Saturday, January 7, 2012

US automakers' 2011 sales show turnaround

By Msnbc.com staff and wire

Detroit's Big Three automakers, GM, Chrysler and Ford, posted solid sales in 2011, showing how the rubber has begun to hit the road for auto demand after a long hiatus.

Chrysler said Wednesday its U.S. sales rose 26 percent last year, while Ford reported an 11 percent sales gain thanks to good demand for trucks and SUVs. GM said its U.S. sales rode 13 percent.

Chrysler?ended the year with a 37 percent increase in December sales on strong demand for the Jeep Wrangler and Chrysler 200 sedan.

Ford sold 2.1 million vehicles last year, a sign of the industry's continuing recovery. It was the first time the Ford brand has passed the 2 million mark since before the recession in 2007.

GM sold just over 2.5 million new cars and trucks in the U.S. Its December sales rose nearly 5 percent from a year earlier.

The Chevrolet Cruze compact and the Chevrolet Silverado and GMC Sierra pickup trucks led sales.

Strong sellers for Ford included the new?Explorer SUV, which more than doubled sales from 2010. The Escape small SUV and Ranger small pickup also posted big increases.

Ford's car sales rose 4 percent. Sales of the Fiesta subcompact nearly tripled over 2010, but Ford didn't get much traction with its new Focus small car.

Ford's Lincoln brand sales were flat.

Ford says December sales climbed 10 percent over the same month last year.

After hitting a 30-year low in 2009, U.S. auto sales are poised for a second straight year of growth -- the result of easier credit, low interest rates and pent-up demand for cars and trucks created by the Great Recession.

The sales forecast bodes well for the industry's continued recovery and for the broader American economy.

In 2009, Detroit automakers were in peril. Car sales plunged as unemployment soared, and loans became harder to get. Chrysler and General Motors filed for bankruptcy protection. Ford avoided bankruptcy only by borrowing billions.

Now credit is more available, interest rates are low and Americans need to replace old cars and trucks they kept during and after the downturn. Millions of drivers in their teens and 20s are expected to buy vehicles, too. That could mean more jobs, more factory shifts and overall growth.

The Associated Press and Reuters contributed to this report.

Source: http://bottomline.msnbc.msn.com/_news/2012/01/04/9945534-us-automakers-2011-sales-show-turnaround

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Friday, January 6, 2012

EU criticizes Belgian budget, sees more austerity (AP)

BRUSSELS ? The European Commission has criticized Belgium's 2012 budget as too optimistic, indicating that the country has to adopt more austerity measures or risk sanctions.

The country's finance minister quickly reacted to the Commission's intervention, saying Friday that the government was determined to meet its fiscal targets this year.

Belgium has promised to cut its budget deficit to 2.8 percent of economic output this year, from around 3.6 percent in 2011. But the Commission, the European Union's executive, believes the Belgian government won't be able meet this target unless tax revenues or spending cuts are increased.

The Commission's criticism of the budget is a particularly sensitive issue in Belgium, where political parties needed more than one and a half years to set up a government, which was finally sworn in in December.

Prime Minister Elio Di Rupo had to balance the demands of the country's strong Dutch-speaking community, which has been demanding more financial autonomy, and the French-speaking region, which is weaker economically.

But Belgium has one of the highest debt loads in the eurozone and analysts fear that it risks being dragged into the currency union's debt crisis. Under EU rules, Belgium has to bring its deficit below 3 percent of GDP and spell out how it plans to reduce it debt to below 60 percent of GDP over the long-term, from about 100 percent currently.

"It is normal that the Commission is asking us questions," Belgian Finance Minister Steven Vanackere told reporters outside the government offices. "The budget was set up at the end of the year at high speed. It was not the normal way to do things."

He stressed that the government would strive to get its deficit below the 3 percent limit this year. "Belgium has not plans to skirt its responsibilities," Vanackere said. "We want to ? also for ourselves and not for Europe ? make sure that the deficit gets under the 3 percent."

The EU's Economic Affairs Commissioner Olli Rehn last fall threatened to hit Belgium ? along with Malta and Cyprus countries ? with sanctions under the bloc's new, stricter budget rules. Two non-euro countries ? Hungary and Poland ? were also suspected of overspending, but they would not face financial penalties.

A spokesman for the Commission said Friday that Rehn's office was seeking clarification from the governments of all five countries to assess whether their estimates for both revenue and expenditure estimates were "credible." No decision on sanction had been taken yet, he said, but added that it could come very soon.

The EU's executive has been taking a much more active role in policing member states' budgets after lackluster enforcement of the bloc's budget rules allowed countries like Greece or Italy run up high debts.

Under the new sanctions regime, a country that is not doing enough to reduce its deficit and debt will have to pay an interest-bearing deposit of 0.2 percent of GDP, which could eventually be turned into a fine. The new rules also make it harder for countries to block sanctions against their partners.

Julien Manceaux, an economist at ING in Brussels, said the intervention from the Commission did not come as a surprise, adding that the Belgian government is already set to re-examine this year's budget in February.

"The Belgian deficit is among the lowest in the eurozone anyway so it is certainly not a reason to panic," he said. "But it is for sure that markets will keep an eye on the decisions that will be taken again in 2012 to stabilize debt trajectory."

__

Raf Casert and Mark D. Carlson contributed to this article.

Source: http://us.rd.yahoo.com/dailynews/rss/eurobiz/*http%3A//news.yahoo.com/s/ap/20120106/ap_on_bi_ge/eu_belgium_financial_crisis

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Tuesday, December 6, 2011

Planning Afghanistan's future beyond 2014 (AP)

BERLIN ? A global conference in Germany to discuss Afghanistan's future beyond 2014 comes as the country faces political instability, an enduring Taliban-led insurgency and possible financial collapse following the planned drawdown of international troops and foreign aid.

About 100 countries and international organizations will be represented at the Monday gathering, with some 60 foreign ministers in attendance, among them U.S. Secretary of State Hillary Rodham Clinton.

But one of the most important countries for Afghanistan's future, its eastern nuclear-armed neighbor Pakistan, said it will boycott the conference to protest last month's NATO air assault carried out from Afghan territory that killed 24 Pakistani soldiers.

Pakistan is seen as crucial player in the region because of its links and influence on insurgent groups that are battling Afghan government and foreign troops and that sometimes use Pakistan as a base for their operations.

The Bonn conference is expected to address the transfer of security responsibility from international forces to Afghan security forces over the next three years, long-term prospects for international aid and a possible political settlement with the Taliban.

"Our objective is a peaceful Afghanistan that will never again become a safe haven for international terrorism," German Foreign Minister Guido Westerwelle said.

The U.S. had once hoped to use the Bonn gathering to announce news about the prospect for peace talks with the Taliban, but neither an Afghan nor a U.S. outreach effort has borne fruit.

The reconciliation efforts suffered a major setback after the September assassination of former Afghan President Burhanuddin Rabbani, who was leading the Afghan government's effort to broker peace with the insurgents.

But Washington and other partners are still trying to arrange an interim step toward talks ? the opening of a Taliban diplomatic office where its representatives could conduct international business without fear of being arrested or killed. Such a deal would be a minor accomplishment for the Bonn gathering.

"Right now we don't know their address. We don't have a door," to knock on, said Afghanistan's ambassador to the U.S., Eklil Hakimi.

The final declaration of the Bonn conference is expected to outline broad principles and red lines for the political reconciliation with the Taliban, a project that several leading participants in the conference increasingly predict will outlast the NATO timeline for withdrawal in 2014.

The Bonn conference also seeks to agree on a set of "mutual binding commitments" under which Afghanistan would promise reforms and policy goals such as good governance, with donors and international organizations pledging long-term assistance in return to ensure the country's viability beyond 2014, a senior German diplomat said.

"It's about not repeating the mistakes of 1989, when the Soviet troops left and the West also forgot about Afghanistan," he said, referring to the bitter civil war that unfolded soon after the sudden withdrawal that was followed by the collapse of the Soviet Union.

Afghan President Hamid Karzai, German Chancellor Angela Merkel and U.N. Secretary-General Ban Ki-moon will formally open the one-day conference of about 1,000 delegates. Afghanistan's western neighbor Iran also joins the conference, represented by Foreign Minister Ali Akbar Salehi.

Afghan civil society groups are meeting on the sidelines, and some 5,000 protesters were out in Bonn's streets Saturday, urging an end to the Afghan war.

While the conference is nominally run by the Afghans and organized by Germany, the United States is the key participant because it's the country that has by far invested the most blood and treasure in Afghanistan since 2001.

The NATO coalition of 49 countries currently has 130,000 troops in the country, including about 72,000 Americans. The U.S. military footprint in Afghanistan, however, totals more than 101,600 because other American forces operate under a separate command. The vast majority are set to withdraw from Afghanistan over the next three years, leaving only a small force focused on training and counterterrorism missions beginning in 2015.

President Barack Obama announced this summer that 10,000 U.S. troops will come home by the end of the year. Another 23,000 will be pulled out by the end of September 2012. Those troops represent the 33,000 reinforcements that Obama sent in to help reverse the Taliban's momentum, leaving a force of about 68,000 U.S. forces, which will gradually shrink as the deadline for withdrawal approaches.

That deadline was set a year ago, by agreement between NATO and Afghanistan. There is little chance it will be extended.

The U.S. had also hoped to use this opportunity to unveil an agreement with the Afghan government establishing operating rules for the small number of remaining U.S. forces and other issues after international forces withdraw. But talks on the deal have bogged down over the past several months.

Although the Bonn gathering is not a donors' conference where specific pledges are expected, the U.S. is seeking agreement among other nations that they will not rush to the exits and commit to long-term financial assistance to avoid seeing Afghanistan slip back into chaos.

The international troops' withdrawal could indeed cause the Afghan economy to collapse, the World Bank warned last month, stressing that the war-ravaged nation will need billions of dollars in aid for another decade or more.

Afghanistan this year received $15.7 billion in aid, representing more than 90 percent of its public spending, it said.

In a report published ahead of the conference, the Afghan government said that despite expected revenue increases from a growing mining industry, customs and taxes, foreign donors will have to finance about half of the country's economic output in 2015, equivalent to aid worth $10 billion.

Despite the international troops' presence for more than a decade, Afghanistan still ranks among the world's poorest and most corrupt nations.

Without foreign help, Afghanistan won't be able to pay for basic services needed by its security forces which are slated to increase to 352,000 personnel by the end of 2014. Those expenses will have grown to twice the size of revenues and will result in a shortfall of about $7.8 billion annually, or about 25 percent of the country's gross domestic product in 2021.

"There will be a gap from when international forces withdraw, and we want to see a plan," for filling it, Hakimi said.

Although the United States has spent $444 billion in Afghanistan since it invaded the country in late 2001 after the Sept. 11 terrorist attacks, and plans to spend $101 billion in fiscal 2011, most of that money "does not reach Afghanistan because it primarily funds salaries of international soldiers, purchases of military hardware, and the like," the World Bank said.

Despite improvements to security in Afghanistan, militants operating from safe havens in Pakistan and chronic problems with the Kabul government pose significant risks to a "durable, stable Afghanistan," according to a recent Pentagon progress report on the country.

___

Deb Riechmann in Kabul contributed to this report.

Source: http://us.rd.yahoo.com/dailynews/rss/topstories/*http%3A//news.yahoo.com/s/ap/20111204/ap_on_re_eu/afghanistan_conference

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George McGovern in stable condition after SD fall

(AP) ? Former Democratic presidential candidate George McGovern was alert, comfortable and in stable condition at a South Dakota hospital Saturday after hitting his head during a fall, hospital officials said.

The 89-year-old former U.S. senator was taken by helicopter to a Sioux Falls hospital late Friday after falling outside Dakota Wesleyan University's McGovern Library in Mitchell. A school official said McGovern hit his head on the pavement about two hours before he was scheduled to appear on a live C-SPAN cable television interview at the library.

"Senator McGovern is alert and resting comfortably but, as with any head injury, it is important that we observe the situation closely," Dr. Michael Elliott, chief medical officer at Avera McKennan Hospital & University Health Center, said in a written statement Saturday.

The statement said McGovern was in stable condition, though no other details were released. The hospital said his family was asking for privacy.

The former South Dakota senator has lived in St. Augustine, Florida, since 2008 but also has a home in Mitchell.

Friends and faculty who had gathered at the library for the C-SPAN taping said McGovern fell at about 5:15 p.m. Friday. McGovern was "bleeding profusely" but was conscious and talking as he was taken from the university by ambulance, said Donald Simmons, dean of the College of Public Service.

McGovern's daughter, Ann, was with her father before he was taken to the Sioux Falls hospital. She said Friday that the injury was unrelated to her father's hospitalization in late October for exhaustion.

University President Robert Duffett said McGovern had been excited to take part in the C-SPAN program "The Contenders," which focuses on failed presidential candidates who changed the landscape of American politics. McGovern lost his 1972 presidential bid against President Richard Nixon, who eventually resigned amid the Watergate scandal.

Duffett said he had coffee with McGovern just hours before the fall and that McGovern was returning to the campus to grab dinner with faculty before the interview.

McGovern was entering a side door when he "tripped and fell and hit his head hard," Duffett said. "It's just one of those things. He's made that walk many times before."

McGovern has an office inside the library, which is named for him and his late wife, Eleanor.

C-SPAN went ahead and aired the segment on McGovern, with program host Amity Shlaes interviewing political experts and journalists to analyze McGovern's presidential campaign. Shlaes said on air that McGovern had taken "a spill" and wasn't able to be on the program as planned, but she said he was fine.

McGovern was elected to his first of three terms in the Senate in 1962. Though he later lost the presidential race to Nixon, he continued to distinguish himself during his political career and was a lifelong advocate for U.S. and world food programs.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/3d281c11a96b4ad082fe88aa0db04305/Article_2011-12-03-McGovern%20Hospitalized-Fall/id-c16e11407b8f423dbd34cb6e4aad32c6

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Saturday, December 3, 2011

Video: Missing in Paradise, Part 3

Dateline NBC

'Dateline NBC,' the signature broadcast for NBC News in primetime, premiered in 1992. Since then, it has been pioneering a new approach to primetime news programming. The multi-night franchise, supplemented by frequent specials, allows NBC to consistently and comprehensively present the highest-quality reporting, investigative features, breaking news coverage and newsmaker profiles.

Source: http://www.msnbc.msn.com/id/3032600/vp/45531998#45531998

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Bachmann opposes payroll tax cut extension

Marsha Horwitz, of Dubuque, right, talks with Michele Bachmann as she visited River Lights 2nd Edition to promote her book, "Core of Conviction" in Dubuque, Iowa, on Friday, Nov. 25, 2011. (AP Photo/The Telegraph Herald, Mike Burley)

Marsha Horwitz, of Dubuque, right, talks with Michele Bachmann as she visited River Lights 2nd Edition to promote her book, "Core of Conviction" in Dubuque, Iowa, on Friday, Nov. 25, 2011. (AP Photo/The Telegraph Herald, Mike Burley)

CEDAR FALLS, Iowa (AP) ? Minnesota Rep. Michele Bachmann says she'll fight any effort to extend the payroll tax cut on the verge of expiring.

Bachmann says President Barack Obama proposed the tax cut to create jobs, but says it's failed in that effort. The Republican presidential hopeful says instead, the tax cut has punched a big hole in the federal budget and threatens programs like Social Security, which benefit the elderly.

She conceded there can be some political risks of her position.

The tax cut is set to expire Dec. 31, raising taxes by about $1,000 on the average household unless Congress and Obama act.

Some congressional Republicans say they'd extend the tax cut if spending cuts are found to pay for the extension.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/89ae8247abe8493fae24405546e9a1aa/Article_2011-11-30-Bachmann-Payroll%20Tax/id-0d9d411b84114dfc8e4c88bc4ee9ed8d

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Friday, December 2, 2011

Gingrich's unpredictability raises concerns

Republican presidential hopeful former House Speaker Newt Gingrich speaks at the annual meeting of the Iowa Association of Electric Cooperatives, Thursday, Dec. 1, 2011, in West Des Moines, Iowa. (AP Photo/Charlie Neibergall)

Republican presidential hopeful former House Speaker Newt Gingrich speaks at the annual meeting of the Iowa Association of Electric Cooperatives, Thursday, Dec. 1, 2011, in West Des Moines, Iowa. (AP Photo/Charlie Neibergall)

(AP) ? At last, Rep. Phil Gingrey thought as he watched the most recent presidential debate. His candidate, Newt Gingrich, had moved beyond scolding journalists to talking ideas and looking like a contender. But then Gingrich seemed to embrace a form of amnesty for illegal immigrants. And Gingrey, who opposes amnesty like most conservatives, froze.

"I thought, 'Aw, I hope he's not really saying that," recalled Gingrey, R-Ga.

Unpredictability is as much a part of Gingrich as his signature snowy mane, a quality that has vexed anyone who has supported him for anything ? be it speaker of the House or president of the United States. The history professor from Georgia may have, as he claims, matured over three dramatic decades in public life. But one constant is a mercurial personality.

For many Republicans, it's a source of inspiration, charm and excitement in a year when conservatives are still looking for an alternative to former Massachusetts Gov. Mitt Romney and have driven Gingrich into the top tier of contenders for the GOP nomination.

Gingrich won a place in the history books as the force behind the 1994 Republican takeover of Congress. As speaker, he racked up some bipartisan trophies by working with President Bill Clinton to balance the budget and change the welfare system.

But melodrama has followed Gingrich up and down and back up the ladder of success, enough to raise the question in 2012: How steadily would Gingrich, a 68-year-old grandfather and Catholic convert on his third marriage, guide a nation hungry for confidence in its leaders and jittery over the stuttering economy?

"I don't claim to be the perfect candidate," Gingrich told WSC-FM this week. "I just claim to be a lot more conservative than Mitt Romney and a lot more electable than anyone else."

Gingrey agrees. But Gingrich's remarks on immigration left him with questions.

"I don't see how the party that says it's the party of the family is going to adopt an immigration policy which destroys families which have been here a quarter-century," Gingrich said in the Republican debate. "I'm prepared to take the heat for saying let's be humane in enforcing the law."

On the one hand, Gingrey suggested, if that's the way Gingrich really feels about the issue, then saying so, rather than avoiding it, was "gutsy." And it may have drawn a useful contrast with Romney.

On the other, there's uncertainty: What is his position on the issue? After all, he has flip-flopped on other issues ? Medicare, Libya, health care reform and global warming.

"I hope he set the stage for us looking very hard at making sure we have a temporary worker program that's viable and has absolutely no hint of amnesty," Gingrey said in a telephone interview this week. "I need to have a conversation with him about that."

Gingrich has since said he was calling for a path toward legal residency ? not citizenship ? for illegal immigrants who have lived here peacefully for generations.

By any measure, stability is scarce on Gingrich's resume. During his speakership there were two government shutdowns, a well-publicized snit over his seating on Air Force One, his push for Clinton's impeachment while in an extramarital affair of his own, and lieutenants plotting his overthrow.

In 1998, shortly after winning re-election, Gingrich announced in a closed GOP caucus meeting that he would "bench" himself, and left Congress.

Throughout, there's been petulance, policy wobbles, and a tendency to cast himself in outsized terms.

This year alone, while painting himself an everyman and Washington outsider at heart, he's been forced to defend a six-figure shopping spree at Tiffany's and the $1.6 million he earned over the past decade as a history adviser ? not a lobbyist, he insists ? to mortgage giant Freddie Mac.

He irked conservatives by harshly criticizing Rep. Paul Ryan's plan to overhaul Medicare as "right-wing social engineering," then apologized but has since sent mixed signals on where he stands on the matter.

His senior campaign staff quit on him, en masse.

The drama has Democrats licking their chops at the prospect of Gingrich as the GOP nominee.

"I did not think I had lived a good enough life to be rewarded by Newt Gingrich being the Republican nominee," retiring liberal Rep. Barney Frank, D-Mass., said this week. "It still is unlikely, but I have hopes."

The misfortunes of other Republican candidates ? Rep. Michele Bachmann, Texas Gov. Rick Perry, businessman Herman Cain ? left an opening for Gingrich's resurgence. Longtime politicos aren't making the argument that Gingrich's leadership is a neat or pretty thing to behold. But they're not counting him out of the wide-open nominating contest, either.

"I think he's got a pretty good argument to make about his time as speaker, in terms of results," said Sen. Lindsey Graham, R-S.C., who served with Gingrich in the House and has not endorsed a presidential candidate. "The real purpose of a president, I think, is to find common ground with Congress to solve our problems. Newt has been in that mix."

Rep. Tom Price, another Georgia Republican who has endorsed Gingrich, suggested the former speaker has acquired the self-awareness to compete in the presidential arena.

"Newt has always been an idea machine, and I think he clearly appreciates the gravity of the situation before us," Price said. "There isn't any sense that this (nomination) is a fait accompli. There's an appreciation that there's a long road to go yet."

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/89ae8247abe8493fae24405546e9a1aa/Article_2011-12-02-Gingrich-Chaos%20Factor/id-9590d2c083a14d81895e90689dcee99b

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