by pro-EU government leaders across the continent but derided by "euroskeptics" who consider the EU an elitist superstate that strips citizens of their rights and erodes national identities.

The announcement was met with mixed reactions in debt-ridden countries like Spain and Greece, where many blame Germany and other northern EU neighbors for the painful austerity measures like higher taxes and job cuts they have endured to salvage their floundering economies.

"The peace prize?" said Giorgos Dertilis, who works at an insurance company in Athens. "The way things are going, what will happen in the immediate future? Peace is the one thing we might not have."

The Norwegian Nobel Committee honored the EU for promoting "peace and reconciliation, democracy and human rights" in Europe for six decades following the tremendous devastation of World War II.

The EU grew out of the conviction that ever-closer economic ties would make sure that century-old enemies like Germany and France never turned on each other again. The bloc is now made up of 500 million people in 27 nations, with other nations lined up, waiting to join.

AP

FILE - In this Monday, May 9, 2011 file photo, EU flags fly at the European Commission headquarters in Brussels. . The European Union has won the Nobel Peace Prize, it has been announced on Friday, Oct. 12, 2012. (AP Photo/Yves Logghe, File) Close

But European unity is being threatened by the debt crisis that has stirred deep tensions between north and south, caused unemployment to soar and sent hundreds of thousands of its citizens into the streets to protest austerity measures.

The bloc's financial disarray is threatening the euro — the common currency used by 17 of its members — and even the structure of the union itself. The debt crisis is also fueling the rise of extremist movements such as Golden Dawn in Greece, which opponents brand as neo-Nazi.

"We do not have a position on how to solve these problems, but we send a very strong message that we should keep in mind why we got this Europe after World War II," Nobel committee chairman Thorbjoern Jagland told The Associated Press.

He said that Europeans should do everything they can to safeguard their unity, "not let it disintegrate and let the extremism and nationalism grow again, because we know what catastrophes that all this leads to."

"If the euro starts falling apart, then I believe that the internal market will also start falling apart. And then obviously we get new nationalism in Europe. ... This is not a good scenario," he said.

Europe is now stuck in a three-year financial crisis caused by too much government debt. To combat this, governments across the region have imposed harsh tax and spending measures to bring their deficits under control. However a fall in government spending has had a damping effect on Europe's economy — in the second quarter of this year, the EU's gross domestic product shrank 0.2 percent compared to the previous quarter. A wide variety of indicators are pointing to a further slump in the third quarter.

The austerity measures have also hit jobs —the EU's unemployment rate is currently 10.5 percent. But some countries such as Spain and Greece have rates as high as 25 percent. In Spain, every other person under 25 is unemployed.

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Khamis, 11 Oktober 2012

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AmResearch ups Top Glove's fair value

Posted: 11 Oct 2012 06:27 PM PDT

AmResearch raised its target price on Top Glove Corp Bhd to RM6.50 per share from RM6.30, after the world's largest rubber glove maker by volume reported earnings for the financial year ended Aug. 31 that beat market estimates.

"The improved operating environment enabled most of Top Glove's increase in revenue to filter down to its bottom line," the research house said in a note on Friday.

AmResearch maintained a "buy" on the counter, saying the company's portfolio mix of 80:20 (natural:synthetic rubber) places it in an attractive position to reap the benefits of stable latex prices amid resilient demand.

Shares of Top Glove rose 1.17 percent to RM5.21, while the broader index dropped 0.1 percent. -- Reuters

US stocks' rally fizzles out

Posted: 11 Oct 2012 04:37 PM PDT

NEW YORK: US stocks closed little changed on Thursday after a solid rally sparked by surprisingly good data on weekly jobless claims fizzled out, in part due to questions over the figures.

Trading action focused on Sprint Nextel, whose shares soared 14.3 percent to US$5.76 on news that the third largest US wireless carrier was in talks to be bought by Japan's Softbank.

At the closing bell, the Dow Jones Industrial Average was down 18.58 points, or 0.14 percent, at 13,326.39.

The S&P 500 gained 0.28 points (0.02 percent) to 1,432.84, while the tech-rich Nasdaq lost 2.37 points (0.08 percent) to 3,049.41.

The market jumped from the opening after the Labor Department reported that weekly new claims for unemployment insurance fell sharply to their lowest in four and a half years, a good sign for the ailing US jobs market.

But later suggestions that the data might be somewhat incomplete helped take the air out of the rally.

Turnover was heavy in Sprint shares, which got a boost from reports that Japanese cell carrier Softbank was in talks to take it over, a move that could boost its ability to compete against powerful US market leaders Verizon and AT&T.

Sprint gave no details of the deal under discussion, only confirming that it involved "a potential substantial investment by Softbank in Sprint" that "could involve a change of control of Sprint."

Shares in other US carriers fell: Verizon lost 1.3 percent, AT&T 1.8 percent, and smaller rival MetroPCS, being taken over by T-Mobile, lost 3.3 percent.

Fedex gained 1.8 percent after it unveiled a sweeping global cost-cutting program to deal with slowing world growth, including "several thousand" voluntary job cuts.

Boeing rose 1.4 percent after announcing a US$5 billion deal to sell 50 737 single-aisle jetliners to Alaska Airlines.

Alaska Air shares were flat.

On the Nasdaq, Apple lost 2.0 percent, and Dollar Tree fell 7.7 percent, traders giving the thumbs-down on its growth plans. -- AFP

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Romney extends lead over Obama in presidential race: Reuters/Ipsos poll - Reuters

Posted: 11 Oct 2012 08:54 AM PDT

Republican presidential nominee Mitt Romney speaks during a town hall campaign stop at Ariel Corporation in Mount Vernon, Ohio October 10, 2012. REUTERS/Shannon Stapleton

WASHINGTON | Thu Oct 11, 2012 11:54am EDT

(Reuters) - Republican challenger Mitt Romney has extended his lead over President Barack Obama to 3 percentage points, according to a Reuters/Ipsos tracking poll released on Thursday, ahead of a high-stakes debate between the two candidates' running mates.

Romney now leads the Democrat by 47 percent to 44 percent among likely voters in the online poll, with less than a month before the November 6 election. The Reuters/Ipsos tracking poll released on Wednesday had shown Romney with a one-point lead over Obama, his first lead in the survey in more than a month.

Romney has been enjoying one of his best runs of the campaign after handily winning the first presidential debate last week, partially due to Obama's passive performance in that contest.

(Reporting By Patricia Zengerle; Editing by Vicki Allen)

Russia drawn into Turkey-Syria plane row – live updates - The Guardian

Posted: 11 Oct 2012 08:48 AM PDT

Here's a summary of the latest developments:

Syria-Turkey tensions

A Syrian passenger plane from Moscow has arrived in Damascus after being grounded in Ankara over suspicions that it was carrying arms. Turkish foreign minister Ahmet Davutoglu said the cargo contained "elements ... that are not legitimate in civilian flights".

The incident has created a diplomatic spat between Moscow and Ankara, as well as further escalating Syrian-Turkish tensions. Russia accused Turkey of endangering the lives of 30 passengers, including 17 Russians. Turkey summoned Russia's ambassador.

• Syria accused Turkey of "air piracy" over the incident and claimed passengers were traumatised. A Syrian Airlines engineer who was on board claimed armed Turkish officials boarded the plane and handcuffed the crew before inspecting packages that contained electrical equipment

Iraq's prime minster, Nouri al-Maliki, has warned Turkey not to draw Nato into the Syrian conflict. Speaking on a visit to Moscow before the plane incident, he said: "Turkey is being presumptuous, you could say, as if it were taking responsibility for solving the Syrian conflict instead of the Syrian people and wants to impose its own solution."

Syria

A female army officer has become the first Alawite woman to defect from the Syria army, according to activists. In a video defection statement, Zubaidah al-Miqi, said the conflict has never been about religious sects. 

The Syria security forces have conducted raids on houses in previously calm neighbourhoods of Damascus as they consolidate gains across the city and beyond, according to a witness. Majd Arar told the Guardian: "Everyone here understands that the time for the government offensive has come."

A Syrian opposition conference that was due to have taken place in the Qatari capital Doha has now been postponed until November to encourage wider representation at the urging of western governments, diplomats say. Plans are afoot to include a Turkmen bloc and Nasserists as well as representatives from activist groups involved in the uprising inside Syria.

• The foreign supply of weapons to the Free Syrian Army is drying up because of regional anxiety about arms proliferation, US nervousness about funding jihadis ahead of the US presidential election, and divisions between the rebels' main backers Qatar and Saudi Arabia, Martin Chulov and Ian Black report. One well placed source said: "The Qataris are much more proactive than the Saudis. The Saudis are not interested in democracy, they just want to be rid of Bashar. They would be happy with a Yemeni solution that gets rid of the president and leaves the regime intact." Mustafa Alani of the Saudi-financed Gulf Research Centre in Abu Dhabi, added: "The Saudis fear that there will be blowback from Syria like there was from Iraq and Afghanistan. They don't want chaos. They want the Syrian military to take over. The whole region wants that, including the Israelis. Everyone wants an organised structure of army officers who will keep weapons under control and make sure that they are handed in."

• Ian Black profiles Prince Bandar bin Sultan, who has taken over the Syria "file" after rumours of inefficiency at the Saudi Arabia intelligence agency.

Bandar's reputation as an inveterate networker and hawk have fuelled anticipation about how he will handle the bloodiest crisis of the Arab spring ... He is famously hostile to Iran, the Saudi kingdom's great rival, and is said to advocate links with Israel, seeing it as a lesser threat than the Islamic republic.

• The joint UN-Arab League envoy to Syria, Lakhdar Brahimi, has arrived in Jeddah, Saudi Arabia, on the first stop of his second regional tour, AFP reports. His spokesman said Brahimi will hold wide-ranging talks on the crisis in Syria. He is expected to visit Damascus as part of the tour.

• Britain has sent military personnel to Jordan, according to the Times after it confirmed it had sent troops to the Jordan-Syrian border to as part of a taskforce aimed at stopping the Syrian conflict spreading south. A foreign office spokesman told the Times: "We are working with international partners and countries neighbouring Syria to improve border controls to reduce the risk of weapons proliferating to third parties. We have made clear to Assad, directly and through other parties, that any use or proliferation of CBW [chemical and biological weapons] would be completely unacceptable."

• Two British nationals arrested by counter-terrorism police at Heathrow on Tuesday night are being questioned in connection with the abduction and attempted murder of a Sunday Times photographer in Syria during the summer. Scotland Yard confirmed that one line of police inquiry was a possible connection with the capture and detention of a war photographer, John Cantlie, in August.

Libya

• Two former heads of US diplomatic security in Libya have told a congressional hearing that requests for additional agents to protect diplomats from the growing threat of armed militias were rejected by the state department ahead of the killing of ambassador Chris Stevens and three others in Benghazi. Republicans painted a picture of an incompetent state department failing to heed warnings of a growing terrorist threat or to prepare for a possible attack on the anniversary of 9/11, and then covering up the circumstances of the full scale militia assault that killed Stevens. 

Egypt

• The authority of Egypt's president will be curbed by parliament, according to a partial draft of the new constitution released on Wednesday, the Egypt Independent reports. Kamal Gibril, head of the political systems committee, said the committee felt that a mixed system that divides power between the president and a prime minister who represents the parliamentary majority is best suited to Egypt. 

• A court has acquitted all 25 former senior Egyptian officials accused of sending men on horseback and camels to attack protesters during the uprising that toppled Hosni Mubarak, Ahram Online reports. Infamous lawyer Mortada Mansour, who allegedly recorded a speech the night before the battle inciting thugs to attack Tahrir Square, was among the accused. Blogger Zeinobia expresses her disgust at the verdict:  "I can not believe it !! I am so angry. Who killed those protesters ??"

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Rabu, 10 Oktober 2012

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Asia’s rich crave Bufori from Malaysia

Posted: 10 Oct 2012 07:17 PM PDT

The global economic doldrums may have weighed on businesses around the world, but in Malaysia a luxury hand-crafted carmaker struggles to keep up with demand as orders pour in from China and the Middle East.

Some customers are willing to wait nearly two years for their Bufori vehicle, which costs anywhere from US$150,000-US$350,000 and can contain unique touches at the buyer's request, ranging from built-in vaults to pearl-studded interiors.

One such customer is eHong Tan, a Malaysian green technology entrepreneur and tea connoisseur, who asked for her Bufori to be fitted with tea-making and aromatherapy features.

"I love drinking Chinese tea. The car allows me to make tea and drink it while I'm traveling," said Tan, adding that both are "unique and satisfying" creature comforts that she had always wanted.

The hefty price tag does little to dampen the car's popularity among Asia's rich, whose number of high net worth individuals overtook North America for the first time last year as wealth in Thailand and Indonesia surged almost ten percent, according to the Asia-Pacific Wealth report.

Bufori's founder and managing director, Gerry Khouri, said he first started the company in his native Australia in 1987, but decided to move to Malaysia in the early 90s when demand from the region began to jump.

In the past three years, orders for his Buforis, which he says is the only fully handmade car produced in Asia, have steadily risen 15-20 percent each year.

"China and Middle East are probably our two biggest markets right now," said Khouri, adding that he also gets orders from Southeast Asian countries, Hong Kong, Japan and Europe.

"There's a lot of promise here — that's what brought us to Malaysia and kept us here," Khouri said. The country hosts Bufori's only plant where customers can visit to see their cars being made. Showrooms are found in Sydney and Shanghai.

"The beautiful thing is I get to see it built from the beginning to end, like watching a baby growing up," said Tan.

Khouri, who built his first car in his backyard at only 21, says that while the Bufori kept its trademark classic designs, the cars' performance itself is "in a class of its own".

The Geneva, a 4-door luxury limousine with elegant curves and a long running board, is powered by a 6.4-litre V8 engine boasting up to 470 horsepower and 630 Newton meters (Nm) of torque.

"These are exclusive, very elite. You've got to be very special to own one of these cars," he said.

But Khouri admits that the long waiting list can push some customers to competitors such as Bentley and Rolls Royce.

"These cars are made by hand. No machines — look around you, it's just people," he says, gesturing around the 50,000 square foot (4,645 square meter) factory in the outskirts of Kuala Lumpur where workers are busy fitting custom-made parts and molding the Bufori's classic body.

Upstairs, in the upholstery and interior section, leather is cut and stitched by hand while engineers put together electronic controls.

"You can't speed up people like a machine," he added.

With around a hundred workers, the factory makes only 60 cars worldwide per annum — a fraction of its 300 target, with the limited workforce and the long hours it takes to complete a car dragging down production.

"Our problem is our demand exceeds our capacity. We're not in the situation where we can produce enough vehicles to meet the demand worldwide," says Khouri.

"It sounds like a crazy problem to have - but it's serious because we are losing sales everyday."

Khouri wants to set up more factories to speed up production but is wary, wanting to preserve the quality.

"Bufori cars are very labor-intensive and dependent on people. We might compromise the quality which is something we don't want to do," he added.

The Bufori La Joya coupe takes 3,500 man hours to complete while the Geneva saloon needs 9,000 man hours.

"That's ridiculous in the overall scheme of things. If you look at a mass producer carmaker, even 50 man hours is taking too much," says Khouri.

But customers who chose to be patient have no regrets.

"It is worth the wait," says Tan, whose car took 20 months to finish. "It's more than a car. To me, the Bufori is an art." -- Reuters

AIA to buy ING 's Malaysian unit for US$1.7b

Posted: 10 Oct 2012 07:10 PM PDT

HONG KONG/AMSTERDAM: Pan Asian insurer AIA Group Ltd has agreed to buy ING's Malaysian insurance operations for US$1.73 billion in cash, handing the Dutch financial services firm its first deal in a nine-month drive to sell off Asian assets.

The sale of the Malaysian unit is expected to be followed soon by the divestment of ING's Japan, South Korea, Hong Kong and Thailand units, as the bailed-out Dutch financial firm offloads assets to repay 10 billion euros (US$12.9 billion) in state aid received during the 2008 financial crisis.

For AIA, the purchase of the Malaysian operations marks its second M&A deal in less than a month, and gives it a leading position in the fast growing Southeast Asian economy.

AIA was spun out of U.S. insurer AIG in 2010 through a US$20.5 billion IPO, and Hong Kong-based CEO Mark Tucker has been re-building the business after it lost agents and market share amid AIG's near collapse during the financial crisis.

"It's a good deal and they are paying up to buy a good quality business and to expand into a rapidly growing market," said Credit Suisse analyst Arjan van Veen, describing ING's Malaysian business as the "jewel in the crown".

AIA said it was paying a multiple of about 1.8 times embedded value for the Malaysian business, compared with AIA's own multiple of 1.5 times. Van Veen said the deal should add 5 percent to AIA's earnings per share.

Embedded value is a measure commonly used to gauge the value of insurance companies and includes the present value of future profit from long-term insurance contracts.

The deal, which confirmed a report by Reuters on Wednesday, marks ING's first sale after it announced plans to auction its Asian insurance operations in January as part of a global asset sell-off programme.

ING originally wanted to sell its entire Asia insurance operation, with a book value of 6.1 billion euros, to one buyer but said it was willing to split up the business if it could raise more money that way.

"Today's announcement is the first major step in the divestment of our Asian insurance and investment management businesses and shows that ING continues to make steady progress in the restructuring of our company," said Jan Hommen, chief executive, in a statement. -- Reuters

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US House hearing investigates terror attack in Libya - CNN International

Posted: 10 Oct 2012 07:54 AM PDT

STORY HIGHLIGHTS
  • NEW: Top State Department official addresses criticism in congressional hearing testimony
  • The Sept. 11 attack killed the U.S. ambassador to Libya and three other Americans
  • Republicans argue President Obama's policies caused vulnerability to such an attack
  • The administration changed description of event from a protest gone awry to a terror attack

Washington (CNN) -- At a congressional hearing Wednesday loaded with political implications, a top State Department official will defend the administration's handling of the terrorist attack in Libya that killed U.S. Ambassador Christopher Stevens and three other Americans on the anniversary of 9/11.

Prepared testimony made public before the House Oversight Committee hearing showed that Under Secretary of State for Management Patrick Kennedy will address specific criticism by Republicans of an alleged lack of preparedness ahead of the Benghazi consulate attack and a shifting response by the Obama administration following the assault.

"The Department of State regularly assesses risk and allocation of resources for security; a process which involves the considered judgments of experienced professionals on the ground and in Washington, using the best information available," Kennedy's prepared statement said. "The assault that occurred on the evening of September 11, however, was an unprecedented attack by dozens of heavily armed men."

U.S. official sought more security for Benghazi post

He also will tell the Republican-led panel that initial assessments by administration officials about what happened that night were based on available information that has since changed.

Critics accuse the administration of trying to cover up or play down the attack through initial statements that described it as a spontaneous act stemming from protests over an anti-Muslim film rather than a planned terrorist assault.

"We have always made clear that we are giving the best information we have at the time. And that information has evolved," Kennedy's prepared statement said, citing remarks by U.N. Ambassador Susan Rice on September 16 that critics alleged were deceptive. "The information she had at that point from the intelligence community is the same that I had at that point. As time went on, additional information became available."

GOP challenger Mitt Romney has made the Libya attack a focus of his criticism of President Barack Obama's foreign policy.

With polls showing more people favor Obama over Romney on foreign policy, the former Massachusetts governor seeks to gain ground by arguing the president has made America less influential and more vulnerable around the world.

The assault in Benghazi occurred 11 years to the day after the September 11, 2001, attacks on New York's World Trade Center and the Pentagon. After initially blaming the violence on the protest over the film produced in America, the Obama administration conceded it was a terrorist attack.

In Kennedy's prepared statement, he noted that Secretary of State Hillary Clinton appointed an Accountability Review Board that includes well-known figures such as former Joint Chiefs Chairman Adm. Michael Mullen to report on whether proper security systems and procedures were in place or implemented

"Until these investigations conclude, we are dealing with an incomplete picture, and, as a result, our answers today will also be incomplete," Kennedy's prepared statement said.

State Department officials: Benghazi attack 'unprecedented'

The House panel scheduled the hearing even though Congress is on recess until after next month's election. Also set to testify were Deputy Assistant Secretary of State for International Programs Charlene Lamb; Regional Security Officer Eric Nordstrom, who was stationed in Libya before the attacks; and Lt. Col. Andrew Wood, a Utah National Guardsman who was leading a security team in Libya until August.

Issa's committee had asked Clinton to take part, and she sent Kennedy and Lamb to appear.

Democrats accuse Issa of planning a partisan hearing, a similar allegation leveled against the panel for its past investigations of the botched "Fast and Furious" gun-running program and the failed Solyndra clean energy company that received about $500 million in government loan guarantees.

On Tuesday, two senior State Department officials provided reporters with the most detailed explanation yet of the attack in Benghazi, telling a conference call that there was no prior indication such an assault was imminent.

The officials, who briefed reporters on condition of not being identified by name, said there was "nothing unusual" throughout the day of the attack.

What Obama administration has said about Libya attack

Stevens held an evening meeting with a Turkish diplomat and then retired to his room in one of the compound's buildings at 9 p.m., according to the officials. The first sign of a problem came 40 minutes later when diplomatic security agents heard loud talking outside the compound, along with gunfire and explosions.

Asked whether the attack was a spontaneous assault taking advantage of a demonstration, as originally asserted by Obama administration officials, one senior official said, "That was not our conclusion."

The two senior officials offered riveting detail of the attack by what one of them described as "dozens of armed men" who marauded from building to building in the enormous complex and later fired mortars on a U.S. annex less than a mile away.

In the havoc at the compound, which had four buildings, Stevens and two of his security personnel took refuge in a fortified room that the attackers were able to penetrate, one official said.

The attackers doused the building with diesel fuel and set it ablaze, and the three men decided to leave the safe haven and move to a bathroom to be able to breathe, according to the official. Stevens became separated from the security personnel in the chaos and smoke, and eventually turned up at a Benghazi hospital, where he was declared dead.

Hospital personnel found his cell phone in his pocket and began calling numbers, which is how U.S. officials learned where he was, the State Department officials said.

The officials echoed what administration officials have maintained since the attack: that U.S. and Libyan security personnel in Benghazi were outmanned and that no reasonable security presence could have fended off the assault.

"The lethality and the number of armed people is unprecedented," one official said. "There had been no attacks like that anywhere in Libya -- Tripoli, Benghazi or anywhere -- in the time that we had been there. And so it is unprecedented, in fact, it would be very, very hard to find precedent for an attack like (it) in recent diplomatic history."

Romney knew ex-SEAL slain in Benghazi

CNN's Jill Dougherty, Elise Labott and Tom Cohen contributed to this report.

Obama, Romney face most narrow electoral map in recent history - Washington Post

Posted: 10 Oct 2012 08:30 AM PDT

Despite an apparent bounce for Mitt Romney in recent weeks, the fundamental dynamic of the electoral map appears to be locked in for now — with both campaigns focused on the nine states that have dominated for most of this year, according to interviews with strategists on both sides.

The Republican presidential nominee has enjoyed some momentum after a winning performance in the first debate that has seemingly put previously written-off states such as Pennsylvania and Michigan back in the mix, according to polls out this week. But the Romney campaign appears to be resisting pressure from supporters to broaden the fight and is not expanding their path to 270 electoral college votes — at least for now.

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Selasa, 9 Oktober 2012

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Jerry Sandusky gets 30 to 60 years for child sex abuse - NBCNews.com

Posted: 09 Oct 2012 08:23 AM PDT

Former Penn State coach Jerry Sandusky, who was convicted of 45 counts of child sex abuse, was sentenced to 30 to 60 years in prison. NBC's John Yang reports.

By M. Alex Johnson and Kimberly Kaplan, NBC News

New in this version: Comments from judge, Sandusky, victims, attorneys and Penn State

Updated at 11:17 a.m. ET: BELLEFONTE, Pa. — Former Penn State University assistant football coach Jerry Sandusky was sentenced to 30 to 60 years in prison Tuesday for abusing 10 boys he met over 15 years through his charity for troubled children.

Danielle Leigh, Tom Winter and Michael Isikoff of NBC News contributed to this report by M. Alex Johnson and Kimberly Kaplan of NBC News. Follow M. Alex Johnson on Twitter and Facebook.

Sandusky — who was defensive coordinator and for many years the presumed heir-apparent to legendary Penn State football coach Joe Paterno — could have faced as long as 400 years for his convictions on 45 counts of child sexual abuse.

But McKean County Common Pleas Court Judge John Cleland, who was brought in to hear the trial after all of Centre County's judges recused themselves, told Sandusky that at age 68, he would be in prison "for the rest of your life."

"The crime is not only what you did to their bodies but to their psyches and their souls and the assault to the well-being of the larger community in which we all live," Cleland said.


Sandusky's lead attorney, Joe Amendola, told reporters outside court that he would file an appeal within 10 days, saying he hadn't had enough time to prepare an adequate defense.

Four of Sandusky's victims and the mother of a fifth addressed the court, some of them speaking tearfully to Sandusky. They told of how they had looked up at Sandusky as a mentor, only to have him betray their trust.

"You were the person in my life who was supposed to be a role model, teach honor, respect and accountability, and instead you did terrible things that screwed up my life," said one of the victims, whom NBC News isn't identifying. 

"You had the chance to plead guilty and spare us the testimony," he said. "Rather than take the accountability, you decided to try to attack us as if we had done something wrong."

Another said: "I have tried to think of the words to describe how Jerry Sandusky has impacted my life. There are no words adequate to express the pain and misery he has inflicted in the past, present and future.

Lead prosecutor Joseph McGettigan applauded the victims' courage to "speak truthfully" and condemned Jerry Sandusky for his unwillingness to accept responsibility.

"He promised to be my friend and mentor. Then came the ultimate betrayal and deeds. He humiliated me beyond description."

For his part, Sandusky — as he did in a surprise audio statement Monday night on the Penn State student radio station — insisted that "I didn't do these alleged disgusting acts."

Saying he had been advised against speaking at length, Sandusky told Cleland that "as I began to relive everything, I remember my feelings. So many people were hurt, and my eyes filled with tears. It was a horrible time in life to witness, to listen to, be a part of."

Sandusky said he had "hope in my heart for a brighter day, not knowing when that day will come."

"Many moments I have spent looking for a purpose," he said. "Maybe it will help others — some vulnerable children who may have been abused may not be as a result of all the publicity — but I'm not sure about it. I would hope that it would happen. 

"I would cherish the opportunity to be a little candle for others as my life goes on as they have been a huge light to me."

After the hearing, Senior Deputy Attorney General Joseph McGettigan, who prosecuted the case for the state, called Sandusky's comments "banal self-delusion completely untethered from reality."

"It was, in short, ridiculous," he said.

Sandusky alleges massive conspiracy
Wearing a red prison jumpsuit and appearing notably thinner than before he was convicted in June, Sandusky was transported to Centre County Court from jail in a sheriff's patrol car shortly before the hearing. His wife, Dottie, was in attendance.

Jerry Sandusky spoke out from jail on the eve of his sentencing. NBC's Michael Isikoff reports.

Sandusky's statement echoed many of the ideas — some of them word for word — that he broached in his surprise statement Monday night, in which he blamed a widespread conspiracy among police, university administrators and the media for his conviction.

After the hearing, Amendola alluded to that theory, alleging that there was "an undercurrent" in some parts of state government to bring down Penn State because of the power Paterno had amassed in 46 years as head football coach. 

"Folks, my understanding is for years opponents had ongoing battles with the state Legislature over funding," Amendola said. "Penn State always held itself over and above" other state institutions, which rankled some officials, he said.

But in sentencing Sandusky on Tuesday, Cleland called that theory "unbelievable." 

Related: Full statement from Jerry Sandusky

Related: Audio of Sandusky's statement on Penn State student station ComRadio

In a statement, Penn State President Rodney Erickson said: "Our thoughts today, as they have been for the last year, go out to the victims of Jerry Sandusky's abuse. While today's sentence cannot erase what has happened, hopefully it will provide comfort to those affected by these horrible events and help them continue down the road to recovery."

The statement reflected how deeply the scandal rocked Penn State and Centre County.

Paterno, who was a revered figure representing integrity in college football, was fired Nov. 9 amid allegations that he didn't properly report concerns about Sandusky to authorities. He died in January at age 85.

University President Graham Spanier resigned in November. Athletic Director Tim Curley is on administrative leave, and Senior Vice President Gary Schultz retired. Curley and Schultz face separate trials on charges that they lied to a grand jury about what they knew.

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Penn State's storied football program, meanwhile, was fined $60 million by the NCAA and was stripped of all victories back to 1998.

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Pakistani Rights Activist, 14, Shot by Taliban - ABC News

Posted: 09 Oct 2012 09:06 AM PDT

Sometimes, defiance has rosy cheeks.

In an attack drawing widespread condemnation, a lone Taliban gunman today approached a crowded school bus in Pakistan's once-volatile Swat region and opened fire. His target: A 14-year-old girl who'd campaigned against the Taliban for the right to go to school.

Television footage showed Malala Yousafzai lying on a stretcher and being airlifted to a military hospital in Peshawar. The gunman approached the bus and asked whether anyone could identify Malala, according to local police.

When one of her schoolmates singled out the teen, the gunman shot her twice, including once in the head. He also shot the girl who identified Malala before fleeing.

Malala is in serious condition, while the other girl's condition is unknown.

A Taliban spokesman has claimed responsibility, referring to her campaign for the right to go to school an "obscenity.

"This was a new chapter of obscenity, and we have to finish this chapter," Taliban spokesman Ahsanullah Ahsan said in a statement sent to The Associated Press. "We have carried out this attack."

The Pakistani Taliban are an offshoot of the insurgency movement in Afghanistan that operates along the lawless tribal belt that straddles the Afghan-Pakistan border. They share the same ideology as their Afghan counterparts, but focus their attacks mainly on pro-Western targets inside Pakistan.

Malala's courageous and public stance against the Taliban has earned her widespread acclaim, including being nominated last year for the International Children's Peace Prize.

"This was a shocking act of violence against a 14-year girl who has bravely been fighting for her right to education," Amnesty International said in a statement.

"This attack highlights the extremely dangerous climate human rights activists face in north-western Pakistan, where particularly female activists live under constant threats from the Taliban and other militant groups."

Malala's rise to prominence began in 2009, when she wrote a diary for BBC Urdu under a pseudonym chronicling the oppression she and other girls at her school faced at the hands of the Taliban. At the time, the Taliban had ordered the closure of all girls schools in the region.

Her father, who ran a private school, was forced to comply, leaving Malala and her friends with nowhere to study. In all, 50,000 girls were forced out of school in a matter of days.

In one blog post titled "Do not wear colourful dresses," Malala wrote about not wearing school uniforms, to avoid being detected by the Taliban.

"My friend came to me and said, 'For God's sake, answer me honestly, is our school going to be attacked by the Taleban [sic]?' During the morning assembly we were told not to wear colourful clothes as the Taleban would object to it."

Taliban militants first began flooding into Swat in 2007, forcing men to grow beards, prohibiting women from going to bazaars, and whipping and executing anyone accused of so-called immoral crimes.

Later, as the Pakistani military undertook an offensive to root out the Taliban from Swat valley -- a picturesque area 100 miles from the capital known for its lush green fields and waterfalls -- The New York times produced a two-part documentary chronicling her exile, and later, the family's return to what's left of their home.

Responding to today's attack, Pakistani Prime Minister Raja Pervez Ashraf said in a statement: "We have to fight the mindset that is involved in this. We have to condemn it.

"Malala is like my daughter, and yours too. If that mindset prevails, then whose daughter would be safe?"

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