Obama Hails 'Cliff' Deal, Warns of Next Fiscal Fight

Minutes after the House of Representatives approved a bipartisan Senate deal to avert the "fiscal cliff" and preserve Bush-era tax cuts for all Americans making less than $400,000 per year, President Obama praised party leaders and wasted little time turning to the next fiscal fight.

"This is one step in the broader effort to strengthen our economy for everybody," Obama said.

Obama lamented that earlier attempts at a much larger fiscal deal that would have cut spending and dealt with entitlement reforms failed. He said he hoped future debates would be done with "a little less drama, a little less brinksmanship, and not scare folks quite as much."

But Obama drew a line in the sand on the debt ceiling, which is set to be reached by March.

"While I will negotiate over many things, I will not have another debate with this Congress over whether they should pay the bills for what they've racked up," Obama said. "We can't not pay bills that we've already incurred."

An hour after his remarks, Obama boarded Air Force One to rejoin his family in Hawaii, where they have been since before Christmas.

AP Photo/Charles Dharapak

House Republicans agreed to the up-or-down vote Tuesday evening, despite earlier talk of trying to amend the Senate bill with more spending cuts before taking a vote. The bill delays for two months tough decisions about automatic spending cuts that were set to kick in Wednesday.

A majority of the Republicans in the GOP-majority House voted against the fiscal cliff deal. About twice as many Democrats voted in favor of the deal compared to Republicans. One hundred fifty-one Republicans joined 16 Democrats to vote against the deal, while 172 Democrats carried the vote along with 85 Republicans.

The Senate passed the same bill by an 89-8 vote in the wee hours of New Year's Day. If House Republicans had tweaked the legislation, there would have been no clear path for its return to the Senate before a new Congress is sworn in Thursday.

The vote split Republican leaders in the House. House Speaker John Boehner, R-Ohio, voted yes, and so did the GOP's 2012 vice presidential candidate, Rep. Paul Ryan, R-Wis.

But House Majority Leader Eric Cantor, R-Va., the No. 2 Republican in the House, voted no. It was his opposition that had made passage of the bill seem unlikely earlier in the day.

The deal does little to address the nation's long-term debt woes and does not entirely solve the problem of the "fiscal cliff."

Indeed, the last-minute compromise -- far short from a so-called grand bargain on deficit reduction -- sets up a new showdown on the same spending cuts in two months amplified by a brewing fight on how to raise the debt ceiling beyond $16.4 trillion. That new fiscal battle has the potential to eclipse the "fiscal cliff" in short order.

"Now the focus turns to spending," said Boehner in a statement after the vote. "The American people re-elected a Republican majority in the House, and we will use it in 2013 to hold the president accountable for the 'balanced' approach he promised, meaning significant spending cuts and reforms to the entitlement programs that are driving our country deeper and deeper into debt."

Republicans hope that allowing the fiscal cliff compromise, which raised taxes without an equal amount of spending cuts, will settle the issue of tax rates for the coming debates on spending.

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Syrian government forces go on attack on first day of year

BEIRUT (Reuters) - Government war planes bombed opposition-held areas of Syria and President Bashar al-Assad's forces and rebels fought on the outskirts of the capital Damascus on New Year's Day on Tuesday.

A year ago, many diplomats and analysts predicted Assad would leave power in 2012. But despite international pressure and rebel gains, he has proved resilient.

His inner circle remains largely intact and retains control of the armed forces, even if it relies on air strikes and artillery power to hold back the rebels fighting to overthrow him.

The air force pounded Damascus's eastern suburbs on Tuesday and rebel-held areas of Aleppo, the second city and commercial capital, as well as several rural towns and villages, opposition activists said.

Opposition video posted on the Internet showed plumes of grey smoke rising in Irbin, in the east of Damascus.

Residents of the capital began the new year to the boom of artillery hitting southern and eastern outskirts, which form a rebel-held arc around the capital. The heart of the city is still firmly under government control.

In the city center, soldiers manning checkpoints fired celebratory gunfire at midnight although the streets were largely deserted.

"How can they celebrate? There is no 'Happy New Year'," Moaz al-Shami, an opposition activist who lives in central Mezzeh district, said over Skype.

He said rebel fighters attacked one checkpoint in Berzeh district on Tuesday morning. Opposition groups said mortar bombs hit the southwest suburb of Daraya, which the army attacked on Monday to retake it from rebels.

An estimated 45,000 people have been killed in the conflict, which started in early 2011 with peaceful protests demanding democratic reforms but turned into an armed uprising after months of attacks on protesters by security forces.

A resident of the central city of Homs said artillery shelling had smacked into its Old City on Tuesday.

Homs lies on the north-south highway and parts of the ancient city have been leveled during months of clashes. Government forces ousted rebels from Homs early last year but militants have slowly crept back in.

"The Old City is under siege. There is shelling from all sides," said the resident, who asked to remain anonymous.

A video posted on YouTube showed the bodies of three boys who activists said were arrested at a government checkpoint on their way home from school in Damascus' Jobar suburb on Sunday.

One of the boys, who appear to have barely reached adolescence, has his hands tied behind his back. Another had a large open wound on his throat.

Reuters could not independently verify the reports and the footage.

The opposition-linked Syrian Observatory for Human Rights, a British-based monitoring group, reported 160 people killed on the final day of 2012, including at least 37 government troops.

BOMBARDMENT

The civil war in Syria is the longest and deadliest of the conflicts that rose out of the uprisings that have swept through the Arab world over the past two years.

Many Sunni Muslims, the majority in Syria, back the rebellion, while Assad, a member of the Shi'ite-derived Alawite minority sect, is backed by some minorities who fear revenge if he falls. His family has ruled Syria since his father seized power in a coup 42 years ago.

Assad's forces now rely more on air strikes and artillery bombardment rather than infantry. Residential areas where rebels are based have been targeted, killing many civilians.

Rebels have taken swathes of the northern mountains and eastern desert but have struggled to hold cities, saying they are defenseless against Assad's Soviet-equipped air force.

Diplomatic efforts to end the war have failed, with the rebels refusing to negotiate unless Assad leaves power and the president pledging to fight until death. Western and Arab states have called for him to go. He is backed by Russia and Iran.

In the last days of 2012, international mediator Lakhdar Brahimi called on countries to push the sides to talk, saying Syria faced a choice of "hell or the political process".

One Damascus resident, who asked not to be identified for security reasons, said the usual New Year's Eve crowds were absent from the increasingly isolated capital.

"There was hardly anyone on the streets, no cars, no pedestrians. Most restaurants, cafes and bars were empty," she said.

Some young people gathered at three bars in the old city.

"There was music but nobody was dancing. They just sat there with a drink in their hands and smoking. I don't think I saw one person smile," she said.

The midnight gunfire caused alarm.

"It was very scary. No one knew what was going on. People got very nervous and started making phone calls. But then I discovered that at least on my street, the gunfire was celebratory."

(Editing by Peter Graff and Angus MacSwan)

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Football: Brazil starlet Lucas relishing PSG challenge

DOHA: Brazilian international midfielder Lucas Moura said Tuesday he is ready to embrace the "challenge" at an evolving Paris Saint-Germain.

Lucas, 20, signed from Sao Paulo in the summer on a four-and-a-half-year deal worth 40 million euros as PSG held off competition from the likes of Manchester United and Real Madrid to snare a player hailed as one of the bright hopes of the Brazilian team.

"It's a real challenge for me," said Lucas, who has scored three goals in 22 appearances for Brazil.

"PSG is in full evolution. (Sporting director) Leonardo helped me a lot to take the decision to sign when I could have continued with my former team in Brazil until season's end.

"It's a very important step in my career. There are stronger competitions in Europe. PSG has a long history with Brazilian players and I hope I'll be able to write a new page in this history."

PSG president Nasser al-Khelaifi added: "We're very happy to start the year with one of the world's best players."

Lucas, who has joined his new teammates at a training camp in Qatar, could make his debut in a friendly against Qatari champions Lekhwiya on Wednesday, four days before PSG's French Cup round-of-64 match against Arras in Calais.

Khelaifi said the club was not planning to recruit any more players in the January transfer window, adding however that "anything could happen".

"We've got a great team with some great players, I don't think we need to recruit," he said.

"We've got a month ahead of us. For the moment, we're not planning on recruiting anyone but I don't know, there could be injuries, anything can happen."

Khelaifi added: "PSG today wants to build a big European club and place itself among the best in Europe and the world.

"We have to spend money for that and act like the other big clubs. If we hadn't have spent this much, we wouldn't be at this level."

- AFP/fa

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Maharashtra CM plays down Pawar's threat

MUMBAI: Taking a dig at NCP chief Sharad Pawar for his remark that NCP might reconsider continuing its alliance with the UPA in 2014 elections to Lok Sabha and state assembly, Maharashtra chief minister Prithviraj Chavan said on Tuesday it was fine if the party has decided to sit in opposition.

"Let the results come...if they (NCP) want to sit in the opposition, then what is the issue," Chavan told reporters here when asked to comment on the NCP chief's statement.

Ruling out the possibility of mid-term polls at Centre, Chavan said the NCP and Congress had been contesting local-level elections against each other.

"I don't think there is any possibility of mid-term polls. We contest elections against each other at the local level," he said.

On state government's drought mitigation programme, the chief minister said that "so far, Rs 900 crore have been spent for this purpose, while Rs 1,000-1,100 crore would be additionally required to tackle the drought-like situation".

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Clinton receiving blood thinners to dissolve clot

WASHINGTON (AP) — Doctors treating Secretary of State Hillary Rodham Clinton for a blood clot in her head said blood thinners are being used to dissolve the clot and they are confident she will make a full recovery.

Clinton didn't suffer a stroke or neurological damage from the clot that formed after she suffered a concussion during a fainting spell at her home in early December, doctors said in a statement Monday.

Clinton, 65, was admitted to New York-Presbyterian Hospital on Sunday when the clot turned up on a follow-up exam on the concussion, Clinton spokesman Phillipe Reines said.

The clot is located in the vein in the space between the brain and the skull behind the right ear. She will be released once the medication dose for the blood thinners has been established, the doctors said.

In their statement, Dr. Lisa Bardack of the Mount Kisco Medical Group and Dr. Gigi El-Bayoumi of George Washington University said Clinton was making excellent progress and was in good spirits.

Clinton's complication "certainly isn't the most common thing to happen after a concussion" and is one of the few types of blood clots in the skull or head that are treated with blood thinners, said Dr. Larry Goldstein, a neurologist who is director of Duke University's stroke center. He is not involved in Clinton's care.

The area where Clinton's clot developed is "a drainage channel, the equivalent of a big vein inside the skull. It's how the blood gets back to the heart," Goldstein said.

Blood thinners usually are enough to treat the clot and it should have no long-term consequences if her doctors are saying she has suffered no neurological damage from it, Goldstein said.

Clinton returned to the U.S. from a trip to Europe, then fell ill with a stomach virus in early December that left her severely dehydrated and forced her to cancel a trip to North Africa and the Middle East. Until then, she had canceled only two scheduled overseas trips, one to Europe after breaking her elbow in June 2009 and one to Asia after the February 2010 earthquake in Haiti.

Her condition worsened when she fainted, fell and suffered a concussion while at home alone in mid-December as she recovered from the virus. It was announced Dec. 13.

This isn't the first time Clinton has suffered a blood clot. In 1998, midway through her husband's second term as president, Clinton was in New York fundraising for the midterm elections when a swollen right foot led her doctor to diagnose a clot in her knee requiring immediate treatment.

Clinton had planned to step down as secretary of state at the beginning of President Barack Obama's second term. Whether she will return to work before she resigns remained a question.

Democrats are privately if not publicly speculating: How might her illness affect a decision about running for president in 2016?

After decades in politics, Clinton says she plans to spend the next year resting. She has long insisted she had no intention of mounting a second campaign for the White House four years from now. But the door is not entirely closed, and she would almost certainly emerge as the Democrat to beat if she decided to give in to calls by Democratic fans and run again.

Her age — and thereby health — would probably be a factor under consideration, given that Clinton would be 69 when sworn in, if she were elected in 2016. That might become even more of an issue in the early jockeying for 2016 if what started as a bad stomach bug becomes a prolonged, public bout with more serious infirmity.

Not that Democrats are willing to talk openly about the political implications of a long illness, choosing to keep any discussions about her condition behind closed doors. Publicly, Democrats reject the notion that a blood clot could hinder her political prospects.

"Some of those concerns could be borderline sexist," said Basil Smikle, a Democratic strategist who worked for Clinton when she was a senator. "Dick Cheney had significant heart problems when he was vice president, and people joked about it. He took the time he needed to get better, and it wasn't a problem."

It isn't uncommon for presidential candidates' health — and age — to be an issue. Both in 2000 and 2008, Sen. John McCain, R-Ariz., had to rebut concerns he was too old to be commander in chief or that his skin cancer could resurface.

Two decades after Clinton became the first lady, signs of her popularity — and her political strength — are ubiquitous.

Obama had barely declared victory in November when Democrats started zealously plugging Clinton as their strongest White House contender four years from now, should she choose to take that leap.

"Wouldn't that be exciting?" House Democratic leader Nancy Pelosi declared in December. "I hope she goes. Why wouldn't she?"

Even Republicans concede that were she to run, Clinton would be a force to be reckoned with.

"Trying to win that will be truly the Super Bowl," Newt Gingrich, the former House Speaker and 2012 GOP presidential candidate, said in December. "The Republican Party today is incapable of competing at that level."

Americans admire Clinton more than any other woman in the world, according to a Gallup poll released Monday — the 17th time in 20 years that Clinton has claimed that title. And a recent ABC News/Washington Post poll found that 57 percent of Americans would support Clinton as a candidate for president in 2016, with just 37 percent opposed. Websites have already cropped up hawking "Clinton 2016" mugs and tote bags.

Beyond talk of future politics, Clinton's three-week absence from the State Department has raised eyebrows among some conservative commentators who questioned the seriousness of her ailment after she canceled planned Dec. 20 testimony before Congress on the deadly attack on the U.S. diplomatic mission in Benghazi, Libya.

Clinton had been due to discuss with lawmakers a scathing report she had commissioned on the attack. It found serious failures of leadership and management in two State Department bureaus were to blame for insufficient security at the facility. Clinton took responsibility for the incident before the report was released, but she was not blamed. Four officials cited in the report have either resigned or been reassigned.

___

Associated Press writer Ken Thomas in Washington and AP Chief Medical Writer Marilynn Marchione in Milwaukee contributed to this report.

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Senate Approves 'Fiscal Cliff' Deal, Sends to House

Two hours after a midnight deadline for action, the Senate passed legislation early New Year's Day to avert the so-called fiscal cliff with an overwhelming vote of 89-8.

Senate passage set the stage for a final showdown in the House, where a vote could come as early as today.

"While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country and the House should pass it without delay," President Obama said in a statement shortly after the vote.

"There's more work to do to reduce our deficits, and I'm willing to do it. But tonight's agreement ensures that, going forward, we will continue to reduce the deficit through a combination of new spending cuts and new revenues from the wealthiest Americans."

The bill extends Bush-era tax cuts permanently for individuals making less than $400,000 per year and couples making less than $450,000 but allows the top marginal tax rate on incomes above those levels to rise to 39.6 percent.

Capital gains taxes would rise to 20 percent from 15 percent.

The measure would raise the estate tax from 35 to 40 percent for estates larger than $5 million, prevent the alternative minimum tax from hammering millions of middle-class workers and extend unemployment benefits for one year.

'Fiscal Cliff': Lawmakers Scramble for Last-Minute Deal Watch Video

Lawmakers also decided at the last minute to use the measure to prevent a $900 pay raise for each member of Congress due to take effect this spring.

The steep "sequester" budget cuts scheduled to go into effect with the New Year -- a $1.2 trillion hit to defense and domestic programs -- would be postponed for two months.

"I've said all along our most important priority is protecting middle-class Americans, this legislation does that," Senate Majority Leader Harry Reid, D-Nev., said early this morning prior to the vote.

The deal at hand does little to address the nation's long-term debt woes, however, and does not entirely solve the problem of the "fiscal cliff."

Indeed, the last-minute compromise -- far short from a so-called grand bargain on deficit reduction -- could set up a new showdown on the same spending cuts in two months amplified by a brewing fight on how to raise the debt ceiling beyond $16.4 trillion. That new fiscal battle has the potential to eclipse the "fiscal cliff" in short order.

Reid said he is "disappointed" they were unable to achieve a broader deal but that the compromise was necessary.

"We tried," he said. "If we did nothing, the threat of a recession is very real."

Speaking after Reid, Senate Minority Leader Mitch McConnell, R-Ky., called the deal an "imperfect solution" and noted this should not be the model on how things get done in the Senate.

McConnell also thanked Vice President Joe Biden, who visited Capitol Hill late Monday night and brokered the deal with Senate Republicans.

The measure must now move to the Republican-led House.

Five Senate Republicans and three Democrats voted against the plan, but the large margin of passage was seen as boosting the bill's prospects in the House, even though fiscal conservatives were poised to vehemently oppose the deal when it comes to the floor for a vote.

House Speaker John Boehner of Ohio said the House would not vote on any Senate-passed measure "until House members, and the American people, have been able to review" it.

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Senate report faults State Department, intelligence on Benghazi

WASHINGTON (Reuters) - The State Department's decision to keep the U.S. mission in Benghazi open despite inadequate security and increasingly dangerous threat assessments before it was attacked in September was a "grievous mistake," a Senate report said on Monday.

The Senate Homeland Security Committee's report about the September 11 attacks on the U.S. mission and a nearby annex, which killed four Americans, including the U.S. ambassador to Libya, faulted intelligence agencies for not having enough focus on Libyan extremists. It also faulted the State Department for waiting for specific warnings instead of acting on security.

The assessment follows a scathing report by an independent State Department accountability review board that resulted in a top security official and three others at the department stepping down.

The attack, in which U.S. Ambassador Christopher Stevens died, has put diplomatic security practices at posts in insecure areas under scrutiny and raised questions about whether intelligence on terrorism in the region was adequate.

The Senate report said the lack of specific intelligence of an imminent threat in Benghazi "may reflect a failure" in the intelligence community's focus on terrorist groups that have weak or no operational ties to al Qaeda and its affiliates.

"With Osama bin Laden dead and core al Qaeda weakened, a new collection of violent Islamist extremist organizations and cells have emerged in the last two to three years," the report said. That trend has been seen in the "Arab Spring" countries undergoing political transition or military conflict, it said.

The report recommended that U.S. intelligence agencies "broaden and deepen their focus in Libya and beyond, on nascent violent Islamist extremist groups in the region that lack strong operational ties to core al Qaeda or its main affiliate groups."

Neither the Senate report nor the unclassified accountability review board report pinned blame for the Benghazi attack on a specific group. The FBI is investigating who was behind the assaults.

President Barack Obama, in an interview on NBC's "Meet the Press" on Sunday, said the United States had some "very good leads" about who carried out the attacks. He did not provide any details.

The Senate committee report said the State Department should not have waited for specific warnings before acting on improving security in Benghazi.

It also said that it was widely known that the post-revolution Libyan government was "incapable of performing its duty to protect U.S. diplomatic facilities and personnel," but the State Department failed to take adequate steps to fill the security gap.

"Despite the inability of the Libyan government to fulfill its duties to secure the facility, the increasingly dangerous threat assessments, and a particularly vulnerable facility, the Department of State officials did not conclude the facility in Benghazi should be closed or temporarily shut down," the report said. "That was a grievous mistake."

(Editing by Warren Strobel and David Brunnstrom)

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HTC hopes to get ahead of competition in 2013

TAIPEI: Taiwan's economy has been one of the worst performing economies in Asia this year.

A decline in exports has slowed its full year economic growth to one per cent.

2012 was a tough year for Taiwan's technology industry, especially for smartphone maker HTC, which lost much of its global market to rivals Apple and Samsung.

Its falling sales had not only hurt HTC's bottom-line, but also dragged Taiwan's exports into negative growth.

HTC is stepping up efforts to woo consumers. It hopes to turn its fortune around with new gadgets.

"Our storage capacity for HTC One X has increased to 64GB from the previous 32GB. Plus, its battery life is longer by up to 37 per cent," said Eric Chen, HTC Taiwan's marketing director on its HTC One X handset.

As Asia's second largest handset maker, HTC saw its sales falling some 40 per cent this year.

Competition from Apple and Samsung halved its global market share to 4 per cent.

This took a toll on Taiwan's export growth, of which a quarter came from HTC.

Sam Shen, Market Intelligence and Consulting Institute director said: "HTC's shipments last year exceeded 53 million units. This year could shrink to some 40 million units. So the decline stood out in the overall export figures."

The island's exports in 2012 are likely to contract by more than 2 per cent, to their lowest level in three years.

But Taiwan's market intelligence agency believes the worst is over for HTC.

Mr Shen said: "With the continuing advancement of smartphones and their key components, there's going to be greater demand from the emerging economies. Overall, the market will remain competitive, but demand will be high."

Global shipments for smartphones are expected to grow by more than 20 per cent in 2013.

HTC is fighting back by expanding its presence in China, the fastest growing market in the world. Still, it could be a rough road ahead for the company.

"On the high-end smartphones, HTC is competing against Samsung and Apple. And on the low-end handsets, HTC is up against China's Huawei Technologies and ZTE. So it's going to be tough," said Masson Li, Taishin Securities Investment Advisory's co-vice president.

Mr Li added: "Actually the lines between smartphones and tablets are blurring. So more tablet makers may want to get a piece of the smartphone market."

While it may take a while for HTC to get back on its feet, Taiwan can still count on tablets for support.

Currently, more than 80 per cent of tablets in the world are made by Taiwanese firms.

According to IDC, global shipments for tablets are estimated to soar 40 per cent in the coming year.

If the global market regains momentum as expected, Taiwan's economic growth could exceed 3 per cent in 2013.

- CNA/xq

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UP government to give Rs 20 lakh compensation for Delhi-gang-rape victim's family

LUCKNOW: Uttar Pradesh (UP) government on Monday announced Rs 20 lakh compensation for the family of the Delhi gang-rape victim who succumbed to injuries two days ago. The compensation will be given from the chief minister's discretionary fund.

Earlier, on December 21, chief minister Akhilesh Yadav had announced to give Rs five lakh financial assistance to the family of the victim in addition to the the offer to all medical expenses and a job after recovery.

The family hails from a village in Ballia district of the state and had moved to Delhi 20 years ago but is still connected to its native place.

The victim's father is a daily-wage loader at the IGI airport in Delhi. He had taken a loan for the education of his daughter who wanted to be a physiotherapist. His two sons are still studying.

The chief minister announced the Rs 20 lakh compensation overlooking the criticism of Bahujan Samaj Party (BSP) chief Mayawati and Shahi Imam of Delhi's Jama Masjid Imam Bukhari. Mayawati had said that compensation is fine but the state government should focus on preventing rapes and provide speedy justice. She had also alleged that crime against women has increased manifold in first nine months of Samajwadi Party (SP) rule in the state. Bukhari had said that SP government should have also announced compensation for the Muslim rape victims.

Earlier today, the Delhi government announced financial aid of Rs 15 lakh for the next of the kin of the 23-year-old gang-rape victim and offered a job to a family member of the girl, who died two days ago.

The decisions were taken at a cabinet meeting presided over by chief minister Sheila Dikshit.

The phsyiotherapy student was brutally gang-raped and assaulted in a moving bus in south Delhi on December 16. She breathed her last in a Singapore hospital on Saturday morning and her mortal remains were cremated here on Sunday.

(Inputs from PTI)

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FDA approves 1st new tuberculosis drug in 40 years

WASHINGTON (AP) — The Food and Drug Administration says it has approved a Johnson & Johnson tuberculosis drug that is the first new medicine to fight the deadly infection in more than four decades.

The agency approved J&J's pill, Sirturo, for use with other older drugs to fight hard-to-treat tuberculosis.

Sirturo is the first medicine specifically designed for treating multi-drug-resistant tuberculosis. That's an increasingly common form of the disease that cannot be treated with at least two of the four primary antibiotics used to treat tuberculosis.

The standard drugs used to fight the disease were developed in the 1950s and 1960s.

Roughly one-third of the world's population is estimated to be infected with the bacteria causing tuberculosis.

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