Republican Senator: chances for “fiscal cliff” deal “exceedingly good”






WASHINGTON (Reuters) – Republican Senator Lindsey Graham said on Sunday that chances for a small “fiscal Cliff” deal in the next 48 hours were “exceedingly good” and that President Barack Obama had won.


“I think people don’t want to go over the cliff if we can avoid it,” Graham said on Fox News Sunday.






“This deal won’t affect the debt situation, it will be a political victory for the president and I hope we’ll have the courage of our convictions when it comes time to raise the debt ceiling to fight for what we believe as Republicans, but hats off to the president, he won,” Graham said.


(Reporting By Tabassum Zakaria; Editing by David Brunnstrom)


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We’re Paying Off Our Debts, At Least At Home






9fb37  chris farrell Were Paying Off Our Debts, At Least At Home


Had it with the so-called fiscal cliff? Wondering what comes next now that Republicans pulled the plug on House Speaker John Boehner’s Plan B? Take a break from the frenzy in Washington and ignore for the moment the federal government’s red ink. Focus instead on another balance sheet that isn’t getting enough attention: The household balance sheet. Over the past five turbulent years, despite high unemployment rates and falling median income, American households have reduced their debts and shored up their balance sheets. “The aggregate numbers show that households are back to being in pretty good shape,” says James W. Paulsen, chief investment strategist at Wells Capital Management. Adds Susan Lund, partner at the McKinsey Global Institute: “Households continue to make very good progress at deleveraging.”






Case in point: the drop in the financial obligations ratio. It measures the ratio of household debt payments to disposable personal income. The obligation side of the ledger includes mortgage and consumer debt payments, automobile leases, rental payments on tenant-occupied property, homeowners insurance, and property taxes. In other words, the gauge captures much of the typical household’s monthly outlay for debts. The ratio hit a record high of 18.88 in the fourth quarter of 2007, according to the Federal Reserve. In the third quarter of this year it had dropped to 15.74, about the level of the early 1980s. (The series starts in 1980.) The reduced strain on household financial resources reflects the impact of low interest rates and less debt.


To be sure, about two-thirds of the gain in household balance sheets has come through mortgage foreclosures and credit-card defaults. Nevertheless, household debt as a share of gross domestic product is currently at 83 percent, far below its peak of 97 percent of GDP in 2008. At the current pace of deleveraging, households could return to their long-term borrowing trend (1950 to 2000) by the second half of 2013, calculates McKinsey’s Lund.


Households should feel wealthier next year. Their net worth plunged a record-setting 25 percent during the Great Recession. The latest readings have household net worth a mere 2 percentage points shy of reversing the loss. That figure should improve with housing market sales and prices showing definite signs of life, especially with the drag from foreclosures lessening. Yes, the current foreclosure pipeline remains full, but the future looks less dire. The rate of mortgages delinquent by 90 days or more—mortgages clearly heading toward foreclosure—fell to 3.5 percent in September 2012, according to the latest data from Foreclosure-Response.org, a joint venture between Local Initiatives Support Corp., the Urban Institute, and the Center for Housing Policy. The number is sharply lower than the December 2009 high of 5.5 percent,


The deleveraging story goes far beyond the household. Corporate America is flush with cash, and the sector has slightly reduced its debt levels. The beleaguered financial services industry has taken far more draconian actions to create a healthier margin of safety.


Such aggressive balance-sheet cleansing by the household and business sectors isn’t all good. By saving more, they are spending less, reducing demand for goods and services. That could have doomed the economy to a severe downturn if not for the big offsetting budget deficits run by the federal government.


Now even the federal government is poised to make progress. Say what? You wouldn’t know it for all the talk of fiscal crisis in Washington, yet the federal deficit as a share of GDP is shrinking as the economy recovers. Specifically, the government deficit-to-GDP ratio reached 10.4 percent of nominal GD during the Great Recession. Despite the economy expanding at a tepid 2 percent average rate, the deficit-to-GDP ratio has shrunk to 6.9 percent. Even if the economy continues to expand at a slow 2 percent pace, says Paulson, it’s likely the government debt-to-GDP ratio will peak over the next 12 to 24 months. The odds favor the lower band of that range estimate if the pace of growth picks up. “We may be at the stage where if we follow historic trends, you see government debt on a path to decline,” says Lund. Paulsen is even more optimistic: “Over the next three years the fiscal issue will fade.”


Got that, Washington? The underlying dynamics of the economy are screaming on-the-mend, including a job market that’s slowly improving, a housing market with a pulse, and healthier private sector balance sheets. Economic optimism would be the watchword of the New Year if it weren’t for the damaging drama of the fiscal cliff. Main Street has done its part.


Everyone is deeply frustrated, but considering the political blunders of recent weeks, maybe the best thing Washington can do is calm down. Stop playing political Armageddon. Realize that grand bargains can do more economic harm than fiscal good. If you must, embrace some form of face-saving, kick-the-can-down the-road compromise. Thanks to the underappreciated health in household balance sheets, the political equivalent of doing nothing will let the economy grow and deleveraging to continue. Indeed, the surprise of 2013 could be how rapid the short-term improvement in the fiscal balance sheet turns out to be.


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Suspected US drone kills 3 al-Qaida men in Yemen






SANAA, Yemen (AP) — Three al-Qaida militants were killed in a suspected U.S. drone strike in southern Yemen, Yemeni security officials said, the fourth such attack this week and a sign attacks from unmanned aircraft are on the upswing in the country.


The officials said the three men were hit as they were riding in a Land Cruiser in el-Manaseh village on the outskirts of Radda in Bayda province. Dozens of local al-Qaida-linked fighters protested the drone strikes after traditional Islamic Friday prayers.






Earlier this week another suspected U.S. drone strike killed two militants in Radda itself, Yemeni security officials say, and seven were killed in two other strikes in the southeastern province of Hadramawt. Four suspected drone strikes a week is uncommon in Yemen.


According to statistics gathered by the Long War Journal before Saturday’s attacks, the United States “is known to have carried out 41 airstrikes” this year against al-Qaida in the Arabian Peninsula (AQAP), as the group’s branch in Yemen is known. That makes for an average of around three to four strikes per month.


The Journal, a product of the Foundation for Defense of Democracies that was founded by former U.S. officials, says that since December 2009, the CIA and the US military’s Joint Special Operations Command are known to have conducted at least 54 air and missile strikes inside Yemen, excluding Saturday’s suspected attack.


AQAP overran entire towns and villages — including Radda — last year by taking advantage of a security lapse during nationwide protests that eventually ousted the country’s longtime ruler. Backed by the U.S. military, Yemen’s army was able to regain control of the southern region but al-Qaida militants continue to launch deadly attacks on security forces that have killed hundreds.


Also on Saturday, two gunmen on a motorbike shot and killed an intelligence officer in the southeast, security officials said. They said that the officer, Mutea Baqutian, was on his way to work in Mukalla, capital of Hadramawt province, when the men stopped his car, gunned him down, and fled.


The government has blamed al-Qaida militants for similar assassinations of several senior military and intelligence officials this year. The bullet-riddled body of Major al-Numeiry Abdo al-Oudi, deputy director of the security department of al-Qitten in Hadramawt, was found in the town’s suburbs last week. He had been kidnapped earlier in the month.


All officials spoke on condition of anonymity according to regulations.


Meanwhile, Maj. Gen. Ahmed Seif, who is commander of Yemen’s central military region, said the Defense Ministry has deployed an infantry brigade in the northeastern province of Marib to stop armed tribesmen who maintain cordial ties with al-Qaida from attacking oil pipelines and power generating stations, as well as to counter al-Qaida militants.


State TV meanwhile aired a meeting between President Abed Rabbo Mansour Hadi and eight Yemeni sailors who were rescued last week by forces of Somalia’s semiautonomous Puntland region after being held for nearly three years by Somali pirates.


The Puntland government says that its forces captured the hijacked Panama-flagged MV Iceberg 1 on Sunday after a siege that lasted two weeks. They freed the eight Yemeni sailors together with five Indians, two Pakistanis, four Ghanaians, two Sudanese and a Filipino. The ship was hijacked March 29, 2010.


Hadi congratulated the eight sailors for their safety and ordered the government to compensate them for their suffering.


Eqbal Yassin, a relative of one of the freed sailors, told The Associated Press that the hijackers had allowed some sailors to phone their relatives and convey the pirates’ demand for $ 5 million ransom. He said he was told by his relative that the hijackers killed a Yemeni sailor who tried to escape. He gave no further details.


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Nintendo’s Wii U wobbles as sales sink






According to Famitsu, Nintendo’s (NTDOY) portable 3DS console continued to see huge success during the week ahead of Christmas. It racked up sales of 433,000 units in Japan, up from 333,000 units in the prior week. But weirdly enough, the brand new and heavily promoted Wii U home console wobbled badly as its weekly sales slipped to 122,000 units from 130,000 units in the previous week. This may have been the biggest week in Japanese console market in 2012, so the stakes were high.


[More from BGR: Google names 12 best Android apps of 2012]






To put Wii U performance in context, the old PSP portable console sold 58,000 units in Japan during the same week. It is not an encouraging sign that the more than half-decade old PSP (which was displaced by the PlayStation Vita a year ago) managed to sell nearly half as many units as the brand new Wii U during the holidays. Of course, PS Vita continues to miss sales expectations dramatically — it sold only 19,000 units last week, barely more than a quarter of what its predecessor managed.


[More from BGR: Smartphones will replace keys on upcoming Hyundai cars]


Wii U performance may improve dramatically once compelling titles arrive. But during December, it did have “New Super Mario Brothers” and “Nintendo Land” to boost it in Japan. This clearly wasn’t enough. The aging PlayStation 3 sold only 30,000 units and Microsoft’s (MSFT) Xbox 360 barely cleared a thousand units, so the Wii U should have had a clear shot at strong sales performance in the Japanese home console market.


Overall, Japanese game console sales were down sharply from the week ahead of Christmas in 2011. The 3DS is a big hit in 2012 but instead of buoying the entire console market, it seems to be sapping energy from the Wii U and PS Vita.


It’s still early days for the Wii U, but Nintendo has probably started sweating a bit.


This article was originally published by BGR


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Piano maker Steinway takes down “for sale” sign






NEW YORK (Reuters) – Steinway Musical Instruments Inc, the famous manufacturer of pianos, saxophones and trumpets, said on Wednesday it had decided not to sell itself following a 17-month-long exploration of strategic alternatives.


An American icon synonymous with handmade grand pianos, Steinway has struggled to keep its production margins competitive amid stagnant sales, and has seen its shares plunge 10 percent year-to-date. Still, its third-quarter earnings last month offered signs that cost-cutting was paying off.






In a statement on Wednesday, Steinway said it had received several non-binding indications of interest in buying the company, following talks with other companies in the sector as well as private equity, yet these did not offer more value than its own strategic plan.


“We will continue to focus management’s efforts on execution of that plan and we look forward to a prosperous 2013,” Steinway CEO Michael Sweeney said in the statement.


An in-principle agreement to sell its band instrument division to an investor group led by two of its board members, Dana Messina and John Stoner, was also scrapped in light of the current operating performance of the band division, Steinway said.


In July 2011, Messina, Stoner and other members of management made an offer for Steinway’s band instrument and online music divisions, prompting the company to set up a special committee in order to assess it.


Later that month, Steinway asked investment bank Allen & Company LLC to a assist the special committee on exploring strategic alternatives that could also include selling the whole company outright to other interested parties.


By October 2011, Messina had stepped down as CEO of the company after 15 years at the helm to pursue his bid, yet he remained a board member. He was replaced by Sweeney, a chairman of the board of Star Tribune Media Holdings and a former president of Starbucks Coffee Company (UK) Ltd.


Steinway said on Wednesday that it was continuing a separate process to sell its leasehold interest in New York’s Steinway Hall building, situated on Manhattan’s 57th Street, and was in talks with several parties.


According to its website, Steinway & Sons, the company’s piano unit, opened the first Steinway Hall on 14th Street in Manhattan in 1866.


With a main auditorium of 2,000 seats, it became New York City’s artistic and cultural center, housing the New York Philharmonic until Carnegie Hall opened in 1891. These days, Steinway Hall is a showroom for the company’s instruments.


The Waltham, Massachusetts-based company’s pianos have been used by legendary artists such as Cole Porter and Sergei Rachmaninoff and by contemporary ones like Chinese concert pianist Lang Lang.


(Reporting by Greg Roumeliotis in New York; Editing by M.D. Golan)


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MSF warns Kenya not to send more refugees to stricken camp






LONDON (Reuters) – Conditions in a camp for Somali refugees in Kenya are deplorable and a government plan to send in thousands more would pose a major risk to health, medical charity Medecins Sans Frontieres (MSF) said on Friday.


Kenya has more than half a million refugees from Somalia, which has lacked an effective central government since the outbreak of civil war in 1991.






A series of bombings, shootings and hand-grenade attacks blamed on Somali militants prompted the government on December 18 to stop registering asylum seekers and refugees in urban areas.


A Kenyan official said more than 100,000 refugees must now head to the remote Dadaab camp in the country’s remote north. Amnesty International said the order breached international law.


Dadaab camp was set up 20 years ago and already houses four times the population it was built for. Hunger and disease outbreaks are common.


MSF says its inhabitants suffer from overcrowding and poor sanitation that recent floods had worsened.


“The assistance provided here in Dadaab is already completely overstretched and is not meeting the current needs,” said Elena Velilla, MSF’s head of mission in Kenya.


In the last month, the number of children admitted to Dadaab’s hospital for severe acute malnutrition has doubled to around 300, MSF said. Sixty-three of those were taken to intensive care this week after developing serious complications.


Most of the sick are also suffering from acute watery diarrhea or severe respiratory tract infections, MSF said.


(Reporting by Kate Kelland; Editing by Tom Pfeiffer)


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C. African Republic president seeks foreign help






BANGUI, Central African Republic (AP) — The president of Central African Republic on Thursday urgently called on France and other foreign powers to help his government fend off rebels who are quickly seizing territory and approaching the capital, but French officials declined to offer any military assistance.


The developments suggest Central African Republic could be on the brink of another violent change in government, something not new in the history of this resource-rich, yet deeply impoverished country. The current president, Francois Bozize, himself came to power nearly a decade ago in the wake of a rebellion.






Speaking to crowds in Bangui, a city of some 600,000, Bozize pleaded with foreign powers to do what they could. He pointed in particular to France, Central African Republic’s former colonial ruler.


About 200 French soldiers are already in the country, providing technical support and helping to train the local army, according to the French defense ministry.


“France has the means to stop (the rebels) but unfortunately they have done nothing for us until now,” Bozize said.


French President Francois Hollande said Thursday that France wants to protect its interests in Central African Republic and not Bozize’s government. The comments came a day after dozens of protesters, angry about a lack of help against rebel forces, threw rocks at the French Embassy in Bangui and stole a French flag.


Paris is encouraging peace talks between the government and the rebels, with the French Foreign Ministry noting in a statement that negotiations are due to “begin shortly in Libreville (Gabon).” But it was not immediately clear what, if any, dates have been set for those talks.


French Foreign Minister Laurent Fabius, meanwhile, spoke via phone with Bozize, asking the president to take responsibility for the safety of French nationals and diplomatic missions in Central African Republic.


U.S. officials said Thursday the State Department would close its embassy in the country and ordered its diplomatic team to leave. The officials spoke on condition of anonymity because they were unauthorized to discuss the evacuation publicly.


The United Nations Security Council issued a press statement late Thursday reiterating its concern about the situation in the country and condemned the attacks.


“The members of the Security Council reiterate their demand that the armed groups immediately cease hostilities, withdraw from captured cities and cease any further advance towards the city of Bangui,” the statement reads.


Bozize’s government earlier reached out to longtime ally Chad, which pledged to send 2,000 troops to bolster Central African Republic’s own forces. But it was unclear if the Chadian troops had all arrived, and even then, it is far from certain if the combined government forces could withstand rebel attacks.


At least four different rebel groups are involved, though their overall numbers could not immediately be confirmed.


Central African Republic, a landlocked nation of some 4.4 million people, is roughly the size of France. It has suffered decades of army revolts, coups and rebellions since gaining independence in 1960 and remains one of the poorest countries in the world.


The rebels behind the most recent instability signed a 2007 peace accord allowing them to join the regular army, but insurgent leaders say the deal wasn’t fully implemented.


Already, the rebel forces have seized at least 10 towns across the sparsely populated north of the country, and residents in the capital now fear the insurgents could attack at any time, despite assurances by rebel leaders that they are willing to engage in dialogue instead of attacking Bangui.


The rebels have claimed that their actions are justified in light of the “thirst for justice, for peace, for security and for economic development of the people of Central African Republic.”


Despite Central African Republic’s wealth of gold, diamonds, timber and uranium, the government remains perpetually cash-strapped. Filip Hilgert, a researcher with Belgium-based International Peace Information Service, said rebel groups are unhappy because they feel the government doesn’t invest in their areas.


“The main thing they say is that the north of the country, and especially in their case the northeast, has always been neglected by the central government in all ways,” he said.


But the rebels also are demanding that the government make payments to ex-combatants, suggesting that their motives may also be for personal financial gain.


Bozize, a former military commander, came to power in a 2003 rebel war that ousted his predecessor, Ange-Felix Patasse. In his address Thursday, Bozize said he remained open to dialogue with the rebels, but he also accused them and their allies of financial greed.


Those allies, he implied, are outside Central African Republic.


“For me, there are individuals who are being manipulated by an outside hand, dreaming of exploiting the rich Central African Republic soil,” he said. “They want only to stop us from benefiting from our oil, our diamonds, our uranium and our gold.”


___


Larson reported from Dakar, Senegal. Associated Press writer Sarah DiLorenzo in Paris contributed to this report.


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So You Just Got a Wii U. Now What?






Pair It With Your TV


One of the most useful features of the Wii U — and what could make it a staple of our connected living rooms — is its ability to hook in to the entertainment ecosystem seamlessly. When you start up your Wii U for the first time, you’ll be prompted to enter your television and cable box brands. In a surprisingly painless process (you only need the brand name of your TV, not the model number), your Wii U GamePad becomes a very useful remote control. It will be the only thing you have to touch when turning your system and television on in the future. When the Wii U’s television and video on demand aggregation dashboard comes fully online, that remote will be even more useful as you use it select shows on your DVR, video-on-demand services like Netflix, or live TV.


Click here to view this gallery.






[More from Mashable: 10 iPad Cases With Convenient Hand Grips]


Since the holiday gift-giving period is over, many of you might be fortunate enough to have received a brand new Wii U.


Nintendo’s latest console is quite different from other gaming consoles, and there are lots of great ways for you to take advantage of it. There are already a wide variety of games coming out for the Wii U, so you have a plethora of entertainment options as soon as you take it out of the box.


[More from Mashable: 8 Startups to Watch in 2013]


We’ve compiled a list of tips for first-time Wii U owners that should make your setup and first few days much easier. We’ve included a few games to try, as well.


Are you setting up a Wii U for the first time? Share any of your thoughts and tips in the comments.


Thumbnail image courtesy nubobo, Flickr.


This story originally published on Mashable here.


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British actress Kate Winslet marries for third time






LONDON (Reuters) – British Oscar-winning actress Kate Winslet has married for the third time, her publicist confirmed on Thursday.


The 37-year-old, best known for her starring role in the 1997 blockbuster “Titanic”, married Ned RocknRoll, a nephew of music and aviation tycoon Richard Branson.






The private ceremony was attended by Winslet’s two children from previous marriages and “a very few friends and family”, according to the publicist, and took place in New York earlier this month.


“The couple had been engaged since the summer,” Winslet’s spokeswoman said in a statement.


Winslet has been nominated for six Academy Awards and won once for her lead role in “The Reader”.


Her other notable performances include Iris Murdoch in “Iris”, Clementine Kruczynski in “Eternal Sunshine of the Spotless Mind” and April in “Revolutionary Road“.


That film was directed by Sam Mendes, whom Winslet wed in 2003 and divorced seven years later. Her first marriage was to Jim Threapleton, which lasted from 1998 to 2001.


According to online reports, RocknRoll had his name changed by deed poll from Ned Abel Smith and is an executive for Branson’s space flight venture Virgin Galactic.


The Sun newspaper said the New York wedding was so secret that even the couple’s parents did not know about it.


Hollywood actor Leonardo DiCaprio, who co-starred with Winslet in Titanic and Revolutionary Road, gave her away, the newspaper said.


(Reporting by Mike Collett-White; editing by Steve Addison)


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Obama heads back to Washington as “cliff” deadline nears






WASHINGTON (Reuters) – President Barack Obama was flying back to Washington on Thursday and the top Republican in Congress planned to speak with House of Representatives lawmakers as the clock ticked toward a year-end deadline for action to avert the looming “fiscal cliff” tax hikes and spending cuts.


Markets around the world awaited action in Washington to prevent tax hikes on nearly all Americans and the deep automatic government spending cuts due to kick in at the beginning of next month that could push the U.S. economy back into recession.






Such action, however, remained far from certain, with Republicans and Democrats each insisting the other side move first amid continuing partisan gridlock.


Air Force One carrying Obama from Hawaii took off at about 3 a.m. EST for a journey that can take nearly half a day.


The U.S. Senate was scheduled to meet later on Thursday but on matters unrelated to the “fiscal cliff.” The Democrats control the Senate and the Republicans control the House.


Senate Majority Leader Harry Reid on Wednesday said through a spokesman that the Senate was ready to consider any bills coming from the House but would take no action on its own.


Speaker John Boehner and other House Republican leaders, who said on Wednesday they were willing to take up a “fiscal cliff” measure only after the Senate acts on one, planned a conference call with Republican House members on Thursday.


The expectation for the call was that lawmakers would be told to get back to Washington within 48 hours to consider anything the Senate might pass.


Weather permitting, that would bring them to Washington with perhaps three days left before the deadline for action. Storms affecting the Midwest, the South and the Northeast played havoc with airline schedules.


“This isn’t a one party or one house problem. This is (that) leaders in both parties in all branches of the government are not willing to make the deal that they know they have to make. Everybody wants their stuff but doesn’t want to give up what they don’t want to give up,” Republican U.S. Representative Steven LaTourette told CNN on Thursday.


The House and Senate passed bills months ago reflecting their own sharply divergent positions on the expiring low tax rates, which went into effect during the administration of Republican former President George W. Bush.


‘ALL TOO SLOWLY’


Democrats want to allow the tax cuts to expire on the wealthiest Americans. Republicans want to extend the tax cuts for everyone.


“We’re in an economy now that is fragile – still recovering, all too slowly. These tax cuts must be extended for the middle class. We need to protect the middle class from that huge tax increase,” Democratic Senator Richard Blumenthal told CNN.


While Obama and congressional leaders have said that they are willing to negotiate, no substantive discussions are known to have taken place over the holidays and the gap between them appears to remain.


A senior Obama administration official told reporters traveling with Obama that Republican leaders in Congress should step up to head off the looming tax and spending hit.


Congress has proven that it can act swiftly once an agreement is reached. Hope persisted that Republicans and Democrats might come up with a resolution before New Year’s Day that might at least postpone the impact of the tax hikes and spending cuts while further discussions take place.


On that basis, world shares and the euro edged higher on Thursday.


“There is still hope for a last-minute deal, otherwise we’re in for a correction in January. People have already priced in an agreement. Without it, the market can’t stay at these levels,” a Paris-based trader said.


Another battle is just over the horizon in late January or early February over raising the debt ceiling, which puts a limit on the amount of money the U.S. government can borrow to pay its debts and can be raised only with the approval of Congress.


Republican leaders have said they will insist on more budget cuts as a condition of raising the ceiling. Without any action, the U.S. Treasury said on Wednesday the government is set to reach its $ 16.4 trillion debt ceiling on December 31.


The Treasury Department said in a statement it would begin “extraordinary measures” to buy time. Many analysts believe the government can stave the default date off into late February.


(Additional reporting by Doina Chiacu and Alina Selyukh; Editing by Will Dunham)


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